Document:

EXHIBIT
10.28

 

CONSULTING
AGREEMENT

 

This
Consulting Agreement (“Agreement”) is made and entered into effective as of the
1st day of
November, 2004 (“Effective Date”), by and between Fiberstars, Inc., a California
corporation having a place of business at 44259 Noble Drive, Fremont, California
94536 (“Fiberstars”), and Gensler Architecture, Design & Planning, P.C., a
New York Professional Corporation, having a place of business at One Rockefeller
Plaza, Suite 500, New York, New York 10020 (“Consultant”). The parties hereby
agree as follows:

 

1.    Term
of Agreement. 
This Agreement shall be effective on the Effective Date and will continue in
effect until December
15, 2007.

 

2.    Services.

 

(a)  Consultant
agrees to perform the services (the “Services”) and in accordance with the
specifications set forth on Exhibit A attached hereto (the “Services”).
Consultant shall perform all Services in a professional and timely manner.

 

(b)  Unless
otherwise specified on Exhibit A, Consultant shall provide the facilities,
tools, equipment and materials necessary to perform the Services, at its own
expense.

 

(c)  Approximately
once each month, a representative of Fiberstars and Consultant will meet in
person or by telephone, as mutually agreed, for a formal progress presentation,
and discussion of possible resolution of any problems which have arisen.
Additionally, Consultant will provide Fiberstars with verbal reports, written
reports, or both, regarding the Services as reasonably requested by
Fiberstars.

 

(d)  Consultant
will, while working on Fiberstars’ premises, observe Fiberstars’ rules and
policies relating to the security of, access to or use of such
premises.

 

(e)  Consultant
represents that all Services provided by Consultant under this Agreement comply,
and in all cases will comply, with all applicable laws, regulations and
rules.

 

(f)  Consultant
represents that it has no outstanding agreement or obligation that is in
conflict with any of the provisions of this Agreement, or that would preclude
Consultant from performing its obligations hereunder, and further represents and
warrants that it will not enter into any such conflicting agreement during the
term of this Agreement.

 

3.    Fees;
Expenses; Taxes.

 

(a)  Fiberstars
will compensate Consultant according to the fee schedule set forth on Exhibit A
for Services performed by Consultant under this Agreement.

 

(b)  The fee
payable under this Agreement shall be construed to include local, state and
federal sales, use, value-added, excise, personal property and all other taxes
or duties, and all such taxes and duties shall be assumed and paid for by
Consultant. Consultant shall be solely responsible for and shall make proper and
timely payment of any taxes.

 

(c)  FIBERSTARS’
MAXIMUM AGGREGATE LIABILITY UNDER THIS AGREEMENT, AND ONLY THIS AGREEMENT, SHALL
BE LIMITED TO THE SCHEDULED FEE, WHETHER LIABILITY IS ASSERTED IN CONTRACT, TORT
OR OTHERWISE, AND IRRESPECTIVE OF WHETHER FIBERSTARS HAS BEEN ADVISED OF THE
POSSIBILITY OF ANY SUCH LOSS OR DAMAGE. IN NO EVENT WILL FIBERSTARS BE LIABLE
FOR ANY CONSEQUENTIAL, INCIDENTAL, EXEMPLARY OR OTHER INDIRECT DAMAGES OF ANY
KIND.

 

 

1

 

4.    Independent
Consultant Relationship. 
Consultant and Fiberstars agree that no employment relationship is created by
this Agreement. Fiberstars is interested only in the results to be achieved.
Consultant is an independent contractor and no employee of Consultant will be
considered an agent or common law employee of Fiberstars for any purpose by
reason of this Agreement. Employees of Consultant are not entitled or eligible
to receive any benefits that Fiberstars provides to its common law employees,
including but not limited to, health insurance, life insurance, participation in
Fiberstars’ stock option plan, or other similar benefits. Consultant will have
no authority to enter into contracts that bind Fiberstars or create obligations
on the part of Fiberstars without the prior written authorization of Fiberstars.
Consultant represents and warrants that Consultant has obtained and, during the
term of this Agreement, will maintain its own federal tax ID number and EIN.
Within ten (10) days after the Effective Date, Consultant shall provide
Fiberstars with a completed W 9 form. No FICA, FUTA or State unemployment taxes
will be payable by Fiberstars on Consultant’s behalf or on behalf of its
employees. If a business license is required in Consultant’s locality,
Consultant shall secure such a license at Consultant’s expense, and shall
provide Fiberstars with the date of issuance and license number.

 

5.    Consultant’s
Insurance Obligations. 
Consultant is solely responsible for securing and maintaining workers’
compensation and/or disability insurance, if legally required, for Consultant’s
employees. Upon Fiberstars’ request, Consultant will provide Fiberstars with
proof of Consultant’s workers’ compensation coverage. During the term of this
Agreement, Consultant will maintain comprehensive general liability, automotive
liability and other appropriate coverage. Such insurance shall have a combined
single limit of not less than USD$2,000,000.

