Document:

Blue Sphere Corporation 8-K

Exhibit
10.2

 

BLUE
SPHERE CORPORATION

 

WARRANT

 

THIS
WARRANT AND THE SECURITIES ISSUABLE UPON ITS EXERCISE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT’), OR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS AND MAY ONLY BE ACQUIRED FOR INVESTMENT PURPOSES
ONLY AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. THIS WARRANT AND THE SECURITIES ISSUABLE
UPON ITS EXERCISE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THIS WARRANT OR SUCH SECURITIES UNDER THE ACT AND QUALIFICATION UNDER APPLICABLE STATE LAW WITHOUT AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION
LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION (THE “SEC”).

 

 

	WARRANT
    NUMBER:	W-JUL-2016-[XXX]
	ISSUANCE
    DATE:	July
    __, 2016

 

 

FOR
VALUE RECEIVED, BLUE SPHERE CORPORATION, as of July __, 2016 (the “Issuance Date”) a Nevada corporation
(the “Company”), hereby certifies that the entity defined in the signature block hereto under “Warrant
Holder”, or their registered assigns (the “Warrant Holder”), is entitled, subject to the terms set forth
below, to purchase from the Company such number of shares (the “Warrant Shares”) of the Company’s common
stock, $0.001 par value per share (“Common Stock”) as defined in the signature block, exercisable at [eleven
cents US (USD $0.11)] per share (the “Exercise Price”), subject to adjustment hereunder. This Warrant may be
exercised any time after issuance through and including the five (5) year anniversary of the Issuance Date (the “Expiration
Date”), subject to the following terms and conditions set out in this Warrant.

 

1.            Registration
of Warrant. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the
“Warrant Register”), in the name of the record Warrant Holder hereof from time to time. The Company may
deem and treat the registered Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Warrant Holder, and for all other purposes, and the Company shall not be affected
by notice to the contrary.

 

2.
            Investment Representation. The Warrant Holder by
accepting this Warrant represents that the Warrant Holder is acquiring this Warrant for its own account or the account of an
affiliate for investment purposes and not with the view to any offering or distribution and that the Warrant Holder will not
sell or otherwise dispose of this Warrant or the underlying Warrant Shares in violation of applicable securities laws. The
Warrant Holder acknowledges that the certificates representing any Warrant Shares will bear a legend indicating that they
have not been registered under the Act and may not be sold by the Warrant Holder except pursuant to an effective registration
statement or pursuant to an exemption from registration requirements of the Act and in accordance with federal and state
securities laws. If this Warrant was acquired by the Warrant Holder pursuant to the exemption from the registration
requirements of the Act afforded by Regulation S thereunder, the Warrant Holder acknowledges and covenants that this Warrant
may not be exercised by or on behalf of a Person during the one year distribution compliance period (as defined in Regulation
S) following the date hereof. “Person” means an individual, partnership, firm, limited liability company,
trust, joint venture, association, corporation, or any other legal entity.

 

    	 		 

    	 

    

 

3.             Validity of Warrant and Issue of Shares. The Company represents and warrants that this Warrant has been duly authorized
and validly issued and warrants and agrees that all of Common Stock that may be issued upon the exercise of the rights represented
by this Warrant will, when issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and free
from all taxes, liens and charges with respect to the issue thereof. The Company further warrants and agrees that during the period
within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved
a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant.

 

4.             Registration
of Transfers and Exchange of Warrants.

 

(a)                
Subject to compliance with the legend set forth on the face of this Warrant, the Company shall register the transfer of any portion
of this Warrant in the Warrant Register, upon surrender of this Warrant with the Form of Assignment attached hereto duly completed
and signed, to the Company at the office specified in or pursuant to Section 10. Upon any such registration or transfer, a new
warrant to purchase Common Stock, in substantially the form of this Warrant (any such new warrant, a “New Warrant”),
evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining
portion of this Warrant not so transferred, if any, shall be issued to the transferring Warrant Holder. The acceptance of the
New Warrant by the transferee thereof shall be deemed the acceptance of such transferee of all of the rights and obligations of
a Warrant Holder of a Warrant.

