Document:

Exhibit 10.1

 

RENESOLA LTD 

 

2007 SHARE INCENTIVE PLAN 

AS AMENDED AND RESTATED 

AS OF JANUARY 21, 2009, 

AUGUST 20, 2010

AND AUGUST 29, 2016

 

 

ARTICLE 1

 

PURPOSE

 

The purpose of this 2007 Share Incentive
Plan, as amended and restated as of January 21, 2009, August 20, 2010 and August 29, 2016 (the “Plan”), is to
promote the success and enhance the value of ReneSola Ltd, a company incorporated under the laws of the British Virgin Islands
(the “Company”) by linking the personal interests of the members of the Board, Employees, and Consultants to
those of the Company’s shareholders and by providing such individuals with an incentive for outstanding performance to generate
superior returns to the Company’s shareholders. The Plan is further intended to provide flexibility to the Company in its
ability to motivate, attract, and retain the services of members of the Board, Employees, and Consultants upon whose judgment,
interest, and special effort the successful conduct of the Company’s operation is largely dependent.

 

ARTICLE 2

 

DEFINITIONS AND CONSTRUCTION

 

Wherever the following terms are used in
the Plan, they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall
include the plural where the context so indicates.

 

2.1“Applicable Laws”
means (i) the laws of the British Virgin Islands as they relate to the Company and its Shares; (ii) the legal requirements relating
to the Plan and the Awards under applicable provisions of the corporate, securities, tax and other laws, rules, regulations and
government orders; and (iii) the rules of any applicable stock exchange or national market system, of any jurisdiction applicable
to Awards granted to residents therein.

 

2.2“Article” means
an article of this Plan.

 

2.3“Award” means
an Option, Restricted Share or Restricted Share Units award granted to a participant pursuant to the Plan.

 

2.4“Award Agreement”
means any written agreement, contract, or other instrument or document evidencing an Award, including through electronic medium.

 

2.5“Board” means
the Board of Directors of the Company from time to time.

 

     

     

    

 

2.6“Change in Control”
means a change in ownership or control of the Company effected through either of the following transactions:

 

(a)the direct or indirect acquisition
by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee
benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company)
of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities possessing more than fifty percent
(50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made
directly to the Company’s shareholders which a majority of the Incumbent Board (as defined below) who are not affiliates
or associates of the offeror under Rule 12b-2 promulgated under the Exchange Act do not recommend such shareholders accept, or

 

(b)the individuals who, as of the Effective
Date, are members of the Board (the “Incumbent Board”), cease for any reason to constitute at least fifty percent (50%)
of the Board; provided that if the election, or nomination for election by the Company’s shareholders, of any new member
of the Board is approved by a vote of at least fifty percent (50%) of the Incumbent Board, such new member of the Board shall be
considered as a member of the Incumbent Board.

 

2.7“Code” means the
Internal Revenue Code of 1986 of the United States, as amended.

 

2.8“Committee” means
the committee of the Board described in Article 9.

 

2.9“Consultant” means
any consultant or adviser if: (a) the consultant or adviser renders bona fide services to a Service Recipient; (b) the services
rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction
and do not directly or indirectly promote or maintain a market for the Company’s securities; and (c) the consultant or adviser
is a natural person who has contracted directly with the Service Recipient to render such services.

 

2.10“Corporate Transaction”
means any of the following transactions, provided, however, that the Committee shall determine under (d) and (e) whether multiple
transactions are related, and its determination shall be final, binding and conclusive:

 

(a)an amalgamation, arrangement or consolidation
or scheme of arrangement in which the Company is not the surviving entity, except for a transaction the principal purpose of which
is to change the jurisdiction in which the Company is incorporated;

 

(b)the sale, transfer or other disposition
of all or substantially all of the assets of the Company;

 

(c)the completion of a voluntary or insolvent
liquidation or dissolution of the Company;

 

(d)any reverse takeover or series of related
transactions culminating in a reverse takeover (including, but not limited to, a tender offer followed by a reverse takeover) in
which the Company is the surviving entity but (A) the Shares of the Company outstanding immediately prior to such takeover are
converted or exchanged by virtue of the takeover into other property, whether in the form of securities, cash or otherwise, or
(B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities are transferred to a person or persons different from those who held such securities immediately prior to such takeover
or the initial transaction culminating in such takeover, but excluding any such transaction or series of related transactions that
the Committee determines shall not be a Corporate Transaction; or

 

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(e)acquisition in a single or series of
related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit
plan) of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities possessing more than fifty
percent (50%) of the total combined voting power of the Company’s outstanding securities but excluding any such transaction
or series of related transactions that the Committee determines shall not be a Corporate Transaction.

 

2.11“Disability”
means that the Participant qualifies to receive long-term disability payments under the Service Recipient’s long-term disability
insurance program, as it may be amended from time to time, to which the Participant provides services regardless of whether the
Participant is covered by such policy. If the Service Recipient to which the Participant provides service does not have a long-term
disability plan in place, “Disability” means that a Participant is unable to carry out the responsibilities and functions
of the position held by the Participant by reason of any medically determinable physical or mental impairment for a period of not
less than ninety (90) consecutive days. A Participant will not be considered to have incurred a Disability unless he or she furnishes
proof of such impairment sufficient to satisfy the Committee in its discretion.

 

2.12“Effective Date”
shall have the meaning set forth in Section 10.1.

 

2.13“Employee” means
any person, including an officer or member of the Board of the Company, any Parent or Subsidiary of the Company, who is in the
employ of a Service Recipient, subject to the control and direction of the Service Recipient as to both the work to be performed
and the manner and method of performance. The payment of a director’s fee by a Service Recipient shall not be sufficient
to constitute “employment” by the Service Recipient.

 

2.14“Exchange Act”
means the Securities Exchange Act of 1934 of the United States, as amended.

 

2.15“Fair Market Value”
means, as of any date, the value of Shares determined as follows:

 

(a)If the Shares are listed on one or
more established stock exchanges or national market systems, including without limitation, The New York Stock Exchange, its Fair
Market Value shall be the closing sales price for such shares (or the closing bid, if no sales were reported) as quoted on the
principal exchange or system on which the Shares are listed (as determined by the Committee) on the date of determination (or,
if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales
price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Committee deems reliable;

 

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(b)If the Shares are regularly quoted
on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its Fair Market Value
shall be the closing sales price for such shares as quoted on such system or by such securities dealer on the date of determination,
but if selling prices are not reported, the Fair Market Value of a Share shall be the mean between the high bid and low asked prices
for the Shares on the date of determination (or, if no such prices were reported on that date, on the last date such prices were
reported), as reported in The Wall Street Journal or such other source as the Committee deems reliable; or

 

(c)In the absence of an established market
for the Shares of the type described in (a) and (b), above, the Fair Market Value thereof shall be determined by the Committee
in good faith and in its discretion by reference to (i) the placing price of the latest private placement of the Shares and the
development of the Company’s business operations and the general economic and market conditions since such latest private
placement, (ii) other third party transactions involving the Shares and the development of the Company’s business operation
and the general economic and market conditions since such sale, (iii) an independent valuation of the Shares, or (iv) such other
methodologies or information as the Committee determines to be indicative of Fair Market Value, relevant.

