Document:

Form of Stock Option Agreement by & between the registrant & David M. Gallatin

 Exhibit 10.18 
  
 ALPHASMART, INC.  
  
 STOCK OPTION AGREEMENT 
  
 RECITALS 
  
 A. The Board has adopted the Plan for the purpose of retaining the services of selected Key Employees and Consultants in the service of the Company or
Subsidiary. 
  
 B. Optionee is to render valuable services to the
Company or Subsidiary, and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Company’s grant of an option to Optionee. 
  
 C. All capitalized terms in this Agreement shall have the meaning assigned to
them in the attached Appendix. 
  
 NOW,
THEREFORE, it is hereby agreed as follows: 
  
 1. Grant of Option. The Company hereby grants to Optionee, as of the Grant Date, an option to purchase up to the number of shares of Common Stock specified in the Grant Notice. The Option Shares shall be purchasable from time
to time, during the option term specified in Section 2, at the Exercise Price. 
  
 2. Option Period. This option shall have a term of ten (10) years measured from the Grant Date and shall accordingly expire
at the close of business on the Expiration Date, unless sooner terminated in accordance with Section 5 or 6. 
  
 3. Limited Transferability. 
  
 (a) This option shall be neither transferable nor assignable by Optionee other than by will or the laws of descent and distribution
following Optionee’s death, and may be exercised during Optionee’s lifetime only by Optionee or by Optionee’s guardian or legal representative. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of
this option, and this option shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the
transferred option subject to all the terms and conditions of this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Section 5, be exercised following Optionee’s death. 
  
 (b) If this option is designated a Non-Statutory Stock
Option in the Grant Notice, then this option may be assigned in whole or in part during Optionee’s lifetime to one or more members of Optionee’s family or to a trust established for the exclusive benefit of one or more such family members
or to Optionee’s former spouse, to the extent such assignment is in connection with the Optionee’s estate plan or pursuant to a domestic relations order. The 

  

 
assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the option pursuant to such assignment. The terms
applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment. 
  
 4. Dates of Exercise. This option shall become exercisable for the Option Shares in one or more installments as specified in
the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option
term under Section 5 or 6. 
  
 5. Cessation
of Service. The option term specified in Section 2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: 
  
 (a) Should Optionee die while holding this option, then the
personal representative of Optionee’s estate or the person or persons to whom the option is transferred pursuant to Optionee’s will or the laws of descent and distribution shall have the right to exercise this option. However, if Optionee
has designated one or more beneficiaries of this option, then those persons shall have the exclusive right to exercise this option following Optionee’s death. Any such right to exercise this option shall lapse, and this option shall cease to be
outstanding, upon the earlier of (i) the expiration of the six (6)-month period measured from the date of Optionee’s death, or (ii) the Expiration Date. 
  
 (b) Should Optionee cease Service by reason of Permanent Disability while holding this option, then Optionee
shall have a period of six (6) months (commencing with the date of such cessation of Service) during which to exercise this option. In no event shall this option be exercisable at any time after the Expiration Date. 
  
 (c) Should Optionee cease Service by reason of the
retirement policies of the Company or a Subsidiary while holding this option, then Optionee shall have a period of six (6) months (commencing with the date of such cessation of Service) during which to exercise this option. In no event shall this
option be exercisable at any time after the Expiration Date. 
  
 (d) Should Optionee cease to remain in Service for any reason (other than death, retirement, Permanent Disability or Cause) while holding this option, then Optionee shall have a period of three (3) months (commencing
with the date of such cessation of Service), during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date. 
  
 (e) In the event of a termination of employment due to death or disability as described in Sections 5(a) or
(b) or upon retirement described in Section 5(c) if the Optionee has attained age 65 prior to retirement, any portion of the Option not then vested will nevertheless become fully vested and exercisable as of the day prior to the Optionee’s
death, disability or retirement. In the event vesting is accelerated pursuant to this Section 5(e), the shares subject to this Option shall be treated as Non-Statutory Stock Option shares, to the extent the accelerated portion of this Option exceeds
the dollar limitation in Section 19(d). 
  

 2. 

 (f) Should Optionee’s Service be terminated for Cause, then this option shall
terminate immediately and cease to remain outstanding. 
  
 (g) During the limited period of post-Service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares in which Optionee is, at the time of Optionee’s cessation of Service, vested
pursuant to the Vesting Schedule specified in the Grant Notice or the special vesting acceleration provisions of Sections 5(e) and 6. Upon the expiration of such limited exercise period or (if earlier) upon the Expiration Date, this option shall
terminate and cease to be outstanding for any vested Option Shares for which the option has not been exercised. To the extent Optionee is not vested in one or more Option Shares at the time of Optionee’s cessation of Service, this option shall
immediately terminate and cease to be outstanding with respect to those shares. 
  
 6. Accelerated Vesting. 
  
 (a) In the event of any Change in Control, the Option Shares at the time subject to this option but not otherwise vested shall
automatically vest in full so that this option shall, immediately prior to the effective date of the Change in Control, become exercisable for all of the Option Shares as fully-vested shares and may be exercised for any or all of those Option Shares
as vested shares. However, the Option Shares shall not vest on such an accelerated basis if and to the extent: (i) this option is assumed by the successor corporation (or parent thereof) in the Change in Control and the Company’s
repurchase rights with respect to the unvested Option Shares are assigned to such successor corporation (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor corporation which preserves the spread
existing on the unvested Option Shares at the time of the Change in Control (the excess of the Market Value of those Option Shares over the Exercise Price payable for such shares) and provides for subsequent payout in accordance with the same
Vesting Schedule applicable to those unvested Option Shares as set forth in this Option Agreement. 
  
 (b) Immediately following the Change in Control, this option shall terminate and cease to be outstanding, except to the extent assumed by
the successor corporation (or parent thereof) in connection with the Change in Control. 
  
 (c) If this option is assumed in connection with a Change in Control, then this option shall be appropriately adjusted, immediately after
such Change in Control, to apply to the number and class of securities which would have been issuable to Optionee in consummation of such Change in Control had the option been exercised immediately prior to such Change in Control, and appropriate
adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the extent the actual holders of the Company’s outstanding Common Stock receive cash consideration for their Common
Stock in consummation of the Change in Control, the successor corporation may, in connection with the assumption of this option, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid
per share of Common Stock in such Change in Control. 
  

 3. 

 (d) Upon an Involuntary Termination of Optionee’s Service within eighteen (18)
months following a Change in Control in which this option is assumed or replaced and the Company’s repurchase rights with respect to the unvested Option Shares are assigned, all the Option Shares at the time subject to this option but not
otherwise vested shall automatically vest and the Company’s repurchase rights with respect to those shares shall terminate so that this option shall immediately become exercisable for all such Option Shares as fully-vested shares of Common
Stock and may be exercised for any or all of those shares at any time prior to the earlier of (i) the Expiration Date, or (ii) the expiration of the three (3)-month period measured from the date of the Involuntary Termination. 
  
