Document:

Exhibit
10.2

 

SUNWORKS,
INC.

RESTRICTED
SHARE UNIT AGREEMENT

 

This
Restricted Share Unit Agreement (the “Agreement”) is made and entered into as of the Grant Date, by and between
Sunworks, Inc., a Delaware corporation (the “Company”), and the person named below (the “Grantee”),
pursuant to the terms and conditions of the Sunworks, Inc. 2016 Equity Incentive Plan (the “Plan”). Unless
otherwise defined herein, the terms defined in the Plan shall have the same meanings in this Agreement.

 

Grantee:

Social
Security Number: 

Address:

 

Number
of Restricted Share Units: 

 

Grant
Date: 

 

1.
Grant of Restricted Share Units. In consideration for the performance of services by Grantee as a director, employee or consultant
(“Services”), the Company hereby grants an award of restricted share units, or RSUs (the “Award”),
to Grantee, subject to the conditions of this Agreement and the Plan. Each RSU represents the right to receive one Share, subject to
the terms of this Agreement and the Plan. As used in this Agreement, the term “Share” or “Shares”
shall mean shares of the Company’s common stock, par value $0.001 per share, which includes the Shares underlying the Award
granted under this Agreement, and all securities received (i) in replacement of the Shares, (ii) as a result of stock dividends or stock
splits with respect to the Shares and (iii) in replacement of the Shares in a merger, recapitalization, reorganization or similar corporate
transaction. For the avoidance of doubt, no Shares shall be issued to Grantee until such Shares have vested pursuant to Section 2
below.

 

2.
Vesting. The Award shall vest as follows:                          , provided that Grantee continues to perform Services for the Company through the
applicable vesting date.

 

2.1
Termination. If Grantee’s Services with the Company terminate for any reason before the vesting date, then the unvested
RSUs shall, as of the date of such termination, be forfeited immediately and all rights Grantee has to such RSUs shall immediately terminate.

 

2.2.
Change in Control. In the event of a Change in Control, this Award may be assumed or replaced by the successor or acquiring entity,
with appropriate adjustments as to the number and kind of shares issuable hereunder as the parties to the Change in Control shall agree.
In the alternative, the successor or acquiring entity may substitute equivalent awards or issue, in place of RSUs, substantially similar
equity incentives subject to vesting no less favorable to Grantee. In the event such successor or acquiring entity refuses to assume,
replace or substitute this Award, as provided above, pursuant to a Change in Control, then notwithstanding any other provision in the
Plan or this Agreement to the contrary, all RSUs subject to this Award shall become fully vested immediately prior to, and conditioned
upon, consummation of the Change in Control. In the event this Award is assumed, replaced or substituted, and, upon or within one year
following a Change in Control, the Company or the succeeding or acquiring entity terminates Grantee’s Service for any reason other
than for Cause, then the RSUs subject to this Award shall become fully vested.

 

    	 

    	 

    

 

3.
Settlement of Award. Subject to Section 5, as soon as practicable (but not later than 30 days) after the vesting of the Award,
in whole or part, the Company shall issue or transfer to Grantee (or such other person as is acceptable to the Company and designated
in the writing by Grantee) the number of Shares underlying the vested portion of the Award. The Company may effect such issuance or transfer
either by the delivery of one or more stock certificates to Grantee or by making an appropriate entry on the books of the Company or
the transfer agent of the Company. Except as otherwise provided in the Section 5.1, the Company shall pay all original issue or transfer
taxes and all fees and expenses incident to such delivery or issuance. Prior to the issuance or transfer to Grantee of the Shares, Grantee
shall have no direct or secured claim in any specific assets of the Company or in such Shares.

 

4.
No Rights as an Employee, Director or Consultant. Nothing in this Agreement shall affect in any manner whatsoever the right
or power of the Company, or a parent or Subsidiary of the Company, to terminate Grantee’s Service, for any reason, with or without
Cause.

