Document:

ex10-8.htm

EXHIBIT 10.8

 

 

ALISOS INVESTMENT COMPANY

2175 Alisos Drive

Santa Barbara, CA 93108

Phone (805)969-2635 and Fax (805)565-0685

pthompson2175@cox.net

OFFICE LEASE

This Lease made and executed in duplicate, this 11th day of September, 2013, Between Alisos Investment Company, party of the first part, hereinafter designated the Lessor, and Solar3D, Inc., hereinafter designated the Lessee,

Witnesseth: That for and in consideration of the covenants hereinafter mentioned, including the rules and regulations of the building which are hereinafter set forth and hereby made a part of this lease, and because of the personal confidence reposed by the Lessor in the Lessee, the Lessor hereby leases to the Lessee the premises known as 26 W. Mission Street #8 on the second floor of the building complex, to be used by said Lessee as and for a solar business, and for no other purpose, for the term of one year commencing on the 24th day of September, 2013, and ending on the 23rd day of September, 2014.  This lease is subject to all present or future mortgages or deeds of trust affecting the said building or the land covered thereby.  In consideration whereof, the Lessee covenants and agrees that the Lessee will, and that the Lessee’s officers, agents and employees shall keep, perform and comply with each and all the rules and regulations of the building as hereinafter set forth, and with each and all of the terms and conditions of the lease as follows, to-wit:

	
1.  

	
The Lessee agrees to pay as rent for said leased premises, the total sum of Twenty Thousand Four Hundred Dollars ($20,400.00), in monthly installments of One Thousand Seven Hundred Dollars ($1,700.00), each installment payable in advance on the 1st day of each and every calendar month during the term hereof in United States lawful money at the office of the building or such other place as the Lessor may designate.  If rent is not received by the 5th of the month, then a late charge of $25.00 plus $2.00 for every day late will be assessed.  A security deposit of $2,000.00 is due and payable upon the acceptance of this lease.

	
2.  

	
The Lessee agrees not to mortgage, assign, or sub-let this lease or the leased premises or any part thereof without the written consent of the Lessor, and the Lessee further agrees to pay $100.00 per month additional rent for each sub-tenant so permitted.  Any transfer or assignment of this lease by operation of law without the written consent of the Lessor shall make this lease voidable at the option of the Lessor.

	
3.  

	
If the Lessor approves a new sub-lessee for the entire unit, then there will be a $500.00 service fee deducted from the security deposit.

 

  

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4.  

	
If the Lessee intends to surrender the premises, at least sixty days before the termination of the Lessee’s tenancy the Lessee shall give to the Lessor a written notice of the date on which the lessee intends to surrender the premises; if such notice is not given, the Lessee shall be liable for the rent of two additional months (60 days).  If the Lessee holds possession of the premises after the term of this lease such Lessee shall become a tenant from month to month at the rent and upon terms herein specified, and shall continue to be such tenant until the tenancy shall be terminated by the Lessor, or, until the Lessee shall have given to the Lessor a written notice of at least one month of intention to terminate the tenancy; but nothing in this paragraph shall be construed as a consent by the Lessor to the occupancy or possession of said premises by the Lessee after the term hereof.

	
5.  

	
Should default be made in the payment of any of the rents or other moneys provided to be paid hereunder, as and when the same become due, or should the Lessee or any of the Lessee’s officers, agents or employees violate any of the terms or conditions of this lease or any of the rules or regulations of the building as hereinafter set forth, or should the Lessee move out, vacate or abandon said leased premises or any part thereof, the Lessor may at the Lessor’s option, after giving proper notice, re-enter and take possession of said premises, remove the Lessee’s signs and property therefrom, place the Lessee’s said property in storage in a public warehouse at the expense and risk of the Lessee, make any repairs, changes, alterations or additions in or to said premises which may be necessary or convenient, re-let said premises, or any part thereof, on such terms, conditions and rentals as the Lessor may deem proper, and the Lessor may, at the Lessor’s option, either terminate and cancel this lease or the Lessor may apply the proceeds that may be collected from said re-letting, less the expense of so doing, upon the rent to be paid by the Lessee, and hold the Lessee for any balance that may be due under said lease and may forfeit their entire security deposit.   Lessee shall have 10 days to cure any default after lessor gives notice of default.

	
6.  

