Document:

EXHIBIT 10.1
                                   PHAZAR CORP

                           2009 EQUITY INCENTIVE PLAN

As Adopted by the Board of Directors on April 8, 2009

1.  PURPOSE.

     The purpose of this Plan is to provide  incentives  to attract,  retain and
motivate  eligible  persons  whose  present  and  potential   contributions  are
important to the success of the Company and its Subsidiaries by offering them an
opportunity to participate in the Company's future performance through awards of
Options, the right to purchase Common Stock and Stock Bonuses. Capitalized terms
not defined in the text are defined in Section 2.

2.  DEFINITIONS.

     As used in this Plan, the following terms will have the following meanings:

"AWARD" means any award under this Plan,  including  any Option,  Stock Award or
 -----
Stock Bonus.

"AWARD  AGREEMENT"  means,  with  respect  to each  Award,  the  signed  written
 ----------------
agreement  between the Company and the  Participant  setting forth the terms and
conditions of the Award.

"BOARD" means the Board of Directors of the Company.
 -----
"CAUSE" means any cause,  as defined by applicable law, for the termination of a
 -----
Participant's  employment  with the  Company  or a Parent or  Subsidiary  of the
Company.

"CODE" means the Internal Revenue Code of 1986, as amended.
 ----
"COMPANY"  means  PHAZAR  CORP,  a  Delaware   corporation,   or  any  successor
 -------
corporation.

"DISABILITY"  means a disability,  whether  temporary or  permanent,  partial or
 ----------
total, as determined by the Board.

"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.
 ------------
"EXERCISE PRICE" means the price at which a holder of an Option may purchase the
 --------------
Shares issuable upon exercise of the Option.

"FAIR MARKET VALUE" means, as of any date, the value of a share of the Company's
 -----------------
Common Stock determined as follows:

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 18 of 34
<PAGE>
     (a) if such  Common  Stock  is  publicly  traded  and is then  listed  on a
national securities exchange,  its closing price on the date of determination if
at least one  hundred  shares were  traded on such date,  otherwise  the closing
price on the last  preceding  date on which at least  one  hundred  shares  were
traded, on the principal national  securities exchange on which the Common Stock
is listed or admitted to trading;

     (b) if such  Common  Stock is quoted on the NASDAQ  National  Market or the
NASDAQ Capital  Market,  its closing price on the NASDAQ  National Market or the
NASDAQ Capital Market, respectively, on the date of determination;

     (c) if neither of the foregoing is applicable, by the Board in good faith.

"INSIDER"  means an officer or director of the Company or any other person whose
 -------
transactions  in the  Company's  Common  Stock are  subject to Section 16 of the
Exchange Act.

"OPTION" means an award of an option to purchase Shares pursuant to Section 6.
 ------
"PARENT" means any corporation  (other than the Company) in an unbroken chain of
 ------
corporations ending with the Company if each of such corporations other than the
Company owns stock  possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain.

"PARTICIPANT" means a person who receives an Award under this Plan.
 -----------
"PERFORMANCE  FACTORS" means the factors  selected by the Board, in its sole and
 --------------------
absolute  discretion,  to determine  whether the performance goals applicable to
Awards  have  been  satisfied,  including,  without  limitation,  the  following
factors:

     (a) Net revenue and/or net revenue growth;

     (b) Earnings  before income taxes and  amortization  and/or earnings before
         income taxes and amortization growth;

     (c) Operating income and/or operating income growth;

     (d) Net income and/or net income growth;

     (e) Earnings per share and/or earnings per share growth;

     (f) Total stockholder return and/or total stockholder return growth;

     (g) Return on equity;

     (h) Operating cash flow return on income;

     (i) Adjusted operating cash flow return on income;

     (j) Economic value added; and

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 19 of 34
<PAGE>
     (k) Individual business objectives.

"PERFORMANCE PERIOD" means the period of service determined by the Board, not to
 ------------------
exceed  five  years,  during  which  years of  service or  performance  is to be
measured for Stock Awards or Stock Bonuses, if such Awards are restricted.

"PLAN" means this PHAZAR CORP 2009 Equity  Incentive  Plan, as amended from time
 ----
to time.

"PURCHASE  PRICE" means the price at which the  Participant of a Stock Award may
 ---------------
purchase the Shares.

"SEC" means the Securities and Exchange Commission.
 ---
"SECURITIES ACT" means the Securities Act of 1933, as amended.
 --------------
"SHARES" means shares of the Company's  Common Stock reserved for issuance under
 ------
this  Plan,  as  adjusted  pursuant  to  Sections  3 and 18,  and any  successor
security.

"STOCK AWARD" means an award of Shares pursuant to Section 7.
 -----------
"STOCK BONUS" means an award of Shares,  or cash in lieu of Shares,  pursuant to
 -----------
Section 8.

"SUBSIDIARY" means any corporation (other than the Company) in an unbroken chain
 ----------
of  corporations  beginning with the Company if each of the  corporations  other
than the last  corporation  in the unbroken  chain owns stock  possessing 50% or
more of the total  combined  voting  power of all classes of stock in one of the
other corporations in such chain.

"TERMINATION" or "TERMINATED" means, for purposes of this Plan with respect to a
 -----------      ----------
Participant,  that the Participant has for any reason ceased to provide services
as an employee, officer, director, consultant, independent contractor or advisor
to the Company or a Parent or Subsidiary of the Company. An employee will not be
deemed to have ceased to provide  services  in the case of (i) sick leave,  (ii)
military  leave,  or (iii) any other leave of absence  approved by the  Company,
provided  that  such  leave is for a period  of not  more  than 90 days,  unless
reemployment  upon the  expiration  of such leave is  guaranteed  by contract or
statute or unless  provided  otherwise  pursuant to a formal policy adopted from
time to time by the Company and issued and  promulgated to employees in writing.
In the case of any employee on an approved leave of absence,  the Board may make
such  provisions  respecting  suspension  of vesting of the Award while on leave
from the  employ of the  Company  or a  Subsidiary  as it may deem  appropriate,
except that in no event may an Option be exercised  after the  expiration of the
term set forth in the Option  agreement.  The Board will have sole discretion to
determine whether a Participant has ceased to provide services and the effective

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 20 of 34
<PAGE>
date on which the  Participant  ceased to  provide  services  (the  "Termination
Date").

3.  SHARES SUBJECT TO THE PLAN.

     3.1 Number of Shares  Available.  Subject to Sections 3.2 and 18, the total
         ---------------------------
aggregate  number of  Shares  reserved  and  available  for  grant and  issuance
pursuant to this Plan shall be 273,600  Shares and will include  Shares that are
subject to: (a) issuance  upon  exercise of an Option but cease to be subject to
such  Option for any reason  other than  exercise of such  Option;  (b) an Award
granted  hereunder but forfeited or  repurchased  by the Company at the original
issue price;  and (c) an Award that  otherwise  terminates  without Shares being
issued.  At all times the Company shall reserve and keep  available a sufficient
number  of  Shares as shall be  required  to  satisfy  the  requirements  of all
outstanding  Options  granted  under  this  Plan and all other  outstanding  but
unvested Awards granted under this Plan.

     3.2  Adjustment  of Shares.  In the event  that the  number of  outstanding
          ---------------------
shares is changed by a stock dividend,  recapitalization,  stock split,  reverse
stock split, subdivision, combination, reclassification or similar change in the
capital structure of the Company without  consideration,  then (a) the number of
Shares  reserved for issuance  under this Plan,  (b) the Exercise  Prices of and
number of Shares  subject to outstanding  Options,  and (c) the number of Shares
subject to other outstanding Awards will be proportionately adjusted, subject to
any  required  action  by the  Board  or the  stockholders  of the  Company  and
compliance with applicable securities laws; provided, however, that fractions of
a Share will not be issued but will either be replaced by a cash  payment  equal
to the Fair  Market  Value of such  fraction of a Share or will be rounded up to
the nearest whole Share, as determined by the Board.

4.  ELIGIBILITY.

     ISOs (as  defined  in Section 6 below)  may be  granted  only to  employees
(including officers and directors who are deemed to be employees) of the Company
or of a Parent or Subsidiary of the Company.  All other Awards may be granted to
officers,  directors,  employees,  agents and  consultants of the Company or any
Parent or Subsidiary  of the Company,  provided  such  consultants,  independent
contractors  and advisors render  bona-fide  services not in connection with the
offer and sale of securities in a  capital-raising  transaction  or promotion of
the Company's securities. A person may be granted more than one Award under this
Plan.

