Document:

EXHIBIT
      10.22

     

    SECOND
      AMENDMENT TO CREDIT AGREEMENT

    

    THIS
      SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”)
      dated
      as of August 3, 2007 is by and among AUTOZONE, INC., a
      Nevada
      corporation (the “Borrower”),
      the
      Lenders party hereto, BANK OF AMERICA, N.A., as
      Administrative Agent, and WACHOVIA BANK, NATIONAL ASSOCIATION, as Co-Syndication
      Agent.

    

    WITNESSETH

    

    WHEREAS,
      a $300,000,000 term loan has been established pursuant to the terms of that
      certain Credit Agreement dated as of December 23, 2004 (as amended by that
      certain First Amendment to Credit Agreement dated as of May 5, 2006 and as
      otherwise amended, restated, modified or supplemented from time to time, the
      “Credit
      Agreement”)
      among
      the Borrower, the Lenders from time to time party thereto, the Administrative
      Agent and the Co-Syndication Agent;

    

    WHEREAS,
      the Borrower has requested that the Lenders amend the Credit Agreement to modify
      certain provisions contained therein; and

    

    WHEREAS,
      the Lenders have agreed to amend the Credit Agreement on the terms and subject
      to the conditions set forth herein.

    

    NOW,
      THEREFORE, IN CONSIDERATION of the premises and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto agree as follows:

    

    1. Defined
      Terms.
      Capitalized terms used herein but not otherwise defined herein shall have the
      meanings provided to such terms in the Credit Agreement.

    

    2. Amendments.
      Effective upon the satisfaction of the conditions precedent set forth in Section
      3 hereof, the Credit Agreement is hereby amended by deleting Schedule
      1.1(a)
      thereto
      in its entirety and replacing it with Schedule
      1.1(a)
      attached
      hereto as Exhibit
      A.

    

    3. Condition
      Precedent.
      This
      Amendment shall become effective as of the date hereof (the “Second
      Amendment Effective Date”)
      upon
      receipt by the Administrative Agent of the following:

    

    (a) Amendment.
      Counterparts of this Amendment duly executed by the Borrower and the
      Lenders;

    

    (b) Fees.
      Any
      fees required to be paid on or before the Second Amendment Effective Date shall
      have been paid.

    

    (c) Attorney
      Costs.
      Unless
      waived by the Administrative Agent, the Borrower shall have paid all costs
      and
      expenses of Moore & Van Allen PLLC, outside counsel to the Administrative
      Agent, incurred pursuant to Section 6 of this Amendment to the extent invoiced
      prior to or on the Second Amendment Effective Date, plus
      such
      additional amounts as shall constitute its reasonable estimate of such costs
      and
      expenses incurred or to be incurred by it through the closing proceedings
      (provided that such estimate shall not thereafter preclude a final settling
      of
      accounts between the Borrower and the Administrative Agent).

    

    (d) Accuracy
      of Representations and Warranties.
      The
      representations and warranties of the Borrower and each other Loan Party
      contained in Section 4 hereof shall be true and correct on and as of the Second
      Amendment Effective Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (e) No
      Default.
      No
      Default shall exist and be continuing as of the Second Amendment Effective
      Date.

    

    4. Representations
      and Warranties.
      The
      Borrower hereby
      represents and warrants that (a) it has the requisite organizational power
      and
      authority to execute, deliver and perform this Amendment, (b) it is duly
      authorized to, and has been authorized by all necessary organizational action
      to, execute, deliver and perform this Amendment, (c) no
      consent, approval, authorization or order of, or filing, registration or
      qualification with, any court or governmental authority or third party is
      required in connection with the execution, delivery or performance by it of
      this
      Amendment, (d) the execution, delivery and performance by it of this Amendment
      do not and will not conflict with, result in a breach of or constitute a default
      under the articles of incorporation, bylaws or other organizational documents
      of
      the Borrower or any of its Subsidiaries or any indenture or other material
      agreement or instrument to which any such Person is a party or by which any
      of
      its properties may be bound or the approval of any Governmental Authority
      relating to such Person except as could not reasonably be expected to have
      a
      Material Adverse Effect, (e)
      the
      representations and warranties contained in Article
      V
      of the
      Credit Agreement are true and correct in all material respects on and as of
      the
      date hereof as though made on and as of such date (except for those which
      expressly relate to an earlier date) and (f) after giving effect to this
      Amendment, no Default or Event of Default exists under the Credit Agreement
      on
      and as of the date hereof or will occur as a result of the transactions
      contemplated hereby. 