 7. Adjustment in Option Shares. Should any
change be made to the Common Stock by reason of any stock dividend, recapitalization, reorganization, merger, consolidation, split-up, combination, or exchange of shares, or rights offering to purchase Common Stock at a price substantially below
Market Value, or of any similar change affecting the Common Stock, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this option, and (ii) the Exercise Price, in order to reflect such change and
thereby preclude a dilution or enlargement of benefits hereunder. 
  
 8. Stockholder Rights. The holder of this option shall not have any stockholder rights with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and
become the record holder of the purchased shares. 
  
 9. Manner of Exercising Option. 
  
 (a) In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions:

  
 (i) Execute and deliver to the Company a
Purchase Agreement for the Option Shares for which the option is exercised. 
  
 (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms: 
  
 (A) cash or check made payable to the Company; or 
  
 Should the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised,
then the Exercise Price may also be paid as follows: 
  
 (B) in shares of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes and valued at Market
Value on the Exercise Date; or 
  

 4. 

 (C) to the extent the option is exercised for vested Option Shares, through a special
sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall concurrently provide irrevocable instructions (a) to a Company-designated brokerage firm to effect the immediate sale of the
purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable federal, state and local income and
employment taxes required to be withheld by the Company by reason of such exercise, and (b) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 
  
 Except to the extent the sale and remittance procedure is
utilized in connection with the option exercise, payment of the Exercise Price must accompany the Purchase Agreement delivered to the Company in connection with the option exercise. 
  
 (b) As soon as practical after the Exercise Date, the Company shall issue to or on behalf of Optionee (or
any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto. 
  
 (c) In no event may this option be exercised for any fractional shares. 
  
 10. REPURCHASE RIGHTS. ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF THIS OPTION SHALL BE
SUBJECT TO CERTAIN RIGHTS OF THE COMPANY AND ITS ASSIGNS TO REPURCHASE THOSE SHARES IN ACCORDANCE WITH THE TERMS SPECIFIED IN THE PURCHASE AGREEMENT. 
  
 11. Lock-Up. 
  
 (a) Optionee hereby agrees that Optionee shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any Common Stock (or other securities) of the Company or enter into any swap, hedging or
other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Common Stock (or other securities) of the Company held by Optionee (other than those included in the registration) for a period
specified by the representative of the underwriters of Common Stock (or other securities) of the Company not to exceed 180 days following the effective date of any registration statement of the Company filed under the Securities Act. 
  
 (b) Optionee agrees to execute and deliver such other
agreements as may be reasonably requested by the Company or the underwriter which are consistent with the foregoing or which are necessary to give further effect thereto. In addition, if requested by the 

  

 5. 

 
Company or the representative of the underwriters of Common Stock (or other securities) of the Company, Optionee shall provide, within ten (10) days of such
request, such information as may be required by the Company or such representative in connection with the completion of any public offering of the Company’s securities pursuant to a registration statement filed under the Securities Act of 1933,
as amended. The obligations described in this Section 11 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to
a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing
restriction until the end of said 180-day period. Optionee agrees that any transferee of the Option or shares acquired pursuant to the Option shall be bound by this Section 11. 
  
 12. Company’s Right of First Refusal. Before any Option Shares held by Optionee or any
transferee (either being sometimes referred to herein as the “Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal to purchase
the Option Shares on the terms and conditions set forth in this Section 12 (the “Right of First Refusal”). 
  
 (a) Notice of Proposed Transfer. The Holder of the Option Shares shall deliver to the Company a written notice (the
“Notice”) stating: (i) the Holder’s bona fide intention to sell or otherwise transfer such Option Shares; (ii) the name of each proposed purchaser or other transferee (“Proposed Transferee”); (iii) the number of Option
Shares to be transferred to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Option Shares (the “Offered Price”), and the Holder shall offer the Option Shares
at the Offered Price to the Company or its assignee(s). 
  
 (b) Exercise of Right of First Refusal. At any time within 30 days after receipt of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not
less than all, of the Option Shares proposed to be transferred to any one or more of the Proposed Transferees, at the purchase price determined in accordance with subsection (c) below. 
  
 (c) Purchase Price. The purchase price (“Purchase Price”) for the Option Shares purchased
by the Company or its assignee(s) under this Section shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of
the Company in good faith. 
  
 (d)
Payment. Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of
repurchase by an assignee, to the assignee), or by any combination thereof within 30 days after receipt of the Notice or in the manner and at the times set forth in the Notice. 
  

 6. 

 (e) Holder’s Right to Transfer. If all of the Option Shares proposed in the
Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Option Shares to that Proposed Transferee at the Offered
Price or at a higher price, provided that such sale or other transfer is consummated within 120 days after the date of the Notice, that any such sale or other transfer is effected in accordance with any applicable securities laws and that the
Proposed Transferee agrees in writing that the provisions of this Section 12 shall continue to apply to the Option Shares in the hands of such Proposed Transferee. If the Option Shares described in the Notice are not transferred to the Proposed
Transferee within such period, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal before any Option Shares held by the Holder may be sold or otherwise transferred.

  
 (f) Exception for Certain Family
Transfers. Anything to the contrary contained in this Section 12 notwithstanding, the transfer of any or all of the Option Shares during the Optionee’s lifetime or on the Optionee’s death by will or the laws of descent and distribution
to the Optionee’s immediate family or a trust for the benefit of the Optionee’s immediate family shall be exempt from the provisions of this Section 12. “Immediate Family” as used herein shall mean spouse, lineal descendant or
antecedent, father, mother, brother or sister. In such case, the transferee or other recipient shall receive and hold the Option Shares so transferred subject to the provisions of this Section 12, and there shall be no further transfer of such
Option Shares except in accordance with the terms of this Section. 
  
 (g) Termination of Right of First Refusal. The Right of First Refusal shall terminate as to any Option Shares upon the earlier of (i) the first sale of Common Stock of the Company to the general public, or (ii)
a Change in Control in which the successor corporation has equity securities that are publicly traded. 
  
 13. Compliance with Laws and Regulations. 
  
 (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to
compliance by the Company and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange (or the Nasdaq National Market, if applicable) on which the Common Stock may be listed for
trading at the time of such exercise and issuance. 
  
 (b) The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any
liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use its best efforts to obtain all such approvals. 
  
 14. Successors and Assigns. Except to the
extent otherwise provided in Sections 3 and 6, the provisions of this Agreement shall inure to the benefit of, and be binding 

  

 7. 

 
upon, the Company and its successors and assigns and Optionee, Optionee’s assigns and the legal representatives, heirs and legatees of Optionee’s
estate. 
  