 

(b)                
This Warrant is exchangeable, upon the surrender hereof by the Warrant Holder to the office of the Company specified in or pursuant
to Section 10 for one or more New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which
may then be purchased hereunder. Any such New Warrant will be dated the date of such exchange.

 

5.             Exercise of Warrants.

 

(a)                
This Warrant shall be exercisable at any time and from time to time from and after the Issuance Date and through and including
the Expiration Date, for such number of Warrant Shares as is indicated in the form of Election to Purchase, which is attached
hereto and incorporated herein as Exhibit A. If less than all of the Warrant Shares which may be purchased under this Warrant
are exercised at any time, the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to
purchase the remaining number of Warrant Shares for which no exercise has been evidenced by this Warrant. At 5:00 P.M., New York
time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value.

 

(b)                
Exercise of this Warrant shall be made upon surrender of this Warrant with an Election to Purchase in the form attached hereto
(or attached to such New Warrant), duly completed and signed to the Company, at its address set forth in Section 10. 

 

(c)                
A “Date of Exercise” means the date on which the Company shall have received (i) this Warrant (or any New Warrant,
as applicable), with an Election to Purchase in the form attached hereto (or attached to such New Warrant), appropriately completed
and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to
be purchased, as set forth herein. 

 

    	 	2	 

    	 

    

 

(d)                
Payment upon exercise may be made at the written option of the Warrant Holder either by cashless exercise, as set forth in Section
6, or in cash, wire transfer or by certified or official bank check payable to the order of the Company equal to the applicable
aggregate purchase price, for the number of Warrant Shares specified in the Election to Purchase (as such exercise number shall
be adjusted to reflect any adjustment in the total number of Warrant Shares issuable to the Warrant Holder per the terms of this
Warrant) and the Warrant Holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully-paid
and non-assessable Warrant Shares determined as provided herein. 

 

(e)                
The Company shall promptly, but in no event later than five (5) business days after the Date of Exercise as defined herein, issue
or cause to be issued and cause to be delivered to or upon the written order of the Warrant Holder and in such name or names as
the Warrant Holder may designate (subject to the restrictions on transfer described in the legend set forth on the face of this
Warrant), a certificate for the Warrant Shares issuable upon such exercise, with such restrictive legend as required by the Act.
If no such restrictive legend is applicable, upon request of the Warrant Holder, the Warrant Shares will be recorded by book entry
with the Company’s transfer agent. Any person so designated by the Warrant Holder to receive Warrant Shares shall be deemed
to have become holder of record of such Warrant Shares as of the Date of Exercise of this Warrant.

 

6.             Cashless Exercise. 

 

(a)                
If at any time after six (6) months following the Issuance Date and prior to the Expiration Date there is not an effective registration
statement on file with the SEC covering the resale of the Warrant Shares by the Warrant Holder, then at such time this Warrant
may also be exercised by means of a cashless exercise. In such event, the Holder shall surrender this Warrant to the Company,
together with a notice of cashless exercise, and the Company shall issue to the Holder the number of Warrant Shares determined
as follows:

 

X
= Y (A-B)/A

 

where:

 

X=The
number of Warrant Shares to be issued to the Holder.

 

Y=The
number of Warrant Shares with respect to which this Warrant is being exercised.

 

A=The
average closing price of Common Stock for the five (5) trading days immediately prior to the Date of Exercise.

 

B=The
Exercise Price.

 

(b)                
For purposes of Rule 144 of the Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Warrant Holder, and the holding period for the Warrant Shares
shall be deemed to have been commenced, on the issue date.

 

7.              Fractional Shares. The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise
of this Warrant. The number of full Warrant Shares that shall be issuable upon the exercise of this Warrant shall be computed
on the basis of the aggregate number of Warrants Shares purchasable on exercise of this Warrant so presented. If any fraction
of a Warrant Share would, except for the provisions of this Section 7, be issuable on the exercise of this Warrant, the Company
shall, at its option, (i) pay an amount in cash equal to the Exercise Price multiplied by such fraction or (ii) round the number
of Warrant Shares issuable, up to the next whole number.