 

5.
Withholding Taxes and Adjustments.

 

5.1.
Withholding Taxes. As a condition precedent to the issuance or transfer of any Shares upon the vesting of the Award, Grantee shall,
upon request by the Company, pay to the Company such amount as the Company may be required under all applicable federal, state, local
or other laws or regulations to withhold and pay over as income or other withholding taxes (“Tax Payments”)
with respect to the issuance or transfer of such Shares. If Grantee shall fail to advance the Tax Payments after request by the Company,
the Company may, in its discretion, deduct any Tax Payments from any amount then or thereafter payable by the Company to Grantee.

 

5.2.
Satisfaction of Tax Payments. Grantee may elect to satisfy his or her obligation to advance the Tax Payments by any of the following
means: (1) a check or cash payment to the Company, (2) delivery to the Company previously owned shares having an aggregate Fair Market
Value, determined as of the date on which such withholding obligation arises, (3) authorizing the Company to withhold whole Shares which
would otherwise be issued or transferred to Grantee having an aggregate Fair Market Value, determined as of the date on which such withholding
obligation arises, or (4) such other means as the Administrator may approve. No certificate representing a Share shall be delivered until
the Tax Payments have been satisfied in full.

 

6.
Adjustment. In the event of an equity restructuring, such as a stock dividend, stock split, spinoff or recapitalization, as
contemplated in Section 7.1 of the Plan, the number and class of securities subject to this Award shall be equitably adjusted by the
Administrator in accordance with Section 7.1 of the Plan.

 

7.
Compliance with Laws and Regulations. The issuance of Shares will be subject to and conditioned upon compliance by the Company
and Grantee with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange
or automated quotation system on which the Shares may be listed or quoted at the time of such issuance or transfer. The Shares issued
pursuant to this Agreement shall be endorsed with appropriate legends, if any, determined by the Company.

 

    	 

    	 

    

 

8.
Acknowledgement. The Company and Grantee agree that the RSUs are granted under and governed by the this Agreement and the
provisions of the Plan (incorporated herein by reference). Grantee (a) acknowledges receipt of a copy of the Plan and the Plan prospectus,
(b) represents that he or she has carefully read and are familiar with their provisions, and (c) hereby accept the RSUs subject to all
of the terms and conditions set forth herein and those set forth in the Plan. Grantee hereby agrees to accept as binding, conclusive
and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and this Agreement.

 

9.
Entire Agreement; Enforcement of Rights. This Agreement and the Plan constitute the entire agreement and understanding of
the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments
or negotiations concerning the purchase of the Shares hereunder are superseded. No modification of or amendment to this Agreement, nor
any waiver of any rights under this Agreement, shall be effective unless in writing and signed by the parties to this Agreement. The
failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

 

10.
Rights as a Stockholder. Subject to the terms and conditions of this Agreement, and the Plan, Grantee shall have all of the
rights of a stockholder of the Company with respect to the Shares only after the Shares are issued under this Agreement.

 

11.
No Transfer. RSUs may not be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of in any manner other
than by will or by the laws of descent or distribution or court order or unless otherwise permitted by the Administrator on a case-by-case
basis

 

12.
Tax Consequences. GRANTEE UNDERSTANDS THAT GRANTEE MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF GRANTEE’S ACQUISITION
OR DISPOSITION OF THE SHARES. GRANTEE REPRESENTS (i) THAT GRANTEE HAS CONSULTED WITH A TAX ADVISER THAT GRANTEE DEEMS ADVISABLE IN CONNECTION
WITH THE ACQUISITION OR DISPOSITION OF THE SHARES AND (ii) THAT GRANTEE IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE.

 

13.
Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement shall be binding upon
and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this
Agreement shall be binding upon Grantee and Grantee’s heirs, executors, administrators, legal representatives, successors and assigns.

 

14.
Governing Law; Severability. This Agreement shall be governed by and construed in accordance with the internal laws of the
State of Delaware as such laws are applied to agreements between Delaware residents entered into and to be performed entirely within
Delaware, excluding that body of laws pertaining to conflict of laws. If any provision of this Agreement is determined by a court of
law to be illegal or unenforceable, then such provision shall be enforced to the maximum extent possible and the other provisions shall
remain fully effective and enforceable.

