Document:

Unassociated Document

    

    DATED
      MAY 8,
      2008

    

    

    

    

    CREDIT
      SUISSE SECURITIES (EUROPE) LIMITED

    

    AND

    

    COMPOSITE
      TECHNOLOGY CORPORATION 

    

     

     

    
 

    
      
        

      

    

     

    CALL
      OPTION DEED

     

    
      

    

     

     

     

    
 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    CALL
      OPTION DEED

    

    THIS AGREEMENT
      is made
      on May 8, 2008 (the “Effective Date”).

    

    BETWEEN:

    

    
      	
              (1)

            	
              CREDIT
                SUISSE SECURITIES (EUROPE) LIMITED,
                a
                company incorporated under the laws of the United Kingdom whose registered
                office is at 1 Cabot Square, London E14 4QJ ("CS");
                and

            

    

    

    
      	
              (2)

            	
              COMPOSITE
                TECHNOLOGY CORPORATION,
                a
                corporation incorporated under the laws of the state of Nevada whose
                registered office is at 2026 McGaw Ave, Irvine, California 92614
                ("CTC").

            

    

    

    NOW
      IT IS HEREBY AGREED AS FOLLOWS:

    

    
      	
              1.

            	
              Interpretation
                and Construction

            

    

    

    
      	 	
              (a)

            	
              In
                this Deed, unless the context otherwise requires, the following
                expressions shall have the following
                meanings:

            

    

    

    Business
      Day
      means a
      day in London on which banks are open for business (excluding Saturday, Sunday
      and public holidays);

    

    Call
      Option
      has the
      meaning set out in Clause 2;

    

    Delivery
      Date
      means
      the day that is five Business Days following the Exercise Date;

    

    Exercise
      Date
      means
      the Business Day on which the Call Option is exercised;

    

    Exercise
      Period
      means
      any Business Day from and including the date of this Deed to and including
      the
      Expiration Date;

    

    Expiration
      Date means
      June 30, 2008;

    

    Issue
      Price
      means a
      price of US$0.88 per Share;

    

    Shares
      means
      common stock of CTC, par value US$0.001 per share; and

    

    Subscription Date
      means
      the date on which the subscription agreement in the agreed form, a copy of
      which
      is appended to this Deed (the “Subscription Agreement”), is executed by CS
      pursuant to which CS agrees to subscribe for and CTC agrees to issue 13,333,333
      Shares in consideration for the payment of US$10 million to CTC.

    

    
      	 	
              (b)

            	
              In
                this Agreement, references to times are to London times.
                

            

    

     

    
      	
              2.

            	
              Call
                Option

            

    

     

    
      	 	
              (a)

            	
              CS
                agrees to subscribe for and CTC agrees to issue 13,333,333 Shares
                in
                consideration for the payment of US$10 million by CS to CTC on or
                before
                the Effective Date. Subject to the full execution of the Subscription
                Agreement and CTC’s receipt of such US$10 million, CTC agrees to grant CS
                an option (the "Call Option") to subscribe for up to 45,454,544 Shares
                at
                the Issue Price on the terms of this Clause 2. 

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              The
                Call Option is exercisable in cash in whole or in part or a series
                of
                parts (no less than 11,363,636 Shares in each instance and not to
                exceed
                in aggregate 45,454,544 million Shares) by notice in writing from
                CS to
                CTC given at any time during the Exercise Period, setting out the
                number
                of Shares which CS wishes to subscribe for. If the notice of exercise
                is
                delivered after 5.00 pm on a Business Day, then that notice will
                be deemed
                delivered on the next following Business Day, if any, during the
                Exercise
                Period. 

            

    

    

    
      	 	
              (c)

            	
              On
                exercise of the Call Option, CTC shall issue, and CS shall subscribe
                for,
                the relevant number of Shares notified to CTC pursuant to Clause
                2(b).
                On or before the Delivery Date against payment of the Issue Price
                by CS in
                cleared funds into the account specified by CTC on a delivery versus
                payment basis, CTC shall cause to be delivered to CS valid share
                certificates or other documents of title in respect of the Shares
                and
                shall procure that CS' name is entered on the share register of CTC
                in
                respect of the Shares so issued.

            

    

    

    
      	 	
              (d)

            	
              On
                exercise of the Call Option, CTC shall issue the Shares free from
                all
                encumbrances, charges, pledges or mortgages and with all rights then
                or
                subsequently attaching to them. 