5.  ADMINISTRATION.

     5.1 Board.  The Plan shall be  administered  and  interpreted by the Board.
         -----

     5.2 Board Authority. The Board will have the authority to:
         ---------------

         (a)construe and interpret this Plan, any Award  Agreement and any other
            agreement or document executed pursuant to this Plan;

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 21 of 34
<PAGE>
         (b)prescribe,  amend and rescind rules and regulations relating to this
            Plan or any Award;

         (c) select persons to receive Awards;

         (d) determine the form, terms and conditions of Awards;

         (e)determine  the  number of Shares or other  consideration  subject to
            Awards;

         (f)determine  whether  Awards will be granted  singly,  in  combination
            with,  in tandem with, in  replacement  of, or as  alternatives  to,
            other Awards under this Plan or any other  incentive or compensation
            plan of the Company or any Parent or Subsidiary of the Company;

         (g) grant waivers of Plan or Award conditions;

         (h) determine the vesting, exercisability and payment of Awards;

         (i)correct  any  defect,   supply  any   omission  or   reconcile   any
            inconsistency in this Plan, any Award or any Award Agreement;

         (j) determine whether an Award has been earned;

         (k)amend or terminate the Plan,  provided,  however, the Board will not
            amend the Plan in any  manner  that  requires  shareholder  approval
            without such approval; and

         (l)make  all  other  determinations  necessary  or  advisable  for  the
            administration of this Plan.

     5.3 Board Discretion.  Any determination  made by the Board with respect to
any  Award  will  be made at the  time of  grant  of the  Award  or,  unless  in
contravention  of any express term of this Plan or Award, at any later time, and
such  determination  will be final and binding on the Company and on all persons
having an interest in any Award under this Plan. No member of the Board shall be
personally  liable for any action taken or decision made in good faith  relating
to this  Plan,  and all  members  of the  Board  shall  be fully  protected  and
indemnified to the fullest extent  permitted under applicable law by the Company
in respect to any such action, determination, or interpretation.

6.  OPTIONS.

     The Board may grant Options to eligible persons and will determine  whether
such  Options  will be Incentive  Stock  Options  within the meaning of the Code
("ISO") or Nonqualified Stock Options ("NQSOs"), the number of Shares subject to
the Option, the Exercise Price of the Option, the period during which the Option
may be exercised,  and all other terms and conditions of the Option,  subject to
the following:

     6.1 Form of Option  Grant.  Each  Option  granted  under  this Plan will be
         ---------------------
evidenced by an Award Agreement  which will expressly  identify the Option as an
ISO or an NQSO (hereinafter  referred to as the "Stock Option  Agreement"),  and

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 22 of 34
<PAGE>
will be in such form and contain such provisions (which need not be the same for
each  Participant)  as the Board may from time to time  approve,  and which will
comply with and be subject to the terms and conditions of this Plan.

     6.2 Date of Grant. The date of grant of an Option will be the date on which
         -------------
the  Board  makes the  determination  to grant  such  Option,  unless  otherwise
specified by the Board.  The Stock Option Agreement and a copy of this Plan will
be delivered to the  Participant  within a reasonable time after the granting of
the Option.

     6.3 Exercise  Period.  Options may be exercisable  within the times or upon
         ----------------
the events  determined  by the Board as set forth in the Stock Option  Agreement
governing  such Option;  provided,  however,  that no Option will be exercisable
after the expiration of ten (10) years from the date the Option is granted;  and
provided  further that no ISO granted to a person who directly or by attribution
owns  more than ten  percent  (10%) of the total  combined  voting  power of all
classes of stock of the  Company or of any Parent or  Subsidiary  of the Company
("Ten Percent Stockholder") will be exercisable after the expiration of five (5)
years from the date the ISO is  granted.  The Board also may provide for Options
to  become  exercisable  at one  time or  from  time to  time,  periodically  or
otherwise,  in such  number  of  Shares  or  percentage  of  Shares as the Board
determines, provided, however, that in all events a Participant will be entitled
to  exercise an Option at the rate of at least 20% per year over five years from
the  date  of  grant,  subject  to  reasonable   conditions  such  as  continued
employment;  and further provided that an Option granted to a Participant who is
an officer or director  may become fully  exercisable  at any time or during any
period established by the Company.

     6.4 Exercise  Price.  The Exercise Price of an Option will be determined by
         ---------------
the Board when the  Option is  granted  and may not be less than 85% of the Fair
Market Value of the Shares on the date of grant; provided that: (a) the Exercise
Price of an ISO  will be not less  than  100% of the  Fair  Market  Value of the
Shares on the date of grant; and (b) the Exercise Price of any Option granted to
a Ten Percent Stockholder will not be less than 110% of the Fair Market Value of
the Shares on the date of grant.  Payment for the Shares  purchased must be made
in accordance with Section 9 of this Plan.

     6.5 Method of Exercise.  Options may be  exercised  only by delivery to the
         ------------------
Company of a written stock option exercise agreement (the "Exercise  Agreement")
in a  form  approved  by the  Board,  (which  need  not be  the  same  for  each
Participant),  stating the number of Shares being  purchased,  the  restrictions
imposed on the Shares purchased under such Exercise Agreement,  if any, and such
representations and agreements regarding the Participant's investment intent and
access to information and other matters, if any, as may be required or desirable
by the Company to comply with applicable  securities laws, together with payment
in full of the Exercise Price for the number of Shares being purchased.

     6.6  Termination.  Notwithstanding  the  exercise  periods set forth in the
          -----------
Stock  Option  Agreement,  exercise  of an Option  will always be subject to the
following:

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 23 of 34
<PAGE>
         (a) If the  Participant's  service is Terminated  for any reason except
death or  Disability,  then the  Participant  may  exercise  such  Participant's
Options only to the extent that such Options  would have been  exercisable  upon
the Termination Date, but must be exercised no later than three (3) months after
the Termination Date (or such longer time period not exceeding five (5) years as
may be approved by the Board,  with any  exercise  beyond three (3) months after
the Termination Date deemed to be an NQSO).

         (b)  If  the  Participant's   service  is  Terminated  because  of  the
Participant's  death or  Disability  (or the  Participant  dies within three (3)
months  after a  Termination  other than for Cause or  because of  Participant's
Disability),  then the Participant's Options may be exercised only to the extent
that  such  Options  would  have  been  exercisable  by the  Participant  on the
Termination Date and must be exercised by the Participant (or the  Participant's
legal  representative)  no later than twelve (12) months  after the  Termination
Date (or such longer time period not exceeding five (5) years as may be approved
by the Board,  with any such  exercise  beyond  (i) three (3)  months  after the
Termination  Date  when  the  Termination  is for  any  reason  other  than  the
Participant's  death  or  Disability,  or (ii)  twelve  (12)  months  after  the
Termination Date when the Termination is for Participant's  death or Disability,
deemed to be an NQSO).

         (c)  Notwithstanding  the provisions in paragraph  6.6(a) above, if the
Participant's  service is Terminated  for Cause,  neither the  Participant,  the
Participant's estate nor such other person who may then hold the Option shall be
entitled to exercise  any Option with  respect to any Shares  whatsoever,  after
Termination,  whether  or not after  Termination  the  Participant  may  receive
payment from the Company or a Subsidiary for vacation pay, for services rendered
prior to  Termination,  for services  rendered for the day on which  Termination
occurs, for salary in lieu of notice, or for any other benefits. For the purpose
of this  paragraph,  Termination  shall be  deemed to occur on the date when the
Company  dispatches  notice or advice to the Participant that his or her service
is terminated.

     6.7  Limitations  on Exercise.  The Board may specify a reasonable  minimum
          ------------------------
number of Shares that may be purchased  on any  exercise of an Option,  provided
that such minimum  number will not prevent the  Participant  from  exercising an
Option for the full number of Shares for which it is then exercisable.