 15. Notices. Any notice
required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Secretary of the Company. Any notice required to be given or delivered to Optionee shall be in writing and addressed to
Optionee at the address indicated below Optionee’s signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be
notified. 
  
 16. Construction.
This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Committee with respect to any question or issue arising under the
Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 
  
 17. Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed, construed and
administered in accordance with the laws of the State of California. 
  
 18. Stockholder Approval. If the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may be issued under the Plan as last approved by the
stockholders, then this option shall be void with respect to such excess shares, unless stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the
provisions of the Plan. 
  
 19. Additional
Terms Applicable to an Incentive Stock Option. In the event this option is designated an Incentive Stock Option in the Grant Notice, the following terms and conditions shall also apply to the grant: 
  
 (a) No disposition of any shares of Common Stock received
through exercise of the Option may be made by Optionee within two (2) years of the Grant Date nor within one (1) year of the exercise of any such shares by Optionee. In the event of a disposition prior to such one (1) year period, the Option shall
not be forfeited, but the disposed shares shall be treated as if acquired pursuant to a Non-Statutory Stock Option. 
  
 (b) This option shall cease to qualify for favorable tax treatment as an Incentive Stock Option if (and to the extent) this option is
exercised for one or more Option Shares: (i) more than three (3) months after the date Optionee ceases to be a Key Employee for any reason other than death or Permanent Disability, (ii) more than twelve (12) months after the date Optionee ceases to
be an Employee by reason of Permanent Disability, or (iii) more than three (3) months after Optionee has been on leave of absence for more than 90 days, unless Optionee’s reemployment rights are guaranteed by statute or contract. 
  

 8. 

 (c) If Optionee owns more than 10% of the total combined voting power of all classes of
stock of the Company or a Subsidiary, the Exercise Price of the Option must be a least 110% of the Market Value of the Common Stock (determined as of the Grant Date) subject to the Option and the Option herein shall expire on the fifth
(5th) anniversary of the Grant Date. 
  
 (d) This option shall not become exercisable in the calendar year in which granted if (and to the extent)
the aggregate Market Value (determined at the Grant Date) of the Common Stock for which this option would otherwise first become exercisable in such calendar year would, when added to the aggregate value (determined as of the respective date or
dates of grant) of the Common Stock and any other securities for which one or more other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Company or any Parent or Subsidiary) first
become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate (the “$100,000 Limit”). To the extent the exercisability of this option is deferred by reason of the $100,000 Limit, the
deferred portion shall become exercisable in the first calendar year or years thereafter in which the $100,000 Limit would not be exceeded. The deferral of the exercise of the option afforded by this Section 19 will cease and the option will become
immediately exercisable as a Non-Statutory Option for the deferred portion of the Option Shares (i) immediately prior to the effective date of a Corporate Transaction in which this option is not to be assumed, or (ii) upon the date Optionee ceases
Service. 
  

	 OPTIONEE
	 	 	 	 ALPHASMART, INC.

	  	 	 	 	  
	
	 	 	

	 Signature
	 	 	 	 By

	 	 	 	 	 
	 	 	 	 	 
	
	 	 	

	 Print Name
	 	 	 	 Title

	 	 	 	 	 
	 	 	 	 	 
	
	 	 	 	 
			
	 	 	 	 	 
	
	 	 	 	 
	 Residence Address
	 	 	 	 

  

 9. 

 APPENDIX 
  
 The following definitions shall be in effect under the Agreement: 
  
 A. Agreement shall mean this Stock Option Agreement.

  
 B. Board shall mean the Company’s Board of
Directors. 
  
 C. Cause shall include termination
for reason of (i) Optionee’s conviction for, or plea of nolo contendere to, a felony, (ii) Optionee’s commission of an act involving self-dealing, fraud or personal profit materially injurious to the Company, (iii) Optionee’s
commission of an act of willful misconduct or gross negligence in the conduct of his or her employment duties for the Company, (iv) habitual absenteeism or tardiness on the part of Optionee with respect to his or her employment with the Company, (v)
Optionee’s breach or violation of any material internal policies or rules of the Company, including those rules adopted by the Company concerning the purchase and sale of the Company’s Common Stock or other securities by employees of the
Company, and (vi) Optionee’s breach of any material provision of any written employment agreement between Optionee and the Company. The Committee in its discretion shall determine whether a termination was made for Cause. 
  
 D. Change in Control shall mean either of the following
stockholder-approved transactions to which the Company is a party: 
  
 (i) The Company is merged, consolidated or reorganized into or with another corporation, or other entity and, as a result thereof, less than 50% of the outstanding stock or other capital interests of the surviving,
resulting or acquiring corporation, person, or other entity is owned, in the aggregate, by the stockholder or stockholders of the Company immediately prior to such merger, consolidation or reorganization; or 
  
 (ii) The consummation of the sale or disposition by the
Company of all or substantially all of the Company’s assets. 
  
 E. Code shall mean the Internal Revenue Code of 1986, as amended. 
  
 F. Committee shall mean either the Board or a committee of the Board acting in its capacity as administrator of the Plan. 
  
 G. Common Stock shall mean the Company’s common stock. 
  
 H. Company shall mean AlphaSmart, Inc., a California
corporation, and any successor corporation to all or substantially all of the assets or voting stock of AlphaSmart, Inc. which shall, by appropriate action, assume this option. 
  
 I. Consultant shall mean an advisor or independent consultant to the Company who, in the opinion of the
committee, is in a position to make significant contributions to the Company 

  

 A-1. 

 
or Subsidiary. A non-employee director on the Company’s Board of Directors shall be considered a Consultant eligible to receive options under the Plan.

  
 J. 1934 Act shall mean the Securities Exchange
Act of 1934, as amended. 
  
 K. Exercise Date shall
mean the date on which the option shall have been exercised in accordance with Section 9 of the Agreement. 
  
 L. Exercise Price shall mean the exercise price payable per Option Share as specified in the Grant Notice. 
  
 M. Expiration Date shall mean the date on which the option
expires as specified in the Grant Notice. 
  
 N. Grant
Date shall mean the date of grant of the option as specified in the Grant Notice. 
  
 O. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby. 
  
 P. Incentive Stock Option shall mean an option which satisfies
the requirements of Code Section 422. 
  
 Q. Involuntary
Termination shall mean any purported termination of the Optionee by the Company which is not effected for Cause. 
  
 R. Key Employee shall mean an individual who is in the employ of the Company or any Subsidiary regularly employed on a full-time basis,
including an officer or director if he or she is such an employee who, in the opinion of the Committee, is in a position to make significant contributions to the Company or Subsidiary. 
  
