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EXECUTIVE
EMPLOYMENT AGREEMENT

     THIS
AGREEMENT dated as of December 22, 2005, by and between ENGlobal
Corporation, a Texas corporation (the
“Company”), and Michael M. Patton,
a resident of Houston, Texas (the “Executive”).

RECITALS

     WHEREAS,
the  Executive is willing to accept  employment  by the Company on the terms and
conditions  of  this Agreement;

     NOW,
THEREFORE, the Company and the Executive agree as follows:

     1.Employment Duties and Acceptance.

     1.1
Employment by the Company. The Company agrees to employ the Executive as  Senior
Vice President of Business Development for the duration of the  Employment Term (as
defined in Section 2 below), to render such services and to  perform such duties as are
normally associated with and inherent in the  executive capacity in which the Executive
will be serving, as well as such other  duties, which are not inconsistent with the
Executive’s position with the  Company, as shall from time to time reasonably be
assigned to him by the Chief  Executive Officer of the Company (the “CEO”),
including, but not limited to, possible assignments to render services and  perform
duties with ENGlobal Corporation and/or its subsidiaries.

     1.2
Acceptance of Employment by the Executive. The Executive accepts such  employment
for the Employment Term and agrees to render the services required of  him under Section
1.1. During the Employment Term, the Executive shall devote  his full business time,
attention and energy to the business of the Company and  the performance of his duties
under this Agreement. The foregoing shall not,  however, prohibit the Executive from
making and managing personal investments,  or from engaging in civic or charitable
activities, that do not materially  impair the performance of his duties under this
Agreement. If appointed or  elected, as applicable, the Executive also shall serve during
all or any part of  the Employment Term as any other officer and/or as a director of the
Company or  any of its subsidiaries or affiliates, without any additional compensation
other  than that specified in this Agreement.

     1.3
Place of Performance. The Executive shall be based in the Houston  Metropolitan
Area, and nothing in this Agreement shall require the Executive to  relocate his base of
employment or principal place of residence from the Houston  Metropolitan Area.

     1.4
Termination of Existing Contracts. The Executive agrees that all  agreements and
contracts, whether written or oral, relating to the employment of  the Executive by the
Company, or any of its subsidiaries or affiliates, shall be  superceded effective as
of the commencement of the Employment Term.  However, nothing in this Section 1.4 shall
(i) affect accrued vacation, holiday  or sick pay accruals, (ii) require the Company to
cease to make available to the  Executive, and, subject to his meeting all applicable
eligibility requirements,  the Executive shall be entitled to continue to be covered
under, all group  health, medical and dental insurance policies, plans and programs
maintained by  the Company for its executive level employees generally, in each case
until  replacement coverage is provided by the Company, or (iii) impair or adversely
affect any indemnification rights that the Executive may have under statutes  empowering
corporations in the Company’s or any of its subsidiaries’ states of
incorporation to indemnify their officers and directors, or under the  Company’s or
any of its affiliates’ bylaws or any written  indemnification agreement between the
Executive and the Company or any of its  affiliates implementing such statutory
indemnification rights, but only with  respect to third-party claims or proceedings that
relate to actions taken by the  Executive as an officer or director of the Company or any
of its affiliates  prior to the date hereof.

1 

     2.
Employment Term. The term of the Executive’s employment under this  Agreement
(the “Employment Term”) shall commence  on the effective
date of February 7, 2006 (the  “Commencement Date”),
and shall continue through  and expire on the 3rd anniversary of the Commencement
Date (the  “Expiration Date”), unless extended by
the  Company or earlier terminated as herein provided. By written notice given by the
Company to the Executive at any time at least 60 days before the Expiration  Date, the
Company may elect to extend the Employment Term for one additional  one-year period
beginning on the Expiration Date. In that case, and from that  point forward, the “Employment
Term” shall become  the four-year period beginning on the
Commencement Date, and the term  “Expiration Date” shall
be deemed to refer to the  fourth anniversary of the Commencement Date. 

     3.Compensation and Other Benefits.

     3.1
Annual Salary. As compensation for services to be rendered under this  Agreement,
the Company shall pay the Executive a salary (the “Annual  Salary”), subject
to such increases as the Board of  Directors may, in its discretion, approve, at a rate
of $210,000.00 per annum.  The Executive shall also be eligible, during the Employment
Term, to receive  such other compensation, whether in the form of cash bonuses, incentive
compensation, stock options, stock appreciation rights, restricted stock awards  or
otherwise (collectively, the “Additional  Compensation”), as
the Board of Directors (or any  committee of the Board) may, in its discretion, approve.
The Annual Salary and  the Additional Compensation shall be payable in accordance with
the applicable  payroll and/or other compensation policies and plans of the Company as in
effect  from time to time during the Employment Term, less such deductions as shall be
required to be withheld by applicable law and regulations, or authorized by  Executive.

     3.2
Participation in Employee Benefit Plans. The Executive shall be  permitted, during
the Employment Term, if and to the extent he is and continues  to meet all applicable
eligibility requirements, to participate in any group  life, hospitalization or
disability insurance plan, health program, pension  plan, similar benefit plan or other
“fringe benefits” of the Company,  which may be available to all other
similarly situated executives and officers  of the Company on generally the same terms.

     3.3
Executive Support. The Company shall provide to the Executive office  facilities,
furniture, and equipment, secretarial and support personnel and  other management level
support services as the Executive shall reasonably  require in connection with his
performance of his duties under this Agreement.

