Document:

fs1ex10ii_healthdirect.htm

 

Exhibit 10.2

 

HEALTH DIRECTORY, INC.

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT made as of this 1st day of May 2011 by and between Health Directory, Inc.. a  Nevada corporation, having an office at 6312 Seven Corners Center #303, Falls Church, VA 22044 (hereinafter referred to as "Employer") and Humaira Haider, an individual residing at 6312 Seven Corners Center #303, Falls Church, VA 22044

 (hereinafter referred to as "Employee").

W I T N E S E T H:

WHEREAS, Employer desires to employ Employee as the President and CEO; and

WHEREAS, Employee is willing to be employed as the President and CEO in the manner provided for herein, and to perform the duties of the President and CEO upon the terms and conditions herein set forth;

NOW, THEREFORE, in consideration of the promises and mutual covenants herein set forth it is agreed as follows:

1.           Employment of the President and CEO. Employer hereby employs Employee as President and CEO

2.           Term.

a.           Subject to Section 9 below and further to Section 2(b) below, the term of this Agreement shall commence upon the execution hereof (the “Commencement Date”) and expire three years from such date (“Initial Term”).  Each 12-month period after the end of the initial term forward during the term hereof shall be referred to as an “Annual Period.”

b.           Subject to Section 10 below, unless the Board of Directors of the Company (the "Board") of Employer shall determine to the contrary and shall so notify Employee in writing on or before the end of the Initial Term or any Annual Period or unless the Employee notifies Employer in writing thirty (30) days before the end of the Initial Term or any Annual Period of his desire not to renew this Agreement, then at the end of either the Initial Term or the Annual Period, as the case maybe, the term of this Agreement shall be automatically extended for one (1) additional Annual Period to be added at the end of the then current term of this Agreement.

3.           Duties.  The Employee shall perform those functions generally performed by persons of such title and position, shall attend all meetings of the stockholders and the Board when possible and shall perform any and all related duties and shall have any and all powers as may be prescribed by resolution of the Board, and shall be available to confer and consult with and advise the officers and directors of Employer at such times that may be required by Employer.  Employee shall report directly and solely to the Board.

4.           Compensation.

(i) Employee shall be paid a minimum of $500 per month.  Employee shall be paid periodically in accordance with the policies of the Employer during the term of this Agreement, but not less than monthly.

(ii)  Employee is eligible for an annual bonus, if any, which will be determined and paid in accordance with policies set from time to time by the Board, in its sole discretion.

 

5.           Expenses.  Employee shall submit to Employer reasonably detailed receipts or credit card statements with respect thereto which substantiate the Employee’s expenses.  Employee shall use his own credit cards and be reimbursed each month for his business expenses.

6.           Vacation.   Employee shall be entitled to receive one week vacation time during each year of employment upon dates agreed upon by Employer.  Upon separation of employment, for any reason, vacation time accrued and not used shall be paid at the salary rate of Employee in effect at the time of employment separation.

 

7.           Secrecy.  At no time shall Employee disclose to anyone any confidential or secret information (not already constituting information available to the public) concerning (a) internal affairs or proprietary business operations of Employer or its affiliates or (b) any trade secrets, new product developments, patents, programs or programming, especially unique processes or methods (c) research done on behalf of company (d) contracts and meetings on behalf of company (e) financial information of the company.

 

8.          Covenant Not to Compete.  Employee will not, at any time, anywhere in the areas where Employer does business during the term of this Agreement, and for one (1) year thereafter, either directly or indirectly, engage in, with or for any enterprise, institution, whether or not for profit, business, or company, competitive with the business of Employer as such business may be conducted on the date thereof, as a creditor, guarantor, or financial backer, stockholder, director, officer, consultant, advisor, employee, member, inventor, producer, director, or otherwise of or through any corporation, partnership, association, sole proprietorship or other entity; provided, that an investment by Employee, his spouse or his children is permitted if such investment is not more than five percent (5%) of the total debt or equity capital of any such competitive enterprise or business and further provided that said competitive enterprise or business is a publicly held entity whose stock is listed and traded on an international or national stock exchange.