 

6.    Confidential
Information.

 

(a)  “Confidential
Information” shall mean (i) information relating to Fiberstars’ existing and
future services and/or products, including, where appropriate and without
limitation, works of authorship, proprietary technology, techniques, procedures,
algorithms, trade secrets, discoveries, ideas, inventions (whether patentable or
not), concepts, know-how, designs, schematics, specifications, drawings,
diagrams, data, formulae, models, reports, studies, statistics, prototypes,
computer programs, patent disclosures, patent applications, development or
experimental work, formulae, engineering or test data, product specifications,
product development plans, structures, methods and processes disclosed by
Fiberstars to Consultant or obtained or created by Consultant through
observation or examination of information or otherwise in connection with this
Agreement; (ii) marketing information (including without limitation marketing
strategies, customer lists and requirements and product prices); (iii) future
product or service plans; (iv) financial information provided to Consultant by
Fiberstars; (v) personnel information (including without limitation contractor
or employee compensation); and (vi) other confidential business information.
Confidential Information shall also include descriptions of the existence or
progress of the above-described information.

 

(b)  At all
times during this Agreement and at all times thereafter, Consultant will keep in
strict confidence and trust all Confidential Information, and Consultant will
not use, reproduce or disclose any Confidential Information without the written
consent of Fiberstars, except as may be necessary in the ordinary course of
performing Consultant’s duties under this Agreement. The foregoing obligations
of Consultant shall continue until such time as the Confidential Information is
publicly known, without fault on the part of Consultant.

 

(c)  Consultant
recognizes that Fiberstars has received and in the future will receive
information from third parties which is confidential and/or proprietary
information subject to a duty on Fiberstars’ part to maintain the
confidentiality of such information and to use it only for certain limited
purposes. Consultant agrees that during the term of this Agreement and
thereafter Consultant owes Fiberstars and such third parties a duty to hold all
such confidential or proprietary information in the strictest confidence and not
to disclose it, except as necessary in carrying out Consultant’s work for
Fiberstars and then only as consistent with Fiberstars’ agreement with the
applicable third party, and not to use it for the benefit of anyone other than
for Fiberstars or such third party consistent with Fiberstars’ agreement with
such third party.

 

2

 

(d)  Consultant
further acknowledges and agrees that the names, addresses and product
specifications of Fiberstars’ customers constitute Confidential Information and
that the sale or unauthorized use or disclosure of this or any other
Confidential Information that Consultant obtains during the course of its
providing Services for Fiberstars would constitute unfair competition with
Fiberstars. Consultant promises not to engage in any unfair competition with
Fiberstars either during the term of its providing Services for Fiberstars or at
any time thereafter.

 

(e)  If
Consultant is subject to legal, judicial or governmental proceedings requiring
disclosure of Confidential Information, then, prior to any such disclosure,
Consultant will provide Fiberstars with reasonable prior notice and an
opportunity to obtain a protective order or confidential treatment of, or a
confidentiality agreement with respect to, the Confidential
Information.

 

(f)  All
Fiberstars property, including, but not limited to, Confidential Information,
reports, documents, data, records, equipment, video tapes, film and other
tangible property, whether or not pertaining to Confidential Information,
provided to Consultant by Fiberstars or produced by Consultant or others in
connection with Consultant providing Services under this Agreement shall be and
remain the sole property of Fiberstars and shall be returned promptly to
Fiberstars as and when requested by Fiberstars.

 

(g)  Consultant
must not use Fiberstars’ name or logo in any advertising nor as a reference for
any promotional purposes without Fiberstars’ prior written consent.

 

(h)  Consultant
reserves the right to approve all instances where Consultant’s name is suggested
by Fiberstars for use in connection with Fiberstars’ business or products.
Fiberstars will not use Consultant’s name or the names of Consultant’s
directors, officers, employees or agents in advertisements, catalogs or other
materials related to the Services or Fiberstars’ products without first
obtaining Consultant’s written consent prior to publication of the specific
material. In addition, regardless of whether Consultant consents to the use of
its name with respect to a particular Fiberstars product or product line,
Fiberstars will not represent or imply to others that Consultant or its
directors, officers, employees or agents endorse, support or have any
involvement with any of Fiberstars other products or product lines, goods or
services. Consultant shall not to unreasonably withhold or delay its providing
approval and/or consent after receipt of written request for the same from
Fiberstars.

 

(i)  The
parties acknowledge that (i) the restrictions and obligations contained in
this Section 6 are reasonable and necessary to protect the parties’ legitimate
interests; (ii) in the event of the other party’s violation of these
restrictions or breach of these obligations, remedies at law will be inadequate
and violation or breach may cause irreparable damages to the offended party
within a short period of time; and (iii) the offended party will be
entitled to injunctive relief, without posting bond or other security, against
the other party for each and every violation or breach, provided the other party
is given lawful notice of the proceeding and an opportunity to appear. The
offended party shall be entitled to recover from the other party any costs or
expenses incurred in obtaining relief against breach of this Agreement by the
other party, including, but not limited to, legal fees and costs. Nothing in
this Section shall be construed as prohibiting the offended party from pursuing
any other remedies available to it for such breach or threatened breach,
including recovery of damages from the other party. The generality of the
foregoing notwithstanding, Consultant’s unreasonable delay or failure to provide
the consent or approval contemplated pursuant to Section 6(h) above shall
not support injunctive relief but shall be grounds for Fiberstars’ unilateral
termination of this Agreement without limiting other remedies which may be
available to it at law.