2 

     3.4
Reimbursement of Business Expenses. The Executive may incur reasonable,  ordinary
and necessary business expenses in the course of his performance of his  duties under
this Agreement, including expenses for travel, food and  entertainment. The Company shall
reimburse the Executive for all such business  expenses if (i) the expenses are incurred
by the Executive in accordance with  the Company’s business expense reimbursement
policy, if any, as may be  established and modified by the Company from time to time, and
(ii) the  Executive provides to the Company a record of and appropriate receipts for (A)
the amount of the expense, (B) the date, place and nature of the expense, (C)  the
business reason for the expense and (D) the names, occupations and other  data concerning
individuals entertained sufficient to establish their business  relationship to the
Company. The Company shall have no obligation to reimburse  the Executive for expenses
that are not incurred and substantiated as required  by this Section 3.4.

     4.Non-Competition.

     4.1
Covenants Against Competition. The Executive acknowledges that (i) the  Company,
which for purposes of this Section 4 includes the Company, and all of  its present and
future subsidiaries and affiliates, engaged in the business of  providing a broad range
of engineering services and engineered systems  (instrumentation systems), including
planning, design procurement, construction  management, in-plant maintenance, field
inspection and control system services  (“the Business”); (ii) the Executive is
one of a limited number of  persons who has performed a significant role in developing
the Business; (iii)  the Business is conducted throughout the United States and
internationally; (iv)  his work for the Company will give him possession of, and access
to, trade  secrets of, and confidential, proprietary information concerning, the Company;
(v) the agreements and covenants contained in this Section 4 (collectively, the  “Restrictive
Covenants”) are essential to protect  the Business and the goodwill
of the Company. Accordingly, the Executive agrees  as follows:

     4.1.1
Non-Compete. During the Restricted Period, the Executive shall not (A)  engage,
anywhere within the Territory (as hereinafter defined), as an owner,  co-owner, investor,
creditor, officer, director, employee, independent  contractor, consultant, advisor, or
in any other managerial capacity in any  business selling or providing any services which
are sold or offered by the  Company, within the area surrounding each office or facility
(“Facility”) at which the Executive was employed  by the
Company within the two-year period immediately preceding the date of the  Executive’s
termination of employment (for purposes of this Section 4.1,  the area surrounding a
Facility shall be: (1) the city, town or village in which  the Facility is located, (2)
the county or parish in which the Facility is  located, (3) the counties or parishes
contiguous to the county or parish in  which the Facility is located and (4) the area
located within 150 miles of the  Facility, all of such locations being herein
collectively called the  “Territory”, or (B) call
on any person or  entity that at the time is, or at any time within one-year prior to the
date of  termination of the Executive’s employment was, a customer of the Company,
for the purpose of soliciting or selling any product or service which is then  sold or
offered within the Territory by the Company if the Executive has  knowledge of that
customer relationship; provided, however, that nothing  in this Section 4.1.1
shall prohibit the Executive from owning, directly or  indirectly, solely as an
investment, securities of any entity traded on any  national securities exchange or
over-the-counter market if the Executive is not  a controlling person of, or a member of
a group which controls, such entity and  does not, directly or indirectly, own one
percent or more of any class of  securities of such entity. As used in this Section 4,
the term  “Restricted Period” means the period beginning
on  the Commencement Date and ending:

3 

	 	     (i)  if
the Executive’s employment terminates as a result of (a) a termination  for Cause
under Section 5.2 or (b) the Executive’s voluntary resignation,  the third
anniversary of the Executive’s date of termination of employment;  or

	 	     (ii)  if
the Executive’s employment terminates as a result of (a) a termination  without
Cause under Section 5.3 or (b) a termination for disability under  Section 5.4, on the
expiration of the Total Severance Benefit Period (as defined  in Section 5.5).

     4.1.2
Confidential Information; Personal Relationships. During the Restricted  Period
and thereafter, the Executive shall keep secret and retain in strict  confidence, and
shall not use for the benefit of himself or others, all  confidential matters of the
Company, including, without limitation,  “know-how,” trade secrets, customer
lists, details of client or  consultant contracts, pricing policies, bidding practices
and procedures,  operational methods, marketing plans or strategies, project development
techniques or plans, business acquisition plans, new personnel acquisition  plans,
methods of production, manufacture and installation, technical processes,  designs and
design projects, inventions and research projects of the Company  learned by the
Executive heretofore or during the Restricted Period; nor shall  the Executive exploit
for his own benefit, or the benefit of others, personal  relationships with customers,
suppliers or agents of the Company in connection  with or adversely affecting the
Business formed previously during the course of  his association with the Company or
formed during the Restricted Period.

     4.1.3
Property of the Company. All memoranda, notes, lists, records and other  documents
or papers (and all copies thereof), including such items stored in  computer memories, on
microfiche or by any other means, made or compiled  by or on behalf of the
Executive, or made available to the Executive relating to  the Company, other than purely
personal matters, are and shall be the  Company’s property. Upon the termination of
the Executive’s employment  (whether such termination is for Cause, as hereinafter
defined, or otherwise) or  at any other time on request of the Company, Executive shall
promptly (i) return  all Company property, (ii) download into useable format and provide
to the  Company all such information stored on computers or other electronic storage,
and immediately thereafter destroy or permanently delete the information from  Executive’s
possession, and (iii) within five days of the Company’s  written request, provide
the Company with a sworn affidavit verifying that all  such materials have been returned
to the Company or destroyed.

