Document:

EPOD Solar Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2

Agreement entered into this 12th day of July, 2010

Between: 

Nanotech Industries Inc., a Delaware
corporation.

hereinafter referred to as “LICENSOR”
or the “Company” 

And: 

Nanotech Industries International Inc.,
a Nevada corporation hereinafter referred to as “NTI”

(collectively referred to as the
“Parties”) 

WHEREAS LICENSOR, holds proprietary rights to the
license and Intellectual Property (“LICENSOR IP”) required for the manufacturing
of environmentally safe, coatings, adhesives, sealants and elastomers (“LICENSOR
Product”),

WHEREAS LICENSOR wishes to engage NTI for the potential
manufacturing and sale (collectively “Manufacturing and Sale”) of the LICENSOR
Product in the Territory (as defined below). 

WHEREAS LICENSOR agrees to grant NTI exclusivity for the
Manufacturing and Sale of the LICENSOR Product in the Territory (as defined
below).according to the terms set forth hereunder;

WHEREAS to this end, the Parties have agreed to enter
into the present agreement (“Agreement”);

NOW THEREFORE, in consideration of the representations,
covenants and agreements hereinafter set forth, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
LICENSOR and NTI agree as follows: 

Section 1. Definitions 

“Acquirer” shall have the meaning ascribed to it under
the definition of the term “Material Transaction”. See below. 

"Confidential Information" shall mean all information
disclosed by a Party and marked by the disclosing party as "Confidential",
"Proprietary" or other appropriate legend or disclosed orally and described as "
Confidential " or "Proprietary" and delivered by the disclosing Party, including
without limitation information disclosed by either Party regarding pricing,
methods of operation, techniques, business methods or plans, marketing plans and
strategies, finances, Know-How, designs, manufacturing formulae, computer
programs, or any other business information relating to the disclosing Party and
its subsidiaries, if any, whether constituting a trade secret, proprietary
information or otherwise; provided that: 

Confidential Information shall not include information that can be established by the receiving Party by competent proof: (i) was already known to the receiving Party, other than under an obligation of confidentiality, at the time of disclosure by
the disclosing Party; (ii) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party; (iii) became generally available to the public or was otherwise part of the public domain
after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement; (iv) was disclosed to the receiving Party, other than under an obligation of confidentiality, by a third party who had no obligation
to the disclosing Party not to disclose such information to others; or (v) was independently developed by the receiving Party without use of the disclosing Party's information. 

 "Documentation" shall mean all documentation for or relating to the Proprietary Technology, including but not limited to: (i) all documentation intended for use by the operators of the Proprietary Technology; (ii) all technical
documentation, designs and specifications; (iii) any other type of information or material (in whatever form, whether human or machine-readable, and in whatever media) relating to the Proprietary Technology that was prepared by or for LICENSOR;

“Exclusivity” shall mean the granting by LICENSOR to NTI of the exclusive rights to the Manufacturing and Sale of the LICENSOR Product for the Territory; 

“Gross Revenue” shall have the definition according to US GAAP.; 

"Intellectual Property" shall mean all patents, trademarks, trade names, service marks, trade dress, copyrights, works of authorship, design rights, trade secrets, inventions, discoveries, research, product designs, improvements, ideas, ,
show-how, data, quality control processes, manufacturing processes, test results, test methods, databases and documentation thereof, technical information, data, specifications, records and documentation software and other proprietary rights
regardless of the form in which it exists or the media upon which it resides . 

 "Know-How" shall mean all discoveries, business information, business methods, formulae, systems, processes, trade secrets, technologies, works of authorship and, confidential data and information, whether patentable or unpatentable. 

 "Manufacturing Intellectual Property" shall mean all Intellectual Property and KnowHow owned or licensed wholly or jointly by LICENSOR, currently and in the future and that is specifically relating to or used in the manufacture of the
LICENSOR Product.