 

7.    Representations.
Consultant hereby further represents and agrees as follows:

 

(a)  Consultant
has and will continue to have the full right, power and authority to enter into
this Agreement, to perform the terms and conditions of this Agreement, to grant
the rights herein granted to Fiberstars, to make the representations and
warranties contained herein, to otherwise perform hereunder, and to vest in
Fiberstars all the rights as provided in this Agreement, free and clear of any
and all claims, encumbrances, liens and rights of third parties.

 

3

 

8.    No
Solicitation. 
Consultant agrees that during the term of this Agreement and for a period of
twelve months thereafter, Consultant will not either directly or indirectly
solicit, induce, recruit or encourage any of Fiberstars’ employees or
contractors to terminate their relationship with Fiberstars, or attempt to do
any of the foregoing, either for Consultant or for any third party.

 

9.    Cumulative
Remedies. 
Any and all rights and remedies of Fiberstars upon Consultant’s breach of or
default under this Agreement are cumulative with and not exclusive of any other
right or remedy conferred by this Agreement or by law or equity on Fiberstars,
and Fiberstars’ exercise of any one remedy will not preclude the exercise of any
other.

 

10.    Assignment;
Successors and Assigns. 
The parties agree that this is a contract for Consultant’s personal services and
cannot in any way be assumed or assigned by, or delegated to, any third party
without Fiberstars’ prior express written permission. Any attempted assumption,
assignment or delegation by Consultant without the required consent is void.
With the consent of Consultant, which consent shall not be unreasonably delayed
or withheld, Fiberstars may freely assign its rights, obligations and/or this
Agreement. This Agreement inures to the benefit of permitted successors and
assigns of Fiberstars, and is binding upon Consultant’s successors and
assigns.

 

11.    Notices. 
Any notice required or permitted to be given by either party under this
Agreement will be in writing and will be personally delivered or sent by a
reputable overnight mail service (e.g., Federal Express), or by first class mail
(certified or registered), or by facsimile confirmed by first class mail
(registered or certified), to the other party. Notices will be deemed effective
(i) three (3) working days after deposit, postage prepaid, if mailed,
(ii) the next day if sent by overnight mail, or (iii) the same day if
sent by facsimile and confirmed as set forth above. A copy of any notice to
Fiberstars will be sent to the following:

 

	Fiberstars, Inc.	Gensler Architecture, Design & Planning
      PC
	44259 Noble Drive	One Rockefeller Plaza, Suite 500
	Fremont, CA 94536	New York, New York 10020
	Attn: Chief Financial Officer	Attn. Chief Financial Officer
	Fax: (510) 490-0947	Fax: (212) 492-1472
	 	 

 

12.    Governing
Law. 
This Agreement and any action related thereto will be governed, controlled,
interpreted and defined by and under the laws of the State of California and the
United States, without regard to the conflicts of laws provisions thereof. The
exclusive jurisdiction and venue of any action with respect to the subject
matter of this Agreement will be the state courts of the State of California for
the County of Santa Clara or the United States District Court for the Northern
District of California and each of the parties hereto submits itself to the
exclusive jurisdiction and venue of such courts for the purpose of any such
action. The parties agree that service of process by US mail certified, to the
last known address of a party, as provided or as changed in accordance with the
provisions of this Agreement, shall be valid.

 

13.    Miscellaneous. 
This Agreement supersedes and cancels any and all previous agreements of
whatever nature between Fiberstars and Consultant with respect to the matters
covered herein, including, without limitation, agreements reflected by
correspondence between the parties and dated November 25, 2003 and
November 26, 2003; for clarity, however, this Agreement is not intended to
supercede, cancel, modify, alter or amend that written agreement between the
parties dated March 14, 2003 and fashioned Agreement for Product Design
Consulting Services for Task Light and General Office Light, including any
written amendment thereof or addendum thereto. This Agreement constitutes the
full, complete and exclusive agreement between Consultant and Fiberstars with
respect to the subject matters herein. No modification or waiver of this
Agreement, or any portion hereof, shall be valid unless made in writing and
signed by the parties hereto. The failure of any party to require performance by
another party of any provision of this Agreement shall in no way affect the full
right to require such performance at any time thereafter. Should any provisions
of this Agreement be found unenforceable, the remainder shall still be in
effect. This Agreement has been negotiated by the parties and their respective
attorneys, and the language of this Agreement shall not be construed for or
against either party. The headings are not part of this Agreement. Either the
original or copies, including facsimile transmissions, of this Agreement, may be
executed in counterparts, each of which shall be an original as against any
party whose signature appears on such counterpart and all of which together
shall constitute one and the same instrument.

 

4

	Accepted
      and Agreed:	 	 	 
	 	 	 	 
	CONSULTANT:	 	 	FIBERSTARS:
		 	 	 
	 	 	 	 
	By:  /s/ Joseph Brancato	 	 	By:  /s/ David Ruckert
	
      

    	 	 	
      

    
	Print Name	 	 	Print Name
	
      
      

      
	 	 	
      

    
	As Its: Managing Principal	 	 	As Its: President & CEO
	
      

    	 	 	
      

    

 

5

EXHIBIT
A

 

STATEMENT
OF WORK

 

1.    GENERAL

 

This is a
Statement of Work under the Consulting Agreement by and between Consultant,
(“Consultant”) and Fiberstars (“Fiberstars”) dated November 1, 2004
(“Agreement”) and is subject to the terms and conditions of the
Agreement.