9.           Termination.

a.  Termination by Employer

(i) Employer may terminate this Agreement immediately for Cause.  For purposes hereof, "Cause" shall mean (A) engaging by the Employee in conduct that constitutes activity in competition with Employer; (B) the conviction of Employee for the commission of a felony against the Employer; and/or (C) the habitual abuse of alcohol or controlled substances.   In no event shall alleged incompetence of Employee in the performance of Employee's duties be deemed grounds for termination for Cause.

(ii)  This agreement automatically shall terminate upon the death of Employee, except that Employee's estate shall be entitled to receive any amount accrued under Section 4 for the period prior to Employee's death and any other amount to which Employee was entitled of the time at his death.

b. Termination by Employee or Employer without Cause

(i)  Employee or Employer shall have the right to terminate Employee’s employment under this Agreement upon thirty (30) days' notice to either party.

10.        Consequences of Breach by Employer;

Employment Termination

a.  If this Agreement is terminated pursuant to Section 9(b)(i) hereof, or if Employer shall terminate Employee's employment under this Agreement in any way that is a breach of this Agreement by Employer, the following shall apply:

(i)   Employee shall be entitled to payment of any previously declared bonus and additional compensation as provided in Section 4 above.

b. In the event that Employee’s employment is terminated for any of the following (i) for cause as set forth in Section 9(a)(i) of this Agreement, (ii) the expiration of the term of this Agreement, or (iii) resignation by the Employee in accordance with Section 9(b)(i), then the provisions of Section 8 shall apply to Employee.

 

  

  

  

 

11.           Remedies.     Employer recognizes that because of Employee's special talents, stature and opportunities in the Research and Investment market, in the event of termination by Employer hereunder (except under Section 9(a)(i) or (ii), or in the event of termination by Employee under Section 9(b)(i) before the end of the agreed term), the Employer acknowledges and agrees that the provisions of this Agreement regarding further payments of base salary, bonuses and the exercisability of rights constitute fair and reasonable provisions for the consequences of such termination, do not constitute a penalty, and such payments and benefits shall not be limited or reduced by amounts' Employee might earn or be able to earn from any other employment or ventures during the remainder of the agreed term of this Agreement.

12.           Excise Tax.  In the event that any payment or benefit received or to be received by Employee in connection with a termination of his employment with Employer would constitute a "parachute payment" within the meaning of Internal Revenue Code Section 280G or any similar or successor provision to 280G and/or would be subject to any excise tax imposed by Internal Revenue Code Section 4999 or any similar or successor provision then Employer shall assume all liability for the payment of any such tax and Employer shall immediately reimburse Employee on a "grossed-up" basis for any income taxes attributable to Employee by reason of such Employer payment and reimbursements.

 

 

13.           Arbitration.  Any controversies between Employer and Employee involving the construction or application of any of the terms, provisions or conditions of this Agreement, save and except for any breaches arising out of Sections 7 and 8 hereof, shall on the written request of either party served on the other be submitted to arbitration.  Such arbitration shall comply with and be governed by the rules of the American Arbitration Association.  An arbitration demand must be made within one (1) year of the date on which the party demanding arbitration first had notice of the existence of the claim to be arbitrated, or the right to arbitration along with such claim shall be considered to have been waived.  An arbitrator shall be selected according to the procedures of the American Arbitration Association.  The cost of arbitration shall be borne by the losing party unless the arbitrator shall determine otherwise.  The arbitrator shall have no authority to add to, subtract from or otherwise modify the provisions of this Agreement, or to award punitive damages to either party.

 

 

  

  

  

 

14.           Attorneys' Fees and Costs.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled.

15.           Entire Agreement; Survival.  This Agreement contains the entire agreement between the parties with respect to the transactions contemplated herein and supersedes, effective as of the date hereof any prior agreement or understanding between Employer and Employee with respect to Employee's employment by Employer. The unenforceability of any provision of this Agreement shall not effect the enforceability of any other provision.  This Agreement may not be amended except by an agreement in writing signed by the Employee and the Employer, or any waiver, change, discharge or modification as sought.  Waiver of or failure to exercise any rights provided by this Agreement and in any respect shall not be deemed a waiver of any further or future rights.  The provisions of Sections 4, 7, 8, 9(a)(ii), 10, 11, 12, 13, 14, 16, 17, 18 and 19 shall survive the termination of this Agreement.