 

2.16“Incentive Share Option”
means an Option that is intended to meet the requirements of Section 422 of the Code or any successor provision thereto.

 

2.17“Independent Director”
means a member of the Board who is not an Employee of the Company.

 

2.18“Non-Employee Director”
means a member of the Board who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3) under the Exchange
Act, or any successor definition adopted by the Board.

 

2.19“Non-Qualified Share Option”
means an Option that is not intended to be an Incentive Share Option.

 

2.20“Option” means
a right granted to a Participant pursuant to Article 5 of the Plan to purchase a specified number of Shares at a specified price
during specified time periods. An Option may be either an Incentive Share Option or a Non-Qualified Share Option.

 

2.21“Participant”
means a person who, as a member of the Board, Consultant or Employee, has been granted an Award pursuant to the Plan.

 

2.22“Parent” means
a parent corporation under Section 424(e) of the Code.

 

2.23“Plan” means
this 2007 Share Incentive Award Plan, as it may be amended from time to time.

 

2.24“Related Entity”
means any business, corporation, partnership, limited liability company or other entity in which the Company, a Parent or Subsidiary
of the Company holds a substantial ownership interest, directly or indirectly but which is not a Subsidiary and which the Board
designates as a Related Entity for purposes of the Plan.

 

2.25“Restricted Share”
means a Share awarded to a Participant pursuant to Article 6 that is subject to certain restrictions and may be subject to risk
of forfeiture.

 

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2.26“Restricted Share Unit”
means the right granted to a Participant pursuant to Article 6 to receive a Share at a future date.

 

2.27“Securities Act”
means the Securities Act of 1933 of the United States, as amended.

 

2.28“Service Recipient”
means the Company, any Parent or Subsidiary of the Company and any Related Entity to which a Participant provides services as an
Employee, Consultant or as a Director.

 

2.29“Share” means
a share of the Company, and such other securities of the Company that may be substituted for Shares pursuant to Article 8.

 

2.30“Subsidiary”
means any corporation or other entity of which a majority of the outstanding voting shares or voting power is beneficially owned
directly or indirectly by the Company.

 

2.31“Trading Date”
means the closing of the first sale to the general public of the Shares pursuant to an effective registration statement under Applicable
Law, which results in the Shares being publicly traded on one or more established stock exchanges or national market systems.

 

ARTICLE 3

 

SHARES SUBJECT TO THE PLAN

 

3.1Number of Shares.

 

(a)Subject to the provisions of Article
8 and Section 3.1(b), the maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive Share
Options) is 12,500,000 Shares.

 

(b)To the extent that an Award terminates,
expires, or lapses for any reason, any Shares subject to the Award shall again be available for the grant of an Award pursuant
to the Plan. To the extent permitted by Applicable Laws, Shares issued in assumption of, or in substitution for, any outstanding
awards of any entity acquired in any form or combination by the Company or any Parent or Subsidiary of the Company shall not be
counted against Shares available for grant pursuant to the Plan. Shares delivered by the Participant or withheld by the Company
upon the exercise of any Award under the Plan, in payment of the exercise price thereof or tax withholding thereon, may again be
optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a). If any Restricted Shares are forfeited by
the Participant or repurchased by the Company, such Shares may again be optioned, granted or awarded hereunder, subject to the
limitations of Section 3.1(a). Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned, granted
or awarded if such action would cause an Incentive Share Option to fail to qualify as an incentive share option under Section 422
of the Code.

 

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3.2Shares Distributed. Any Shares
issued pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares, treasury Shares (subject to Applicable
Laws) or Shares purchased on the open market. Additionally, in the discretion of the Committee, American Depository Shares in an
amount equal to the number of Shares which otherwise would be distributed pursuant to an Award may be distributed in lieu of Shares
in settlement of any Award. If the number of Shares represented by an American Depository Share is other than on a one-to-one basis,
the limitations of Section 3.1 shall be adjusted to reflect the distribution of American Depository Shares in lieu of Shares.

 

ARTICLE 4

 

ELIGIBILITY AND PARTICIPATION

 

4.1Eligibility. Persons eligible
to participate in this Plan include Employees, Consultants, and all members of the Board, as determined by the Committee.

 

4.2Participation. Subject to
the provisions of the Plan, the Committee may, from time to time, select from among all eligible individuals, those to whom Awards
shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be granted an Award
pursuant to this Plan.

 

4.3Jurisdictions. In order to
assure the viability of Awards granted to Participants employed in various jurisdictions, the Committee may provide for such special
terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom applicable in
the jurisdiction in which the Participant resides or is employed. Moreover, the Committee may approve such supplements to, or amendments,
restatements, or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby
affecting the terms of the Plan as in effect for any other purpose; provided, however, that no such supplements, amendments,
restatements, or alternative versions shall increase the share limitations contained in Section 3.1 of the Plan. Notwithstanding
the foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any Applicable
Laws.

 

ARTICLE 5

 

OPTIONS

 

5.1General. The Committee is
authorized to grant Options to Participants on the following terms and conditions:

 

(a)Exercise Price. The exercise
price per Share subject to an Option shall be determined by the Committee and set forth in the Award Agreement which may be a fixed
or variable price related to the Fair Market Value of the Shares; provided, however, that no Option may be granted to an individual
subject to taxation in the United States at less than the Fair Market Value on the date of grant. The exercise price per Share
subject to an Option may be adjusted in the absolute discretion of the Committee, the determination of which shall be final, binding
and conclusive. For the avoidance of doubt, to the extent not prohibited by Applicable Law or any exchange rule, a repricing of
Options mentioned in the preceding sentence shall be effective without the approval of the Company’s shareholders or the
approval of the Participants. Notwithstanding the foregoing, the exercise price per Share subject to an Option shall not be increased
without the approval of the Participants.

 

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(b)Time and Conditions of Exercise.
The Committee shall determine the time or times at which an Option may be exercised in whole or in part, including exercise prior
to vesting; provided that the term of any Option granted under the Plan shall not exceed ten years, except as provided in
Section 11.1. The Committee shall also determine any conditions, if any, that must be satisfied before all or part of an Option
may be exercised.