     4.1.4
Employees of the Company. During the Restricted Period and thereafter for  as long
as the Executive shall remain an employee of or consultant to the  Company, the Executive
shall not, directly or indirectly, hire or solicit any  employee or consultant engineer
of the Company away from the Company or  encourage any such employee or agent to leave
such employment.

     4.1.5
Consultants of the Company. During the Restricted Period and thereafter  for as
long as the Executive shall remain an employee of or consultant to the  Company, the
Executive shall not, directly or indirectly, hire or solicit any  consultant then under
contract with the Company or encourage such consultant to  terminate such relationship.

     4.1.6
Acquisition Candidates. During the Restricted Period and thereafter for  as long
as the Executive shall remain an employee of or consultant to the  Company, the Executive
shall not call on any Acquisition Candidate (as defined  below in this Section 4.1.6),
with the knowledge of such Acquisition  Candidate’s status as such, for the purpose
of acquiring, or arranging the  acquisition of, that Acquisition Candidate by any person
or entity other than  the Company. In this Section 4.1.6 “Acquisition
Candidate” means any person or entity engaged in any of the
businesses of engineering services, including planning, design procurement,  construction
management, in-plant maintenance, field inspection and control  system services, and (i)
which was called on by the Company, in connection with  the possible acquisition by the
Company of that person or entity, or (ii) with  respect to which the Company has made an
acquisition analysis within two (2)  years preceding the date of Executive’s
termination of employment.

4 

     4.2
Rights and Remedies upon Breach. If the Executive breaches or threatens  to commit
a breach of the Restrictive Covenants, the Company shall have the  following rights and
remedies, each of which shall be independent of the others  and severally enforceable,
and each of which is in addition to, and not in lieu  of, any other rights and remedies
available to the Company under law or in  equity.

     4.2.1
Specific Performance. The right and remedy to have the Restrictive  Covenants
specifically enforced by any court of competent jurisdiction, it being  agreed that any
breach or threatened breach of the Restrictive Covenants would  cause irreparable injury
to the Company and that money damages would not provide  an adequate remedy to the
Company.

     4.2.2
Accounting. The right and remedy to require the Executive to account for  and pay
over to the Company all compensation, profits, monies, accruals,  increments or other
benefits derived or received by the Executive as the result  of any transaction
constituting a breach of the Restrictive Covenants.

     4.3
Severability of Covenants. The Executive acknowledges and agrees  that the
Restrictive Covenants are reasonable and valid in geographical and  temporal scope and in
all other respects. If any court determines that any of  the Restrictive Covenants, or
any part thereof, is invalid or unenforceable, the  remainder of the Restrictive
Covenants shall not thereby be affected and shall  be given full effect, without regard
to the invalid portions.

     4.4
Reformation. If any court determines that any Restrictive Covenant, or  any part
thereof, is unenforceable because of the duration or geographic scope  of such provision,
such court shall have the power to reduce the duration or  scope of such provision, as
the case may be, and, in its reduced form, such  provision shall then be enforceable.

     4.5
Enforceability. The Company and the Executive intend to and hereby confer
exclusive jurisdiction to enforce the Restrictive Covenants upon the state and  federal
courts of Harris County, Texas.

     5.Termination.

     5.1
Termination upon Death. If the Executive dies during the Employment Term,  this
Agreement shall terminate, except that the Executive’s legal  representatives,
successors, heirs or assigns shall be entitled to receive the  Annual Salary, the
Additional Compensation and other accrued benefits, if any,  earned up to the date of the
Executive’s death and for a period of three  (3) months thereafter; provided,
however, if any Additional Compensation  or other benefits are governed by the
provisions of any written employee benefit  plan or policy of the Company, any written
agreement contemplated thereunder or  any other separate written agreement entered into
between the Executive and the  Company, the terms and conditions of such plan, policy or
agreement shall  control in the event of any discrepancy or conflict with the provisions
of this  Agreement regarding such Additional Compensation or other benefit upon the
death, termination or disability of the Executive.

5 

     5.2
Termination for Cause. At any time during the Employment Term, the  Company shall
have the right to terminate the Executive’s employment under  this Agreement and
discharge the Executive for Cause, exercisable upon the  service of written notice upon
the Executive. If such right is exercised, the  Company’s obligation to the
Executive shall be limited to the payment of  any unpaid Annual Salary, Additional
Compensation and other benefits, if any,  accrued up to the effective date specified in
the Company’s notice of  termination (which date shall not be retroactive). As used
in this Section 5.2  and elsewhere in this Agreement, the term “Cause” shall
mean the  determination that (i) after notice and a right to cure, there has been a
material breach by the Executive of the terms of this Agreement, (ii) after  receipt of a
written warning, the Executive has failed or refused to follow the  reasonable policies,
performance objectives, or directives established by the  Board of Directors or executive
officers of the Company senior to the Executive,  (iii) the Executive has wrongfully
misappropriated money or other assets or  properties of the Company or any subsidiary or
affiliate of the Company, (iv)  the Executive has been convicted of any felony or other
serious crime, (v) the  Executive’s employment performance has been substantially
impaired by  chronic absenteeism, alcoholism or drug addiction, or (vi) the Executive has
exhibited gross moral turpitude relevant to his office or employment with the  Company or
any subsidiary or affiliate of the Company.