	
The Lessee states that he has examined said premises and covenants that said premises are in a tenantable and good condition, and that no representations as to the condition thereof or as to the terms of this lease were made by the Lessor or the Lessor’s agents prior to or at the execution of this lease, other than stated herein; that said premises shall not be altered, repaired or changed without the written consent of the Lessor and that unless otherwise provided by this agreement, all alterations, improvements or changes shall be done either by or under the direction of the Lessor, but at the cost of the Lessee, and that all alterations, additions or improvements made in or to the said premises shall be the property of the Lessor and shall remain and be surrendered with the said premises upon the termination of this lease; that all damage or injury done to the premises by the Lessee, or by any person who may be in or upon the premises by the consent of the Lessee, shall be paid for by the Lessee upon demand, and be deducted from the security deposit.

  

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7.  

	
Premises shall be surrendered in as good of condition as they are now in.  Refund of the full security deposit by Lessor to Lessee depends upon the Lessee’s full performance of the following terms.  Lessee agrees in order to avoid deductions from the security deposit they must comply with the following:

	
a.  

	
To pay in full all rent, late charges and any other charges according to the terms of the lease agreement.

	
b.  

	
The premises shall not be damaged nor evidence any use by Lessee beyond ordinary wear and tear.

	
c.  

	
The entire premises including windows, screens, bathroom, closet, walls and carpets shall be cleaned professionally by a licensed, insured company, to Lessor’s satisfaction.

	
d.  

	
To remove all rubbish and discards from the premises and to dispose of the same in proper disposal containers.

	
e.  

	
To return all keys to the premises to the Lessor on vacating the premises.

	
  

	
All costs of labor and materials for needed cleaning, repairs and replacement beyond ordinary wear and tear based on premises condition following inspection will be deducted from the security deposit.

	
8.  

	
If the building or the above described premises shall be destroyed, or be damaged by fire, earthquake or from any cause whatsoever so that said premises become untenantable and are not made tenantable within sixty days from the date of injury, then this lease may be terminated by either party; but in case the premises are so damaged as not to require a termination of the lease as above provided the Lessee shall not pay the rent herein specified during the time that the premises are unfit for occupancy.

	
9.  

	
No trade, occupation, game or business shall be conducted upon said premises that shall be unlawful.  Unless authorized, the premises shall not be used for cooking, lodging, sleeping, and no objectionable noise or odor shall be permitted to escape from said premises.

	
10.  

	
The Lessor agrees to supply, during the usual business hours, water, gas, and trash service for the premises hereby leased; but the Lessor shall be the sole judge of the character and amount of said water, gas, and trash service and the Lessor shall not be liable for any stoppage or interruption of any said services of water, gas, electric or trash caused by riot, strike, labor disputes, accident or necessary repairs.  Lessee is responsible for monthly electric service for their unit.

	
11.  

	
If, in the judgment of the Lessor, the Lessee wastes or uses any excessive amount of gas, water, or trash pick-up, the Lessor reserves the privilege either to charge the Lessee for such waste or excessive amount of gas, water or trash pick-up.  The Lessee agrees not to use or connect with the electric wires any more lights than are provided for in each room, or any electric lamp of higher wattage than provided, or any fan, motor apparatus without the written consent of the Lessor.  The Lessee agrees not to connect with the water pipes any apparatus using water without the written consent of the Lessor.

 

  

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12.  

	
The Lessor shall not be liable and the Lessee hereby waives all claims for damage that may be caused by the Lessor in re-entering and taking possession of the premises as herein provided, and all claims for damages that may result from the destruction of or injury to the premises or building.  The Lessor shall not, in any event, be liable for any loss, theft, damage or injury to the property or person of the Lessee, or any occupant of said premises, except as provided by law.

	
13.  

	
The Lessee agrees to pay for all damage to the building as well as all damage to the tenants or occupants thereof caused by the Lessee=s misuse or neglect of said premises, its apparatus or appurtenances.

	
14.  

	
The Lessor reserves and shall at any and all times have the right to enter said leased premises upon proper notice or alter or repair the said building of which the said leased premises are a part, or add thereto, without abatement for rent, and may for that purpose erect scaffolding and all other necessary structures.

	
15.  

	
In case the Lessor prevails in any suit under this lease, there shall be allowed to the Lessor, to be included in any judgment recovered, reasonable attorney=s fees to be fixed by the court.

