Document:

Unassociated Document

     

    Exhibit 10.1

     

    
      AGREEMENT
AND RELEASE

      

       

      This
Agreement and Release (“Agreement”) is made by and between (i) Julie Larner
(hereinafter “Larner”) and (ii) PJ Food Service, Inc. and Papa John’s
International, Inc. (hereinafter collectively, “Papa John’s”).

       

      W I T N E S S E T H:

       

      WHEREAS, Larner has resigned effective
May 2, 2009 as part of an executive management team transition; and

       

      WHEREAS, Larner acknowledges that she
was given this Agreement on April 28, 2009, and informed that she has twenty-one
(21) days to consider it and after discussions with Papa John’s she voluntarily
agrees to its terms; and

       

      WHEREAS, the parties wish to clarify
and memorialize certain agreements made between them in regard to such
employment and separation of employment;

       

      NOW, THEREFORE, in consideration of the
foregoing premises and the terms stated herein, it is mutually agreed between
the parties as follows:

       

      
        
          	
                	
                  1.

                	
                  Larner’s
      employment with Papa John’s separated effective May 2, 2009 (the
      “Separation Date”).

                

        

         

        
          	
                	
                  2.

                	
                  Upon
      execution of this Agreement, Papa John’s shall provide Larner the
      following benefits, as specific consideration for the release and waiver
      contained in Paragraph 3 below, to which Larner acknowledges she is not
      otherwise entitled:

                

        

         

        
          	
                	
                  (a)

                	
                  Within
      fifteen (15) days after the execution of this Agreement, and provided that
      the revocation period set forth below has expired without a revocation,
      Papa John’s shall pay Larner a lump sum equal to Larner’s current salary
      (less all applicable withholdings) for 16
  months.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  (b) 

                	
                  Within
      fifteen (15) days after the execution of this Agreement, and provided that
      the revocation period set forth below has expired without a revocation,
      Papa John’s shall pay Larner a lump sum payment in the amount of
      $13,044.78, less all applicable withholdings, which is the Q1 Management
      Incentive Plan (MIP) payout Larner would have received had she remained
      employed on the date bonus checks are
issued.

                

        

         

        
          	
                	
                  (c) 

                	
                  Within
      fifteen (15) days of the execution of this Agreement, and provided that
      the revocation period set forth below has expired without a revocation,
      Papa John’s shall pay Larner a lump sum payment in the amount of
      $1,966.00, less all applicable withholdings, which is an estimate of the
      P4 QSIP payout Larner would have received had she remained employed on the
      date bonus checks are issued.

                

        

         

        
          	
                	
                  (d) 

                	
                  Within
      fifteen (15) days of the execution of this Agreement, and provided that
      the revocation period set forth below has expired without a revocation,
      Papa John’s shall pay Larner a lump sum payment in the amount of
      $1,269.00, less all applicable withholdings, which is an estimate of the
      P5 QSIP payout Larner would have received had she remained employed on the
      date bonus checks are issued.

                

        

         

        
          	
                	
                  (e) 

                	
                  Within
      fifteen (15) days of the execution of this Agreement, and provided that
      the revocation period set forth below has expired without a revocation,
      Papa John’s shall pay Larner a lump sum payment in the amount of
      $7,150.00, less all applicable withholdings, which is an estimate of the
      value of certain unvested stock options of
  Larner.

                

        

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  (f) 

                	
                  Within
      fifteen (15) days of the execution of this Agreement, and provided that
      the revocation period set forth below has expired without a revocation,
      Papa John’s shall pay Larner a lump sum payment in the amount of
      $31,900.00, less all applicable withholdings, which is an estimate of the
      value of other certain unvested stock options of Larner issued on December
      31, 2008.

                

        

         

        
          	
                	
                  (g) 

                	
                  Within
      fifteen (15) days of the execution of this Agreement, and provided that
      the revocation period set forth below has expired without a revocation,
      Papa John’s shall pay Larner a lump sum payment in the amount of
      $34,942.29, less all applicable withholdings, representing 23 days of
      unused vacation.

                

        

         

        
          	
                	
                  (h) 

                	
                  Should
      Larner elect COBRA continuation coverage of any health or dental benefits
      provided by Papa John’s, Papa John’s shall pay Larner’s COBRA premiums for
      sixteen months.

                

        

         

        
          	
                	
                  (i) 

                	
                  Papa
      John’s agrees to provide outplacement services to
      ­­­­­­­­­­Larner from Right
      Management Consultants.  It shall be Larner’s obligation to
      contact Right Management Consultants at (502) 473-1515 to obtain these
      services.  Larner must begin use of these services within one
      month of the execution of this Agreement.  Papa John’s will pay
      the outplacement services provider directly for the cost of the services
      for Larner.

                

        

         

        
          	
                	
                  (j) 

                	
                  All
      other benefits cease effective the day of separation set forth in
      Paragraph 1 above; provided, however, any amounts held in trust in the
      Papa John’s 401(k) or Deferred Compensation plans for the benefit of
      Larner shall continue to be held in trust for Larner within the parameters
      of the existing plans.  In addition, any stock options held by
      Larner that are vested as of the day of separation shall remain
      exercisable and subsequently terminate pursuant to the terms of the stock
      ownership plan under which such options were
  issued.

                

        

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
      

       

      
        
          	
                	
                  3. 

                	
                  Larner,
      for herself and her heirs, personal representatives, successors and
      assigns, does hereby release and forever discharge Papa John’s, and its
      affiliate corporations, subsidiaries or other entities of any type or
      nature, their successors, assigns, agents, representatives, employees,
      officers, directors, trustees, and shareholders, insurers, reinsurers,
      from any and all causes of action, claims, demands, suits, damages, sums
      of money, attorneys’ fees, and/or judgments (hereinafter “damages”)
      arising at any time prior to and through the date of the execution of this
      Agreement which might have been asserted against Papa John’s, its
      successors, assigns, agents, representatives, employees, officers,
      directors, trustees, shareholders, insurers, reinsurers or any affiliated
      corporations, subsidiaries or entities by Larner, or on her behalf,
      including but not limited to any which may have been asserted against Papa
      John’s by or on behalf of Larner relating to her employment by Papa John’s
      or the separation of her employment, including vacation pay, profit
      sharing plans, stock option plans, retirement plans or any benefit plans
      of any type or nature, and any claims for discrimination of any type under
      any federal, state or local law or regulation, including, but not limited
      to, claims under the Age Discrimination in Employment Act of 1967, as
      amended, Title VII of the Civil Rights Act of 1964 and the Civil Rights
      Act of 1991, and the Family and Medical Leave Act, and the Americans with
      Disabilities Act, except for any claims arising under this
      Agreement.

                

        

         

        
          	
                	
                  4. 

                	
                  Papa
      John’s, for itself and its successors, assigns, agents, representatives,
      employees, officers, directors, trustees, and shareholders, insurers,
      reinsurers and any affiliated corporations or entities of any type or
      nature successors and assigns, does hereby release and forever discharge
      Larner, her heirs, personal representatives, successors and assigns from
      any and all causes of action, claims, demands, suits, damages, sums of
      money, attorneys’ fees, and/or judgments (hereinafter “damages”) arising
      at any time prior to and through the date of the execution of this
      Agreement which might have been asserted against Larner, her heirs,
      personal representatives, successors and assigns by Papa John’s, or on its
      behalf, including but not limited to any which may have been asserted
      against Larner relating to her employment by Papa John’s or the separation
      of her employment, except for any claims arising under this
      Agreement.

                

        

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  5. 

                	
                  Larner
      understands and agrees that should any amount of the payment made to
      Larner by Papa John’s under this Agreement be deemed taxable, Larner is
      solely liable for any taxes normally owed by Larner of whatever kind due
      by reason of this payment of money, and should any state or federal tax
      authority determine that any or all of such payment constitutes income
      subject to federal or state taxes, including but not limited to income
      tax, or social security laws, then Larner agrees to indemnify and hold
      harmless Papa John’s for any and all liability of whatever kind incurred
      by it on this payment, including, but not limited to taxes, levies,
      assessments, fines, interest, and
penalties.

                

        

         

        
          	
                	
                  6. 