 

(c)Payment. The Committee shall
determine the methods by which the exercise price of an Option may be paid, the form of payment, including, without limitation
(i) cash or check denominated in U.S. Dollars, (ii) to the extent permissible under the Applicable Laws, cash or check in Chinese
Renminbi, (iii) cash or check denominated in any other local currency as approved by the Committee, (iv) Shares held for such period
of time as may be required by the Committee in order to avoid adverse financial accounting consequences and having a Fair Market
Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof, (v) after the Trading
Date the delivery of a notice that the Participant has placed a market sell order with a broker with respect to Shares then issuable
upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale
to the Company in satisfaction of the Option exercise price; provided that payment of such proceeds is then made to the
Company upon settlement of such sale, (vi) other property acceptable to the Committee with a Fair Market Value equal to the exercise
price, or (vii) any combination of the foregoing. Notwithstanding any other provision of the Plan to the contrary, no Participant
who is a member of the Board or an “executive officer” of the Company within the meaning of Section 13(k) of the Exchange
Act shall be permitted to pay the exercise price of an Option in any method which would violate Section 13(k) of the Exchange Act.

 

(d)Evidence of Grant. All Options
shall be evidenced by an Award Agreement between the Company and the Participant. The Award Agreement shall include such additional
provisions as may be specified by the Committee.

 

5.2Incentive Share Options. Incentive
Share Options may be granted to Employees of the Company, a Parent or Subsidiary of the Company. Incentive Share Options may not
be granted to Employees of a Related Entity or to Independent Directors or Consultants. The terms of any Incentive Share Options
granted pursuant to the Plan, in addition to the requirements of Section 5.1, must comply with the following additional provisions
of this Section 5.2:

 

(a)Expiration of Option. An Incentive
Share Option may not be exercised to any extent by anyone after the first to occur of the following events:

 

(i)Ten years from the date it is granted,
unless an earlier time is set in the Award Agreement;

 

(ii)Three months after the Participant’s
termination of employment as an Employee (save in the case of termination on account of Disability or death); and

 

(iii)One year after the date of the
Participant’s termination of employment or service on account of Disability or death. Upon the Participant’s Disability
or death, any Incentive Share Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s
legal representative or representatives, by the person or persons entitled to do so pursuant to the Participant’s last will
and testament, or, if the Participant fails to make testamentary disposition of such Incentive Share Option or dies intestate,
by the person or persons entitled to receive the Incentive Share Option pursuant to the applicable laws of descent and distribution.

 

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(b)Individual Dollar Limitation.
The aggregate Fair Market Value (determined as of the time the Option is granted) of all Shares with respect to which Incentive
Share Options are first exercisable by a Participant in any calendar year may not exceed U.S.$100,000 or such other limitation
as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive Share Options are first exercisable
by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Share Options.

 

(c)Ten Percent Owners. An Incentive
Share Option shall be granted to any individual who, at the date of grant, owns Shares possessing more than ten percent of the
total combined voting power of all classes of shares of the Company only if such Option is granted at a price that is not less
than 110% of Fair Market Value on the date of grant and the Option is exercisable for no more than five years from the date of
grant.

 

(d)Transfer Restriction. The Participant
shall give the Company prompt notice of any disposition of Shares acquired by exercise of an Incentive Share Option within (i)
two years from the date of grant of such Incentive Share Option or (ii) one year after the transfer of such Shares to the Participant.

 

(e)Expiration of Incentive Share Options.
No Award of an Incentive Share Option may be made pursuant to this Plan after the tenth anniversary of the Effective Date.

 

(f)Right to Exercise. During a
Participant’s lifetime, an Incentive Share Option may be exercised only by the Participant.

 

ARTICLE 6

 

RESTRICTED SHARES AND RESTRICTED SHARE
UNITS

 

6.1Grant of Restricted Shares.
The Committee is authorized to make Awards of Restricted Shares and/or Restricted Share Units to any Participant selected by the
Committee in such amounts and subject to such terms and conditions as determined by the Committee. All Awards of Restricted Shares
shall be evidenced by an Award Agreement.

 

6.2Issuance and Restrictions.
Restricted Shares shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including,
without limitation, limitations on the right to vote Restricted Shares or the right to receive dividends on the Restricted Share).
These restrictions may lapse separately or in combination at such times, pursuant to such circumstances, in such installments,
or otherwise, as the Committee determines at the time of the grant of the Award or thereafter.

 

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6.3Forfeiture/Repurchase. Except
as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of employment or
service during the applicable restriction period, Restricted Shares that are at that time subject to restrictions shall be forfeited
or repurchased in accordance with the Award Agreement; provided, however, that the Committee may (a) provide in any Restricted
Share Award Agreement that restrictions or forfeiture and repurchase conditions relating to Restricted Shares will be waived in
whole or in part in the event of terminations resulting from specified causes, and (b) in other cases waive in whole or in part
restrictions or forfeiture and repurchase conditions relating to Restricted Shares.

 

6.4Certificates for Restricted Shares.
Restricted Shares granted pursuant to the Plan may be evidenced in such manner as the Committee shall determine. If certificates
representing Restricted Shares are registered in the name of the Participant, certificates must bear an appropriate legend referring
to the terms, conditions, and restrictions applicable to such Restricted Shares, and the Company may, at its discretion, retain
physical possession of the certificate until such time as all applicable restrictions lapse.

 

6.5Restricted Share Units. At
the time of grant, the Committee shall specify the date or dates on which the Restricted Share Units shall become fully vested
and nonforfeitable, and may specify such conditions to vesting as it deems appropriate. At the time of grant, the Committee shall
specify the maturity date applicable to each grant of Restricted Share Units which shall be no earlier than the vesting date or
dates of the Award and may be determined at the election of the grantee. On the maturity date, the Company shall, subject to Sections
7.4 and 7.5, transfer to the Participant one unrestricted, fully transferable Share for each Restricted Share Unit scheduled to
be paid out on such date and not previously forfeited.

 

ARTICLE 7

 

PROVISIONS APPLICABLE TO AWARDS

 

7.1Award Agreement. Awards under
the Plan shall be evidenced by Award Agreements that set forth the terms, conditions and limitations for each Award which may include
the term of an Award, the provisions applicable in the event the Participant’s employment or service terminates, and the
Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award.

 

7.2Limits on Transfer. No right
or interest of a Participant in any Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the
Company or a Subsidiary, or shall be subject to any lien, obligation, or liability of such Participant to any other party other
than the Company or a Subsidiary. Except as otherwise provided by the Committee, no Award shall be assigned, transferred, or otherwise
disposed of by a Participant other than by will or the laws of descent and distribution. The Committee by express provision in
the Award or an amendment thereto may permit an Award (other than an Incentive Share Option) to be transferred to, exercised by
and paid to certain persons or entities related to the Participant, including but not limited to members of the Participant’s
family, charitable institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of the Participant’s
family and/or charitable institutions, or to such other persons or entities as may be expressly approved by the Committee, pursuant
to such conditions and procedures as the Committee may establish. Any permitted transfer shall be subject to the condition that
the Committee receive evidence satisfactory to it that the transfer is being made for estate and/or tax planning purposes (or to
a “blind trust” in connection with the Participant’s termination of employment or service with the Company or
a Subsidiary to assume a position with a governmental, charitable, educational or similar non-profit institution) and on a basis
consistent with the Company’s lawful issue of securities.