 S. Market Value as applied to a specific date and unless otherwise specifically defined in the text of this
Agreement, shall mean (a) the average of the high and low sale prices of the Common Stock for such date as reported on the National Association of Securities Dealers Automated Quotation (“NASDAQ”) system (or, if no such sales
were reported for such date, on the next preceding date for which such sales were reported), or (b) if the price of Common Stock is not reported on the NASDAQ system or any other national exchange, the fair market value as determined in good faith
by the Committee. 
  
 T. Non-Statutory Stock Option
shall mean an option not intended to satisfy the requirements of Code Section 422. 
  
 U. Option Shares shall mean the number of shares of Common Stock subject to the option. 
  

 A-2. 

 V. Optionee shall mean the person to whom the option is granted as specified in the Grant
Notice. 
  
 W. Parent shall mean any corporation
(other than the Company) in an unbroken chain of corporations ending with the Company, provided each corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing 50% or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 X. Plan shall mean the Company’s 1998 Stock Option Plan as from time to time amended. 
  
 Y. Permanent Disability shall mean Optionee is unable by reason of accident or illness (including metal illness) to perform the material
duties of this regular position with the Company and is not expected to recover from his or her disability within a period of six (6) months from the commencement of the disability. If at any time Optionee is claimed to be permanently disabled, a
physician acceptable to both Optionee and the Committee (which acceptances shall not be unreasonably withheld) shall be retained by the Committee and shall examine Optionee. Optionee shall cooperate fully with the physician. If the physician
determines that Optionee is permanently disabled, the physician shall deliver to the Committee a certificate certifying both that Optionee is permanently disabled and the date upon which the condition of permanent disability commenced. The
determination of the physician shall be conclusive. For purposes of Options that are Incentive Stock Options, Permanent Disability shall be interpreted consistent with Code Section 22(e)(3). 
  
 Z. Purchase Agreement shall mean the stock purchase agreement
in substantially the form of Exhibit B to the Grant Notice. 
  
 AA. Service shall mean the Optionee’s performance of services for the Company or any Subsidiary in the capacity of an Employee, a non-employee Board member or as a Consultant. 
  
 BB. Stock Exchange shall mean the American Stock Exchange or
the New York Stock Exchange. 
  
 CC. Subsidiary
shall mean any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 DD. Vesting Schedule shall mean the vesting schedule specified in the Grant Notice pursuant to which the Optionee is to vest in the Option
Shares in a series of installments over his or her period of Service. 
  

 A-3.Shareholders agreement

 Exhibit 10.19 
  
 STOCKHOLDERS’ AGREEMENT 
  

This Stockholders’ Agreement (the “Agreement”) is made as of the 4th day of June 1999, by and among Intelligent Peripheral
Devices, Inc., a California corporation (the “Company”), Ketan Kothari, Manish Kothari and Joseph Barrus (each, a “Founder” and, collectively, the “Founders”), and the investors listed on the
signature page hereto (each of which is referred to herein as an “Investor” or, collectively, as the “Investors”). 
  
 WHEREAS, the Company and the Investors are parties to the Recapitalization Agreement of even date herewith (the “Recapitalization
Agreement”), pursuant to which the Investors are purchasing shares of the Company’s Series A Preferred Stock; 
  
 WHEREAS, the Founders are the beneficial owners of the number of shares of Common Stock of the Company set forth opposite their name on Schedule A
hereto; and 
  
 WHEREAS, the Founders and the Investors wish to
provide further inducement to the Investors purchasing the Series A Preferred Stock; 
  
 NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 
  
 1. Definitions. 
  
 (a) “Capital Stock” shall mean (i) the Common Stock and (ii) shares of Common Stock issued or issuable upon conversion of
the Preferred Stock. 
  
 (b) “Common
Stock” shall mean shares of the Company’s outstanding Common Stock. 
  
 (c) “Indebtedness” has the meaning set forth in the Recapitalization Agreement. 
  
 (d) “Option Plan” means the Company’s
1998 Option Plan, as amended and restated on the date hereof. 
  
 (e) “Owner” shall include the Founders and any permitted transferees of the Stock pursuant to Section 2.1 hereof. 
  
 (f) “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a government entity or any department, agency or political subdivision thereof. 
  
 (g) “Preferred Stock” shall mean shares of
the Company’s outstanding Series A Preferred Stock. 
  

 (h) “Public Offering” means the sale of Common Stock to the public
pursuant to an offering registered under the Securities Act of 1933, as amended. 
  
 (i) “Qualified Public Offering” has the meaning set forth in the Company’s Amended and Restated Articles of
Incorporation. 
  
 (j) “Sale of the
Company” means a sale of all or substantially all of the Company’s assets or a sale of all or substantially all of the Company’s outstanding equity securities (whether by merger, sale, recapitalization, consolidation,
reorganization, combination or otherwise). 
  
 (k) “Stock” shall mean shares of the Common Stock and any other equity securities of the Company now owned or subsequently acquired by any Founder. 
  
 (l) “Subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership,
association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination
thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of
limited liability company, partnership, association or other business entity gains or losses or shall be or control the managing general partner of such limited liability company, partnership, association or other business entity. 
  
 2. Right of First Refusal. 
  
 2.1 Restriction on Transfer. The Founders shall not
transfer, assign, encumber or otherwise make the subject of disposition any Stock in contravention of the Company’s First Refusal Right granted under Section 2.3 of this Agreement. Such restrictions on transfer, however, shall not be
applicable to: (i) any gratuitous transfer of the Stock to any spouse or member of a Founder’s immediate family (including adopted children) or grandchildren, or to a custodian, trustee (including a trustee of a voting trust), executor or other
fiduciary for the account of his spouse or members of his immediate family or grandchildren, or to a trust for himself, or a charitable remainder trust, provided and only if the Owner obtains the Company’s prior written consent to such
transfer; (ii) a transfer of title to the Stock effected pursuant to the Owner’s will or the laws of intestate succession; (iii) a transfer to the Company in pledge as security for any purchase-money indebtedness incurred by the Owner in
connection with the acquisition of the Stock; or (iv) up to fifteen percent (15%) of the Stock of each Founder, provided that, in each case, each such transferee or assignee, prior to the completion of the sale, transfer or assignment
shall have executed documents assuming the obligations of the Founder under this Agreement with respect to the transferred securities. 
  

 2 

 2.2 Transferee Obligations. Each person (other than the Company) to whom the Stock
is transferred by means of one of the permitted transfers specified in Section 2.1 must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Agreement
and that the transferred shares are subject to the Company’s First Refusal Right granted under Section 2.3 of this Agreement and other restrictions of this Agreement to the same extent such Stock would be so subject if retained by the Owner.

  
 2.3 Grant. The Company is hereby
granted the right of first refusal (the “First Refusal Right”), exercisable in connection with any proposed transfer of the Stock. For purposes of this Section 2, the term “transfer” shall include any sale,
assignment, pledge, encumbrance or other disposition for value of the Stock intended to be made by an Owner, but shall not include any of the permitted transfers under Section 2.1. 
  