	
16.  

	
The words “Lessor” and “Lessee” as used herein, include, apply to, and bind and benefit, the heirs, executors, administrators and successors to the Lessor and Lessee.  No waiver of the right to forfeiture of this lease or of re-entry upon breach of any of the conditions thereof, shall be deemed a waiver of such right upon any subsequent breach of such or any other condition.

	
17.  

	
A waiver of any right or the default or breach of any term, covenant or condition hereof shall not be deemed a waiver of such right or of the obligation of the Lessee to perform and fully comply with any such term, covenant or condition at any subsequent time or of any other condition.

	
18.  

	
Any carpet installed by Lessee must be approved by Lessor.  No carpet may be glued to the flooring.

	
19.  

	
Lessee is responsible for minor plumbing repairs, Lessor major repairs.   Leaking faucets, running toilets or stoppage made by tenant are to be repaired immediately by tenant.

	
20.  

	
No pets allowed.

	
21.  

	
Lessor reserves the right to request any structural changes made by Lessee to be changed back to the original design at Lessee=s expense upon termination of lease and in a timely manner.

  

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In Witness Whereof, the said parties have hereunto set their hands and seals in duplicate, the day and year first hereinbefore written.

 

 

	
_________________________________________

	
 
Jim Nelson, CEO

	
Date

	
 
Solar3D, Inc.

 

	
_________________________________________

	
Patricia Thompson Perry, President

	
Date

	
Alisos Investment Company

 

  

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RULES AND REGULATIONS OF THE BUILDING REFERRED TO HEREIN WHICH CONSTITUTE A PART OF THIS LEASE

	
I.  

	
General

	
1.  

	
This agreement is an addendum and part of the lease agreement between Lessor and Lessee.

	
2.  

	
New rules and regulations or amendments to these rules may be adopted by Lessor upon giving 30 days notice in writing.  These rules and any changes or amendments have a legitimate purpose and are not intended to be arbitrary or work as a substantial modification of Lessee rights.  They will not be unequally enforced.  Lessee is responsible for the conduct of guests and the adherence to these rules and regulations at all times.

	
II.  

	
Noise and Conduct

	
1.  

	
Lessee shall not make or allow any disturbing noises in the unit by Lessee, employees, clients or guests, nor permit anything by such persons which will interfere with the rights, comforts or conveniences of other persons and business within building.

	
2.  

	
All musical instruments, television sets, stereos, radios, etc., are to be played at a volume which will not disturb other persons.

	
3.  

	
The activities and conduct of Lessee, employees, clients and guests, outside of the unit on the common grounds, parking areas, and courtyard must be reasonable at all times and not annoy or disturb other persons.

	
4.  

	
No Lessee shall keep, maintain or allow to remain on the premises for a period in excess of seven (7) days, any non-working, inoperable or non-functioning vehicle of any kind.  The parties agree that the presence of any such vehicle on the premises for period in excess of seven (7) days shall constitute a nuisance within the provisions of California Civil Code, Section 3479 and may, at the owner’s option, be the basis for terminating the Lease herein.

	
III.  

	
Cleanliness and Trash

	
1.  

	
The unit must be kept clean, sanitary and free from objectionable odors.

	
2.  

	
Lessee shall assist Lessor in keeping the outside and common areas clean.

	
3.  

	
No littering of papers, cigarette butts or trash is allowed.

	
4.  

	
No trash or other materials may be accumulated which will cause a hazard or be in violation of any health, fire or safety ordinance or regulation.

	
5.  

	
Garbage is to be placed inside the containers provided and lids should not be slammed.  Garbage should not be allowed to accumulate and should be placed in the outside containers on a daily basis.  Items too large to fit in the trash containers should be placed neatly near the container.

	
6.  

	
Furniture must be kept inside the unit.  Unsightly items must be kept out of vision.

	
7.  

	
Articles are not to be left in common areas or carport.

	
8.  

	
Curtains, rugs, etc., shall not be shaken or hung outside of any window, ledge or balcony.

	
9.  

	
No storage of any kind under stairways.

 

  

  

  

 

	
IV.  

	
Safety

	
1.  

	
All doors must be locked during the absence of the Lessee.

	
2.  

	
All appliances must be turned off before leaving the unit.

	
3.  