     5.3
Termination Without Cause. At any time during the period beginning on the  first
anniversary of the Commencement Date and continuing through the end of  the Employment
Term, the Company shall have the right to terminate the  Executive’s employment
under this Agreement and discharge the Executive  without Cause, exercisable upon the
service of written notice to the Executive.  If such right is exercised, the Company’s
obligation to the Executive shall  be as set forth in Section 5.5 below.

     5.4
Termination Upon Disability. If during the Employment Term the Executive  becomes
physically or mentally disabled, whether totally or partially, as  evidenced by the
written statement of a competent physician licensed to practice  medicine in the United
States, so that the Executive is unable to substantially  perform his services hereunder
with reasonable accommodation for (i) a period of  six consecutive months, or (ii) for
shorter periods aggregating six months  during any period of twelve consecutive months,
the Company may at any time  after the last day of the six consecutive months of
disability, or the day on  which the shorter periods of disability equal an aggregate of
six months within  a period of twelve consecutive months, terminate the Executive’s
employment  hereunder, exercisable by written notice to the Executive. If such right is
exercised, the Company’s obligation to the Executive shall be as set forth  in
Section 5.5 below.

     5.5
Severance Benefit. If at any time during or after the Employment Term,  the
Executive’s employment by the Company is terminated for any reason  other than (i) a
termination for Cause under Section 5.2, (ii) Executive’s  voluntary resignation, or
(iii) Executive’s death, then for a period of six  (6) months following the date of
termination of the Executive’s employment  (the “Initial Severance
Benefit Period”), the Company shall continue to (a) pay to the
Executive, in payroll period  installments in accordance with the Company’s normal
payroll policies, the  monthly amount of Executive’s base monthly salary in effect
at the date of  termination of his employment, and (b) at the Company’s expense,
provide  coverage for the Executive and his eligible dependents under the coverage of all
group health, medical and dental insurance policies, plans and programs  maintained by
the Company during the Initial Severance Benefit Period for the  Company’s
employees, or management employees, generally, as allowed by law.

6 

     The
Company, at its option, which shall be exercisable by a written notice sent to  the
Executive at least sixty (60) days prior to the expiration of the Initial  Severance
Benefit Period, may elect to extend the Initial Severance Benefit  Period for a period of
an additional six (6) months following the expiration of  the Initial Severance Benefit
Period. If the Company so elects to extend the  Initial Severance Benefit Period, the
Company, during the Second Severance  Benefit Period shall (i) pay to the Executive, in
payroll period installments in  accordance with the Company’s normal payroll
policies, an amount equal to  100% of the monthly amount of Executive’s base monthly
salary in effect at  the date of termination of his employment, and (ii) at the Company’s
expense, provide coverage for the Executive and his eligible dependents under  the
coverage of all group health, medical and dental insurance policies, plans  and programs
maintained by the Company during the Second Severance Benefit  Period, for the Company’s
employees, or management employees, generally, as  allowed by law.

     For
purposes of Section 4.1.1 of this Agreement, the term “Total  Severance
Benefit Period” means the total period (including  the Initial
Severance Benefit Period and, if applicable, the Second Severance  Benefit Period) during
which the Company is obligated to pay and provide, and  performs its obligations to pay
and provide, severance benefits to the Executive  under this Section 5.5.

     6.
Insurance. The Company may, from time to time, apply for and take out, in  its own
name and at its own expense, naming itself or others as the designated  beneficiary
(which it may change from time to time), policies for health,  accident, disability or
other insurance upon the Executive or his life, in any  amount or amounts that it may
deem necessary or appropriate to protect its  interest. The Executive agrees to aid the
Company in procuring such insurance by  submitting to reasonable medical examinations and
by filling out, executing and  delivering such applications and other instruments in
writing as may reasonably  be required by an insurance company or companies to which any
application or  applications for insurance may be made by or for the Company.

     7.Arbitration.

     7.1
Binding Effect. Except as provided in Section 7.2 below, any and all
controversies, claims or disputes by and between the Executive and the Company  relating
to the provisions or obligations under this Agreement, or with respect  to the employment
or termination thereof of the Executive by the Company, shall  be submitted to final and
binding arbitration in accordance with the Employment  Dispute Resolution Rules of the
American Arbitration Association in effect at  the time a demand for arbitration is made.
It is the intention of the Executive  and the Company that this Arbitration provision
shall be enforceable under the  Federal Arbitration Act, the Texas General Arbitration
Act, and at common law.

     7.2
Excluded Matters. This Arbitration provision shall not apply to any  claims for
workers’ compensation benefits, unemployment compensation  benefits, or claims by
the Company for injunctive and/or other equitable relief  for any violation of Section 4
of this Agreement.

7 

     8.Other Provisions.

     8.1
Notices. Any notice or other communication required or permitted  hereunder shall
be in writing and shall be delivered personally, telegraphed,  telexed, sent by facsimile
transmission or sent by certified, registered or  express mail, postage prepaid. Any such
notice shall be deemed given when so  delivered personally, telegraphed, telexed or sent
by facsimile transmission or,  if mailed, five days after the date of deposit in the
United States mail, as  follows:

		
	if to the Company, to:	 	Corporate Secretary	 
	   	 	654 N. Sam Houston Pkwy., #400	 
	   	 	Houston, Texas 77060-5914	 
	 			
	 			
	if to the Executive, to:	 	Michael M. Patton	 
	   	 	16007 Stratton Park Drive	 
	   	 	Spring, Texas 77379-6866	 
	 	

     Either
party may change its address for notice hereunder by notice to the other party.

