Document:

c57846_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

SECOND
    AMENDMENT, dated as of June 1, 2009 (this “Second Amendment”),
    by and between Elite Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
    on the one hand, and Epic Pharma, LLC, a Delaware limited liability company
    (the “Parent”),
    Epic Investments, LLC, a Delaware limited liability company (including its
    successors and assigns, the “Purchaser”),
    Ashok G. Nigalaye (“Nigalaye”)
    and Jeenarine Narine (together with Nigalaye, the “Principals”),
    on the other hand, relating to a certain STRATEGIC ALLIANCE AGREEMENT, dated
    as of March 18, 2009, as amended by that certain Amendment thereto dated
    as of April 30, 2009 (as amended, the “Alliance
    Agreement”; capitalized terms used herein
    and not otherwise defined have the meaning assigned to such terms in the
    Alliance Agreement). 

     WHEREAS, the parties hereto have agreed to amend and waive certain provisions of the Alliance Agreement on the terms and subject to the conditions contained herein. 

     NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained herein, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the parties hereto
agree as follows: 

      1. Amendments. The Alliance Agreement is hereby amended as follows: 

      (a) Article I is amended by: 

           (1) adding a definition for the term “Guarantors” which shall read as follows:

““Guarantors” shall have the meaning assigned to such term in Section 4.15. ” 

           (2) amending the definition of Initial Closing Date to read as follows: 

“Initial Closing Date” means June 3, 2009 or such other date as the Parties may mutually agree upon in writing. 

     (b) The definition of “Milestone Shares” which appears in Article I, and Section 2.10 (a) and Section 2.10(b) are each amended by deleting each reference to “Purchaser” which
appears therein and inserting “Parent” in its stead.

     (c) The first paragraph of Section 3.2 is amended and restated in its entirety to read as follows: 

“Except as set forth in the disclosure schedules delivered to the Company concurrently herewith (the “Epic Disclosure Schedules”), which such Epic
Disclosure Schedules shall be deemed a part hereof and to qualify any representation or warranty otherwise made herein to the extent of such disclosure, the Parent and the Purchaser, severally, and not jointly, each as to itself and not the other,
hereby make the representations and warranties 

set forth below to the Company as of the date hereof and the Initial Closing Date:” 

      (d) The heading and first sentence of Section 3.2(a) is amended and restated in its entirety to read as follows: 

“Control and Operations of the Purchaser. The Parent, directly or indirectly, controls the operations of the Purchaser, and all the issued and outstanding membership
interests of the Purchaser are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities or any such rights have been waived.”

      (e) The second sentence of Section 3.2(g) is amended and restated in its entirety to read as follows: 

“As of the Initial Closing Date, the Parent is a drug development company and the Purchaser is, directly or indirectly, controlled by Parent and that the businesses of each of the Parent and the Purchaser is synergistic with
the business of the Company.” 

      (f) Section 4.1(a) is amended and restated in its entirety to read as follows: 

“(a) The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the
Company or to an Affiliate of the Parent or the Purchaser, as the case may be, or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected
by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under
the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of the Parent or the Purchaser, as the case may be, under this Agreement.”

      (g) Section 4.1(b) is amended and restated in its entirety to read as follows: 

“(b) Each of the Parent and the Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the following form:

[NEITHER] THESE SECURITIES [NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE] HAVE [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 

- 2 -

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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON [EXERCISE] OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.” 

      (h) Section 4.1(d) is amended and restated in its entirety to read as follows: 

“(d) Each of the Parent and the Purchaser agrees that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance that the
Parent or the Purchaser, as the case may be, will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom.” 

      (i) Section 4.2 is amended and restated in its entirety to read as follows: 

  
“4.2 Furnishing of Information.
Until the earliest of the time that (i) neither the Parent nor the Purchaser
owns Securities or (ii) the Warrants have expired, the  Company covenants to
use its commercially reasonable efforts to maintain the registration of the Common
Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or
obtain extensions in respect thereof and file within the applicable  grace period)
all reports required to be filed by the Company after the date hereof pursuant
to the Exchange Act. As long as either the Parent or the Purchaser owns Securities,
if the Company is not required to file reports pursuant to the Exchange  Act,
it will prepare and furnish to the Parent and the Purchaser and make publicly
available in accordance with Rule 144(c) such information as is required for
the Parent and the Purchaser to sell the Securities under Rule 144. The Company
further  covenants that it will use its commercially reasonable efforts to take
such further action as the Parent or the Purchaser, as holders of Securities
issued pursuant to this Agreement or the other Transaction Documents, may reasonably
request, to the  extent required from time to time to enable such Person to sell
such Securities without registration under the Securities Act within the requirements
of the exemption provided by Rule 144.” 

      (j) Section 4.3 is amended and restated in its entirety to read as follows: 

- 3 -

“4.3 Integration.  The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of
the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the Parent and the Purchaser pursuant to this Agreement
or the other Transaction Documents or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market.” 

     (k) The third sentence of Section 4.5 is amended and restated in its entirety to read as follows:

“Neither the Company, on the one hand, nor the Parent or the Purchaser, on the other hand, shall issue any press release regarding the transactions contemplated hereby or the other Transaction Documents without the prior
consent of the Company or the Parent and the Purchaser, as the case may be, which consent shall not unreasonably be withheld or delayed, except (i) as required by federal securities law in connection with the filing of final Transaction Documents
(including signature pages thereto) with the Commission and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Parent and the Purchaser
with prior notice of such disclosure permitted under this subclause (ii).”