 

2.    SUMMARY
OF THE SERVICES

 

Consultant’s
ongoing services:

 

	·  	
      Provide
      consulting services and assistance to Fiberstars with regard to the
      structure, policies and procedures of its marketing group as it relates to
      Fiberstars’ marketing to the design, real estate and procurement
      communities together with other sectors within the built
      environment;

 

	·  	
      Identify
      opportunities for Fiberstars to participate in trade shows, conferences
      and other forum which Consultant believes would be advantageous to
      Fiberstars’ marketing efforts;

 

	·  	
      Consult
      and advise on strategies to enhance Fiberstars’ image within the design
      and construction community as a preferred technology in support of
      sustainable design.

 

3.    FIBERSTARS
REPRESENTATIVE

 

David
Ruckert, Chief Executive Officer.

 

4.    FEE

 

Consultant’s
sole fee (“Fee”) for Services shall be:

 

(i)    A
one-time cash payment of $60,750 payable on or before December 15, 2004 for the
Services provided through December 15, 2004; and,

 

(ii)    A
one-time non-statutory option to acquire up to 75,000 shares of Fiberstars
common stock (the “Option Award”), as follows: 

 

(a)    Price:
the per
share exercise price for each option share under the Option Award shall be
$6.57.

 

(b)    Vesting:
the right
to exercise options under Option Award shall be subject to equal annual vesting
for so long as Consultant continues to provide Services as of the end of such
one year period over the term of this Agreement with a vesting commencement date
of December 15, 2004, such that 25,000 option shares shall be deemed vested and
exercisable as of December 15, 2005, an additional 25,000 option shares shall be
deemed vested and become exercisable as of December 15, 2006, and the remaining
25,000 shares shall be deemed vested and become exercisable as of December 15,
2007. Vesting shall terminate as of the date Consultant ceases to provide
Services under the Agreement. Vested options shall be exercisable for up to
12 months after Consultant ceases to be a provider of Services under the
Agreement. The foregoing notwithstanding (i) in the event that Consultant
exercises its discretion pursuant to Section 12(a) of the Agreement to
terminate the Agreement prior to its expiration in the absence of a breach by
Fiberstars, Consultant’s right to exercise unexercised vested options shall
immediately terminate effective with Consultant’s delivery to Fiberstars of
notice of its intent to so terminate the Agreement, and (ii) in the event of a
change of control of Fiberstars prior to the expiration or termination of this
Agreement, all unvested option shares shall immediately vest.

 

6

 

(c)    Option
Agreement. The
Parties shall execute an option award agreement consistent with the foregoing
and with each of Fiberstars’ standard form of non-statutory option agreement (as
modified to conform herewith) and Fiberstars’ 2004 Stock Incentive
Plan.

 

(iii)    An
aggregate annual cash payment to be paid in quarterly installments of $12,500 in
arrears for each of the calendar years 2005, 2006 and 2007.

 

The
parties, through their authorized representatives, hereby agree to the terms of
this Statement of Work.

 

	 	 	 	 
	
      CONSULTANT
      

      GENSLER
	 	 	FIBERSTARS
		 	 	 
	 	 	 	 
	By:  /s/ Joseph Brancato	 	 	By:  /s/ David Ruckert
	
      

    	 	 	
      

    
	Name:	 	 	Name:
	
      
      

      
	 	 	
      

    
	Title:  Managing Principal	 	 	Title:  President & CEO
	
      

    	 	 	
      

    
		 	 	 
	 	 	 	 
	 	 	 	 

 

	
      7EXHIBIT
10.29

 

FIBERSTARS,
INC.

 

CONSULTING
AGREEMENT

 

THIS
CONSULTING AGREEMENT (the “Agreement”) is
entered into effective as of November 1, 2004 (the “Effective Date”) by and
between FIBERSTARS,
INC. (the
“Company”) and
JEFFREY H.
BRITE
(“Consultant”).

 

1.    Consulting
Relationship. During
the term of this Agreement, Consultant will provide consulting services (the
“Services”) to the
Company as described on Exhibit A attached
to this Agreement, as needed and as requested by the Company. Consultant will
use Consultant’s reasonable best efforts to perform the Services in a manner
satisfactory to the Company.

 

2.    Fees. As
consideration for entering into this Agreement and for the Services provided by
Consultant hereunder, the Company agrees to pay to Consultant the consideration
specified in Exhibit B attached
to this Agreement.

 

3.    Support. As
additional consideration for the Services provided by Consultant, the Company
will provide Consultant with such support facilities and space as may in the
Company’s judgment be required to enable Consultant to perform the Services
properly.

 

4.    Expenses. Except
as specified in Exhibit C attached
to this Agreement, Consultant
is not authorized to incur on behalf of the Company any expenses without the
prior written consent of the President of the Company. As a condition to receipt
of reimbursement for permitted expenses, Consultant will be required to submit
to the Company reasonable evidence that the amount involved was expended and
related to the Services provided under this Agreement.

 

5.    Term
and Termination.
Consultant will serve as a consultant to the Company for a period commencing on
the Effective Date, and continuing until this Agreement is terminated by either
party upon ten days’ written notice to the other party. Sections 11 and 12
and the Confidentiality Agreement attached at Exhibit D shall
survive termination of this Agreement.