	
When leaving for an extended period, Lessee shall notify Lessor how long Lessee will be away.

	
4.  

	
If someone is to enter Lessee’s unit during Lessee’s absence, Lessee shall give Lessor permission beforehand to let any person in the unit and/or provide the name of person or company entering.

	
5.  

	
The use or storage of gasoline, cleaning solvent or other combustibles in the unit is prohibited.

	
6.  

	
No personal belongings, including bicycles or other items may be placed in the stairways or about the building.

	
7.  

	
The Lessee shall not do anything in the premises, or bring or keep anything therein, which will in any way increase or tend to increase the risk of fire or the rate of fire insurance, or which shall conflict with the regulations of the Fire Department or the fire laws, or with any insurance policy on the building or any part thereof, or with any rules or ordinances established by the Board of Health.

	
V.  

	
Maintenance, Repairs and Alterations

	
1.  

	
If the unit is supplied with smoke detection device(s) upon occupancy it shall be the responsibility of the Lessee to regularly test the detector(s) to ensure that the device(s) is (are) in operable condition.  The Lessee will inform Lessor immediately, in writing, of any defect, malfunction or failure of such smoke detector(s).  Lessee is responsible to replace smoke detector batteries, if any, as needed unless otherwise provided by law.

	
2.  

	
Lessee shall advise Lessor, in writing, of any major items requiring repair (i.e. roof, electrical or plumbing).  Minor plumbing (dripping faucets and running toilets) is Lessee’s responsibility.  Notification of major repair should be immediate in an emergency or for normal problems within business hours.  Repair requests should be made as soon as the defect is noted.

	
3.  

	
Costs of repair or clearance of stoppages in waste pipes or drains, water pipes or plumbing fixtures caused by Lessee negligence or improper usage are the responsibility of the Lessee.  Payment for corrective action must be paid by Lessee on demand.

	
4.  

	
No alterations or improvements shall be made by Lessee without the consent of Lessor.  Any article attached to the woodwork, walls, floors or ceilings shall be the sole responsibility of the Lessee.  Lessee shall be liable for any repairs necessary during or after occupancy to restore premises to the original condition.  Glue or tape shall not be used to affix pictures or decorations.

	
5.  

	
Any addition to electric wiring must be approved by Lessor and done by a licensed contractor.

  

  

  

 

	
VI.  

	
Other

	
1.  

	
All keys shall be obtained from the Lessor and all keys shall be returned to the Lessor upon the termination of this lease.  The Lessee shall not change the locks or install other locks on the doors.

	
2.  

	
The doors, windows, glass doors, lights and skylights that reflect or admit light into the building, shall not be covered or obstructed. Any change in window coverings or shades shall be approved by Lessor.

	
3.  

	
No awning, shade, sign, advertisement, or notice shall be inscribed, painted or affixed on or to any part of the outside or inside of the building except by the written consent of the Lessor, and except it be of such color, size and style and in such place upon or in the building, as may be designated by the Lessor.

	
4.  

	
Lessor is held harmless and is not liable for any injuries sustained by Lessee, Lessee=s patients, employees or clients inside the Lessee=s office premises.

	
5.  

	
In case of vandalism, Lessee is responsible for replacing any locks or broken windows or any other damage to Lessee’s office premises.

	
6.  

	
The Lessee must observe strict care not to leave windows open when it rains.

	
7.  

	
No washing of cars on the premises.

	
8.  

	
No barbeque allowed on premises.

	
9.  

	
All plants provided by Lessee on outdoor decks must have saucers underneath the potted plants to protect the deck from water damage.

	
  

	
Acknowledged and Agreed to for Solar3D, Inc.

	
  

	
Dated September 11, 2013

	
  

	
_________________________________

	
  

	
Jim Nelson, CEO

	
  

	
Solar3D, Inc.ex10-16.htm

EXHIBIT 10.16

 

SOLAR3D, INC.

RESTRICTED STOCK GRANT AGREEMENT

This Restricted Stock Grant Agreement (the “Agreement”) is made and entered into as of February 1, 2015 (the “Effective Date”), by and between Solar3D, Inc., a Delaware corporation (the “Company”), and the person named below (the “Grantee”).