16.           Assignment.  This Agreement shall not be assigned to other parties.

17.          Governing Law.  This Agreement and all the amendments hereof, and waivers and consents with respect thereto shall be governed by the internal laws of the State of Florida, without regard to the conflicts of laws principles thereof.

18.           Notices.  All notices, responses, demands or other communications under this Agreement shall be in writing and shall be deemed to have been given when

a.           delivered by hand;

b.           sent be telex or telefax, (with receipt confirmed), provided that a copy is mailed by registered or certified mail, return receipt requested; or

c.  received by the addressee as sent by express delivery service (receipt requested) in each case to the appropriate addresses, telex numbers and telefax numbers as the party may designate to itself by notice to the other parties:

(i)  if to the Employer:

6312 Seven Corners Center, # 303

Falls Church, VA 22044        

Telefax :

Telephone:  202.247.8363

 

 

  

  

  

 

Copy to: Anslow and Jaclin, Esq

4400 Route 9, 2nd Floor

Freehold, New Jersey 07728

Attention: Gregg Jaclin, Esq.

Telefax: (732) 577-1188

Telephone: (732) 409-1212

(ii) if to the Employee:

Humaira Haider

6312 Seven Corners Center, # 303

Falls Church, VA 22044                                                      

Telefax:

Telephone:  (202) 379 5331

 

19.           Severability of Agreement.  Should any part of this Agreement for any reason be declared invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion, which remaining provisions shall remain in full force and effect as if this Agreement had been executed with the invalid portion thereof eliminated, and it is hereby declared the intention of the parties that they would have executed the remaining portions of this Agreement without including any such part, parts or portions which may, for any reason, be hereafter declared invalid.

  

  

  

IN WITNESS WHEREOF, the undersigned have executed this agreement as of the day and year first above written.

 

 

Employee

By:________________________

           Humaira Haider2010 STOCK OPTION PLAN OF

 

  Xzeres Corp.

 

A Nevada Corporation

(Fourth Amended and Restated)

 

 

 

May 25, 2011

    	 

    	 

    

STOCK OPTION PLAN OF

 

Xzeres Corp.

 

TABLE OF CONTENTS

  

	 	Page No. 
	P URPOSE OF THE PLAN	1
	TYPES OF STOCK OPTIONS	1
	DEFINITIONS	1
	ADMINISTRATION OF THE PLAN	2
	GRANT OF OPTIONS	3
	STOCK SUBJECT TO PLAN	3
	TERMS AND CONDITIONS OF OPTIONS	3
	TERMINATION OR AMENDMENT OF THE PLAN	8
	INDEMNIFICATION	8
	EFFECTIVE DATE AND TERM OF THE PLAN	9

 

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STOCK OPTION PLAN OF

 

Xzeres Corp.

 

A Nevada Corporation

(Fourth Amended and Restated)

 

1.                  
PURPOSE OF THE PLAN

 

The purpose of this Fourth Amended and Restated
Stock Option Plan of Xzeres Corp. (the “Plan”) is to strengthen Xzeres Corp., a Nevada Corporation (hereinafter the
“Company”) by providing incentive stock options as a means to attract, retain and motivate key corporate personnel,
through ownership of stock of the Company, and to attract individuals of outstanding ability to render services to and enter the
employment of the Company or its subsidiaries.

 

2.                  
TYPES OF STOCK OPTIONS

 

There shall be two types of Stock Options (referred
to herein as "Options" without distinction between such different types) that may be granted under this Plan: (1) Options
intended to qualify as Incentive Stock Options under Section 422 of the Internal Revenue Code (“Qualified Stock Options”),
and (2) Options not specifically authorized or qualified for favorable income tax treatment under the Internal Revenue Code (“Non-Qualified
Stock Options”).