     8.2
Entire Agreement. This Agreement contains the entire agreement and  understanding
between the parties with respect to its subject matter and  supersedes all prior
agreements, written or oral, with respect thereto;  provided, however, that
nothing herein shall in any way limit the  obligation, rights or liabilities of the
parties under any written stock option  agreement separately entered into by the parties.

     8.3
Waivers and Amendments. This Agreement may be amended, modified,  superseded,
canceled, renewed or extended, and the terms and conditions hereof  may be waived, only
by a written instrument signed by the parties or, in the  case of a waiver, by the party
waiving compliance. No delay on the part of any  party in exercising any right, power or
privilege hereunder shall operate as a  waiver thereof, nor shall any waiver on the part
of any party of any right,  power or privilege hereunder, nor any single or partial
exercise of any right,  power or privilege hereunder preclude any other or further
exercise thereof or  the exercise of any other right, power or privilege hereunder.

     8.4
Governing Law; Venue. This Agreement, except as set forth in Section 4.5  hereof,
shall be governed by, and construed in accordance with, the laws of the  State of Texas
without reference to principles governing choice or conflicts of  law. Venue shall
exclusively lie in the state and federal courts of Harris  County, Texas.

     8.5
Assignment. This Agreement, and any rights and obligations hereunder, may  not be
assigned by any party hereto without the prior written consent of the  other party,
except that the Company may assign this Agreement to any of its  subsidiaries or
affiliates without the Executive’s consent provided such  assignment does not
diminish any of the Executive’s benefits, rights or  obligations hereunder.

     8.6
Counterparts. This Agreement may be executed in two or more counterparts,  each of
which shall be deemed an original, but all of which together shall  constitute one and
the same instrument.

8 

     8.7
Headings. The headings in this Agreement are for reference purposes only  and
shall not in any way affect the meaning or interpretation of this Agreement.

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

	 	ENGlobal
Corporation 

	 	By:________________________________ 

	 	Title:
_______________________________ 

	 	(SIGNATURE
OF EXECUTIVE) 

	 	____________________________________

Michael  M. Patton 

9EXHIBIT 10.2.1, FORMS OF RESTRICTED STOCK AWARD GRANT NOTICE AND AGREEMENT

     

    Exhibit
      10.2.1

    iPass
      Inc.

    Restricted
      Stock Award Grant Notice 

    Annual
      Grant

     

    (2003
      Non-Employee Directors Plan)

     

    

     

    iPass
      Inc. (the “Company”),
      pursuant to its 2003 Non-Employee Directors Plan (the “Plan”)
      hereby
      grants to Participant the right to acquire the number of shares of the Company’s
      Common Stock set forth below (“Award”).
      This
      Award is subject to all of the terms and conditions as set forth herein and
      in
      the Restricted Stock Award Agreement and the Plan, both of which are attached
      hereto and incorporated herein in their entirety. Capitalized terms not
      otherwise defined herein shall have the meanings set forth in the Plan or the
      Restricted Stock Award Agreement. In the event of any conflict between the
      terms
      in the Award and the Plan, the terms of the Plan shall control.

     

    
      	
              Participant:

            	 
	
              Date
                of Grant:

            	 
	
              Number
                of Shares Subject to Award:

            	 
	
              Consideration:

            	
              Participant’s
                past services

            

    

    

     

    Vesting
      Schedule:
       Subject
      to the terms of Section 1(a) of the Restricted Stock Award Agreement, all such
      shares shall vest on each of the first anniversary of the Date of
      Grant
      or, if
      earlier, on the date of the next Annual
      Meeting following the date grant.

     

    Additional
      Terms/Acknowledgements:
      The
      undersigned Participant acknowledges receipt of, and understands and agrees
      to,
      this Grant Notice, the Restricted Stock Award Agreement and the Plan.
      Participant further acknowledges that as of the Date of Grant, this Grant
      Notice, the Restricted Stock Award Agreement and the Plan set forth the entire
      understanding between Participant and the Company regarding the acquisition
      of
      stock in the Company pursuant to the Award and supersede all prior oral and
      written agreements on that subject with the exception of (i) Awards previously
      granted and delivered to Participant under the Plan, and (ii) the following
      agreements only:

     

    
      	
              Other
                Agreements:

            	 
	 	 

    

     

    

    
      	
               

               

            	
              iPass
                Inc.

            	 	
              Participant:

            
	
              By:
                

            	 	 	 
	 	
              Signature

               

            	 	
              Signature

               

            
	
               

              Title:
                

            	 	
              Date:
                

            	 
	
               

              Date:

            	 	 	 

    

    

    Attachments:
       Restricted
      Stock Award Agreement and the Plan

    

     

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Attachment
      I

     

    Restricted
      Stock Award Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Attachment
      II

    

    2003
      Non-Employee Directors Plan

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      

        iPass
          Inc.

        Restricted
          Stock Award Grant Notice 

        Initial
          Grant

         

        (2003
          Non-Employee Directors Plan)

         

        

         

        iPass
          Inc. (the “Company”),
          pursuant to its 2003 Non-Employee Directors Plan (the “Plan”)
          hereby
          grants to Participant the right to acquire the number of shares of the
          Company’s
          Common Stock set forth below (“Award”).
          This
          Award is subject to all of the terms and conditions as set forth herein
          and in
          the Restricted Stock Award Agreement and the Plan, both of which are attached
          hereto and incorporated herein in their entirety. Capitalized terms not
          otherwise defined herein shall have the meanings set forth in the Plan
          or the
          Restricted Stock Award Agreement. In the event of any conflict between
          the terms
          in the Award and the Plan, the terms of the Plan shall control.