      (l) Section 4.6 is amended and restated in its entirety to read as follows: 

 “4.6 Shareholder Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that the Parent or the
Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar
anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that the Parent or the Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction
Documents.” 

      (m) Section 4.8(b) is amended and restated in its entirety to read as follows: 

“Subject to the provisions of this Section 4.8, each of the Parent and the Purchaser shall, severally and not jointly, indemnify and hold the Company and its directors, officers, shareholders, members, partners, employees and
agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles 

- 4 -

notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Company Party”) harmless from any and all losses, liabilities,
obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Company Party may suffer or incur as a
result of or relating to any breach of any of the representations, warranties, covenants or agreements made by it in this Agreement or in the other Transaction Documents. Each of the Parent and the Purchaser shall, severally and not jointly, further
indemnify and hold each Company Party harmless from any and all expenses incurred by such Company Party with respect to any proceeding instituted by such Company Party, in good faith, to enforce or interpret its rights to indemnification
hereunder.” 

      (n) Section 4.9(c) is amended by deleting clause (iii) which appears therein and inserting the following language in its stead: 

  “(iii) provide to the Parent and the Purchaser evidence of such listing,” 

     (o) The last sentence of Section 4.11(a) is amended and restated in its entirety to read as follows:

“At such time as Purchaser and Parent, in the aggregate, own more than fifty percent (50%) of the issued and outstanding Common Stock or other voting securities of the Company, the number of Purchaser Directors shall be equal
to a majority of the Board of Directors.” 

      (p) Section 4.1 is amended and restated in its entirety to read as follows: 

 “4.12 Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy
thereof, promptly upon request of the Parent or the Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Parent and
the Purchaser at the applicable Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the Parent or the Purchaser.” 

      (q) Section 4.15 is amended and restated in its entirety to read as follows: 

“Guaranty.  By their execution of the Second Amendment, Ashok Nigalaye and Jai Narine (the “Guarantors”), jointly and severally, hereby unconditionally guarantee the performance by the Purchaser of its obligations under Article II. Subject only to the satisfaction by the Company of the applicable conditions to the obligations of
the Purchaser under Article II,  upon the failure of the Purchaser to perform such obligations, the Guarantors shall forthwith upon demand of the Company perform such obligations of the Purchaser.” 

- 5 -

      (r) Section 4.16 is amended and restated in its entirety to read as follows: 

 “4.16 Purchaser Lock-Up. Each of the Parent and the Purchaser hereby agrees that it shall not, without the prior written consent of the Company, Transfer any Common
Stock acquired by it upon conversion of the Series E Preferred Stock or otherwise acquired or purchased under this Agreement or any of the other Transaction Documents for a period commencing on the Initial Closing Date and ending on the later of (a)
the date immediately following the first anniversary of the Initial Closing Date and (b) the Third Closing Date (such period, the “Lock-Up Period”),
to the extent that the conditions precedent to closing set forth in Sections 2.11(b) and 2.12 have been satisfied.”

     (s) Section 5.3(a) is amended by deleting the reference to “Purchaser” which appears therein and inserting “Parent” in its stead.

      (v) Section 5.10(b) is amended by deleting the last sentence therein and inserting the following in its stead: 

“Notwithstanding the foregoing and without limiting the generality thereof, if the Term is terminated by the Company pursuant to paragraph (a) by reason of breach by the Parent or the Purchaser which is not timely cured, then
any and all Product Fees to which the Company would otherwise be entitled shall remain obligations of the Parent and shall be paid to the Company in accordance with this Agreement.”

     (w) Section 5.10(c) is amended by deleting clause (ii) which appears therein and inserting the following in its stead:

“(ii) Parent or Purchaser, as applicable, does not consummate such Closing in accordance with Article II.” 

      (x) Section 5.10(d) is amended by deleting clause (i) which appears therein and inserting the following in its stead:

“(i) all conditions precedent for which Parent or Purchaser, as applicable, is obligated to satisfy pursuant to Article II on or prior to a Closing have been, or will be, satisfied by Parent or Purchaser, as applicable, in
accordance with the terms thereof” 

      (y) Section 6.1 is amended by deleting the date “June 1, 2009” which appears therein and inserting “June 3, 2009” in its stead. 

      (z) The first sentence of Section 6.14 is amended to read as follows:

“In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of Parent, Purchaser and the Company will be entitled to specific performance under the Transaction
Documents.” 

- 6 -

     2.  Covenants, Representations and Warranties. Each Principal, severally, and not
jointly, covenants, represents and warrants to the Company, as of the date hereof, that: 

     (a) Each Principal has all requisite power and authority to enter into this Second Amendment and perform his obligations hereunder and under the Transaction Document and to consummate the transactions
contemplated hereby and by the Transaction Documents. 

     (b) This Second Amendment has been duly executed by each Principal and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of each Principal
enforceable against each Principal in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

     (c) The execution and delivery
of this Second Amendment by each Principal does not, and the consummation of
the transactions contemplated hereby and by the Transaction Documents and compliance
with  the terms hereof and thereof, will not, conflict with, or result in any
violation of or default (with or without notice or lapse of time, or both) under,
or entitle any Person to receipt of notice or to a right of consent under, or
give rise to a  right of termination, cancellation or acceleration of any obligation
or to loss of a material benefit under, or to any increased, additional, accelerated
or guaranteed rights or entitlement of any Person under, or result in the creation
of any Lien  on the properties or assets of the Principals (including, with out
limitation, the properties or assets of the Parent or the Purchaser) under, any
provision of any contract to which the Principals are a party or by which any
of their respective  properties or assets (including, with out limitation, the
properties or assets of the Parent or the Purchaser) are bound, or (ii) any judgment,
order or decree, or statute, law, ordinance, rule or regulation applicable to
the Principals or their  respective properties or assets (including, without
limitation, the properties or assets of the Parent or the Purchaser). 