 2.4 Notice of Intended Disposition. If an Owner desires to accept a bona fide offer from a third
party (the “Prospective Transferee”) for any or all of the Stock (the stock subject to such offer to be hereinafter called the “Target Stock”), the Owner shall promptly deliver to the Secretary of the Company
written notice (the “Disposition Notice”) of the terms and conditions of the offer, including the purchase price and the identity of the third-party offeror. 
  
 2.5 Exercise of Right. The Company shall, for a period of forty (40) days following receipt of the
Disposition Notice, have the right to repurchase any or all of the Target Stock specified in the Disposition Notice upon substantially the same terms and conditions specified therein. Such right shall be exercisable by delivery of written notice
(the “Exercise Notice”) to the Owner prior to the expiration of the thirty (30) day exercise period. If such right is exercised with respect to all the Target Stock specified in the Disposition Notice, then the Company shall effect
the repurchase of the Target Stock, including payment of the purchase price, not more than ten (10) business days after delivery of the Exercise Notice; and at such time the Owner shall deliver to the Company the certificates representing the Target
Stock to be repurchased, each certificate to be properly endorsed for transfer. 
  
 2.6 Grant of Secondary Refusal Right. If the Company declines to fully exercise its First Refusal Right with respect to any Stock,
it must so notify the Investors and any Founder not disposing of Target Stock (the “Other Founders”) in writing at least fifteen (15) days prior to the expiration of the Company’s First Refusal Right with respect to any Target
Stock, and then the Investors and the Other Founders shall have the right, for a period of fifteen (15) days after receipt of the Company’s written notice that the Company has declined to fully exercise the First Refusal Right with respect to
any such Stock, to purchase their pro rata share of all such unpurchased Stock at the same price and on the same terms that such Stock was offered to the Prospective Transferee(s) (the “Secondary Refusal Right”); provided,
however, that if any such Prospective Transferee has offered to pay for any Stock with property, services or any other non-cash consideration, then the Investors and the Other Founders shall nevertheless have the right to pay for such Stock
with cash in an amount equal to the fair market value of the non-cash consideration offered by the Prospective Transferee in question, where the fair market value of such non-cash consideration shall be conclusively determined in good faith by the

  

 3 

 
Board; provided, further, that any Target Stock not elected to be purchased by the end of such fifteen (15) day period shall be reoffered for
the ten (10) day period following such fifteen (15) day period by the transferring Owner on a pro rata basis to all of the Investors and Other Founders who have elected to purchase their pro rata share. 
  
 2.7 Non-Exercise of Right. If the Exercise Notice is
not given to the Owner within forty (40) days following the date of the Company’s receipt of the Disposition Notice and the Investors and the Other Founders decline to exercise the Secondary Refusal Right, the Owner shall have a period of sixty
(60) days thereafter in which to sell or otherwise dispose of the Stock to the Prospective Transferee(s) identified in the Disposition Notice upon terms and conditions (including the purchase price) no more favorable to such Prospective
Transferee(s) than those specified in the Disposition Notice. If the Owner does not effect such sale or disposition of the Stock within the specified sixty (60) day period, the Company’s First Refusal Right and the Investors and the Other
Founders’ Secondary Refusal Right shall continue to be applicable to any subsequent disposition of the Stock by the Owner until such right lapses in accordance with Section 6.4. 
  
 2.8 Recapitalization. In the event of any stock dividend, stock split, recapitalization or other
transaction affecting the Company’s outstanding Common Stock as a class effected without receipt of consideration, then any new, substituted or additional securities or other property that is by reason of such transaction distributed with
respect to the Stock shall be immediately subject to the Company’s First Refusal Right and the Investors and the Other Founders’ Secondary Refusal Right hereunder. 
  
 3. Sales by Founders. 
  
 (a) If any Founder proposes to sell any shares of Stock (i) as to which the Company either waived or failed to exercise its First Refusal
Right with respect to such shares and (ii) which have not been purchased by any Investor or the Other Founders pursuant to the Secondary Refusal Right, then such Founder promptly shall give written notice (the “Notice”) to the
Company, the Investors and the Other Founders at least twenty (20) days prior to the closing of such proposed sale. The Notice shall describe in reasonable detail the proposed sale including, without limitation, the number of shares of Stock to be
sold, the nature of such sale, the consideration to be paid, and the name of each prospective purchaser. 
  
 (b) The Investors and the Other Founders shall have the right, exercisable by written notice to the Founder within 5 days after receipt of
the Notice, to participate on a pro rata basis in such sale of Stock on the same terms and conditions and as set forth in subparagraph (c) below. 
  
 (c) The Investors and the Other Founders may sell all or any part of that number of shares equal to the product obtained by multiplying
(i) the aggregate number of shares of Stock covered by the Notice by (ii) a fraction, the numerator of which is the number of shares of Capital Stock owned by each such Investor or Other Founder, as the case may be, at the time of the Notice and the
denominator of which is the sum of (X) the number of shares of Stock 

  

 4 

 
owned by the Founder and (Y) the aggregate number of shares of Capital Stock owned by each such Investor or Other Founder, as the case may be, at the time of
the Notice. 
  
 (d) An Investor or Other Founder
shall effect its participation in the sale by promptly delivering to the Founder, for transfer to the prospective purchaser, one or more certificates, properly endorsed for transfer, that represent: 
  
 (i) the number of shares of Common Stock that the Investor
or Other Founder, as the case may be, elects to sell; or 
  
 (ii) that number of shares of Preferred Stock that is at such time convertible into the number of shares of Common Stock that an Investor elects to sell or that number of shares of Common Stock that the Other Founder
elects to sell; provided, however, that if the prospective purchaser objects to the delivery of Preferred Stock in lieu of Common Stock, the Investor shall convert such Preferred Stock into Common Stock and deliver Common Stock as
provided in Section 3(d)(i) above. The Company agrees to make any such conversion concurrent with the actual transfer of such shares to the purchaser. 
  
 (e) The stock certificate or certificates that an Investor or Other Founder, as the case may be, delivers to the Founder pursuant to
Section 3(d) shall be transferred to the prospective purchaser in consummation of the sale of the Stock pursuant to the terms and conditions specified in the Notice, and the Founder shall concurrently therewith remit to the Investor or Other
Founder, as the case may be, that portion of the sale proceeds to which the Investor or Other Founder is entitled by reason of its participation in such sale. To the extent that any prospective purchaser or purchasers prohibit(s) such assignment or
otherwise refuse(s) to purchase shares or other securities from any Investor or Other Founder, as the case may be, exercising its right of co-sale hereunder, the Founder shall not sell to such prospective purchaser or purchasers any Stock unless and
until, simultaneously with such sale, the Founder shall purchase such shares or other securities from the Investor or Other Founder, as the case may be. 
  
