Document:

Unassociated Document

     

    EXHIBIT
      4.1

     

    MICRO
      IMAGING
      TECHNOLOGY, INC. 2008 EMPLOYEE INCENTIVE STOCK PLAN 

    
 

    SECTION
      1.

    INTRODUCTION

    
 

    1.1

    Establishment.
      Effective as provided in Section 17,
      Micro Imaging Technology, Inc., a California corporation (the "Company"), hereby
      adopts this plan of stock-based compensation for selected Eligible Participants
      of the Company and affiliated corporation. This plan shall be known as the
      Micro
      Imaging Technology, Inc. 2008 Employee Incentive Stock Plan (the "Plan").

    
 

    1.2

    Purpose.
      The purpose of this Plan is to promote the
      best interest of the Company, and its stockholders by providing a means of
      non-cash remuneration to selected Eligible Participants. 

    
 

    SECTION
      2.

    DEFINITIONS

    
 

    The
      following definitions shall be applicable to the terms used in this Plan:

    
 

    2.1

    "Affiliated
      Corporation" means any corporation that
      is either a parent corporation with respect to the Company or a subsidiary
      corporation with respect to the Company (within the meaning of Sections 424(e)
      and (f), respectively, of the Internal Revenue Code). 

    
 

    2.2

    "Code"
      means the Internal Revenue Code of 1986, as it
      may be amended from time to time. 

    
 

    2.3

    "Committee"
      means a committee designated by the Board
      of Directors to administer this Plan or, if no committee is so designated,
      the
      Board of Directors. Any Committee member who is also an Eligible Participant
      may
      receive an Option or Stock Award only if he abstains from voting in favor of
      a
      grant to himself, and the grant is determined and approved by the remaining
      Committee members. The Board of Directors, in its sole discretion, may at any
      time remove any member of the Committee and appoint another Director to fill
      any
      vacancy on the Committee. 

    
 

    2.4

    "Common
      Stock" means the Company's $0.01 par value
      common stock.

     

    2.5

    "Company"
      means Micro Imaging Technology, Inc., a
      California corporation. 

    
 

    2.6

    "Effective
      Date" means the effective date of this
      Plan, as set forth in Section 17 hereof. 

    
 

    2.7

    "Eligible
      Participant" means any employee, director,
      officer, consultant, or advisor of the Company who is determined (in accordance
      with the provisions of Section 4 hereof) to be eligible to receive an Option
      or
      Stock Award hereunder.

     

    2.8

    "Option"
      means the grant to an Eligible Participant
      of a right to acquire shares of Common Stock. 

    
 

    

    

 

    2.9

    "Plan"
      means this Micro Imaging Technology, Inc. 2008
      Employee Incentive Stock Plan dated May 1, 2008. 

    
 

    2.10

    "Stock
      Award" means the grant to an Eligible
      Participant of shares of Common Stock issuable directly under this Plan rather
      than upon exercise of an Option. Wherever appropriate, words used in this Plan
      in the singular may mean the plural, the plural may mean the singular, and
      the
      masculine may mean the feminine. 

     

    SECTION
      3.

    ADOPTION
      AND ADMINISTRATION OF THIS PLAN

    
 

    Upon
      adoption by the Company's Board of Directors, this Plan became effective as
      of
      May 1, 2008. In the absence of contrary action by the Board of Directors, and
      except for action taken by the Committee pursuant to Section 4 in connection
      with the determination of Eligible Participants, any action taken by the
      Committee or by the Board of Directors with respect to the implementation,
      interpretation or administration of this Plan shall be final, conclusive and
      binding. 

    
 

    SECTION
      4. ELIGIBILITY AND AWARDS 

    
 

    The
      Committee shall determine at any time and from time to time after the effective
      date of this Plan: (i) the Eligible Participants; (ii) the number of shares
      of
      Common Stock issuable directly or to be granted pursuant to an Option; (iii)
      the
      price per share at which each Option may be exercised, in cash or cancellation
      of fees for services for which the Company is liable, if applicable, or the
      value per share if a direct issue of stock pursuant to a Stock Award; and (iv)
      the terms on which each Option may be granted. Such determination, as may from
      time to time be amended or altered at the sole discretion of the Committee.
      Notwithstanding the provisions of Section 3 hereof, no such determination by
      the
      Committee shall be final, conclusive and binding upon the Company unless and
      until the Board of Directors has approved the same; provided, however, that
      if
      the Committee is composed of a majority of the persons then comprising the
      Board
      of Directors of the Company, such approval by the Board of Directors shall
      not
      be necessary.