     (d) Each Principal, severally but not jointly, hereby unconditionally guarantees the performance by the Purchaser of its obligations under Article II of the Alliance Agreement (including, without
limitation, the delivery of fund required to purchase shares of Series E Preferred Stock of the Company on the Third Closing Date) and, subject only to the satisfaction by the Company of the applicable conditions to the obligations of the Purchaser
under Article II of the Alliance Agreement, upon the failure of the Purchaser to perform such obligations, the Principals shall forthwith upon demand of the Company perform such obligations of the Purchaser.” 

     3. Additional Representations. 

           (a) Ashok G. Nigalaye hereby represents and warrants to the Company that (1) the Personal Financial Statement of Ashok G. Nigalaye, dated as of April 21, 2009, a copy of which was provided to the
Company on the date hereof, is true and accurate, as of such date, in all material respects, and (2) there have been no material changes to the information contained in such statement since the date thereof.

- 7 -

           (b) Jeenarine Narine hereby represents and warrants to the Company that (1) the Personal Financial Statement of Jeenarine Narine, dated as of April 22, 2009, a copy of which was provided to the
Company on the date hereof, is true and correct, as of the date hereof, in all material respects, and (2) there have been no material changes to the information contained in such statement since the date thereof.

     4. Effect of Amendments.  Except as expressly amended herein, the terms of the Alliance Agreement are incorporated herein by reference as if
fully set out and shall remain in full force and effect in accordance with their terms. 

     5. Severability.  If any provision or portion of this Second Amendment shall be determined to be invalid or unenforceable for any reason, in
whole or in part, the remaining provisions of this Second Amendment shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. 

     6. Counterparts; Delivery by Facsimile. This Second Amendment may be executed in any number of counterparts with the same effect as if all
parties hereto had signed the same document.  All counterparts shall be construed together and shall constitute one Second Amendment.  This Second Amendment and any amendments hereto, to the extent signed and delivered by means of a facsimile
machine or email, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto
or to any such agreement or instrument shall raise the use of a facsimile machine or email to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or
email as a defense to the formation of a contract and each such party forever waives any such defense. 

     6. Governing Law; Consent to Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Second
Amendment shall be governed by and construed and enforced in accordance with the internal laws of the State of Jersey, without regard to the principles of conflicts of law thereof.  Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Second Amendment and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by
law.  THE PARTIES HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY. If either party shall commence an action or proceeding to enforce any provisions of this Second Amendment, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.  

     7. Headings. The headings contained in this Second Amendment are for reference purposes only and shall not be deemed to be part of the Second
Amendment or to affect the meaning or interpretation of this Second Amendment. 

(Remainder of Page Intentionally Left Blank; Signature Page Follows)

- 8 -

     IN WITNESS WHEREOF, this Second Amendment is executed by the parties hereto as of the day and year first above written. 

	 	
    ELITE PHARMACEUTICALS, INC.  
	 	 	   
	 	By:	/s/ Chris Dick 	 
	 	Name:	Chris Dick  
	 	Title:	Chief Operating Officer and Acting Chief  
	 	 	
Executive Officer  
	 	 	   
	 	 	   
	 	
    EPIC PHARMA, LLC  
	 	 	   
	 	By:	/s/ Ashok G. Nigalaye 	 
	 	Name:  	Ashok G. Nigalaye, Ph.D.  
	 	Title:	President and Chief Executive
    Officer  
	 	 	   
	 	
    EPIC INVESTMENTS, LLC  
	 	 	   
	 	 	   
	 	By:	/s/ Ashok G. Nigalaye  	 
	 	Name:	Ashok G. Nigalaye, Ph.D.  
	 	Title:	President and Chief Executive
    Officer  
	 	 	   
	 	
    The Principals:  
	 	 	   
	 	 	   
	 	
    /s/ Ashok G. Nigalaye  	 
	 	
    Ashok G. Nigalaye  
	 	 	   
	 	 	   
	 	
    /s/ Jeenarine Narine  	 
	 	
    Jeenarine Narineexh10-1.htm

    
      

      

    

     

     

     

     

     

     

     

     

     

     

    EXHIBIT
10.1

     

    EMPLOYEE STOCK
PURCHASE PLAN

    

    

    

    

    

    

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
 

    

    

    

    ENERGY
COMPOSITES CORPORATION

    

    EMPLOYEE
STOCK PURCHASE PLAN

    

    

    

    As
Approved and Effective June 2, 2009

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      	 
      	 
      	 
      	
              Page

            
	
              SECTION
      1.

            	
              PURPOSE
      OF THE PLAN

            	
              1

            
	 
      	 
      	 
      	 
      
	
              SECTION
      2.

            	
              ADMINISTRATION
      OF THE PLAN

            	
              1

            
	 
      	
              (a)

            	
              Authority

            	
              1

            
	 
      	
              (b)

            	
              Responsibilities

            	
              1

            
	 
      	 
      	 
      	 
      
	
              SECTION
      3.

            	
              ENROLLMENT
      AND PARTICIPATION

            	
              1

            
	 
      	
              (a)

            	
              Offering
      Periods

            	
              1

            
	 
      	
              (b)

            	
              Accumulation
      Periods

            	
              1

            
	 
      	
              (c)

            	
              Enrollment

            	
              1

            
	 
      	
              (d)

            	
              Duration
      of Participation

            	
              1

            
	 
      	
              (e)

            	
              Applicable
      Offering Period

            	
              1

            
	 
      	 
      	 
      	 
      
	
              SECTION
      4.