 

3.                  
DEFINITIONS

 

The following definitions are applicable to
the Plan:

 

(1)                
Board. The Board of Directors of the Company.

 

(2)                
Code. The Internal Revenue Code of 1986, as amended from time to time.

 

(3)                
Common Stock. The shares of Common Stock of the Company.

 

(4)                
Company. Xzeres Corp., a Nevada corporation.

 

(5)                
Consultant. An individual or entity that renders professional services to the Company as an
independent contractor and is not an employee or under the direct supervision and control of the Company.

 

(6)                
Disabled or Disability. For the purposes of Section 7, a disability of the type defined in
Section 22(e)(3) of the Code. The determination of whether an individual is Disabled or has a Disability is determined under procedures
established by the Plan Administrator for purposes of the Plan.

 

(7)                
Fair Market Value. For purposes of the Plan, the “fair market value" per share
of Common Stock of the Company at any date shall be: (a) if the Common Stock is listed on an established stock exchange or exchanges
or the NASDAQ National Market, the closing price per share on the last trading day immediately preceding such date on the principal
exchange on which it is traded or as reported by NASDAQ; or (b) if the Common Stock is not then listed on an exchange or the NASDAQ
National Market, but is quoted on the NASDAQ Small Cap Market, the NASDAQ electronic bulletin board or the National Quotation Bureau
pink sheets with a daily trading volume over each of the twenty days preceding such date of not less than 250,000 shares, the average
of the closing bid and asked prices per share for the Common Stock as quoted by NASDAQ or the National Quotation Bureau, as the
case may be, on the twenty trading days immediately preceding such date; or (c) if the Common Stock is not then listed on an exchange
or the NASDAQ National Market, or quoted by NASDAQ or the National Quotation Bureau with sufficient volume, an amount determined
in good faith by the Plan Administrator. In making this determination the Plan Administrator may, but is not required to, seek
and rely upon such expert opinions as the Plan Administrator deems advisable.

 

(8)                
Incentive Stock Option. Any Stock Option intended to be and designated as an "incentive
stock option" within the meaning of Section 422 of the Code. 

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(9)                
Non-Qualified Stock Option. Any Stock Option that is not an Incentive Stock Option.

 

(10)            
Optionee. The recipient of a Stock Option.

 

(11)            
Plan Administrator. The board or the Committee designated by the Board pursuant to Section
4 to administer and interpret the terms of the Plan.

 

(12)            
Stock Option. Any option to purchase shares of Common Stock granted pursuant to Section 7.

 

4.                  
ADMINISTRATION OF THE PLAN

 

This Plan shall be administered by the Board
of Directors or by a Compensation Committee (hereinafter the “Committee”) composed of members selected by, and serving
at the pleasure of, the Board of Directors (the “Plan Administrator”). Subject to the provisions of the Plan, the Plan
Administrator shall have authority to construe and interpret the Plan, to promulgate, amend, and rescind rules and regulations
relating to its administration, to select, from time to time, among the eligible employees and non-employee consultants (as determined
pursuant to Section 5) of the Company and its subsidiaries those employees and consultants to whom Stock Options will be granted,
to determine the duration and manner of the grant of the Options, to determine the exercise price, the number of shares and other
terms covered by the Stock Options, to determine the duration and purpose of leaves of absence which may be granted to Stock Option
holders without constituting termination of their employment for purposes of the Plan, and to make all of the determinations necessary
or advisable for administration of the Plan. The interpretation and construction by the Plan Administrator of any provision of
the Plan, or of any agreement issued and executed under the Plan, shall be final and binding upon all parties. No member of the
Committee or Board shall be liable for any action or determination undertaken or made in good faith with respect to the Plan or
any agreement executed pursuant to the Plan.