                	
                  Larner
      acknowledges that, during the course of her employment, she was exposed to
      information confidential and proprietary to Papa John’s.  Larner
      agrees that, unless otherwise required by law, she will not disclose to
      any third party any information that is confidential or proprietary to
      Papa John’s, and that she has returned to Papa John’s all documents
      containing any confidential or proprietary information relating to Papa
      John’s, including all electronic files and any other mediums
      whatsoever.  In the event Larner is notified she may be required
      by law to disclose any such information to a third party, Larner agrees,
      unless prohibited by law, to contact the office of General Counsel, at
      least three (3) business days prior to the date of the proposed disclosure
      so that Papa John’s may take any steps it deems necessary to evaluate and
      protect against such
disclosure.

                

        

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  7. 

                	
                  Larner
      agrees that she will execute, as of the date of execution of this
      Agreement, the attached Confidentiality and Non-Competition Agreement
      (“Confidentiality Agreement”), which amends her November 6, 1996
      Confidentiality Agreement.  The attached Confidentiality
      Agreement is hereby reiterated and incorporated by reference herein and is
      material to Papa John’s in its decision to enter into this
      Agreement.  Larner agrees that she has received sufficient
      consideration for the Confidentiality Agreement both during her employment
      and pursuant to this Agreement.

                

        

         

        
          	
                	
                  8. 

                	
                  Larner
      further warrants that she has returned any and all property of Papa John’s
      in her possession, including but not limited to any key card, key fob,
      office keys, corporate credit card, telephone and computer. Larner also
      warrants that, within thirty (30) days of the date of separation, she will
      submit any outstanding expense reports to the office of General Counsel
      for reimbursement.  Papa John’s and Larner agree that Papa
      John’s may deduct any outstanding advances or other amounts owed to Papa
      John’s from the amounts referenced in Paragraph 2 of this
      Agreement.

                

        

         

        
          	
                	
                  9. 

                	
                  Larner
      agrees to cooperate fully with Papa John’s and make herself available for
      participation in all business and/or legal proceedings, as needed by Papa
      John’s, upon reasonable notice.  Papa John’s agrees to reimburse
      Larner for any and all reasonable expenses incurred by Larner as a result
      of such participation.  Larner agrees she will not voluntarily
      participate or testify in any proceeding adverse to Papa John’s, except to
      the extent required by law.  Larner agrees she will notify Papa
      John’s within three (3) business days by contacting the office of General
      Counsel in response to any order, subpoena, deposition notice, or any
      other discovery request issued by or through a state or federal court or
      governmental agency or any other authority having the power to issue such
      an order, subpoena, deposition notice, or discovery request, unless
      prohibited by law or regulation from doing so.  Larner further
      agrees not to intentionally disparage or intentionally make derogatory
      comments about Papa John’s, its successors, assigns, agents,
      representatives, employees, officers, directors, trustees, shareholders,
      insurers, reinsurers and any affiliated corporations or entities, or John
      H. Schnatter and/or his family and/or other officers or employees of Papa
      John’s at any time after her employment with Papa John’s
      ceases.  Papa John’s agrees it will instruct its officers and
      directors not to intentionally disparage or intentionally make derogatory
      comments about Larner at any time after her employment with Papa John’s
      ceases.

                

        

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  10. 

                	
                  Papa
      John’s and its representatives, hereby agree not to publish, discuss or
      release any information to any person concerning Larner’s employment by
      Papa John’s or the separation of her employment, except as required by
      law, and except that upon request for employment information, Papa John’s
      will verify Larner’s employment dates and position held.  Papa
      John’s and Larner, their agents and representatives, agree to keep the
      fact and amount of this settlement in strict confidence, and not to
      disclose this document, its contents, or the subject matter to any person
      other than their attorneys, spouse, income tax preparers, or accountants,
      except as required by law.

                

        

         

        
          	
                	
                  11. 

                	
                  The
      parties declare each has carefully read this Agreement.  Larner
      was informed, and both parties understand they have the right to and
      should consult with an attorney prior to executing this
      Agreement.  After consultation with counsel, both parties agree
      to the terms of this Agreement for purposes of making a full and final
      adjustment and resolution of the matters contained
  herein.

                

        

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  12. 

                	
                  The
      parties understand and agree that this Agreement does not and shall not
      constitute an admission by one party of any violation of any law or right
      of the other.

                

        

         

        
          	
                	
                  13. 

                	
                  This
      Agreement constitutes the entire understanding and agreement between the
      parties as to the subject matter hereof and the terms of this Agreement
      may not be waived, modified or supplemented except in writing by all
      parties hereto.  The parties further acknowledge that this
      Agreement may be revoked within seven (7) days from the execution hereof
      and that the Agreement shall not become effective or enforceable until
      after the revocation period has ended without
      revocation.  Larner agrees that any revocation shall be
      submitted to Papa John’s in writing to the attention of the office of
      General Counsel.

                

        

         

        
          	
                	
                  14. 

                	
                  Should
      this Agreement be held invalid or unenforceable (in whole or in part) with
      respect to any particular claims or circumstances, it shall remain fully
      valid and enforceable as to all other claims and
      circumstances.

                

        

         

        
          	
                	
                  15. 

                	
                  This
      Agreement shall be construed in accordance with the laws of the
      Commonwealth of Kentucky.

                

        

         

        
          	
                	
                  16. 

                	
                  This
      Agreement shall not be valid unless signed by both
  parties.

                

        

      

       

      
        
          
            	
                     
      /s/ Julie Larner                

                  	
                     
      7-6-09                

                  
	
                    Signature
      of Julie Larner

                  	
                    Date

                  
	 
      	 
      
	 
      	 
      
	
                     
      Julie Larner                  

                  	 
      
	
                    Name
      Printed

                  	 
      
	 
      	 
      
	
                    PJ
      Food Service, Inc.

                  	 
      
	
                    Papa
      John’s International, Inc.

                  	 
      
	 
      	 
      
	 
      	 
      
	
                     
      /s/ Chris J. Sternberg             

                  	
                      7-6-09                

                  
	
                    Papa
      John’s Representative

                  	
                    Date

                  
	 
      	 
      
	 
      	 
      
	
                     
      Christopher J. Sternberg          

                  	
                     
      SVP and General Counsel     

                  
	
                    Papa
      John’s Representative Name Printed

                  	
                    Title

                  

          

        

      

       

      
        
          
          

        

        
          8INTELASIGHT,
INC.

    NOTICE
OF GRANT OF STOCK OPTION

    

    
      	
              1.

            	
              Grant of
      Option.

            

    

     

    The
undersigned optionee (the “Optionee”) has been granted an option
(the “Option”) to purchase certain shares
of Stock of Intelasight, Inc. pursuant to the Intelasight, Inc. 2008 Stock
Option Plan (the “Plan”), as follows:

    

    
      
        
          
            	
                    Grant Number:

                  	
                    ____________________

                  	  
	  	  	  
	
                    Date of Option Grant:

                  	
                    ____________________, 200_

                  	  
	  	  	  
	
                    Initial Vesting Date:

                  	
                    ____________________

                  	  
	  	  	  
	
                    Number of Option Shares:

                  	
                    _____________

                  	  
	  	  	  
	
                    Exercise Price:

                  	
                    $___________________

                  	  
	  	  	  
	
                    Option Expiration Date:

                  	
                    The date ten (10) years after the Date of Option Grant.

                  
	  	  	  
	
                    Tax Status of Option:

                  	
                    Nonstatutory

                  

          

        

      

    

    

    Vested Shares:  Except
as provided in the Stock Option Agreement, the number of Vested Shares
(disregarding any resulting fractional share) as of any date is determined by
multiplying the Number of Option Shares by the “Vested
Ratio”
determined as of such date as follows:

    

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	
                                Vested Ratio

                              
	
                                Prior to Initial Vesting Date

                              	
                                0

                              
	 	 
	
                                On Initial Vesting Date, provided the Optionee’s
      Service has not terminated prior to such date

                              	
                                1/4

                              
	 	 
	
                                Plus:

                              	 
      
	 	 
	
                                For
      each full year of the Optionee’s continuous Service from Initial Vesting
      Date until the Vested Ratio equals 1/1, an additional

                              	
                                1/4

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    
      	
              2.

            	
              Other Terms and
      Conditions.

            

    

     

    2.1           2008
Plan.  Optionee understands and agrees that, except as
otherwise expressly provided in this Agreement, the Option is granted subject to
and in accordance with the express terms and conditions of the Company’s 2008
Stock Option Plan, (the “Plan”),
including without limitation the terms and conditions referenced in this
Notice.  Optionee hereby acknowledges receipt of a copy of the
Plan.  All capitalized terms not defined in this Notice shall have the
definitions provided in the Plan.