            	
              EMPLOYEE
      CONTRIBUTIONS

            	
              2

            
	 
      	
              (a)

            	
              Frequency
      of Payroll Deductions

            	
              2

            
	 
      	
              (b)

            	
              Amount
      of Payroll Deductions

            	
              2

            
	 
      	
              (c)

            	
              Changes
      in Payroll Deductions

            	
              2

            
	 
      	
              (d)

            	
              Tax
      Withholding

            	
              2

            
	 
      	 
      	 
      	 
      
	
              SECTION
      5.

            	
              WITHDRAWAL
      FROM THE PLAN

            	
              2

            
	 
      	
              (a)

            	
              Withdrawal

            	
              2

            
	 
      	
              (b)

            	
              Re-Enrollment
      After Withdrawal

            	
              2

            
	 
      	 
      	 
      	 
      
	
              SECTION
      6.

            	
              CHANGE
      IN EMPLOYMENT STATUS

            	
              2

            
	 
      	
              (a)

            	
              Termination
      of Employment

            	
              2

            
	 
      	
              (b)

            	
              Change
      in Employment Status

            	
              2

            
	 
      	
              (c)

            	
              Leave
      of Absence

            	
              2

            
	 
      	
              (d)

            	
              Death

            	
              2

            
	 
      	 
      	 
      	 
      
	
              SECTION
      7.

            	
              PLAN
      ACCOUNTS AND PURCHASE OF SHARES

            	
              3

            
	 
      	
              (a)

            	
              Plan
      Accounts

            	
              3

            
	 
      	
              (b)

            	
              Purchase
      Price

            	
              3

            
	 
      	
              (c)

            	
              Number
      of Shares Purchased

            	
              3

            
	 
      	
              (d)

            	
              Available
      Shares Insufficient

            	
              3

            
	 
      	
              (e)

            	
              Issuance
      of Stock

            	
              3

            
	 
      	
              (f)

            	
              Unused
      Cash Balances

            	
              3

            
	 
      	
              (g)

            	
              Stockholder
      Approval

            	
              3

            
	 
      	 
      	 
      	 
      
	
              SECTION
      8.

            	
              LIMITATIONS
      ON STOCK OWNERSHIP

            	
              3

            
	 
      	
              (a)

            	
              Five
      Percent Limit

            	
              3

            
	 
      	
              (b)

            	
              Dollar
      Limit

            	
              4

            
	 
      	 
      	 
      	 
      
	
              SECTION
      9.

            	
              RIGHTS
      NOT TRANSFERABLE

            	
              4

            
	 
      	 
      	 
      	 
      
	
              SECTION
      10.

            	
              NO
      RIGHTS AS AN EMPLOYEE

            	
              4

            
	 
      	 
      	 
      	 
      
	
              SECTION
      11.

            	
              NO
      RIGHTS AS A STOCKHOLDER

            	
              4

            
	 
      	 
      	 
      	 
      
	
              SECTION
      12.

            	
              SECURITIES
      LAW REQUIREMENTS

            	
              4

            
	 
      	 
      	 
      	 
      
	
              SECTION
      13.

            	
              STOCK
      OFFERED UNDER THE PLAN

            	
              5

            
	 
      	
              (a)

            	
              Authorized
      Shares

            	
              5

            

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

     

    
      	 
      	 
      	 
      	
              Page

            
	 
      	
              (b)

            	
              Anti-Dilution
      Adjustments

            	
              5

            
	 
      	
              (c)

            	
              Reorganizations

            	
              5

            
	 
      	 
      	 
      	 
      
	
              SECTION
      14.

            	
              AMENDMENT,
      SUSPENSION OR TERMINATION

            	
              5

            
	 
      	
              (a)

            	
              Amendment

            	
              5

            
	 
      	
              (b)

            	
              Suspension
      or Termination

            	
              5

            
	 
      	 
      	 
      	 
      
	
              SECTION
      15.

            	
              REPORTS
      AND NOTICES

            	
              5

            
	 
      	
              (a)

            	
              Statements

            	
              5

            
	 
      	
              (b)

            	
              Notices

            	
              5

            
	 
      	 
      	 
      
	
              SECTION
      16.

            	
              TERM
      OF PLAN

            	
              5

            
	 
      	 
      	 
      	 
      
	
              SECTION
      17.

            	
              DEFINITIONS

            	
              5

            
	 
      	
              (a)

            	
              Act

            	
              5

            
	 
      	
              (b)

            	
              Accumulation
      Period

            	
              5

            
	 
      	
              (c)

            	
              Board

            	
              6

            
	 
      	
              (d)

            	
              Code

            	
              6

            
	 
      	
              (e)

            	
              Committee

            	
              6

            
	 
      	
              (f)

            	
              Company

            	
              6

            
	 
      	
              (g)

            	
              Compensation

            	
              6

            
	 
      	
              (h)

            	
              Corporate
      Reorganization

            	
              6

            
	 
      	
              (i)

            	
              Designated
      Agent Holding Period

            	
              6

            
	 
      	
              (j)

            	
              Eligible
      Employee

            	
              6

            
	 
      	
              (k)

            	
              Exchange
      Act

            	
              6

            
	 
      	
              (l)

            	
              Fair
      Market Value

            	
              6

            
	 
      	
              (m)

            	
              Offering
      Period

            	
              7

            
	 
      	
              (n)

            	
              Participant

            	
              7

            
	 
      	
              (o)

            	
              Participating
      Company

            	
              7

            
	 
      	
              (p)

            	
              Plan

            	
              7

            
	 
      	
              (q)

            	
              Plan
      Account

            	
              7

            
	 
      	
              (r)

            	
              Purchase
      Price

            	
              7

            
	 
      	
              (s)

            	
              Stock

            	
              7

            
	 
      	
              (t)

            	
              Subsidiary

            	
              7

            

    

    

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    ENERGY
COMPOSITES CORPORATION

    EMPLOYEE
STOCK PURCHASE PLAN

    

    SECTION
1.  PURPOSE OF THE PLAN.