            

    

    

    
      	 	
              (e)

            	
              Within
                60 days of full exercise of the Call Option, CS shall have the right
                to
                designate a person that CTC agrees will be appointed to its Board
                of
                Directors, subject to its Board of Directors approval. CS agrees
                that the
                designee shall satisfy the criteria of an “independent director” as
                defined by NASDAQ Marketplace Rule
                4350.

            

    

    

    
      	 	
              (f)

            	
              For
                the avoidance of doubt, CS shall be under no obligation to exercise
                the
                Call Option or to subscribe for any Shares other than the 13,333,333
                Shares pursuant to the first sentence of Clause 2(a), and CTC shall
                have
                no right to require CS to exercise the Call Option or otherwise subscribe
                for any Shares other than the 13,333,333 Shares pursuant to the first
                sentence of Clause 2(a). 

            

    

    

    
      	
              3.

            	
              Due
                diligence

            

    

    

    
      	 	
              (a)

            	
              During
                the Exercise Period, CS shall, subject to Clause 3(b), be granted
                access
                to the properties, senior management, records, documents and papers
                of CTC
                ("CTC Information") to the extent necessary to perform sufficient
                due
                diligence on CTC such that CS may to the extent reasonably practicable,
                make a fully informed decision regarding whether or not to exercise
                the
                Call Option. CS agrees to enter into a confidentiality agreement
                with CTC
                with respect to non-public information concerning CTC.
                

            

    

    

    
      	 	
              (b)

            	
              CTC
                agrees that any CTC Information it provides to CS shall (i) be such
                information as is already in the public domain prior to the Effective
                Date
                or (ii) be information that CTC can and does release into the public
                domain following the Effective Date and in any event by no later
                than one
                (1) year following the Effective Date or (iii) is non-public information
                which is not material to the business of CTC.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              4.

            	
              Time
                of the essence

            

    

    

    Any
      time,
      date or period referred to in any provision of this Deed may be extended by
      mutual agreement between the parties but as regards any time, date or period
      originally fixed or any time, date or period so extended, time shall be of
      the
      essence.

    

    
      	
              5.

            	
              Interest

            

    

    

    If
      CS or
      CTC defaults in the payment when due of any sum payable under this Deed (whether
      determined by agreement or pursuant to an order of a court or otherwise) the
      liability of CS or CTC (as the case may be) shall be increased to include
      interest on such sum from the date when such payment is due until the date
      of
      actual payment (as well after as before judgment) at a rate per annum of 2
      per
      cent. above the base rate from time to time of Barclays Bank plc. Such interest
      shall accrue from day to day. 

    

    
      	
              6.

            	
              Costs

            

    

    

    Each
      party shall bear all legal and other costs or expenses incurred by it in
      connection with the preparation of this Deed or the issue and subscription
      for
      the Shares.

    

    
      	
              7.

            	
              Confidentiality

            

    

    

    CS
      and
      CTC agree to keep confidential the terms of this Deed and agree that no public
      announcement or communication relating to the matters the subject of this Deed
      which contains a reference to CS and CTC or their affiliates shall be issued
      or
      dispatched without prior approval of the other party; provided that the
      foregoing provisions shall not apply to any disclosure, announcement or
      communication required by laws, regulations, any court of competent jurisdiction
      or regulatory body lawfully entitled to require such disclosure, including
      without limitation the United States Securities and Exchange Commission. The
      parties will agree to the content of any press releases consistent with the
      above confidentiality requirements. 

    

    
      	
              8.

            	
              Notices

            

    

    

    
      	 	
              (a)

            	
              Any
                notice served hereunder shall be in writing and in the English language
                and shall be sufficiently served
                if:

            

    

    

    
      	 	
              (i)

            	
              delivered
                by hand or sent by pre-paid registered mail or courier addressed
                to the
                other party concerned at the address of the relevant party as set
                out in
                this Deed or to such other address as any party may from time to
                time
                notify to the other party for this purpose, and any such notice shall
                be
                deemed to be received at the time of delivery (if delivered by hand
                or
                courier) or at the expiry of three clear days after the day of posting
                (if
                sent by pre-paid registered mail or courier);
                or

            

    

    

    
      	 	
              (ii)

            	
              sent
                by facsimile transmission to the other party concerned at the facsimile
                number of the relevant party as set out in this Deed or to such other
                facsimile number as any party may from time to time notify to the
                other
                party for this purpose, and a notice so sent by facsimile transmission
                during normal business hours shall be deemed to be received upon
                receipt
                of the appropriate confirmation at the end of such
                transmission.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              For
                the purpose of giving notice the addresses and facsimile numbers
                of the
                respective parties are as follows:

            

    

    

    In
      the
      case of CTC to it at:

    

    Address:
      2026
      McGaw Ave, Irvine, California 92614

    

    Facsimile
      number:
      (949)
      660-1533

    

    marked
      for the attention of Benton H Wilcoxon, Chief Executive Officer.

