Document:

exv10w12

 

Exhibit 10.12

ALLIANCE BANKSHARES CORPORATION

2007 INCENTIVE STOCK PLAN

FORM OF

STOCK OPTION AGREEMENT

     THIS STOCK OPTION AGREEMENT (the “Agreement”) evidences the grant of a stock option (“Option”)
under the Alliance Bankshares Corporation 2007 Incentive Stock Plan (the “Plan”) on the Grant Date
shown on Schedule I to {NAME} (the “Grantee”), who is an Employee, Non-Employee Director or
Non-Employee Service Provider of Alliance Bankshares Corporation, a Virginia corporation
(“Alliance”) and/or its Subsidiaries. This Agreement also describes the terms and conditions of
the Option evidenced by this Agreement.

1. Grant of Option.

     In consideration of the services rendered to Alliance and/or its Subsidiaries by the Grantee
as an Employee, Non-Employee Director or Non-Employee Service Provider, Alliance hereby grants to
the Grantee as of the Grant Date shown on Schedule I, an Option of the type shown on Schedule I, to
purchase all or any part of the number of shares of stock of Alliance, $4.00 par value per share
(“Stock”) listed on Schedule I, at the price per share stated on Schedule I, which is the fair
market value of a share of the Stock as of the Grant Date as determined in good faith by the 2007
Incentive Stock Plan Committee (“Committee”), pursuant to the provisions of the Plan. The Option
shall vest and become exercisable in accordance with the vesting schedule set forth on Schedule I
provided the Grantee remains in Company Service through any such vesting date. The shares of Stock
purchasable upon exercise of the Option are hereinafter sometimes referred to as the “Option
Shares”. This Option is granted pursuant to the Plan and is subject to the terms thereof.

2. Termination of Option.

     (a) Unless terminated earlier pursuant to the other provisions of this Agreement, the Option
and all rights hereunder with respect thereto, to the extent such rights shall not have been
exercised, shall expire and become null and void on the Expiration Date stated on Schedule I or, if
earlier, after the expiration of ten (10) years from the Grant Date (the “Option Term”); provided,
however, that the provisions of Section 6.4 of the Plan shall also apply if the Option is a
Non-Qualified Stock Option.

     (b) Upon the occurrence of the Grantee’s cessation of Company Service, the Option, to the
extent not previously exercised, shall terminate and become null and void (i) immediately if such
cessation of Company Service was for “Cause” (as defined in paragraph 2(e) below); (ii) twelve (12)
months after cessation of Company Service due to the Grantee’s death or disability within the
meaning of Section 22(e)(3) of the Internal Revenue Code (“Disability”); or (ii) three (3) months
following the Grantee’s cessation of Company Service for any other reason.

     (c) In no event shall the date the Option is terminated extend beyond the Option Term.

     (d) In the event of the death of the Grantee, the Option may be exercised by the Grantee’s
legal representative(s), but only to the extent that the Option would otherwise have been
exercisable by the Grantee as of the date of his or her death.

 

 

     (e) For purposes of this Agreement, the term “Cause” shall mean (i) any act of malfeasance or
wrongdoing committed by the Grantee affecting Alliance and/or its Subsidiaries, (ii) any breach by
Grantee of a covenant not to compete, consulting contract or employment contract, with Alliance
and/or its Subsidiaries, (iii) any act of disloyalty against Alliance and/or its Subsidiaries, (iv)
any conduct, including but not limited to conviction of a misdemeanor or felony, clearly tending to
bring discredit upon Alliance and/or its Subsidiaries, or (v) the refusal or manifest inability of
the Grantee to perform his or her duties and obligations with Alliance and/or its Subsidiaries.
Whether “Cause” exists shall be determined by the Committee and such determination shall be final
and binding on the Grantee.

     (f) For purposes of this Agreement, “Company Service” means service as an Employee,
Non-Employee Director or Non-Employee Service Provider of Alliance and/or its Subsidiaries.
Notwithstanding any contrary provision or implication herein, in determining cessation of Company
Service for purposes hereof, transfers between the Company and/or any Subsidiary shall be
disregarded and shall not be considered a cessation of Company Service, and changes in status
between that of an Employee, a Non-Employee Director and/or Non-Employee Service Provider shall be
disregarded and shall not be considered a cessation of Company Service.

