Document:

EXHIBIT
10.5

 

STARENT NETWORKS, CORP.

 

Form of 

Incentive Stock Option Agreement

Granted Under 2007 Stock Incentive Plan

 

1.             Grant of Option.

 

This agreement evidences the grant by Starent
Networks, Corp., a Delaware corporation (the “Company”), on           
, 200[ ]  (the “Grant Date”) to [                  ],
an employee of the Company (the “Participant”), of an option to purchase, in
whole or in part, on the terms provided herein and in the Company’s 2007 Stock
Incentive Plan (the “Plan”), a total of [                
 ] shares (the “Shares”) of common stock, $0.001  par
value per share, of the Company (“Common Stock”) at $[          ]  per Share. Unless earlier terminated, this option shall
expire at 5:00 p.m., Eastern time, on [              ]  (the “Final Exercise Date”).

 

It is intended that the option evidenced by this
agreement shall be an incentive stock option as defined in Section 422 of the
Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”). Except as otherwise indicated by the context, the term
“Participant”, as used in this option, shall be deemed to include any person
who acquires the right to exercise this option validly under its terms.

 

2.             Vesting Schedule.

 

This option will become exercisable (“vest”) as to
[25]% of the original number of Shares (the “Initial Vesting Amount”) on the
first  anniversary of the Grant Date and as
to an additional [6.25]% of the original number of Shares at the end of each
successive  [three-month]  period
following the first anniversary of the Grant Date until the [fourth]
anniversary of the Grant Date (the “End Date”).

 

The right of exercise shall be cumulative so that to
the extent the option is not exercised in any period to the maximum extent
permissible it shall continue to be exercisable, in whole or in part, with
respect to all Shares for which it is vested until the earlier of the Final
Exercise Date or the termination of this option under Section 3 hereof or
the Plan.

 

3.             Exercise of Option.

 

(a)           Form of Exercise. Each
election to exercise this option shall be in writing, signed by the
Participant, and received by the Company at its principal office, accompanied
by this agreement, and payment in full in the manner provided in the Plan. The
Participant may purchase less than the number of shares covered hereby,
provided that no partial exercise of this option may be for any fractional
share.

 

(b)           Continuous Relationship with the
Company Required. Except as otherwise provided in this Section 3, this
option may not be exercised unless the Participant, at the time he or she
exercises this option, is, and has been at all times since the Grant Date, an
employee or

 

 

officer of, or
consultant or advisor to, the Company or any parent or subsidiary of the
Company as defined in Section 424(e) or (f) of the Code (an “Eligible
Participant”).

 

(c)           Termination of Relationship with
the Company. If the Participant ceases to be an Eligible Participant for
any reason, then, except as provided in paragraphs (d) and (e) below, the
right to exercise this option shall terminate  three
months after such cessation (but in no event after the Final Exercise Date), provided
that this option shall be exercisable only to the extent that the
Participant was entitled to exercise this option on the date of such cessation.
Notwithstanding the foregoing, if the Participant, prior to the Final Exercise
Date, violates the non-competition or confidentiality provisions of any
employment contract, confidentiality and nondisclosure agreement or other
agreement between the Participant and the Company, the right to exercise this
option shall terminate immediately upon written notice to the Participant from
the Company describing  such
violation.

 

(d)           Exercise Period Upon Death or
Disability. If the Participant dies or becomes disabled (within the meaning
of Section 22(e)(3) of the Code) prior to the Final Exercise Date while he
or she is an Eligible Participant and the Company has not terminated such
relationship for “cause” as specified in paragraph (e) below, this option shall
be exercisable, within the period of one year following the date of death or
disability of the Participant, by the Participant (or in the case of death by
an authorized transferee), provided  that this option shall be
exercisable only to the extent that this option was exercisable by the
Participant on the date of his or her death or disability, and further provided
that this option shall not be exercisable after the Final Exercise Date.