 "Material Transaction” shall mean a consolidation, merger, exchange of shares, recapitalization, reorganization, business combination or other similar event, (A) following which the holders of common stock of NTI (“NTI Common
Stock”) immediately preceding such consolidation, merger, combination or event (“NTI Common Stockholders”) either (1) no longer hold a majority of the shares of NTI Common Stock or (2) no longer have the ability to elect the board of
directors of NTI and, (3) as a result of which another entity (the “Acquirer”) shall either (i) hold a majority of the shares of NTI Common Stock or (ii) have the ability to elect the board of directors or (B) as a result of which shares
of NTI Common Stock shall be changed into (or the shares of NTI Common Stock become entitled to receive) the same or a different number of shares of the same or another class or classes of stock or securities of the Acquirer. 

 “Territory” shall mean all of North America. 

Section 2. Manufacturing. The Parties agree that LICENSOR shall provide NTI with all necessary Documentation and access to Manufacturing Intellectual Property to manufacture the LICENSOR Product (“IP Rights”), under the following terms: 

	 	(i) 	
      In consideration for IP Rights and regardless of whether
      or not NTI exercises the IP Rights, NTI shall pay LICENSOR a one time
      licensing fee equivalent to $500,000 (five hundred thousand dollars)
      (“Licensing Fee”) to be payable within 12 (twelve) months from the signing
      of this Agreement (“ Fee Payment Deadline”).

	 	 	 
	 	(ii) 	
      NTI shall pay to LICENSOR a royalty of 5% of Gross
      Revenue from the Sale of the LICENSOR Product (“Royalty”) for the duration
      of this Agreement. The Royalty shall be paid on a quarterly basis 65
      calendar days after the end of each quarter (the “Royalty Payment Period”)
      and shall be based on the Gross Revenue as stated in NTI’s quarterly
      statements. The Licensor shall have the right to review NTI’s records
      including bank statements at anytime with a 10 business day notice (the
      “Review”), as well NTI shall perform an annual audit of its financial
      statements on an annual basis (the “Audit”) which shall be completed
      within 100 days from NTI’s year end (the “Audit deadline”) .

	 	 	 
	 	(iii) 	
      In accordance with Section 5 below, NTI undertakes to
      keep confidential any and all Documentation and Manufacturing Intellectual
      Property provided to, transferred and or disclosed in any manner to NTI by
      LICENSOR or any person or entity on behalf of
LICENSOR.

Section 3. Exclusivity 

	 	(i) 	
      NTI shall retain the right for the Manufacturing and Sale
      for the Territory on an exclusive basis (“Exclusivity”) for a period of 36
      (thirty-six) months from the date of the signing of this Agreement
      (“Exclusivity Period”). Exclusivity shall be terminated at the end of the
      Exclusivity Period (”Exclusivity Termination”).

	 	 	 
	 	(ii) 	
      Upon Exclusivity Termination, NTI shall continue to have
      the right to the Manufacturing and Sale for the Territory, on a
      non-exclusive basis for the duration of the Agreement.

	 	 	 
	 	(iii) 	
      At any time during the Exclusivity Period and prior to
      the Exclusivity Termination, the Parties agree that NTI shall have the
      right to be granted a perpetual right of Exclusivity for the Manufacturing
      and Sale by LICENSOR for all of North America, South America and Europe
      (“America - Europe Perpetual Exclusivity”), in consideration of the
      issuance by NTI to the LICENSOR of an aggregate number of shares of common
      stock which shall give the LICENSOR, immediately upon such issuance of
      shares and subject to subsection (v) below, a 52.5% ownership stake in
      NTI, (“America – Europe Exclusivity Shares”). In the event NTI exercises
      its right to America - Europe Perpetual Exclusivity, the America – Europe
      Exclusivity Shares shall be issued as fully paid and non-assessable and
      shall bear the requisite restrictive legend in accordance with applicable
      securities law.