    

    The
purpose of the Plan is to secure for the Company and its stockholders the
benefits of the incentive inherent in the ownership of Stock by current and
future Eligible Employees and to provide such Eligible Employees with an
opportunity to increase their proprietary interest in the success of the Company
by purchasing Stock from the Company on favorable terms and to pay for such
purchases through payroll deductions.  The Plan is intended to qualify
as an “employee stock purchase plan” under section 423 of the Code and
shall be administered, interpreted and construed in accordance with such
provisions.

    

    SECTION
2.  ADMINISTRATION OF THE PLAN.

    

    (a)           Authority.  The Plan
shall be administered by the Committee.

    

    (b)           Responsibilities.  The
Committee shall have full authority to construe, interpret and apply the terms
of the Plan, determine eligibility, make decisions relating to the operation of
the Plan and resolve any claims arising under the Plan.  The Committee
may adopt such rules, guidelines and forms as it deems necessary or appropriate
to implement and administer the Plan.  The Committee’s determinations
under the Plan shall be final and binding on all persons.  The Company
shall pay all costs of administration of the Plan.

    

    SECTION
3.  ENROLLMENT AND PARTICIPATION.

    

    (a)           Offering
Periods.  During the term of the Plan, two Offering Periods
shall commence in each calendar year.  The Offering Periods shall
consist of the six-month periods commencing on each January 1 and July
1.  Notwithstanding the foregoing, the first Offering Period under the
Plan will commence on the day on which a registration statement under the Act
with respect to Stock to be purchased hereunder shall be effective and end on
the earlier of the next June 30 or December 31 thereafter.

    

    (b)           Accumulation
Periods.  An Accumulation Period shall run concurrent with each
Offering Period.

    

    (c)           Enrollment.  Any
individual who, on the day preceding the first day of an Offering Period,
qualifies as an Eligible Employee may elect to become a Participant in the Plan
for such Offering Period by executing the enrollment form prescribed for this
purpose by the Committee.  The enrollment form shall be filed with the
Company at the designated location, or with the designated person, before the
start date of such Offering Period.

    

    (d)           Duration of
Participation.  Once enrolled in the Plan, a Participant shall
continue to participate in the Plan until he or she ceases to be an Eligible
Employee, withdraws from the Plan under Section 5(a) or reaches the end of
the Accumulation Period in which his or her employee contributions were
discontinued under Section 8(b).  A Participant who withdrew from
the Plan under Section 5(a) may again become a Participant, if he or she
then is an Eligible Employee, by following the procedure described in Subsection
(c) above.  A Participant whose employee contributions were
discontinued automatically under Section 8(b) shall automatically resume
participation at the beginning of the earliest Accumulation Period ending in the
next calendar year, if he or she then is an Eligible Employee.

    

    (e)           Applicable Offering
Period.  For purposes of calculating the Purchase Price under
Section 7(b), the applicable Offering Period shall be determined as
follows:

    

    (i)           Once
a Participant is enrolled in the Plan for an Offering Period, such Offering
Period shall continue to apply to him or her until the earliest of (A) the
end of such Offering Period, (B) the end of his or her participation under
Subsection (d) above or (C) re-enrollment for a subsequent Offering
Period under Paragraph (ii) below.

    

    (ii)           When
a Participant reaches the end of an Offering Period but his or her participation
is to continue, then such Participant shall automatically be re-enrolled for the
Offering Period that commences immediately

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    after the
end of the prior Offering Period.

    

    SECTION
4.  EMPLOYEE CONTRIBUTIONS.

    

    (a)           Frequency of Payroll
Deductions.  A Participant may purchase shares of Stock under
the Plan solely by means of payroll deductions.  Payroll deductions,
as designated by the Participant pursuant to Subsection (b) below, shall
occur on each payday during participation in the Plan.

    

    (b)           Amount of Payroll
Deductions.  An Eligible Employee shall designate on the
enrollment form the portion of his or her Compensation that he or she elects to
have withheld for the purchase of Stock, but not less than $10 for each pay
period.  The Committee may determine, in its sole discretion, to
establish a maximum dollar amount or percentage of Compensation Participants may
authorize for payroll deductions during any Accumulation Period or calendar
year.  Any such limit established by the Committee shall apply to all
Participants and meet the requirements of Section 423 of the Code.

    

    (c)           Changes in Payroll
Deductions.  If a Participant wishes to change the rate of
payroll deductions, he or she may do so by filing a new enrollment form with the
Company at the designated location, or with the designated person, at any
time.  The new payroll deduction rate shall be effective for the next
Offering Period.

    

    (d)           Tax
Withholding.  Payroll deductions under the Plan are subject to
income and employment tax withholding.  By executing an enrollment
form, each Participant agrees that such income and employment tax withholding
may be deducted from other Compensation of the Participant.

    

    SECTION
5.  WITHDRAWAL FROM THE PLAN.