         

      

      
        	
                Participant:

              	 
	
                Date
                  of Grant:

              	 
	
                Number
                  of Shares Subject to Award:

              	 
	
                Consideration:

              	
                Participant’s
                  past services

              

      

      

       

      Vesting
        Schedule:  Subject
        to the terms of Section 1(a) of the Restricted Stock Award Agreement, one-third
        (1/3rd) of the shares shall vest on each of the first three (3) anniversaries
        of
        the Date of Grant.

       

      

        Additional
          Terms/Acknowledgements:
          The
          undersigned Participant acknowledges receipt of, and understands and agrees
          to,
          this Grant Notice, the Restricted Stock Award Agreement and the Plan.
          Participant further acknowledges that as of the Date of Grant, this Grant
          Notice, the Restricted Stock Award Agreement and the Plan set forth the
          entire
          understanding between Participant and the Company regarding the acquisition
          of
          stock in the Company pursuant to the Award and supersede all prior oral
          and
          written agreements on that subject with the exception of (i) Awards previously
          granted and delivered to Participant under the Plan, and (ii) the following
          agreements only:

         

      

      
        	
                Other
                  Agreements:

              	 
	 	 

      

       

      

      
        	
                 

                 

              	
                iPass
                  Inc.

              	 	
                Participant:

              
	
                By:
                  

              	 	 	 
	 	
                Signature

                 

              	 	
                Signature

                 

              
	
                 

                Title:
                  

              	 	
                Date:
                  

              	 
	
                 

                Date:

              	 	 	 

      

      

      Attachments:
         Restricted
        Stock Award Agreement and the Plan

      

       

      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Attachment
        I

       

      Restricted
        Stock Award Agreement

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Attachment
        II

      

      2003
        Non-Employee Directors Plan

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
       

      iPass
        Inc.

       

      2003
        Non-Employee Directors Plan

       

      Restricted
        Stock Award Agreement

       

      Pursuant
        to the Restricted Stock Award Grant Notice (the “Grant
        Notice”)
        and
        this Restricted Stock Award Agreement (the “Agreement”)
        (collectively, the “Award”)
        and in
        consideration of your services rendered or to be rendered, as applicable,
        iPass
        Inc. (the “Company”)
        has
        granted you a Restricted Stock Award under its 2003 Non-Employee Directors
        Plan
        (the “Plan”)
        for the
        number of shares of the Company’s Common Stock subject to the Award as set forth
        in the Grant Notice. Defined terms not explicitly defined in this Agreement
        but
        defined in the Plan shall have the same definitions as in the Plan.

       

      The
        details of your Award are as follows:

       

      1.   Vesting.
        Subject
        to the limitations contained herein and in the Plan, your Award will vest
        as
        follows:

       

      (a)  The
        shares will vest as provided in the Vesting Schedule set forth in your Grant
        Notice, provided that vesting will cease upon the termination of your Continuous
        Service. Notwithstanding the foregoing provisions of this Section 1(a), in
        the
        event that you are subject to the “Company Policy For Stock Trading by Officers,
        Directors and Access Employees” and any shares covered by your Award vest on a
        day (the “Original
        Vest Date”)
        that
        does not occur during a “window period” applicable to you as determined by the
        Company in accordance with such policy, then such shares shall not vest on
        such
        Original Vest Date and shall instead vest on the first to occur of the
        following: (a) the first day of the next “window period” applicable to you
        pursuant to such policy, (b) termination of your Continuous Service provided
        such termination is after the Original Vest Date, or (c) the day that is
        sixty
        (60) days after the Original Vest Date.

       

      (b)  Shares
        subject to your Award that have vested in accordance with the Vesting Schedule
        set forth in the Grant Notice and this Section 1 are “Vested
        Shares.”
        Shares
        subject to your Award that are not Vested Shares are “Unvested
        Shares.”

       

      2.  Number
        of Shares.
        The
        number of shares of Common Stock subject to your Award as referenced in your
        Grant Notice may be adjusted from time to time for capitalization adjustments
        as
        set forth in the Plan.

       

      3.  Securities
        Law Compliance.
        Notwithstanding anything to the contrary contained herein, you may not be
        issued
        any shares of Common Stock under your Award unless the shares of Common Stock
        are either then registered under the Securities Act or, if such shares of
        Common
        Stock are not then so registered, the Company has determined that such issuance
        would be exempt from the registration requirements of the Securities Act.
        Your
        Award must also comply with other applicable laws and regulations governing
        the
        Award, and you will not receive such shares if the Company determines that
        such
        receipt would not be in material compliance with such laws and
        regulations.

       

      4.  Right
        of Reacquisition.
        The
        Company shall simultaneously with the termination of your Continuous Service
        automatically reacquire (the “Reacquisition
        Right”)
        for no
        consideration all of the Unvested Shares, unless the Company
        agrees to waive its Reacquisition Right as to some or all of the Unvested
        Shares. Any such waiver shall be exercised by the Company by written notice
        to
        you or your representative (with a copy to the Escrow Agent, as defined below)
        within ninety (90) days after the termination of your Continuous Service,
        and
        the Escrow Agent may then release to you the number of Unvested Shares not
        being
        reacquired by the Company. If the Company does not waive its Reacquisition
        Right
        as to all of the Unvested Shares, then upon such termination of your Continuous
        Service, the Escrow Agent shall transfer to the Company the number of Unvested
        Shares the Company is reacquiring. The Reacquisition Right shall expire when
        all
        of the shares have become Vested Shares in accordance with Section 1.