3. Exercise of Option.

     (a) The Grantee may exercise the Option upon tender to the Secretary of Alliance of full
payment of the Option Price, with respect to all or any part of the number of Option Shares then
exercisable in accordance with the vesting schedule set forth in Schedule I, and a Notice of
Exercise in the form of Schedule II to this Agreement. The Notice of Exercise shall specify the
number of Option Shares as to which the Option is to be exercised and the date of exercise thereof,
which date shall be no earlier than the date of the Secretary’s receipt of the Option Price and
such Notice of Exercise.

     (b) Payment (in U.S. dollars) by the Grantee of the Option Price for the Option Shares
purchased shall be made in cash, or, with the prior written consent of the Committee, in whole or
in part through the surrender of previously acquired shares of Stock or shares that would otherwise
be acquired upon exercise of the Option, at their fair market value on the exercise date. Payment
of the Option Price may also be made in accordance with any broker-assisted cashless exercise
procedures approved by Alliance and as in effect from time to time.

     On the exercise date specified in the Grantee’s notice or as soon thereafter as is
practicable, Alliance shall cause the Option Shares then being purchased to be issued and a
certificate or certificates for the Option Shares to be delivered to the Grantee. If at any time
the Committee shall determine in its discretion, that the listing, registration or qualification of
the Option or the Option Shares upon any securities exchange or under any state or federal law, or
the consent or approval of any governmental regulatory body, is necessary or desirable as a
condition of, or in connection with, the Option or the issuance or purchase of Stock thereunder,
the Option may not be exercised in whole or in part nor may stock be delivered, unless such
listing, registration, qualification, consent or approval shall have been effected or obtained free
of any conditions not acceptable to the Committee.

4. Adjustment of and Changes in Stock of Alliance.

     The number and class of Option Shares covered by this Option, and the Option Price thereof,
shall be proportionately, equitably and appropriately adjusted in such manner as the Committee
shall determine in order to retain the economic value or opportunity to reflect any stock dividend,
stock split, recapitalization, merger, consolidation, reorganization, reclassification,

 

 

combination, exchange of shares or similar event in which the number or class of Stock is changed
without the receipt or payment of consideration by Alliance.

5. Fair Market Value.

     As used herein, the “fair market value” of a share of Stock shall be determined by the
Committee, in the same manner as is provided in the Plan.

6. No Stockholders Rights.

     Neither the Grantee nor any personal representative shall be, or shall have any of the rights
and privileges of, a stockholder of Alliance with respect to any shares of Stock purchasable or
issuable upon the exercise of the Option, in whole or in part, prior to the date of exercise of the
Option. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions or other rights for which the record date is prior
to the date of such exercise, except as provided in paragraph 4 of this Agreement.

7. Non-Transferability of Option.

     During the Grantee’s lifetime, the Option hereunder shall be exercisable only by the Grantee
or any guardian or legal representative of the Grantee, and the Option shall not be transferable
except, in case of the death of the Grantee, by will or the laws of descent and distribution, nor
shall the Option be subject to attachment, execution or other similar process. In the event of (a)
any attempt by the Grantee to alienate, assign, pledge, hypothecate, transfer, or otherwise dispose
of the Option, except as provided for herein, or (b) the levy of any attachment, execution or
similar process upon the rights or interest hereby conferred, the Option is terminated and it shall
thereupon become null and void.

8. Company Service.

     Nothing under the Plan or in this Agreement shall confer upon the Grantee any right to
continue Company Service or in any way affect any right of the Company to terminate the Grantee’s
Company Service without prior notice at any time for any or no reason. If Grantee is an Employee,
except as may otherwise be limited by a written agreement, the right of Alliance and/or its
Subsidiaries to terminate at will at any time Grantee’s employment (whether by dismissal,
discharge, retirement or otherwise) is specifically reserved by Alliance and/or its Subsidiaries
and acknowledged by the Grantee.