     6.8  Limitations on ISO. The aggregate Fair Market Value  (determined as of
          ------------------
the date of grant) of Shares with respect to which ISO are  exercisable  for the
first time by a  Participant  during any calendar year (under this Plan or under
any other  incentive  stock option plan of the Company,  Parent or Subsidiary of
the Company) will not exceed $100,000. If the Fair Market Value of Shares on the
date of grant with respect to which ISO are  exercisable for the first time by a
Participant during any calendar year exceeds $100,000,  then the Options for the
first $100,000 worth of Shares to become  exercisable in such calendar year will
be ISO and the  Options  for the  amount  in  excess  of  $100,000  that  become
exercisable  in that calendar year will be NQSOs.  In the event that the Code or
the regulations  promulgated  thereunder are amended after the Effective Date of
this Plan to provide  for a different  limit on the Fair Market  Value of Shares
permitted  to be  subject to ISO,  such  different  limit will be  automatically

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 24 of 34
<PAGE>
incorporated  herein and will apply to any Options  granted  after the effective
date of such amendment.

     6.9  Modification,  Extension or Renewal.  The Board may modify,  extend or
          -----------------------------------
renew outstanding Options and authorize the grant of new Options in substitution
therefore, provided that any such action may not, without the written consent of
a  Participant,  impair  any of  such  Participant's  rights  under  any  Option
previously granted. Any outstanding ISO that is modified,  extended,  renewed or
otherwise altered will be treated in accordance with Section 424(h) of the Code.
The Board may reduce the  Exercise  Price of  outstanding  Options  without  the
consent of Participants affected by a written notice to them; provided, however,
that the Exercise Price may not be reduced below the minimum Exercise Price that
would be  permitted  under  Section 6.4 of this Plan for Options  granted on the
date the action is taken to reduce the Exercise Price.

     6.10 No Disqualification. Notwithstanding any other provision in this Plan,
          -------------------
no term of this Plan  relating to ISO will be  interpreted,  amended or altered,
nor will any discretion or authority granted under this Plan be exercised, so as
to disqualify this Plan under Section 422 of the Code or, without the consent of
the Participant affected, to disqualify any ISO under Section 422 of the Code.

7.  STOCK AWARD.

     A Stock  Award is an offer by the  Company  to sell to an  eligible  person
Shares that may or may not be subject to restrictions.  The Board will determine
to whom an offer will be made, the number of Shares the person may purchase, the
price to be paid (the "Purchase  Price"),  the  restrictions to which the Shares
will be subject,  if any, and all other terms and conditions of the Stock Award,
subject to the following:

     7.1 Form of Stock Award. All purchases under a Stock Award made pursuant to
         -------------------
this  Plan  will  be  evidenced  by an  Award  Agreement  (the  "Stock  Purchase
Agreement")  that  will be in such  form  (which  need  not be the same for each
Participant)  as the Board will from time to time approve,  and will comply with
and be subject to the terms and  conditions  of this Plan.  The offer of a Stock
Award will be accepted by the Participant's  execution and delivery of the Stock
Purchase  Agreement and payment for the Shares to the Company in accordance with
the Stock Purchase Agreement.

     7.2 Purchase  Price.  The Purchase Price of Shares sold pursuant to a Stock
         ---------------
Award will be determined by the Board on the date the Stock Award is granted and
may not be less  than 85% of the Fair  Market  Value of the  Shares on the grant
date, except in the case of a sale to a Ten Percent  Stockholder,  in which case
the  Purchase  Price  will be 100% of the  Fair  Market  Value.  Payment  of the
Purchase Price must be made in accordance with Section 9 of this Plan.

     7.3 Terms of Stock Awards. Stock Awards may be subject to such restrictions
         ---------------------
as the Board may impose.  These  restrictions  may be based upon completion of a
specified  number of years of service with the Company or upon completion of the

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 25 of 34
<PAGE>
performance  goals as set out in advance in the  Participant's  individual Stock
Purchase  Agreement.  Stock Awards may vary from  Participant to Participant and
between groups of  Participants.  Prior to the grant of a Stock Award subject to
restrictions,  the Board shall:  (a) determine  the nature,  length and starting
date of any  Performance  Period for the Stock Award;  (b) select from among the
Performance  Factors to be used to measure  performance  goals,  if any; and (c)
determine the number of Shares that may be awarded to the Participant.  Prior to
the transfer of any Stock Award,  the Board shall  determine the extent to which
such  Stock  Award  has  been  earned.   Performance  Periods  may  overlap  and
Participants  may participate  simultaneously  with respect to Stock Awards that
are subject to  different  Performance  Periods and have  different  performance
goals and other criteria.

     7.4 Termination During  Performance  Period. If a Participant is Terminated
         ---------------------------------------
during a  Performance  Period  for any  reason,  then such  Participant  will be
entitled to payment  (whether in Shares,  cash or otherwise) with respect to the
Stock  Award  only  to the  extent  earned  as of the  date  of  Termination  in
accordance  with the Stock  Purchase  Agreement,  unless  the  Board  determines
otherwise.

8.  STOCK BONUSES.

     8.1  Awards  of Stock  Bonuses.  A Stock  Bonus is an award of  Shares  for
          -------------------------
extraordinary  services  rendered to the Company or any Parent or  Subsidiary of
the Company.  A Stock Bonus will be awarded  pursuant to an Award Agreement (the
"Stock Bonus  Agreement")  that will be in such form (which need not be the same
for each  Participant)  as the Board  will from time to time  approve,  and will
comply  with and be subject to the terms and  conditions  of this Plan.  A Stock
Bonus may be awarded upon  satisfaction of such performance goals as are set out
in advance in the  Participant's  individual  Award Agreement (the  "Performance
Stock Bonus Agreement").  Stock Bonuses may vary from Participant to Participant
and between groups of Participants, and may be based upon the achievement of the
Company, Parent or Subsidiary and/or individual performance factors or upon such
other criteria as the Board may determine.

     8.2 Terms of Stock  Bonuses.  The Board will determine the number of Shares
         -----------------------
to be awarded to the  Participant.  If the Stock Bonus is being  earned upon the
satisfaction  of  performance  goals  pursuant  to  a  Performance  Stock  Bonus
Agreement,  then the Board will:  (a) determine the nature,  length and starting
date of any Performance  Period for each Stock Bonus;  (b) select from among the
Performance  Factors  to be used to measure  the  performance,  if any;  and (c)
determine the number of Shares that may be awarded to the Participant.  Prior to
the payment of any Stock Bonus,  the Board shall  determine  the extent to which
such Stock  Bonuses  have been  earned.  Performance  Periods  may  overlap  and
Participants may participate  simultaneously  with respect to Stock Bonuses that
are subject to different Performance Periods and different performance goals and
other criteria. The number of Shares may be fixed or may vary in accordance with
such performance goals and criteria as may be determined by the Board. The Board
may adjust the  performance  goals  applicable to the Stock Bonuses to take into
account changes in law and accounting or tax rules and to make such  adjustments
as  the  Board  deems   necessary  or  appropriate  to  reflect  the  impact  of

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 26 of 34
<PAGE>
extraordinary  or unusual items,  events or  circumstances to avoid windfalls or
hardships.

     8.3 Form of Payment. The earned portion of a Stock Bonus may be paid to the
         ---------------
Participant by the Company either currently or on a deferred basis, as agreed by
the Participant and the Company,  with such interest or dividend equivalent,  if
any, as the Board may determine.  Payment of an interest or dividend  equivalent
(if  any)  may be made in the  form of cash or  whole  Shares  or a  combination
thereof,  either in a lump sum  payment  or in  installments,  as the Board will
determine.

9.  PAYMENT FOR SHARE PURCHASES.

     Payment for Shares purchased pursuant to this Plan must be made in cash (by
check) or, where  expressly  approved for the Participant by the Board and where
permitted by law:

     (a) by cancellation of indebtedness of the Company to the Participant;

     (b) by  surrender  of  shares  that  either:  (1)  have  been  owned by the
Participant  for more than six (6)  months  and have been  paid for  within  the
meaning of SEC Rule 144; or (2) were obtained by the  Participant  in the public
market;

     (c) by  waiver  of  compensation  due or  accrued  to the  Participant  for
services rendered;

     (d) with respect only to purchases upon exercise of an Option, and provided
that a public market for the Company's stock exists:

(1)  through  a  "same  day  sale"   commitment   from  the  Participant  and  a
broker-dealer that is a member of the Financial Industry Regulatory Authority (a
"FINRA  Dealer")  whereby the  Participant  irrevocably  elects to exercise  the
Option and to sell a portion of the Shares so  purchased to pay for the Exercise
Price,  and whereby the FINRA  Dealer  irrevocably  commits upon receipt of such
Shares to forward the Exercise Price directly to the Company; or

(2)  through a  "margin"  commitment  from the  Participant  and a FINRA  Dealer
whereby the Participant  irrevocably elects to exercise the Option and to pledge
the Shares so purchased to the FINRA Dealer in a margin  account as security for
a loan from the FINRA  Dealer in the amount of the Exercise  Price,  and whereby
the FINRA Dealer irrevocably  commits upon receipt of such Shares to forward the
Exercise Price directly to the Company; or

     (e)   by any combination of the foregoing.