 

    	 	3	 

    	 

    

 

8.              Exercise Price Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are
subject to adjustment from time to time as set forth in this Section 8. If, at any time while this Warrant is outstanding, the
Company shall issue or cause to be issued any rights or warrants to acquire, or any securities, convertible or exchangeable for
shares of Common Stock for a consideration per share less than the Exercise Price then, forthwith upon such issue, the Exercise
Price shall be reduced to the price (calculated to the nearest one hundredth of a cent) determined by multiplying the Exercise
Price in effect immediately prior thereto by a fraction, the numerator of which shall be the sum of (i) the number of shares of
Common Stock outstanding immediately prior to such issuance, and (ii) the number of shares of Common Stock which the aggregate
consideration received (or to be received, assuming exercise in full of such warrants, if applicable) for the issuance of such
additional shares of Common Stock would purchase at such Exercise Price, and the denominator of which shall be the sum of the
number of shares of Common Stock outstanding immediately after the issuance of such additional shares. This Section 8 shall not
apply to the issuance of any rights, options or Common Stock made by the Company to an employee, officer, director or consultant
to the Company, whether under a plan of equity compensation or otherwise.

 

9.              Adjustment for Certain Events. The number, class, and price of Warrant Shares for which this Warrant may be exercised are
subject to adjustment from time to time upon the happening of certain events as follows:

 

(a)               
Subdivisions, Combinations and Other Issuances. If the outstanding shares of Common Stock are divided into a greater number
of shares, by forward stock split or otherwise, or a dividend in stock is paid on the Common Stock, then the number of shares
of Warrant Shares for which the Warrant is then exercisable will be proportionately increased and the Exercise Price will be proportionately
reduced. Conversely, if the outstanding shares of Common Stock are combined into a smaller number of shares of Common Stock, by
reverse stock split or otherwise, then the number of Warrant Shares for which the Warrant is then exercisable will be proportionately
reduced and the Exercise Price will be proportionately increased. The increases and reductions provided for in this Section 9(a)
will be made with the intent and, as nearly as practicable, the effect that neither the percentage of the total equity of
the Company obtainable on exercise of the Warrants nor the price payable for such percentage upon such exercise will be affected
by any event described in this Section 9(a).

(b)              
Merger, Consolidation, Reclassification, Reorganization, Etc. In case of any change in Common Stock through merger, consolidation,
reclassification, reorganization, partial or complete liquidation, purchase of all or substantially all the assets of the Company,
or other change in the capital structure of the Company, then, as a condition of such change, lawful and adequate provision will
be made so that the Warrant Holder will have the right thereafter to receive upon the exercise of the Warrant the kind and amount
of shares of stock or other securities or property to which the Warrant Holder would have been entitled if, immediately prior
to such event, the Warrant Holder had held the number of Warrant Shares obtainable upon the exercise of the Warrant. In any such
case, appropriate adjustment will be made in the application of the provisions set forth herein with respect to the rights and
interest thereafter of the Warrant Holder, to the end that the provisions set forth herein will thereafter be applicable, as nearly
as reasonably may be, in relation to any shares of stock deliverable upon the exercise of the Warrant. The Company will not permit
any change in its capital structure to occur unless the issuer of the shares of stock or other securities to be received by the
Warrant Holder agrees to comply with the provisions of this Warrant.

    	 	4	 

    	 

    

10.           Notice. All notices, requests, demands, claims and other communications hereunder shall be in writing and shall be delivered
by certified or registered mail (first class postage pre-paid), guaranteed overnight delivery, or email transmission if such transmission
is confirmed, by certified or registered mail (first class postage pre-paid) or guaranteed overnight delivery, to the following
addresses (or to such other addresses which such party shall subsequently designate in writing to the other party):

 

(a)If
to the Company:

 

____________________

____________________

____________________

 

with
a copy to:

 

____________________

____________________

____________________

 

 

(b)If
to the Warrant Holder, to the address set forth for notice in the Securities Subscription Agreement, dated as of the date hereof,
between the Warrant Holder and the Company.