 (f) The exercise or non-exercise of the right of the Investors and the Other Founders hereunder to participate in one or more sales of
Stock made by the Founder shall not adversely affect its right to participate in subsequent sales of Stock subject to paragraph 3(a). 
  
 4. Voting Agreement. 
  
 4.1 Agreement to Vote. Each of the Founders and the Investors agrees to vote all of the Company’s voting securities (the
“Voting Securities”) now or hereafter beneficially owned by him, her or it at any regular or special meeting of shareholders of the Company or, in lieu of such meeting, to act by written consent, in accordance with the provisions of
this Section 4. 
  
 4.2 Election of
Directors. Each of the Founders and the Investors agrees to vote his, her or its Voting Securities as follows: 
  
 (a) To elect to the Board of Directors three (3) persons designated by the Founders (the “Founders’ Designees”),
which initial designees shall be Ketan Kothari, 

  

 5 

 
Manish Kothari and Joe Barrus. Any vacancy occurring because of the death, resignation or removal of the Founders’ Designees shall be filled according
to this Section 4.2(a). 
  
 (b) To elect to the
Board of Directors two (2) persons designated by holders of a majority of the shares of Preferred Stock held by the Investors (the “Investors’ Designees”), which initial designees shall be Walter Kortschak and Scott Crabill.
Any vacancy occurring because of the death, resignation, or removal of the Investors’ Designees shall be filled according to this Section 4.2(b). 
  
 (c) To elect to the Board of Directors one (1) person mutually agreed upon by the Founders and the Investors (the “Mutual
Designee”). Any vacancy occurring because of the death, resignation, or removal of the Mutual Designee shall be filled according to this Section 4.2(c). 
  
 (d) The composition of the board of directors of each of the Company’s Subsidiaries, if any, shall be
identical to that of the Company’s Board of Directors (except to the extent any Subsidiaries have additional directors to satisfy director residency requirements). 
  
 (e) Any committees of the Company’s or its Subsidiaries’ board of directors will include at least
one of the Investors’ Designees. 
  
 (f) The
Company will pay the reasonable out-of-pocket expenses incurred by the directors in connection with attendance at meetings of the board of directors or any committee thereof. 
  
 4.3 Successors in Interest. The provisions of this Section 4 shall be binding upon the successors in
interest to any of the Founders or the Investors with respect to the Voting Securities. The Company shall not permit the transfer of any of such securities on its books or issue new certificates representing any of such securities unless and until
each person to whom such securities are to be transferred shall have executed a written agreement pursuant to which such person becomes a party to this Section 4, and agrees to be bound by all the provisions hereof as if such person was a party
hereunder. 
  
 5. Legends. 
  
 (a) Each certificate representing shares of Stock now or
hereafter owned by each Founder or issued to any person in connection with a transfer pursuant to Section 2.1 hereof shall be endorsed with the following legend: 
  
 THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND
CONDITIONS OF A CERTAIN STOCKHOLDERS’ AGREEMENT BY AND AMONG THE SHAREHOLDER, THE CORPORATION AND CERTAIN HOLDERS OF STOCK OF THE CORPORATION. COPIES OF SUCH 

  

 6 

 
AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION. 
  
 (b) Each certificate representing any Voting Securities and subject to the provisions of Section 4 hereof
shall bear a legend reading as follows: 
  
 THE SHARES EVIDENCED
HEREBY ARE SUBJECT TO THE TERMS OF A STOCKHOLDERS’ AGREEMENT (A COPY OF WHICH MAY BE OBTAINED WITHOUT CHARGE FROM THE ISSUER) THAT, AMONG OTHER THINGS, GOVERNS THE VOTING OF THE SECURITIES IN CERTAIN CIRCUMSTANCES, AND BY ACCEPTING ANY INTEREST
IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AND SHALL BECOME BOUND BY ALL PROVISIONS OF SUCH STOCKHOLDERS’ AGREEMENT. 
  
 (c) The Founders and the Investors agree that the Company may instruct its transfer agent to impose transfer restrictions on the shares
represented by certificates bearing the legend or legends, as applicable, referred to in Sections 5(a) and 5(b) above to enforce the provisions of this Agreement and the Company agrees to promptly do so. The legend or legends shall be removed upon
termination of this Agreement. 
  
 6. Put Arrangements.

  
 6.1 Put Right. At any time after the
earlier of: (i) the seventh anniversary of the date hereof and (ii) the occurrence of an Event of Noncompliance of the type described in Article III(c)(5)(a) of the Company’s Amended and Restated Articles of Incorporation, the Investors holding
a majority of the Capital Stock then held by all Investors (the “Initiating Investors”) shall have the right to require the Company to repurchase all or any portion of the Capital Stock held by such Investors at the Put Price (the
“Put”) by delivering a written notice to the Company specifying the number of shares to be repurchased (the “Put Notice”). Upon receipt of the Put Notice, the Company shall give written notice of the exercise of the
Put to each of the other Investors, and each such other Investor shall have the right, within 10 days after receipt of such notice, to participate in the put by delivering a written notice (the “Participation Notice”) to the Company
specifying the number of Stockholder Shares to be repurchased. 
  
 6.2 Put Closing. Upon the delivery of the Put Notice, the Company and the Initiating Investors shall in good faith promptly determine the Put Price as provided hereunder and, subject to the provisions hereof,
within ten days after the determination of the Put Price, the Company shall purchase and the participating Investors shall sell the number of Stockholder Shares specified in the Put Notice and (as applicable) each Participation Notice at a mutually
agreeable time and place (the “Put Closing”). At the Put Closing, each participating Investor shall deliver to the Company certificates representing such Investor’s shares of Capital Stock to be repurchased by the Company free
and clear of all liens and encumbrances and duly endorsed in blank or accompanied by duly executed forms of assignment (with signatures guaranteed), and the Company shall deliver to each such Investor an amount equal to the Put Price payable to such

  

 7 

 
Investor as determined pursuant to paragraph 6.3 below by cashiers or certified check or wire transfer of immediately available funds to an account
designated by each such Investor. 
  