 

    	 

    	 

    

 

15.
Notices. Any notice required to be given or delivered to the Company shall be in writing and addressed to the Corporate Secretary
of the Company at its principal corporate offices. Any notice required to be given or delivered to Grantee shall be in writing and addressed
to Grantee at the address indicated above or to such other address as Grantee may designate in writing from time to time to the Company.
All notices shall be deemed effectively given upon personal delivery, (i) three (3) days after deposit in the United States mail by certified
or registered mail (return receipt requested), (ii) one (1) business day after its deposit with any return receipt express courier (prepaid),
or (iii) one (1) business day after transmission by facsimile or email.

 

16.
Further Instruments. The parties agree to execute such further instruments and to take such further action as may be reasonably
necessary to carry out the purposes and intent of this Agreement.

 

17.
Headings; Counterparts. The captions and headings of this Agreement are included for ease of reference only and shall be disregarded
in interpreting or construing this Agreement. All references herein to Sections shall refer to Sections of this Agreement. This Agreement
may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which
together shall constitute one and the same agreement.

 

18.
Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any
time, in its discretion. The grant of this Award does not create any contractual right or other right to receive any other awards in
the future. Future awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the
Plan shall not constitute a change or impairment of the terms and conditions of Grantee’s employment with the Company.

 

19.
Code Section 409A. For purposes of this Agreement, a termination of employment will be determined consistent with the rules
relating to a “separation from service” as defined in Section 409A of the Internal Revenue Code and the regulations thereunder
(“Section 409A”). Notwithstanding anything else provided herein, to the extent any payments provided under
this Agreement in connection with Grantee’s termination of employment constitute deferred compensation subject to Section 409A,
and Grantee is deemed at the time of such termination of employment to be a “specified employee” under Section 409A, then
such payment shall not be made or commence until the earlier of (a) the expiration of the six-month period measured from Grantee’s
separation from service or (b) the date of Grantee’s death following such a separation from service; provided, however, that such
deferral shall only be effected to the extent required to avoid adverse tax treatment to Grantee including, without limitation, the additional
tax for which Grantee would otherwise be liable under Section 409A(a)(1)(B) in the absence of such a deferral. To the extent any payment
under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall
be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.
Payments pursuant to this Section are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury
Regulations.

 

20.
Award Subject to Company Clawback or Recoupment. To the extent permitted by applicable law, the RSUs shall be subject to clawback
or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of Grantee’s
employment or other Service that is applicable to Grantee. In addition to any other remedies available under such policy, applicable
law may require the cancellation of Grantee’s RSUs (whether vested or unvested) and the recoupment of any gains realized with respect
to Grantee’s RSUs.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 

    	 

    

 

IN
WHEREOF, the Company has caused this Agreement to be executed by its duly authorized representative and Grantee has executed this Agreement
as of the Grant Date.

 

	SUNWORKS,
    Inc.	 	Grantee:
	 	 	 	                        
	By:
    	                           	 	 	 
	Gaylon
Morris, President	 	Name:Exhibit
10.3

 

SUNWORKS,
INC.

2016
EQUITY INCENTIVE PLAN

 

[NONQUALIFIED/INCENTIVE]
STOCK OPTION AGREEMENT

 

This
[NONQUALIFIED/INCENTIVE] STOCK OPTION AGREEMENT (the “Option Agreement”), dated as of _____________ and effective
as of _____________ (the “Grant Date”), is by and between Sunworks, Inc., a Delaware corporation (the “Company”),
and ___________ (the “Optionee”), a key employee of the Company or of a subsidiary of the Company (a “Related Corporation”),
pursuant to the Sunworks, Inc. 2016 Equity Incentive Plan (the “Plan”).