    
 

    SECTION
      5. GRANT OF OPTION OR STOCK AWARD 

    
 

    Subject
      to the terms and provisions of this Plan, the terms and conditions under which
      an Option or Stock Award may be granted to an Eligible Participant shall be
      set
      forth in a written agreement (i.e., a Consulting Agreement, Services Agreement,
      Fee Agreement, or Employment Agreement) or, if an Option, a written Grant of
      Option. (The form shall be determined by the Committee, in its sole discretion,
      or may be determined by the Board of Directors)

    
 

    SECTION
      6. TOTAL NUMBER OF SHARES OF COMMON STOCK 

    
 

    The
      total
      number of shares of Common Stock reserved for issuance by the Company either
      directly as Stock Awards or underlying Options granted under this Plan shall
      not
      be more than 3,000,000, approved by the Board of Directors on May 1, 2008.
      The
      total number of shares of Common Stock reserved for such issuance may be
      increased only by a resolution adopted by the Board of Directors and amendment
      of this Plan. Such Common Stock may be authorized and unissued or reacquired
      Common Stock of the Company. 

     

    

     

    SECTION
      7.
      PURCHASE OF SHARES OF COMMON STOCK 

    7.1

    As
      soon as practicable after the determination by the
      Committee and approval by the Board of Directors (if necessary, pursuant to
      Section 4 hereof) of the Eligible Participants and the number of shares an
      Eligible Participant may be issued directly as a Stock Award or eligible to
      purchase pursuant to an Option, the Committee shall give written notice thereof
      to each Eligible Participant, which notice may be accompanied by the Grant
      of
      Option, if appropriate, to be executed by such Eligible Participant.

 

    7.2

    The
      negotiated cost basis of stock issued directly as
      a Stock Award or the exercise price for each Option to purchase shares of Common
      Stock pursuant to paragraph 7.1 shall be as determined by the Committee, it
      being understood that the price so determined by the Committee may vary from
      one
      Eligible Participant to another. In computing the negotiated direct issue price
      as a Stock Award or the Option exercise price per share of Common Stock, the
      Committee shall take into consideration, among other factors, the restrictions
      set forth in Section 11 hereof. 

    
 

    SECTION
      8. TERMS AND CONDITIONS OF OPTIONS 

    
 

    The
      Committee shall determine the terms and conditions of each Option granted to
      Eligible Participants, which terms shall be set forth in writing. The terms
      and
      conditions so set by the Committee may vary from one Eligible Participant to
      another. In the event that all the Committee approves an Option permitting
      deferred payments, the Eligible Participant's obligation to pay for such Common
      Stock may be evidenced by a promissory note executed by such Eligible
      Participant and containing such modifications thereto and such other provisions
      as the Committee, in its sole discretion, may determine. 

     

    

     

    
 

    SECTION
      9. DELIVERY OF SHARES OF COMMON STOCK UPON EXERCISE OF OPTION

    
 

    The
      Company shall deliver to each Eligible Participant such number of shares of
      Common Stock as such Eligible Participant is entitled to receive pursuant to
      a
      Stock Award or elects to purchase upon exercise of the Option. Such shares,
      which shall be fully paid and non-assessable upon the issuance thereof (unless
      a
      portion or all of the purchase price shall be paid on a deferred basis) shall
      be
      represented by a certificate or certificates registered in the name of the
      Eligible Participant and stamped with an appropriate legend referring to the
      restrictions thereon, if any. Subject to the terms and provisions of the laws
      of
      the State of California and the written agreement to which he is a party, an
      Eligible Participant shall have all the rights of a stockholder with respect
      to
      such shares, including the right to vote the shares and to receive all dividends
      or other distributions paid or made with respect thereto (except to the extent
      such Eligible Participant defaults under a promissory note, if any, evidencing
      the deferred purchase price for such shares), provided that such shares shall
      be
      subject to the restrictions hereinafter set forth. In the event of a merger
      or
      consolidation to which the Company is a party, or of any other acquisition
      of a
      majority of the issued and outstanding shares of Common Stock of the Company
      involving an exchange or a substitution of stock of an acquiring corporation
      for
      Common Stock of the Company, or of any transfer of all or substantially all
      of
      the assets of the Company in exchange for stock of an acquiring corporation,
      a
      determination as to whether the stock of the acquiring corporation so received
      shall be subject to the restrictions set forth in Section 11 shall be made
      solely by the acquiring corporation. 