 

If a Committee is established, all of the members
of the Committee shall be persons who, in the opinion of counsel to the Company, are outside directors and "non-employee directors"
within the meaning of Rule 16b-3(b)(3)(i) promulgated by the Securities and Exchange Commission. From time to time, the Board may
increase or decrease the size of the Committee, and add additional members to, or remove members from, the Committee. The Committee
shall act pursuant to a majority vote, or the written consent of a majority of its members, and minutes shall be kept of all of
its meetings and copies thereof shall be provided to the Board. Subject to the provisions of the Plan and the directions of the
Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may deem advisable.

 

At the option of the Board, the entire Board
of Directors of the Company may act as the Plan Administrator during such periods of time as all members of the Board are “outside
directors” as defined in Treas. Regs. §1.162-27(e)(3), except that this requirement shall not apply during any period
of time prior to the date the Company's Common Stock becomes registered pursuant to Section 12 of the Securities Exchange Act of
1934, as amended.

 

5.                  
GRANT OF OPTIONS

 

The Company is hereby authorized to grant Incentive
Stock Options as defined in section 422 of the Code to any employee or director (including any officer or director who is an employee)
of the Company, or of any of its subsidiaries; provided, however, that no person who owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company, or any of its parent or subsidiary corporations, shall be eligible
to receive an Incentive Stock Option under the Plan unless at the time such Incentive Stock Option is granted the Option price
is at least 110% of the fair market value of the shares subject to the Option, and such Option by its terms is not exercisable
after the expiration of five years from the date such Option is granted.

 

An employee may receive more than one Option
under the Plan. Non-Employee Directors shall be eligible to receive Non-Qualified Stock Options in the discretion of the Plan Administrator.
In addition, Non-Qualified Stock Options may be granted to employees, officers, directors and consultants who are selected by the
Plan Administrator.

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6.                  
STOCK SUBJECT TO PLAN

 

The stock available for grant of Options under
the Plan shall be shares of the Company's authorized but unissued, or reacquired, Common Stock. The maximum aggregate number of
shares of the Company’s common stock that may be optioned and sold under the Plan is fifteen percent (15%) of the issued
and outstanding shares of the Company’s Common Stock as of May 25, 2011, the date this plan was adopted, as amended. As of
May 25, 2011, there are 18,821,327 shares issued and outstanding.

 

The maximum number of shares for which an Option
may be granted to any Optionee during any calendar year shall not exceed five percent (5%) of the issued and outstanding common
shares of the Company. In the event that any outstanding Option under the Plan for any reason expires or is terminated, the shares
of Common Stock allocable to the unexercised portion of the Option shall again be available for Options under the Plan as if no
Option had been granted with regard to such shares.

 

7.                  
TERMS AND CONDITIONS OF OPTIONS

 

Options granted under the Plan shall be evidenced
by agreements (which need not be identical) in such form and containing such provisions that are consistent with the Plan as the
Plan Administrator shall from time to time approve. Such agreements may incorporate all or any of the terms hereof by reference
and shall comply with and be subject to the following terms and conditions:

 

(1)                
Number of Shares. Each Option agreement shall specify the number of shares subject to the
Option.

 

(2)                
Option Price. The purchase price for the shares subject to any Option shall be determined
by the Plan Administrator at the time of the grant, but shall not be less than 85% of Fair Market Value per share. Anything to
the contrary notwithstanding, the purchase price for the shares subject to any Incentive Stock Option shall not be less than 100%
of the Fair Market Value of the shares of Common Stock of the Company on the date the Stock Option is granted. In the case of any
Incentive Stock Option granted to an employee who owns stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company, or any of its parent or subsidiary corporations, the Option price shall not be less than 110%
of the Fair Market Value per share of the Common Stock of the Company on the date the Option is granted. For purposes of determining
the stock ownership of an employee, the attribution rules of Section 424(d) of the Code shall apply.