    

    (a)           Withdrawal.  A
Participant may elect to withdraw from the Plan by filing the prescribed form
with the Company at the designated location, or with the designated person, at
any time before the last day of an Accumulation Period.  As soon as
reasonably practicable thereafter, payroll deductions shall cease and the entire
amount credited to the Participant’s Plan Account shall be refunded to him or
her in cash, without interest.  No partial withdrawals shall be
permitted.

    

    (b)           Re-Enrollment After
Withdrawal.  A former Participant who has withdrawn from the
Plan shall not be a Participant until he or she re-enrolls in the Plan under
Section 3(c).  Re-enrollment may be effective only at the
commencement of an Offering Period.

    

    SECTION
6.  CHANGE IN EMPLOYMENT STATUS.

    

    (a)           Termination of
Employment.  Termination of employment as an Eligible Employee
for any reason, including death, shall be treated as an automatic withdrawal
from the Plan under Section 5(a).  A transfer from one
Participating Company to another shall not be treated as a termination of
employment.

    

    (b)           Change in Employment
Status.  If a Participant’s customary employment drops
below five months per calendar year or less than 20 hours per week, such change
in employment status shall be treated as an automatic withdrawal from the Plan
under Section 5(a).

    

    (c)           Leave of
Absence.  For purposes of the Plan, employment shall not be
deemed to terminate when the Participant goes on a military leave, a sick leave
or another bona
fide leave of absence, if the leave was approved by the Participating
Company in writing.  Employment, however, shall be deemed to terminate
90 days after the Participant goes on a leave, unless a contract or statute
guarantees his or her right to return to work.  Employment shall be
deemed to terminate in any event when the approved leave ends, unless the
Participant immediately returns to work.

    

    (d)           Death.  In the event
of the Participant’s death, the amount credited to his or her Plan Account shall
be paid to a beneficiary designated by him or her for this purpose on the
prescribed form or, if none, to the Participant’s estate.  Such form
shall be valid only if it was filed with the Company at the designated location,
or with the designated person, before the Participant’s death.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    SECTION
7.  PLAN ACCOUNTS AND PURCHASE OF SHARES.

    

    (a)           Plan Accounts.  The
Company shall maintain a Plan Account on its books in the name of each
Participant.  Whenever an amount is deducted from the Participant’s
Compensation under the Plan, such amount shall be credited to the Participant’s
Plan Account.  Amounts credited to Plan Accounts shall not be trust
funds and may be commingled with the Participating Company’s general assets and
used for or applied to any corporate purpose.  No interest shall
accrue on the amounts deducted from a Participant’s Compensation or credited to
Plan Accounts.

    

    (b)           Purchase Price.  The
Purchase Price for each share of Stock purchased at the close of an Accumulation
Period shall be the lower of:

    

    (i)           85%
of the Fair Market Value of such share on the first trading day in such
Accumulation Period; or

    

    (ii)           85%
of the Fair Market Value of such share on the last trading day in such
Accumulation Period.

    

    (c)           Number of Shares
Purchased.  As of the last day of each Accumulation Period,
each Participant shall be deemed to have elected to purchase the number of
shares of Stock calculated in accordance with this Subsection (c), unless
the Participant has previously elected to withdraw from the Plan in accordance
with Section 5(a).  The amount then in the Participant’s Plan
Account shall be divided by the Purchase Price, and the number of shares that
results shall be purchased from the Company with the funds in the Participant’s
Plan Account.  The foregoing notwithstanding, no Participant shall
purchase more than 5,000 shares of Stock with respect to any Offering Period nor
the amounts of Stock set forth in Sections 8(b) and 13(a).  The
Committee may determine with respect to all Participants that any fractional
share, as calculated under this Subsection (c), shall be (i) rounded down
to the next lower whole share or (ii) credited as a fractional
share. In the event any fractional share is rounded down to the next lower
whole share, the amount of the Participant’s Plan Account that is not sufficient
to purchase a whole share shall be retained in the Plan Account for the next
Accumulation Period unless the Participant has previously elected to withdraw
from the Plan in accordance with Section 5(a).

    

    (d)           Available Shares
Insufficient.  In the event that the aggregate number of shares
that all Participants elect to purchase during an Accumulation Period exceeds
the maximum number of shares remaining available for issuance under
Section 13(a), then the number of shares to which each Participant is
entitled shall be determined by multiplying the number of shares available for
issuance by a fraction, the numerator of which is the number of shares that such
Participant has elected to purchase and the denominator of which is the number
of shares that all Participants have elected to purchase.

    

    (e)           Issuance of
Stock.  A Participant in the Plan initially will hold his or
her shares in book entry form through an agent designated by the
Committee.  As soon as reasonably practicable after the close of the
applicable Accumulation Period, the Company shall deliver the purchased shares
to the agent designated by the Committee to hold shares for
Participants. The Committee may establish a Designating Agent Holding
Period to permit the tracking of disqualified dispositions of purchased
shares.  A Participant may, after the expiration of the Designated
Agent Holding Period, request that the agent deliver to him or her a certificate
for the shares held for his or her account.

    

    (f)           Unused Cash
Balances.  Except as provided in Section 7(c), an amount
remaining in the Participant’s Plan Account at the end of an Accumulation Period
shall be refunded to the Participant in cash, without interest.

    

    (g)           Stockholder
Approval.  Any other provision of the Plan notwithstanding, no
shares of Stock shall be purchased under the Plan unless and until the Company’s
stockholders have approved the adoption of the Plan.

    

    SECTION
8.  LIMITATIONS ON STOCK OWNERSHIP.

