Document:

ex10-44.htm

Exhibit 10.44

IDEAL POWER INC.

October 15, 2013

VIA ELECTRONIC MAIL

twburns@sbcglobal.net; busterburns@sbcglobal.net

Timothy W. Burns

4903 Mantle Drive

Austin, Texas 78746

Dear Tim:

    Please accept this letter as an offer of employment with Ideal Power Inc. (the “Company”, “we” or “our”).  This offer is conditioned upon (i) the Company completing and approving the results of a back-ground check and (ii) you completing and passing a drug test.  The terms of this offer include the following:

 

	 	Position: You will be employed on a full-time as the Company’s Chief Financial Officer. 

Annual Salary: For the first six months of your employment (the “Introductory Period”), you will be paid at an annual rate of $150,000 per year. Following the Introductory Period, if the Company finds that your performance was satisfactory during the Introductory Period, your annual salary will be increased to $200,000 per year.

Target Bonus: Before December 31, 2013, you and the Compensation Committee of the Company’s Board of Directors will meet to discuss performance objectives and targets for you, personally, and for the Company for the 2014 year. If these agreed-upon objectives and targets are satisfactorily achieved during the period or periods designated, as determined by the Compensation Committee, you will be eligible to receive a performance bonus in the amount of $50,000.

Stock Options: Following and subject to the completion of our initial public offering of common stock (the “IPO”), you will receive an option to purchase 30,000 post-reverse-split shares of our common stock at a per share exercise price equal to the price at which the Company’s common stock will be sold to the public in the IPO. We currently expect this price will be $5.00 per share, but it may be subject to change. The right to purchase the shares subject to the option will vest in equal increments over a period of four years, on the 31st of each December. The option will have a term of 10 years. The option will be subject to the terms of the Company’s 2013 Equity Incentive Plan, a copy of which will be provided to you at the start of your employment. The Compensation Committee will annually review your performance to determine if additional equity awards are deserved.

At-Will Employment: You will be an employee “at-will”, meaning that either you or the Company may terminate your employment, at any time, with or without reason or cause.

Health and Dental Benefits: You will be entitled to receive the same benefits and opportunities to participate in any of the Company’s employee benefit plans which may now or hereafter be in effect on a general basis for executive officers or employees. During your employment the Company will provide, at the Company’s sole expense, medical and dental benefits for you, your spouse and your children. Irrespective of the foregoing, the Company may change any benefits contractor, or discontinue any benefit without replacement, in its sole discretion and any such change or discontinuance will not be considered to be a breach of the terms of your employment.

Acceptance of this Offer: You will have a period of two days to accept this offer of employment. If we do not receive your acceptance by 5:00 p.m. Central time on October 17, 2013, this offer will terminate. You may return the acceptance to the Company’s Chief Executive Officer, Paul Bundschuh, at paul.bundschuh@idealpower.com. If you chose to accept this offer, please let us know when you will be available to begin work.

 

    Tim, the Company is entering into a new and exciting phase of its development.  We hope you’ll join us.

Very truly yours,

 

/s/ Lon Bell                                                                

Lon Bell, Chairperson of the Compensation Committee

October 16, 2013

I, Timothy W. Burns, have read the above offer of employment and accept it without condition.  I will be available to begin work on October 21, 2013.

/s/ Timothy Burns                                                                

Timothy W. Burnsex10-45.htm

Exhibit 10.45

  AMENDMENT TO PROMISSORY NOTE

THIS AMENDMENT TO PROMISSORY NOTE (the “Amendment”) is entered into by Ideal Power Inc., a Delaware corporation (the “Company”), Peter Appel and MDB Capital Group, LLC (collectively, the “Majority Holders”), effective as of October 25, 2013.

WHEREAS, on August 31, 2012 and again on November 21, 2012, the Company issued Senior Secured Convertible Promissory Notes (the “Notes”) together with Warrants to raise a total of $4 million; and

WHEREAS, Section 12.1 of the Notes permits the amendment, modification, supplement, waiver or consent to departure from the provisions of the Notes, if the Company and the Majority Holders consent to such amendment.

WHEREAS, the Company and the Majority Holders have determined that the Maturity Date of the Notes, as defined in Section 3 therein, should be extended.