 

Grantee:                                                                Tracy M. Welch

 

Social Security Number:

 

Address:

 

Total Number of Shares to Be Granted:          115,385

 

Vesting Percentage:                                           0.8%

 

1.             Grant of Restricted Shares.  In consideration for the performance of services by the Grantee for Solar United Network, Inc., a wholly owned subsidiary of the Company, whether as a director, officer, employee or consultant, the Company hereby grants the Restricted Shares to the Grantee, subject to the conditions of this Agreement. As used in this Agreement, the term “Shares” shall mean shares of the Company’s common stock, par value $0.001 per share, which includes the Restricted Shares granted under this Agreement, and all securities received (i) in replacement of the Shares, (ii) as a result of stock dividends or stock splits with respect to the Shares, (iii) in replacement of the Shares in a merger, recapitalization, reorganization or similar corporate transaction; and (iv) pursuant to an adjustment to the number of Shares issuable on any vesting date by virtue of Section 2.6 of this Agreement.

2.             Vesting. The Restricted Shares shall vest and be issued to the Grantee under this Agreement upon the satisfaction of the conditions set forth in Sections 2.1, 2.2, 2.3 and 2.4 of this Agreement, including attaining the Company Performance Goals, and satisfaction of the other conditions precedent to the issuance of the eligible Restricted Shares.

2.1           Schedule of Company Performance Goals.  Grantee shall be eligible for the issuance of Restricted Shares for each Company Performance Goal attained as follows:

	
Restricted Shares

	
Company Performance Goals

	
38,462

	
The Company’s aggregate net income from operations, for the trailing 4 quarters, as reported in the Company’s quarterly or annual financial statements, equals or exceeds $2,000,000. For further clarification, net income shall the defined as the Gross Profit minus Total Operating Expenses, as reported on the company’s financial statements.

 

	
38,462

	
The Company’s aggregate net income from operations, for the trailing 4 quarters, as reported in the Company’s quarterly or annual financial statements, equals or exceeds $3,000,000. For further clarification, net income shall the defined as the Gross Profit minus Total Operating Expenses, as reported on the company’s financial statements.

 

  

1

  

 

	
38,461

	
The Company’s aggregate net income from operations, for the trailing 4 quarters, as reported in the Company’s quarterly or annual financial statements, equals or exceeds $4,000,000. For further clarification, net income shall the defined as the Gross Profit minus Total Operating Expenses, as reported on the company’s financial statements.

 

 

2.2           Vesting and Issuance of Eligible Restricted Shares. After a particular Company Performance Goal has been met, the Restricted Shares associated with that particular Company Performance Goal shall be eligible for vesting (the “Eligible Restricted Shares”).  The Eligible Restricted Shares shall vest on a monthly basis, based on the following formula:

Vesting Percentage   x   Prior Monthly Trade Value

Monthly Vested Shares = ---------------------------------------------------------------------

  Fair Market Value of the Company’s Shares

For the purposes of this Agreement, the Monthly Trade Value of the Company’s Shares shall mean the aggregate sum of the Daily Trade Value in a calendar month.  The Daily Trade Value is defined as the closing trade price of the Company’s Shares multiplied by the daily trade volume.  For example, if the closing trade price was $1.00 and the daily trade volume on that day was 500,000 shares, then the Daily Trade Value for that day would be $500,000.  If the Company’s common stock is no longer publicly traded, then the Board of Directors in good faith shall determine the Monthly Vested Shares.

If the Prior Monthly Trade Value is less than $50,000, then zero Eligible Restricted Shares shall vest for that month.

The Monthly Vested Shares, if any, shall be computed on the first day of every month for the prior month (the “Monthly Vesting Date”).

2.3           Forfeiture. Grantee shall forfeit all vesting rights for any Eligible Restricted Shares that have not vested within five (5) years of the date that the Eligible Restricted Shares were eligible for vesting.

2.4           Termination. If the Grantee's services with the Company, whether as a director, officer, employee or consultant, terminate for any reason before the date that the Company Performance Goals have been met, then the Restricted Shares associated with the unmet Company Performance Goals as of the date of such termination shall immediately be forfeited as of the date of such termination.  The Eligible Restricted Shares associated with any Company Performance Goals met prior to the date of such termination shall continue to vest and be issued to the Grantee in accordance with Sections 2.2 and 2.3 of this Agreement.