	 	 	 
	 	(iv) 	
      At any time after the exercise of the America-Europe
      Perpetual Exclusivity, during the Exclusivity Period and prior to the
      Exclusivity Termination, the Parties agree that NTI shall have the right
      to be granted

	 	(iv) 	
      At any time after the exercise of the America-Europe
      Perpetual Exclusivity, during the Exclusivity Period and prior to the
      Exclusivity Termination, the Parties agree that NTI shall have the right
      to be granteda perpetual right of Exclusivity for the Manufacturing
      and Sale by LICENSOR for all of Asia and the rest of the world excluding
      the territories mentioned in the America - Europe Perpetual Exclusivity
      (“Asia Perpetual Exclusivity”), in consideration of the issuance by NTI to
      the LICENSOR of an aggregate number of shares of common stock which shall
      give the LICENSOR, immediately upon such issuance of shares and subject to
      subsections (v) and (vi) below, an additional ownership stake of 10% in
      NTI (“Asia Exclusivity Shares”). In the event NTI exercises its right to
      Asia Perpetual Exclusivity, the Asia Exclusivity Shares shall be issued as
      fully paid and non-assessable and shall bear the requisite restrictive
      legend in accordance with applicable securities law.

	 	 	 
	 	(v) 	
      Should a Material Transaction occur and In the event NTI
      exercises the America - Europe Perpetual Exclusivity following the
      occurrence of the Material Transaction and prior to the Exclusivity
      Termination, NTI undertakes to cause the Acquirer to issue an aggregate
      number of shares of the Acquirer’s common stock which shall give the
      LICENSOR, immediately upon such issuance of shares a 52.5% ownership stake
      in the Acquirer (“America – Europe Exclusivity Acquirer Shares”). In the
      event NTI exercises its right to America - Europe Perpetual Exclusivity,
      the America – Europe Exclusivity Acquirer Shares shall be issued as fully
      paid and non-assessable and shall bear the requisite restrictive legend in
      accordance with applicable securities law.

	 	 	 
	 	(vi) 	
      Pursuant to subsection (v) above and subsequent to the
      exercise of the America - Europe Perpetual Exclusivity, should NTI
      exercise its right to the Asia Perpetual Exclusivity prior to the
      Exclusivity Termination, NTI undertakes to cause the Acquirer to issue an
      aggregate number of shares of the Acquirer’s common stock which shall give
      the LICENSOR, immediately upon such issuance of shares an additional
      ownership stake of 10% in the Acquirer (“Asia Exclusivity Acquirer
      Shares”). In the event NTI exercises its right to the Asia Perpetual
      Exclusivity, the Asia Exclusivity Acquirer Shares shall be issued as fully
      paid and non- assessable and shall bear the requisite restrictive legend
      in accordance with applicable securities law.

Section 4. Events of Default. Any one or more of the
following events, whether or not any such event shall be voluntary or
involuntary or be effected by operation of law or pursuant to or in compliance
with any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body, shall constitute an Event of
Default: 

	 	a) 	
      Non payment of the Licensing Fee by the Fee Payment
      Deadline;

	 	 	 
	 	b) 	
      Non payment of the Royalty during the Royalty Payment
      Period;

	 	 	 
	 	c) 	
      The completion of the Audit within the Audit
    Deadline;

	 	 	 
	 	d) 	
      NTI’s refusal to allow the LICENSOR to perform the
      Review;

	 	 	 
	 	e) 	
      If an order is made or a resolution is passed or a
      petition is filed for the liquidation or winding-up of
  NTI;

In the event of a default, by NTI, NTI shall have 45 calendar
days to cure such default after which, the LICENSOR shall have the right to terminate this
Agreement.

Section 5. Confidentiality. The Parties agree to keep
confidential subject to Section 5.2 and except as otherwise authorized by this
Agreement or agreed in writing, the Parties agree that, during the term of this
Agreement, for five (5) years thereafter, NTI and its Affiliates shall, and
shall ensure that their respective independent contractors, employees, officers
and directors keep completely confidential and not publish, or otherwise
disclose, or use any Confidential Information that is proprietary to and
furnished by LICENSOR..