 

WHEREAS,
the Company desires to give the Optionee the opportunity to purchase shares of common stock of the Company, par value $0.001 per share
(“Common Stock”), in accordance with the provisions of the Plan, a copy of which is attached hereto;

 

NOW
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties
hereto, intending to be legally bound hereby, agree as follows:

 

1.
Grant of Option. The Company hereby grants to the Optionee the right and option (the “Option”) to purchase all or
any part of an aggregate of _____ (_____) shares of Common Stock. The Option is in all respects limited and conditioned as hereinafter
provided, and is subject in all respects to the terms and conditions of the Plan now in effect and as it may be amended from time to
time (but only to the extent that such amendments apply to outstanding options). Such terms and conditions are incorporated herein by
reference, made a part hereof, and shall control in the event of any conflict with any other terms of this Option Agreement. The Option
granted hereunder is intended to be [a nonqualified/an incentive] stock option (“[NQSO/ISO]”) meeting the requirements of
the Plan [/and section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), and not a nonqualified stock
option].

 

2.
Exercise Price. The exercise price of the shares of Common Stock covered by this Option shall be $          
per share. It is the determination of the committee administering the Plan (the “Committee”) that on the Grant Date the exercise
price was not less than the greater of (i) 100% (110% for an Optionee who owns more than 10% of the total combined voting power of all
shares of stock of the Company or of a Related Corporation a “More-Than-10% Owner”) of the “Fair Market Value”
(as defined in the Plan) of a share of Common Stock, or (ii) the par value of a share of Common Stock.

 

3.
Term. Unless earlier terminated pursuant to any provision of the Plan or of this Option Agreement, this Option shall expire on
               (the “Expiration Date”), which
date is not more than 10 years (five years in the case of a “More-Than-10% Owner”) from the Grant Date. This Option shall
not be exercisable on or after the Expiration Date.

 

4. Exercise
of Option. [The Option shall vest over a
            period in
           increments commencing on the Grant Date, provided that Optionee
remains continuously engaged as a director, officer or employee of, or consultant or advisor to, the Company or a Related
Corporation from the date hereof through the applicable vesting date].

 

The
Committee may accelerate any vesting date of the Option, in its discretion, if it deems such acceleration to be desirable. Once the Option
becomes exercisable, it will remain exercisable until it is exercised or until it terminates.

 

5.
Method of Exercising Option. Subject to the terms and conditions of this Option Agreement and the Plan, the Option may be exercised
by written notice to the Company at its principal office. The form of such notice is attached hereto and shall state the election to
exercise the Option and the number of whole shares with respect to which it is being exercised; shall be signed by the person or persons
so exercising the Option; and shall be accompanied by payment of the full exercise price of such shares. Only full shares will be issued.

 

    	 

    	 

    

 

The
exercise price shall be paid to the Company:

 

(a)
in cash, check payable to the order of the Company, or electronic funds transfer;

 

(b)
by notice and third party payment in such manner as may be authorized by the Committee;

 

(c)
through the delivery of shares of Common Stock previously
acquired by the Optionee;

 

(d)
by a reduction in the number of shares otherwise deliverable to the Optionee pursuant to the Option;

 

(e)
subject to such procedures as the Committee may adopt, pursuant to a “cashless exercise”
with a third party who provides financing for the purposes of (or who otherwise facilitates) the purchase or exercise of the Option;
or

 

(f)
in any combination of the foregoing.

 

In
the event the exercise price is paid, in whole or in part, with shares of Common Stock, the portion of the exercise price so paid shall
be equal to the Fair Market Value of the shares of Common Stock surrendered on the date of exercise.

 

Upon
receipt of notice of exercise and payment, the Company shall deliver a certificate or certificates representing the shares of Common
Stock with respect to which the Option is so exercised. The Optionee shall obtain the rights of a shareholder upon receipt of a certificate(s)
representing such shares of Common Stock.

 

Such
certificate(s) shall be registered in the name of the person so exercising the Option (or, if the Option is exercised by the Optionee
and if the Optionee so requests in the notice exercising the Option, shall be registered in the name of the Optionee and the Optionee’s
spouse, jointly, with right of survivorship), and shall be delivered as provided above to, or upon the written order of, the person exercising
the Option. In the event the Option is exercised by any person after the death or disability (as determined in accordance with Section
22(e)(3) of the Code) of the Optionee, the notice shall be accompanied by appropriate proof of the right of such person to exercise the
Option. All shares of Common Stock that are purchased upon exercise of the Option as provided herein shall be fully paid and non-assessable.