       

      5.  Change
        in Control. 

       

      (a)  In
        the
        event of a Change in Control, the treatment of your Award will be governed
        by
        the provisions of Section 12(c) of the Plan, which may include the ability
        of
        the Company to assign the Reacquisition Right to its successor (or the
        successor’s parent company), if any, in connection with the Change in Control.
        In addition, to the extent the Reacquisition Right remains in effect following
        such Change in Control, it shall apply to the new capital stock or other
        property received in exchange for the Common Stock in consummation of the
        Change
        in Control, but only to the extent the Common Stock was at the time covered
        by
        such right.

       

      (b)  In
        addition, if a Change in Control occurs and if as of, or within twelve (12)
        months after, the effective time of such Change in Control, your Continuous
        Service terminates due to an involuntary termination (not including death
        or
        Disability), then, as of the date of termination of Continuous Service, the
        vesting of your Award shall be accelerated in full. Where, in connection
        with
        the Change in Control, you are required to resign your position, such
        resignation shall be considered an involuntary termination.

       

      6.  Escrow
        of Unvested Common Stock. As
        security for your faithful performance of the terms of this Agreement and
        to
        insure the availability for delivery of your Common Stock in connection with
        the
        Reacquisition Right provided in Section 4 above, you agree to the following
        “Joint
        Escrow”
        and
“Joint
        Escrow Instructions,”
        and you
        and the Company hereby authorize and direct the Director, Investor Relations
        of
        the Company (“Escrow
        Agent”)
        to hold
        the documents delivered to Escrow Agent pursuant to the terms of this Agreement
        and of your Grant Notice, in accordance with the following Joint Escrow
        Instructions:

       

      (a)  In
        the
        event your Continuous Service terminates, the Company shall, pursuant to
        the
        Reacquisition Right in Section 4 above, automatically reacquire for no
        consideration all Unvested Shares, within the meaning of Section 1 above,
        as of
        the date of such termination, unless the Company elects to waive such right
        as
        to some or all of the Unvested Shares. If the Company (or its assignee) elects
        to waive the Reacquisition Right, the Company or its assignee will give you
        and
        Escrow Agent a written notice specifying the number of Unvested Shares not
        to be
        reacquired. You and the Company hereby irrevocably authorize and direct Escrow
        Agent to close the transaction contemplated by such notice as soon as
        practicable

       

      (b)  following
        the date of termination of your Continuous Service in accordance with the
        terms
        of this Agreement and the notice of waiver, if any.

       

      (c)  Vested
        Shares shall be delivered to you upon your request given in the manner provided
        in Section 16 for giving notices.

       

      (d)  At
        any
        closing involving the transfer or delivery of some or all of the property
        subject to the Grant Notice and this Agreement, Escrow Agent is directed
        (a) to date any stock assignments necessary for the transfer in question,
        (b) to fill in the number of Unvested Shares being transferred, and
        (c) to deliver same, together with the certificate, if any, evidencing the
        Unvested Shares to be transferred, to you or the Company, as
        applicable.

       

      (e)  You
        irrevocably authorize the Company to deposit with Escrow Agent the certificates,
        if any, evidencing the Unvested Shares to be held by Escrow Agent hereunder
        and
        any additions and substitutions to the Unvested Shares as specified in this
        Agreement. You do hereby irrevocably constitute and appoint Escrow Agent
        as your
        attorney-in-fact and agent for the term of this escrow to execute with respect
        to such securities and other property all documents of assignment and/or
        transfer and all stock certificates necessary or appropriate to make all
        securities negotiable and complete any transaction herein
        contemplated.

       

      (f)  This
        escrow shall terminate upon the expiration or application in full of the
        Reacquisition Right, whichever occurs first, and the completion of the tasks
        contemplated by these Joint Escrow Instructions; provided,
        however,
        that
        this escrow shall not terminate with respect to any Unvested Shares that
        vest,
        but for which you have not satisfied any applicable federal, state, local
        and
        foreign tax withholding obligation of the Company or an Affiliate which arise
        in
        connection with vesting of the Unvested Shares.

       

      (g)  If,
        at
        the time of termination of this escrow, Escrow Agent should have in its
        possession any documents, securities, or other property belonging to you,
        Escrow
        Agent shall deliver all of same to you and shall be discharged of all further
        obligations hereunder.

       

      (h)  Except
        as
        otherwise provided in these Joint Escrow Instructions, Escrow Agent’s duties
        hereunder may be altered, amended, modified, or revoked only by a writing
        signed
        by all of the parties hereto.

       

      (i)  Escrow
        Agent shall be obligated only for the performance of such duties as are
        specifically set forth herein and may rely and shall be protected in relying
        or
        refraining from acting on any instrument reasonably believed by Escrow Agent
        to
        be genuine and to have been signed or presented by the proper party or parties
        or their assignees. Escrow Agent shall not be personally liable for any act
        Escrow Agent may do or omit to do hereunder as Escrow Agent or as
        attorney-in-fact for you while acting in good faith and any act done or omitted
        by Escrow Agent pursuant to the advice of Escrow Agent’s own attorneys shall be
        conclusive evidence of such good faith.