9. Amendment of Option.

     The Option may be amended by the Committee at any time (i) if the Committee determines, in its
sole discretion, that amendment is necessary or advisable to bring the Plan and/or the Option into
compliance with, or in light of, any addition to or change in the Internal Revenue Code or in the
regulations issued thereunder, or any federal or state securities law or other law or regulation,
which addition or change occurs after the Grant Date and by its terms applies to the Option; or
(ii) other than in the circumstances described in clause (i), with the consent of the Grantee.

10. Notice.

     Any notice to Alliance provided for in this instrument shall be addressed to it in care of its
Secretary at its executive offices at 14200 Park Meadow Drive, Suite 200 South, Chantilly, Virginia
20151, and any notice to the Grantee shall be addressed to the Grantee at the current address shown
either on the payroll records or other files of Alliance and/or its Subsidiaries. Any

 

 

notice shall be deemed to be duly given if and when properly addressed and posted by registered or
certified mail, postage prepaid.

11. Tax Withholding.

     Alliance and/or its Subsidiaries shall have the right to deduct from any compensation or any
other payment of any kind (including withholding the issuance of shares of Stock) due Grantee the
amount of any federal, state or local taxes required by law to be withheld as the result of the
exercise of the Option or the disposition (as that term is defined in Section 424(c) of the
Internal Revenue Code) of shares of Stock acquired pursuant to the exercise of the Option. In lieu
of such deduction, the Committee may require Grantee to make a cash payment to Alliance or a
Subsidiary equal to the amount required to be withheld. If Grantee does not make such payment when
requested, Alliance may refuse to issue any Stock certificate under the Plan until arrangements
satisfactory to the Committee for such payment have been made.

12. Notice of Disqualifying Disposition.

     If Grantee makes a disposition (as that term is defined in §424(c) of the Internal Revenue
Code) of any shares of Stock acquired pursuant to the exercise of an Incentive Stock Option within
two (2) years of the Grant Date or within one (1) year after the shares of Stock are transferred to
Grantee upon exercise of the Option, Grantee shall notify the Committee of such disposition in
writing within 10 days of disposition.

13. Gender.

     As used herein the masculine shall include the feminine as the circumstances may require.

14. Headings.

     The headings in the Agreement are for reference purposes only and shall not affect the meaning
or interpretation of the Agreement.

15. Incorporation of Plan by Reference.

     The Option is granted pursuant to the terms of the Plan, the terms of which are incorporated
herein by reference, and the Option shall in all respects be interpreted in accordance with the
Plan. The Committee, shall interpret and construe the Plan and this instrument, and its
interpretations and determinations shall be conclusive and binding on the parties hereto and any
other person claiming an interest hereunder, with respect to any issue arising hereunder or
thereunder. Defined terms in this Agreement shall have the same meaning as provided under the
Plan, unless a different meaning is provided in this Agreement.

16. Governing Law.

     The validity, construction, interpretation and effect of this Agreement shall exclusively be
governed by and determined in accordance with the law of the Commonwealth of Virginia, except to
the extent preempted by federal law, which shall to the extent govern.

 

 

     IN WITNESS WHEREOF, ALLIANCE has caused its duly authorized officers to execute and attest
this Agreement, and the Grantee has placed his or her signature hereon.

	 	 	 	 	 
	ALLIANCE BANKSHARES CORPORATION	 	Attest:
	 
	 	 	 	 
	 
	 	 	 	 
	By:

	 	
 

	 	
 

	 

	 	 	 	               Secretary
	 
	 	 	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:

	 	
 
	 	 
	 

	 	     Grantee	 	 

 

 

SCHEDULE I

ALLIANCE BANKSHARES CORPORATION

STOCK OPTION AGREEMENT

2007 INCENTIVE STOCK PLAN

	 	 	 
	Grantee:

	 	{NAME}
	 

	 	 
	 
	 	 
	Type of Option:
	 	 
	 

	 	 
	 

	 	[Insert Incentive Stock Option (“ISO”) or Nonqualified Stock Option]
	 
	 	 
	Grant Date:
	 	 
	 

	 	 
	 
	 	 
	Number and Class

of Shares:
	 	 
	 

	 	 

	 	 	 
	Option Price Per Share:
	 	 