10.  WITHHOLDING TAXES.

     10.1   Withholding   Generally.   Whenever  Shares  are  to  be  issued  in
            -----------------------
satisfaction  of Awards  granted  under this Plan,  the  Company may require the
Participant  to remit to the Company an amount  sufficient  to satisfy  federal,
state  and local  withholding  tax  requirements  prior to the  delivery  of any

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 27 of 34
<PAGE>
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount  sufficient  to  satisfy  federal,   state,  and  local  withholding  tax
requirements.

     10.2 Stock  Withholding.  When,  under  applicable  tax laws, a participant
          ------------------
incurs tax  liability  in  connection  with the exercise or vesting of any Award
that is subject to tax  withholding  and the Participant is obligated to pay the
Company the amount required to be withheld,  the Board may allow the Participant
to satisfy  the  minimum  withholding  tax  obligation  by  electing to have the
Company  withhold  from the Shares to be issued that  number of Shares  having a
Fair  Market  Value  equal  to  the  minimum  amount  required  to be  withheld,
determined  on  the  date  that  the  amount  of  tax  to be  withheld  is to be
determined.  All  elections by a  Participant  to have Shares  withheld for this
purpose will be made in  accordance  with the  requirements  established  by the
Board and will be in writing in a form acceptable to the Board.

11.  PRIVILEGES OF STOCK OWNERSHIP.

     11.1 Voting and Dividends.  No Participant will have any of the rights of a
          --------------------
stockholder  with  respect  to any  Shares  until the  Shares  are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a stockholder and will have all the rights of a stockholder with respect to such
Shares,  including  the  right  to vote  and  receive  all  dividends  or  other
distributions made or paid with respect to such Shares;  provided,  that if such
Shares are issued  pursuant  to a Stock Award with  restrictions,  then any new,
additional  or  different  securities  the  Participant  may become  entitled to
receive with respect to such Shares by virtue of a stock  dividend,  stock split
or any other change in the corporate or capital structure of the Company will be
subject to the same restrictions as the Stock Award.

     11.2  Financial  Statements.  The Company will provide  publicly  available
           ---------------------
financial information,, including financial statements to each Participant prior
to  such  Participant's  purchase  of  Shares  under  this  Plan,  and  to  each
Participant  annually during the period such Participant has Awards outstanding;
provided,  however,  the Company will not be required to provide such  financial
statements to Participants  whose services in connection with the Company assure
them access to equivalent information.

12.  NON-TRANSFERABILITY.

     Awards of Shares  granted under this Plan, and any interest  therein,  will
not be  transferable  or  assignable  by the  Participant,  and  may not be made
subject to execution,  attachment or similar  process,  other than by will or by
the laws of descent and distribution. Awards of Options granted under this Plan,
and  any  interest  therein,  will  not be  transferable  or  assignable  by the
Participant,  and may not be made subject to  execution,  attachment  or similar
process,  other  than by will or by the laws of  descent  and  distribution,  by
instrument to an inter vivos or  testamentary  trust in which the options are to
be  passed  to  beneficiaries  upon  the  death  of the  trustor,  or by gift to
"immediate family" as that term is defined in 17 C.F.R. 240.16a-1(e). During the

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 28 of 34
<PAGE>
lifetime  of  the  Participant  an  Award  will  be  exercisable   only  by  the
Participant.  During the lifetime of the Participant, any elections with respect
to an Award may be made only by the Participant  unless otherwise  determined by
the Board and set forth in the Award  Agreement  with respect to Awards that are
not ISOs.

13.  CERTIFICATES.

     All certificates  for Shares or other securities  delivered under this Plan
will be subject to such stop transfer orders,  legends and other restrictions as
the Board may deem  necessary or  advisable,  including  restrictions  under any
applicable federal,  state or foreign securities law, or any rules,  regulations
and other  requirements of the SEC or any stock exchange or automated  quotation
system upon which the Shares may be listed or quoted.

14.  ESCROW; PLEDGE OF SHARES.

     To  enforce  any  restrictions  on a  Participant's  Shares,  the Board may
require  the  Participant  to  deposit  all  certificates  representing  Shares,
together  with stock  powers or other  instruments  of transfer  approved by the
Board  appropriately  endorsed in blank, with the Company or an agent designated
by the  Company  to hold in  escrow  until  such  restrictions  have  lapsed  or
terminated,  and the  Board  may  cause a legend  or  legends  referencing  such
restrictions to be placed on the certificates.

15.  EXCHANGE AND BUYOUT OF AWARDS.

     The Board may,  at any time or from time to time,  authorize  the  Company,
with the consent of the respective Participants, to issue new Awards in exchange
for the surrender and cancellation of any or all outstanding  Awards.  The Board
may at any time buy from a Participant an Award previously  granted with payment
in cash,  Shares or other  consideration,  based on such terms and conditions as
the Board and the Participant may agree.

16.  SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.

     An Award will not be effective  unless such Award is in compliance with all
applicable  federal and state  securities  laws,  rules and  regulations  of any
governmental  body,  and the  requirements  of any stock  exchange or  automated
quotation system upon which the Shares may then be listed or quoted, as they are
in effect on the date of grant of the Award and also on the date of  exercise or
other  issuance.  Notwithstanding  any other provision in this Plan, the Company
will have no obligation to issue or deliver  certificates  for Shares under this
Plan prior to: (a) obtaining any approvals from  governmental  agencies that the
Company  determines  are  necessary or advisable;  and/or (b)  completion of any
registration  or other  qualification  of such Shares under any state or federal
law or  ruling  of any  governmental  body  that the  Company  determines  to be
necessary or advisable.  The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the registration, qualification
or  listing  requirements  of any  state  securities  laws,  stock  exchange  or
automated  quotation  system,  and the Company  will have no  liability  for any
inability or failure to do so.

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 29 of 34
<PAGE>
17.  NO OBLIGATION TO EMPLOY.

     Nothing in this Plan or any Award granted under this Plan will confer or be
deemed to confer on any  Participant  any right to continue in the employ of, or
to continue any other relationship with, the Company or any Parent or Subsidiary
of the  Company  or limit in any way the right of the  Company  or any Parent or
Subsidiary  of the  Company  to  terminate  Participant's  employment  or  other
relationship at any time, with or without cause.

18.  CORPORATE TRANSACTIONS.

         18.1 Assumption or Replacement of Awards by Successor. In the event of
              ------------------------------------------------
(a) a dissolution or liquidation of the Company, (b) a merger or consolidation
in which the Company is not the surviving corporation (other than a merger or
consolidation with a wholly-owned subsidiary, a reincorporation of the Company
in a different jurisdiction, or other transaction in which there is no
substantial change in the stockholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (d) the sale of substantially
all of the assets of the Company, or (e) the acquisition, sale, or transfer of
more than 50% of the outstanding shares of the Company by tender offer or
similar transaction, any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption, conversion or
replacement will be binding on all Participants. In the alternative, the
successor corporation may substitute equivalent Awards or provide substantially
similar consideration to Participants as was provided to stockholders (after
taking into account the existing provisions of the Awards). The successor
corporation may also issue, in place of outstanding Shares of the Company held
by the Participant, substantially similar shares or other property subject to
repurchase restrictions no less favorable to the Participant. In the event such
successor corporation (if any) refuses to assume or substitute Awards, as
provided above, pursuant to a transaction described in this Subsection 18.1, (i)
the vesting of any or all Awards granted pursuant to this Plan will accelerate
upon a transaction described in this Section 18 and (ii) any or all Options
granted pursuant to this Plan will become exercisable in full prior to the
consummation of such event at such time and on such conditions as the Board
determines. If such Options are not exercised prior to the consummation of the
corporate transaction, they shall terminate at such time as determined by the
Board.

     18.2 Other  Treatment of Awards.  Subject to any greater  rights granted to
          --------------------------
Participants under the foregoing  provisions of this Section 18, in the event of
the occurrence of any  transaction  described in Section 18.1,  any  outstanding
Awards  will be treated  as  provided  in the  applicable  agreement  or plan of
merger, consolidation, dissolution, liquidation, or sale of assets.