 

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7.3Beneficiaries. Notwithstanding
Section 7.2, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the
Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal
guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions
of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement otherwise
provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If the Participant is married and
resides in a community property state, a designation of a person other than the Participant’s spouse as his or her beneficiary
with respect to more than 50% of the Participant’s interest in the Award shall not be effective without the prior written
consent of the Participant’s spouse. If no beneficiary has been designated or survives the Participant, payment shall be
made to the person entitled thereto pursuant to the Participant’s will or the laws of descent and distribution. Subject to
the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation
is filed with the Committee.

 

7.4Share Certificates. Notwithstanding
anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing Shares pursuant
to the exercise of any Award, unless and until the Board has determined, with advice of counsel, that the issuance and delivery
of such certificates is in compliance with all Applicable Laws, regulations of governmental authorities and, if applicable, the
requirements of any exchange on which the Shares are listed or traded. All Share certificates delivered pursuant to the Plan are
subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with all Applicable
Laws, and the rules of any national securities exchange or automated quotation system on which the Shares are listed, quoted, or
traded. The Committee may place legends on any Share certificate to reference restrictions applicable to the Share. In addition
to the terms and conditions provided herein, the Board may require that a Participant make such reasonable covenants, agreements,
and representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements.
The Committee shall have the right to require any Participant to comply with any timing or other restrictions with respect to the
settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Committee.

 

7.5Paperless Administration.
Subject to Applicable Laws, the Committee may make Awards, provide applicable disclosure and procedures for exercise of Awards
by an internet website or interactive voice response system for the paperless administration of Awards.

 

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7.6Foreign Currency. A Participant
may be required to provide evidence that any currency used to pay the exercise price of any Award were acquired and taken out of
the jurisdiction in which the Participant resides in accordance with Applicable Laws, including foreign exchange control laws and
regulations. In the event the exercise price for an Award is paid in Chinese Renminbi or other foreign currency, as permitted by
the Committee, the amount payable will be determined by conversion from U.S. dollars at the official rate promulgated by the People’s
Bank of China for Chinese Renminbi, or for jurisdictions other than the People’s Republic of China, the exchange rate as
selected by the Committee on the date of exercise.

 

ARTICLE 8

 

CHANGES IN CAPITAL STRUCTURE

 

8.1Adjustments. In the event
of any distribution, share split, combination or exchange of Shares, amalgamation, arrangement or consolidation, reorganization
of the Company, including the Company becoming a subsidiary in a transaction not involving a Corporate Transaction, spin-off, recapitalization
or other distribution (other than normal cash dividends) of Company assets to its shareholders, or any other change affecting the
Shares or the share price of a Share, the Committee shall make such proportionate and equitable adjustments, if any, to reflect
such change with respect to (a) the aggregate number and type of shares that may be issued under the Plan (including, but not limited
to, adjustments of the limitations in Section 3.1 and substitutions of shares in a parent or surviving company); (b) the terms
and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect
thereto); and (c) the grant or exercise price per share for any outstanding Awards under the Plan. The form and manner of any such
adjustments shall be determined by the Committee in its sole discretion.

 

8.2Acceleration upon a Change of
Control. Except as may otherwise be provided in any Award Agreement or any other written agreement entered into by and between
the Company and a Participant, if a Change of Control occurs and a Participant’s Awards are not converted, assumed, or replaced
by a successor, such Awards shall become fully exercisable and all forfeiture restrictions on such Awards shall lapse. Upon, or
in anticipation of, a Change of Control, the Committee may in its sole discretion provide for (i) any and all Awards outstanding
hereunder to terminate at a specific time in the future and shall give each Participant the right to exercise such Awards during
a period of time as the Committee shall determine, (ii) either the purchase of any Award for an amount of cash equal to the amount
that could have been attained upon the exercise of such Award or realization of the Participant’s rights had such Award been
currently exercisable or payable or fully vested (and, for the avoidance of doubt, if as of such date the Committee determines
in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’
s rights, then such Award may be terminated by the Company without payment), (iii) the replacement of such Award with other rights
or property selected by the Committee in its sole discretion or the assumption of or substitution of such Award by the successor
or surviving corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of Shares and
prices, or (iv) provide for payment of Awards in cash based on the value of Shares on the date of the Change of Control plus reasonable
interest on the Award through the date such Award would otherwise be vested or have been paid in accordance with its original terms,
if necessary to comply with Section 409A of the Code.

 

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8.3Outstanding Awards – Corporate
Transactions. In the event of a Corporate Transaction, each Award will terminate upon the consummation of the Corporate Transaction,
unless the Award is assumed by the successor entity or Parent thereof in connection with the Corporate Transaction. Except as provided
otherwise in an individual Award Agreement, in the event of a Corporate Transaction and:

 

(a)the Award either is (x) assumed by
the successor entity or Parent thereof or replaced with a comparable Award (as determined by the Committee) with respect to shares
of the capital stock (or equivalent) of the successor entity or Parent thereof or (y) replaced with a cash incentive program of
the successor entity which preserves the compensation element of such Award existing at the time of the Corporate Transaction and
provides for subsequent payout in accordance with the same vesting schedule applicable to such Award, then such Award (if assumed),
the replacement Award (if replaced), or the cash incentive program automatically shall become fully vested, exercisable and payable
and be released from any restrictions on transfer (other than transfer restrictions applicable to Options) and repurchase or forfeiture
rights, immediately upon termination of the Participant’s employment or service with all Service Recipient within twelve
(12) months of the Corporate Transaction without cause; and

 

(b)For each Award that is neither assumed
nor replaced, such portion of the Award shall automatically become fully vested and exercisable and be released from any repurchase
or forfeiture rights (other than repurchase rights exercisable at Fair Market Value) for all of the Shares at the time represented
by such portion of the Award, immediately prior to the specified effective date of such Corporate Transaction, provided that the
Participant remains an Employee, Consultant or Director on the effective date of the Corporate Transaction.

 

8.4Outstanding Awards – Other
Changes. In the event of any other change in the capitalization of the Company or corporate change other than those specifically
referred to in this Article 8, the Committee may, in its absolute discretion, make such adjustments in the number and class of
shares subject to Awards outstanding on the date on which such change occurs and in the per share grant or exercise price of each
Award as the Committee may consider appropriate to prevent dilution or enlargement of rights.

 

8.5No Other Rights. Except as
expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation of shares of
any class, the payment of any dividend, any increase or decrease in the number of shares of any class or any dissolution, liquidation,
merger, or consolidation of the Company or any other corporation. Except as expressly provided in the Plan or pursuant to action
of the Committee under the Plan, no issuance by the Company of shares of any class, or securities convertible into shares of any
class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares subject to an Award
or the grant or exercise price of any Award.