    

    5. No
      Other Changes; Ratification.
      Except
      as expressly modified hereby, all of the terms and provisions of the Credit
      Agreement (including schedules, amendments and exhibits thereto) and the other
      Credit Documents shall remain in full force and effect. The term “this
      Agreement” or “Credit Agreement” and all similar references as used in each of
      the Credit Documents shall hereafter mean the Credit Agreement as amended by
      this Amendment. Except as herein specifically agreed, the Credit Agreement
      is
      hereby ratified and confirmed and shall remain in full force and effect
      according to its terms.

    

    6. Costs
      and Expenses.
      The
      Borrower agrees to pay all reasonable costs and expenses of the Administrative
      Agent in connection with the preparation, execution and delivery of this
      Amendment, including without limitation the reasonable fees and expenses of
      Moore & Van Allen, PLLC.

    

    7. Counterparts;
      Facsimile.
      This
      Amendment may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed an original and it shall not be necessary
      in making proof of this Amendment to produce or account for more than one such
      counterpart. Delivery of an executed counterpart of this Amendment by telecopy
      or electronic mail by any party hereto shall be effective as such party’s
      original executed counterpart.

    

    8. Governing
      Law.
      This
      Amendment shall be deemed to be a contract made under, and for all purposes
      shall be construed in accordance with, the laws of the State of New
      York.

    

    9. Entirety.
      This
      Amendment and the other Credit Documents embody the entire agreement between
      the
      parties and supersede all prior agreements and understandings, if any, relating
      to the subject matter hereof. This Amendment and the other Credit Documents
      represent the final agreement between the parties and may not be contradicted
      by
      evidence of prior, contemporaneous or subsequent oral agreements of the parties.
      There are no oral agreements between the parties.

    

    

    [SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
      Amendment to be duly executed and delivered as of the date first above
      written.

    
      	 	 	 
	BORROWER:	AUTOZONE,
              INC.
	 
 	 
 	 
 
	
            	By:  	/s/
              Brian L. Campbell
	 	
              

              Name:
                Brian L. Campbell

              Title:
                Vice President & Treasurer

            
	 	
            

      	 	 	 
	
            	By:  	/s/
              William T. Giles
	 	
              

              Name:
                William T. Giles

              Title:
                Executive Vice President &
CFO

            

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
              ADMINISTRATIVE
                AGENT:

            	BANK
              OF AMERICA, N.A.,
              
	 	
              as
                Administrative Agent

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Thomas Kainamura
	 	
              

              Name:
                Thomas Kainamura

              Title:
                Vice President

            
	 	
            

      	 	 	 
	LENDERS: 	BANK
              OF
              AMERICA, N.A., 
	 	as a Lender
	 
 	 
 	 
 
	
            	By:  	/s/
              Thomas Kainamura
	 	
              

              Name:
                Thomas Kainamura

              Title:
                Vice President 

            
	 	
            

    

    
      	 	 	 
	 	Wachovia
              Bank, National Association
	 
 	 
 	 
 
	
            	By:  	/s/
              Anthony D. Braxton
	 	
              

              Name:
                Anthony D. Braxton

              Title:
                Director

            
	 	
            

    

    
      	 	 	 
	 	BNP
              PARIBAS
	 
 	 
 	 
 
	
            	By:  	/s/
              Simone Vinocour
	 	
              

              Name:
                Simone Vinocour

              Title
                :Director

            
	 	
            

    

    
      	 	 	 
	 	Regions
              Bank
	 
 	 
 	 
 
	
            	By:  	/s/
              Bryan W. Ford
	 	
              

              Name:
                Bryan W. Ford

              Title:
                Senior Vice President

            
	 	
            

    

    
      	 	 	 
	 	Mizuho
              Corporate Bank, Ltd. 
	 
 	 
 	 
 
	
            	By:  	/s/
              Makoto Murata
	 	
              

              Name:
                Makoto Murata

              Title:
                Deputy General Manager

            
	 	
            

    

    
      	 	 	 
	 	[Calyon
              New York Branch]
	 
 	 
 	 
 
	
            	By:  	/s/
              Samuel Hill 
	 	
              

              Name:
                Samuel Hill

              Title:
                Managing Director / Region Head

            
	 	
            

    

    
      	 	 	 
	
            	By:  	/s/
              Brian Myers
	 	
              

              Name:
                Brian Myers

              Title:
                Managing Director

            
	 	
            

    

    
      	 	 	 
	 	
              Union
                Bank of California, N.A. 