 

11.           Miscellaneous.

 

(a)                
This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and permitted
assigns. This Warrant may be amended only in writing and signed by the Company and the Warrant Holder.

 

(b)                
Nothing in this Warrant shall be construed to give to any person or corporation other than the Company and the Warrant Holder
any legal or equitable right, remedy or cause of action under this Warrant; this Warrant shall be for the sole and exclusive benefit
of the Company and the Warrant Holder.

 

(c)                
Without the prior written consent of the Company, this Warrant, or any of the rights granted hereunder, shall not be transferred,
assigned, pledged, hypothecated or otherwise disposed of (whether by operation of law or otherwise) by the Warrant Holder, and
shall not be subject to execution, attachment or similar process, unless (i) an effective registration statement is on file with
the SEC covering the resale of the Warrant Shares by the Warrant Holder, or (ii) the Warrant Shares are otherwise exempt from
the registration requirements under the Securities Act. Any such attempted transfer or disposition of the Warrant or of any rights
granted hereunder contrary to the provisions of this section, or the levy of any attachment or similar process upon the Warrant
or such rights, shall be null and void.

 

(d)                
The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect
any of the provisions hereof.

 

    	 	5	 

    	 

    

 

(e)                
In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonably substitute therefore,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(f)                 
The Warrant Holder shall not, by virtue hereof, be entitled to any voting or other rights of a shareholder of the Company, either
at law or equity, and the rights of the Warrant Holder are limited to those expressed in this Warrant. 

 

(g)                
This Warrant shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles
of conflicts of laws.

 

(h)                
The Company and the Warrant Holder shall submit all disputes arising under this Warrant to arbitration in New York, New York before
a single arbitrator of the American Arbitration Association (the “AAA”). The arbitrator shall be selected by
application of the rules of the AAA, or by mutual agreement of the parties, except that such arbitrator shall be an attorney admitted
to practice law in the State of New York. No party hereto will challenge the jurisdiction or venue provisions as provided in this
section. Nothing in this section shall limit the Warrant Holder’s right to obtain an injunction for a breach of this Agreement
from a court of law. Any injunction obtained shall remain in full force and effect until the arbitrator fully adjudicates the
dispute.

 

[Signature
Page Follows]

 

    	 	6	 

    	 

    

 

IN
WITNESS WHEREOF, the Company and Holder have caused this Warrant to be duly executed by the authorized officer as of the date
first above stated.

 

	 	THE COMPANY:
	 	 	 
	 	blue sphere corporation 
	 	 	 
	 	By:	 
	 	Name:	Shlomi Palas
	 	Title: 	Chief Executive Officer
	 	 	 
	 	 	 
	 	WARRANT HOLDER: 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title: 	 
	 	 	 
	 	Number of Warrants:	 
	 	 	 	 

 

[Signature
Page to Warrant] 

 

    	 		 

    	 

    

 

FORM
OF ELECTION TO PURCHASE

(To
be executed by the Warrant Holder to exercise the right to 

purchase
shares of Common Stock under the foregoing Warrant)

 

Blue
Sphere Corporation

 

Re:
Election to Purchase Shares of Common Stock Under the Warrant

 

Gentlemen:

 

In
accordance with the Warrant enclosed with this Election to Purchase, the undersigned hereby irrevocably elects to purchase _____________
shares of Common Stock of Blue Sphere Corporation at an original Exercise Price of [USD $0.___] per share, subject to adjustment
under the terms and conditions of the Warrant, and encloses herewith $____________ in cash, certified or official bank check(s),
which sum represents the aggregate price for the number of shares of Common Stock to which this Election to Purchase relates,
together with any applicable taxes payable by the undersigned pursuant to the Warrant. Any capitalized terms used but not defined
in this Election to Purchase shall have the meaning ascribed to them in the accompanying Warrant.