    
 

    SECTION
      10. RIGHTS OF EMPLOYEES; ELIGIBLE PARTICIPANTS

    
 

    10.1

    Employment.
      Nothing
      contained in this Plan or in any Option or Stock Award granted under this Plan
      shall confer upon any Eligible Participant any right with respect to the
      continuation of his or her employment by the Company or any Affiliated
      Corporation, or interfere in any way with the right of the Company or any
      Affiliated Corporation, subject to the terms of any separate employment
      agreement to the contrary, at any time to terminate such employment or to
      increase or decrease the compensation of the Eligible Participant from the
      rate
      in existence at the time of the grant of an Option or Stock Award. Whether
      an
      authorized leave of absence shall constitute termination of employment shall
      be
      determined by the Committee at the time. 

    
 

    10.2

    Non-transferability.
      No
      right or interest of any Eligible Participant in an Option or Stock Award shall
      be assignable or transferable during the lifetime of the Eligible Participant,
      either voluntarily or involuntarily, or subjected to any lien, directly or
      indirectly, by operation of law, or otherwise, including execution, levy,
      garnishment, attachment, pledge or bankruptcy. However, the Board of Directors
      may, in its sole discretion, permit transfers to family members if and to the
      extent such transfers are permissible under applicable securities laws. In
      the
      event of an Eligible Participant's death, an Eligible Participant's rights
      and
      interest in an Option or Stock Award shall be 

    transferable
      by testamentary will or the laws of descent and
      distribution, and delivery of any shares of Common Stock due under this Plan
      shall be made to, and exercise of any Options may be made by, the Eligible
      Participant's legal representatives, heirs or legatees. If in the opinion of
      the
      Committee a person entitled to payments or to exercise rights with respect
      to
      this Plan is unable to care for his or her affairs because of mental condition,
      physical condition, or age, payment due such person may be made to, and such
      rights shall be exercised by, such person's guardian, conservator or other
      legal
      personal representative upon furnishing the Committee with evidence satisfactory
      to the Committee of such status. 

     

    

    
    

     

    SECTION
      11. GENERAL RESTRICTIONS

    
 

    11.1

    Representations.
      Eligible
      Participants to whom an Option or Stock Award is granted shall represent to
      the
      Company and agree, that as a condition of exercising such Option, or receiving
      such Stock Award, in substance and form satisfactory to the Company and its
      counsel that such person is acquiring the Common Stock subject to the Option
      or
      Stock Award for his or her own account for investment and not with any present
      intention of selling or otherwise distributing the same, other than pursuant
      to
      an effective registration statement under the Securities Act, and to such other
      effects as the Company deems necessary or appropriate in order to comply with
      federal and applicable state securities laws.

     

    Shares
      shall not be issued under the Plan unless the issuance and delivery of such
      shares complies with (or is exempt from) all applicable requirements of law,
      including (without limitation) the Securities Act, the rules and regulations
      promulgated thereunder, state securities laws and regulations, and the
      regulations of any stock exchange on which the Company's securities may then
      be
      listed, and the Company has obtained the approval of or a favorable ruling
      from
      any governmental agency that the Company determines to be necessary or
      advisable.

    
 

    11.2

    Restrictions
      on Transfer of Common
      Stock. The shares of Common Stock issuable directly as
      a
      Stock Award or upon exercise of an Option may not be offered for sale, sold
      or
      otherwise transferred except pursuant to an effective registration statement
      or
      pursuant to an exemption from registration, the availability of which is to
      be
      established to the satisfaction of the Company, and any certificates
      representing shares of Common Stock will bear a legend to that effect. However,
      the Company may, in the sole discretion of the Board of Directors, register
      under the Securities Act some or all of the shares of Common Stock reserved
      for
      issuance under this Plan. Special resale restrictions may, however, continue
      to
      apply to officers, directors, control shareholders and affiliates of the Company
      and such persons will be required to obtain an opinion of counsel as regards
      their ability to resell shares received pursuant to this Plan. 