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Tawny J. Palovchik
	 	
              

              Name:
                Tawny J. Palovchik

              Title:
                Investment Banking Officer

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	Fifth
              Third Bank, N.A.
	 
 	 
 	 
 
	
            	By:  	/s/
              John K. Perez
	 	
              

              Name:
                John K. Perez

              Title:
                Vice President

            
	 	
            

    

    
      	 	 	 
	 	U.S.
              Bank
              N.A.
	 
 	 
 	 
 
	
            	By:  	/s/
              Michael P. Dickman
	 	
              

              Name:
                Michael P. Dickman

              Title:
                Vice President

               
                U.S. Bank, N.A.

            
	 	
            

    

    
      	 	 	 
	 	
              The
                Bank of Tokyo-Mitsubishi UFJ, Ltd.

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Doug
              Barnell
	 	
              

              Name:
                Doug Barnell

              Title:
                Manager, Southwest Corporate

            
	 	
            

    

    
      	 	 	 
	 	
              National
                City Bank

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Jennifer Obers
	 	
              

              Name:
                Jennifer Obers

              Title:
                Portfolio Manager

            
	 	
            

    

    
      	 	 	 
	 	
              THE
                CHIBA BANK, LTD., NEW YORK BRANCH

              as
                a Lender

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Morio Tsumita
	 	
              

              Name:
                Morio Tsumita

              Title:
                General Manager

            
	 	
            

      	 	 	 
	 	
              Comerica
                Bank

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Heather A. Whiting
	 	
              

              Name:
                Heather A. Whiting

              Title:
                Vice President

            
	 	
            

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    Schedule
      1.1(a)

    

    APPLICABLE
      PERCENTAGE

    

    
      	
              Pricing

              Level

            	
               

            	
              S&P/Moody’s

              Rating

            	
               

            	
              Applicable
                Margin

              for

              Eurodollar
                Loans

            	
               

            	
              Applicable
                Margin 
for 
Base
                Rate Loans

            
	
              Level
                I

            	 	
              A-/A3
                or above

            	 	
              30.0
                bps

            	 	
              0

            
	
              Level
                II

            	 	
              BBB+/Baa1

            	 	
              35.0
                bps

            	 	
              0

            
	
              Level
                III

            	 	
              BBB/Baa2
                

            	 	
              45.0
                bps

            	 	
              0

            
	
              Level
                IV

            	 	
              BBB-/Baa3

            	 	
              62.5
                bps

            	 	
              0

            
	
              Level
                V

            	 	
              Below
                BBB-/Baa3 

            	 	
              90.0
                bps

            	 	
              0

            

    

    

    The
      Applicable Percentage shall be based on the applicable Pricing Level
      corresponding to the Rating(s) then in effect. In the event of a Split Rating,
      the applicable Pricing Level shall be based on the higher Rating. In the event
      of a Double Split Rating, the applicable Pricing Level shall be based on the
      Pricing Level which is one above that corresponding to the lower Rating. If
      no
      Rating exists, the applicable Pricing Level shall be based on Pricing Level
      V
      until the earlier of (A) such time as S&P and/or Moody’s provides another
      Rating or (B) the Required Lenders have agreed to an alternative pricing grid
      or
      other method for determining Pricing Levels pursuant to an effective amendment
      to this Credit Agreement.

     

    As
      used
      herein:

    

    "Rating"
      means
      the senior unsecured (non-credit enhanced) long term debt rating of the
      Borrower, as published by S&P and/or Moody’s.

    

    "Split
      Rating"
      means
      the ratings of S&P and Moody’s would indicate different Pricing Levels, but
      the Pricing Levels are not more than one Pricing Level apart.

    

    "Double
      Split Rating"
      means
      the ratings of S&P and Moody’s would indicate different Pricing Levels, but
      the Pricing Levels are two or more Pricing Levels apart.Exhibit
      10.26

     

    AutoZone,
      Inc.