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 30 of 34
<PAGE>
     18.3 Assumption of Awards by the Company.  The Company,  from time to time,
          -----------------------------------
also may substitute or assume  outstanding  awards  granted by another  company,
whether in connection with an acquisition of such other company or otherwise, by
either;  (a)  granting  an Award under this Plan in  substitution  of such other
company's award; or (b) assuming such award as if it had been granted under this
Plan if the terms of such  assumed  award  could be applied to an Award  granted
under this Plan.  Such  substitution  or assumption  will be  permissible if the
holder of the  substituted  or  assumed  award  would have been  eligible  to be
granted an Award  under this Plan if the other  company had applied the rules of
this Plan to such grant.  In the event the Company  assumes an award  granted by
another  company,  the terms and conditions of such award will remain  unchanged
(except  that the  exercise  price and the number and nature of Shares  issuable
upon  exercise of any such option  will be  adjusted  appropriately  pursuant to
Section  424(a) of the  Code).  In the event the  Company  elects to grant a new
Option rather than assuming an existing  option,  such new Option may be granted
with a similarly adjusted Exercise Price.

19.  ADOPTION AND STOCKHOLDER APPROVAL.

     This Plan will become  effective  on the date on which it is adopted by the
Board (the  "Effective  Date").  Upon the  Effective  Date,  the Board may grant
Awards pursuant to this Plan. The Company intends to seek  stockholder  approval
of the Plan within twelve (12) months after the date this Plan is adopted by the
Board; provided, however, if the Company fails to obtain stockholder approval of
the Plan during such 12-month  period,  pursuant to Section 422 of the Code, any
Option  granted as an ISO at any time under the Plan will not  qualify as an ISO
within the meaning of the Code and will be deemed to be an NQSO.  Further,  said
Awards made before  obtaining  stockholder  approval shall be  conditional  upon
stockholder  approval and consistent  with NASDAQ Rule 4350(i),  the Company may
not issue securities  pursuant to Awards before obtaining  stockholder  approval
for this plan.

20.  TERM OF PLAN/GOVERNING LAW.

     Unless earlier terminated as provided herein,  this Plan will terminate ten
(10) years from the date this Plan is adopted by the Board or, if  earlier,  the
date of stockholder  approval.  This Plan and all agreements thereunder shall be
governed by and construed in accordance with the laws of the State of Texas.

21.  AMENDMENT OR TERMINATION OF PLAN.

     The  Board may at any time  terminate  or amend  this Plan in any  respect,
including  without  limitation  amendment  of any  form of  Award  Agreement  or
instrument to be executed  pursuant to this Plan;  provided,  however,  that the
Board will not, without the approval of the  stockholders of the Company,  amend
this Plan in any manner that requires such stockholder approval.

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 31 of 34
<PAGE>
22.  NONEXCLUSIVITY OF THE PLAN.

     Neither the adoption of this Plan by the Board, the submission of this Plan
to the stockholders of the Company for approval,  nor any provision of this Plan
will be construed as creating any limitations on the power of the Board to adopt
such additional compensation  arrangements as it may deem desirable,  including,
without  limitation,  the granting of stock options and bonuses  otherwise  than
under this Plan, and such  arrangements  may be either  generally  applicable or
applicable only in specific cases.

23.   ACTION BY BOARD.

     Any action  permitted  or required to be taken by the Board or any decision
or determination  permitted or required to be made by the Board pursuant to this
Plan shall be taken or made in the Board's sole and absolute discretion.

PHAZAR CORP
2009 Annual Shareholder Meeting Proxy Notice                       Page 32 of 34altair_8k-ex1001.htm

EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

(Level 12 Officer)

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of December 6, 2009, by and among Altairnano, Inc., a Nevada corporation (the “Company”), Altair Nanotechnologies Inc., a Canadian corporation (“Parent”; together with the Company and all direct or indirect majority-owned
subsidiaries of the Parent, the “Consolidated Companies”; each, a “Consolidated Company”), and Bruce Sabacky, an individual (“Employee”).

RECITALS

A.    The Company is a wholly-owned indirect subsidiary of Parent and holds a substantial portion of the operating assets of the Consolidated Companies.

 

B.    Parent and the Company desire to retain Employee as an employee of a Consolidated Company subject to the terms and conditions of this Agreement.

 

C.    Employee desires to continue as an employee of a Consolidated Company subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of this Agreement and of the covenants and conditions contained in this Agreement, the parties hereto agree as follows:

1.   Employment; Location. The Company hereby employs Employee during the Term, and Employee hereby accepts such employment.  The initial “Place of Employment”
for Employee shall be in Washoe County in the State of Nevada.  If the Company requests that Employee relocate and Employee agrees to such request, the relocated place of employment shall thereafter be the “Place of Employment.”

 

2.   Term.  The term of this Agreement (the “Term”) shall commence on the date first set forth above (the “Effective Date”).  The Term
shall terminate upon the earlier to occur of (i) the Expiration Date (as defined below), and (ii) the termination of Employee’s employment with all of the Consolidated Companies.  The initial Expiration Date shall be the two-year anniversary of the Effective Date.  Unless the Company or Employee provides the other with at least ninety (90) days advance written notice prior to the initial Expiration Date (and each Expiration Date thereafter) of its intention not to renew this term of
Agreement following the then-current Expiration Date, the Expiration Date shall automatically be changed to the two-year anniversary of the then-current Expiration Date. Notwithstanding anything in this Agreement to the contrary, Sections 7 and 8 shall survive termination of this Agreement and expiration of the Term for the time periods set forth therein, and this sentence and all provisions related to the interpretation or enforcement of, and disputes under, this Agreement shall survive until the expiration
of the last applicable statute of limitations.

 

 

1

 

 

3.   Duties.  Employee’s title shall be Vice President, Chief Technology Officer of Parent. Employee's duties shall include such duties as are specifically assigned
or delegated to Employee by the Board of Directors of any Consolidated Company (any such Board of Directors, the “Board”) and such other duties as are typically performed by an employee with the same position as Employee.  Employee acknowledges that, subject to Section 6.3(c), the Board may change, increase or decrease Employee’s title, position and/or duties from time to time its discretion and may appoint Employee as an employee of another Consolidated Company, which employment is
governed by this Agreement.  Employee shall diligently execute his or her duties and shall devote his or her full time, skills and efforts to such duties during ordinary working hours. Employee shall faithfully adhere to, execute and fulfill all lawful policies established from time to time by the Consolidated Companies.

 

4.   Compensation and Benefits.  The Company shall pay Employee, and Employee accepts as full compensation for all services to be rendered to all Consolidated Companies,
the following compensation and benefits:

 

4.1   Base Salary.  During the Term, the Company shall pay Employee an annual base salary per year in an amount not less than $225,000.  Such annual base salary
shall be payable in accordance with the Company's customary pay schedule.  During the Term, the base salary of Employee shall not be reduced below the minimum required by this Section.

 

4.2   Stock Options.   During the period of Employee’s employment with a Consolidated Company, Parent has granted, and in the future may from time to time
grant, to Employee options to purchase common shares of Parent and/or issue to Employee common shares that are subject to rights of forfeiture or repurchase under certain terms and conditions (such options or shares, “Equity Awards”).  Parent agrees that agreements governing any past Equity Awards shall be amended to provide (if not already so amended), and that any future
Equity Awards shall provide, that all otherwise unvested Equity Awards shall, unless otherwise requested by Employee in writing, immediately vest as of the effective date of the Change of Control Event.  A “Change of Control Event” means (a) any capital reorganization, reclassification of the capital stock of Parent, consolidation or merger of Parent with another corporation in which Parent is not the survivor (other than a transaction
effective solely for the purpose of changing the jurisdiction of incorporation of Parent), (b) the sale, transfer or other disposition of all or substantially all of  the Consolidated Companies’ assets to another entity, (c) the acquisition by a single person (or two or more persons acting as a group, as a group is defined for purposes of Section 13(d)(3) under the Securities Exchange Act of 1934, as amended) of more than 40% of the outstanding common shares of Parent.