 

(e)           Termination for Cause. If,
prior to the Final Exercise Date, the Participant’s employment is terminated by
the Company for Cause (as defined below), the right to exercise this option
shall terminate immediately upon the effective date of such termination of
employment. If the Participant is party to an employment or severance agreement
with the Company that contains a definition of “cause” for termination of
employment, “Cause” shall have the meaning ascribed to such term in such
agreement. Otherwise, “Cause” shall mean willful misconduct by the Participant
or willful failure by the Participant to perform his or her responsibilities to
the Company (including, without limitation, breach by the Participant of any
provision of any employment, consulting, advisory, nondisclosure,
non-competition or other similar agreement between the Participant and the
Company), as determined by the Company, which determination shall be conclusive.
The Participant shall be considered to have been discharged for Cause if the
Company determines, within 30 days after the Participant’s resignation, that
discharge for cause was warranted.

 

4.             Tax Matters.

 

(a)           Withholding. No Shares will be
issued pursuant to the exercise of this option unless and until the Participant
pays to the Company, or makes provision satisfactory to the Company for payment
of, any federal, state or local withholding taxes required by law to be
withheld in respect of this option.

 

(b)           Disqualifying Disposition. If
the Participant disposes of Shares acquired upon exercise of this option within
two years from the Grant Date or one year after such Shares were 

 

2

 

acquired pursuant to exercise of this option, the Participant shall
notify the Company in writing of such disposition.

 

5.             Nontransferability
of Option.

 

This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the lifetime of the Participant, this option shall be exercisable only
by the Participant.

 

6.             Provisions of the
Plan.

 

This option is subject to the provisions of the Plan,
a copy of which is furnished to the Participant with this option.

 

IN WITNESS WHEREOF, the Company has caused this option
to be executed under its corporate seal by its duly authorized officer. This
option shall take effect as a sealed instrument.

 

	
   

  	
   

  	
  STARENT NETWORKS, CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
							

 

3

 

PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby accepts the foregoing option
and agrees to the terms and conditions thereof. The undersigned hereby
acknowledges receipt of a copy of the Company’s 2007 Stock Incentive Plan.

 

	
   

  	
  PARTICIPANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

4

 

EXHIBIT A

 

NOTICE OF STOCK OPTION
EXERCISE

 

Date:               

 

Participant
name and address:

 

                   

                   

                   

 

Attention:  Treasurer

 

Dear Sir or Madam:

 

I am the holder of an Incentive Stock Option granted
to me under the Starent Networks, Corp. (the “Company”) 2007 Stock Incentive
Plan on                
for the purchase of                
shares of Common Stock of the Company at a purchase price of $               
per share.

 

I hereby exercise my option to purchase                
shares of Common Stock (the “Shares”), for which I have enclosed              
in the amount of $              .
Please register my stock certificate as follows:

 

	
   

  	
   

  	
   

  	
   

  	
  (check
  applicable box)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name(s):

  	
   

  	
   

  	
  o            TEN COM

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o            TEN ENT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  	
  o            JT TEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tax I.D. #:

  	
   

  	
   

  	
  o            UNIF GIFT MIN ACT

  

 

I represent, warrant and covenant as follows:

 

1.             I am purchasing the
Shares for my own account for investment only, and not with a view to, or for
sale in connection with, any distribution of the Shares in violation of the
Securities Act of 1933 (the “Securities Act”), or any rule or regulation under
the Securities Act.

 

5

 

2.             I have had such
opportunity as I have deemed adequate to obtain from representatives of the
Company such information as is necessary to permit me to evaluate the merits
and risks of my investment in the Company.

 

3.             I have sufficient
experience in business, financial and investment matters to be able to evaluate
the risks involved in the purchase of the Shares and to make an informed
investment decision with respect to such purchase.

 

4.             I can afford a
complete loss of the value of the Shares and am able to bear the economic risk
of holding such Shares for an indefinite period.

 

5.             I understand that (i)
the Shares have not been registered under the Securities Act and are
“restricted securities” within the meaning of Rule 144 under the Securities
Act, (ii) the Shares cannot be sold, transferred or otherwise disposed of
unless they are subsequently registered under the Securities Act or an
exemption from registration is then available; (iii) in any event, the
exemption from registration under Rule 144 will not be available for at least
one year and even then will not be available unless a public market then exists
for the Common Stock, adequate information concerning the Company is then
available to the public, and other terms and conditions of Rule 144 are
complied with; and (iv) there is now no registration statement on file with the
Securities and Exchange Commission with respect to any stock of the Company and
the Company has no obligation or current intention to register the Shares under
the Securities Act.