 6.3 Put
Price. The “Put Price” of each participating Investor’s shares of Capital Stock to be repurchased shall mean the product of (i) the Market Value of the Company, multiplied by (ii) a fraction, the numerator of which shall be
the number of each such Investor’s shares of Capital Stock to be repurchased and the denominator of which shall be the total number of shares of Common Stock then outstanding on a fully diluted basis (including all shares of Common Stock
issuable upon the conversion, exercise or exchange of all outstanding vested In-the-Money Options and Securities (as defined in paragraph 6.5 below) as of the date that the Put Price is determined hereunder). The Market Value of the Company shall be
determined jointly by the Company and the Initiating Investors. If such parties are unable to reach agreement within a reasonable period of time (not to exceed 30 days), the Market Value of the Company shall be determined by an independent appraiser
or firm experienced in valuations of the type contemplated hereby reasonably acceptable to the Company and the Initiating Investors, which firm shall submit to the Company and the participating Investors a written report setting forth such
determination. If the parties are unable to agree on an independent appraiser or firm within 15 days after such reasonable period of time (not to exceed 30 days), such appraiser or firm shall be selected by lot from an initial group of four such
appraisers or firms which are experienced in valuations of the type contemplated hereby, two of which shall be selected by the Company and two of which shall be selected by the Initiating Investors. Each of the Company and the Initiating Investors
shall have the right to eliminate one appraiser or firm to be selected by the other prior to such selection by lot. The expenses of such appraiser or firm shall be borne equally by the Company and the participating Investors, and the determination
of such appraiser or firm shall be final and binding upon all parties. 
  
 6.4 Termination of Put-Right. The right to exercise the Put hereunder shall terminate upon the consummation of a Public Offering. 
  
 6.5 Market Value. The term “Market Value” means the fair market value of the
Company’s entire common equity determined on a going concern basis as between a willing buyer and a willing seller and taking into account all relevant factors determinative of value, including, without limitation: (i) the aggregate exercise or
conversion price of all options, warrants and other securities then exercisable or exchangeable for or convertible into Common Stock at a price less than what would otherwise be the fair market value of such Common Stock (collectively,
“In-the-Money Options and Securities”) and (ii) the effect on the value of the common equity of the exercise or conversion of any In-the-Money Options and Securities that constitute (or may be deemed to constitute) debt securities
that, upon conversion or exercise, would be removed from the Company’s balance sheet in accordance with generally accepted accounting principals, consistently applied. For purposes of determining Market Value hereunder, no discount shall be
applied to take into account any lack of liquidity of the Common Stock or the size of the interest of any hold or the fact that any such holder owns a minority interest in the Company. 
  

 8 

 7. Covenants of the Company. 
  
 7.1 General Covenants. Until the first to occur of (i) the consummation of a Qualified Public
Offering, (ii) the Put Closing, (iii) a Sale of the Company and (iv) the Investors ceasing to hold at least 50% of the shares of the Preferred Stock outstanding as of the Closing under the Recapitalization Agreement, the Company shall not (without
the prior written consent of the Investors holding a majority of the shares of the Preferred Stock held by all of the Investors): 
  
 (a) make, or permit any Subsidiary to make, any loans or advances to, guarantees for the benefit of, or investments in, any Person (other
than a wholly-owned Subsidiary), except for (1) reasonable advances to employees in the ordinary course of business, (2) acquisitions permitted pursuant to subparagraph (b) below, (3) investments in certificates of deposit or money market funds or
similar Investments in the ordinary course of business, and (4) investments not exceeding $250,000 in any twelve-month period; 
  
 (b) become subject to, or permit any of its Subsidiaries to become subject to (including by way of amendment to or modification of) any
agreement or instrument which by its terms would (under any circumstances) restrict, condition or prohibit the timing or amount of any payment with respect to the Preferred Stock or the Redeemable Preferred Stock which the Company is otherwise
obligated to make (whether under this Agreement, the Investor Rights Agreement, the Recapitalization Agreement or the Company’s Amended and Restated Articles of Incorporation); 
  
 (c) enter into, amend, modify or supplement, or permit any Subsidiary to enter into, amend, modify or
supplement, any agreement, transaction, commitment or arrangement with any of its or any Subsidiary’s officers, directors, employees or stockholders or with any individual related by blood, marriage or adoption to any such individual or with
any entity in which any such Person owns a beneficial interest representing more than 5% of the outstanding equity of such entity, except for (1) employment arrangements approved by the disinterested members of the Board (subject to subparagraph (d)
below), (2) benefit programs on reasonable terms or generally available to employees, (3) as otherwise expressly contemplated by this Agreement, the Recapitalization Agreement and other agreements entered into in connection with the Recapitalization
Agreement and (4) agreements, transactions, commitments and arrangements (other than reimbursement of travel and other business expenses in the ordinary course of business) having an aggregate value at any time of $100,000 or less during any twelve
month period; 
  
 (d) increase any compensation
(including salary, bonuses and other forms of current and deferred compensation) payable to Ketan Kothari, Manish Kothari or Joseph Barrus, except as approved by the disinterested members of the Compensation Committee of the Board; 
  
 (e) create, incur, assume or suffer to exist, or permit any
Subsidiary to create, incur, assume or suffer to exist, any liens, charges or encumbrances; other than (1) liens, charges or encumbrances granted in connection with Indebtedness permitted under Section 7.2(c) 

  

 9 

 
below or (2) tax liens, charges or encumbrances or mechanics’, warehousemen’s, landlords’ or similar liens, charges or encumbrances, in each
case arising in the ordinary course of business for sums not yet due and payable or which are being contested in good faith by appropriate proceedings and for which an appropriate reserve for such lien, charge or encumbrance has been established on
the books of the Company in accordance with generally accepted accounting principles consistently applied; 
  
 (f) make any capital expenditures (including payments with respect to capitalized leases, as determined in accordance with generally
accepted accounting principles consistently applied) exceeding $1,000,000 in the aggregate on a consolidated basis during any twelve month period or purchase inventory for a purchase price greater than $1,000,000 in any one transaction of series of
related transactions; or 
  
 (g) amend or modify
the Option Plan or adopt any new option plan or employee stock ownership plan or other equity-based incentive plan or issue options to purchase any Common Stock to any employee, director or consultant, if the number of shares of Common Stock issued
or issuable pursuant to such plans in the aggregate would exceed 2,638,235 shares of Common Stock of the Company (as adjusted for stock splits, stock dividends and the like). 
  
 7.2 Special Covenants. Until the first to occur of (i) the consummation of a Qualified Public
Offering, (ii) the Put Closing, (iii) a Sale of the Company and (iv) the Investors ceasing to hold at least 50% of the shares of the Preferred Stock outstanding as of the Closing under the Recapitalization Agreement, the Company shall not (without
the prior written consent of the Investors holding a majority of the shares of the Preferred Stock held by all of the Investors): 
  
 (a) acquire, or permit any Subsidiary to acquire, any interest in any company or business (whether by a purchase of assets, purchase of
stock, merger or otherwise), or enter into any joint venture, involving an aggregate consideration (including the assumption of liabilities whether direct or indirect) exceeding $5,000,000 in any one transaction or series of related transactions or
exceeding $5,000,000 in any twelve-month period; 
  
 (b) change the principal or predominant nature of its business to anything other than the manufacture, assembly and sale of computing appliances and related equipment, including products and services incidental thereto; or 
  
 (c) create, incur, assume or suffer to exist, or permit any
Subsidiary to create, incur, assume or suffer to exist, Indebtedness (as defined in the Recapitalization Agreement) in an aggregate principal amount outstanding at any time on a consolidated basis in excess of the greater of (i) $35,000,000 and (ii)
three times the Company’s net earnings before interest, expense, federal and state income tax expense, depreciation expense and amortization expense for the most recent fiscal year end. 
  