5.1 Remedies. LICENSOR shall be entitled, in addition to
any other right or remedy it may have, at law or in equity, to an injunction,
without the posting of any bond or other security, enjoining or restraining NTI,
its Affiliates, its licensees and/or its sublicenses from any violation or
threatened violation of this Section 5. 

5.2 Exceptions to Confidentiality. The restrictions on
publication and disclosure contained in Section 5 of this Agreement shall not
apply to Confidential Information that is otherwise required to be disclosed in
compliance with applicable laws or regulations or order by a court or other
regulatory body having competent jurisdiction, provided that if one Party is
required to make any such disclosure of the other Party’s Confidential
Information the disclosing Party will, give reasonable advance notice to the
other Party of such disclosure requirement.

Section 6. Non-Disclosure. NTI agrees not to disclose,
reveal or make use of any information during discussion or observation regarding
methods, processes, ideas, the LICENSOR Product, Know-How, Documentation or any
other subject matter herein including any discussions, and negotiations between
the Parties on any subject matter herein, without the express written consent of
LICENSOR.

Section 7. Intellectual Property. Upon termination of
this Agreement as provided for in Section 4 above, NTI agrees to immediately
return to LICENSOR any and all Documentation, Confidential Information and
materials relating to any Intellectual Property received by NTI under this
Agreement.

7.1 Remedies. LICENSOR shall be entitled, in addition to
any other right or remedy it may have, at law or in equity, to an injunction,
without the posting of any bond or other security, enjoining or restraining NTI,
its Affiliates, its licensees and/or its sublicenses from any violation or
threatened violation of this Section 7. 

Section 8. Term and Termination. This Agreement is
effective from the date of execution and shall be indefinite, in accordance with
the terms and conditions as set forth in this Agreement, except if terminated as
follows: 

	 	1. 	
      Upon mutual written agreement by both Parties;

	 	 	 
	 	2. 	
      Upon termination by the LICENSOR in accordance with
      section 4 of this Agreement.

Upon termination of this Agreement, all of the Parties' rights
and obligations under Sections 5, 6 and 7 shall survive termination,
relinquishment or expiration of this Agreement and shall remain in full force
and effect regardless of the termination of this Agreement.

Section 9. Notice. Any notice or request required or
permitted to be given under or in connection with this Agreement shall be deemed
to have been sufficiently given if in writing and personally delivered or sent
by certified mail (return receipt requested), facsimile transmission (receipt
verified), or overnight express courier service (signature required), prepaid,
to the Party for which such notice is intended, at the address to be proved for
by each of the Parties: 

In the case of LICENSOR to: 

In the case of NTI, to:

or to such other address for such Party as it shall have
specified by like notice to the other Party, provided that notices of a change
of address shall be effective only upon receipt thereof. If delivered personally
or by facsimile transmission, the date of delivery shall be deemed to be the
date on which such notice or request was given. If sent by overnight express
courier service, the date of delivery shall be deemed to be the next business
day after such notice or request was deposited with such service. If sent by
certified mail, the date of delivery shall be deemed to be the fifth business
day after such notice or request was deposited with the national postal service
of the country where such Party is located. 

Section 10. Severability. The Parties intend and believe
that each provision of this Agreement complies with all applicable local, state,
and federal laws and judicial decisions. Nonetheless, if any provision or any
portion of any provision of this Agreement is found by a court of law to violate
any applicable foreign, local, state, provincial or federal ordinance, state,
law, administrative or judicial decision, or public policy, and if such court
should declare such provision or portion to be illegal, invalid, unlawful, void,
or unenforceable as written, it is the intent of the Parties that such provision
or portion shall be given force to the fullest possible extent that it is legal,
valid, and enforceable, that the remainder of this Agreement shall be construed
as if such illegal, invalid, unlawful, void, or unenforceable provision or
portion were not contained in this Agreement, and that the rights, obligations,
and interests of the Parties under the remainder of this Agreement shall
continue in full force and effect. 

Section 11. Jurisdiction. This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware
without regard to conflict of laws provisions thereof. The Parties hereby
irrevocably agree to the exclusive jurisdiction of the state and federal courts
sitting in the State of Delaware.