 

 

	
  Very truly
  yours,

  
	
   

  
	
   

  
	
   

  	
   

  
	
  (Signature)

  

 

6EXHIBIT
10.6

 

STARENT NETWORKS, CORP.

 

Form of

Nonstatutory Stock Option Agreement

Granted Under 2007 Stock Incentive Plan

 

1.             Grant of Option.

 

This agreement evidences the grant by Starent
Networks, Corp., a Delaware corporation (the “Company”), on
           , 200[ ]  (the “Grant Date”) to  [                  ],
an [employee], [consultant], [director] of the Company (the “Participant”), of
an option to purchase, in whole or in part, on the terms provided herein and in
the Company’s 2007 Stock Incentive Plan (the “Plan”), a total of
[                
 ] shares (the “Shares”) of common stock, $0.001  par
value per share, of the Company (“Common Stock”) at
$[          ] per Share. Unless
earlier terminated, this option shall expire at 5:00 p.m., Eastern time, on [                ]  (the “Final Exercise Date”).

 

It is intended that the option evidenced by this
agreement shall not be an incentive stock option as defined in Section 422 of
the Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”). Except as otherwise indicated by the context, the term
“Participant”, as used in this option, shall be deemed to include any person
who acquires the right to exercise this option validly under its terms.

 

2.             Vesting Schedule.

 

This option will become exercisable (“vest”) as to
[25]% of the original number of Shares (the “Initial Vesting Amount”) on the
[first] anniversary of the Grant Date and as to an additional [6.25]% of the
original number of Shares at the end of each successive  [three-month]  period following the first anniversary of the Grant Date
until the [fourth] anniversary of the Grant Date (the “End Date”).

 

The right of exercise shall be cumulative so that to
the extent the option is not exercised in any period to the maximum extent
permissible it shall continue to be exercisable, in whole or in part, with
respect to all Shares for which it is vested until the earlier of the Final
Exercise Date or the termination of this option under Section 3 hereof or the
Plan.

 

3.             Exercise of Option.

 

(a)           Form of Exercise.
Each election to exercise this option shall be in writing, signed by the
Participant, and received by the Company at its principal office, accompanied
by this agreement, and payment in full in the manner provided in the Plan. The
Participant may purchase less than the number of shares covered hereby,
provided that no partial exercise of this option may be for any fractional
share.

 

 

(b)           Continuous
Relationship with the Company Required. Except as otherwise provided in
this Section 3, this option may not be exercised unless the Participant,
at the time he or she exercises this option, is, and has been at all times
since the Grant Date, an employee or officer of, or consultant or advisor to,
the Company or any other entity the employees, officers, directors,
consultants, or advisors of which are eligible to receive option grants under
the Plan (an “Eligible Participant”)

 

(c)           Termination of
Relationship with the Company. If the Participant ceases to be an Eligible
Participant for any reason, then, except as provided in paragraphs (d) and
(e) below, the right to exercise this option shall terminate  three months after such cessation (but in no event after
the Final Exercise Date), provided  that this option shall be
exercisable only to the extent that the Participant was entitled to exercise
this option on the date of such cessation. Notwithstanding the foregoing, if
the Participant, prior to the Final Exercise Date, violates the non-competition
or confidentiality provisions of any employment contract, confidentiality and
nondisclosure agreement or other agreement between the Participant and the
Company, the right to exercise this option shall terminate immediately upon
written notice to the Participant from the Company describing such violation.

 

(d)           Exercise Period Upon
Death or Disability. If the Participant dies or becomes disabled (within
the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise
Date while he or she is an Eligible Participant and the Company has not
terminated such relationship for “cause” as specified in paragraph (e) below,
this option shall be exercisable, within the period of one year following the
date of death or disability of the Participant, by the Participant (or in the
case of death by an authorized transferee), provided  that this
option shall be exercisable only to the extent that this option was exercisable
by the Participant on the date of his or her death or disability, and further
provided that this option shall not be exercisable after the Final Exercise
Date.