    

    In
      the
      case of CS to it at:

    

    Address:
      1
      Cabot
      Square, London E14 4QJ

    

    Facsimile
      number:
      +44
      (0)20 7883 6479

    

    marked
      for the attention of Roger Reynolds/Dominic Nash.

    

    
      	
              9.

            	
              Assignment

            

    

    

    The
      benefit of this Deed may not be assigned by either party hereto without the
      consent of the other party.

    

    
      	
              10.

            	
              Miscellaneous

            

    

    

    This
      Deed
      may be executed in any number of counterparts and by the parties hereto on
      separate counterparts, each of which when so executed and delivered shall be
      an
      original, but all the counterparts shall together constitute one and the same
      instrument.

    

    
      	 	
              (a)

            	
              No
                failure on the part of any party to exercise, and no delay on its
                part in
                exercising, any right or remedy under this Deed will operate as a
                waiver
                thereof nor will any single or partial exercise of any right or remedy
                preclude any other or further exercise thereof or the exercise of
                any
                other right or remedy. The rights and remedies provided in this Deed
                are
                cumulative and not exclusive of any rights or remedies provided by
                law.

            

    

    

    
      	 	
              (b)

            	
              Any
                variation of this Deed is only valid if in writing and signed by
                or on
                behalf of each party.

            

    

    

    
      	
              11.

            	
              Third
                Parties

            

    

    

    No
      term
      of this Deed is enforceable under the Contracts (Rights of Third Parties) Act
      1999 by a person who is not a party to this Deed.

    

    
      	
              12.

            	
              Governing
                Law and Jurisdiction

            

    

    

    This
      Deed
      shall be governed by, and construed in accordance with, the laws of England
      and
      the parties hereby agree to submit to the non-exclusive jurisdiction of the
      English courts.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS
      whereof
      this document has been executed as a Deed the day and year first before
      written.

    

     

    
      	
              Signed
                by CREDIT
                SUISSE SECURITIES 

              (EUROPE)
                LIMITED acting
                by 

               

              ____________________
                a director, 

               

               

              in
                the presence of:

              Name:
                ______________________

              Address:
                __________________________

              _________________________________

              Occupation:
                ____________________

            	
               

               

               

              ................................
                

              (Director)

               

               

              ..........................................

              (Witness)

            
	
               

               

              Signed
                by COMPOSITE
                TECHNOLOGY 

              CORPORATION
                acting by

               

              Benton
                H Wilcoxon 

              Chief
                Executive Officer

            	
               

               

               

               

               

              ................................
                

              (Chief
                Executive Officer)

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
 

    APPENDIX
      

    

    FINAL
      FORM SUBSCRIPTION AGREEMENT 

    

    
      
        
        

      

      
        7Unassociated Document

    SUBSCRIPTION
      AGREEMENT

    

    

    SUBSCRIPTION
      AGREEMENT
      (“Subscription Agreement”) made as of this ___ day of May 2008, by and between
      Composite Technology Corporation, a Nevada corporation (the “Company”), and
      Credit Suisse Securities (Europe) Limited (the “Subscriber”).

    

    WHEREAS,
      the
      Company intends to issue, in a private transaction (the “Offering”) pursuant to
      Regulation D promulgated under the Securities Act of 1933, as amended (the
      “Act”), Thirteen Million Three Hundred Thirty-Three Thousand Three Hundred
      Thirty Three (13,333,333) shares of the Company’s common stock, par value $0.001
      per share (“Shares”), on the terms and conditions hereinafter set forth, and the
      Subscriber desires to acquire that number of Shares.

    

    NOW,
      THEREFORE,
      and in
      consideration of the premises and the mutual covenants hereinafter set forth
      and
      for other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the parties hereto, intending legally to be bound,
      do
      hereby agree as follows:

    

    
      	
              1.