Section 12. Entire Agreement. This Agreement supersedes
all prior representations, arrangements, negotiations, understandings and
agreements between the Parties, both written and oral, relating to the subject
matter hereof and sets forth the entire and complete and exclusive agreement and
understanding between the Parties hereto relating to the subject matter hereof;
no Party has relied on any representation, arrangement, understanding or
agreement (whether written or oral) not expressly set out or referred to in this
Agreement. The terms of this Agreement may not be changed except by an amendment
signed by an authorized representative of each Party. 

Section 13. Miscellaneous. This Agreement shall inure to
the benefit of the parties hereto In case any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions of the Agreement shall not in any way be affected or
impaired thereby.

Section 14. Assignability. This Agreement shall be
assignable and/or sub-licensable to third parties by LICENSOR at any time but
NTI shall require written approval from LICENSOR, which shall not be
unreasonably withheld, prior to assigning and/or sub-licensing this Agreement to
any third party.

Section 15. Counterparts. This Agreement may be executed in two counterparts, each of which shall constitute an original document, and all of which together shall constitute one and the same instrument. This Agreement may be executed by
facsimile signatures and such signatures shall be deemed to bind each party hereto as if they were original signatures. 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 

Nanotech Industries International Inc.

By: s/s Joseph Kristul 

Title: President and CEO 

Nanotech Industries Inc. 

By: s/s Joseph Kristul 

Title: President and CEOf10k2010ex10xxxxv_soko.htm

EXHIBIT 10.45

SOKO FITNESS & SPA GROUP, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT FOR OFFICERS AND EMPLOYEES

 

	
Option Agreement Number:

	
NQ- [      ]

	
Date of Grant/Award:

	
May 7, 2010

	
Name of Optionee:

	
 

	
Vesting Dates:

	
See Section 2 and 3

	
Expiration Date:

	
See Section 2

1.   Grant of Option.

(a)           A stock option (the “Option”), issued as of the Date of Grant set forth above (the “Grant Date”), is hereby granted to the above-named Optionee.  The award of this Option (the “Award”) conveys to the Optionee the right to purchase from SOKO Fitness & Spa Group, Inc. (the “Company”) up to [           ] shares (the “Option Shares”) of common stock, par value $0.001 per share, of the Company (the “Common Stock”), at an exercise price equal to the closing price of the Common Stock as reported on the Over-the-Counter Bulletin Board on the Grant Date.

(b)           The Option awarded hereunder is intended to be a non-qualified stock option and is not intended to be treated as a “qualified” stock option as such term is defined under Section 422 of the Code as herein defined.

2.   Vesting. 

The Options granted herein will vest over 3 years and are contingent on the Optionee’s continued employment with the Company. To the extent that less than the entire Option is exercised, the Company will return to the Optionee a new Option for the number of Options Shares not exercised.  Unless the Board of Directors of the Company or a designated committee thereof (the “Board”), in its sole discretion, accelerates the exercisability of all or any portion of the Option Shares at such time and under such circumstances as the Board deems appropriate, the Option will vest and expire in accordance with the following vesting schedule:

 

	
Number of Option Shares

	
Vesting Dates

	
Expiration Date

	
20% of the Option Shares

	
May 7, 2010

	
May 6, 2013

	
40% of the Option Shares

	
May 7, 2011

	
May 6, 2013

	
40% of the Option Shares

	
May 7, 2012

	
May 6, 2013

 

3.   Exercise of Option.

(a)          The Option may be exercised with respect to all or any part of the number of vested Option Shares by the giving of written notice (“Notice”) of the intent to exercise to the Company at least  5 days prior to the date on which exercise is to occur. The Notice shall specify the exercise date and the number of Option Shares as to which the Option is to be exercised. Every share of Common Stock acquired through the exercise of this Option shall be deemed to be fully paid at the time of exercise and payment of the exercise price.

