STOCK OPTION
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AGREEMENT, made October 27, 2003, by and between Gexa Corp., a Texas corporation, hereinafter referred to as the "Company" and Xxxxx X. Xxxxx, an individual, hereinafter referred to as the "Optionee".
WITNESSETH:
WHEREAS, pursuant to the resolution adapted by the Board of Directors of the Company, the Company has agreed to grant to the Optionee and Option to purchase shares of common stock of the Company at the prices per share hereinafter set forth, such option to be for the term and upon the terms and conditions hereinafter stated;
NOW THEREFORE, in good consideration of the promises, the mutual covenants herein contained and other good and valuable consideration, the parties hereto agree as follows:
1. Option. The Company hereby grants to the Optionee the right and option (hereinafter referred to as the "Option") to purchase all or any part of an aggregate of 350,000 shares of common stock of the Company (hereinafter referred to as the "Shares") on the terms and conditions herein set forth.
2. Term. The term of the Option shall commence on October 27, 2003, the "Grant Date" and shall expire at 5:00 CST on October 26, 2008, unless sooner terminated by the Board of Directors of the Company.
3. Purchase Price. The purchase price of the Option shall be $2.25 per each share covered by the Option. The options shall vest 33.4% on the date of this grant and 33.3% on each of the first and second anniversary date of grant.
4. Securities to be Unregistered. Both the Option and the Shares covered by the Option shall be "unregistered securities" as defined for the General Rules and Regulations under the Securities Act of 1933, as amended (the "Act").
5. Exercise. The Option shall be exercisable in whole or in part at any time and from time to time during the term of the Option by written notice delivered to the Company at 00 Xxxxxxxx Xxxxx, Xxxxx 0000, Xxxxxxx, Xxxxx 00000. The notice shall state the number of Shares with respect to which the Option is being exercised, shall be signed by the Optionee and shall be accompanied by payment. The Option shall not be exercised at any time when its exercise or the delivery of the Shares referred to in the notice would be a violation of any law, governmental regulation or ruling. The Option shall be exercisable only by the Optionee.
6. Assignment and Transfer. The Option and the rights and obligations of parties hereunder shall inure to the benefit of and shall be binding upon their successors and assigns.
7. Optionee as Shareholder. Optionee shall have all rights as a shareholder with respect to the Shares covered by the Option on and subsequent to the date of issuance of a stock certificate or stock certificates to it. Adjustments will be made for dividends or other rights with respect to which the record date is on or subsequent to the date such stock certificates were issued.
8. Adjustments for Changes in Capital Structure. In the event of a change in the capital structure of the Company as a result of any stock dividend, stock split, combination or reclassification of shares, recapitalization or consolidation of, the number of shares covered by the Option shall be appropriately adjusted to ensure the same absolute benefit to the Optionee.
9. Notices. All notices required or permitted to be given under this option shall be sufficient if in writing and delivered or sent by registered or certified mail to the principal office of each party.
10. Governing Law. The Agreement shall be governed by and construed in accordance with the laws of the State of Texas.
IN WITNESS WHEREOF, the parties have executed this instrument on the day and year first written above.
| GEXA CORP. | ||
/s/ Xxxx Xxxxxxx Xxxx Xxxxxxx, Chairman |
STOCK OPTION