 

Upon
any exercise, vesting or payment of the Option, the Company or a Related Company shall have the right at its option to (i) require the
Optionee to pay or provide for the payment of any taxes which the Company or a Related Company may be required to withhold with respect
to the aware event or payment or (ii) deduct from any amount otherwise payable in cash to the Optionee any taxes which the Company or
a Related Company may be required to withhold with respect to such cash payment. In any case where
a tax is required to be withheld in connection with the delivery of shares of Common Stock under the Plan, the Committee may in its sole
discretion grant (either at the time of the award or thereafter) to the Optionee the right to elect, pursuant to such rules and subject
to such conditions as the Committee may establish, to have the Company reduce the number of shares to be delivered by (or otherwise reacquire)
the appropriate number of shares, valued in a consistent manner at their Fair Market Value or at the sales price in accordance with authorized
procedures for cashless exercises, necessary to satisfy the minimum applicable withholding obligation on exercise, vesting or payment.
Nothing in the preceding sentence shall impair or limit the Company’s rights with respect to satisfying withholding obligations
under Section 8.5 of the Plan.

 

6.
Non-Transferability of Option. This Option is not assignable or transferable, in whole or in part, by the Optionee other than
by will or by the laws of descent and distribution. During the lifetime of the Optionee, the Option shall be exercisable only by the
Optionee or, in the event of his or her disability, by his or her guardian or legal representative; provided, however, that the
Committee may permit the Option to be exercised by and paid to, or otherwise transferred to, other persons or entities pursuant to such
conditions and procedures, including limitations on subsequent transfers, as the Committee may, in its sole discretion, establish in
writing (provided that any such transfers of [NQSOs/ISOs] shall be limited to the extent permitted under the federal tax laws governing
[NQSOs/ISOs]). Any permitted transfer shall be subject to compliance with applicable federal and state securities laws.

 

    	 

    	 

    

 

7.
Change in Control. (a) For purposes of this Option Agreement, unless otherwise defined in an agreement between the Company and
the Optionee, a Change in Control shall be deemed to have occurred if:

 

	 	(i)	a
    tender offer (or series of related offers) shall be made and consummated for the ownership of 50% or more of the outstanding voting
    securities of the Company, unless as a result of such tender offer more than 50% of the outstanding voting securities of the surviving
    or resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately prior to
    the commencement of such offer), any employee benefit plan of the Company or a Related Corporation, and their affiliates;
	 	 	 
	 	(ii)	the
    Company shall be merged or consolidated with another corporation, unless as a result of such merger or consolidation more than 50%
    of the outstanding voting securities of the surviving or resulting corporation shall be owned in the aggregate by the stockholders
    of the Company (as of the time immediately prior to such transaction), any employee benefit plan of the Company or a Related Corporation,
    and their affiliates;
	 	 	 
	 	(iii)	the
    Company shall sell substantially all of its assets to another corporation that is not wholly owned by the Company, unless as a result
    of such sale more than 50% of such assets shall be owned in the aggregate by the stockholders of the Company (as of the time immediately
    prior to such transaction), any employee benefit plan of the Company or a Related Corporation and their affiliates; or
	 	 	 
	 	(iv)	a
    Person (as defined in the Plan) shall acquire 50% or more of the outstanding voting securities of the Company (whether directly,
    indirectly, beneficially or of record), unless as a result of such acquisition more than 50% of the outstanding voting securities
    of the surviving or resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately
    prior to the first acquisition of such securities by such person), any employee benefit plan of the Company or a Related Corporation,
    and their affiliates.

 

(b)
If, at any time, the Company shall effect a Change in Control transaction, then, on the date of the occurrence of such Change in Control
transaction, the surviving, continuing, successor, or purchasing corporation or parent corporation thereof, as the case may be (the “Acquiring
Corporation”), may either assume the Company’s rights and obligations under the Option or substitute for the Option a substantially
equivalent option for the Acquiring Corporation’s stock. In the event the Acquiring Corporation elects not to assume the Company’s
rights and obligations under the Option or substitute for the Option in connection with the Change in Control, and provided that the
Optionee’s Service has not terminated prior to such date, the Option shall immediately vest. Any vesting of the Option that was
permissible solely by reason of this Section 7(b) shall be conditioned upon the consummation of the Change in Control.