 

The
undersigned requests that certificates for the shares of Common Stock issuable upon this exercise be issued in the name of:

 

	 	Name:	 	 
	 	Taxpayer ID:	 	 
	 	Address:	 	 
	 	 	 	 

  

If
the number of shares of Common Stock issuable upon this exercise shall not be all of the shares of Common Stock which the undersigned
is entitled to purchase in accordance with the enclosed Warrant, the undersigned requests that a New Warrant evidencing the right
to purchase the shares of Common Stock not issuable pursuant to the exercise evidenced hereby be issued in the name of and delivered
to:

 

	 	Name:	 	 
	 	Address:	 	 
	 	 	 	 

 

The
undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the
within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities
Act”), or pursuant to an exemption from registration under the Securities Act.

 

HOLDER:

 

	Name:	 	 	 
	 	 	 	 
	 	 	 	 
	By:	 	 	 
	Title:	 	 	 
	Dated:	 	, 	 

 

(Signature
must conform in all respects to name of Holder as specified on the face of the Warrant)

 

    	 		 

    	 

    

 

NOTICE
OF CASHLESS EXERCISE

 

 

 

  

TO:
Blue Sphere Corporation

[Address]

Attn:  Secretary

 

 

The
undersigned hereby elects to purchase ______________ shares (the “Shares”) of the Common Stock of Blue
Sphere Corporation, at an original Exercise Price of [USD $0.___] per share, pursuant to the cashless exercise provision of Section
6 of the attached Warrant.

 

Please
issue a certificate or certificates representing the Shares in the name of the undersigned or in such other name as is specified
below:

 

	 	Name:	 	 
	 	Taxpayer ID:	 	 
	 	Address:	 	 

 

 

The
undersigned represents that the undersigned is an “accredited investor,” and that the Shares are being acquired for
the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof,
and that the undersigned has no present intention of distributing or reselling such shares.

 

HOLDER:

 

	Name:	 	 	 
	 	 	 	 
	 	 	 	 
	By:	 	 	 
	Title:	 	 	 
	Dated:	 	,EX-10.1

 Exhibit 10.1 

Gaiam, Inc. 
 Restricted
Stock Unit Award Agreement 
 This RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”) made as of this
                    , 2016 (the “Award Date”), between Gaiam, Inc., a Colorado corporation (the “Company”),
and                      (the “Grantee”), is made pursuant to the terms of the Gaiam, Inc. 2009 Long-Term Incentive Plan, as
amended from time to time (the “Plan”). Capitalized terms used herein but not defined shall have the meanings set forth in the Plan. 

Section 1. Exchange and Cancellation of Gaia RSU. The Grantee previously received a restricted stock unit grant under the
Gaia, Inc. Long-term Deferred Equity Compensation Plan (the “Gaia Plan”) pursuant to the Restricted Stock Unit Award Agreement dated
                    , 20         (the “Gaia RSU”). Upon the sale by the
Company of all assets and liabilities primarily related to or used in the Company’s fitness, yoga, and wellness consumer products business (the “Gaiam Sale”) and as approved by the Gaiam Compensation Committee, the Company has
determined to exchange certain restricted stock units granted under the Gaia Plan for Restricted Stock Units granted under the Plan pursuant to the authority granted under the Gaia Plan. Accordingly, pursuant to the authority granted under the Gaia
Plan and the approval by the Gaiam Compensation Committee and in consideration of the Restricted Stock Units granted under this Agreement, effective as of the date of this Agreement, the Grantee hereby surrenders all rights under the Gaia RSU, and
the Gaia RSU is hereby cancelled, terminated, and of no further force and effect. 
 Section 2. Restricted Stock Unit
Award. The Company hereby grants to the Grantee, on the terms and conditions hereinafter set forth, an Award of                     
Restricted Stock Units (the “RSUs”), effective as of the Award Date. The RSUs are notional, non-voting units of measurement, which will entitle the Grantee to receive, subject to the terms hereof, a payment in Class A Shares of
the Company (collectively, “Shares” and singularly, a “Share”) equal to one Share for each vested RSU. In no event will fractional Shares be issued pursuant to this Award. 