 

4.3   Bonus.  Employee shall be eligible to receive an annual performance bonus conditioned upon the achievement of performance measures established by the Board after
consultation with Employee.  The potential amount of the performance bonus for each fiscal year if all performance measures are met, shall be at least up to sixty percent (60%) of Employee’s base salary paid for the calendar year to which such bonus relates.  Employee and the Board shall, prior to the end of the first month of each calendar year, negotiate in good faith with the objective of agreeing upon performance objectives and related bonus amounts for the upcoming fiscal year.  If
Employee and the Board are not able to reach a mutual agreement as to performance objectives, the objectives and amount of any bonus shall be in the discretion of the Board.  In all circumstances, the bonus owing to Employee hereunder shall be paid to Employee prior to March 15th of the year following the year in which the Employee has achieved the agreed-upon performance objectives, such achievement being determined in the sole discretion of the Board.

 

 

2

 

 

4.4   Additional Benefits.  Employee shall be eligible to participate in, and be subject to, the Consolidated Companies’ employee benefit plans for, and policies
governing, employees, if and when any such plans and policies may be adopted, including, without limitation, bonus plans, pension or profit sharing plans, incentive stock plans, and those plans and policies covering life, disability, health, and dental insurance in accordance with the rules established in the discretion of the Board for individual participation in any such plans and policies as may be in effect from time to time.

 

4.5   Vacation, Sick Leave, and Holidays.  Beginning on the date hereof, Employee shall be entitled to vacation, sick leave and holidays at full pay in accordance with
the Consolidated Companies’ policies.

 

4.6   Deductions.  The Company shall have the right to deduct from the compensation due to Employee hereunder and all sums required for social security and withholding
taxes and for any other federal, state or local tax or charge which may be hereafter enacted or required by law as a charge on any cash or non-cash compensation of Employee.

5.   Business Expenses.  The Company shall promptly reimburse Employee for all reasonable out-of-pocket entertainment
and business expenses Employee incurs in fulfilling Employee’s duties hereunder subject to, and in accordance with, the general reimbursement policy of the Consolidated Companies in effect from time to time.

 

6.   Termination of Employee's Employment.

 

6.1   Termination of Employment by the Company for Cause.  Employee's employment may be terminated by the Consolidated Companies at any time for “Cause.”  A determination of whether
Employee’s actions justify termination for Cause and the date on which such termination is effective shall be made in good faith by the Board of Parent.  A termination of Employee's employment pursuant to this Section 6.1 shall be effective as of the effective date of the notice by the Board of Parent to Employee that it has made the required determination, or as of such subsequent date, if any, as is specified in such notice.  For purposes of this Agreement, “Cause” shall
include (a) Employee’s material breach of this Agreement, which breach cannot be cured or, if capable of being cured, is not cured within fifteen (15) days after receipt of written notice of the need to cure, (b) any act of theft, embezzlement, conversion or other taking or misuse of the property or opportunities of and Consolidated Company, (c) any fraudulent or criminal activities, (d) any grossly negligent or unethical activity, (e) any activity that causes substantial harm to any Consolidated Companies,
its reputation, or to its officers, directors or employees  (including, without limitation, the illegal possession or consumption of drugs for which Employee does not have a valid prescription on property controlled by any Consolidated Company or in the course of performing services for any Consolidated Company), or (vi) habitual neglect of or deliberate or intentional refusal to perform Employee’s duties and obligations under this Agreement.

 

 

3

 

 

6.2   Termination by the Company Without Cause.  Employee’s employment with each Consolidated Company is “at will,” any Employee’s employment with any and all Consolidated Companies
is terminable at any time without Cause or any reason of any kind.  A termination of Employee's employment pursuant to this Section 6.2 shall be effective as of the date specified in the notice of termination.

 

6.3   Termination By Employee For Good Reason.  Employee may terminate his employment with any and all Consolidated Companies at any time for Good Reason (as defined below), provided Employee has delivered
a written notice to the Board of Parent that briefly describes the facts underlying Employee's belief that Good Reason exists and the Company has failed to cure such situation within 15 days of its receipt of such notice.

 

For purposes of this Agreement, “Good Reason” shall mean and consist of: (a) a material breach by the Company of any of its obligations, duties, agreements, representations or warranties under this Agreement that cannot be cured or, if capable of being cured, is not cured within fifteen (15) days after receipt of written notice from the
Employee of the need to cure; (b) without Employee's prior written consent, the Consolidated Company requires the Employee to relocate Employee's place of employment to any place other than the Place of Employment as a condition to continued employment or maintenance of the same or a comparable position with the Consolidated Companies (provided that reasonable business travel shall not constitute a relocation of Employee’s place of employment and required relocation shall constitute Good Reason only following
the Consolidated Companies’ notification of Employee of its requirement that Employee relocate and prior to Employee’s agreement to relocate his or her place of employment), or (c) during the period ninety (90) days prior to and one year after a Change of Control Event, a material adverse change in Employee’s title, position and/or duties within the Consolidated Companies as a whole.

 

6.4   Termination by Employee Without Good Reason.  Upon not less than 15 day's prior written notice (which notice shall specify the effective date of the termination), Employee may terminate his employment
with any and all Consolidated Companies by such notice without Good Reason or any reason of any kind.

 

6.5   Termination of Employment by Death.  If Employee dies during the term of employment, Employee's employment with all Consolidated Companies shall be terminated effective as of the date of Employee’s
death.

 

6.6   Disability.  The Company or Employee may terminate Employee's employment with all Consolidated Companies if Employee shall become unable to fulfill his duties under this Agreement, as measured by
the Consolidated Companies’ usual business activities,  for the eligibility period set forth in the long-term disability policy under which Employee is potentially eligible to receive disability benefits (the “Eligibility Period”) by reason of any medically determinable physical and/or mental disability determined in accordance with the procedure in this Section 6.6.  If in the opinion of the Company or Employee, Employee is disabled, then the following shall occur:

 

 

4

 

 

(a)    the Company or Employee shall promptly so notify (by dated written notice) the insurance company or carrier that, at that time, insures the employees of the Company against long-term disability (the “Company’s Insurance Carrier”) and request a determination
as to whether Employee is disabled pursuant to the terms of the Company's long-term disability plan or policy; and

 

(b)    the matter of Employee's disability shall be resolved, and Employee and the Company shall abide by the decision of, the Company’s Insurance Carrier.

A termination of Employee's employment pursuant to this Section 6.6 shall be effective at the expiration of the Eligibility Period, as determined in accordance with this Section 6.6.  If Employee is not covered by a Company-sponsored long-term disability policy on the date that the Company and/or Employee
believe that Employee may have a medically determinable physical and/or mental disability, the Board of Parent shall make the determination of whether Employee has a medically determinable physical and/or mental disability using the definition of disability, including applicable court interpretations, used for purposes of the Americans With Disabilities Act of 1990, as amended, and the “Eligibility Period” shall be 90 days from the date as of which it is determined that the Employee commenced having
a medically determinable disability.

7.   Effect of Termination of Employee’s Employment.

 

7.1           Provisions Applicable to All Terminations. If Employee’s employment with all Consolidated Companies is terminated for any reason, (a) all cash compensation from the Company described in this Agreement that was
due through the effective date of the termination, but unpaid, shall be computed and paid to Employee by the Company within any payment deadline set forth in Nevada law (or if none is applicable, within 30 days), provided that any disability payments to be made by the Company’s Insurance Carrier shall be made when, as and if made by the Company’s Insurance Carrier; and (b)  Employee, or his heirs, or estate, as the case may be, shall receive all compensation and employee benefits accrued
through the effective date of the termination, and all benefits provided through the Company's insurance plans pursuant to the terms and conditions of such insurance plans or that the Company is required to provide by governing law.

 

7.2   Termination Absent a Change of Control and Absent Cause/Good Reason.  If Employee's employment with all of the Consolidated Companies is terminated under any circumstances other than the circumstances
described in Section 7.3 or Section 7.4 below, whether by the Consolidated Companies or Employee, Employee shall not be entitled to any compensation in addition to that set forth in Section 7.1.