    
 

    11.3

    Compliance
      with Securities Laws. Each Option or Stock Award shall be subject to
      the requirement that if
      at any time counsel to the Company shall determine that the listing,
      registration or qualification of the shares of  Common Stock subject to
      such Option or Stock Award upon any securities exchange or under any state
      or
      federal law, or the consent or approval of any governmental or regulatory body,
      is necessary as a condition of, or in connection with, the issuance or purchase
      of shares thereunder, such Option or Stock Award may not be accepted or
      exercised in whole or in part unless such listing, registration, qualification,
      consent or approval shall have been effected or obtained on conditions
      acceptable to the Committee. Nothing herein shall be deemed to require the
      Company to apply for or to obtain such listing, registration or qualification.
      

    
 

    11.4

    Changes
      in Accounting Rules. Notwithstanding any other provision of this Plan
      to the contrary, if,
      during the term of this Plan, any changes in the financial or tax accounting
      rules applicable to Options or Stock Awards shall occur that, in the sole
      judgment of the Committee, may have a material adverse effect on the reported
      earnings, assets or liabilities of the Company, the Committee shall have the
      right and power to modify as necessary, or cancel, any then outstanding and
      unexercised Options. 

     

    

    
 

    
 

    SECTION
      12. COMPLIANCE WITH TAX REQUIREMENTS 

    
 

    Each
      Eligible Participant shall be liable for payment of all applicable federal,
      state and local income taxes incurred as a result of the receipt of a Stock
      Award or an Option, the exercise of an Option, and the sale of any shares of
      Common Stock received pursuant to a Stock Award or upon exercise of an Option.
      The Company may be required, pursuant to applicable tax regulations, to withhold
      taxes for an Eligible Participant, in which case the Company's obligations
      to
      deliver shares of Common Stock upon the exercise of any Option granted under
      this Plan or pursuant to any Stock Award, shall be subject to the Eligible
      Participant's satisfaction of all applicable federal, state and local income
      and
      other income tax withholding requirements. 

    
 

    SECTION
      13. PLAN BINDING UPON ASSIGNS OR TRANSFEREES

    
 

    In
      the
      event that, at any time or from time to time, any Option or Stock Award is
      assigned or transferred to any party (other than the Company) pursuant to the
      provisions of Section 10.2 hereof, such party shall take such Option or Stock
      Award pursuant to all provisions and conditions of this Plan, and, as a
      condition precedent to the transfer of such interest, such party shall agree
      (for and on behalf of himself or itself, his or its legal representatives and
      his or its transferees and assigns) in writing to be bound by all provisions
      of
      this Plan. 

    
 

    SECTION
      14. COSTS AND EXPENSES 

    
 

    All
      costs
      and expenses with respect to the adoption, implementation, interpretation and
      administration of this Plan shall be borne by the Company. 

    
 

    SECTION
      15. CHANGES IN CAPITAL STRUCTURE OF THE COMPANY

    
 

    Appropriate
      adjustments shall be made to the number of shares of Common
      Stock issuable pursuant to an incomplete or pending Stock Award that has not
      yet
      been delivered or upon exercise of any Options and the exercise price thereof
      in
      the event of: (i) a subdivision or combination of any of the shares of capital
      stock of the Company; (ii) a dividend payable in shares of capital stock of
      the
      Company; (iii) a reclassification of any shares of capital stock of the Company;
      or (iv) any other change in the capital structure of the Company. 

     

    SECTION
      16. PLAN AMENDMENT,
      MODIFICATION AND TERMINATION 

    
 

    The
      Board, upon recommendation of the Committee or at its own initiative, at any
      time may terminate and at any time and from time to time and in any respect,
      may
      amend or modify this Plan, including: 

    
 

    (a)
      Increase the total amount of Common Stock that may be awarded under this Plan,
      except as provided in Section 15 of this Plan; 

    
 

    

    

 

    (b)
      Change the classes of persons from which Eligible
      Participants may be selected or materially modify the requirements as to
      eligibility for participation in this Plan; 

    
 

    (c)
      Increase the benefits accruing to Eligible Participants; or 

    
 

    (d)
      Extend the duration of this Plan. 

    
 

    Any
      Option or other Stock Award granted to a Eligible Participant prior to the
      date
      this Plan is amended, modified or terminated will remain in effect according
      to
      its terms unless otherwise agreed upon by the Eligible Participant; provided,
      however, that this sentence shall not impair the right of the Committee to
      take
      whatever action it deems appropriate under Section 11 or Section 15. The
      termination or any modification or amendment of this Plan shall not, without
      the
      consent of an Eligible Participant, affect his rights under an Option or other
      Stock Award previously granted to him. 