Section 3. Vesting, Forfeiture and Termination of Award. The RSUs will vest on March 16, 2020, provided that the
Grantee is still an employee or director of the Company on such date. The RSUs (including any Dividend Equivalents declared thereon) prior to vesting shall be forfeited and of no further force and effect if the Grantee’s employment terminates
for any reason before March 16, 2020, including, but not limited to, involuntary termination. 
 Section 4.
Rights of Grantee. Subject to the otherwise applicable provisions of this Agreement, the Grantee shall have no dividend, voting, or any other rights as a stockholder of the Company with respect to any RSUs. The grant of an Award of RSUs pursuant
to the Plan shall not be deemed the grant of a property interest in any assets of the Company and the rights of the recipient of RSUs to benefits under the Plan shall be solely those of a general, unsecured creditor of the Company. Notwithstanding
the foregoing, if the Company declares a dividend on its’ Shares, as of the record date for such dividend, the Grantee shall be credited with an additional number of RSUs equal to (A) the number of RSUs the Grantee holds on such record
date, multiplied by (B) the amount paid as a dividend on each Share on such date, divided by the Fair Market Value of a Share on the record date. Any additional RSUs granted pursuant to the preceding sentence automatically shall be subject to
the vesting provisions set forth above in Section 3.  

 Section 5. Payment of Award 

(a) General. Payment with respect to the vested RSUs shall be made in Shares within sixty (60) days following the date on which
such RSUs vest. 
 (b) Withholding. The payment of the RSUs is subject to withholding of all Federal, state and local income taxes
and other amounts required by law to be paid or withheld in the amount determined by the Company (the “Withholding Tax Amount”). Unless you elect otherwise and the Company consents the Company shall satisfy the Withholding Tax
Amount by withholding from the Shares to be delivered to the Grantee that number of whole Shares having an aggregate Fair Market Value on the relevant payment date equal to or less than the Withholding Tax Amount, and the Grantee shall be
responsible for paying the difference, if any between the Tax Withholding Amount and the Fair Market Value of the whole number of Shares that are withheld pursuant to the preceding sentence. Any cash payment required to be made by the Grantee with
respect to the Withholding Tax Amount may be made by wire transfer to such account as the Company may direct or by any other means acceptable to the Company. 

Section 6. Restrictions on Transfer. The RSUs covered hereby may not be sold, assigned, transferred, encumbered,
hypothecated or pledged by the Grantee and such action shall be null and void and shall result in the immediate forfeiture of the entire award made to the Grantee who attempted to effect such transfer. 

Section 7. Investment Representation. Upon the acquisition of the Shares at a time when there is not in effect a
registration statement under the Securities Act of 1933 relating to the Shares, the Grantee hereby represents and warrants, and by virtue of such acquisition shall be deemed to represent and warrant, to the Company that the Shares shall be acquired
for investment and not with a view to the distribution thereof, and not with any present intention of distributing the same, and the Grantee shall provide the Company with such further representations and warranties as the Company may require in
order to ensure compliance with applicable federal and state securities, blue sky and other laws. No Share shall be acquired unless and until the Company and/or the Grantee shall have complied with all applicable federal or state registration,
listing and/or qualification requirements and all other requirements of law or of any regulatory agencies having jurisdiction, unless the Compensation Committee of the Board has received evidence satisfactory to it that the Grantee may acquire the
Shares pursuant to an exemption from registration under the applicable securities laws. Any determination in this connection by the Committee shall be final, binding and conclusive. The Company reserves the right to legend any certificate or book
entry representation of the Shares conditioning sales of such shares upon compliance with applicable federal and state securities laws and regulations. 

Section 8. Adjustments. The Award shall be subject to the provisions of Section 15 of the Plan relating to adjustments
for recapitalizations, reclassifications and other changes in the Company’s corporate structure. 
 Section 9. No Right
to Continue to Provide Service. Nothing in this Agreement shall confer upon the Grantee any right to continue to provide service, in any capacity, to the Company or to interfere in any way with any right of the Company to terminate the
Grantee’s service to the Company at any time. 
 Section 10. Data Privacy. The Grantee agrees that all of the
Grantee’s information that is described or referenced in this Agreement and the Plan may be used by the Company, its affiliates and the designated broker and its affiliates to administer and manage the Grantee’s participation in the Plan.