 

6.    Independent
Contractor.
Consultant’s relationship with the Company will be that of an independent
contractor and not that of an employee. Consultant will not be eligible for any
employee benefits, nor will the Company make deductions for taxes from payments
made to Consultant, all of which will be Consultant’s responsibility. Consultant
agrees to indemnify and hold the Company harmless from any liability for, or
assessment of, any such taxes imposed on the Company by taxing authorities.
Consultant will have no authority to enter into contracts that bind the Company
or create obligations on the part of the Company without the prior written
authorization of the Company’s Board of Directors.

 

7.    Supervision
of Consultant’s Services. All
services to be performed by Consultant, including but not limited to the
Services, will be as agreed between Consultant and the President of the Company.
Consultant will report orally to the President concerning
the Services performed under this Agreement. The frequency of these reports will
be determined at the discretion of the President.

 

8.    Consulting
or other Services for Competitors. The
Company understands that Consultant does not presently perform or intend to
perform during the term of this Agreement, consulting or other services for any
manufacturing company, person or entity whose business or proposed business
involves the manufacture of products that could reasonably be determined to be
competitive with the present or proposed products of the Company. If, however,
Consultant desires to perform such services at any time after the Effective Date
and prior to termination of this Agreement, Consultant agrees to notify the
Company in writing in advance (specifying the identity of the company, person or
entity to whom the services are to be provided) and provide information
sufficient to allow the Company to determine if such consulting or other
services would conflict with the present or proposed products or services of the
Company. If the Company determines that such business is or may be in
competition with that conducted or proposed to be conducted by the Company, the
Company may elect to terminate this Agreement immediately, effective upon
written notice to Consultant.

 

 

9.    Confidentiality
Agreement.
Consultant has signed an Employee Confidentiality Agreement substantially in the
form attached to this Agreement as Exhibit D (the
“Confidentiality
Agreement”).

 

10.    Conflicts
with this Agreement. Consultant
represents and warrants that neither Consultant nor any of Consultant’s
partners, employees or agents is under any pre-existing obligation in conflict
or in any way inconsistent with the provisions of this Agreement. Consultant
warrants that Consultant has the right to disclose or use all ideas, processes,
techniques and other information, if any, that Consultant has gained from third
parties, and that Consultant discloses to the Company in the course of
performance of the Services pursuant to this Agreement, without liability to
such third parties or others. Consultant represents and warrants that Consultant
has not granted any rights or licenses to any intellectual property or
technology that would conflict with Consultant’s obligations under this
Agreement. Consultant will not knowingly infringe upon any copyright, patent,
trade secret or other property right of any former client, employer or third
party in the performance of the Services pursuant to this
Agreement.

 

11.    License
and Assignment of Rights. To the
extent that Consultant has intellectual property rights of any kind in any
pre-existing works that are subsequently incorporated in any work or work
product produced in rendering the Services, Consultant hereby grants the Company
a royalty-free, irrevocable, world-wide, perpetual, non-exclusive license (with
the right to sublicense) to make, have made, copy, modify, make derivative works
of, use, sell, license, disclose, publish, or otherwise disseminate or transfer
the subject matter of such rights. Consultant agrees that all inventions,
original works of authorship, developments, concepts, know-how, improve-ments or
trade secrets that are made by Consultant (solely or jointly with others) within
the scope of and during the period in which Consultant is providing the Services
to the Company are “works
made for hire” (to the
greatest extent permitted by applicable law) belonging to the Company, and
Consultant is compensated therefor by such amounts paid to Consultant under this
Agreement, unless regulated otherwise by the law of the State of California. To
the extent there are any conflicts between this Section 11 and the
Confidentiality Agreement, the terms of the Confidentiality Agreement shall
prevail.

 

12.    Miscellaneous.

 

(a)    Amendment
and Waiver. This
Agreement may be amended and any term or provision hereof may be waived only
with the written consent of the parties.

 

(b)    Sole
Agreement. This
Agreement, including the Exhibits hereto, constitutes the sole agreement of the
parties concerning its subject matter and supersedes all oral negotiations and
prior writings with respect to the subject matter hereof.

 

(c)    Notices.
 Any notice required or permitted by this Agreement shall be in writing and
shall be deemed sufficient upon receipt, when delivered personally or by a
nationally-recognized delivery service (such as Federal Express or UPS), or
forty-eight (48) hours after being deposited in the U.S. mail as certified or
registered mail with postage prepaid, if such notice is addressed to the party
to be notified at such party’s address as set forth below or as subsequently
modified by written notice.

 

(d)    Choice
of Law. The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of California without giving effect to the
principles of conflict of laws.

 

(e)    Severability. If one
or more provisions of this Agreement are held to be unenforce-able under
applicable law, the parties agree to renegotiate such provision in good faith.
In the event that the parties cannot reach a mutually agreeable and enforceable
replace-ment for such provision, then (i) such provision shall be excluded
from this Agreement, (ii) the balance of this Agreement shall be
interpreted as if such provision were so excluded and (iii) the balance of
this Agreement shall be enforceable in accordance with its terms.

 

2

 

(f)    Counterparts. This
Agreement may be executed by facsimile copy and in counterparts, each of which
shall be deemed an original, but all of which together will constitute one and
the same instrument.