 

    12

     

    

 

ARTICLE 9

 

ADMINISTRATION

 

9.1Committee. The Plan shall
be administered by the Compensation Committee of the Board; provided, however that the Compensation Committee may delegate
to a committee of one or more members of the Board the authority to grant or amend Awards to Participants other than Independent
Directors and executive officers of the Company. The Committee shall consist of at least two individuals, each of whom qualifies
as a Non-Employee Director. Reference to the Committee shall refer to the Board if the Compensation Committee has not been established
or ceases to exist and the Board does not appoint a successor Committee. Notwithstanding the foregoing, the full Board, acting
by majority of its members in office shall conduct the general administration of the Plan if required by Applicable Law, and with
respect to Awards granted to Independent Directors and for purposes of such Awards the term “Committee” as used in
the Plan shall be deemed to refer to the Board.

 

9.2Action by the Committee. A
majority of the Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at which a quorum
is present, and acts approved in writing by a majority of the Committee in lieu of a meeting, shall be deemed the acts of the Committee.
Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that
member by any officer or other employee of the Company or any Subsidiary, the Company’s independent certified public accountants,
or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.

 

9.3Authority of Committee. Subject
to any specific designation in the Plan, the Committee has the exclusive power, authority and discretion to:

 

(a)Designate Participants to receive Awards;

 

(b)Determine the type or types of Awards
to be granted to each Participant;

 

(c)Determine the number of Awards to be
granted and the number of Shares to which an Award will relate;

 

(d)Determine the terms and conditions
of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grant price, or purchase price, any
restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability
of an Award, and accelerations or waivers thereof, any provisions related to non-competition and recapture of gain on an Award,
based in each case on such considerations as the Committee in its sole discretion determines;

 

(e)Determine whether, to what extent,
and pursuant to what circumstances an Award may be settled in, or the exercise price of an Award may be paid in, cash, Shares,
other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 

(f)Prescribe the form of each Award Agreement,
which need not be identical for each Participant;

 

    13

     

    

 

(g)Decide all other matters that must
be determined in connection with an Award;

 

(h)Establish, adopt, or revise any rules
and regulations as it may deem necessary or advisable to administer the Plan;

 

(i)Interpret the terms of, and any matter
arising pursuant to, the Plan or any Award Agreement;

 

(j)Reduce the exercise price per Share
subject to an Option; and

 

(k)Make all other decisions and determinations
that may be required pursuant to the Plan or as the Committee deems necessary or advisable to administer the Plan.

 

9.4Decisions Binding. The Committee’s
interpretation of the Plan, any Awards granted pursuant to the Plan, any Award Agreement and all decisions and determinations by
the Committee with respect to the Plan are final, binding, and conclusive on all parties.

 

ARTICLE 10

 

EFFECTIVE AND EXPIRATION DATE

 

10.1Effective Date. The Plan,
as amended and restated, is effective on August 29, 2016, the date of shareholders’ approval at the annual general meeting
of the Company (the “Effective Date”).

 

10.2Expiration Date. The Plan,
as amended and restated, will expire on, and no Award may be granted pursuant to the Plan after, the tenth anniversary of the Effective
Date. Any Awards that are outstanding on the tenth anniversary of the Effective Date shall remain in force according to the terms
of the Plan and the applicable Award Agreement.

 

ARTICLE 11

 

AMENDMENT, MODIFICATION, AND TERMINATION

 

11.1Amendment, Modification, and
Termination. With the approval of the Board, at any time and from time to time, the Committee may terminate, amend or modify
the Plan; provided, however, that (a) to the extent necessary and desirable to comply with Applicable Laws, or stock exchange
rules, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required, and
(b) shareholder approval is required for any amendment to the Plan that (i) increases the number of Shares available under the
Plan (other than any adjustment as provided by Article 8), (ii) permits the Committee to grant Options with an exercise price that
is below Fair Market Value on the date of grant, (iii) permits the Committee to extend the expiration date of the Plan, (iv) permits
the Committee to extend the exercise period for an Option beyond ten years from the date of grant, or (v) results in a material
increase in benefits or a change in eligibility requirements.

 

11.2Awards Previously Granted.
Except with respect to amendments made pursuant to Section 11.1, no termination, amendment, or modification of the Plan shall adversely
affect in any material way any Award previously granted pursuant to the Plan without the prior written consent of the Participant.

 

    14

     

    

  

ARTICLE 12

 

GENERAL PROVISIONS

 

12.1No Rights to Awards. No Participant,
employee, or other person shall have any claim to be granted any Award pursuant to the Plan, and neither the Company nor the Committee
is obligated to treat Participants, employees, and other persons uniformly.

 

12.2No Shareholders Rights. No
Award gives the Participant any of the rights of a Shareholder of the Company unless and until Shares are in fact issued to such
person in connection with such Award.

 

12.3Taxes. No Shares shall be
delivered under the Plan to any Participant until such Participant has made arrangements acceptable to the Committee for the satisfaction
of any income and employment tax withholding obligations under Applicable Laws. The Company or any Subsidiary shall have the authority
and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy all applicable
taxes (including the Participant’s payroll tax obligations) required or permitted by law to be withheld with respect to any
taxable event concerning a Participant arising as a result of this Plan. The Committee may in its discretion and in satisfaction
of the foregoing requirement allow a Participant to elect to have the Company withhold Shares otherwise issuable under an Award
(or allow the return of Shares) having a Fair Market Value equal to the sums required to be withheld. Notwithstanding any other
provision of the Plan, the number of Shares which may be withheld with respect to the issuance, vesting, exercise or payment of
any Award (or which may be repurchased from the Participant of such Award after such Shares were acquired by the Participant from
the Company) in order to satisfy the Participant’s federal, state, local and foreign income and payroll tax liabilities with
respect to the issuance, vesting, exercise or payment of the Award shall, unless specifically approved by the Committee, be limited
to the number of Shares which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of
such liabilities based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll
tax purposes that are applicable to such supplemental taxable income.

 

12.4No Right to Employment or Services.
Nothing in the Plan or any Award Agreement shall interfere with or limit in any way the right of the Service Recipient to terminate
any Participant’s employment or services at any time, nor confer upon any Participant any right to continue in the employ
or service of any Service Recipient.

 

12.5Unfunded Status of Awards.
The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments not yet made
to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights
that are greater than those of a general creditor of the Company or any Subsidiary.

 

    15

     

    

 

12.6Indemnification. To the extent
allowable pursuant to applicable law, each member of the Committee or of the Board shall be indemnified and held harmless by the
Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection
with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved
by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction
of judgment in such action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity,
at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.
The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may
be entitled pursuant to the Company’s Memorandum of Association and Articles of Association, as a matter of law, or otherwise,
or any power that the Company may have to indemnify them or hold them harmless.

 

12.7Relationship to other Benefits.
No payment pursuant to the Plan shall be taken into account in determining any benefits pursuant to any pension, retirement, savings,
profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except to the extent otherwise
expressly provided in writing in such other plan or an agreement thereunder.