     

    2.2           Repurchase
Right.  Optionee hereby agrees that all Shares acquired
pursuant to the exercise of the Option shall be subject to certain repurchase
rights in favor of the Company as provided in Optionee’s Stock Option
Agreement.

     

    2.3           Right of First
Refusal.  Optionee hereby agrees that all Shares acquired
pursuant to the exercise of the Option shall be subject to certain rights of
first refusal upon a proposed sale, assignment, transfer, encumbrance or other
disposition of the Company’s shares by the Optionee as provided in Optionee’s
Stock Option Agreement.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    2.4           No Right to
Service.  Nothing in this Agreement or in the Plan shall confer
upon Optionee any right to continue in the Service of the Company for any period
of specific duration or interfere with or otherwise restrict in any way the
rights of the Company or Optionee, which rights are hereby expressly reserved by
each, to terminate Optionee’s Service at any time for any reason whatsoever,
with or without cause.

     

    2.5           No Right as
Shareholder.  Optionee shall not have any rights as a
shareholder of the Company with respect to any Shares subject to this Option
until Optionee has exercised this Option with respect to such Shares and paid
the purchase price therefor.

     

    2.6           Electronic Transmission for
Shareholder Notices.  By providing Optionee’s email address
below, if and when Optionee exercises this Option with respect to any of the
Shares, Optionee hereby consents to receive electronically transmitted notices
for any and all purposes under the Washington Business Corporation Act at the
email address provided or as subsequently modified by written
notice.  Unless otherwise required by law, such electronic notice, if
sent during normal business hours of the recipient, will be effective on the
next business day.

     

    2.7           Section
409A.  The Exercise Price of this Option represents an amount
the Company believes to be no less than the fair market value of a Share as of
the Grant Date, determined in good faith in compliance with the requirements of
Section 409A of the Internal Revenue Code.  There is no guarantee
that the Internal Revenue Service (“IRS”) will
agree with the Company’s determination.  A subsequent IRS
determination that the Exercise Price is less than such fair market value could
result in adverse tax consequences to Optionee.  By signing below,
Optionee agrees that the Company, its directors, officers and shareholders shall
not be held liable for any tax, penalty, interest or cost incurred by Optionee
as a result of such determination by the IRS.  Optionee is urged to
consult with his or her own tax adviser regarding the tax consequences of the
Option, including the application of Section 409A.

     

    2.8           Governing
Law.  This Notice of Grant of Stock Option shall be governed by
the laws of the State of Washington, without reference to conflicts of law
principles.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      INTELASIGHT,
      Inc.

                                                    	 
      	
                                                      OPTIONEE

                                                    
	 
      	 
      	 
      
	
                                                      By:

                                                    	 
      	 
      	 
      
	 	David
      Ly, President	 	      
                                                      (signature)

                                                    
	 
      	 
      	 
      
	 
      	 
      	
                                                      Address: 

                                                    	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                      Email address: 

                                                    	 
      

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      	
              ATTACHMENTS:

            	
              2008
      Stock Option Plan, as amended to the Date of Option Grant; Stock Option
      Agreement and Exercise Notice

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    THE
SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF.  NO SUCH SALE OR DISPOSITION MAY BE EFFECTED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED.

     

    INTELASIGHT,
INC.

    STOCK
OPTION AGREEMENT

     

    IntelaSight,
Inc., a Washington corporation, has granted to the individual (the “Optionee”) named in the Notice of Grant of Stock
Option (the “Notice”) to which this Stock Option
Agreement (the “Option
Agreement”) is
attached an option (the “Option”) to purchase certain shares
of Stock upon the terms and conditions set forth in the Notice and this Option
Agreement.  The Option has been granted pursuant to and shall in all
respects be subject to the terms and conditions of the IntelaSight, Inc. 2008
Stock Option Plan (the “Plan”), as amended to the Date of
Option Grant, the provisions of which are incorporated herein by
reference.  By signing the Notice, the Optionee: (a) represents
that the Optionee has received copies of, and has read and is familiar with the
terms and conditions of, the Notice, the Plan and this Option Agreement,
(b) accepts the Option subject to all of the terms and conditions of the
Notice, the Plan and this Option Agreement, and (c) agrees to accept as
binding, conclusive and final all decisions or interpretations of the Board upon
any questions arising under the Notice, the Plan or this Option
Agreement.

     

    1.           Definitions and
Construction.

     

    1.1         Definitions.  Unless
otherwise defined herein, capitalized terms shall have the meanings assigned to
such terms in the Notice or the Plan.

     

    1.2         Construction.  Captions
and titles contained herein are for convenience only and shall not affect the
meaning or interpretation of any provision of this Option
Agreement.  Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the
singular.  Use of the term “or” is not intended to be exclusive,
unless the context clearly requires otherwise.

     

    2.           Tax
Consequences.

     

    2.1         Tax Status of Option.  This
Option is intended to have the tax status designated in the Notice.

     

    (a)           Incentive Stock
Option.  If the Notice so
designates, this Option is intended to be an Incentive Stock Option within the
meaning of Section 422(b) of the Code, but the Company does not represent
or warrant that this Option qualifies as such.  The Optionee should
consult with the Optionee’s own tax advisor
regarding the tax effects of this Option and the requirements necessary to
obtain favorable income tax treatment under Section 422 of the Code,
including, but not limited to, holding period requirements.  (NOTE TO
OPTIONEE: If the Option is exercised more than three (3) months after the date
on which you cease to be an Employee (other than by reason of your death or
permanent and total disability as defined in Section 22(e)(3) of the Code),
the Option will be treated as a Nonstatutory Stock Option and not as an
Incentive Stock Option to the extent required by Section 422 of the
Code.)

    
      
        2008
Stock Option Agreement

         

      

      
        1

        
          

        

      

      
         

      

    

    (b)           Nonstatutory
Stock Option.  If the Notice so designates, this Option is
intended to be a Nonstatutory Stock Option and shall not be treated as an
Incentive Stock Option within the meaning of Section 422(b) of the
Code.

     

    2.2         ISO Fair Market Value
Limitation.  If the Notice designates this Option
as an Incentive Stock Option, then to the extent that the Option
(together with all Incentive Stock Options granted to the Optionee under all
stock option plans of the Participating Company Group, including the Plan)
becomes exercisable for the first time during any calendar year for shares
having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000),
the portion of such options which exceeds such amount will be treated as
Nonstatutory Stock Options.  For purposes of this Section 2.2,
options designated as Incentive Stock Options are taken into account in the
order in which they were granted, and the Fair Market Value of stock is
determined as of the time the option with respect to such stock is
granted.  If the Code is amended to provide for a different limitation
from that set forth in this Section 2.2,
such different limitation shall be deemed incorporated herein effective as of
the date required or permitted by such amendment to the Code.  If the
Option is treated as an Incentive Stock Option in part and as a Nonstatutory
Stock Option in part by reason of the limitation set forth in this Section 2.2, the
Optionee may designate which portion of such Option the Optionee is
exercising.  In the absence of such designation, the Optionee shall be
deemed to have exercised the Incentive Stock Option portion of the Option
first.  Separate certificates representing each such portion shall be
issued upon the exercise of the Option.  (NOTE TO OPTIONEE: If the
aggregate Exercise Price of the Option (that is, the Exercise Price multiplied
by the Number of Option Shares) plus the aggregate exercise price of any other
Incentive Stock Options you hold (whether granted pursuant to the Plan or any
other stock option plan of the Participating Company Group) is greater than
$100,000, you should contact the Chief Financial Officer of the Company to
ascertain whether the entire Option qualifies as an Incentive Stock
Option.)

     

    3.           Administration.

     

    All
questions of interpretation concerning this Option Agreement shall be determined
by the Board.  All determinations by the Board shall be final and
binding upon all persons having an interest in the Option.  Any
Officer shall have the authority to act on behalf of the Company with respect to
any matter, right, obligation, or election which is the responsibility of or
which is allocated to the Company herein, provided the Officer has apparent
authority with respect to such matter, right, obligation, or
election.

     

    4.           Exercise of the
Option.

     

    4.1         Right to Exercise.  Except
as otherwise provided herein, the Option shall be exercisable on and after the
Initial Vesting Date and prior to the termination of the Option (as provided in
Section 6)
in an amount not to exceed the number of Vested Shares less the number of shares
previously acquired upon exercise of the Option, subject to the Company’s
repurchase rights set forth in Section 11 and
Section
12.  In no event shall the Option be exercisable for more
shares than the Number of Option Shares.