 

2.5           Title to Shares. The exact spelling of the name(s) under which Grantee shall take title to the Shares is:

 

  

2

  

 

 

Grantee desires to take title to the Shares as follows:

 

[  ]      Individual, as separate property

 

[  ]      Husband and wife, as community property

 

[  ]      Joint Tenants

 

To assign the Shares to a trust, a stock transfer agreement in a form and substance acceptable to the Company must be completed and executed and such transfer must comply with applicable federal and state securities laws.

 

2.6           Adjustment to Number of Shares.  The Company agrees that if the Fair Market Value of the Company’s common stock on the Monthly Vesting Date is less than the Fair Market Value of the Company’s common stock on the Effective Date, then the number of Shares issuable (assuming all conditions are satisfied) shall be increased so that the aggregate Fair Market Value of Shares issuable equals the aggregate Fair Market Value that such number of Shares would have had on the Effective Date; provided, that this adjustment will not be made to the extent that in prior months, the Fair Market Value of the Company’s common stock on prior Monthly Vesting Dates exceeded the Fair Market Value of the Company’s common stock on the Effective Date.

 

2.7           Fair Market Value of Shares. For the purposes of this Agreement, “Fair Market Value” shall equal the average of the trailing ten (10) closing trade prices of the Company’s common stock as quoted on the public securities trading market on which the Company’s common stock is then traded; provided, that if the Company’s common stock is not then publicly trading or quoted, “Fair Market Value” shall be determined by the Company’s Board of Directors in good faith.

3.             Representations and Warranties of Grantee.  Grantee represents and warrants to the Company that:

 

3.1           Agrees to Terms of this Agreement.  Grantee has received a copy of this Agreement, has read and understands the terms of this Agreement, and agrees to be bound by its terms and conditions.

 

3.2           Acceptance of Shares for Own Account for Investment.  Grantee is acquiring the Shares for Grantee's own account for investment purposes only and not with a view to, or for sale in connection with, a distribution of the Shares within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).  Grantee has no present intention of selling or otherwise disposing of all or any portion of the Shares.

 

  

3

  

 

3.3           Access to Information.  Grantee has had access to all information regarding the Company and its present and prospective business, assets, liabilities and financial condition that Grantee reasonably considers important in making the decision to acquire the Shares, and Grantee has had ample opportunity to ask questions of the Company's representatives concerning such matters and this investment.

 

3.4           Understanding of Risks.  Grantee is fully aware of:  (i) the highly speculative nature of the investment in the Shares; (ii) the financial hazards involved; (iii) the lack of liquidity of the Shares and the restrictions on transferability of the Shares (e.g., that Grantee may not be able to sell or dispose of the Shares or use them as collateral for loans); (iv) the qualifications and backgrounds of the management of the Company; and (v) the tax consequences of investment in the Shares.  Grantee is capable of evaluating the merits and risks of this investment, has the ability to protect Grantee's own interests in this transaction and is financially capable of bearing a total loss of this investment.

 

3.5           No General Solicitation.  At no time was Grantee presented with or solicited by any publicly issued or circulated newspaper, mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and issue of the Shares.

 

4.             Compliance with Securities Laws.  Grantee understands and acknowledges that the Shares have not been registered with the Securities and Exchange Commission (the “SEC”) under the Securities Act and that, notwithstanding any other provision of this Agreement to the contrary, the issuance of any Shares is expressly conditioned upon compliance with the Securities Act and all applicable state securities laws.  Grantee agrees to cooperate with the Company to ensure compliance with such laws.

 

5.             Restricted Securities.

 

5.1           No Transfers Unless Registered or Exempt.  Grantee understands that Grantee may not transfer any Shares unless such Shares are registered under the Securities Act and qualified under applicable state securities laws or unless, in the opinion of counsel to the Company, exemptions from such registration and qualification requirements are available.  Grantee understands that only the Company may file a registration statement with the SEC and that the Company is under no obligation to do so with respect to the Shares.  Grantee has also been advised that exemptions from registration and qualification may not be available or may not permit Grantee to transfer all or any of the Shares in the amounts or at the times proposed by Grantee.