 

 

  

 

  

 

(b)         Full payment of the Option exercise price shall be made on or before the exercise date specified in the Notice.  Such full payment having occurred on or before the exercise date specified in the Notice, or as soon thereafter as is practicable, the Company shall cause to be delivered to the Optionee a certificate or certificates for the Option Shares then being purchased.  If the Optionee fails to pay for any of the Option Shares specified in the Notice, or fails to accept delivery of Option Shares, the Optionee’s right to purchase such Option Shares may be terminated by the Company.

(c)          The  Option exercise price may be paid by the following methods at the Optionee’s sole discretion::

	
(i)  

	
paid in cash;

	
(ii)  

	
paid by delivering shares of Common Stock having a Fair Market Value on the date of payment equal to the amount of the exercise price, but only to the extent such exercise of an Option would not result in an adverse accounting charge to the Company for financial accounting purposes with respect to the shares used to pay the exercise price unless otherwise determined by the Board. However, only Common Stock which the option holder has held for at least six months on the date of the exercise may be surrendered in payment of the exercise price for the options;

	
(iii)  

	
through a “cashless exercise” procedure implemented by the Company; or

	
(iv)  

	
by such other consideration as may be approved by the Board from time to time; provided, however, that such method and time for payment shall be permitted by and be in compliance with applicable law.

In the event that the Option is exercised through a cashless exercise pursuant to this subsection, the number of Common Shares issued to the Optionee shall be determined according to the following formula:  X = Y(A-B)

                                             A

 

	
Where:

	
X =  the number of Common Shares that shall be issued to the Optionee;

	  	
Y = the number of Common Shares for which this Option is being exercised (which shall include both the number of Common Shares issued to the Optionee and the number of Common  Shares subject to the portion of the Option being cancelled in payment of the Exercise Price);

	  	
A = the Fair Market Value (as defined below) of one Common Share; and

	  	
B =  the Exercise Price.

 

4.   Expiration Date.  To the extent not previously exercised, the Option and all rights with respect thereto, shall terminate and become null and void upon the Expiration Date shown above.

5.   Fractional Shares.  No fractional shares of Common Stock will be issued upon the exercise of this Option and any fractions resulting from the exercise of this Option shall be eliminated in each case by rounding downward to the nearest whole share.

6.   Definitions. Whenever used herein, the following terms shall have their respective meanings set forth below:

(a)          “Agreement” means this Non-qualified Stock Option Agreement (No. NQ- [      ]).

 

 

  

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(b)         “Code” means the Internal Revenue Code of 1986, as amended. References in this Agreement to any section of the Code shall be deemed to include any amendments or successor provisions to such section and any regulations under such section.

(c)           “Cause” shall mean any of the following:

(i) a material breach or material default by Optionee of the terms of any employment agreement to which such Optionee is subject;

(ii) gross negligence or willful misconduct by Optionee or the breach of fiduciary duty by Optionee in the performance of his/her duties as an employee, consultant or director of the Company;

(iii) the commission by Optionee of an act of fraud, embezzlement or any other crime in connection with Optionee’s duties to the Company; or

(iv) conviction of Optionee of a felony or any other crime that would materially interfere with the performance of Optionee’s duties owed to the Company or would, in the sole discretion of the Company, materially damage the reputation of the Company.

(d)          “Employee” means an employee of the Company (including an officer or director who is such an employee).

(e)          “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended.

(f)           “Fair Market Value” means (A) during such time as the Common Stock is registered under Section 12 of the Exchange Act, the closing price of the Common Stock as reported by an established stock exchange or automated quotation system on the day for which such value is to be determined, or, if no sale of the Common Stock shall have been made on any such stock exchange or automated quotation system that day, on the next preceding day on which there was a sale of such Common Stock, or (B) during any such time as the Common Stock is not listed upon an established stock exchange or automated quotation system, the mean between dealer “bid” and “ask” prices of the Common Stock in the over-the-counter market on the day for which such value is to be determined, as reported by the Financial Industry Regulatory Authority, Inc., or (C) during any such time as the Common Stock cannot be valued pursuant to (A) or (B) above, the fair market value shall be as determined by the Board considering all relevant information including, by example and not by limitation, the services of an independent appraiser.