 

(g)    Arbitration.
Any dispute
or claim arising out of or in connection with any provision of this Agreement,
excluding Sections 9 and 11 hereof,
will be
finally settled by binding arbitration in Santa Clara County, California
conducted in accordance with the rules of the American Arbitration Association
(“AAA”) by one arbitrator appointed
in accordance with said rules. The arbitrator shall apply California law,
without reference to rules of conflicts of laws or rules of statutory
arbitration, to the resolution of any dispute. Judgment on the award rendered by
the arbitrator may be entered in any court having jurisdiction thereof.
Notwithstanding the foregoing, the parties may apply to any court of competent
jurisdiction for preliminary or interim equitable relief, or to compel
arbitration in accordance with this paragraph, without breach of this
arbitration provision. Fiberstars shall pay the arbitrator’s fees and costs
assessed by AAA for any such arbitration.

 

(h)    ADVICE
OF COUNSEL. EACH
PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS AGREEMENT, SUCH PARTY HAS HAD THE
OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND HAS READ AND
UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT
SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR
PREPARATION HEREOF.

 

The
parties have executed this Agreement as of the date first set forth
above.

 

	 	 	 
	 	COMPANY
	 	 
	 	FIBERSTARS,
      INC.
	 
 	 
 	 
 
		By:  	/s/ David
Ruckert
	 	 	
      

    
	 	Title:	President &
      CEO
	 	 	
      

    
	 	Address:	
      44259
      Nobel Drive
Freemont, California  94538

	 	

	 	 	 
	 	CONSULTANT
	 	 
	 	JEFFREY
      E. BRITE
	 
 	 
 	 
 
		Signature:  	
        /s/ Jeffrey
  Brite

	 	 	
      

    
	 	 	 
	 	Address:
      	
      
      

      

      
      

      

	 	

 

 

3

EXHIBIT
A

 

DESCRIPTION
OF CONSULTING SERVICES

 

Consultant
is to assist the Company’s President and Vice President of Sales in identifying,
contacting and making introductions to key building project personnel in a
position to facilitate company sales.

 

 

 

 

 

 

A-1

EXHIBIT
B

 

CONSIDERATION

 

Consultant’s
sole compensation for entering into this Agreement and the performance of the
Services is 

 

(1)    the
conditional grant of nonstatutory stock options (“Conditional Award”) to acquire
Common Stock of the Company pursuant to a contemplated 2004 incentive stock
plan. Such Conditional Award is conditioned upon (i) the approval by the
Company’s shareholders of a 2004 incentive stock plan, (ii) this Agreement
remaining in effect at the time such shareholder approval may be obtained and
(iii) the approval of this Agreement by the Company’s Board of Directors
(or the appropriate committee thereof). The failure of the Conditional Award by
reason of the failure of conditions “(i),” “(ii)” or “(iii),” above, shall not
constitute a breach of this Agreement by Fiberstars, but shall result in
automatic termination of this Agreement.

 

	 	
      Number
      of Options:
	
      40,000

 

	 	
      Exercise
      Price:
	
      $7.23
      per share (the closing price of a share of Fiberstar’s Common Stock on the
      NASDAQ on December 4, 2003)

 

	 	
      Date
      of Grant:
	
      November
      1, 2004.

 

	 	
      Expiration
      Date:
	
      October
      31, 2009. The Options shall expire immediately if, prior to vesting, this
      Agreement is terminated by either (i) Jeffrey E. Brite, other than on
      account of a material breach of this Agreement by the Company, or (ii) the
      Company on account of a material breach of this Agreement by
      Jeffrey E. Brite, or pursuant to Section 8 of this
      Agreement.

 

	 	
      Vesting:
	
      The
      options shall not be exercisable until vested. The options shall vest in
      full on the earlier of (i) November 26, 2004, or (ii) such date that
      60% or more of the Company’s capital stock or assets is acquired by
      another entity.

 

2.    Annual
aggregate cash payments of $50,000 to be paid in quarterly installments in
arrears for each of the years 2005, 2006 and 2007.

 

 

B-1

EXHIBIT
C

 

DESCRIPTION
OF AUTHORIZED EXPENSES

 

The
Company will reimburse Consultant for reasonable travel, lodging and other
out-of-pocket expenses previously approved in writing by the
Company.

 

The
Company will not reimburse Consultant for general office expenses or other
expenses not specified above, without the Company’s prior written
consent.

 

 

 

 

 

C-1

EXHIBIT
D

 

EMPLOYEE
CONFIDENTIALITY AGREEMENT

 

(Current
Employees and Current Independent Contractors)

 

The
undersigned is an employee or independent contractor working for Fiberstars,
Inc. (“Fiberstars”). This Agreement is intended to formalize in writing certain
understandings and procedures which have been in effect since the time the
undersigned was initially employed or engaged by Fiberstars. In consideration of
the undersigned’s original and continuing employment with or work for Fiberstars
in a capacity in which he or she may receive access to or contribute to the
production of Confidential Information (as defined below), the undersigned
hereby confirms his or her understanding and agreement as follows:

 