    
      
        2008
Stock Option Agreement

         

      

      
        2

        
          

        

      

      
         

      

    

    4.2         Method of Exercise.  Exercise
of the Option shall be by written notice to the Company which must state the
election to exercise the Option, the number of whole shares of Stock for which
the Option is being exercised and such other representations and agreements as
to the Optionee’s investment intent with respect to such shares as may be
required pursuant to the provisions of this Option Agreement.  The
written notice must be signed by the Optionee and must be delivered in person,
by certified or registered mail, return receipt requested, by confirmed
facsimile transmission, or by such other means as the Company may permit, to the
Chief Financial Officer of the Company, or other authorized representative of
the Participating Company Group, prior to the termination of the Option as set
forth in Section 6,
accompanied by (i) full payment of the aggregate Exercise Price for the number
of shares of Stock being purchased and (ii) an executed copy, if required
herein, of the then current forms of escrow and security agreement referenced
below.  The Option shall be deemed to be exercised upon receipt by the
Company of such written notice, the aggregate Exercise Price, and, if required
by the Company, such executed agreements.

     

    4.3         Payment of Exercise
Price.

     

    (a)           Forms of
Consideration Authorized.  Except as
otherwise provided below, payment of the aggregate Exercise Price for the number
of shares of Stock for which the Option is being exercised shall be made
(i) in cash, by check, or cash equivalent, (ii) by tender to the
Company, or attestation to the ownership, of whole shares of Stock owned by the
Optionee having a Fair Market Value not less than the aggregate Exercise Price,
(iii) by means of a Cashless Exercise, as defined in Section 4.3(b),
or (iv) by any combination of the foregoing.

     

    (b)           Limitations on
Forms of Consideration.

     

    (i)           Tender of
Stock.  Notwithstanding the foregoing, the Option may not be
exercised by tender to the Company, or attestation to the ownership, of shares
of Stock to the extent such tender or attestation would constitute a violation
of the provisions of any law, regulation or agreement restricting the redemption
of the Company’s stock.  The Option may not be exercised by tender to
the Company, or attestation to the ownership, of shares of Stock unless such
shares either have been owned by the Optionee for more than six (6) months (and
not used for another option exercise by attestation during such period) or were
not acquired, directly or indirectly, from the Company.

     

    (ii)           Cashless
Exercise.  A “Cashless
Exercise” means
the delivery of a properly executed notice together with irrevocable
instructions to a broker in a form acceptable to the Company providing for the
assignment to the Company of the proceeds of a sale or loan with respect to some
or all of the shares of Stock acquired upon the exercise of the Option pursuant
to a program or procedure approved by the Company (including, without
limitation, through an exercise complying with the provisions of
Regulation T as promulgated from time to time by the Board of Governors of
the Federal Reserve System).  The Company reserves, at any and all
times, the right, in the Company’s sole and absolute discretion, to decline to
approve or terminate any such program or procedure.

    
      
        2008
Stock Option Agreement

         

      

      
        3

        
          

        

      

      
         

      

    

    4.4         Tax Withholding.  At
the time the Option is exercised, in whole or in part, or at any time thereafter
as requested by the Company, the Optionee hereby authorizes withholding from
payroll and any other amounts payable to the Optionee, and otherwise agrees to
make adequate provision for (including by means of a Cashless Exercise to the
extent permitted by the Company), any sums required to satisfy the federal,
state, local and foreign tax withholding obligations of the Participating
Company Group, if any, which arise in connection with the Option, including,
without limitation, obligations arising upon (i) the exercise, in whole or
in part, of the Option, (ii) the transfer, in whole or in part, of any
shares acquired upon exercise of the Option, (iii) the operation of any law
or regulation providing for the imputation of interest, or (iv) the lapsing
of any restriction with respect to any shares acquired upon exercise of the
Option.  The Option is not exercisable unless the tax withholding
obligations of the Participating Company Group are
satisfied.  Accordingly, the Company shall have no obligation to
deliver shares of Stock until the tax withholding obligations of the
Participating Company Group have been satisfied by the Optionee.

     

    4.5         Certificate Registration.  Except
in the event the Exercise Price is paid by means of a Cashless Exercise, the
certificate for the shares as to which the Option is exercised shall be
registered in the name of the Optionee, or, if applicable, in the names of the
heirs of the Optionee.

     

    4.6         Restrictions on Grant of the Option
and Issuance of Shares.  The
grant of the Option and the issuance of shares of Stock upon exercise of the
Option shall be subject to compliance with all applicable requirements of
federal, state or foreign law with respect to such securities.  The
Option may not be exercised if the issuance of shares of Stock upon exercise
would constitute a violation of any applicable federal, state or foreign
securities laws or other law or regulations or the requirements of any stock
exchange or market system upon which the Stock may then be listed.  In
addition, the Option may not be exercised unless (i) a registration
statement under the Securities Act shall at the time of exercise of the Option
be in effect with respect to the shares issuable upon exercise of the Option or
(ii) in the opinion of legal counsel to the Company, the shares issuable
upon exercise of the Option may be issued in accordance with the terms of an
applicable exemption from the registration requirements of the Securities
Act.  THE OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED
UNLESS THE FOREGOING CONDITIONS ARE SATISFIED.  ACCORDINGLY, THE
OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE
OPTION IS VESTED.  The inability of the Company to obtain from any
regulatory body having jurisdiction the authority, if any, deemed by the
Company’s
legal counsel to be necessary to the lawful issuance and sale of any shares
subject to the Option shall relieve the Company of any liability in respect of
the failure to issue or sell such shares as to which such requisite authority
shall not have been obtained.  As a condition to the exercise of the
Option, the Company may require the Optionee to satisfy any qualifications that
may be necessary or appropriate, to evidence compliance with any applicable law
or regulation and to make any representation or warranty with respect thereto as
may be requested by the Company.

    
      
        2008
Stock Option Agreement

         

      

      
        4

        
          

        

      

      
         

      

    

    4.7         Fractional Shares.  The
Company shall not be required to issue fractional shares upon the exercise of
the Option.

     

    5.           Nontransferability of the
Option.

     

    The
Option may be exercised during the lifetime of the Optionee only by the Optionee
or the Optionee’s guardian or
legal representative and may not be assigned or transferred in any manner except
by will or by the laws of descent and distribution.  Following the
death of the Optionee, the Option, to the extent provided in Section 7, may
be exercised by the Optionee’s legal
representative or by any person empowered to do so under the deceased
Optionee’s
will or under the then applicable laws of descent and distribution.

     

    6.           Termination of the
Option.

     

    The
Option shall terminate and may no longer be exercised after the first to occur
of (a) the Option Expiration Date, (b) the last date for exercising
the Option following termination of the Optionee’s Service as
described in Section 7, or
(c) a Change in Control to the extent provided in Section 8.

     

    7.           Effect of Termination of
Service.

     

    7.1         Option
Exercisability.

     

    (a)           Disability.  If the
Optionee’s
Service terminates because of the Disability of the Optionee, the Option, to the
extent unexercised and exercisable on the date on which the Optionee’s Service
terminated, may be exercised by the Optionee (or the Optionee’s guardian or
legal representative) at any time prior to the expiration of twelve (12) months
after the date on which the Optionee’s Service
terminated, but in any event no later than the Option Expiration
Date.

     

    (b)          Death.  If the
Optionee’s
Service terminates because of the death of the Optionee, the Option, to the
extent unexercised and exercisable on the date on which the Optionee’s Service
terminated, may be exercised by the Optionee’s legal
representative or other person who acquired the right to exercise the Option by
reason of the Optionee’s death at any
time prior to the expiration of twelve (12) months after the date on which the
Optionee’s
Service terminated, but in any event no later than the Option Expiration
Date.  The Optionee’s Service shall be
deemed to have terminated on account of death if the Optionee dies within three
(3) months after the Optionee’s termination of
Service.

     

    (c)           Termination for
Cause.  Notwithstanding
any other provision of this Option Agreement, if the Optionee’s Service is
terminated for Cause, the Option shall terminate and cease to be exercisable on
the effective date of such termination of Service.  Unless otherwise
defined in a contract of employment or service between the Optionee and a
Participating Company, for purposes of this Option Agreement “Cause” shall have the meaning
given such term in the Plan.

    
      
        2008
Stock Option Agreement

         

      

      
        5

        
          

        

      

      
         

      

    

    (d)          Other Termination
of Service.  If the
Optionee’s
Service with the Participating Company Group terminates for any reason, except
Disability, death or Cause, the Option, to the extent unexercised and
exercisable by the Optionee on the date on which the Optionee’s Service
terminated, may be exercised by the Optionee at any time prior to the expiration
of three (3) months (or such other longer period of time as determined by the
Board, in its discretion) after the date on which the Optionee’s Service
terminated, but in any event no later than the Option Expiration
Date.