 

12.8Expenses. The expenses of
administering the Plan shall be borne by the Company and its Subsidiaries.

 

12.9Titles and Headings. The
titles and headings of the Sections in the Plan are for convenience of reference only and, in the event of any conflict, the text
of the Plan, rather than such titles or headings, shall control.

 

12.10Fractional Shares. No fractional
Share shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional shares
or whether such fractional shares shall be eliminated by rounding up or down as appropriate.

 

12.11Government and Other Regulations.
The obligation of the Company to make payment of awards in Shares or otherwise shall be subject to all Applicable Laws and to such
approvals by government agencies as may be required. The Company shall be under no obligation to register any of the Shares paid
pursuant to the Plan under the Securities Act or any other similar law in any applicable jurisdiction. If the Shares paid pursuant
to the Plan may in certain circumstances be exempt from registration pursuant to the Securities Act or other Applicable Laws, the
Company may restrict the transfer of such Shares in such manner as it deems advisable to ensure the availability of any such exemption.

 

12.12Governing Law. The Plan
and all Award Agreements shall be construed in accordance with and governed by the laws of the British Virgin Islands.

 

    16

     

    

 

12.13Section 409A. To the extent
that the Committee determines that any Award granted under the Plan is or may become subject to Section 409A of the Code, the Award
Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To the extent
applicable, the Plan and the Award Agreements shall be interpreted in accordance with Section 409A of the Code and the U.S. Department
of Treasury regulations and other interpretative guidance issued thereunder, including without limitation any such regulation or
other guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event
that following the Effective Date the Committee determines that any Award may be subject to Section 409A of the Code and related
U.S. Department of Treasury guidance (including such U.S. Department of Treasury guidance as may be issued after the Effective
Date), the Committee may adopt such amendments to the Plan and the applicable Award agreement or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines
is necessary or appropriate to (a) exempt the Award from Section 409A of the Code and /or preserve the intended tax treatment of
the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related U.S.
Department of Treasury guidance.

 

12.14Appendices. The Committee
may approve such supplements, amendments or appendices to the Plan as it may consider necessary or appropriate for purposes of
compliance with applicable laws or otherwise and such supplements, amendments or appendices shall be considered a part of the
Plan; provided, however, that no such supplements shall increase the share limitations contained in Section 3.1 of the
Plan.

 

    17ex10-1.htm

Exhibit 10.1

 

 

 

 

August 23, 2016

 

Matthew T. Shafer

Allaire Country Club Estates

173 Tennis Court

Wall Township, NJ 07719

 

Dear Matthew:

 

Ocean Power Technologies, Inc. (“OPT” or the “Company”) is very pleased to offer you a position as a full-time employee with the Company under the terms contained in this employment letter and the Attachment hereto.

 

OPT hereby offers to you the position of Chief Financial Officer (“CFO”), Vice President – Finance, and Treasurer, reporting to the Company’s President and Chief Executive Officer (“CEO”), subject to the satisfactory completion of background checks. As such, your duties and responsibilities will be those duties and responsibilities consistent with similar positions in a publicly traded company in the United States, and as may be assigned by me as the Company’s CEO or by the Audit Committee of the Company’s Board of Directors. In addition to the foregoing, your duties and responsibilities will also include, but shall not be limited to, your management of the OPT finance department.

 

OPT may alter your position and your duties and responsibilities as deemed appropriate by the Company in the future. In addition, you will have the following responsibilities: (i) to devote attention, labor, skill and energy to the business of the Company; (ii) to diligently and to the best of your ability perform all duties incident to your employment as described in this letter; and (iii) to use your best efforts to promote the interests, goodwill and welfare of the Company.

 

Compensation for your services, subject to the terms of this letter, shall be a base salary of $220,000 per annum, to be paid semi-monthly in accordance with OPT’s standard payroll practices, for as long as you are employed by the Company or until a change is made by OPT to your salary. Payments to you will be less all amounts required to be withheld by federal, state and all other applicable income tax laws, regulations and rulings. You will receive reviews of your job performance in accordance with OPT’s policies. Adjustments to your compensation, if any, will generally be considered on an annual basis and will generally occur (but are not required to occur) in May or June of each year. In addition, you will be eligible for consideration of an annual target bonus award of 35% of your base salary based upon your performance and that of the Company. In addition, subject to approval by the Company’s Board of Directors following the Company’s planned meeting of stockholders in the fall of 2016, you will be considered for an award of the Company’s common stock targeted to equate to 50% of your base salary to vest, if at all, over the next three years (using the start date of your employment with the Company) but based on your attaining certain performance goals to be agreed upon by the Company’s CEO.

 

 

 

 

 

Matthew T. Shafer

August 23, 2016

Page 2 of 9

 

 

In addition to the foregoing compensation, during your employment with the Company you will be entitled to participate in all employee benefit plans and programs now or in the future maintained by the Company, so long as you meet any applicable eligibility requirements. You will also receive vacation time to be accrued in accordance with the Company’s policies, which total amount shall be three weeks of annual paid vacation. Under OPT’s current policy, after every four week until a maximum of four weeks’ vacation is earned. Consistent with the Company’s existing policies, you will be permitted to use up to five paid sick days each year and you will receive ten holidays with pay each year.

 

If you accept this offer, the start date of your employment with the Company will be Wednesday, September 7, 2016. You will be expected to work at the Company’s office in Pennington, New Jersey, or at other locations as may be directed by the Company’s CEO, during OPT’s normal business hours, as well as any additional hours needed in order to complete your duties, responsibilities and assigned tasks. In light of the location of your current residence in the State of New Jersey, OPT is not offering you any relocation costs.

 

After you have completed six months of service to the Company, in the event you terminate your employment with the Company for “Good Reason,” as defined below, or if the Company should terminate your employment other than (i) for “Cause,” as defined below, or (ii) because you cannot perform your services as result of physical or mental incapacitation, you will be eligible to receive six months of your base salary as a severance payment, and you will be eligible to receive medical and dental benefits under the Company’s medical and dental plans then in effect. Any severance payment including the benefits described above will be paid by the Company as salary continuation in accordance with its regular payroll practices, and will be conditioned upon the execution and non-revocation by you of a severance agreement and general release provided by the Company in which you will release any and all claims you may have against the Company and its affiliates (to the extent permitted by applicable law).