            	
              Subscription
                Procedure

            

    

    

    
      	
              1.1

            	
              Subject
                to the terms and conditions hereinafter set forth, the Subscriber
                hereby
                subscribes for and agrees to purchase from the Company 13,333,333
                Shares
                at a price of $0.75 per Share (the “Purchase Price”). The Company agrees
                to sell such Shares to the Subscriber for the Purchase
                Price.

            

    

    

    
      	
              1.2

            	
              The
                Purchase Price shall be paid over to the Company at the closing of
                the
                purchase of the Shares in the Offering (the “Closing”) to occur on the
                Closing Date. The “Closing Date” shall be 9 May 2008.
                

            

    

    

    
      	
              1.3

            	
              The
                certificates for the Common Stock bearing the name of the Subscriber
                will
                be delivered by the Company on the Closing Date. The Subscriber hereby
                authorizes and directs the Company to deliver the securities to be
                issued
                to such Subscriber pursuant to this Subscription Agreement in paper
                form
                to the address indicated on the signature page or in electronic form
                to a
                DTC account designated in writing by the
                Subscriber.

            

    

    

    
      	
              1.4

            	
              The
                Purchase Price for the Shares purchased hereunder shall be paid by
                wire
                transfer to an escrow account held by Richardson & Patel LLP (“Escrow
                Agent”), pursuant to an escrow agreement by and among the Company, the
                Subscriber and Escrow Agent. Escrow Agent will release the Purchase
                Price
                to the Company upon Subscriber’s receipt of the 13,333,333 Shares pursuant
                to the terms of the Escrow
                Agreement.

            

    

    

    
      	
              2.

            	
              Representations
                and Covenants of
                Subscriber

            

    

    

    
      	
              2.1

            	
              The
                Subscriber recognizes that the purchase of Shares involves a high
                degree
                of risk in that (i) the Company will need additional capital but
                has no
                assurance of obtaining such additional necessary capital; (ii) an
                investment in the Company is highly speculative and only investors
                who can
                afford the loss of their entire investment should consider investing
                in
                the Company and the Shares; (iii) an investor may not be able to
                liquidate
                its investment; (iv) transferability of the Shares is extremely limited;
                and (v) an investor could sustain the loss of its entire
                investment.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              2.2

            	
              The
                Subscriber represents that it is an “accredited investor” as such term is
                defined in Rule 501 of Regulation D promulgated under the Act, and
                that it
                or it is able to bear the economic risk of an investment in the Shares.
                

            

    

    

    
      	
              2.3

            	
              The
                Subscriber acknowledges that it has prior investment experience,
                including
                investment in non-listed and non-registered securities, or it has
                employed
                the services of an investment advisor, attorney or accountant to
                read all
                of the documents furnished or made available by the Company to evaluate
                the merits and risks of such an investment on its behalf, and that
                it
                recognizes the highly speculative nature of this
                investment.

            

    

    

    
      	
              2.4

            	
              The
                Subscriber hereby represents that it has been furnished or given
                access by
                the Company during the course of this Offering with or to all information
                regarding the Company and its respective financial conditions and
                results
                of operations which it had requested; that all documents which could
                be
                reasonably provided have been made available for its inspection and
                review; that it has been afforded the opportunity to ask questions
                of and
                receive answers from duly authorized representatives of the Company
                concerning the terms and conditions of the Offering, and any additional
                information which it had requested.

            

    

    

    
      	
              2.5

            	
              The
                Subscriber acknowledges that this Offering of Shares may involve
                tax
                consequences. The Subscriber acknowledges that it must retain its
                own
                professional advisors to evaluate the tax and other consequences
                of an
                investment in the Shares.

            

    

    

    
      	
              2.6

            	
              The
                Subscriber acknowledges that this Offering of Shares has not been
                reviewed
                or approved by the United States Securities and Exchange Commission
                (“SEC”) because the Offering is intended to be a nonpublic offering
                pursuant to Section 4(2) of the Act. The Subscriber represents that
                the
                Shares are being purchased for its own account, for investment and
                not for
                distribution or resale to others. The Subscriber agrees that it will
                not
                sell or otherwise transfer the Shares unless it is registered under
                the
                Act or unless an exemption from such registration is available and,
                upon
                the Company’s request, the Company receives an opinion of counsel
                reasonably satisfactory to the Company confirming that an exemption
                from
                such registration is available for such sale or
                transfer.