 

7.3   Termination by Employee for Good Reason.  If Employee's employment is terminated by Employee for Good Reason during the Term (but not as of an Expiration Date), then, in addition to complying with
the requirements of Section 7.1, the Company shall, subject to the terms and conditions of this Agreement and conditioned upon the Company’s receipt of a written waiver, release and non-litigation agreement from Employee in form and substance reasonably satisfactory to the Consolidated Companies with respect to all liabilities of any Consolidated Company of any kind arising prior to and in connection with such termination (other than under Options and Section 7) (a “Release”), pay to or for
the benefit of Employee or, if applicable, Employee’s heirs or estate:

 

 

5

 

 

(a)    with respect to the Severance Period (as defined in Section 7.5 below), Employee’s base salary at a rate equal to Employee’s salary rate as of the date of termination, payable as follows: (i) all amounts that would otherwise be payable with respect to the six
months immediately following Employee’s “separation from service” (as defined in Treasury Regulation Section 1.409A-1(h)) from the Company (a “Separation from Service”) shall be accrued and paid within five business days following, but in no event prior to, the six-month anniversary of Employee’s Separation of Service or, if earlier, the date of Employee’s death; and (ii) all amounts payable with respect to portions of the Severance Period following the six-month anniversary
of Employee’s Separation of Service shall be paid in accordance with the Company’s customary pay schedule; and

 

(b)    Company health benefits coverage then in effect (with Company /Employee contributions remaining the same on a percentage basis as during the period immediately prior to termination) with respect to the Severance Period.

The foregoing payment structure is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and shall be interpreted consistently with that intent.

 

7.4   Termination by Company without Cause.  If Employee's employment is terminated by the Company without Cause during the Term (but not as of an Expiration Date), then, in addition to complying with the
requirements of Section 7.1, the Company shall, subject to the terms and conditions of this Agreement and conditioned upon the Company’s receipt of a Release, continue to pay, when due in accordance with the Company’s customary pay schedule,  to or for the benefit of Employee or, if applicable, his heirs or estate, subject to (A) and (B) below:

 

(a)    Employee’s base salary at a rate equal to Employee’s salary rate as of the date of termination with respect to the Severance Period;

 

(b)    Company health benefits coverage then in effect (with Company /Employee contributions remaining the same on a percentage basis as during the period immediately prior to termination) with respect to an eighteen-month period commencing on the first date of the Severance Period; and

 

(c)    a bonus, payable within 30 days of the Company’s receipt of a Release, equal to the product of (i) sixty percent (60%) of Employee’s annualized base salary as of the date on which the which termination of Employee’s services occurs, multiplied by (ii) a
fraction, the numerator of which is the number of days that have elapsed during the then-current calendar year and the denominator of which is 365.

 

 

6

 

 

Notwithstanding anything in this Section 7.4 to the contrary: (A) no base salary continuation or bonus amount otherwise payable to the Employee under this Section 7.4 shall be paid unless and until the Employee incurs a Separation from Service from the Company during the Severance Period (with any amounts deferred
as a result of this subsection 7.4(A) being payable promptly following such Separation from Service and as permitted by subsection 7.4(B)); and (B) any base salary and bonus amounts that are otherwise due or payable under this Section 7.4 during the six-month period following the Employee’s Separation from Service shall instead be deferred and paid to the Employee within five business days after, but in no instance prior to, the six-month anniversary of Employee’s Separation from Service (or, if earlier,
the date of Employee’s death) if and to the extent that such amounts (1) do not constitute “separation pay due to involuntary separation from service” (as defined in Treasury Regulation Section 1.409A-1(b)(9)(iii)); and (2) are subject to Code Section 409A.  All base salary continuation amounts owing to Employee with respect to portions of the Severance Period following the six-month anniversary of the Separation of Service shall be paid in accordance with the Company’s customary
pay schedule.  The foregoing restrictions on the payment of continuing base salary and bonus are intended to comply with the requirements of Section 409A of the Code and shall be interpreted consistently with that intent.

7.5   Severance Period.  Subject to Section 7.7, the “Severance Period” shall be the period beginning on the effective date of any termination of Employee’s
employment during the Term in a manner triggering a benefit under Section 7.3 or 7.4, as applicable, and ending on the 12-month anniversary of such termination date.  Notwithstanding the foregoing, if (a) Employee relocated was required to relocate from a location more than 50 miles from the Place of Employment in order to commence employment with the Consolidated Companies and Employee’s employment is subsequently terminated during the Term by Employee for Good Reason or by the Company without
Cause on or before the two-year anniversary of the Effective Date, or (b) Employee’ accepts a change in Employee’s place of employment (and relocates without terminating his or her Employment for Good Reason based upon such change) during the Term and then Employee’s employment is terminated during the Term by Employee for Good Reason or by the Company without Cause before the two-year anniversary of such change in Employee’s place of employment, then in case of either (a) or (b) the periods
referred to in the definition of Severance Period shall be changed from 12-months to 16-months.

 

7.6   Return of Company Property.   Upon the termination or end of the employment of Employee with the Consolidated Companies or at any time upon the request of
Parent, Employee shall provide to the Consolidated Companies all property belonging to any Consolidated Company, including, but not limited to, keys, card passes, credit cards, electronic equipment including computers and personal digital devices, cellular telephones, Consolidated Company automobiles, and all data and any Consolidated Company intellectual property whether located on Consolidated Company property or otherwise.

 

7.7   Breach of Protective Covenants.  Notwithstanding anything in this Section 7 to the contrary, Employee shall not be entitled to any payments or benefits under any
of Sections 7.3 or 7.4 of this Agreement with respect to any period (a) prior to Employee’s delivery to the Company of a Release if such Release is not executed within seven (7) days of Employee’s receipt of a form of Release, (b) during which Employee is in breach of Section 7.6 or any portion of Section 8 of this Agreement, (c) during which Employee is in breach of any  portion of the Proprietary Information Agreement (any of (a), (b) or (c), a “Covenant Breach”).  Upon
the Company’s determination that a Covenant Breach has occurred, it shall notify Employee of its belief that a Covenant Breach has occurred and may withhold, without penalty or interest, any payments or benefits otherwise due to Employee pursuant to any of Section 7.3 or 7.4 until the question of whether a Covenant Breach has occurred is definitely resolved without right to appeal or similar recourse (and if it is determined that the Company withheld the payments and benefits in error, the Company’s
sole obligation shall be prompt payment of all withheld payments and the cash value to the Company of any withheld benefits).

 

 

7

 

8.   Covenant Not to Compete

 

8.1   Covenant.  Employee hereby agrees that, while Employee is employed by any Consolidated Company and during a period of 12
months following the termination of Employee’s employment with all Consolidated Companies, Employee will not directly or indirectly compete (as defined in Section 8.2 below) with any the Consolidated Company or any affiliates anywhere in the United States.  It is the intention of Parent, the Company and Employee that this provision be interpreted to only prevent actual competitive harm to any Consolidated Company and not otherwise hinder
or restrict Employee in his efforts to find continued employment in Employee’s field of training and expertise.

 

8.2   Direct and Indirect Competition.   As used herein, the phrase “directly or indirectly compete” shall include owning, managing, operating or controlling,
or participating in the ownership, management, operation or control of, or being connected with or having any interest in, as a stockholder, director, officer, employee, agent, consultant, assistant, advisor, sole proprietor, partner or otherwise, any Competing Business (as defined below).  For purposes of this Agreement, a “Competing Business” shall be any business or enterprise other than any Consolidated Company that is engaged in the Nanomaterials Business (as defined below).  This
prohibition, however, shall not apply to ownership of less than five percent (5%) of the voting stock in companies whose stock is traded on a national securities exchange or in the over-the-counter market.  For purposes of this Agreement the “Nanomaterials Business” means the development, marketing, use, modification or exploitation of any technology or process for the production of pigments, metals, nanomaterials or other materials from titanium containing ores and other feed materials
for use in any application being explored, considered or developed by any Consolidated Company at any time while Employee is employed with any Consolidated Company, including, without limitation, the production of titanium dioxide pigments, the production of titanium metals, the production of pharmaceutical products or pharmaceutical delivery devices,  the production of lanthanum based phosphate and arsenic binding products, the production of battery materials, batteries or other energy storage devices
or the production of thermal spray materials.

 

8.3   Nonsolicitation.  Employee hereby agrees that, while he is employed by any Consolidated Company pursuant to this Agreement, and, during a period of 12
months following the termination of Employee’s employment with all Consolidated Companies, Employee will not, directly or indirectly, through an affiliate or otherwise, for his account or the account of any other person, (a) solicit business substantially similar to the Nanomaterials Business from any person or entity that at the time of termination is or was a customer of any Consolidated Company, whether or not Employee had personal contact with such person during and by reason of employment with a Consolidated
Company; (ii) in any manner induce or attempt to induce any employee of a Consolidated Company to terminate his or her employment with a Consolidated Company; or (iii) materially and adversely interfere with the relationship between a Consolidated Company and any employee, contractor, supplier, customer or shareholder of a Consolidated Company.