	1.	
      For
      purposes of the Agreement, “Confidential Information” shall mean
      information or material proprietary to Fiberstars or designated or labeled
      as Confidential Information by Fiberstars and not generally known by
      non-Fiberstars personnel, which the undersigned develops or of which the
      undersigned may obtain knowledge or access through or as a result of the
      undersigned’s relationship with Fiberstars (including information
      conceived, originated, discovered or developed in whole or in part by the
      undersigned). The Confidential Information includes, but is not limited
      to, the following types of Inventions (as defined below), drawings,
      specifications, models, data, documentation, diagrams, flow charts,
      research, development, procedures, software in various stages of
      development, source codes, object codes, marketing techniques, and
      materials, marketing and development plans, customer lists and names and
      other information related to employee files. Confidential Information also
      includes any information described above which Fiberstars obtains from
      another party and which Fiberstars treats as proprietary or designates as
      Confidential information, whether or not owned or developed by Fiberstars.
      For purposes of Section 1, “Fiberstars” shall mean Fiberstars or any of
      its affiliates. INFORMATION PUBLICLY KNOWN THAT IS GENERALLY EMPLOYED BY
      THE TRADE AT OR AFTER THE TIME THE UNDERSIGNED FIRST LEARNS OF SUCH
      INFORMATION, OR GENERIC INFORMATION OR GENERAL KNOWLEDGE WHICH THE
      UNDERSIGNED WOULD HAVE LEARNED IN THE COURSE OF SIMILAR EMPLOYMENT OR WORK
      ELSEWHERE IN THE TRADE, SHALL NOT BE DEEMED PART OF THE CONFIDENTIAL
      INFORMATION.

 

	2.	
      For
      purposes of this Agreement, “Inventions” shall mean ideas, designs,
      concepts, techniques, inventions and discoveries, whether or not
      patentable or protectable by copyright, and whether or not reduced to
      practice, including, but not limited to, devices, processes, drawings,
      works of authorship, computer programs, mask works, methods and formulas,
      together with any improvements thereon or thereto, derivative works
      therefrom and know-how related
thereto.

 

	3.	
      All
      notes, data, reference materials, sketches, drawings, memoranda,
      documentation and records in any way incorporating or reflecting any of
      the Confidential Information and all proprietary rights therein, including
      copyrights, shall belong exclusively to Fiberstars and the undersigned
      agrees to turn over all copies of such materials in the undersigned’s
      possession or control to Fiberstars upon request or upon termination of
      the undersigned’s employment with
Fiberstars.

 

	4.	
      The
      undersigned agrees during his or her employment by Fiberstars and
      thereafter to hold in confidence and not to directly or indirectly reveal,
      report, publish, disclose or transfer any of the Confidential Information
      to any person or entity, or utilize any of the Confidential Information
      for any purpose, except in the due performance of the undersigned’s work
      for Fiberstars.

 

	5.	
      The
      undersigned acknowledges that Fiberstars has a strict policy against using
      proprietary information belonging to any other person or entity without
      the express permission of the owner of that information. The undersigned
      represents and warrants that the undersigned’s performance of all the
      terms of the Agreement and as an employee or independent contractor of
      Fiberstars does not and will not result in a breach of any duty owed by
      the undersigned to a third party to keep in confidence any proprietary
      information, knowledge or data acquired by the undersigned in confidence
      or in trust prior to or during the undersigned’s employment with
      Fiberstars, and the undersigned agrees not to disclose Fiberstars or
      induce Fiberstars to use any confidential or proprietary information
      belonging to any of the undersigned’s previous employers or others except
      in accordance with applicable law.

 

 

D-1

 

	6.	
      The
      undersigned agrees that any Inventions in whole or in part conceived, made
      or reduced to practice by the undersigned (either solely or in conjunction
      with others) during or after the term of his or her employment or
      relationship with Fiberstars which are made through the use of any of the
      Confidential Information or any of Fiberstars’ equipment, facilities,
      supplies, trade secrets or time, or which relate to Fiberstars’ business
      or Fiberstars’ actual or demonstrably anticipated research and
      development, or which result from any work performed by the undersigned
      for Fiberstars shall belong exclusively to Fiberstars and shall be deemed
      part of the Confidential Information for purposes of this Agreement
      whether or not fixed in a tangible medium of expression. Without limiting
      the foregoing, the undersigned agrees that any such Inventions shall be
      deemed to be “works made for hire” as a matter of law, the undersigned
      hereby irrevocably assigns and transfers to Fiberstars all right, title
      and interest in and to any such Inventions, including but not limited to
      patents, copyrights and mask works. This Agreement shall not be
      interpreted to assign to or vest in Fiberstars any of the undersigned’s
      rights in any inventions other than those described in the first sentence
      of this Section 6 and shall be construed in accordance with the applicable
      provisions of California law.

 

	7.	
      The
      undersigned represents and warrants that Exhibit 1
      attached hereto, entitled “List of Inventions” and listing
      ________________(specify number) inventions, is a true and complete list
      of all Inventions, if any, whether or not patented or copyrighted and
      whether or not reduced to practice, made by the undersigned prior to his
      or her employment by Fiberstars and which therefore are not subject to the
      provisions of Section 6 hereof; provided, however, that any improvements,
      whether or not patentable and whether or not reduced to practice, made to
      or on, or any derivative works made from, any of the listed Inventions
      after commencement of the undersigned’s employment by Fiberstars are
      subject to the terms of Section 6 hereof. The undersigned further agrees
      to notify Fiberstars in writing before he or she make any disclosure to or
      performs any work on behalf of Fiberstars which appears to threaten or
      conflict with any proprietary or other rights the undersigned claims in
      any Invention and, in the event of the undersigned’s failure to give such
      notice, the undersigned will make no claim against Fiberstars with respect
      to any such Invention.