    2006
      Stock Option Plan

    

    STOCK
      OPTION GRANT NOTICE AND

    STOCK
      OPTION AGREEMENT

    

    AutoZone,
      Inc., a Nevada corporation (the “Company”),
      pursuant to its 2006 Stock Option Plan (the “Plan”),
      hereby grants to the holder listed below (“Participant”)
      an
      option (the “Option”)
      to
      purchase that number of shares of the Company’s common stock, par value $.01
      (“Stock”)
      set
      forth below. This Option is subject to all of the terms and conditions set
      forth
      herein, in the Stock Option Agreement attached hereto as Exhibit A
      (the
“Stock
      Option Agreement”)
      and
      the Plan, which are incorporated herein by reference. All capitalized terms
      used
      in this Grant Agreement, but not defined, shall have the meanings provided
      in
      the Plan.

    

      
        	
                Participant:

              	 	 	
                [____]

              	
              
	
                Grant
                  Date:

              	 	 	
                [____]

              	
                 

              
	
                Exercise
                  Price per Share:

              	 	
                $

              	
                [____]

              	
                 

              
	
                Total
                  Number of Shares

              	 	 	[____]	
              
	
                Subject
                  to the Option:

              	 	 	
                [____]

              	
                 

              
	
                Expiration
                  Date:

              	 	 	
                [____]

              	
                 

              

      

    

    

    Type
      of Option:o
      Incentive Stock
      Option 
o
      Non-Qualified Stock Option

    

    Vesting
      Schedule: The
      Option granted under this Agreement shall vest and become exercisable in four
      (4) cumulative installments as follows:

    

    (i) The
      first
      installment shall consist of one-fourth of the shares covered by the Option
      and
      shall become exercisable on the first anniversary of the Grant
      Date.

    

    (ii) The
      second installment shall consist of one-fourth of the shares covered by the
      Option and shall become exercisable on the second anniversary of the Grant
      Date.

    

    (iii) The
      third
      installment shall consist of one-fourth of the shares covered by the Option
      and
      shall become exercisable on the third anniversary of the Grant
      Date.

    

    (iv) The
      fourth installment shall consist of one-fourth of the shares covered by the
      Option and shall become exercisable on the fourth anniversary of the Grant
      Date.]

    

    By
      his or
      her signature, Participant agrees to be bound by the terms and conditions of
      the
      Plan, the Stock Option Agreement and this Grant Notice. Participant has reviewed
      the Stock Option Agreement, the Plan and this Grant Notice in their entirety,
      has had an opportunity to obtain the advice of counsel prior to executing this
      Grant Notice and fully understands all provisions of this Grant Notice, the
      Stock Option Agreement and the Plan. Participant hereby agrees to accept as
      binding, conclusive and final all discussions or interpretations of the
      Committee upon any questions arising under the Plan or relating to the
      Option.

    
      	 	 	 	 
	AUTOZONE, INC.	 	 	PARTICIPANT
	 	 	 	 
	By:	 	 	By:
	
              
                

              

               

              Print Name:

            	 	 	
              
                

              

               

              Print Name:

            
	
              
                

              

              Title:

            	 	 	
              
                

              

              Title:

            
	
              
                
 

            	 	 	
              
                
 

            

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A
      TO STOCK OPTION GRANT NOTICE

    

    STOCK
      OPTION AGREEMENT

     

    Pursuant
      to the Stock Option Grant Notice (the
      “Grant
      Notice”)
      to
      which
      this Stock Option Agreement (this “Agreement”)
      is
attached,
      AutoZone, Inc., a Nevada corporation (the “Company”),
      has
      granted to Participant an option under the Company’s 2006 Stock Option Plan (the
“Plan”)
      to
      purchase the number of shares of Stock indicated in the Grant
      Notice.

     

    ARTICLE
      I.

    

    GENERAL

     

    1.1 Defined
      Terms.
      Wherever the following terms are used in this Agreement they shall have the
      meanings specified below, unless the context clearly indicates otherwise.
      Capitalized terms not specifically defined herein shall have the meanings
      specified in the Plan and the Grant Notice.

    

    (a) “Administrator”
      shall mean the Board or the Committee responsible for conducting the general
      administration of the Plan in accordance with Article 8 of the
      Plan.

    

    (b) “Cause”
      shall mean the willful engagement by Participant in conduct which is
      demonstrably or materially injurious to the Company, monetarily or otherwise.
      For this purpose, no act or failure to act by the Participant shall be
      considered “willful” unless done, or omitted to be done, by the Participant not
      in good faith and without reasonable belief that his action or omission was
      in
      the best interest of the Company.