	 

	 	 
	 

	 	[If an ISO, insert a price which is at least 100% of the Fair
Market Value, or for a 10% owner, at least 110%]

	 	 	 
	Expiration Date:
	 	 
	 

	 	 
	 

	 	[Insert a date that is no later than the 10th anniversary of the Grant Date or, for an ISO granted to a 10%
owner, the 5th such anniversary]

Vesting Schedule:

As long as Alliance Bank continues to be well-capitalized as that term is defined at Section
208.43(b) of the Rules and Regulations of the Board of Governors of the Federal Reserve System, 12
CFR Section 208.43(b) or any successor regulation thereto, and subject to earlier vesting upon a
Change in Control (as defined in the Plan), the following will be the vesting schedule for the
Option granted.

On the first anniversary of the Grant Date, 15% of the shares of stock subject to the
Option (rounded down to the nearest whole share) will be first exercisable.

On the second anniversary of the Grant Date, an additional 20% of the shares of stock
subject to the Option (rounded down to the nearest whole share) will be first exercisable.

On the third anniversary of the Grant Date, an additional 25% of the shares of stock
subject to the Option (rounded down to the nearest whole share) will be first exercisable.

On the fourth anniversary of the Grant Date, the balance of the shares of stock subject to
the Option will be first exercisable.

One hundred percent (100%) of the shares of Stock subject to the Option are immediately
exercisable upon a Change in Control prior to the termination of the Option.

 

 

SCHEDULE II

NOTICE OF EXERCISE

ALLIANCE BANKSHARES CORPORATION

2007 INCENTIVE STOCK PLAN

STOCK OPTION AGREEMENT

Corporate Secretary

Alliance Bankshares Corporation

14200 Park Meadow Drive, Suite 200 South

Chantilly, Virginia 20151

Gentlemen:

               Effective                                         , 20___, (which is no earlier than the date this notice is
delivered to the Secretary), I hereby exercise the [Insert Type]                                          Stock Option
granted to me on                                         ,                     , by Alliance Bankshares Corporation (the
“Corporation”), subject to all the terms and provisions thereof and of the Alliance Bankshares
Corporation 2007 Incentive Stock Plan (the “Plan”), and notify you of my desire to purchase                      shares (the “Shares”) of Common Stock of the Corporation at a price of $                    
per share pursuant to the exercise of said Option.

Total Amount Enclosed: $                    

	 	 	 
	Date:                                        

	 	                                                                         
       
	 

	 	(Grantee)
	 
	 	 
	 
	 	 
	 

	 	Received by Alliance Bankshares Corporation
	 
	 	 
	 

	 	On:                                        , 20_____
	 
	 	 
	 

	 	By:exv4w2

 

Exhibit 4.2

CONSULTING AGREEMENT

     This Consulting Agreement (the “Agreement”) is made as of September 1, 2007, by and between Solar
Power, Inc., having a principal place of business at 1115 Orlando Avenue, Roseville, CA
95661-5247 (the “Company”), and Steven Kay, having a principal place of business at 100 The
Embarcadero, Penthouse, San Francisco, CA 94105-1291 (the “Consultant”).

     In consideration of services rendered and to be rendered, the mutual covenants set forth
herein and for other valuable consideration, receipt and adequacy of which is acknowledged, the
Company and the Consultant agree as follows:

     1. Term of the Contract. This Agreement will be effective for one year as of September
1, 2007.

     2. Services to be Provided. Consultant agrees to provide the Company with sales leads
for its franchise division.

     3. Independent Contractor. It is the express intention of the parties that Consultant
is an independent contractor and not an employee, agent, joint venturer, partner or representative
of the Company. Nothing in this Agreement shall be interpreted or construed as creating or
establishing the relationship of employer and employee. Both parties acknowledge that Consultant
is not an employee for state or federal tax purposes. Consultant will be responsible for payment,
staffing, worker’s compensation coverage and related matters for any people that Consultant may
employ.