     

    7.2         Extension if Exercise Prevented by
Law.  Notwithstanding
the foregoing (other than termination for Cause), if the exercise of the Option
within the applicable time periods set forth in Section 7.1 is
prevented by the provisions of Section 4.6, the
Option shall remain exercisable until three (3) months after the date the
Optionee is notified by the Company that the Option is exercisable, but in any
event no later than the Option Expiration Date.

     

    7.3         Extension if Optionee Subject to
Section 16(b).  Notwithstanding the foregoing (other than
termination for Cause), if a sale within the applicable time periods set forth
in Section 7.1 of
shares acquired upon the exercise of the Option would subject the Optionee to
suit under Section 16(b) of the Exchange Act, the Option shall remain
exercisable until the earliest to occur of (i) the tenth (10th) day
following the date on which a sale of such shares by the Optionee would no
longer be subject to such suit, (ii) the one hundred and ninetieth (190th)
day after the Optionee’s termination of
Service, or (iii) the Option Expiration Date.

     

    8.           Change in
Control.

     

    8.1         Definitions.

     

    (a)           An
“Ownership Change
Event” shall be
deemed to have occurred if any of the following occurs with respect to the
Company: (i) the direct or indirect sale or exchange in a single or series
of related transactions by the shareholders of the Company of more than fifty
percent (50%) of the voting stock of the Company; (ii) a merger or
consolidation in which the Company is a party; (iii) the sale, exchange, or
transfer of all or substantially all of the assets of the Company; or
(iv) a liquidation or dissolution of the Company.

     

    (b)           A
“Change in
Control” shall
mean an Ownership Change Event or a series of related Ownership Change Events
(collectively, a “Transaction”) wherein the shareholders
of the Company immediately before the Transaction do not retain immediately
after the Transaction, in substantially the same proportions as their ownership
of shares of the Company’s voting stock
immediately before the Transaction, direct or indirect beneficial ownership of
more than fifty percent (50%) of the total combined voting power of the
outstanding voting securities of the Company or, in the case of a Transaction
described in Section 8.1(a)(iii),
the corporation or other business entity to which the assets of the Company were
transferred (the “Transferee”), as the case may
be.  For purposes of the preceding sentence, indirect beneficial
ownership shall include, without limitation, an interest resulting from
ownership of the voting securities of one or more corporations or other business
entities which own the Company or the Transferee, as the case may be, either
directly or through one or more subsidiary corporations or other business
entities.  The Board shall have the right to determine whether
multiple sales or exchanges of the voting securities of the Company or multiple
Ownership Change Events are related, and its determination shall be final,
binding and conclusive.

    
      
        2008
Stock Option Agreement

         

      

      
        6

        
          

        

      

      
         

      

    

    8.2         Effect of Change in Control on
Option.  In
the event of a Change in Control, and provided that the Optionee’s Service has
not terminated prior to such date, the surviving, continuing, successor, or
purchasing corporation or other business entity or parent thereof, as the case
may be (the “Aquiror”), may, without the consent of
the Optionee, either assume the Company’s rights and obligations under the
Option or substitute for the Option a substantially equivalent option for the
Acquiror’s stock.  The Option shall terminate and cease to be
outstanding effective as of the date of the Change in Control to the extent that
the Option is neither assumed or substituted for by the Acquiror in connection
with the Change in Control nor exercised as of the date of the Change in
Control.  Notwithstanding the foregoing, shares acquired upon exercise
of the Option prior to the Change in Control and any consideration received
pursuant to the Change in Control with respect to such shares shall continue to
be subject to all applicable provisions of this Option Agreement except as
otherwise provided herein.  Furthermore, notwithstanding the
foregoing, if the corporation the stock of which is subject to the Option
immediately prior to an Ownership Change Event described in Section 8.1(a)(i)
constituting a Change in Control is the surviving or continuing corporation and
immediately after such Ownership Change Event less than fifty percent (50%) of
the total combined voting power of its voting stock is held by another
corporation or by other corporations that are members of an affiliated group
within the meaning of Section 1504(a) of the Code without regard to the
provisions of Section 1504(b) of the Code, the Option shall not terminate
unless the Board otherwise provides in its discretion.  The Board may,
in its discretion, determine that upon a Change in Control the Option shall be
canceled in exchange for payment with respect to each Vested Share subject to
such Option immediately prior to its cancellation in (a) cash, (b) stock of the
Company or the Acquiror or (c) other property which, in any such case, shall be
in an amount having a Fair Market Value equal to the excess of the Fair Market
Value of the consideration to be paid per share of Stock in the Change in
Control over the Exercise Price per share under the Option (subject to any
required tax withholding).

    
      
        2008
Stock Option Agreement

         

      

      
        7

        
          

        

      

      
         

      

    

    9.           Adjustments for Changes in
Capital Structure.

     

    Subject
to any required action by the shareholders of the Company, in the event of any
change in the Stock effected without receipt of consideration by the Company,
whether through merger, consolidation, reorganization, reincorporation,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split, split-up, split-off, spin-off, combination of shares, exchange of shares,
or similar change in the capital structure of the Company, or in the event of
payment of a dividend or distribution to the shareholders of the Company in a
form other than Stock (excepting normal cash dividends) that has a material
effect on the Fair Market Value of shares of Stock, appropriate and
proportionate adjustments shall be made in the number, Exercise Price and class
of shares of stock subject to the Option.  If a majority of the shares
which are of the same class as the shares that are subject to the Option are
exchanged for, converted into, or otherwise become (whether or not pursuant to
an Ownership Change Event) shares of another corporation (the “New
Shares”), the
Board may unilaterally amend the Option to provide that the Option is
exercisable for New Shares.  In the event of any such amendment, the
Number of Option Shares and the Exercise Price shall be adjusted in a fair and
equitable manner, as determined by the Board, in its
discretion.  Notwithstanding the foregoing, any fractional share
resulting from an adjustment pursuant to this Section 9 shall
be rounded down to the nearest whole number, and in no event may the Exercise
Price be decreased to an amount less than the par value, if any, of the stock
subject to the Option.  The adjustments determined by the Board
pursuant to this Section 9 shall
be final, binding and conclusive.

     

    10.         Rights as a Shareholder,
Employee or Consultant.

     

    The
Optionee shall have no rights as a shareholder with respect to any shares
covered by the Option until the date of the issuance of a certificate for the
shares for which the Option has been exercised (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company).  No adjustment shall be made for dividends, distributions or
other rights for which the record date is prior to the date such certificate is
issued, except as provided in Section 9.  If
the Optionee is an Employee, the Optionee understands and acknowledges that,
except as otherwise provided in a separate, written employment agreement between
a Participating Company and the Optionee, the Optionee’s employment is
“at will” and is for no specified term.  Nothing in this Option
Agreement shall confer upon the Optionee any right to continue in the Service of
a Participating Company or interfere in any way with any right of the
Participating Company Group to terminate the Optionee’s Service as an
Employee or Consultant, as the case may be, at any time.

     

    11.         Right of First
Refusal.

     

    11.1         Grant of Right of First
Refusal.  Except
as provided in Section 11.7
below, in the event the Optionee, the Optionee’s legal
representative, or other holder of shares acquired upon exercise of the Option
proposes to sell, exchange, transfer, pledge, or otherwise dispose of any shares
acquired upon exercise of the Option (the “Transfer
Shares”) to any
person or entity, including, without limitation, any shareholder of a
Participating Company, the Company shall have the right to repurchase the
Transfer Shares under the terms and subject to the conditions set forth in this
Section 11
(the “Right of First
Refusal”).

    
      
        2008
Stock Option Agreement

         

      

      
        8

        
          

        

      

      
         

      

    

    11.2         Notice of Proposed
Transfer.  Prior
to any proposed transfer of the Transfer Shares, the Optionee shall deliver
written notice (the “Transfer
Notice”) to the
Company describing fully the proposed transfer, including the number of Transfer
Shares, the name and address of the proposed transferee (the “Proposed
Transferee”)
and, if the transfer is voluntary, the proposed transfer price, and containing
such information necessary to show the bona fide nature of the proposed
transfer.  In the event of a bona fide gift or involuntary transfer,
the proposed transfer price shall be deemed to be the Fair Market Value of the
Transfer Shares, as determined by the Board in good faith.  If the
Optionee proposes to transfer any Transfer Shares to more than one Proposed
Transferee, the Optionee shall provide a separate Transfer Notice for the
proposed transfer to each Proposed Transferee.  The Transfer Notice
shall be signed by both the Optionee and the Proposed Transferee and must
constitute a binding commitment of the Optionee and the Proposed Transferee for
the transfer of the Transfer Shares to the Proposed Transferee subject only to
the Right of First Refusal.