    

    (c) “Termination
      of Employment” shall mean the time when the employee-employer relationship
      between Participant and the Company or any Subsidiary is terminated for any
      reason, with or without cause, including, but not by way of limitation, a
      termination by resignation, discharge, death, disability or retirement; but
      excluding terminations where there is a simultaneous reemployment or continuing
      employment of Participant by the Company or any Subsidiary. The Administrator,
      in its absolute discretion, shall determine the effect of all matters and
      questions relating to Termination of Employment, including, but not by way
      of
      limitation, the question of whether a particular leave of absence constitutes
      a
      Termination of Employment; provided,
      however,
      that,
      if this Option is an Incentive Stock Option, unless otherwise determined by
      the
      Administrator in its sole discretion, a leave of absence, change in status
      from
      an employee to an independent contractor or other change in the
      employee-employer relationship shall constitute a Termination of Employment
      if,
      and to the extent that, such leave of absence, change in status or other change
      interrupts employment for purposes of Section 422(a)(2) of the Code and the
      then
      applicable regulations and revenue rulings under said Section.

    

    1.2 Incorporation
      of Terms of Plan.
      The
      Option is subject to the terms and conditions of the Plan which are incorporated
      herein by reference. In the event of any inconsistency between the Plan and
      this
      Agreement, the terms of the Plan shall control.

    

    ARTICLE
      II.

    

    GRANT
      OF OPTION

     

    2.1 Grant
      of Option.
      In
consideration
      of Participant’s past and/or continued employment with the Company or a
      Subsidiary and for other good and valuable consideration,
      effective as of the Grant Date set forth in the Grant Notice (the “Grant
      Date”),
      the
      Company irrevocably grants to Participant the Option to purchase any part or
      all
      of an aggregate of the number of shares of Stock set forth in the Grant Notice,
      upon the terms and conditions set forth in the Plan, the Grant Notice and this
      Agreement. The Option shall be a Non-Qualified Stock Option or an Incentive
      Stock Option, as designated in the Grant Notice and, in the case of an Incentive
      Stock Option, as permitted by law.

    

    2.2 Exercise
      Price.
      The
      exercise price of the shares of Stock subject to the Option shall be as set
      forth in the Grant Notice, provided, however, that the price per share of the
      shares of Stock subject to the Option shall not be less than 100% of the Fair
      Market Value of a share of Stock on the Grant Date. Notwithstanding the
      foregoing, if this Option is designated as an Incentive Stock Option and
      Participant owns (within the meaning of Section 424(d) of the Code) more than
      10% of the total combined voting power of all classes of stock of the Company
      or
      any “subsidiary corporation” of the Company or any “parent corporation” of the
      Company (each within the meaning of Section 424 of the Code), the price per
      share of the shares of Stock subject to the Option shall not be less than 110%
      of the Fair Market Value of a share of Stock on the Grant Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.3 Consideration
      to the Company.
      In
      consideration of the grant of the Option by the Company, Participant
      agrees
      to
      render faithful and efficient services to the Company and its Subsidiaries,
      as
      applicable. Nothing in the Plan, the Grant Notice or this Agreement shall confer
      upon Participant any right to continue in the employ or service of the Company
      or any Subsidiary or shall interfere with or restrict in any way the rights
      of
      the Company and its Subsidiaries, which rights are hereby expressly reserved,
      to
      discharge or terminate the services of Participant at any time for any reason
      whatsoever, with or without Cause, except to the extent expressly provided
      otherwise in a written agreement between the Company or a Subsidiary and
      Participant. 

     

    ARTICLE
      III.

     

    PERIOD
      OF EXERCISABILITY

     

    3.1 Commencement
      of Exercisability.

    

    (a) Subject
      to any limitations contained in this Stock Option Agreement, the Option shall
      become vested and be exercisable in such amounts and at such times as are set
      forth in the Grant Notice. Notwithstanding the exercise dates set forth in
      the
      Grant Notice, the Option shall become immediately exercisable on the date of
      Participant’s death.

    

    (b) No
      portion of the Option which has not become vested and exercisable as of
      Participant’s Termination of Employment shall thereafter become vested and
      exercisable.

    

    3.2 Duration
      of Exercisability.
      The
      installments provided for in the vesting schedule set forth in the Grant Notice
      are cumulative. Each such installment which becomes vested and exercisable
      pursuant to the vesting schedule set forth in the Grant Notice shall remain
      vested and exercisable until it becomes unexercisable pursuant to Section 3.3
      below; provided, however, that no Option which has not vested and become
      exercisable as of the date of a Participant’s Termination of Employment shall
      thereafter vest and become exercisable.