    
 

    
 

    SECTION
      17. EFFECTIVE DATE OF THIS PLAN 

    
 

    17.1

    Effective
      Date. This Plan
      is effective as of May 1, 2008, the date it was adopted by the Board of
      Directors of the Company. 

    
 

    17.2

    Duration
      of this Plan.
      This Plan shall terminate at midnight on May 1, 2013,which is the day before
      the
      fifth anniversary of the Effective Date, and may be extended thereafter or
      terminated prior thereto by action of the Board of Directors; and no Option
      or
      Stock Award shall be granted after such termination. Options and Stock Awards
      outstanding at the time of this Plan termination may continue to be exercised,
      or become free of restrictions, in accordance with their terms. 

    
 

    SECTION
      18. BURDEN AND BENEFIT 

    
 

    The
      terms
      and provisions of this Plan shall be binding upon, and shall inure to the
      benefit of, each Eligible Participant, his executives or administrators, heirs,
      and personal and legal representatives.

    
 

    Approved
      by the Board of Directors of Micro Imaging Technology, Inc. on May 1,
      2008.

    
 

    
 

    Dated:
      May 1, 2008

    
 

    /s/
      Michael
      Brennan                        

    Michael
      Brennan, ChairmanTHIS
      NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
      THE
      SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS.

     

    
      	
              No.
                1

            	
              U.S.
                2,500,000.00

            	
              Original
                Issue Date: February 11, 2008

            

    

     

    
      	
              Holder:

            	
              Solar
                Thin Power, Inc.

            
	 	 
	
              Address:

            	
              25
                Highland Blvd.

            
	 	
              Dix
                Hills, New York, 11746

            

    

     

     

    SECURED
      TERM NOTE

     

    FOR
      VALUE
      RECEIVED, SOLAR THIN FILMS, INC. a Delaware corporation, having its principal
      place of business at 25 Highland Blvd., Dix Hills, New York 11746 (the
“Company”),
      promises to pay to SOLAR THIN POWER, INC., a Nevada corporation having its
      principal place of business at 25 Highland Blvd., Dix Hills, New York 11746
      (the
“Holder”)
      or its
      registered assigns or successors in interest, the sum of Two Million Five
      Hundred Thousand Dollars ($2,500,000), together with any accrued and unpaid
      interest hereon, on February 11, 2009 (the “Maturity
      Date”)
      if not
      sooner indefeasibly paid in full.

     

    ARTICLE
      I

    CONTRACT
      RATE AND AMORTIZATION

     

    1.1 Interest
      Rate.
      Subject
      to Sections 3.2 and 4.10, interest payable on the outstanding principal amount
      of this Note (the “Principal
      Amount”)
      shall
      accrue at a rate per annum equal to the “prime rate” published in The
      Wall Street Journal
      from
      time to time (the “Interest
      Rate”).
      The
      Interest Rate shall be increased or decreased as the case may be for each
      increase or decrease in the prime rate in an amount equal to such increase
      or
      decrease in the prime rate; each change to be effective as of the day of the
      change in the prime rate. Interest shall be (a) calculated on the basis of
      a 360
      day year, and (b) payable upon maturity.

     

    1.2 Reserved.

     

    1.3 Balloon
      Payment.
      Upon
      maturity, the Company shall make a balloon payment of all outstanding principal
      together with any accrued and unpaid interest and any and all other unpaid
      amounts which are then owing by the Company to the Holder under this
      Note.

     

    ARTICLE
      II

    REDEMPTION

     

    2.1 Optional
      Redemption in Cash.
      The
      Company may prepay this Note (“Optional
      Redemption”)
      by
      paying to the Holder a sum of money equal to one hundred percent (100%) of
      the
      principal amount outstanding at such time together with accrued but unpaid
      interest thereon and any and all other sums due, accrued or payable to the
      Holder arising under this Note (the “Redemption
      Amount”)
      outstanding on the Redemption Payment Date (as defined below). The Company
      shall
      deliver to the Holder a written notice of redemption (the “Notice
      of Redemption”)
      specifying the date for such Optional Redemption (the “Redemption
      Payment Date”),
      which
      date shall be within seven (7) business days after the date of the Notice of
      Redemption (the “Redemption
      Period”).
      On
      the Redemption Payment Date, the Redemption Amount must be paid in good funds
      to
      the Holder. In the event the Company fails to pay the Redemption Amount on
      the
      Redemption Payment Date as set forth herein, then such Redemption Notice will
      be
      null and void.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III

    EVENTS
      OF DEFAULT

     

    3.1 Events
      of Default.
      The
      occurrence of any of the following events set forth in this Section 3.1 shall
      constitute an event of default (“Event
      of Default”)
      hereunder:

     

    (a) Failure
      to Pay.
      The
      Company fails to pay when due any amounts when due or other fees hereon in
      accordance herewith, when due, and, in any such case, such failure shall
      continue for a period of five (5) days following the date upon which any such
      payment was due.