     

    11.3         Bona Fide Transfer.  If
the Company determines that the information provided by the Optionee in the
Transfer Notice is insufficient to establish the bona fide nature of a proposed
voluntary transfer, the Company shall give the Optionee written notice of the
Optionee’s
failure to comply with the procedure described in this Section 11, and
the Optionee shall have no right to transfer the Transfer Shares without first
complying with the procedure described in this Section 11.  The
Optionee shall not be permitted to transfer the Transfer Shares if the proposed
transfer is not bona fide.

     

    11.4         Exercise of Right of First
Refusal.  If
the Company determines the proposed transfer to be bona fide, the Company shall
have the right to purchase all, but not less than all, of the Transfer Shares
(except as the Company and the Optionee otherwise agree) at the purchase price
and on the terms set forth in the Transfer Notice by delivery to the Optionee of
a notice of exercise of the Right of First Refusal within thirty (30) days after
the date the Transfer Notice is delivered to the Company.  The
Company’s
exercise or failure to exercise the Right of First Refusal with respect to any
proposed transfer described in a Transfer Notice shall not affect the
Company’s
right to exercise the Right of First Refusal with respect to any proposed
transfer described in any other Transfer Notice, whether or not such other
Transfer Notice is issued by the Optionee or issued by a person other than the
Optionee with respect to a proposed transfer to the same Proposed
Transferee.  If the Company exercises the Right of First Refusal, the
Company and the Optionee shall thereupon consummate the sale of the Transfer
Shares to the Company on the terms set forth in the Transfer Notice within sixty
(60) days after the date the Transfer Notice is delivered to the Company (unless
a longer period is offered by the Proposed Transferee); provided, however, that
in the event the Transfer Notice provides for the payment for the Transfer
Shares other than in cash, the Company shall have the option of paying for the
Transfer Shares by the present value cash equivalent of the consideration
described in the Transfer Notice as reasonably determined by the
Company.  For purposes of the foregoing, cancellation of any
indebtedness of the Optionee to any Participating Company shall be treated as
payment to the Optionee in cash to the extent of the unpaid principal and any
accrued interest canceled.

    
      
        2008
Stock Option Agreement

         

      

      
        9

        
          

        

      

      
         

      

    

    11.5         Failure to Exercise Right of First
Refusal.  If
the Company fails to exercise the Right of First Refusal in full (or to such
lesser extent as the Company and the Optionee otherwise agree) within the period
specified in Section 11.4
above, the Optionee may conclude a transfer to the Proposed Transferee of the
Transfer Shares on the terms and conditions described in the Transfer Notice,
provided such transfer occurs not later than ninety (90) days following delivery
to the Company of the Transfer Notice.  The Company shall have the
right to demand further assurances from the Optionee and the Proposed Transferee
(in a form satisfactory to the Company) that the transfer of the Transfer Shares
was actually carried out on the terms and conditions described in the Transfer
Notice.  No Transfer Shares shall be transferred on the books of the
Company until the Company has received such assurances, if so demanded, and has
approved the proposed transfer as bona fide.  Any proposed transfer on
terms and conditions different from those described in the Transfer Notice, as
well as any subsequent proposed transfer by the Optionee, shall again be subject
to the Right of First Refusal and shall require compliance by the Optionee with
the procedure described in this Section 11.

     

    11.6         Transferees of Transfer
Shares.  All
transferees of the Transfer Shares or any interest therein, other than the
Company, shall be required as a condition of such transfer to agree in writing
(in a form satisfactory to the Company) that such transferee shall receive and
hold such Transfer Shares or interest therein subject to all of the terms and
conditions of this Option Agreement, including this Section 11
providing for the Right of First Refusal with respect to any subsequent
transfer.  Any sale or transfer of any shares acquired upon exercise
of the Option shall be void unless the provisions of this Section 11 are
met.

     

    11.7         Transfers Not Subject to Right of
First Refusal.  The
Right of First Refusal shall not apply to any transfer or exchange of the shares
acquired upon exercise of the Option if such transfer or exchange is in
connection with an Ownership Change Event.  If the consideration
received pursuant to such transfer or exchange consists of stock of a
Participating Company, such consideration shall remain subject to the Right of
First Refusal unless the provisions of Section 11.9
below result in a termination of the Right of First Refusal.

     

    11.8         Assignment of Right of First
Refusal.  The
Company shall have the right to assign the Right of First Refusal at any time,
whether or not there has been an attempted transfer, to one or more persons as
may be selected by the Company.

     

    11.9         Early Termination of Right of First
Refusal.  The
other provisions of this Option Agreement notwithstanding, the Right of First
Refusal shall terminate and be of no further force and effect upon (a) the
occurrence of a Change in Control, unless the Acquiror assumes the Company’s rights and
obligations under the Option or substitutes a substantially equivalent option
for the Acquiror’s stock for the Option, or (b) the existence of a public
market for the class of shares subject to the Right of First
Refusal.  A “public
market” shall be
deemed to exist if (i) such stock is listed on a national securities
exchange (as that term is used in the Exchange Act) or (ii) such stock is
traded on the over-the-counter market and prices therefor are published daily on
business days in a recognized financial journal.

     

    12.          Vested Share Repurchase
Option.

     

    12.1         Grant of Vested Share Repurchase
Option.  Except
as provided in Section 12.4
below, in the event of the occurrence of any Repurchase Event, as defined below,
the Company shall have the right to repurchase the shares acquired by the
Optionee pursuant to the Option (the “Repurchase
Shares”) under
the terms and subject to the conditions set forth in this Section 12 (the
“Vested
Share Repurchase
Option”).  Each of the
following events shall constitute a “Repurchase
Event”:

    
      
        2008
Stock Option Agreement

         

      

      
        10

        
          

        

      

      
         

      

    

    (a)           Termination
of the Optionee’s Service with the Participating Company Group for any reason or
no reason, with or without cause, including death or Disability.  The
Repurchase Period, as defined below, shall commence on the date of termination
of the Optionee’s Service.

     

    (b)           For
the Optionee directly or indirectly to own, manage, operate, join, control or
participate in the ownership, management, operation or control of, or render
services as an employee, consultant or independent contractor to, any business
whether in corporate, proprietorship or partnership form or otherwise with
respect to any product or service that is the same as or competitive with the
Company’s business.

     

    (c)           The
Optionee, the Optionee’s legal representative, or other holder of shares
acquired upon exercise of the Option attempts to sell, exchange, transfer,
pledge, or otherwise dispose of any Repurchase Shares without complying with the
provisions of Section 11.  The
Repurchase Period, as defined below, shall commence on the date the Company
receives actual notice of such attempted sale, exchange, transfer, pledge or
other disposition.

     

    (d)           The
receivership, bankruptcy or other creditor’s proceeding regarding the Optionee
or the taking of any of the Optionee’s shares of Stock by legal process, such as
a levy of execution.  The Repurchase Period, as defined below, shall
commence on the date the Company receives actual notice of the commencement of
pendency of the receivership, bankruptcy or other creditor’s proceeding or the
date of such taking, as the case may be.  The Fair Market Value of the
Repurchase Shares shall be determined as of the last day of the month preceding
the month in which the proceeding involved commenced or the taking
occurred.

     

    12.2         Exercise of Vested Share Repurchase
Option.  The Company may exercise the Vested Share Repurchase
Option by written notice to the Optionee, the Optionee’s legal representative,
or other holder of the Repurchase Shares, as the case may be, at any time after
a Repurchase Event.  The Vested Share Repurchase Option may be
exercised for some or all of the Repurchase Shares, in the discretion of the
Company.

     

    12.3         Payment for Repurchase
Shares.  The repurchase price per share being repurchased by
the Company pursuant to the Vested Share Repurchase Option shall be an amount
equal to the Fair Market Value of the shares determined as of the date of the
Repurchase Event.  Payment by the Company to the Optionee shall be
made in cash on or before the last day of the Repurchase Period.  For
purposes of the foregoing, cancellation of any indebtedness of the Optionee to
the Company shall be treated as payment to the Optionee in cash to the extent of
the unpaid principal and any accrued interest canceled.