            

    

    

    
      	
              2.7

            	
              The
                Subscriber understands that the Shares have not been registered under
                the
                Act by reason of a claimed exemption under the provisions of the
                Act which
                depends, in part, upon its investment intention. The Subscriber realizes
                that, in the view of the SEC, a purchase now with an intent to distribute
                would represent a purchase with an intent inconsistent with its
                representation to the Company, and the SEC might regard such a
                distribution as a deferred sale to which such exemption is not
                available.

            

    

    

    
      	
              2.8

            	
              The
                Subscriber consents to the placement of one or more legends on any
                certificate or other document evidencing its Shares stating that
                it has
                not been registered under the Act and setting forth or referring
                to the
                restrictions on transferability and sale
                thereof.

            

    

    

    
      	
              2.9

            	
              The
                Subscriber hereby understands and acknowledges that no representations
                or
                warranties have been made to the Subscriber by the Company or its
                agents,
                employees or affiliates with respect to any information made available
                to
                the Subscriber by the Company or its agents. The Company is not aware
                of
                any information (including, without limitation, any information regarding
                any adverse change or material prospective adverse change in the
                condition
                of, or any actual, pending or threatened litigation, arbitration
                or
                similar proceeding
                involving, the Company) regarding the Company or any of its securities
                that is not described in the Company’s most recent annual report or
                subsequent public information
                releases.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              2.10

            	
              The
                Subscriber understands and acknowledges that (i) the Shares are being
                offered and sold to Subscriber without registration under the Act
                in a
                private placement that is exempt from the registration provisions
                of the
                Act under Section 4(2) of the Act and (ii) the availability of such
                exemption depends in part on, and that the Company will rely upon
                the
                accuracy and truthfulness of, the foregoing representations, and
                such
                Subscriber hereby consents to such
                reliance.

            

    

    

    
      	
              2.11

            	
              U.S.
                Patriot Act Related Representations. Subscriber represents, warrants
                and
                covenants to the Company that Subscriber:

            

    

    

    
      	 	
              (a)

            	 

    

    

    
      	 	
              (i)

            	
              is
                purchasing the Shares for Subscriber’s own account, own risk and own
                beneficial interest, 

            

    

    

    
      	 	
              (ii)

            	
              is
                not acting as an agent, representative, intermediary, nominee or
                in a
                similar capacity for any other person or entity, nominee account
                or
                beneficial owner, whether a natural person or entity (each such natural
                person or entity, an “Underlying Beneficial Owner”) and no Underlying
                Beneficial Owner will have a beneficial or economic interest in the
                Shares
                being purchased by Subscriber (whether directly or indirectly, including
                without limitation, through any option, swap, forward or any other
                hedging
                or derivative transaction), 

            

    

    

    
      	 	
              (iii)

            	
              if
                it is an entity, including, without limitation, a fund-of-funds,
                trust,
                pension plan or any other entity that is not a natural person (each,
                an
                “Entity”), has carried out thorough due diligence as to and established
                the identities of such Entity’s investors, directors, officers, trustees,
                beneficiaries and grantors (to the extent applicable, each a “Related
                Person” of such Entity), holds the evidence of such identities, will
                maintain all such evidence for at least five years from the date
                of
                Subscriber’s resale or other disposition of all the Common Stock
                underlying the Shares, will request such additional information as
                the
                Company may require to verify such identities as may be required
                by
                applicable law, and will make such information available to the Company
                upon its request, and (iv) does not have the intention or obligation
                to
                sell, pledge, distribute, assign or transfer all or a portion of
                the
                Common Stock underlying the Shares to any Underlying Beneficial Owner
                or
                any other person; OR

            

    

    

    
      	 	
              (b)

            	 

    

    

    
      	 	
              (i)

            	
              is
                subscribing for the Shares as a record owner and will not have a
                beneficial ownership interest in the Shares,

            

    

    

    
      	 	
              (ii)

            	
              is
                acting as an agent, representative, intermediary, nominee or in a
                similar
                capacity for one or more Underlying Beneficial Owners, and understands
                and
                acknowledges that the representations, warranties and agreements
                made in
                this Agreement are made by Subscriber with respect to both Subscriber
                and
                the Underlying Beneficial Owner(s),

            

    

    

    
      	 	
              (iii)

            	
              has
                all requisite power and authority from the Underlying Beneficial
                Owner(s)
                to execute and perform the obligations under this Agreement,
                