     4. Method of Performing Services. Consultant will determine the method, details, and
means of performing the above-described services. Consultant further agrees that the services to
be performed will be conducted in a professional and competent manner in conformity with this
Agreement and all Company policies, including its General Confidentiality and Disclosure policy.
In providing the services hereunder, the Consultant will comply with all applicable laws, rules,
regulations and standards of any public authority having jurisdiction.

     5. Compensation for Services. In consideration for the services to be performed by
Consultant, Company agrees to issue the Consultant 50,000 warrants to purchase common stock of
Solar Power, Inc. at an exercise price of $1.00 and to register said warrants on Form S-8.

     6. Ownership of Inventions; Representations and Indemnification.

          6.1. Consultant agrees that it will not incorporate into any work performed for Company any
trade secrets, confidential information, or other information in violation of any third party’s
rights, and represents that it will not employ any persons to assist or work on Company’s products
unless such person can certify that they will not use any trade secrets, patents or other
information in violation of any third party’s rights. Consultant further certifies that Consultant
has no outstanding agreements or obligations that would conflict with any of the provisions of this
Agreement, or that would preclude Consultant from complying with the provisions of this

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Agreement.

          6.2. Consultant agrees that all notes, records, drawings, designs, inventions, improvements,
developments, discoveries, trade secretes, copyrightable material, as well as all derivatives and
modifications thereof and thereto (collectively, the “Inventions”) conceived of, made or
discovered by Consultant, solely or in collaboration with others, which are created in furtherance
of the services to be performed by Consultant pursuant to this Agreement, as well as any and all
intellectual property rights therein and thereto, are the sole property of the Company. In
addition, any Inventions that constitute copyrightable subject matter shall be considered “works
made for hire” as that term is defined under the copyright laws of the United States, as amended
from time to time. Consultant agrees to assign (or cause to be assigned) and does hereby assign
fully to the Company all such Inventions and any intellectual property rights relating thereto.

          6.3. Consultant agrees to assist the Company, or its designee, at the Company’s expense, in
every proper way to secure the Company’s rights in the Inventions and any intellectual property
rights relating thereto in any and all countries, including the disclosure to the Company of all
pertinent information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments and all other instruments that the Company shall deem necessary
in order to apply for and obtain such rights and in order to assign and convey to the Company, its
successors, assigns and nominees the sole and exclusive rights, title and interest in and to such
Inventions and any intellectual property rights relating thereto. Consultant agrees that
Consultant’s obligation to execute, or cause to be executed, when it is in Consultant’s power to do
so, any such instrument or papers shall continue after termination of this Agreement.

          6.4. Omitted

          6.5. Omitted

          6.6. Notwithstanding anything else contained in this Agreement, Consultant makes no
representation and shall not be obligated to provide Company with any rights in “off the shelf”
software in connection with the services to be performed by Consultant pursuant to this Agreement.

     7. State and Federal Taxes. Consultant is responsible for paying all required state
and federal taxes. In particular, the Company will not withhold FICA, make state or federal
unemployment insurance contributions, withhold state or federal income taxes, make disability
insurance contributions or obtain workers’ compensation insurance on behalf of Consultant or any of
Consultant’s employees or subcontractors.

     8. No Privileges for Consultant. Consultant understands and agrees that neither it
nor any of Consultant’s employees or subcontracts shall be entitled to any of the rights and
privileges of the Company’s employees, including, but not limited to retirement benefits, medical
insurance coverage, life insurance coverage, disability insurance coverage, severance pay benefits,
paid vacation and sick pay or overtime pay.

     9. Payment of Expenses. In addition to the compensation to be paid to Consultant
pursuant to Section 5 above, Company shall pay Consultant its actual out-of—pocket expense

2

 

reasonably incurred by Consultant in furtherance of its performance hereunder including,
without limitation, amounts incurred for travel, specialized hardware and third party software to
be incorporated into the deliverables and products under this Agreement. The Consultant shall
submit receipts and required reports for reimbursement.

     10. Time Devoted to Company. Consultant agrees to devote a reasonable amount of time
necessary to perform the services under this Agreement. Consultant may represent, perform services
for, and be employed by such additional persons or companies as a consultant or employee, so long
as such additional services does not materially interfere with the services to be rendered by
Consultant to Company pursuant to this Agreement.