 

 

8

 

 

8.4   Enforceability.  If any of the provisions of this Section 8 is held unenforceable, the remaining provisions shall nevertheless remain enforceable, and the court
making such determination shall modify, among other things, the scope, duration, or geographic area of this Section to preserve the enforceability hereof to the maximum extent then permitted by law.  In addition, the enforceability of this Section is also subject to the injunctive and other equitable powers of a court as described in Section 11 below.

 

8.5   Jurisdiction.  For the sole purpose of enforcement of the Consolidated Companies’ rights under this Section 8, Parent, the Company and Employee intend to
and hereby confer jurisdiction to enforce the restrictions set forth in this Section 8 (the "Restrictions") upon the courts of any jurisdiction within the geographical scope of the Restrictions.  If the courts of any one or more of such jurisdictions hold the Restrictions unenforceable by reason of the breadth of such scope or otherwise, it is the intention of Parent, the Company and Employee that such determination not bar or in any way affect any Consolidated Company's rights to the relief provided
above in the courts of any other jurisdiction within the geographical scope of the Restrictions, as to breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being, for this purpose, severable into diverse and independent covenants.  In the event of any litigation between the parties under this Section 8, the court shall award reasonable attorneys fees to the prevailing party.

9.   Confidential Information, Invention Assignment, Etc.  Employee represents and covenants that Employee has signed and delivered to Parent (or will sign and deliver
upon request) an Employment, Confidential Information, Invention Assignment, Nonsolicitation and Arbitration Agreement (the “Proprietary Information Agreement”) in the form set forth in the Consolidated Companies’ Policy Manual.  Employee’s execution of such a Proprietary Information Agreement is a condition precedent to Employee’s eligibility for any rights and benefits under this Agreement.  The Proprietary Information Agreement and this Agreement shall be interpreted,
to the extent possible, as being mutually consistent with each other, supplementary and both fully enforceable; provided, however, in the event of an irreconcilable conflict between specific provisions of each of the two agreements, the specific provisions of this Agreement shall prevail.

 

10.   No Conflicts. Employee hereby represents and covenants that Employee’s performance of all the terms of this Agreement and his work as an employee of a Consolidated
Company does not and will not breach any oral or written agreement to which Employee is a party or by which Employee is bound.

 

11.   Equitable Remedies. Employee acknowledges and agrees that the breach or threatened breach by him of certain provisions of this Agreement, including without limitation
Sections 8 above, would cause irreparable harm to the Consolidated Company for which damages at law would be an inadequate remedy.  Accordingly, Employee hereby agrees that in any such instance Parent or the Company shall be entitled to seek (without prior mediation or arbitration) injunctive or other equitable relief in any state or federal court within or without the State of Nevada in addition to any other remedy to which it may be entitled.  Employee hereby submits to the jurisdiction
of any courts within the City of Reno in the State of Nevada and agrees not to assert such venue is inconvenient.

 

 

9

 

 

12.   Assignment. This Agreement is for the unique personal services of Employee and is not assignable or delegable in whole or in part by Employee without the consent of the Board
of Parent.  This Agreement may not be assigned or delegated in whole or in part by the Parent or the Company without the written consent of Employee; provided, however, this Agreement may be assigned by the Parent or the Company without Employee’s prior written consent if such assignment is made to an entity that is a Consolidated Company or is acquiring substantially all of the business or assets of any Consolidated Company, whether by merger, asset sale or otherwise.

 

13.   Waiver or Modification. Any waiver, modification, or amendment of any provision of this Agreement shall be effective only if in writing in a document that specifically refers
to this Agreement and such document is signed by the parties hereto.

 

14. Entire Agreement. This Agreement, together with the Proprietary Information Agreement and other agreements required under or included in the Consolidated Companies’ policies, constitute the full and complete understanding and agreement
of the parties hereto with respect to the subject matter covered herein and supersedes and terminates all prior oral or written understandings and agreements with respect thereto.

 

15.    Severability. If any provision of this Agreement is found to be unenforceable by a court of competent jurisdiction, the remaining provisions shall nevertheless remain
in full force and effect.

 

16.    Attorneys’ Fees.  Should any Company, Parent or Employee default in any of the covenants contained in this Agreement, or in the event a dispute shall
arise as to the meaning of any term of this Agreement, the defaulting or nonprevailing party shall pay all costs and expenses, including reasonable attorneys’ fees, that may arise or accrue from enforcing this Agreement, securing an interpretation of any provision of this Agreement, or in pursuing any remedy provided by applicable law whether such remedy is pursued or interpretation is sought by the filing of a lawsuit, an appeal, or otherwise.

 

17.    Confidentiality.  Each of the parties acknowledges that the common shares of  Parent are registered under the Securities Exchange Act of 1934, as
amended, and a result, Parent may be required to, and hereby has authorization to, file this Agreement or any amendment hereto with the Securities and Exchange Commission without requesting confidential treatment for any portion hereof.

 

 

10

 

 

18.                Notices.  Any notice required hereunder to be given by either party shall be in writing and shall be delivered personally or sent by certified
or registered mail, postage prepaid, or by private courier, with written verification of delivery, or by facsimile or other electronic transmission to the other party to the address or facsimile number set forth below or to such other address or facsimile number as either party may designate from time to time according to this provision.  A notice delivered personally or by facsimile or electronic transmission shall be effective upon receipt.  A notice delivered by mail or by private courier
shall be effective on the third day after the day of mailing:

 

	 	(a)	To Employee at:	____________________
	 	 	 	____________________
	 	 	 	____________________
	 	 	 	 
	 	(b)	To Parent and the Company at:	Altair Nanotechnologies Inc.
	 	 	 	
204 Edison Way

Reno, Nevada  89502

Facsimile No: (775) 856-1619

 

19.   Disputes; Governing Law; Arbitration.

 

(a)    Except as provided in Section 11 and Section 8.5, any dispute concerning the interpretation or construction of this Agreement or his employment or service with Company, shall be resolved by confidential mediation or binding arbitration
in Reno, Nevada.  The parties shall first attempt mediation with a neutral mediator agreed upon by the parties.  If mediation is unsuccessful or if the parties are unable to agree upon a mediator within thirty (30) days of a request for mediation by any party, the dispute shall be submitted to arbitration pursuant to the procedures of the American Arbitration Association (“AAA”) or other procedures agreed to by the parties.  All arbitration proceedings shall be conducted
by a neutral arbitrator mutually agreed upon by the parties from a list provided by AAA.  The decision of the arbitrator shall be final and binding on all parties.  The costs of mediation and arbitration shall be borne equally by the parties.

 

(b)    This Agreement shall be construed in accordance with and governed by the statutes and common law of the State of Nevada (other than any provisions that would cause the provisions of any other laws to apply).  To the extent this
Agreement expressly permits any dispute to be resolved other than through arbitration or mediation, except as set forth in Section 8.5, the exclusive venue for any such action shall be the state and federal courts located in Reno, Nevada, and the parties each hereby submit to the jurisdiction of such courts for purposes of this Agreement.

20.   Counterparts; Facsimile.  This Agreement may be executed in multiple counterparts, all of which taken together shall form a single Agreement.  A facsimile
copy of this Agreement or any counterpart thereto shall be valid as an original.

 

[intentionally left blank; signature page follows]

 

 

11

 

IN WITNESS WHEREOF, Employee has signed this Employment Agreement (Level 12 Officer) personally and the Company and Parent have caused this Agreement to be executed by their duly authorized representatives.

 

 

	 	
COMPANY:

 

 

ALTAIRNANO, INC.

a Nevada corporation
	 
	 	 	 	 
	
 
	
By: 
	/s/ Terry Copeland	 
	 	 	Terry Copeland, Chief Executive Officer	 

 

 

	 	
PARENT:

 

 

ALTAIR NANOTECHNOLOGIES INC.

a Canadian corporation
	 
	 	 	 	 
	
 
	
By: 
	/s/ Terry Copeland	 
	 	 	Terry Copeland, Chief Executive Officer	 

 

 

	 	EMPLOYEE:	 
	 	 	 	 
	
 
	
By: 
	/s/ Bruce Sabacky	 
	 	 	Bruce Sabacky, an individual	 

 

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}]]