     

    (b) Breach
      of Covenant.
      The
      Company or any of its subsidiaries breaches any covenant or any other term
      or
      condition of this Note in any material respect and such breach, if subject
      to
      cure, continues for a period of fifteen (15) days after the occurrence
      thereof.

     

    (c) Breach
      of Representations and Warranties.
      Any
      representation, warranty or statement made or furnished by the Company or any
      of
      its subsidiaries in this Note, shall at any time be false or misleading in
      any
      material respect on the date as of which made or deemed made.

     

    (d) Reserved;

     

    (e) Material
      Adverse Effect.
      Any
      change or the occurrence of any event which could reasonably be expected to
      have
      a Material Adverse Effect;

     

    (f) Bankruptcy.
      The
      Company or any of its subsidiaries shall (i) apply for, consent to or
      suffer to exist the appointment of, or the taking of possession by, a receiver,
      custodian, trustee or liquidator of itself or of all or a substantial part
      of
      its property, (ii) make a general assignment for the benefit of creditors,
      (iii) commence a voluntary case under the federal bankruptcy laws (as now or
      hereafter in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file
      a
      petition seeking to take advantage of any other law providing for the relief
      of
      debtors, (vi) acquiesce to, without challenge within ten (10) days of the filing
      thereof, or failure to have dismissed, within thirty (30) days, any petition
      filed against it in any involuntary case under such bankruptcy laws, or (vii)
      take any action for the purpose of effecting any of the foregoing;

     

    (g) Judgments.
      Attachments or levies in excess of $100,000 in the aggregate are made upon
      the
      Company or any of its Subsidiary’s assets or a judgment is rendered against the
      Company’s property involving a liability of more than $100,000 which shall not
      have been vacated, discharged, satisfied, stayed or bonded within thirty (30)
      days from the entry thereof;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (h) Insolvency.
      The
      Company or any of its Subsidiaries shall admit in writing its inability, or
      be
      generally unable, to pay its debts as they become due or cease operations of
      its
      present business;

     

    (i) Change
      of Control.
      A
      Change of Control (as defined below) shall occur with respect to the Company,
      unless Holder shall have expressly consented to such Change of Control in
      writing. A “Change of Control” shall mean any event or circumstance as a result
      of which (i) any “Person” or “group” (as such terms are defined in Sections
      13(d) and 14(d) of the Exchange Act, as in effect on the date hereof), other
      than the Holder, is or becomes the “beneficial owner” (as defined in Rules
      13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of 35%
      or
      more on a fully diluted basis of the then outstanding voting equity interest
      of
      the any Company, (ii) the Board of Directors of the Company shall cease to
      consist of a majority of the Company’s board of directors on the date hereof (or
      directors appointed by a majority of the board of directors in effect
      immediately prior to such appointment) or (iii) the Company or any of its
      Subsidiaries merges or consolidates with, or sells all or substantially all
      of
      its assets to, any other person or entity;

     

    (i) Indictment;
      Proceedings.
      The
      indictment or threatened indictment of the Company or any of its subsidiaries
      or
      any executive officer of the Company or any of its subsidiaries under any
      criminal statute, or commencement or threatened commencement of criminal or
      civil proceeding against the Company or any of its subsidiaries or any executive
      officer of the Company or any of its subsidiaries pursuant to which statute
      or
      proceeding penalties or remedies sought or available include forfeiture of
      any
      of the property of the Company or any of its subsidiaries;

     

    3.2 Default
      Interest.
      Following the occurrence and during the continuance of an Event of Default,
      the
      Company shall pay additional interest on the outstanding principal balance
      of
      this Note in an amount equal to two percent (2%) per month, and all outstanding
      obligations under this Note, including unpaid interest, shall continue to accrue
      interest at such additional interest rate from the date of such Event of Default
      until the date such Event of Default is cured or waived.