     

    12.4         Transfers Not Subject to Vested Share
Repurchase Option.  The Vested Share Repurchase Option shall
not apply to any transfer or exchange of shares acquired upon exercise of the
Option if such transfer or exchange is in connection with an Ownership Change
Event.  If the consideration received pursuant to such transfer or
exchange consists of stock of a Participating Company, such consideration will
remain subject to the Vested Share Repurchase Option unless the provisions of
Section 12.6
below result in a termination of the Vested Share Repurchase
Option.

    
      
        2008
Stock Option Agreement

         

      

      
        11

        
          

        

      

      
         

      

    

    12.5         Assignment of Vested Share Repurchase
Option.  The Company shall have the right to assign the Vested
Share Repurchase Option at any time, whether or not such option is then
exercisable, to one or more persons as may be selected by the
Company.

     

    12.6         Early Termination of Vested Share
Repurchase Option.  The other provisions of this Option
Agreement notwithstanding, the Vested Share Repurchase Option shall terminate
and be of no further force and effect upon (a) the occurrence of a Change
in Control, unless the Acquiror assumes the Company’s rights and obligations
under the Option or substitutes a substantially equivalent option for the
Acquiror’s stock for the Option, or (b) the existence of a public market,
as defined in Section 11.9,
for the class of shares subject to the Vested Share Repurchase
Option.

     

    13.         Escrow.

     

    13.1       Establishment of Escrow.  To
ensure that shares subject to the Right of First Refusal or the Vested Share
Repurchase Option will be available for repurchase, the Company may require the
Optionee to deposit the certificate evidencing the shares which the Optionee
purchases upon exercise of the Option with an escrow agent designated by the
Company under the terms and conditions of escrow and security agreements
approved by the Company.  If the Company does not require such deposit
as a condition of exercise of the Option, the Company reserves the right at any
time to require the Optionee to so deposit the certificate in
escrow.  Upon the occurrence of an Ownership Change Event or a change,
as described in Section 9, in
the character or amount of any of the outstanding stock of the corporation the
stock of which is subject to the provisions of this Option Agreement, any and
all new, substituted or additional securities or other property to which the
Optionee is entitled by reason of the Optionee’s ownership of shares of Stock
acquired upon exercise of the Option that remain, following such Ownership
Change Event or change described in Section 9,
subject to the Right of First Refusal, the Vested Share Repurchase Option, or
any security interest held by the Company shall be immediately subject to the
escrow to the same extent as such shares of Stock immediately before such
event.  The Company shall bear the expenses of the
escrow.

     

    13.2       Delivery of Shares to
Optionee.  As
soon as practicable after the expiration of the Right of First Refusal, the
Vested Share Repurchase Option and after full repayment of any promissory note
secured by the shares in escrow, but not more frequently than twice each
calendar year, the escrow agent shall deliver to the Optionee the shares no
longer subject to such restrictions and no longer securing any promissory
note.

     

    13.3       Notices and
Payments.  In the event the shares held in escrow are subject
to the Company’s exercise of the Right of First Refusal or the Vested Share
Repurchase Option, the notices required to be given to the Optionee shall be
given to the escrow agent, and any payment required to be given to the Optionee
shall be given to the escrow agent.  Within thirty (30) days after
payment by the Company, the escrow agent shall deliver the shares which the
Company has purchased to the Company and shall deliver the payment received from
the Company to the Optionee.

    
      
        2008
Stock Option Agreement

         

      

      
        12

        
          

        

      

      
         

      

    

    14.         Stock
Distributions Subject to Option Agreement.

     

    If, from
time to time, there is any stock dividend, stock split or other change, as
described in Section 9, in
the character or amount of any of the outstanding stock of the corporation the
stock of which is subject to the provisions of this Option Agreement, then in
such event any and all new, substituted or additional securities to which the
Optionee is entitled by reason of the Optionee’s ownership of the
shares acquired upon exercise of the Option shall be immediately subject to the
Right of First Refusal, the Vested Share Repurchase Option, and any security
interest held by the Company with the same force and effect as the shares
subject to the Right of First Refusal, the Vested Share Repurchase Option and
such  immediately before such event.

     

    15.         Notice of Sales Upon
Disqualifying Disposition.

     

    The
Optionee shall dispose of the shares acquired pursuant to the Option only in
accordance with the provisions of this Option Agreement.  In addition,
if the Notice designates this
Option as an Incentive Stock Option, the Optionee shall (a) promptly
notify the Chief Financial Officer of the Company if the Optionee disposes of
any of the shares acquired pursuant to the Option within one (1) year after the
date the Optionee exercises all or part of the Option or within two (2) years
after the Date of Option Grant and (b) provide the Company with a
description of the circumstances of such disposition.  Until such time
as the Optionee disposes of such shares in a manner consistent with the
provisions of this Option Agreement, unless otherwise expressly authorized by
the Company, the Optionee shall hold all shares acquired pursuant to the Option
in the Optionee’s name (and not in
the name of any nominee) for the one-year period immediately after the exercise
of the Option and the two-year period immediately after Date of Option
Grant.  At any time during the one-year or two-year periods set forth
above, the Company may place a legend on any certificate representing shares
acquired pursuant to the Option requesting the transfer agent for the
Company’s
stock to notify the Company of any such transfers.  The obligation of
the Optionee to notify the Company of any such transfer shall continue
notwithstanding that a legend has been placed on the certificate pursuant to the
preceding sentence.

     

    16.         Legends.

     

    The
Company may at any time place legends referencing the Right of First Refusal,
the Vested Share Repurchase Option, and any applicable federal, state or foreign
securities law restrictions on all certificates representing shares of stock
subject to the provisions of this Option Agreement.  The Optionee
shall, at the request of the Company, promptly present to the Company any and
all certificates representing shares acquired pursuant to the Option in the
possession of the Optionee in order to carry out the provisions of this
Section.  Unless otherwise specified by the Company, legends placed on
such certificates may include, but shall not be limited to, the
following:

     

    16.1         “THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED
OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 OR
RULE 701 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER,
ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF SUCH ACT.”

    
      
        2008
Stock Option Agreement

         

      

      
        13

        
          

        

      

      
         

      

    

    16.2         “THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT OF FIRST REFUSAL
OPTION IN FAVOR OF THE CORPORATION OR ITS ASSIGNEE SET FORTH IN AN AGREEMENT
BETWEEN THE CORPORATION AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN
INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS
CORPORATION.”

     

    16.3         “THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A VESTED SHARE REPURCHASE
OPTION IN FAVOR OF THE CORPORATION OR ITS ASSIGNEE SET FORTH IN AN AGREEMENT
BETWEEN THE CORPORATION AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR
IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS
CORPORATION.”

     

    16.4         “THE
SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE
REGISTERED HOLDER UPON EXERCISE OF AN INCENTIVE STOCK OPTION AS DEFINED IN
SECTION 422 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (“ISO”).  IN ORDER TO
OBTAIN THE PREFERENTIAL TAX TREATMENT AFFORDED TO ISOs, THE SHARES SHOULD NOT BE
TRANSFERRED PRIOR TO [INSERT
DISQUALIFYING DISPOSITION DATE HERE].  SHOULD THE REGISTERED
HOLDER ELECT TO TRANSFER ANY OF THE SHARES PRIOR TO THIS DATE AND FOREGO ISO TAX
TREATMENT, THE TRANSFER AGENT FOR THE SHARES SHALL NOTIFY THE CORPORATION
IMMEDIATELY.  THE REGISTERED HOLDER SHALL HOLD ALL SHARES PURCHASED
UNDER THE INCENTIVE STOCK OPTION IN THE REGISTERED HOLDER’S NAME (AND NOT IN
THE NAME OF ANY NOMINEE) PRIOR TO THIS DATE OR UNTIL TRANSFERRED AS DESCRIBED
ABOVE.”

     

    17.         Lock-Up
Agreement.

     

    The
Optionee hereby agrees that in the event of any underwritten public offering of
stock, including an initial public offering of stock, made by the Company
pursuant to an effective registration statement filed under the Securities Act,
the Optionee shall not offer, sell, contract to sell, pledge, hypothecate, grant
any option to purchase or make any short sale of, or otherwise dispose of any
shares of stock of the Company or any rights to acquire stock of the Company for
such period of time from and after the effective date of such registration
statement as may be established by the underwriter for such public offering;
provided, however, that such period of time shall not exceed one hundred eighty
(180) days from the effective date of the registration statement to be filed in
connection with such public offering.  The foregoing limitation shall
not apply to shares registered in the public offering under the Securities
Act.