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	 	
              (iv)

            	
              has
                carried out thorough due diligence as to and established the identities
                of
                all Underlying Beneficial Owners (and, if an Underlying Beneficial
                Owner
                is not a natural person, the identities of such Underlying Beneficial
                Owner’s Related Persons (to the extent applicable)), holds the evidence
                of
                such identities, will maintain all such evidence for at least five
                years
                from the date of Subscriber’s resale or other disposition of all the
                Common Stock, and will make such information available to the Company
                upon
                its request and 

            

    

    

    
      	 	
              (v)

            	
              does
                not have the intention or obligation to sell, pledge, distribute,
                assign
                or transfer all or a portion of the Common Stock to any person other
                than
                the Underlying Beneficial Owner(s).

            

    

    

    
      	 	
              (c)

            	
              Subscriber
                hereby represents and warrants that the proposed investment in the
                Company
                that is being made on its own behalf or, if applicable, on behalf
                of any
                Underlying Beneficial Owners does not directly or indirectly contravene
                United States federal, state, local or international laws or regulations
                applicable to Subscriber, including anti-money laundering laws (a
                “Prohibited Investment”).

            

    

    

    
      	 	
              (d)

            	
              Federal
                regulations and Executive Orders administered by the U.S. Treasury
                Department’s Office of Foreign Assets Control (“OFAC”) prohibit, among
                other things, the engagement in transactions with, and the provision
                of
                services to, certain foreign countries, territories, entities and
                individuals. The lists of OFAC prohibited countries, territories,
                persons
                and entities can be found on the OFAC website at www.treas.gov/ofac.
                Subscriber hereby represents and warrants that neither Subscriber
                nor, if
                applicable, any Underlying Beneficial Owner or Related Person, is
                a
                country, territory, person or entity named on an OFAC list, nor is
                Subscriber nor, if applicable, any Underlying Beneficial Owner or
                Related
                Person, a natural person or entity with whom dealings are prohibited
                under
                any OFAC regulations. 

            

    

    

    
      	 	
              (e)

            	
              Subscriber
                represents and warrants that neither Subscriber nor, if applicable,
                any
                Underlying Beneficial Owner or Related Person, is a senior foreign
                political figure, or any immediate family member or close associate
                of a
                senior foreign political figure within the meaning of, and applicable
                guidance issued by the Department of the Treasury concerning, the
                U.S.
                Bank Secrecy Act (31 U.S.C. §5311 et seq.), as amended, and any
                regulations promulgated thereunder.

            

    

    

    
      	 	
              (f)

            	
              Subscriber
                agrees promptly to notify the Company should Subscriber become aware
                of
                any change in the information set forth in paragraphs (a) through
                (e).
                

            

    

    

    
      	 	
              (g)

            	 

    

    

    
      	 	
              (h)

            	
              Subscriber
                understands and agrees that, notwithstanding anything to the contrary
                contained in any document, if, following Subscriber’s investment in the
                Company, it is discovered that the investment is or has become a
                Prohibited Investment, such investment may immediately be redeemed
                by the
                Company or otherwise be subject to the remedies required by
                law.

            

    

    

    
      	 	
              (i)

            	
              Upon
                the written request from the Company, Subscriber agrees to provide
                all
                information to the Company to enable the Company to comply with all
                applicable anti-money laundering statutes, rules, regulations and
                policies, including any policies applicable to a portfolio investment
                held
                or proposed to be held by the Company. Subscriber understands and
                agrees
                that the Company may release confidential information about Subscriber
                and, if applicable, any Underlying Beneficial Owner(s) or Related
                Person(s) to any person, if the Company, in its sole discretion,
                determines that such disclosure is necessary to comply with applicable
                statutes, rules, regulations and
                policies.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              Representations
                and Warranties by the
                Company

            

    

    

    Except
      as
      set forth in the reports filed by the Company pursuant to the U.S. Securities
      Exchange Act of 1934, as amended (the “SEC Reports”), the Company represents and
      warrants to the Subscriber that: 

    

    
      	
              3.1

            	
              Organization
                and Authority. The Company (i) is a corporation duly organized, validly
                existing and in good standing under the laws of the jurisdiction
                of its
                incorporation or formation, (ii) has all requisite corporate power
                and
                authority to own, lease and operate its properties and to carry on
                its
                business as presently conducted, and (iii) has all requisite corporate
                power and authority to execute, deliver and perform their obligations
                under this Subscription Agreement and any other document being executed
                and delivered by it in connection herewith, and to consummate the
                transactions contemplated hereby and
                thereby.