 10 

 8. Miscellaneous. 
  
 8.1 Governing Law. This Agreement shall be governed by and construed under the laws of the State of
California as applied to agreements among California residents, made and to be performed entirely within the State of California. 
  
 8.2 Amendment. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively) only by the written consent of (i) the Company, (ii) the holders of a majority of the shares of Capital Stock held by the Investors and (iii) as to each Founder, such Founder. Any
amendment or waiver effected in accordance with clauses (i), (ii) and (iii) of this section shall be binding upon the Investor, its successors and assigns, the Company, and the Founder in question and his successors and assigns. 
  
 8.3 Assignment of Rights. This Agreement and the
rights and obligations of the parties hereunder shall inure to the benefit of, and be binding upon, their respective successors, assigns and legal representatives. 
  
 8.4 Term. This Agreement shall terminate upon the earliest to occur of (i) the date on which
shares of the Company’s Common Stock are held of record by more than five hundred (500) persons, (ii) the closing of a firm commitment underwritten public offering which triggers the automatic conversion of the Preferred Stock, (iii) the Sale
of the Company, or (iv) upon mutual agreement of all of the parties hereto. 
  
 8.5 Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given upon personal delivery to the party to be notified or five days after deposit in the United
States mail, by registered or certified mail, postage prepaid and properly addressed to the party to be notified as set forth on the signature page hereof or at such other address as such party may designate by ten days’ advance written notice
to the other parties hereto. 
  
 8.6
Severability. If one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of
this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 
  
 8.7 Attorneys’ Fees. If any dispute among the parties to this Agreement results in litigation, the prevailing party in such
dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this Agreement, including, without limitation, such reasonable fees and expenses of
attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 
  

 11 

 8.8 Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 8.9 Aggregation of Stock. All shares of Capital Stock held or acquired by affiliated entities or persons shall be aggregated
together for the purpose of determining the availability of any rights under this Agreement. 
  
 8.10 Stock Splits, Stock Dividends, etc. In the event of any stock split, stock dividend, recapitalization, reorganization, or the
like, any securities issued with respect to the Voting Securities shall become “Voting Securities” for purposes of this Agreement and shall be endorsed with the legend set forth in Section 5(b) hereof. 
  
 8.11 Entire Agreement. This Agreement contains the
entire understanding of the parties with respect to the subject matter hereof and supersedes all other agreements between or among any of the parties with respect to the subject matter hereof, including the Shareholders’ Agreement, dated March
15, 1996, by and among the Company, Ketan Kothari, Manish Kothari and Joseph Barrus, which is hereby terminated and of no further force or effect. 
  

 12 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

	 COMPANY:
  
 INTELLIGENT PERIPHERAL DEVICES, INC.

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	Address:	 	20380 Town Center Lane, Suite 270 Cupertino, CA 95014
	 	 	 
	FOUNDERS:
	
	

	Ketan Kothari
		
	Address:	 	  

	 	 	  

	 	 	 
	
	

	Manish Kothari
		
	Address:	 	  

	 	 	  

	 	 	 
	
	

	Joseph Barrus
		
	Address:	 	  

	 	 	  

  
 [Signature
Page to Stockholders’ Agreement] 
  

	 INVESTORS:
  
 SUMMIT VENTURES V, L.P.

		
	By:	 	 Summit Partners V, L.P., its General Partner

		
	By:	 	 Summit Partners, LLC, its General Partner

		
	By:	 	  

	 	 	 Member

		
	Address:	 	 499 Hamilton Avenue, Suite 200
 Palo Alto, CA
94301

	 	 	 
	
	 SUMMIT V ADVISORS FUND (QP), L.P.

		
	By:	 	 Summit Partners, LLC, its General Partner

		
	By:	 	  

	 	 	 Member

		
	Address:	 	 499 Hamilton Avenue, Suite 200
 Palo Alto, CA
94301

	 	 	 
	
	 SUMMIT COMPANION FUND, L.P.

		
	By:	 	 Summit Partners V, L.P., its General Partner

		
	By:	 	 Summit Partners, LLC, its General Partner

		
	By:	 	  

	 	 	 Member

		
	Address:	 	 499 Hamilton Avenue, Suite 200
 Palo Alto, CA
94301

	 	 	 

  
 [Signature
Page to Stockholders’ Agreement] 
  

	 SUMMIT V ADVISORS FUND, L.P.

		
	By:	 	 Summit Partners, LLC, its General Partner

		
	By:	 	  

	 	 	 Member

		
	Address:	 	 499 Hamilton Avenue, Suite 200
 Palo Alto, CA
94301

	 	 	 
	
	 SUMMIT INVESTORS III, L.P.

		
	By:	 	 Summit Partners, LLC, its General Partner

		
	By:	 	  

	 	 	 Member

		
	Address:	 	 499 Hamilton Avenue, Suite 200
 Palo Alto, CA
94301

	 	 	 
	
	 BROADVIEW PARTNERS GROUP

		
	By:	 	 Peter Mooney

		
	Its:	 	  

	 	 	 Nominee

		
	Address:	 	 
	 	 	 
	
	 SQUAM LAKE INVESTORS III, L.P.

		
	By:	 	 GPI, Inc., its General Partner

		
	By:	 	  

	 	 	 Vice President

		
	Address:	 	 Squam Lake Investors
 c/o Bain & Company,
Inc.
 Two Copley Place
 Boston, MA 02117

	 	 	 

  
 [Signature
Page to Stockholders’ Agreement] 
  
  

	 RANDOLPH STREET PARTNERS

		
	By:	 	  

		
	Its:	 	 Managing Partner

		
	Address:	 	 200 East Randolph Drive
 Chicago, IL
60601
 Attn: Ted H. Zook

	 	 	 
	
	RANDOLPH STREET PARTNERS 1998 DIF, L.L.C.
		
	By:	 	  

		
	Its:	 	 Managing Partner

		
	Address:	 	 200 East Randolph Drive
 Chicago, IL
60601
 Attn: Ted H. Zook

	 	 	 
	
	 BROBECK, PHLEGER & HARRISON, L.P.

		
	By:	 	  

		
	Its:	 	 Partner

		
	Address:	 	 Two Embarcadero Place
 2200 Geng
Road
 Palo Alto, CA 94303
 Attn: Curtis L. Mo,
Esq.

	 	 	 

  
 [Signature
Page to Stockholders’ Agreement]

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