 

 

1590 Reed Road

Pennington, NJ 08534 USA

Tel: 609-730-0400 - Fax: 609-730-0404

 

 

 

 

 

Matthew T. Shafer

August 23, 2016

Page 3 of 9

 

 

“Cause” as used in this employment letter shall mean a termination of your employment by the Company because you have done any of the following: (a) materially breached or materially failed to perform your duties and responsibilities as set forth in this employment agreement or its Attachment or under applicable law; (b) failed to follow a lawful and reasonable directive of the Company’s CEO or the Company’s Board of Directors; (c) failed to follow the Company’s policies and procedures in effect from time to time; (d) committed an act of dishonesty in the performance of your duties and responsibilities or engaged in willful misconduct detrimental to the business of the Company; (e) been indicted on felony charges; (f) been convicted of misdemeanor charges involving any crime of moral turpitude; (g) breached in any material respect or failed to perform in any material respect your obligations and duties in any agreement between you and the Company; or (h) violated your restrictive covenants with the Company including, without limit, your non-compete, non-solicit, non-hire, confidentiality obligations, and intellectual property transfer obligations regarding the ownership of intellectual property created or developed, in whole or in part, by you while an employee of the Company as set forth in the Attachment to this employment letter. “Good Reason” as used in this employment letter shall mean a material diminution of your duties and responsibilities or a material change in the position to which you report. A termination by you for Good Reason can only occur if (i) within sixty (60) days after the initial occurrence of the condition giving rise to Good Reason you have given a written notice of such to the Company, (ii) the Company has not cured the condition within thirty (30) days after receipt of such notice, and (iii) you actually cease employment within thirty (30) days after the period set forth in clause (ii) above.

 

By accepting this offer, you recognize and acknowledge that you may have access to certain ideas, processes, strategies, trade secrets, methods of operation or other non-public information (whether or not that non-public information is material), or involving the business, technology, operations, financial condition or services of OPT or any of its subsidiaries, or any and all other similar information all of which is collectively referred to in this employment letter as “Confidential Information” of OPT, and you further recognize and acknowledge that that all such Confidential Information constitutes valuable, special and unique property of OPT. You agree that you will not, without the prior written consent of OPT, disclose or authorize or permit anyone under your direction to disclose to anyone not properly entitled thereto any such Confidential Information. Accordingly, as part of your acceptance of this offer, you agree to execute and to be bound by that certain Proprietary Information, Restrictive Covenant and Inventions Agreement (the “Agreement”) attached hereto and incorporate herein. By accepting this offer, you further represent that you are not bound by any employment contract, restrictive covenant or other restriction preventing you from entering into employment with OPT and carrying out your responsibilities to the Company or which in any way otherwise interferes with or is in conflict with such employment.

 

 

1590 Reed Road

Pennington, NJ 08534 USA

Tel: 609-730-0400 - Fax: 609-730-0404

 

 

 

 

 

Matthew T. Shafer

August 23, 2016

Page 4 of 9

 

 

This employment letter and the Attachment shall not be construed as an agreement, either express or implied, to employ you for any stated term and shall in no way alter OPT’s policy of employment at-will under which both you and OPT remain free to terminate the employment relationship at any time, with or without notice, and with or without Cause (as defined above). This letter and the Agreement constitute the entire offer to you by the Company and, if you accept, they shall constitute the entire agreement between you and the Company and shall be governed by the laws of the State of New Jersey. If you agree to the terms of this offer, please sign and date below, as well as on the Agreement and return a copy to me by email message and then mail the originals to the Company to my attention.

 

This offer is valid through 5:00 pm (EDT), Tuesday, August 23, 2016.

 

Should you have any questions concerning this offer, or any other question about the Company and this position, please contact me by telephone as soon as possible. I look forward to hearing from you.

 

Sincerely,

 

 

George H. Kirby

OPT President and CEO

 

I have read and understand this employment letter and the Attachment hereto. The foregoing correctly sets forth the terms of my employment with OPT.

 

 

_______/s/ Matthew T. Shafer____          DATE: ____August 23, 2016_____

 

Matthew T. Shafer

 

 

1590 Reed Road

Pennington, NJ 08534 USA

Tel: 609-730-0400 - Fax: 609-730-0404

 

 

 

 

 

Matthew T. Shafer

August 23, 2016

Page 5 of 9

 

 

ATTACHMENT

 

Ocean Power Technologies, Inc.

 

PROPRIETARY INFORMATION, RESTRICTIVE COVENANT AND

INVENTIONS AGREEMENT

 

As an employee of OCEAN POWER TECHNOLOGIES, INC., or any of its subsidiaries or affiliates (together, the “Company”), and as a condition of my employment by the Company and in consideration of the compensation now and hereafter paid to me, I agree to the following:

 

1.     MAINTAINING CONFIDENTIAL INFORMATION

 

(a) Company Information - I agree at all times during the term of my employment and thereafter to hold in strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm or corporation, without the written authorization of the Board of Directors of the Company, any trade secrets, confidential knowledge, data or other proprietary information of the Company. By way of illustration and not limitation, such Company information shall include information relating to products, processes, know-how, designs, formulas, methods, samples, media and/or cell lines, developmental or experimental work, improvements, discoveries, plans for research, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers, and information regarding the skills and compensation of other employees of the Company.

 

(b) Former Employer Information - I agree that I will not, during my employment with the Company, improperly use or disclose any proprietary information or trade secrets of my former or concurrent employers or companies, if any, and that I will not bring onto the premises of the Company any unpublished documents or any property belonging to my former or concurrent employers or companies unless previously and specifically consented to in writing by said employers or companies.

 

(c) Third Party Information - I recognize that the Company has received and in the future will receive confidential or proprietary information from third parties subject to a duty on the Company’s part to maintain the confidentiality of such information and, in some cases, to use it only for certain limited purposes. I agree that I owe the Company and such third parties, both during the term of my employment and thereafter, a duty to hold all such confidential and proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation (except in a manner that is consistent with the Company’s agreement with the third party) or use it for the benefit of anyone other than the Company or such third party (consistent with the Company’s agreement with the third party), unless expressly authorized to act otherwise by an officer of the Company.

 

 

 

 

1590 Reed Road

Pennington, NJ 08534 USA

Tel: 609-730-0400 - Fax: 609-730-0404

 

 

 

 

 

Matthew T. Shafer

August 23, 2016

Page 6 of 9

 

 

	
2.
	
ASSIGNMENT OF INVENTIONS AND ORIGINAL WORKS

 

(a) Inventions and Original Works Assigned to the Company - I agree that I will make prompt written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company all my right, title and interest in and to any ideas, inventions, original works or authorship, developments, improvements or trade secrets which I may solely or jointly conceive or reduce to practice, or cause to be conceived or reduced to practice, during the period of my employment with the Company.

 

I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of my employment and which are protectable by copyright are “works made for hire,” as that term is defined in the United Stations Copyright Act (17 U.S.C., Section 101).

 

(b) Inventions and Original Works Assigned to the United States - I hereby assign to the United States government all my right, title and interest in and to any and all inventions, original works of authorship, developments, improvements or trade secrets whenever full title to same is required to be in the United States by a contract between the Company and the United States or any of its agencies.