    

    3.3 Expiration
      of Option.
      The
      Option shall be forfeited and cancelled and may not be exercised to any extent
      by anyone after the first to occur of the following events:

    

    (a) If
      this
      Option is designated as a Non-Qualified Stock Option, the expiration of ten
      (10)
      years and one (1) day from the Grant Date;

    

    (b) If
      this
      Option is designated as an Incentive Stock Option, the tenth anniversary of
      the
      Grant Date; 

    

    (c) If
      this
      Option is designated as an Incentive Stock Option and, at the time the Option
      was granted, Participant owned (within the meaning of Section 424(d) of the
      Code) more than 10% of the total combined voting power of all classes of stock
      of the Company or any “subsidiary corporation” of the Company or any “parent
      corporation” of the Company (each within the meaning of Section 424 of the
      Code), the fifth anniversary of the Grant Date;

    

    (d) The
      expiration of thirty days from the date of Participant’s Termination of
      Employment unless such Termination of Employment occurs by reason of (i)
      Participant’s death, (ii) Participant’s retirement at normal retirement age, as
      determined under the AutoZone, Inc. Associate’s Pension Plan, as it may be
      amended from time to time (or, if such plan ceases to exist or be applicable,
      as
      determined in the sole discretion of the Administrator) (in either case,
“Retirement”), or (iii) termination by the Company for Cause;

    

    (e) The
      expiration of one year from the date of Participant’s Termination of Employment
      by reason of Participant’s death;

    

    (f) The
      commencement of business on the date of Participant’s Termination of Employment
      by the Company for Cause; and

    

    (g) The
      expiration of the term stated in the Grant Notice following Participant’s
      Termination of Employment due to Retirement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    3.4 Special
      Tax Consequences. Participant acknowledges that, to the extent that the
      aggregate Fair Market Value (determined as of the time the Option is granted)
      of
      all shares of Stock with respect to which Incentive Stock Options, including
      the
      Option, are exercisable for the first time by Participant in any calendar year
      exceeds $100,000, the Option and such other options shall instead constitute
      Non-Qualified Stock Options to the extent necessary to comply with the
      limitations imposed by Section 422(d) of the Code. Participant further
      acknowledges that the rule set forth in the preceding sentence shall be applied
      by taking the Option and other Incentive Stock Options into account in the
      order
      in which they were granted, as determined under Section 422(d) of the Code
      and
      the Treasury Regulations there under.

     

    ARTICLE
      IV.

    

    EXERCISE
      OF OPTION

    

    4.1 Person
      Eligible to Exercise.
      Except
      as provided in Section 5.2(b) below, during the lifetime of Participant, only
      Participant may exercise the Option or any portion thereof. After the death
      of
      Participant, any exercisable portion of the Option may, prior to the time when
      the Option becomes unexercisable under Section 3.3 above, be exercised by
      Participant’s personal representative or by any person empowered to do so under
      the deceased Participant’s will or under then-applicable laws of descent and
      distribution.

    

    4.2 Partial
      Exercise.
      Any
      exercisable portion of the Option or the entire Option, if then wholly
      exercisable, may be exercised in whole or in part at any time prior to the
      time
      when the Option or portion thereof becomes unexercisable under Section 3.3
      above.

    

    4.3 Manner
      of Exercise.
      The
      Option, or any exercisable portion thereof, may be exercised solely by delivery
      to the Secretary of the Company (or any third party administrator or other
      person or entity designated by the Administrator) of each of the following
      prior
      to the time when the Option or such portion thereof becomes unexercisable under
      Section 3.3 above:

    

    (a) An
      exercise notice in a form specified by the Administrator, stating that the
      Option or portion thereof is thereby exercised, such notice complying with
      all
      applicable rules established by the Administrator; 

     

    (b) The
      receipt by the Company of full payment for the shares of Stock with respect
      to
      which the Option or portion thereof is exercised, including payment of any
      applicable withholding taxes, which may be in one or more of the forms of
      consideration permitted under Section 4.4 below; 

    

    (c) Any
      other
      written representations as may be required in the Administrator’s sole
      discretion to evidence compliance with any applicable law, rule or regulation;
      and

    

    (d) If
      the
      Option or portion thereof is exercised pursuant to Section 4.1 above by any
      person or persons other than Participant, appropriate proof of the right of
      such
      person or persons to exercise the Option, as determined in the sole discretion
      of the Administrator.