    

    (a)           Five Percent
Limit.  Any other provision of the Plan notwithstanding, no
Participant shall be granted a right to purchase Stock under the Plan if such
Participant, immediately after his or her election to purchase

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    such
Stock, would own stock possessing more than 5% of the total combined voting
power or value of all classes of stock of the Company or any parent or
Subsidiary of the Company.  For purposes of this Subsection (a), the
following rules shall apply:

    

    (i)           Ownership
of stock shall be determined after applying the attribution rules of
section 424(d) of the Code;

    

    (ii)           Each
Participant shall be deemed to own any stock that he or she has a right or
option to purchase under this or any other plan; and

    

    (iii)           Each
Participant shall be deemed to have the right to purchase 5,000 shares of Stock
under this Plan with respect to each Offering Period.

    

    (b)           Dollar Limit.  Any
other provision of the Plan notwithstanding, no Participant shall purchase Stock
with a Fair Market Value in excess of $25,000 during any calendar year (under
this Plan and all other employee stock purchase plans of the Company or any
parent or Subsidiary of the Company). For purposes of this
Subsection (b), the Fair Market Value of Stock shall be determined in each
case as of the beginning of the Offering Period in which such Stock is
purchased.  Employee stock purchase plans not described in
section 423 of the Code shall be disregarded.  If a Participant
is precluded by this Subsection (b) from purchasing additional Stock under
the Plan, then his or her employee contributions shall automatically be
discontinued and shall resume at the beginning of the earliest Accumulation
Period ending in the next calendar year (if he or she then is an Eligible
Employee).  The limitations set forth in this Subsection are in
addition to any other limitation the Committee may establish from time to
time.

    

    SECTION
9.  RIGHTS NOT TRANSFERABLE.

    

    The
rights of any Participant under the Plan, or any Participant’s interest in any
Stock or moneys to which he or she may be entitled under the Plan, shall not be
transferable by voluntary or involuntary assignment or by operation of law, or
in any other manner other than by beneficiary designation or the laws of descent
and distribution.  If a Participant in any manner attempts to
transfer, assign or otherwise encumber his or her rights or interest under the
Plan, other than by beneficiary designation or the laws of descent and
distribution, then such act shall be treated as an election by the Participant
to withdraw from the Plan under Section 5(a).

    

    SECTION
10.  NO RIGHTS AS AN EMPLOYEE.

    

    Nothing
in the Plan or in any right granted under the Plan shall confer upon the
Participant any right to continue in the employ of a Participating Company for
any period of specific duration or interfere with or otherwise restrict in any
way the rights of the Participating Companies or of the Participant, which
rights are hereby expressly reserved by each, to terminate his or her employment
at any time and for any reason, with or without cause.

    

    SECTION
11.  NO RIGHTS AS A STOCKHOLDER.

    

    A
Participant shall have no rights as a stockholder with respect to any shares of
Stock that he or she may have a right to purchase under the Plan until such
shares have been purchased on the last day of the applicable Accumulation
Period and are delivered to the agent designated by the
Committee.

    

    SECTION
12.  SECURITIES LAW REQUIREMENTS.

    

    Shares of
Stock shall not be issued under the Plan unless a registration statement under
the Act with respect to such shares shall be effective and the issuance and
delivery of such shares otherwise comply with (or are exempt from) all
applicable requirements of law, including without limitation the Act, the rules
and regulations promulgated thereunder, state securities laws and regulations,
and the regulations of any stock exchange or other securities market on which
the Company’s securities may then be traded.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    SECTION
13.  STOCK OFFERED UNDER THE PLAN.

    

    (a)           Authorized
Shares.  The number of shares of Stock available for purchase
under the Plan shall be 1,000,000 (subject to adjustment pursuant to this
Section 13).  Stock subject to the Plan may be shares now or
hereafter authorized but unissued, treasury shares, or both.

    

    (b)           Anti-Dilution
Adjustments.  Subject to any required action by the
stockholders of the Company and the 5,000-share limitation described in Section
7(c), the aggregate number of shares of Stock offered under the Plan and
the price of shares that any Participant has elected to purchase shall be
adjusted proportionately by the Committee for any increase or decrease in the
number of outstanding shares of Stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification, or any other
increase or decrease in the number of shares of Stock effected without receipt
or payment of consideration by the Company.

    

    (c)           Reorganizations.  Any
other provision of the Plan notwithstanding, immediately prior to the effective
time of a Corporate Reorganization, the Offering Period and Accumulation Period
then in progress shall terminate and shares shall be purchased pursuant to
Section 7, unless the Plan is continued or assumed by the surviving
corporation or its parent corporation.  The Plan shall in no event be
construed to restrict in any way the Company’s right to undertake a dissolution,
liquidation, merger, consolidation or other reorganization.

    

    SECTION
14.  AMENDMENT, SUSPENSION OR TERMINATION.

    

    (a)           Amendment.  The
Board may at any time and without notice amend the Plan in any respect;
provided, however, that no amendment shall be made without the approval of the
stockholders of Company to increase the aggregate number of shares of Stock
which may be issued under the Plan (other than as provided in Section 13)
or for which stockholder approval is required under applicable tax, securities
or other laws.

    

    (b)           Suspension or
Termination.  The Plan and all rights of Participants under any
offering hereunder may be terminated or suspended at any time and without notice
at the discretion of the Board. Upon any suspension or termination of the
Plan, all amounts in Plan Accounts shall in the sole discretion of the Committee
be either (i) refunded to Participants in total or (ii) refunded to Participants
to the extent not used to purchase Stock.  Such suspension or
termination may be made without the approval of the stockholders of the Company
or the consent of any Participant.

    

    SECTION
15.  REPORTS AND NOTICES.