            

    

    

    
      	
              3.2

            	
              Qualifications.
                The Company is duly qualified to do business as a foreign corporation
                or
                other entity and is in good standing in all jurisdictions where such
                qualification is necessary and where failure so to qualify could
                have a
                material adverse effect on the business, properties, operations,
                condition
                (financial or other), results of operations or prospects of the Company,
                taken as a whole.

            

    

    

    
      	
              3.3

            	
              Capitalization
                of the Company. The capitalization of the Company as of the date
                of this
                Agreement, is as set forth in Schedule 3.3. The Company has not issued
                any
                capital stock since such date other than pursuant to the conversion
                or
                exercise of outstanding common stock equivalents. No person has any
                right
                of first refusal, preemptive right, right of participation, or any
                similar
                right to participate in the transactions contemplated by this Agreement.
                Except as a result of the purchase and sale of the Shares or as disclosed
                in the SEC Reports, there are no outstanding options, warrants, script
                rights to subscribe to, calls or commitments of any character whatsoever
                relating to, or securities, rights or obligations convertible into
                or
                exchangeable for, or giving any person any right to subscribe for
                or
                acquire from the Company, any shares of Common Stock, or contracts,
                commitments, understandings or arrangements by which the Company
                or any
                subsidiary is or may become bound to issue additional shares of Common
                Stock, or securities or rights convertible or exchangeable into shares
                of
                Common Stock. The issuance and sale of the Shares will not obligate
                the
                Company to issue shares of Common Stock or other securities to any
                person
                (other than the Subscriber) and will not result in a right of any
                holder
                of Company securities to adjust the exercise, conversion, exchange
                or
                reset price under such securities. The outstanding shares of capital
                stock
                of the Company have been duly authorized and validly issued and are
                fully
                paid and nonassessable. None of the outstanding shares of Common
                Stock or
                options, warrants, or rights or other securities entitling the holders
                to
                acquire Common Stock has been issued in violation of the preemptive
                rights
                of any security holder of the Company. The Shares have been duly
                authorized, and when issued and paid for in accordance with this
                Subscription Agreement will be valid obligations of the Company.
                The
                Common Stock is eligible for quotation on the OTC Bulletin Board,
                the
                Company and the Common Stock meet the criteria for continued quotation
                and
                trading on the OTC Bulletin Board, and no suspension of trading in
                the
                Common Stock is in effect.

            

    

    

    
      	
              3.4

            	
              Corporate
                Authorization. This Subscription Agreement, assuming due execution
                and
                delivery by the Subscriber, when executed and delivered by the Company,
                will be, a valid and binding obligation of the Company enforceable
                in
                accordance with its terms, except as the enforceability hereof and
                thereof
                may be limited by bankruptcy, insolvency, reorganization, moratorium
                or
                other similar laws now or hereafter in effect relating to or affecting
                creditors’ rights generally and general principles of equity, regardless
                of whether enforcement is considered in a proceeding in equity or
                at
                law.

            

    

    

    
      	
              3.5

            	
              Non-Contravention.
                The execution and delivery of this Subscription Agreement by the
                Company
                and the issuance of the Shares do not and will not, with or without
                the
                giving of notice or the lapse of time, or both, (i) result in any
                violation of any provision of the articles of incorporation or by-laws
                or
                similar instruments of the Company or its subsidiaries, (ii) conflict
                with
                or result in a breach by the Company or its respective subsidiaries
                of any
                of the terms or provisions of, or constitute a default under, or
                result in
                the modification of, or result in the creation or imposition of any
                lien,
                security interest, charge or encumbrance upon any of the properties
                or
                assets of the Company, or (iii) violate or contravene any applicable
                law,
                rule or regulation or any applicable decree, judgment or order of
                any
                court, United States federal or state regulatory body, administrative
                agency or other governmental body having jurisdiction over the
                Company.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              4.