 

(c)
Notwithstanding the foregoing, if Change in Control is defined in an agreement between the Company and the Optionee, then, with respect
to such Optionee and the Option, Change in Control shall have the meaning ascribed to it in such agreement.

 

8.
Termination of Employment. 

 

(a)
If the Optionee’s employment with or service to the Company and all Related Corporations is terminated by the Optionee for any
reason other than death or Disability (defined below), the exercise period for the Option shall terminate three (3) months after the
last day that the Optionee is employed by or provides services to the Company or a Related Corporation; provided, however, that in the
event of the Optionee’s death during this period, those persons entitled to exercise the Option pursuant to the laws of descent
and distribution shall have one (1) year following the date of death within which to exercise such Option). The transfer of an Optionee
from the employ of or service to the Company to the employ of or service to a Related Corporation, or vice versa, or from one Related
Corporation to another, shall not be deemed to constitute a termination of employment or service for purposes of the Option Agreement.

 

    	 

    	 

    

 

(b)
In the event that the Optionee’s employment or service with the Company and all Related Corporations is terminated by the Company
or any Related Corporations for “cause”, the exercise period for the Option shall terminate immediately. The Committee will,
in its absolute discretion, determine the effect of all matters and questions relating to a termination of employment, including, but
not by way of limitation, the question of whether a leave of absence constitutes a termination of employment and whether a participant’s
termination is for “cause”.

 

For
purposes hereof, unless otherwise defined in an employment agreement between the Company and the Optionee, “Cause” shall
mean:

 

	 	(i)	conviction
    of a felony or a crime involving fraud or moral turpitude; 
	 	 	 
	 	(ii)	theft,
    material act of dishonesty or fraud, intentional falsification of any employment or Company records, or commission of any criminal
    act which impairs participant’s ability to perform appropriate employment duties for the Company; 
	 	 	 
	 	(iii)	intentional
    or reckless conduct or gross negligence materially harmful to the Company or the successor to the Company after a Change in Control,
    including violation of a non-competition or confidentiality agreement; 
	 	 	 
	 	(iv)	willful
    failure to follow lawful instructions of the person or body to which participant reports; or
	 	 	 
	 	(v)	gross
    negligence or willful misconduct in the performance of participant’s assigned duties.

 

Cause
shall not include mere unsatisfactory performance in the achievement of Optionee’s job objectives.

 

9.
Disability. If the Optionee’s employment with or service to the Company and all Related Corporations terminates by reason
of Disability (as defined below), then the exercise period for the Option shall terminate twelve (12) months after the last day
that the Optionee is employed by or provides services to the Corporation or a Related Corporation. “Disability” shall mean
an Optionee’s total and permanent disability; provided, that if Disability is defined in an employment agreement between the Company
and the Optionee, Disability shall have the meaning ascribed to it in such employment agreement.

 

10.
Death. If the Optionee’s employment with or service to the Company and all Related Corporations terminates by reason of
death, the exercise period for the Option shall terminate twelve (12) months after the last day that the participant is employed
by or provides services to the Corporation or a Related Corporation.

 

11.
Securities Matters.

 

(a)
If, at any time, counsel to the Company shall determine that the listing, registration or qualification of the shares of Common Stock
subject to the Option upon any securities exchange or under any state or federal law, or the consent or approval of any governmental
or regulatory body, or that the disclosure of non-public information or the satisfaction of any other condition is necessary as a condition
of, or in connection with, the issuance or purchase of shares of Common Stock hereunder, such Option may not be exercised, in whole or
in part, unless such listing, registration, qualification, consent or approval, or satisfaction of such condition shall have been effected
or obtained on conditions acceptable to the Board of Directors. The Company shall be under no obligation to apply for or to obtain such
listing, registration or qualification, or to satisfy such condition. The Committee shall inform the Optionee in writing of any decision
to defer or prohibit the exercise of an Option. During the period that the effectiveness of the exercise of an Option has been deferred
or prohibited, the Optionee may, by written notice, withdraw the Optionee’s decision to exercise and obtain a refund of any amount
paid with respect thereto.