 

	8.	
      The
      undersigned agrees that he or she will keep and maintain adequate and
      current written records (in the form of notes, sketches, drawings or such
      other form(s) as may be specified by Fiberstars) of all Inventions made by
      the undersigned, which records shall be available at all times to
      Fiberstars and shall remain the sole property of
    Fiberstars.

 

	9.	
      The
      undersigned agrees to promptly and fully disclose in writing to the
      President of Fiberstars (i) any Invention made, conceived of or reduced to
      practice by the undersigned, either solely or in conjunction with others,
      during the term of his or her employment or relationship with Fiberstars
      and (ii) any such Invention made, conceived or reduced to practice after
      the term of his or her employment or relationship with Fiberstars which
      belongs exclusively to Fiberstars pursuant to the provisions of Section 6
      hereof.

 

	10.	
      The
      undersigned agrees to assist Fiberstars, at Fiberstars’ expense, either
      during or subsequent to the undersigned’s employment by or relationship
      with Fiberstars, to obtain and enforce for its own benefit patents,
      copyrights and mask work protection in any country for any and all
      Inventions made by the undersigned (in whole or in part) the rights to
      which belong to or have been assigned to Fiberstars pursuant to the
      provisions of Section 6 hereof. Upon request, the undersigned will execute
      all applications, assignments, instruments and papers and perform all acts
      as Fiberstars or its counsel may deem necessary or desirable to obtain any
      patents, copyrights or mask work protection in such Inventions and to
      otherwise protect the interests of Fiberstars
therein.

 

	11.	
      The
      undersigned acknowledges that Fiberstars from time to time may have
      agreements with other persons or entities or with the U.S. Government or
      agencies thereof which impose obligations or restrictions on Fiberstars
      regarding inventions made during the course of work thereunder or
      regarding the confidential nature of such work. The undersigned agrees to
      be bound by all such obligations and restrictions and to take all action
      necessary to discharge the obligations of Fiberstars
      thereunder.

 

 

D-2

 

	12.	
      Because
      of the unique nature of the Confidential Information and the Inventions,
      the undersigned understands and agrees that Fiberstars will suffer
      irreparable harm in the event that the undersigned fails to comply with
      any of his or her obligations under Sections 3, 4, 5, 6, 10, or 11 above
      and that monetary damages will be inadequate to Fiberstars for such
      breach. Accordingly, the undersigned agrees that Fiberstars will, in
      addition to any other remedies available to it at law or in equity, be
      entitled to injunctive relief to enforce the terms of Sections 3, 4, 5, 6,
      10 or 11 above.

 

	13.	
      The
      undersigned hereby authorized Fiberstars to provide a copy of this
      Agreement, including any exhibits hereto, to any and all of his or her
      future employers, and to notify any and all such future employers that
      Fiberstars intends to exercise its legal rights arising out of or in
      connection with this Agreement and/or any breach or any inducement of a
      breach hereof.

 

	14.	
      The
      undersigned acknowledges receipt of the following additional
      consideration, separate from and in addition to the undersigned’s normal
      compensation, for the undersigned entering into this Agreement:
      

( x )
cash payment in the amount of $1.00, receipt of which is hereby acknowledged; (
) the grant of a stock option or other right to purchase stock, pursuant to an
incentive stock option plan, employee stock purchase plan or otherwise; ( )
other (specify) __________________________________.

 

	15.	
      This
      Agreement shall be binding upon the heirs, executors and administrators of
      the undersigned and will inure to the benefit of Fiberstars and its
      successors and assigns.

 

	16.	
      This
      Agreement shall be governed by California law applicable to contracts
      between residents of California, which are wholly executed and performed
      in California. This Agreement contains the full and complete understanding
      of the parties with respect to the subject matter hereof and supersedes
      all prior representations and understandings, whether oral or written. In
      event that any provision hereof or any obligation or grant of rights by
      the undersigned hereunder is found invalid or unenforceable pursuant to
      judicial decree or decision, any such provision, obligation or grant of
      rights shall be deemed and construed to extend only to the maximum
      permitted by law, and the remainder of the Agreement shall remain valid
      and enforceable according to its terms. The Agreement may not be amended,
      waived or modified except by an instrument in writing executed by the
      undersigned and a duly authorized representative of Fiberstars.
      

 

(remainder
of page intentionally left blank)

 

 

D-3

I agree
to the terms and acknowledge receipt of a copy of this Agreement effective as of
November 1, 2004.

 

	Signature:	/s/
      Jeffrey Brite	 
	 	
      

    	 
	Print
      Name:	Jeffrey
      Brite	 
	 	
      

    	 
	Social
      Security:	 	 
	 	
      

    	 
	Mailing
      Address:	 	 
	 	
      

    	 
	 	 	 

 

Accepted
and agreed to as of the date set forth above:

 

	 	 	 
		FIBERSTARS,
      INC.	 
	 	 	 
	 		 
	Print
      Name:	 	 
	 	
      

    	 
	Print
      Titel:	 	 
	 	
      

    	 

 

 

D-4

EXHIBIT 1

 

LIST OF
INVENTIONS

 

I made
the following Inventions prior to my employment by Fiberstars,
Inc.:

 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

 

 

 

	 	 	 	 
	 	 	 	 
	
      D-5

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