    

    Notwithstanding
      any of the foregoing, the Company shall have the right to specify all conditions
      of the manner of exercise, which conditions may vary and which may be subject
      to
      change from time to time in the sole discretion of the
      Administrator.

    

    4.4 Method
      of Payment. The
      Administrator shall determine the method(s) by which the exercise price of
      the
      Option may be paid including, without limitation: (a) cash, (b) shares of Stock
      having a Fair Market Value on the date of delivery equal to the aggregate
      exercise price of the Option or exercised portion thereof, including shares
      of
      Stock that would otherwise be issuable or transferable upon exercise of the
      Option, and/or (c) other property acceptable to the Administrator (including
      through the delivery of a notice that the Participant has placed a market sell
      order with a broker with respect to shares of Stock then issuable upon exercise
      of the Option, and that the broker has been directed to pay a sufficient portion
      of the net proceeds of the sale to the Company in satisfaction of the Option
      exercise price; provided that payment of such proceeds is then made to the
      Company, at such time as may be required by the Company, but not later than
      the
      settlement of such sale), and the methods by which shares of Stock shall be
      delivered or deemed to be delivered to Participants.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4.5 Conditions
      to Issuance of Shares of Stock.
      The
      shares of Stock deliverable upon the exercise of the Option, or any portion
      thereof, may be either previously authorized but unissued shares of Stock or
      issued shares of Stock which have then been reacquired by the Company. The
      Company shall not be required to issue or deliver any shares of Stock
purchased
      upon the exercise of the Option or portion thereof prior to fulfillment of
      all
      of the following conditions:

    

    (a) The
      admission of such shares of Stock to listing on all stock exchanges on which
      such Stock is then listed;

    

    (b) The
      completion of any registration or other qualification of such shares of Stock
      under any state or federal law or under rulings or regulations of the Securities
      and Exchange Commission or of any other governmental regulatory body, which
      the
      Administrator shall, in its sole discretion, deem necessary or
      advisable;

    

    (c) The
      obtaining of any approval or other clearance from any state or federal
      governmental agency which the Administrator shall, in its sole discretion,
      determine to be necessary or advisable;

    

    (d) The
      receipt by the Company of full payment for such shares of Stock, including
      payment of any applicable withholding tax, which may be in one or more of the
      forms of consideration permitted under Section 4.4 above; and

    

    (e) The
      lapse
      of such reasonable period of time following the exercise of the Option as the
      Administrator may from time to time establish for reasons of administrative
      convenience.

    

    4.6 Rights
      as Stockholder.
      The
      holder of the Option shall not be, nor have any of the rights or privileges
      of,
      a stockholder of the Company in respect of any shares of Stock purchasable
      upon
      the exercise of any part of the Option unless and until such shares of Stock
      shall have been issued by the Company to such holder (as evidenced by the
      appropriate entry on the books of the Company or of a duly authorized transfer
      agent of the Company). No adjustment will be made for a dividend or other right
      for which the record date is prior to the date the
      shares of Stock are issued, except as provided in Section 7.1 of the Plan.
      

     

    ARTICLE
      V.

    

    OTHER
      PROVISIONS

    

    5.1 Administration.
      The
      Administrator shall have the power to interpret the Plan, the Grant Notice
      and
      this Option Agreement and to adopt such rules for the administration,
      interpretation and application of the Plan, the Grant Notice and this Option
      Agreement as are consistent therewith and to interpret, amend or revoke any
      such
      rules. All actions taken and all interpretations and determinations made by
      the
      Administrator in good faith shall be final and binding upon Participant, the
      Company and all other interested persons. No member of the Committee or the
      Board or any delegate thereof shall be personally liable for any action,
      determination or interpretation made in good faith with respect to the Plan,
      the
      Grant Notice or this Option Agreement.

    

    5.2 Option
      Not Transferable.

    

    (a) Subject
      to Section 5.2(b), no right or interest of Participant in the Option may be
      pledged, encumbered, or hypothecated to or in favor of any party other than
      the
      Company or a Subsidiary, or shall be subject to any lien, obligation, or
      liability of Participant to any other party other than the Company or a
      Subsidiary. Except as otherwise provided by the Administrator, the Option shall
      not be assigned, transferred, or otherwise disposed of by Participant other
      than
      by will or the laws of descent and distribution.