    

    (a)           Statements.  Statements
of account shall be provided to Participants at least annually, which statements
shall set forth the amounts deducted from a Participant’s Compensation, the
Purchase Price for Stock purchased under the Plan on the last day of each
Accumulation Period, the number of shares of Stock purchased under the Plan on
the last day of each Accumulation Period and such other information as the
Committee may deem appropriate.

    

    (b)           Notices.  All
notices or other communications by an Eligible Employee or Participant to a
Participating Company under or in connection with the Plan shall be deemed given
when received by the Participating Company at the location, or by the person,
designated by the Participating Company.

    

    SECTION
16.  TERM OF PLAN.

    

    The Plan
shall continue in effect for a term of ten (10) years following the date of
adoption by the Board, unless sooner terminated pursuant to Section
14.

    

    SECTION
17.  DEFINITIONS.

    

    (a)           “Act” means the Securities Act
of 1933, as amended.

    

    (b)           “Accumulation Period” means the period during
which contributions may be made by Participants toward the purchase of Stock
under the Plan, as determined pursuant to Section 3(b).

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (c)           “Board” means the Board of Directors
of the Company, as constituted from time to time.

    

    (d)           “Code” means the Internal Revenue
Code of 1986, as amended.

    

    (e)           “Committee” means the Board or, to the
extent permitted by law, such committee consisting exclusively of one or more
officers or directors of the Company as may be appointed by the Board from time
to time.  Nothing herein shall be construed as obligating the Board to
delegate authority under the Plan, and the Board may at any time rescind the
authority delegated to a committee appointed hereunder or appoint a new
committee.

    

    (f)           “Company” means Energy Composites
Corporation, a Nevada corporation.

    

    (g)           “Compensation” means (i) the total
compensation paid in cash to a Participant by a Participating Company, including
salaries, wages, bonuses, incentive compensation, commissions, overtime pay and
shift premiums, plus (ii) any pre-tax contributions made by the Participant
under section 401(k) or 125 of the Code.  “Compensation” shall exclude
all non-cash items, moving or relocation allowances, cost-of-living equalization
payments, car allowances, tuition reimbursements, imputed income attributable to
cars or life insurance, severance pay, fringe benefits, contributions or
benefits received under employee benefit plans, income attributable to the
exercise of stock options, and similar items.  The Committee shall
determine whether a particular item is included in Compensation.

    

    (h)           “Corporate Reorganization” means:

    

    
      	
               
      

            	
              (i)

            	
              The
      consummation of a merger or consolidation of the Company with or into
      another entity or any other corporate reorganization (other than one in
      which the Company is the surviving entity);
or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      sale, transfer or other disposition of all or substantially all of the
      Company’s assets or the complete liquidation or dissolution of the
      Company.

            

    

    

    (i)           “Designating Agent Holding
Period” means a reasonable period of time that purchased shares of
Stock must be retained by an agent designated by the Committee to hold shares of
Stock in book entry form on behalf of Participants in order to permit the
tracking of disqualified dispositions of Stock.

    

    (j)           “Eligible Employee” means any employee of a
Participating Company who meets both of the following requirements:

    

    
      	
               
      

            	
              (i)

            	
              His
      or her customary employment is for more than five months per calendar year
      and for more than 20 hours per week;
  and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              He
      or she has been an employee of a Participating Company for not less than
      three consecutive months.

            

    

    

    The
foregoing notwithstanding, an individual shall not be considered an Eligible
Employee if his or her participation in the Plan is prohibited by the law of any
country which has jurisdiction over him or her or if compliance with the laws of
the foreign jurisdiction would cause the Plan to violate the requirement of
section 423 of the Code.

    

    (k)           “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

    

    (l)           “Fair Market Value” means the market price of
Stock, determined by the Committee as follows:

    

    
      	
               
      

            	
              (i)

            	
              If
      the Stock was traded on The Nasdaq National Market or the Over-the-Counter
      Bulletin Board on the date in question, then the Fair Market Value shall
      be equal to the last-transaction price quoted for such date by such
      quotation service;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              If
      the Stock was traded on a stock exchange on the date in question, then the
      Fair Market

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    Value
shall be equal to the closing price reported by the applicable composite
transactions report for such date; or

    

    
      	
               
      

            	
              (iii)

            	
              If
      none of the foregoing provisions is applicable, then the Fair Market Value
      shall be determined by the Committee in good faith on such basis as it
      deems appropriate.

            

    

    

    Whenever
possible, the determination of Fair Market Value by the Committee shall be based
on the prices reported in The Wall Street
Journal or as reported directly to the Company by The Nasdaq National
Market, the Over-the-Counter Bulletin Board or a stock exchange.  Such
determination shall be conclusive and binding on all persons.

    

    (m)           “Offering Period” means the period with
respect to which the right to purchase Stock may be granted under the Plan, as
determined pursuant to Section 3(a).

    

    (n)           “Participant” means an Eligible Employee
who elects to participate in the Plan, as provided in
Section 3(c).

    

    (o)           “Participating Company” means (i) the Company
and (ii) each present or future Subsidiary of the Company.

    

    (p)           “Plan” means this Energy Composites
Corporation Employee Stock Purchase Plan, as it may be amended from time to
time.

    

    (q)           “Plan Account” means the account
established for each Participant pursuant to Section 7(a).

    

    (r)           “Purchase Price” means the price at which
Participants may purchase Stock under the Plan, as determined pursuant to
Section 7(b).

    

    (s)           “Stock” means the $0.001 par value
common stock of the Company.

    

    (t)           “Subsidiary” means a “subsidiary
corporation” as defined under Section 424(f) of the Code.

     

     

     

     

     

     

     

    7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]