 

5.2           SEC Rule 144.  In addition, Grantee has been advised that SEC Rule 144 promulgated under the Securities Act, which permits certain limited sales of unregistered securities, is not presently available with respect to the Shares and, in any event, requires that the Shares be held for a minimum of six months, and in certain cases one (1) year, after they have been acquired, before they may be resold under Rule 144.  Grantee understands that Rule 144 may indefinitely restrict transfer of the Shares so long as Grantee remains an "affiliate" of the Company or if "current public information" about the Company (as defined in Rule 144) is not publicly available.

 

  

4

  

 

6.             S-8 Registration.

 

Upon meeting each of the Performance Goals set forth in Section 2.1 above, the Company shall file Form S-8 with the U.S. Securities and Exchange Commission to register the Eligible Restricted Shares.

 

7.             Market Standoff Agreement.  Grantee agrees in connection with any registration of the Company's securities that, upon the request of the Company or the underwriters managing any public offering of the Company's securities, Grantee shall not sell or otherwise dispose of any Shares without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days) after the effective date of such registration requested by such underwriters and subject to all restrictions as the Company or the underwriters may specify.  Grantee further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing.

8.             Company Take-Along Right.

8.1           Approved Sale.  If the Board of Directors of the Company (the “Board”) shall deliver a notice to Grantee (a “Sale Event Notice”) stating that the Board has approved a sale of all or a portion of the Company (an “Approved Sale”) and specifying the name and address of the proposed parties to such transaction and the consideration payable in connection therewith, Grantee shall (i) consent to and raise no objections against the Approved Sale or the process pursuant to which the Approved Sale was arranged, (ii) waive any dissenter’s rights and other similar rights, and (iii) if the Approved Sale is structured as a sale of securities, agree to sell Grantee’s Shares on the terms and conditions of the Approved Sale which terms and conditions shall treat all stockholders of the Company equally (on a pro rata basis), except that shares having a liquidation preference may, if so provided in the documents governing such shares, receive an amount of consideration equal to such liquidation preference in addition to the consideration being paid to the holders of Shares not having a liquidation preference.

Grantee shall take all necessary and desirable lawful actions as directed by the Board and the stockholders of the Company approving the Approved Sale in connection with the consummation of any Approved Sale, including without limitation, the execution of such agreements and such instruments and other actions reasonably necessary to (A) provide the representations, warranties, indemnities, covenants, conditions, non-compete agreements, escrow agreements and other provisions and agreements relating to such Approved Sale and, (B) effectuate the allocation and distribution of the aggregate consideration upon the Approved Sale, provided, that this Section 8 shall not require Grantee to indemnify the purchaser in any Approved Sale for breaches of the representations, warranties or covenants of the Company or any other stockholder, except to the extent (x) Grantee is not required to incur more than its pro rata share of such indemnity obligation (based on the total consideration to be received by all stockholders that are similarly situated and hold the same class or series of capital stock) and (y) such indemnity obligation is provided for and limited to a post-closing escrow or holdback arrangement of cash or stock paid in connection with the Approved Sale.

 

  

5

  

8.2           Costs.  Grantee shall bear Grantee’s pro rata share (based upon the amount of consideration to be received) of the reasonable costs of any sale of Shares pursuant to an Approved Sale to the extent such costs are incurred for the benefit of all selling stockholders of the Company and are not otherwise paid by the Company or the acquiring party.  Costs incurred by Grantee on Grantee’s own behalf shall not be considered costs of the transaction hereunder.

8.3           Share Delivery.  At the consummation of the Approved Sale, Grantee shall, if applicable, deliver certificates representing the Shares to be transferred, duly endorsed for transfer and accompanied by all requisite stock transfer taxes, if any, and the Shares to be transferred shall be free and clear of any liens, claims or encumbrances (other than restrictions imposed by this Exercise Notice) and Grantee shall so represent and warrant.

8.4           Termination of Company Take-Along Right.  The Take-Along Right shall terminate as to the Shares upon the Public Trading Date of the Shares.  For the purposes of this Agreement, the “Public Trading Date” of the Shares is the date on which the Shares first become freely tradable under the Securities Act, either pursuant to Rule 144 or another provision of the Securities Act.  The holder of the Shares may apply to have all restrictive transfer legends removed from the certificates evidencing the Shares, provided that the request for legend removal is made at such times and in such manner that removal is accomplished in compliance with the Securities Act and the rules and regulations promulgated under the Securities Act; and provided further, that any proposed sale of Shares must comply with all Company policies and procedures, and with applicable federal, state and local laws.