 

(c) Obtaining Letters Patent, Copyright Registrations and Other Protections - I will assist the Company in every proper way to obtain and enforce United States and foreign proprietary rights relating to any and all inventions, original works of authorship, developments, improvements or trade secrets of the Company in any and all countries. To that end I will execute, verify and deliver such documents and perform such other acts (including appearing as a witness) that the Company may reasonable request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such proprietary rights and the assignment thereof. In addition, I will execute, verify and deliver assignments of such proprietary rights to the Company or its designee. My obligation to assist the Company with respect to proprietary rights in any and all countries shall continue beyond the termination of my employment, but the Company shall compensate me at a reasonable rate after my termination for the time actually spent by me at the Company’s request on such assistance.

 

In the event the Company is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in the preceding paragraph, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney-in-fact, to act for and in my behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims of any nature whatsoever which I now or may hereafter have for infringement of any proprietary rights assigned to the Company.

 

 

 

 

1590 Reed Road

Pennington, NJ 08534 USA

Tel: 609-730-0400 - Fax: 609-730-0404

 

 

 

 

 

Matthew T. Shafer

August 23, 2016

Page 7 of 9

 

 

(d) Obligation to Keep the Company Informed - In addition to my obligations under paragraph 2(a) above, during the period of my employment I will promptly disclose to the Company fully and in writing all patent applications filed by me or on my behalf. I agree to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required by the Company) of all proprietary information developed by me and all inventions made by me during the period of my employment by the Company, which records shall be available to and remain the sole property of the Company at all times.

 

	
3.
	
NON-COMPETITION 

 

I agree that, during my employment with the Company and for a period of one (1) year after termination of my employment with the Company, I will not, without the Company’s expressed written consent, engage in any consulting, employment or business that is directly or indirectly competitive with the Company or assist others in any business that is competitive with the Company. A company shall be considered “competitive” with the Company if such company engages in any line of business in competition with the energy generation technology services and/or products with which I was, directly or indirectly, engaged while an employee of the Company.

 

	
4.
	
NON-SOLICITATION/NON-INTERFERENCE

 

(a) Employees and Independent Contractors - During my employment and for a period of one (1) year after termination of my employment with the Company, I will not recruit, solicit, or hire, or assist others in recruiting, soliciting or hiring, any past or present employee, director, contractor or other business associate (collectively each a “Business Relation”) or otherwise induce any Business Relation to terminate or cease his/her employment or other business relationship with the Company. The term Business Relation shall include those individuals or entities who were employed, engaged or associated with the Company during my employment or, if after the termination of my employment, within the twelve (12) month period prior to the termination of my employment.

 

(b) Clients, Customers and Business Contacts - During my employment and for the period of one (1) year after termination of my employment with the Company, I will not solicit, divert, or take away, or attempt to solicit, divert or take away the business or patronage of any of the clients, customers, business contacts or accounts of the Company which were contacted, solicited or served by me at any time during my employment with the Company or regarding which I had access to substantive confidential information. 

 

	
5.
	
NO CONFLICTING OBLIGATIONS

 

I represent that my performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement or obligation of mine relating to any time prior to my employment by the Company. I have not entered into, and I agree I will not enter into, any agreement either written or oral in conflict herewith.

 

 

 

 

1590 Reed Road

Pennington, NJ 08534 USA

Tel: 609-730-0400 - Fax: 609-730-0404

 

 

 

 

 

Matthew T. Shafer

August 23, 2016

Page 8 of 9

 

 

	
6.
	
RETURN OF COMPANY PROPERTY

 

When I leave the employ of the Company or upon any request from the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, together with all copies thereof (in whatever medium recorded) belonging to the Company, its successors or assigns whether kept at the Company, home or elsewhere. I further agree that all Company property, including disks and other storage media and filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice. 

 

	
7.
	
NOTIFICATION OF NEW EMPLOYER

 

In the event that I leave the employ of the Company, I hereby consent to the notification of my new employer of my rights and obligations under this Agreement.

 

	
8.
	
LEGAL AND EQUITABLE REMEDIES

Because my services are personal and unique and because I may have access to and become acquainted with the proprietary information of the Company, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.

 

	
9.
	
GENERAL PROVISIONS

 

(a) Not an Employment Contract - I agree and understand that nothing in this Agreement shall confer any right with respect to continuation of my employment by the Company, nor shall it interfere in any way with my right or the Company’s right to terminate my employment at any time, with or without cause.

 

(b) Governing Law; Consent to Personal Jurisdiction - This Agreement will be governed by and construed according to the laws of the State of New Jersey, excluding conflicts of laws principles. I hereby expressly consent to the personal jurisdiction of the state and federal courts located in New Jersey for any lawsuit filed there against me by the Company arising from or relating to this Agreement.

 

(c) Entire Agreement - This Agreement sets forth the final, complete and exclusive agreement and understanding between the Company and me relating to the subject matter hereof and supersedes all prior and contemporaneous understandings and agreements relating to its subject matter. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by both the Company and me. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.

 

 

1590 Reed Road

Pennington, NJ 08534 USA

Tel: 609-730-0400 - Fax: 609-730-0404

 

 

 

 

 

Matthew T. Shafer

August 23, 2016

Page 9 of 9

 

 

(d) Severability - If one or more of the provisions in this Agreement are deemed unenforceable by law, then the remaining provisions will continue in full force and effect.

 

(e) Successors and Assigns - This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors and its assigns.

 

(f) Survival - The provisions of this Agreement shall survive the termination of my employment and the assignment of this Agreement by the Company to any successor in interest of other assignee.

 

(g) Waiver - No waiver by the Company of any breach of this Agreement shall be waiver of any preceding or succeeding breach. No waiver by the Company of any right under this Agreement shall be construed as a waiver of any other right. The Company shall not be required to give notice to enforce strict adherence to all terms of this Agreement.

 

(h) Notice - Any notices required or permitted hereunder hall be given to the appropriate party at the address specified below or at such other address as the party shall specify in writing. Such notice shall be deemed given upon personal delivery, or sent by certified or registered mail, postage prepaid, three (3) days after the date of mailing.

 

This Agreement shall be effective as of the first day of my employment with the Company, namely:      September 7     , 2016.

 

I UNDERSTAND THAT THIS AGREEMENT AFFECTS MY RIGHTS TO INVENTIONS I MAKE DURING MY EMPLOYMENT, AND RESTRICTS MY RIGHT TO DISCLOSE OR USE THE COMPANY’S PROPRIETARY INFORMATION DURING OR SUBSEQUENT TO MY EMPLOYMENT.

 

I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.

 

 

	
Dated: __August 23___________, 2016_
	
 
	
/s/ Matthew T. Shafer          

	
 
	
 
	
Signature

	
 
	
 
	
 

	
 
	
 
	
Matthew T. Shafer 

	
 
	
 
	
Printed Name of Employee 

 

 

 

1590 Reed Road

Pennington, NJ 08534 USA

Tel: 609-730-0400 - Fax: 609-730-0404

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