7.   Termination.  The Option may be exercised at any time or from time to time prior to the Expiration Date in accordance with the vesting schedule set forth above (the “Option Term”).  The Option Term is contingent upon the continued service of the Optionee with the Company.  The Option shall be exercisable after the Optionee’s termination of employment with the Company only during the applicable time period determined in accordance with the following provisions and thereafter shall terminate:

(a)          Disability or Death.  If the Optionee’s employment terminates because of the death or permanent and total disability of the Optionee (as determined by the Board in its discretion), such termination shall have no effect on the Option then held, to the extent exercisable on the date on which the Optionee’s employment terminated, may be exercised in whole or in part by the Optionee’s guardian, legal representative or by the person to whom the Option is transferred by devise or the laws of descent and distribution no later than the Expiration Date.

 

 

  

3

  

 

(b)          Other Termination.  If the Optionee’s employment terminates for any reason other than death or permanent and total disability, the vested portion of the Option then held at the date of termination, to the extent exercisable on the date on which the Optionee’s employment terminated, may be exercised in whole or in part by the Optionee within 90 days but in any event no later than the Expiration Date; provided, however, that if such exercise of the Option would result in liability for the Optionee under Section 16(b) of the Securities Exchange Act of 1934, as amended, then such 90 day period automatically shall be extended until the tenth day following the last date upon which the Optionee has any liability under Section 16(b), but in any event no later than the Expiration Date.

(c)          Termination for Cause.  Notwithstanding anything herein to the contrary, if a Optionee’s employment with the Company is terminated for Cause, as defined herein below, or violates any of the terms of their employment after they have become vested in any of their rights herein, the Optionee’s full interest in such rights shall immediately terminate on the date of such termination of employment and all rights thereunder shall cease.  Whether an Optionee’s employment is terminated for Cause shall be determined by the Board in its sole discretion.

8.   Changes in Capital Structure; Corporate Transactions.

(a)          In the event of a stock split, reverse stock split, stock dividend, or recapitalization, combination or reclassification or similar change in the capital structure of the Company, appropriate adjustments shall be made by the Board in (i) the number of shares subject to the Option, and (ii) the exercise price per share of any outstanding Option.

(b)          In the event of the proposed dissolution or liquidation of the Company, the Board shall notify the Optionee at least 10 days prior to such proposed action.  To the extent not previously exercised, the Option shall terminate immediately prior to the consummation of such proposed action; provided, however, that the Board, in its sole discretion, may permit the exercise of the Option prior to its termination, even if such Option was not otherwise exercisable.

(c)          In the event of a merger or consolidation of the Company with or into another corporation or entity in which the Company does not survive, or in the event of a sale of all or substantially all of the assets of the Company in which the stockholders of the Company receive securities of the acquiring entity or an affiliate thereof, the Option shall be assumed or equivalent options shall be substituted by the successor corporation (or other entity) or a parent or subsidiary of such successor corporation (or other entity); provided, however, that if such successor does not agree to assume the Options or to substitute equivalent options therefor, the Board, in its sole discretion, may permit the exercise of the Option prior to consummation of such event, even if such Option were not otherwise exercisable.

9.   Stockholder Rights.  Until the date a stock certificate is issued to the Optionee, the Optionee shall have no rights as a stockholder with respect to the Option Shares, and no adjustments shall be made for dividends of any kind or nature, distributions, or other rights for which the record date is prior to the date such stock certificate is issued.

10.        Stock Certificate.  Until the Option Shares are registered, each certificate representing the Option Shares shall be stamped or otherwise imprinted with a legend substantially in the following form:

 

 

  

4

  

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR IF APPLICABLE, STATE SECURITIES LAWS.  THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND APPLICABLE STATE LAWS OR COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM, SUCH COMPLIANCE, AT THE OPTION OF THE COMPANY, TO BE EVIDENCED BY AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED

11.         Registration of Option Shares. The Board, in its sole discretion, may determine to file with the Securities and Exchange Commission and keep continuously effective, a Registration Statement on Form S-8 with respect to Option Shares.