 

    	 

    	 

    

 

(b)
The Company may require: (i) the Optionee (or any other person exercising the Option in the case of the Optionee’s death or Disability)
as a condition of exercising the Option, to give written assurances, in substance and form satisfactory to the Company, to the effect
that such person is acquiring the shares of Common Stock subject to the Option for his or her own account for investment and not with
any present intention of selling or otherwise distributing the same, and to make such other representations or covenants; and (ii) that
any certificates for shares of Common Stock delivered in connection with the exercise of the Option bear such legends, in each case as
the Company deems necessary or appropriate, in order to comply with federal and applicable state securities laws, to comply with covenants
or representations made by the Company in connection with any public offering of its shares of Common Stock or otherwise. The Optionee
specifically understands and agrees that the shares of Common Stock, if and when issued upon exercise of the Option, may be “restricted
securities,” as that term is defined in Rule 144 under the Securities Act of 1933 and, accordingly, the Optionee may be required
to hold the shares indefinitely unless they are registered under such Securities Act of 1933, as amended, or an exemption from such registration
is available.

 

(c)
The Optionee shall have no rights as a shareholder with respect to any shares of Common Stock covered by the Option (including, without
limitation, any rights to receive dividends or non-cash distributions with respect to such shares) until the date of issue of a stock
certificate to the Optionee for such shares of Common Stock. No adjustment shall be made for dividends or other rights for which the
record date is prior to the date such stock certificate is issued.

 

12.
Governing Law. This Option Agreement shall be governed by the applicable Code provisions to the maximum extent possible. Otherwise,
the laws of the State of Delaware (without reference to the principles of conflict of laws) shall govern the operation of, and the rights
of the Optionee under, the Plan and Options granted thereunder.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this [Nonqualified/Incentive] Stock Option Agreement as of the .

 

	 	SUNWORKS,
    INC.
	 	 	 
	 	 	 
	 	By:	 
	 	Title:	Chief
    Executive Officer 
	 	 	 
	 	OPTIONEE
	 	 
	 	 

 

    	 

    	 

    

 

SUNWORKS,
INC.

2016
EQUITY INCENTIVE PLAN

 

Notice
of Exercise of [Nonqualified/Incentive] Stock Option

 

I
hereby exercise the [nonqualified/incentive] stock option granted to me pursuant to the [Nonqualified/Incentive] Stock Option Agreement
dated as of ______________, 20___, by Sunworks, Inc. (the “Company”), with respect to the following number of shares of the
Company’s common stock (“Shares”), par value $0.001 per Share, covered by said option:

 

	 	Number
    of Shares to be purchased:	_______
	 	 	 
	 	Purchase
    price per Share:	$_______
	 	 	 
	 	Total
    purchase price:	$_______

 

	__	B.	Enclosed
    is cash, check made payable to the Company in the amount of $________ in full/partial [circle one] payment for such Shares;	 

 

and/or

 

	__	C.	A
notice and third party payment in the in the amount of $________ in full/partial [circle one] payment for such Shares;
	 

 

and/or

 

	__	D.

     
	Enclosed
is/are _______ Share(s) with a total fair market value of $_______ on the date hereof in full/partial [circle one] payment for
such Shares;
	 

 

and/or

 

	__	E.	A
notice with respect to the reduction in the number of Shares deliverable pursuant to the [Nonqualified/Incentive] Stock Option Agreement
dated as of ____________, 20__
	 

 

and/or

 

	__	F.	A
    “cashless exercise” with a third party who provides financing for the purposes of (or who otherwise facilitates) the
    purchase or exercise of the option which cashless exercise shall be in full/partial [circle one] payment for such Shares;	 

 

Please
have the certificate or certificates representing the purchased Shares registered in the following name or names * : ________________________________________; and sent
to _______________________.

 

	DATED:
    ____________ __, 20__	 	 
	 	 	Optionee’s
    Signature

 

	*	Certificates
    may be registered in the name of the Optionee alone or in the joint names (with right of survivorship) of the Optionee and his or
    her spouse.

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