     

    ARTICLE
      IV

    MISCELLANEOUS

     

    4.1 Issuance
      of New Note.
      Upon
      any partial redemption of this Note, a new Note containing the same date and
      provisions of this Note shall, at the request of the Holder, be issued by the
      Company to the Holder for the principal balance of this Note and interest which
      shall not have been paid as of such date. Subject to the provisions of Article
      III of this Note, the Company shall not pay any costs, fees or any other
      consideration to the Holder for the production and issuance of a new
      Note.

     

    4.2 Cumulative
      Remedies.
      The
      remedies under this Note shall be cumulative.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    4.3 Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    4.4 Notices.
      Any
      notice herein required or permitted to be given shall be in writing and shall
      be
      deemed effectively given: (a) upon personal delivery to the party notified,
      (b)
      when sent by confirmed telex or facsimile if sent during normal business hours
      of the recipient, if not, then on the next business day, (c) five (5) days
      after
      having been sent by registered or certified mail, return receipt requested,
      postage prepaid, or (d) one (1) day after deposit with a nationally recognized
      overnight courier, specifying next day delivery, with written verification
      of
      receipt. Any notice given hereunder shall be to the following:

    

    To
      The
      Company:

    

    Solar
      Thin Films, Inc.

    25
      Highland Blvd.

    Dix
      Hills, NY 11746

    

    To
      The
      Holder:

    

    Solar
      Thin Power, Inc.

    25
      Highland Blvd.

    Dix
      Hills, NY 11746

     

    4.5 Amendment
      Provision.
      The
      term “Note” and all references thereto, as used throughout this instrument,
      shall mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented, and any successor instrument
      as such successor instrument may be amended or supplemented.

     

    4.6 Assignability.
      This
      Note shall be binding upon the Company and its successors and assigns, and
      shall
      inure to the benefit of the Holder and its successors and assigns. The Company
      may not assign any of its obligations under this Note without the prior written
      consent of the Holder, any such purported assignment without such consent being
      null and void.

     

    4.7 Cost
      of Collection.
      In case
      of any Event of Default under this Note, the Company shall pay the Holder the
      Holder’s reasonable costs of collection, including reasonable attorneys’
fees.

     

    4.8 Governing
      Law, Jurisdiction and Waiver of Jury Trial.

     

    (a) THIS
      NOTE
      SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
      LAW.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (b) THE
      COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
      IN
      THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
      TO
      HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE COMPANY, ON THE ONE HAND,
      AND THE HOLDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE OR ANY OF THE OTHER
      RELATED AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE
      OR
      ANY OF THE RELATED AGREEMENTS; PROVIDED,
      THAT
      THE COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
      HEARD
      BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK; AND
      FURTHER PROVIDED,
      THAT
      NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
      THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
      OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
      HOLDER. THE COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
      JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND THE COMPANY
      HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL
      JURISDICTION, IMPROPER VENUE OR FORUM
      NON CONVENIENS.
      THE
      COMPANY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
      PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
      SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
      MAIL
      ADDRESSED TO THE COMPANY AT THE ADDRESS SET FORTH IN THE PURCHASE AGREEMENT
      AND
      THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY’S
      ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
      POSTAGE PREPAID.

     

    (c) THE
      COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
      APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF
      THE JUDICIAL SYSTEM AND OF ARBITRATION, THE COMPANY HERETO WAIVES ALL RIGHTS
      TO
      TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
      WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE HOLDER AND/OR THE
      COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, ANY OTHER
      RELATED AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

     

    4.9 Severability.
      In the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision of this Note.

     

    4.10 Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum rate permitted by such law, any payments in excess
      of such maximum rate shall be credited against amounts owed by the Company
      to
      the Holder and thus refunded to the Company.

     

    4.11 Security
      Interest.
      The
      Holder has been granted a security interest (a) in certain proceeds of certain
      equity interests of the Company as more fully described in the Security
      Agreement 

     

    [Signatures
      appear on the following page.]

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Secured Term Note to be signed in its name effective
      as
      of this 1 day of February, 2008.

     

     

    
      	
              SOLAR
                THIN FILMS, INC.

            
	 
	
              By:
                /s/ Peter Lewis

            
	
              Name:

            
	
              Title:

            

    

     

    WITNESS:

     

    /s/
      Robert Rubin

     

    
      
        
        

      

      
        6

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