Item 1.01 Entry into a Material Definitive Agreement
As part of a plan for the Company to compensate current members, and attract new members, to its Board of Directors the Company intends to engage in a policy of providing stock option grants for service as a Director. In furtherance of this policy the Company authorized an option grant to Mr. Thomas Anderson in recognition of his services as a member of the XsunX Board of Directors between the periods October 1, 2003 and September 30, 2007. The option also provides for the grant of options for Director service to be rendered between the periods October 1, 2007 and September 30, 2008. The option grant providing for the grant of 1,250,000 Option Shares was authorized on October 23rd 2007 with an exercise price per share of $0.36. The vesting schedule is described below:
The vesting schedule for Mr. Anderson is:
The Option shall become exercisable in the following amounts upon the delivery and/or achievement by Optionee of the following milestones:
(a) The Option shall vest and become exercisable in the amount of 1,000,000 shares upon the effective date of the grant for services rendered as a member of the Company Board of Directors from the period beginning October 1, 2003 through September 30, 2007.
(b) Beginning October 1, 2007 the Option shall vest and become exercisable at the rate of 62,500 Shares upon the anniversary of each calendar quarter of continuous service as a Director, or prorated portion thereof, for services rendered as a member of the Company Board of Directors up to a total of 250,000 shares.