NOW, THEREFORE, the Company and the Majority Holders agree as follows:

1.           Amendment to Section 3 of the Notes.  Section 3 of the Notes, which currently states:

3.           Maturity Date.  All amounts payable hereunder shall be due and payable on the earlier to occur of (i) November 21, 2013 (the "Calendar Due Date"), (ii) the occurrence of an Event of Default (as defined below) or (iii) the closing of an IPO Financing (as defined below).

shall be amended to state:

3.           Maturity Date.  All amounts payable hereunder shall be due and payable on the earlier to occur of (i) January 6, 2014 (the “Calendar Due Date”), (ii) the occurrence of an Event of Default (as defined below) or (iii) the closing of an IPO Financing (as defined below).

2.           No Other Changes.  In all other respects, the terms and conditions of the Notes shall remain the same.

  

  

  

WHEREFORE, the Company and the Majority Holders have executed this Amendment as of the date set forth above.

 

“COMPANY”

IDEAL POWER INC.

By: /s/Paul Bundschuh                                                                           

      Paul Bundschuh, Chief Executive Officer

 

“MAJORITY HOLDERS”

/s/ Peter Appel                                                                           

Peter Appel

 

MDB CAPITAL GROUP, LLC

By: Anthony DiGiandomenicoex10-46.htm

Exhibit 10.46

 

ADDENDUM TO STOCK PURCHASE WARRANT (Series A)

THIS ADDENDUM TO STOCK PURCHASE WARRANT (the “Addendum”) is issued by Ideal Power Inc., a Delaware corporation (the “Company”) to _______________, (the “Holder”), effective as of October 25, 2013.

WHEREAS, the Company issued the Holder a Common Stock Purchase Warrant (the “Warrant”), A-, dated August 31, 2012, in conjunction with the offer and sale by the Company of senior secured convertible promissory notes dated August 31, 2012 (the “Notes”); and

WHEREAS, the Company now desires to clarify certain ambiguities contained in the Warrant relating to time period that the Holder may exercise its right to purchase the shares of the Company’s common stock underlying the Warrant.

NOW THEREFORE, the Warrant is hereby amended as follows:

1.           The first paragraph of the Warrant beginning with the phrase “THIS CERTIFIES that” is hereby amended by inserting the phrase “in Section 2” after the words “applicable event specified” and before the word “below” and then again by inserting the phrase “setting forth the Exercise Price” immediately after the word “below” and before the phrase “and on or prior to the Expiration Date.”

2.           Section 1.1 of the Warrant is hereby amended by deleting the phrase “November 21, 2013” and by adding the phrase “January 6, 2014” in its place.

3.           Section 2(i) of the Warrant is hereby amended by adding the phrase “in which case this Warrant will become exercisable in whole or in part,” immediately after the phrase “while the per-share exercise price shall be equal to 0.70 times the IPO Price or $1.46”.

4.           Section 2(ii) of the Warrant is hereby amended by adding the phrase “in which case this Warrant will become exercisable in whole or in part, on the Calendar Due Date” after the phrase “equal to 0.70 times the Private Equity Financing Price or $1.46” and before the phrase “provided however that” and then again by adding the phrase “and the period of exercisability” after the phrase “per share exercise price” and before the phrase “shall be adjusted” and then again by deleting the word “and” after the phrase “Common Stock” and before the phrase “the exercise price” and thereafter inserting the phrase “and the time period in which this Warrant may be exercised” after the phrase “the exercise price” and before the phrase “calculated in accordance with subsection (i) above.”

5.           Section 2(iii) of the Warrant is hereby amended by adding the phrase “in which case this Warrant shall become exercisable, in whole or in part, on the Calendar Due Date, provided however, that if, and for so long as, the Company has on file on the Calendar Due Date a registration statement undertaking an IPO that has not yet become effective, then the Calendar Due Date shall be deemed to have occurred on the earlier of (a) the date the undertaken IPO has been abandoned; or (b) after the completion of the IPOas the case may be” at the end of the sentence immediately before the phrase, “and the exercise price shall be $1.

46 per share”.

IN WITNESS WHEREOF, the Parties have executed this Addendum on the dates indicated next to their signatures below.

Ideal Power Inc.

By:                                                     

     Paul Bundschuh, CEO

Date:

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