 

(3)                
Notice and Payment. Any exercisable portion of a Stock Option may be exercised only by: (a)
delivery of a written notice to the Company prior to the time when such Stock Option becomes unexercisable herein, stating the
number of shares bring purchased and complying with all applicable rules established by the Plan Administrator; (b) payment in
full of the exercise price of such Option by, as applicable, delivery of: (i) cash or check for an amount equal to the aggregate
Stock Option exercise price for the number of shares being purchased, (ii) in the discretion of the Plan Administrator, upon such
terms as the Plan Administrator shall approve, a copy of instructions to a broker directing such broker to sell the Common Stock
for which such Option is exercised, and to remit to the Company the aggregate exercise price of such Stock Option (a “cashless
exercise”), or (iii) in the discretion of the Plan Administrator, upon such terms as the Plan Administrator shall approve,
shares of the Company's Common Stock owned by the Optionee, duly endorsed for transfer to the Company, with a Fair Market Value
on the date of delivery equal to the aggregate purchase price of the shares with respect to which such Stock Option or portion
is thereby exercised (a "stock-for-stock exercise"); (c) payment of the amount of tax required to be withheld (if any)
by the Company, or any parent or subsidiary corporation as a result of the exercise of a Stock Option. At the discretion of the
Plan Administrator, upon such terms as the Plan Administrator shall approve, the Optionee may pay all or a portion of the tax withholding
by: (i) cash or check payable to the Company, (ii) a cashless exercise, (iii) a stock-for-stock exercise, or (iv) a combination
of one or more of the foregoing payment methods; and (d) delivery of a written notice to the Company requesting that the Company
direct the transfer agent to issue to the Optionee (or his designee) a certificate for the number of shares of Common Stock for
which the Option was exercised or, in the case of a cashless exercise, for any shares that were not sold in the cashless exercise.
Notwithstanding the foregoing, the Company, in its sole discretion, may extend and maintain, or arrange for the extension and maintenance
of credit to any Optionee to finance the Optionee's purchase of shares pursuant to the exercise of any Stock Option, on such terms
as may be approved by the Plan Administrator, subject to applicable regulations of the Federal Reserve Board and any other laws
or regulations in effect at the time such credit is extended.

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(4)                
Terms of Option. No Option shall be exercisable after the expiration of the earliest of: (a)
ten years after the date the Option is granted, (b) three months after the date the Optionee's employment with the Company and
its subsidiaries terminates, or a Non-Employee Director or Consultant ceases to provide services to the Company, if such termination
or cessation is for any reason other than Disability or death, (c) one year after the date the Optionee's employment with the Company,
and its subsidiaries, terminates, or a Non-Employee Director or Consultant ceases to provide services to the Company, if such termination
or cessation is a result of death or Disability; provided, however, that the Option agreement for any Option may provide for shorter
periods in each of the foregoing instances. In the case of an Incentive Stock Option granted to an employee who owns stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company, or any of its parent or subsidiary corporations,
the term set forth in (a) above shall not be more than five years after the date the Option is granted. 

 

(5)                
Exercise of an Option. No Option shall be exercisable during the lifetime of an Optionee by
any person other than the Optionee. Subject to the foregoing, the Plan Administrator shall have the power to set the time or times
within which each Option shall vest or be exercisable and to accelerate the time or times of vesting and exercise; provided, however
each Option shall provide the right to exercise at the rate of at least 20% per year over five years from the date the Option is
granted. Unless otherwise provided by the Plan Administrator, each Option will not be subject to any vesting requirements. To the
extent that an Optionee has the right to exercise an Option and purchase shares pursuant hereto, the Option may be exercised from
time to time by written notice to the Company, stating the number of shares being purchased and accompanied by payment in full
of the exercise price for such shares.

 

(6)                
No Transfer of Option. No Option shall be transferable by an Optionee otherwise than by will
or the laws of descent and distribution.

 

(7)                
Limit on Incentive Stock Option. The aggregate Fair Market Value (determined at the time the
Option is granted) of the stock with respect to which an Incentive Stock Option is granted and exercisable for the first time by
an Optionee during any calendar year (under all Incentive Stock Option plans of the Company and its subsidiaries) shall not exceed
$100,000. To the extent the aggregate Fair Market Value (determined at the time the Stock Option is granted) of the Common Stock
with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year (under
all Incentive Stock Option plans of the Company and any parent or subsidiary corporations) exceeds $100,000, such Stock Options
shall be treated as Non-Qualified Stock Options. The determination of which Stock Options shall be treated as Non-Qualified Stock
Options shall be made by taking Stock Options into account in the Order in which they were granted.