     11. Hours During Which Services May Be Performed. Consultant may perform the services
under this Agreement at any suitable time and location that Consultant sees fit, provided that
Consultant will attempt to attend any meetings at the Company as may be reasonably requested by the
Company’s CEO.

     12. Assignment of Consultant’s Duties. This Agreement may not be assigned by
Consultant without the prior written consent of Company.

     13. Restrictions on Insider Trading. Consultant acknowledges that it is aware, and
that it will advise its agents and affiliates who are informed as to the matters that are the
subject of this Agreement, that the United States securities laws prohibit any person who has
material, non-public information concerning the Company from purchasing or selling securities of
the Company or from communicating such information to any other person under circumstances in which
it is reasonably foreseeable that such person is likely to purchase or sell such securities.
Consultant agrees that it will not, and it will cause each of the aforementioned persons to not
violate any provisions of this paragraph or the United States securities laws or the analogous laws
of any state or foreign government, until such time as this Agreement has terminated and Consultant
has ceased having access to any confidential information.

     14. Confidentiality and Non-Disclosure. Consultant agrees to execute the form of
Proprietary Information and Confidentiality Agreement attached hereto as Exhibit A.

     15. Expiration of Agreement. Unless otherwise terminated or extended as provided
herein, this Agreement shall automatically terminate on August 31, 2008 .

     16. Termination. Notwithstanding any other term contained herein, this Agreement
shall be terminated immediately by either party upon a breach by the other party of any of the
terms in this Agreement.

          16.1. Termination on the Occurrence of Stated Events. This Agreement shall terminate
automatically on the occurrence of any of the following events:

	 	(i)	 	Bankruptcy or insolvency of either party; or
	 
	 	(ii)	 	Dissolution of either party.

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	 	(iii)	 	Upon thirty days written notice by the Company or by the
Consultant.

          16.2. Termination Without Cause. Notwithstanding anything to the contrary in this
Agreement, either party may terminate this Agreement at any time upon thirty (30) days written
notice to the other party for any reason, without cause.

          16.3. Effect of Termination. Notwithstanding anything else contained in this
Agreement, termination of this Agreement shall not affect Company’s obligation to pay Consultant
for services rendered and expenses incurred by Consultant through the date of termination.

     17. Notices. All notices or other communications required or permitted hereunder
shall be in writing (except as otherwise provided herein) and shall be deemed duly given when
received by delivery in person, by facsimile or by an overnight courier service or three (3) days
after deposit in the U.S. Mail, certified with postage prepaid, addressed as follows:

	 	 	 
	If to the Company:

	 	Solar Power, Inc.
	 

	 	1115 Orlando Avenue
	 

	 	Roseville, CA 95661-5247
	 

	 	Facsimile: (916) 745-0999
	 

	 	Attn: CEO
	 
	 	 
	If to the Consultant:

	 	Steven Kay
	 

	 	100 The Embarcadero, Penthouse
	 

	 	San Francisco, CA 94105-1291
	 

	 	Facsimile: (415) 512-9277

or to such other addresses as a party may designate by five (5) days’ prior written notice to the
other party.

     18. Entire Agreement; Modification. This Agreement supersedes any and all agreements,
either oral or written, between the parties hereto with respect to the rendering of services by
Consultant for Company and contains all of the covenants and agreements between the parties with
respect to the rendering of such services in any manner whatsoever. Each party to this Agreement
acknowledges that no representations, inducements, promises, or agreements, orally or otherwise,
have been made by any party, or anyone acting on behalf of any party, which are not embodied
herein, and that no other agreement, statement, or promise not contained in this Agreement shall be
valid or binding. Any modification, amendment or waiver of this Agreement will be effective only
if it is in writing signed by the party to be charged.

     19. Partial Invalidity. If any provision in this Agreement is held by a court of
competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will
nevertheless continue in full force without being impaired or invalidated in any way.