 

9.             Rights as a Stockholder.  Subject to the terms and conditions of this Agreement, Grantee shall have all of the rights of a stockholder of the Company with respect to the Shares after the Restricted Shares vest and are issuable until such time as Grantee disposes of the Shares.

 

10.           Restrictive Legends and Stop-Transfer Orders.

 

10.1           Legends.  Grantee understands and agrees that the Company shall place the legends set forth below or similar legends on any stock certificate(s) evidencing the Shares, together with any other legends that may be required by state or federal securities laws, the Company's Certificate of Incorporation or Bylaws, any other agreement between Grantee and the Company or any agreement between Grantee and any third party:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

  

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THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.  AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF A PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF.  SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.

 

10.2           Stop-Transfer Instructions.  Grantee agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate "stop-transfer" instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

10.3           Refusal to Transfer.  The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares, or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares have been so transferred.

11.           Tax Consequences.  GRANTEE UNDERSTANDS THAT GRANTEE MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF GRANTEE'S ACQUISITION OR DISPOSITION OF THE SHARES.  GRANTEE REPRESENTS (i) THAT GRANTEE HAS CONSULTED WITH A TAX ADVISER THAT GRANTEE DEEMS ADVISABLE IN CONNECTION WITH THE ACQUISITION OR DISPOSITION OF THE SHARES AND (ii) THAT GRANTEE IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE.

12.           Compliance with Laws and Regulations.  The issuance and transfer of the Shares shall be subject to and conditioned upon compliance by the Company and Grantee with all applicable state and federal laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company's common stock may be listed or quoted at the time of such issuance or transfer.

13.           Successors and Assigns.  The Company may assign any of its rights under this Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Grantee and Grantee's heirs, executors, administrators, legal representatives, successors and assigns.

14.           Governing Law; Severability.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware as such laws are applied to agreements between Delaware residents entered into and to be performed entirely within Delaware, excluding that body of laws pertaining to conflict of laws.  If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision shall be enforced to the maximum extent possible and the other provisions shall remain fully effective and enforceable.

 

  

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15.           Notices.  Any notice required to be given or delivered to the Company shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices.  Any notice required to be given or delivered to Grantee shall be in writing and addressed to Grantee at the address indicated above or to such other address as Grantee may designate in writing from time to time to the Company.  All notices shall be deemed effectively given upon personal delivery, (i) three (3) days after deposit in the United States mail by certified or registered mail (return receipt requested), (ii) one (1) business day after its deposit with any return receipt express courier (prepaid), or (iii) one (1) business day after transmission by facsimile or email.

16.           Further Instruments.  The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement.

17.           Headings; Counterparts.  The captions and headings of this Agreement are included for ease of reference only and shall be disregarded in interpreting or construing this Agreement.  All references herein to Sections shall refer to Sections of this Agreement.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same agreement.

18.           Entire Agreement.  This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and supersedes all prior understandings and agreements, whether oral or written, between the parties hereto with respect to the specific subject matter of this Agreement.

WHEREOF, the Company has caused this Agreement to be executed by its duly authorized representative and Grantee has executed this Agreement as of the Effective Date.

 

 

	Solar3D, Inc.	Grantee
	 	 
	By:                                                                          	                                                                                    
	 	(Signature)
	 	 
	James B. Nelson, CEO 	Tracy M. Welch

 

  

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Spouse Consent

 

The undersigned spouse of                                        (the “Grantee”) has read, understands, and hereby approves the Restricted Stock Grant Agreement between Solar3D, Inc., a Delaware corporation (the “Company”) and Grantee (the “Agreement”). In consideration of the Company's granting my spouse the right to purchase the Shares as set forth in the Agreement, the undersigned hereby agrees to be irrevocably bound by the Agreement and further agrees that any community property interest shall similarly be bound by the Agreement. The undersigned hereby appoints Grantee as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement.

 

 

	Date:                                                                    	                                                                                           
	 	Print Name of Grantee's Spouse
	 	 
	                                                                                	                                                                                           
	(Please print name)   	Signature of Grantee's Spouse
	 	 
	                                                                                	Address:                                                                          
	(Please print title) 	                                                                                           
	 	                                                                                           
	 	 
	 	 
	 	 
	 	 
	 	o    Check this box if you do not have a spouse.

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