            	
              Miscellaneous

            

    

    

    
      	
              4.1

            	
              Any
                notice or other communication given hereunder shall be deemed sufficient
                if in writing and sent by registered or certified mail, return receipt
                requested, addressed to the Company,
                at:

            

    

    

    Composite
      Technology Corporation 

    

    2026
      McGaw Avenue

    

    Irvine,
      California 92614

    

    Attention:
      Chief Executive Officer 

    

    Facsimile:
      (949) 428-8515

    

    with
      a
      copy to (which copy shall not be deemed to provide notice):

    

    RICHARDSON
      & PATEL LLP

    

    10900
      Wilshire Boulevard, Suite 500

    

    Los
      Angeles, California 90024

    

    Attention:
      Ryan S. Hong, Esq.

    

    and
      to
      the Subscriber at its address indicated on the signature page of this
      Subscription Agreement.

    

    Notices
      shall be deemed to have been given three (3) business days after the date of
      mailing, except notices of change of address, which shall be deemed to have
      been
      given when received. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              4.2

            	
              This
                Subscription Agreement may be amended through a written instrument
                signed
                by the Subscriber and the Company. 

            

    

    

    
      	
              4.3

            	
              This
                Subscription Agreement shall be binding upon and inure to the benefit
                of
                the parties hereto and to their respective heirs, legal representatives,
                successors and assigns. This Subscription Agreement sets forth the
                entire
                agreement and understanding between the parties as to the subject
                matter
                hereof and merges and supersedes all prior discussions, agreements
                and
                understandings of any and every nature among
                them.

            

    

    

    
      	
              4.4

            	
              Notwithstanding
                the place where this Subscription Agreement may be executed by any
                of the
                parties hereto, the parties expressly agree that all the terms and
                provisions hereof shall be construed in accordance with and governed
                by
                the laws of the State of California.

            

    

    

    
      	
              4.5

            	
              This
                Subscription Agreement may be executed in counterparts. Upon the
                execution
                and delivery of this Subscription Agreement by the Subscriber, this
                Subscription Agreement shall become a binding obligation of the Subscriber
                with respect to the purchase of Shares as herein
                provided.

            

    

    

    
      	
              4.6

            	
              The
                holding of any provision of this Subscription Agreement to be invalid
                or
                unenforceable by a court of competent jurisdiction shall not affect
                any
                other provision of this Subscription Agreement, which shall remain
                in full
                force and effect.

            

    

    

    
      	
              4.7

            	
              It
                is agreed that a waiver by either party of a breach of any provision
                of
                this Subscription Agreement shall not operate, or be construed, as
                a
                waiver of any subsequent breach by that same
                party.

            

    

    

    
      	
              4.8

            	
              The
                parties agree to execute and deliver all such further documents,
                agreements and instruments and take such other and further action
                as may
                be necessary or appropriate to carry out the purposes and intent
                of this
                Subscription Agreement.

            

    

    

    
      	
              4.9

            	
              The
                Company agrees not to disclose the names, addresses or any other
                information about the Subscribers, except as required by law, provided
                that the Company may provide information relating to the Subscriber
                as
                required in any registration statement under the Act that may be
                filed by
                the Company pursuant to the requirements of this Subscription Agreement.
                

            

    

    

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Subscription Agreement as of
      the
      day and year first written above.

     

    

      
        	
                SUBSCRIBER
                  

              	 	
                Address

              
	
                Name
                  of Subscriber 

              	 	     

	
                CREDIT
                  SUISSE SECURITIES 

              	 	     

	
                (EUROPE)
                  LIMITED

              	 	  

	 	 	 	
                Facsimile: 
                  

              	   

	     
	 	 	 
	
                Signature
                  of Subscriber or Authorised 

                Person
                  on behalf of Subscriber 

              	 	 	 
	 	 	 	 	 
	       
	 	 	 
	
                Name
                  and Title of Authorised Person

              	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                COMPANY
                  

              	 	 	 
	
                COMPOSITE
                  TECHNOLOGY CORPORATION 

              	 	 	 
	 	 	 	 	 
	
                By:

              	    
	 	 	 
	 	
                Benton
                  H Wilcoxon 

                 

                Chief
                  Executive Officer 

              	 	 	 
	 	 	 	 	 
	
                Date: 
                  

              	
                      
                  

              	 	 	 

      

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Schedule
      3.3

     

    Capitalization

     

    The
      authorized capital stock of the Company consists of 600,000,000 shares of Common
      Stock, $0.001 par value per share, of which 226,552,777 shares are issued and
      outstanding and 5,000,000 shares of preferred stock, $0.001 par value per share,
      of which none are issued and outstanding and none are reserved for
      issuance.

    

    
      
         

      

      
        9

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