     20. Arbitration. Disputes arising under this Agreement shall be settled by one
arbitrator

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pursuant to the rules of the American Arbitration Association (the “AAA”) for Commercial
Arbitration (the “Rules”). Such arbitration shall be held in Sacramento County, California, or at
such other location as mutually agreed to by the parties to the dispute. Any award of the
arbitrator shall be accompanied by a written opinion giving the reasons for the award. The
determination of the arbitrator pursuant to this Section 20 shall be final and binding on the
parties and may be entered for enforcement before any court of competent jurisdiction.

     21. Attorneys’ Fees; Prejudgment Interest. If the services of an attorney are
required by any party to secure the performance hereof or otherwise upon the breach or default of
another party to this Agreement, or if any judicial remedy or arbitration is necessary to enforce
or interpret any provision of this Agreement or the rights and duties of any person in relation
thereto, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and other
expenses, in addition to any other relief to which such party may be entitled. Any award of
damages following judicial remedy or arbitration as a result of the breach of this Agreement or any
of its provisions shall include an award of prejudgment interest from the date of the breach at the
maximum amount of interest allowed by law.

     22. Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of California, without regard to its conflict of laws principles.

     23. Counterparts. This Agreement may be executed in one or more counterparts, each of
which, shall be deemed to be an original, but all of which together shall constitute one and the
same instrument. For the purpose of proving the authenticity of this Agreement, facsimile
signature shall be treated the same as original signatures.

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     WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized agents.

	 	 	 	 	 
	 	COMPANY

Solar Power, Inc.

 	 
	 	
/s/ Stephen C. Kircher	 
	 	Stephen C. Kircher, CEO 	 
	 	 
September 1, 2007

Date 	 
	 
	 	CONSULTANT

 	 
	 	
/s/ Steven Kay	 
	 	Steven Kay 	 
	 	 
September 1, 2007

Date 	 

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EXHIBIT A

SOLAR POWER, INC.

PROPRIETARY INFORMATION AND CONFIDENTIALITY AGREEMENT

Stephen Kay, with principal address at 100 The Embarcadero, Penthouse, San Francisco, CA
94105-1291 (“Consultant”) is retained by Solar Power, Inc., with principal address at 1115
Orlando Avenue, Roseville, CA 95661-5247 (“Company”) to provide management services related to the
Company’s strategic marketing programs and as a Consultant shall participate in telephone
conferences and meetings as the Company may request (“Engagement”). During the Engagement,
Consultant may learn, or be exposed to, information which the Company maintains as confidential
information, kept secret from its competitors and not disclosed to the public. Consultant enters
into this Proprietary Information and Confidentiality Agreement (the “Agreement”) in consideration
of the Engagement by the Company. Consultant represents that it has not, and agrees that it will
not, enter into any other agreement, oral or written, which is in conflict or inconsistent with the
terms of this Agreement.

1. DEFINITIONS AND TERM

     1.1. Proprietary Information. The term “Confidential and Proprietary Information” relates to
the following classes of information related to the Company s business:

          1.1.1. Trade secrets and other information which is owned by the Company, which includes, but
is not limited to, processes, process parameters, methods or practice of operations or
manufacturing, technical plans, schematics, drawings, formulas and related documentation, customer
lists, distribution lists, financial information, customer needs, market analysis, and another
compilations of information which relate to the Company’s business, which has not been released by
the Company as general public information, and from which economic or competitive advantage is
sought by the Company in maintaining the non-disclosure of such information.

          1.1.2. The Company relations with its employees, including without limitation salaries, job
classifications and skill levels.

          1.1.3. Financial sales and marketing data compiled by or on behalf of the Company, as well as
all financial, sales, marketing and business plans or strategies, customer lists and nonpublic
pricing.

          1.1.4. Any and all other information designated by the Company as Confidential and Proprietary
Information, or which the Company maintains secret through limited access and non-distribution.

2. DISCLOSURE OF CONFIDENTIAL INFORMATION

     2.1. Acknowledgment of Confidential Disclosure. Consultant acknowledges that during
the term of Engagement with the Company. Consultant will have access to and become acquainted with
the Company’s non-public Confidential and Proprietary Information

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     2.2. No Use or Disclosure. Consultant agrees not to use or disclose, directly or
indirectly, any of the Company’s Confidential and Proprietary Information at any time or in any
manner, except as required in the course of Engagement with the Company pursuant to procedures
which will insure maintenance of the secrecy of that information. Consultant’s obligations under
this paragraph are continuing and shall survive termination of Consultant’s Engagement with the
Company.