 

(e)           Termination for
Cause. If, prior to the Final Exercise Date, the Participant’s employment
or other relationship with the Company is terminated by the Company for Cause
(as defined below), the right to exercise this option shall terminate
immediately upon the effective date of such termination of employment or other
relationship. If the Participant is party to an employment, consulting or
severance agreement with the Company that contains a definition of “cause” for
termination of employment or other relationship, “Cause” shall have the meaning
ascribed to such term in such agreement. Otherwise, “Cause” shall mean willful
misconduct by the Participant or willful failure by the Participant to perform
his or her responsibilities to the Company (including, without limitation,
breach by the Participant of any provision of any employment, consulting,
advisory, nondisclosure, non-competition or other similar agreement between the
Participant and the Company), as determined by the Company, which determination
shall be conclusive. The Participant shall be considered to have been
discharged for “Cause” if the Company determines, within 30 days after the
Participant’s resignation, that discharge for cause was warranted.

 

4.             Withholding.

 

No Shares will be issued pursuant to the exercise of
this option unless and until the Participant pays to the Company, or makes
provision satisfactory to the Company for payment 

 

2

 

of, any federal, state or local withholding taxes
required by law to be withheld in respect of this option.

 

5.             Nontransferability of Option.

 

This option may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the lifetime of the Participant, this option shall be exercisable only
by the Participant.

 

6.             Provisions of the Plan.

 

This option is subject to the provisions of the Plan,
a copy of which is furnished to the Participant with this option.

 

IN WITNESS WHEREOF, the Company has caused this option
to be executed under its corporate seal by its duly authorized officer. This
option shall take effect as a sealed instrument.

 

 

	
   

  	
   

  	
  STARENT NETWORKS, CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
							

 

3

 

PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby accepts the foregoing option
and agrees to the terms and conditions thereof. The undersigned hereby
acknowledges receipt of a copy of the Company’s 2007 Stock Incentive Plan.

 

	
   

  	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

EXHIBIT A

 

NOTICE OF STOCK OPTION
EXERCISE

 

Date:                        

 

Participant
name and address:

 

                                         

                                         

                                         

 

Attention:  Treasurer

 

Dear Sir or Madam:

 

I am the holder of an Nonstatutory Stock Option
granted to me under the Starent Networks, Corp. (the “Company”) 2007 Stock
Incentive Plan on                         
for the purchase of                         
shares of Common Stock of the Company at a purchase price of $                        
per share.

 

I hereby exercise my option to purchase                         
shares of Common Stock (the “Shares”), for which I have enclosed                       
in the amount of $                        .
Please register my stock certificate as follows:

 

	
   

  	
   

  	
   

  	
   

  	
  (check
  applicable box)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name(s):

  	
   

  	
   

  	
  oTEN
  COM

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  oTEN
  ENT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  	
  oJT
  TEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tax I.D. #:

  	
   

  	
   

  	
  oUNIF
  GIFT MIN ACT

  

 

I represent, warrant and covenant as follows:

 

1.             I am purchasing the Shares for my own account for
investment only, and not with a view to, or for sale in connection with, any
distribution of the Shares in violation of the Securities Act of 1933 (the
“Securities Act”), or any rule or regulation under the Securities Act.

5

 

2.             I have had such opportunity as I have deemed
adequate to obtain from representatives of the Company such information as is
necessary to permit me to evaluate the merits and risks of my investment in the
Company.

 

3.             I have sufficient experience in business,
financial and investment matters to be able to evaluate the risks involved in
the purchase of the Shares and to make an informed investment decision with
respect to such purchase.

 

4.             I can afford a complete loss of the value of the
Shares and am able to bear the economic risk of holding such Shares for an
indefinite period.

 

5.             I understand that (i) the Shares have not been
registered under the Securities Act and are “restricted securities” within the
meaning of Rule 144 under the Securities Act, (ii) the Shares cannot be sold,
transferred or otherwise disposed of unless they are subsequently registered
under the Securities Act or an exemption from registration is then available;
(iii) in any event, the exemption from registration under Rule 144 will not be
available for at least one year and even then will not be available unless a
public market then exists for the Common Stock, adequate information concerning
the Company is then available to the public, and other terms and conditions of
Rule 144 are complied with; and (iv) there is now no registration statement on
file with the Securities and Exchange Commission with respect to any stock of
the Company and the Company has no obligation or current intention to register
the Shares under the Securities Act.

 

 

	
  Very truly
  yours,

  
	
   

  
	
   

  
	
   

  	
   

  
	
  (Signature)

  

 

6

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