    
      
        2008
Stock Option Agreement

         

      

      
        14

        
          

        

      

      
         

      

    

    18.         Restrictions on Transfer of
Shares.

     

    No shares
acquired upon exercise of the Option may be sold, exchanged, transferred
(including, without limitation, any transfer to a nominee or agent of the
Optionee), assigned, pledged, hypothecated or otherwise disposed of, including
by operation of law, in any manner which violates any of the provisions of this
Option Agreement and any such attempted disposition shall be
void.  The Company shall not be required (a) to transfer on its
books any shares which will have been transferred in violation of any of the
provisions set forth in this Option Agreement or (b) to treat as owner of
such shares or to accord the right to vote as such owner or to pay dividends to
any transferee to whom such shares will have been so transferred.

     

    19.         Miscellaneous
Provisions.

     

    19.1         Binding
Effect.  Subject to the restrictions on transfer set forth
herein, this Option Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective heirs, executors, administrators,
successors and assigns.

     

    19.2         Termination or
Amendment.  The Board may terminate or amend the Plan or the
Option at any time; provided, however, that except as provided in Section 8.2 in
connection with a Change in Control, no such termination or amendment may
adversely affect the Option or any unexercised portion hereof without the
consent of the Optionee unless such termination or amendment is necessary to
comply with any applicable law or government regulation or is required to enable
the Option, if designated an Incentive Stock Option in the Notice, to qualify as
an Incentive Stock Option.  No amendment or addition to this Option
Agreement shall be effective unless in writing.

     

    19.3         Notices.  Any notice
required or permitted hereunder shall be given in writing and shall be deemed
effectively given (except to the extent that this Option Agreement provides for
effectiveness only upon actual receipt of such notice) upon personal delivery or
upon deposit in the United States Post Office, by registered or certified mail,
with postage and fees prepaid, addressed to the other party at the address shown
below that party’s signature or at
such other address as such party may designate in writing from time to time to
the other party.

     

    19.4         Integrated
Agreement.  The Notice, this Option Agreement and the Plan
together with any employment, service or other agreement with the Optionee and a
Participating Company referring to the Option will constitute the entire
understanding and agreement of the Optionee and the Participating Company Group
with respect to the subject matter contained herein or therein and supersedes
any prior agreements, understandings, restrictions, representations, or
warranties among the Optionee and the Participating Company Group with respect
to such subject matter other than those as set forth or provided for herein or
therein.  To the extent contemplated herein or therein, the provisions
of the Notice and the Option Agreement shall survive any exercise of the Option
and shall remain in full force and effect.

     

    19.5         Applicable
Law.  This Option Agreement shall be governed by the laws of
the State of Washington as such laws are applied to agreements between
Washington residents entered into and to be performed entirely within the State
of Washington.

    
      
        2008
Stock Option Agreement

         

      

      
        15

        
          

        

      

      
         

      

    

    19.6         Counterparts.  The
Notice may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

    
      
        2008
Stock Option Agreement

         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Ô  Incentive
      Stock Option

                	
                  Optionee:  

                	 
      

        

      

    

    Ô  Nonstatutory
Stock Option

    
      
        
          
            	
                    Date:  

                  	 
      

          

        

      

    

    

    STOCK
OPTION EXERCISE NOTICE

    

    IntelaSight,
Inc.

    Attention:
__________________

    ___________________________

    ___________________________

    

    Ladies
and Gentlemen:

    

    1.           Option.  I was granted an
option (the “Option”) to purchase shares of the
common stock (the “Shares”) of IntelaSight, Inc., a
Washington corporation (the “Company”) pursuant to the
Company’s
2008 Stock Option Plan (the “Plan”), my Notice of Grant of
Stock Option (the “Notice”) and my Stock Option
Agreement (the “Option
Agreement”) as
follows:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Grant
      Number:

                                  	 	 	 	 
	 
      	 	 	 	 
	
                                    Date
      of Option Grant:

                                  	 	 	 	 
	 
      	 	 	 	 
	
                                    Number
      of Option Shares:

                                  	 	 	 	 
	 
      	 	 	 	 
	
                                    Exercise
      Price per Share:

                                  	 	$	 	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    2.           Exercise
of Option.  I hereby elect to
exercise the Option to purchase the following number of Shares, all of which are
Vested Shares in accordance with the Notice and the Option
Agreement:

    

    
      
        
          
            
              
                	
                        Total
      Shares Purchased:

                      	 	 	 	 
	 
      	 	 	 	 
	
                        Total
      Exercise Price (Total Shares  X  Price per
      Share)

                      	 	$	 	 

              

            

          

        

      

    

    

    3.           Payments.  I enclose payment
in full of the total exercise price for the Shares in the following form(s), as
authorized by my Option Agreement:

    

    
      
        
          
            
              	
                      Ô  Cash:

                    	 	$	 	 
	 
      	 	 	 	 
	
                      Ô  Check:

                    	 	$	 	 
	 
      	 	 	 	 
	
                      Ô  Tender
      of Company Stock:

                    	 	
                      Contact
      Plan Administrator

                    	 

            

          

        

      

    

     

    
      
        Notice
of Option Exercise

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    4.           Tax
Withholding.  I authorize
payroll withholding and otherwise will make adequate provision for the federal,
state, local and foreign tax withholding obligations of the Company, if any, in
connection with the Option.  If I am exercising a Nonstatutory Stock
Option, I enclose payment in full of my withholding taxes, if any, as
follows:

    

    (Contact
Plan Administrator for amount of tax due.)

    

    
      
        
          
            
              	
                      Ô  Cash:

                    	 	$	 	 
	 
      	 	 	 	 
	
                      Ô  Check:

                    	 	$	 	 

            

          

        

      

    

    

    5.           Optionee
Information.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  My
      address is: 

                                	 
      
	 	 
	 
      	 
      

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          
            	
                    My
      Social Security Number is:

                  	 
      

          

        

      

    

     

    6.           Notice of
Disqualifying Disposition.  If the Option is
an Incentive Stock Option, I agree that I will promptly notify the Chief
Financial Officer of the Company if I transfer any of the Shares within one (1)
year from the date I exercise all or part of the Option or within two (2) years
of the Date of Option Grant.

    

    7.           Binding
Effect.  I agree that the
Shares are being acquired in accordance with and subject to the terms,
provisions and conditions of the Option Agreement, including the Right of First
Refusal and the Vested Share Repurchase Option set forth therein, to all of
which I hereby expressly assent.  This Agreement shall inure to the
benefit of and be binding upon my heirs, executors, administrators, successors
and assigns.

    

    8.           Transfer.  I understand and
acknowledge that the Shares have not been registered under the Securities Act of
1933, as amended (the “Securities
Act”), and that
consequently the Shares must be held indefinitely unless they are subsequently
registered under the Securities Act, an exemption from such registration is
available, or they are sold in accordance with Rule 144 or Rule 701
under the Securities Act.  I further understand and acknowledge that
the Company is under no obligation to register the Shares.  I
understand that the certificate or certificates evidencing the Shares will be
imprinted with legends which prohibit the transfer of the Shares unless they are
registered or such registration is not required in the opinion of legal counsel
satisfactory to the Company.

    

    I am aware that Rule 144 under the
Securities Act, which permits limited public resale of securities acquired in a
nonpublic offering, is not currently available with respect to the Shares and,
in any event, is available only if certain conditions are
satisfied.  I understand that any sale of the Shares that might be
made in reliance upon Rule 144 may only be made in limited amounts in
accordance with the terms and conditions of such rule and that a copy of
Rule 144 will be delivered to me upon request.

    
      
        Notice
of Option Exercise

         

      

      
        2

        
          

        

      

      
         

      

    

    I understand that I am purchasing the
Shares pursuant to the terms of the Plan, the Notice and my Option Agreement,
copies of which I have received and carefully read and understand.

    

    
      
        
          	 
      	
                  Very
      truly yours,

                
	 
      	 
      
	 
      	 
      
	 
      	
                  (Signature)

                

        

      

    

    

    Receipt
of the above is hereby acknowledged.

    

    
      
        
          
            
              	
                      By:

                    	 
      
	 
      	 
      
	
                      Title: 

                    	 
      
	 
      	 
      
	
                      Dated:

                    	 
      

            

          

        

      

    

    
      
        Notice
of Option Exercise

         

      

      
        3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]