     2.3. No Disclosure or Use of Other’s Secrets. Consultant agrees not to disclose to the
Company or use on the Company’s behalf any confidential information or trade secrets obtained from
other companies or persons, and further promises not to bring confidential information or trade
secrets of others onto the Company’s premises.

3. RESTRICTIONS ON CONSULTANT

     3.1 No Competitive Planning. While Engaged by the Company, Consultant agrees not to
undertake any planning for any outside business activity competitive with the profit unit of the
Company for which Consultant works.

     3.2. No Hiring of Other Employees. While Engaged by the Company and for six months
after that Engagement ends, Consultant agrees not to employ or attempt to employ, in competition
with the Company, any of the Company’s other employees; provided, however, that the foregoing shall
not in any manner limit or otherwise restrict the Consultant’s obligations not to use or disclose
any Confidential or Proprietary Information in connection with such attempts, whether direct or
indirect.

     3.3. No Solicitation of Customers. While Engaged by the Company and for twelve months
after that Engagement ends, Consultant agrees not to knowingly divert or attempt to divert (by
solicitation or other means), whether direct or indirect, the Company’s customers existing at the
time Engagement ends; provided, however, that the foregoing shall not in any manner limit or
otherwise restrict the Consultant’s obligations not to use or disclose any Confidential or
Proprietary Information in connection with such attempts, whether direct or indirect.

4. [INTENTIONALLY OMITTED]

5. GENERAL PROVISIONS

     5.1. Governing Law. This Agreement, made in Granite Bay, California, shall be governed
by, and construed in accordance with, the Laws of the State of California, notwithstanding
conflicts of law principles.

     5.2. Notification of New Employer. The Company shall have the right to notify any
future employers of Consultant of Consultant’s rights and obligations under this Agreement.

     5.3. Entire Agreement. This Agreement, together with the Consulting Agreement, dated
as of the date hereof, between the Company and Consultant, sets forth the entire agreement and
understanding between the Company and Consultant relating to the subject matter herein and merges
an prior discussions and agreements with respect to such matter. No modification or amendment to

8

 

this Agreement nor any waiver of any right under this Agreement will be effective unless in
writing and signed by both parties hereto. Any changes in Consultant’s duties, salary or
compensation or status of Engagement will not affect the validity or scope of this Agreement.

     5.4. Severability. If one or more of the provisions in this Agreement are deemed void
or unenforceable, the remaining provisions will continue in full force and effect.

     5.5. Successors and Assigns. This Agreement will be binding upon any of successor or
assign of Consultant, and will be for the benefit of the Company, its successors and its assigns.

     5.6. No Grant of Rights. Nothing in this Agreement shall be construed as granting to
Consultant any right or license to use Confidential and Proprietary Information, other than as
required in the performance of its Engagement duties on behalf of the Company.

     5.7. Injunctive Relief. Consultant acknowledges and agrees that any unauthorized use
or disclosure of the Company’s Confidential and Proprietary Information would result in irreparable
injury to the Company, and that the Company shall be entitled to obtain injunctive relief, in
addition to any other remedies available, to enforce the terms and provisions of this Agreement.

     5.8. Attorneys Fees. If the services of an attorney are required by any party to
secure the performance of any act required hereunder, or otherwise upon the breach of any term or
condition herein, or if any judicial remedy is necessary to enforce the terms hereof, the party
seeking and receiving such relief shall be entitled to an award of it costs, including attorneys
fees, in addition to any other relief to which that party may be entitled.

     [REMAINDER OF PAGE LEFT BLANK]

9

 

     WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized agents.

	 	 	 	 	 
	 	Solar Power, Inc.

 	 
	 	
/s/ Stephen C. Kircher	 
	 	Stephen C. Kircher, CEO 	 
	 	 
September 1, 2007

Date 	 
	 
	 	CONSULTANT

 	 
	 	
/s/ Steven Kay	 
	 	Steven Kay 	 
	 	 
September 1, 2007

Date 	 
	 

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