 Section 11. Headings. The section headings in this Agreement are inserted only as a
matter of convenience, and in no way define, limit, extend or interpret the scope of this Agreement or of any particular section. 

Section 12. Number and Gender. Throughout this Agreement, as the context may require, (a) the masculine gender includes the
feminine and the neuter gender includes the masculine and the feminine; (b) the singular tense and number includes the plural, and the plural tense and number includes the singular; (c) the past tense includes the present, and the present
tense includes the past; (d) references to parties, sections, paragraphs and exhibits mean the parties, sections, paragraphs and exhibits of and to this Agreement; and (e) periods of days, weeks or months mean calendar days, weeks or
months, except as otherwise specified. 
 Section 13. Severability. If any provision of this Agreement is held to be invalid,
illegal or unenforceable by any court or arbitrator of competent jurisdiction, then solely as to such jurisdiction and subject to this Section 13, that provision shall be limited (“blue-penciled”) to the minimum extent necessary so
that this Agreement shall otherwise remain enforceable in full force and effect in such jurisdiction and without affecting in any way the enforceability of this Agreement in other jurisdictions. To the extent such provision cannot be so modified,
the offending provision shall, solely as to such jurisdiction, be deemed severable from the remainder of this Agreement, and the remaining provisions contained in this Agreement shall be construed to preserve to the maximum permissible extent the
intent and purposes of this Agreement in such jurisdiction and without affecting in any way the enforceability of this Agreement in other jurisdictions. 

Section 14. Construction. This Agreement and the Award hereunder are granted by the Company pursuant to the Plan and are in
all respects subject to the terms and conditions of the Plan. The Grantee hereby acknowledges that a copy of the Plan has been delivered to the Grantee and accepts the RSUs hereunder subject to all terms and provisions of the Plan, which is
incorporated herein by reference. In the event of a conflict or ambiguity between any term or provision contained herein and a term or provision of the Plan, the Plan will govern and prevail. The construction of and decisions under the Plan and this
Agreement are vested in the Committee, whose determinations shall be final, conclusive and binding upon the Grantee and the Company. 

Section 15. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of
Colorado, without regard to the principles of conflicts of laws. 
 Section 16. Counterparts. This Agreement may be
executed in counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 

Section 17. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the legatees, distributees,
and personal representatives of the Grantee and the successors of the Company. 
 Section 18. Notices. Any notice that is
required under this Agreement shall be in writing and delivered personally or by mail, addressed (a) if to the Company, at its corporate headquarters, attention: Jirka Rysavy and Paul Tarell, Jr. and (b) if to the Grantee, at the address
in the Grantee’s then current personnel records. Such notice shall be deemed given upon receipt. 
 Section 19. Entire
Agreement. This Agreement and the Plan constitute the entire agreement between the parties with respect to the subject matter hereof and thereof, merging any and all prior agreements. 

 Section 20. Unsecured Creditor Status. The grant of RSUs constitutes a mere
unsecured promise by the Company to pay the Grantee the benefits described in the grant and the Grantee shall be a general unsecured creditor of the Company with respect to the benefits payable hereunder. 