    

    (b) After
      the
      death of Participant, any exercisable portion of the Option may, prior to the
      time when the Option becomes unexercisable under Section 3.3 above, be exercised
      by Participant’s personal representative or by any person empowered to do so
      under the deceased Participant’s will or under then-applicable laws of descent
      and distribution.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.3 Adjustments.
      Participant acknowledges that the Option is subject to modification and
      termination upon the occurrence of certain events as provided in this Agreement
      and in Article 7 of the Plan.

     

    5.4 Notices.
      Any
      notice to be given in connection with the this Agreement to the Company shall
      be
      addressed to the Company in care of the Secretary of the Company at the address
      given beneath the signature of the Company’s authorized officer on the Grant
      Notice, and any notice to be given to Participant shall be addressed to
      Participant at the most current address on file with the Company’s Human
      Resources department. By a notice given pursuant to this Section 5.4, either
      party may hereafter designate a different address for notices to be given to
      that party. Any notice which is required to be given to Participant shall,
      if
      Participant is then deceased, be given to the person entitled to exercise his
      or
      her Option pursuant to Section 4.1 above. Any notice shall be deemed duly given
      on the date hand-delivered, on the day following deposit with a reputable
      overnight carrier, or two days after such notice is sent by certified mail
      (return receipt requested), in any case, to the addresses specified
      herein.

    

    5.5 Captions.
      Captions are provided herein for convenience only and are not to serve as a
      basis for interpretation or construction of this Agreement.

    

    5.6 Governing
      Law; Severability.
      The
      laws of the State of Nevada shall govern the interpretation, validity,
      administration, enforcement and performance of the terms of this Agreement
      without reference to the conflicts of laws principles thereof.

    

    5.7 Conformity
      to Securities Laws.
      Participant acknowledges that the Plan and the Option are intended to conform
      to
      the extent necessary with all applicable federal, state, local and foreign
      securities laws and any and all official interpretations, regulations and rules
      promulgated there under. Notwithstanding anything herein to the contrary, the
      Plan shall be administered, and the Option is granted and may be exercised,
      only
      in such a manner as conforms to such laws, rules and regulations. To the extent
      permitted by applicable law, the Plan and the Option shall be deemed amended
      to
      the extent necessary to conform to such laws, rules and
      regulations.

    

    

    5.8 Amendments,
      Suspension and Termination.
      Participant acknowledges that the Plan and the Option are subject to amendment,
      suspension and/or termination as provided in Article 10 of the
      Plan.

    

    5.9 Successors
      and Assigns.
      The
      Company may assign any of its rights under this Agreement to single or multiple
      assignees, and this Agreement shall inure to the benefit of the successors
      and
      assigns of the Company. Subject to the restrictions on transfer herein set
      forth
      in Section 5.2 above, this Agreement shall be binding upon Participant and
      his
      or her heirs, executors, administrators, successors and assigns.

    

    5.10 Notification
      of Disposition.
      If this
      Option is designated as an Incentive Stock Option, Participant shall give prompt
      notice to the Company of any disposition or other transfer of any shares of
      Stock acquired under this Agreement if such disposition or transfer is made
      (a)
      within two years after the applicable Grant Date, or (b) within one year after
      Participant exercises the Option. Such notice shall specify the date of such
      disposition or other transfer and the amount realized, in cash, other property,
      assumption of indebtedness or other consideration, by Participant in such
      disposition or other transfer.

    

    5.11 Limitations
      Applicable to Section 16 Persons.
      Notwithstanding any other provision of the Plan, the Grant Notice or this
      Agreement, if Participant is subject to Section 16 of the Exchange Act, then
      the
      Plan, the Grant notice and this Agreement shall be subject to any additional
      limitations set forth in any applicable exemptive rule under Section 16 of
      the
      Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that
      are requirements for the application of such exemptive rule. To the extent
      permitted by applicable law, this Agreement shall be deemed amended to the
      extent necessary to conform to such applicable exemptive rule.

    

    5.12 Not
      a
      Contract of Employment.
      Nothing
      in this Agreement or in the Plan shall confer upon Participant any right to
      continue to serve as an employee or other service provider of the Company or
      any
      of its Subsidiaries.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.13 Entire
      Agreement.
      The
      Plan, the Grant Notice and this Agreement (including all Exhibits thereto)
      constitute the entire agreement of the parties and supersede in their entirety
      all prior undertakings and agreements of the Company and Participant with
      respect to the subject matter hereof.

    

    5.14 Section
      409A.
      Without
      limiting the generality of Section 1.2 above, Section 11.14 of the Plan
      regarding Code Section 409A is hereby expressly incorporated by reference by
      reference into this Agreement.

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