 

(8)                
Restriction on Issuance of Shares. The issuance of Options and shares shall be subject to
compliance with all of the applicable requirements of law with respect to the issuance and sale of securities, including, without
limitation, any required qualification under state securities laws. If an Optionee acquires shares of Common Stock pursuant to
the exercise of an Option, the Plan Administrator, in its sole discretion, may require as a condition of issuance of shares covered
by the Option that the shares of Common Stock be subject to restrictions on transfer. The Company may place a legend on the share
certificates reflecting the fact that they are subject to restrictions on transfer pursuant to the terms of this Section. In addition,
the Optionee may be required to execute a buy-sell agreement in favor of the Company or its designee with respect to all or any
of the shares so acquired. In such event, the terms of any such agreement shall apply to the optioned shares.

 

(9)                
Investment Representation. Any Optionee may be required, as a condition of issuance of shares
covered by his or her Option, to represent that the shares to be acquired pursuant to exercise will be acquired for investment
and without a view toward distribution thereof, and in such case, the Company may place a legend on the share certificate(s) evidencing
the fact that they were acquired for investment and cannot be sold or transferred unless registered under the Securities Act of
1933, as amended, or unless counsel for the Company is satisfied that the circumstances of the proposed transfer do not require
such registration.

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(10)            
Rights as a Shareholder or Employee. An Optionee or transferee of an Option shall have no
right as a stockholder of the Company with respect to any shares covered by any Option until the date of the issuance of a share
certificate for such shares. No adjustment shall be made for dividends (Ordinary or extraordinary, whether cash, securities, or
other property), or distributions or other rights for which the record date is prior to the date such share certificate is issued,
except as provided in paragraph (13) below. Nothing in the Plan or in any Option agreement shall confer upon any employee any right
to continue in the employ of the Company or any of its subsidiaries or interfere in any way with any right of the Company or any
subsidiary to terminate the Optionee's employment at any time.

 

(11)            
No Fractional Shares. In no event shall the Company be required to issue fractional shares
upon the exercise of an Option.

 

(12)            
Exercise in the Event of Death. In the event of the death of the Optionee, any Option or unexercised
portion thereof granted to the Optionee, to the extent exercisable by him or her on the date of death, may be exercised by the
Optionee's personal representatives, heirs, or legatees subject to the provisions of paragraph (4) above.

 

(13)            
Recapitalization or Reorganization of the Company. Except as otherwise provided herein, appropriate
and proportionate adjustments shall be made (1) in the number and class of shares subject to the Plan, (2) to the Option rights
granted under the Plan, and (3) in the exercise price of such Option rights, in the event that the number of shares of Common Stock
of the Company are increased or decreased as a result of a stock dividend (but only on Common Stock), stock split, reverse stock
split, recapitalization, reorganization, merger, consolidation, separation, or like change in the corporate or capital structure
of the Company. In the event there shall be any other change in the number or kind of the outstanding shares of Common Stock of
the Company, or any stock or other securities into which such common stock shall have been changed, or for which it shall have
been exchanged, whether by reason of a complete liquidation of the Company or a merger, reorganization, or consolidation with any
other corporation in which the Company is not the surviving corporation, or the Company becomes a wholly-owned subsidiary of another
corporation, then if the Plan Administrator shall, in its sole discretion, determine that such change equitably requires an adjustment
to shares of Common Stock currently subject to Options under the Plan, or to prices or terms of outstanding Options, such adjustment
shall be made in accordance with such determination.

 

To the extent that the foregoing adjustments
relate to stock or securities of the Company, such adjustment shall be made by the Plan Administrator, the determination of which
in that respect shall be final, binding, and conclusive. No right to purchase fractional shares shall result from any adjustment
of Options pursuant to this Section. In case of any such adjustment, the shares subject to the Option shall he rounded down to
the nearest whole share. Notice of any adjustment shall be given by the Company to each Optionee whose Options shall have been
so adjusted and such adjustment (whether or not notice is given) shall be effective and binding for all purposes of the Plan.