Section 21, Acceptance. The Grantee acknowledges receipt of a copy of the Plan and this Agreement and that he or she has
read and understands the terms and provisions thereof, and accepts the RSUs subject to all of the terms and conditions of the Plan and this Agreement. If a Grantee does not return an executed copy of this Agreement within seven (7) days of
delivery of this Agreement to such Grantee, the Award shall be null and void and of no effect. 
 Section 22. Section 409A;
Taxation. The compensation provided under this Agreement is intended to constitute a “short-term deferral” within the meaning of Treasury Regulation Section 1.409A-1(b)(4) and be exempt from the requirements of Section 409A
of the Internal Revenue Code of 1986 (“Section 409A”), and this Agreement shall be interpreted and construed in accordance with such intent. Where this Agreement specifies a payment or settlement (for purposes of this
Section 22 a “payment”) period, the actual date of payment within such specified period shall be within the sole discretion of the Company, and the Grantee shall have no right (directly or indirectly) to determine the year in which
such payment is made. In the event that the Company determines that any compensation provided hereunder may violate applicable requirements of Section 409A, the Company (without any obligation to do so or obligation to indemnify the Grantee for
any failure to do so) may adopt, without the consent of the Grantee, such amendments to this Agreement or take any other actions that the Company in its sole discretion determines are necessary or appropriate for such compensation to either
(a) be exempt from the requirements of Section 409A or (b) comply with the requirements of Section 409A. In no event does the Company guarantee any particular tax consequences, outcome or tax liability to the Grantee. No
provision of this Agreement shall be interpreted or construed to transfer any liability imposed on the Grantee under the Code, including liabilities for failure to comply with the requirements of Section 409A, from the Grantee or any other
individual to the Company or its affiliates. 
 Section 23. Restrictive Covenants. (1)
(A) Non-Disparagement. During Grantee’s employment and thereafter, Grantee will not make any disclosure, issue any public statements or otherwise cause to be disclosed any information which is designed, intended or might reasonably be
anticipated to discourage suppliers, customers or employees of the Company or otherwise have a negative impact or adverse effect on the Company. (B) Post-employment Assistance. Following Grantee’s employment, Grantee will provide
assistance reasonably requested by the Company in connection with actions taken by Grantee while employed by the Company, including but not limited to assistance in connection with any lawsuits or other claims against the Company arising from events
during the period in which Grantee was employed. (C) Confidential Information. In consideration of the Award, the Grantee agrees (i) not to disclose to any third party any trade secrets or any other confidential information of the
Company (including but not limited to cost or pricing information, customer lists, commission plans, supply information, internal business procedures, market studies, expansion plans, potential acquisitions, terms of any acquisition or potential
acquisition or the existence of any negotiations concerning the same or any similar non-public information relating to the Company’s internal operations, business policies or practices) acquired during Grantee’s employment by the Company
or after the termination of such employment, or (ii) use or permit the use of any of the Company’s trade secrets or confidential information in any way to compete (directly or indirectly) with the Company or in any other manner adverse to
the Company. (D) Non-Competition/Non-Solicitation. Without the prior written consent of the Company, signed by the Company’s Chairman, Grantee will not, during the term of Grantee’s employment by the

 
Company or for a period of two (2) years thereafter accept employment with, serve as a consultant to, or accept compensation from any person, firm or corporation (including any new business
started by Grantee, either alone or with others) whose products and or services compete with those offered by the Company, in any geographic market in which the Company is then doing business or to Grantee’s knowledge plans to do business.
Without the prior written consent of the Company, signed by the Company’s Chairman, Grantee will not, during the term of Grantee’s employment by the Company or for a period of five (5) years thereafter (i) contact or solicit any
customers of the Company for the purposes of diverting any existing or future business of such customers to a competing source, (ii) contact or solicit any vendors to the Company (directly or indirectly) for the purpose of causing, inviting or
encouraging any such vendor to alter or terminate his, her or its business relationship with the Company, or (iii) contact or solicit any employees of the Company (directly or indirectly) for the purpose of causing, inviting or encouraging any
such employee to alter or terminate his, her or its employment relationship with the Company.
 (2) Enforcement of Rights. (A)The Company
will be entitled to enforce its rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights to which it may be entitled. Grantee agrees and
acknowledges that money damages may not be an adequate remedy for breach of the provisions of this Agreement and that the Company may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance
and/or injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement. (B) Grantee agrees that this covenant is reasonable with respect to its duration, geographic area and scope. It is the desire and
intent of the parties that the provisions of this Section 23 shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular
portion of this Section 23 shall be adjudicated to be invalid or unenforceable, this Section 23 shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid or unenforceable, such deletion to apply only with
respect to the operation of this Section 23 in the particular jurisdiction in which such adjudication is made. 
 IN WITNESS WHEREOF,
the Company and the Grantee have executed this Agreement, effective as of the date first above written. 
  

			
	GAIAM, INC.
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	GRANTEE
		
	By:	 	 
	Name:

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