12.         No Transfer or Assignment.

(a)           Neither (i) this Agreement, (ii) any of the rights, benefits, duties or obligations hereunder, nor (iii) the Option Shares, may be transferred or assigned without the prior written consent of the Company.

(b)          Notwithstanding the foregoing, the Option Shares may be transferable by (i) will or by the laws of descent and distribution, in the case of the death of the Optionee, to (ii) the ex-spouse of the Optionee pursuant to the terms of a domestic relations order, (iii) the spouse, children, siblings or grandchildren of the Optionee (“Immediate Family Members”), (iv) a trust or trusts for the exclusive benefit of such Immediate Family Members, or (v) a partnership or limited liability company in which such Immediate Family Members are the only partners or members. In addition, there may be no consideration for any such transfer. Following transfer, any such Options shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. No transfer pursuant to this Section 13 shall be effective to bind the Company unless the Company shall have been furnished with written notice of such transfer together with such other documents regarding the transfer as the Board shall request.

13.         No Right to Continued Employment. This grant is not a contract of employment and the terms of the Optionee’s employment shall not be affected hereby or by any agreement referred to herein except to the extent specifically so provided herein or therein.  Nothing herein shall be construed to impose any obligation on the Company or on any subsidiary thereof to continue the Optionee’s employment.

14.         Taxes upon Exercise of Options. The Optionee agrees that:

 

(a)          no later than the date of any exercise of the Option, the Optionee shall pay to the Company, or make arrangements satisfactory to the Board regarding the payment of, any federal, state or local taxes required by law to be withheld upon or in connection with such exercise; and

(b)          the Company shall, to the extent permitted or required by law, have the right to deduct all federal, state and local taxes of any kind required by law to be withheld upon any exercise of the Option or from any payment of any kind otherwise due to the Optionee with respect to the Option.

15.   Amendment. The Company may unilaterally amend this Agreement at any time if the Company determines, in its sole discretion that amendment is necessary or advisable in light of any applicable addition to or change in the Code, any regulations issued thereunder, or any federal or state securities law or other applicable law or regulation.

 

 

  

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16.   Acknowledgement. The Optionee acknowledges having received and read a copy of this Agreement and agrees to comply with all laws, rules and regulations applicable to this Agreement and to the sale or other disposition of the Common Stock of the Company received.

17.   Entire Agreement.  This Agreement contains the entire understanding between the parties.  No other representations or covenants have induced either party to execute this Agreement, and this Agreement supersedes all prior understandings among the parties hereto with respect to the subject matter contained herein.

18.   Notices.  Any notice to the Company provided for in this Agreement shall be addressed to it in care of its secretary at its executive offices located at No.194, Guogeli Street, Harbin, Heilongjiang Province, China 150001, and any notice to the Optionee shall be addressed to the Optionee at the address currently shown on the payroll records of the Company.  Any notice shall be deemed duly given if and when properly addressed and posted by registered or certified mail, postage prepaid.

19.   Severability.  If any provision of this Agreement is held to be illegal or invalid for any reason, the remaining provisions are to remain in full force and effect and are to be construed and enforced in accordance with the purposes of this Agreement as if the illegal or invalid provision or provisions did not exist.

20.   Headings.  The section headings of this Agreement are for convenience of reference only and do not form a part of the terms of this Agreement.

IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Non-qualified Stock Option Agreement, and the Optionee has placed his or her signature hereon, effective as of the Grant Date.

 

[Signature Page Follows]

 

 

  

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SOKO FITNESS & SPA GROUP, INC.

	  	  
	  	  
	  	  
	
By:

	
 

	  	
Name:

	  	
Title:

	  	  
	  	  
	
ACCEPTED AND AGREED TO:

	  	  
	  	  
	  	  
	 
	
[Name]

	
Optionee

	  	  

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