 

In the event of a complete liquidation
of the Company or a merger, reorganization, or consolidation of the Company with any other corporation in which the Company is
not the surviving corporation, or the Company becomes a wholly-owned subsidiary of another corporation, any unexercised Options
granted under the Plan shall be deemed cancelled unless the surviving corporation in any such merger, reorganization, or consolidation
elects to assume the Options under the Plan or to issue substitute Options in place thereof; provided, however, that notwithstanding
the foregoing, if such Options would be cancelled in accordance with the foregoing, the Optionee shall have the right exercisable
during a ten-day period ending on the fifth day prior to such liquidation, merger, or consolidation to exercise such Option in
whole or in part without regard to any installment exercise provisions in the Option agreement.

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(14)            
Modification, Extension and Renewal of Options. Subject to the terms and conditions and within
the limitations of the Plan, the Plan Administrator may modify, extend or renew outstanding options granted under the Plan and
accept the surrender of outstanding Options (to the extent not theretofore exercised). The Plan Administrator shall not, however,
without the approval of the Board, modify any outstanding Incentive Stock Option in any manner that would cause the Option not
to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code. Notwithstanding the foregoing, no modification
of an Option shall, without the consent of the Optionee, alter or impair any rights of the Optionee under the Option.

 

(15)Other
Provisions. Each Option may contain such other terms, provisions, and conditions not inconsistent with the Plan as may be determined
by the Plan Administrator.

 

8.                  
TERMINATION OR AMENDMENT OF THE PLAN

 

The Board may at any time terminate or amend
the Plan; provided that, without approval of the holders of a majority of the shares of Common Stock of the Company represented
and voting at a duly held meeting at which a quorum is present or the written consent of a majority of the outstanding shares of
Common Stock, there shall be (except by operation of the provisions of sections (6) or (7)(13) above) no increase in the total
number of shares covered by the Plan, no change in the class of persons eligible to receive options granted under the Plan, no
reduction in the limits for determination of the minimum exercise price of Options granted under the Plan, and no extension of
the limits for determination of the latest date upon which Options may be exercised; and provided further that, without the consent
of the Optionee, no amendment may adversely affect any then outstanding Option or any unexercised portion thereof.

 

9.                  
INDEMNIFICATION

 

In addition to such other rights of indemnification
as they may have as members of the Board Committee that administers the Plan, the members of the Plan Administrator shall be indemnified
by the Company against reasonable expense, including attorney's fees, actually and necessarily incurred in connection with the
defense of any action, suit or proceeding, or in connection with any appeal therein to which they, or any of them, may be a party
by reason of any action taken or failure to act under or in connection with the Plan or any Option granted thereunder, and against
any and all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected
by the Company). In addition, such members shall be indemnified by the Company for any amount paid by them in satisfaction of a
judgment in any action, suit, or proceeding, except in relation to matters as to which it shall have been adjudged that such member
is liable for negligence or misconduct in the performance of his or her duties, provided however that within sixty (60) days after
institution of any such action, suit, or proceeding, the member shall in writing offer the Company the opportunity, at its own
expense, to handle and defend the same.

    	8

    	 

    

10.               
EFFECTIVE DATE AND TERM OF THE PLAN

 

This Plan shall become effective on the date
of adoption by the Company’s Board of Directors. Unless sooner terminated by the Board in its sole discretion, this Plan
will expire five calendar years from the date of its adoption.

 

11.               
MISCELLANEOUS

 

Any dispute arising out of
this Plan or any provision hereof, or of any agreement issued or executed under the Plan shall be resolved by the Plan Administrator,
and the decision of the Plan Administrator shall be final and binding upon all parties.

 

IN WITNESS WHEREOF, the Company by its
duly authorized officer, has caused this Plan to be executed as of May 25, 2011.

 

Xzeres Corp.

 

/s/ Frank Greco

By: Frank
Greco

Its:CEO
/ President

    	9

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