       

      (j)  Escrow
        Agent is hereby expressly authorized to disregard any and all warnings given
        by
        any of the parties hereto or by any other person or corporation, excepting
        only
        orders or process of courts of law, and is hereby expressly authorized to
        comply
        with and obey orders, judgments, or decrees of any court. In case Escrow
        Agent
        obeys or complies with any

       

      (k)  such
        order, judgment, or decree of any court, Escrow Agent shall not be liable
        to any
        of the parties hereto or to any other person, firm, or corporation by reason
        of
        such compliance, notwithstanding any such order, judgment, or decree being
        subsequently reversed, modified, annulled, set aside, vacated, or found to
        have
        been entered without jurisdiction.

       

      (l)  Escrow
        Agent shall not be liable in any respect on account of the identity, authority,
        or rights of the parties executing or delivering or purporting to execute
        or
        deliver this Agreement or any documents or papers deposited or called for
        hereunder.

       

      (m)  Escrow
        Agent shall not be liable for the outlawing of any rights under any statute
        of
        limitations with respect to these Joint Escrow Instructions or any documents
        deposited with Escrow Agent.

       

      (n)  Escrow
        Agent’s responsibilities as Escrow Agent hereunder shall terminate if Escrow
        Agent shall cease to be the Director, Investor Relations of the Company or
        if
        Escrow Agent shall resign by written notice to each party. In the event of
        any
        such termination, the Company may appoint any officer or assistant officer
        of
        the Company or other person who in the future assumes the position of Director,
        Investor Relations of the Company as successor Escrow Agent and you hereby
        confirm the appointment of such successor or successors as your attorney-in-fact
        and agent to the full extent of such successor Escrow Agent’s
        appointment.

       

      (o)  If
        Escrow
        Agent reasonably requires other or further instruments in connection with
        these
        Joint Escrow Instructions or obligations in respect hereto, the necessary
        parties hereto shall join in furnishing such instruments.

       

      (p)  It
        is
        understood and agreed that should any dispute arise with respect to the delivery
        and/or ownership or right of possession of the securities, Escrow Agent is
        authorized and directed to retain in its possession without liability to
        anyone
        all or any part of said securities until such dispute shall have been settled
        either by mutual written agreement of the parties concerned or by a final
        order,
        decree, or judgment of a court of competent jurisdiction after the time for
        appeal has expired and no appeal has been perfected, but Escrow Agent shall
        be
        under no duty whatsoever to institute or defend any such
        proceedings.

       

      (q)  By
        signing this Agreement below, Escrow Agent becomes a party hereto only for
        the
        purpose of said Joint Escrow Instructions in this Section 6; Escrow Agent
        does
        not become a party to any other rights and obligations of this Agreement
        apart
        from those in this Section 6.

       

      (r)  Escrow
        Agent shall be entitled to employ such legal counsel and other experts as
        Escrow
        Agent may deem necessary properly to advise Escrow Agent in connection with
        Escrow Agent’s obligations hereunder. Escrow Agent may rely upon the advice of
        such counsel, and may pay such counsel reasonable compensation therefor.
        The
        Company shall be responsible for all fees generated by such legal counsel
        in
        connection with Escrow Agent’s obligations hereunder.

       

      (s)  These
        Joint Escrow Instructions set forth in this Section 6 shall be binding upon
        and
        inure to the benefit of the parties hereto and their respective successors
        and
        permitted assigns. It is understood and agreed that references to “Escrow Agent”
or “Escrow Agent’s”

       

      (t)  herein
        refer to the original Escrow Agent and to any and all successor Escrow Agents.
        It is understood and agreed that the Company may at any time or from time
        to
        time assign its rights under the Agreement and these Joint Escrow Instructions
        in whole or in part. 

       

      7.  Execution
        of Documents.
        You
        hereby acknowledge and agree that the manner selected by the Company by which
        you indicate your consent to your Grant Notice is also deemed to be your
        execution of your Grant Notice and of this Agreement. You further agree that
        such manner of indicating consent may be relied upon as your signature for
        establishing your execution of any documents to be executed in the future
        in
        connection with your Award.

       

      8.  Irrevocable
        Power of Attorney. You
        constitute and appoint the Company’s Director, Investor Relations of the Company
        as attorney-in-fact and agent to transfer said Common Stock on the books
        of the
        Company with full power of substitution in the premises, and to execute with
        respect to such securities and other property all documents of assignment
        and/or
        transfer and all stock certificates necessary or appropriate to make all
        securities negotiable and complete any transaction herein contemplated. This
        is
        a special power of attorney coupled with an interest (specifically, the
        Company’s underlying security interest in retaining the shares of Common Stock
        in the event you do not perform the associated services for the Company),
        and is
        irrevocable and shall survive your death or legal incapacity. This power
        of
        attorney is limited to the matters specified in this Agreement.

       

      9.  Rights
        as Stockholder.
        Subject
        to the provisions of this Agreement, you shall have the right to exercise
        all
        rights and privileges of a stockholder of the Company with respect to the
        shares
        deposited in
        the
        Joint Escrow. You shall be deemed to be the holder of the shares for purposes
        of
        receiving any dividends that may be paid with respect to such shares and
        for
        purposes of exercising any voting rights relating to such shares, even if
        some
        or all of the shares are Unvested Shares.

       

      10.  Limitations
        on Transfer of the Common Stock.
        In
        addition to any other limitation on transfer created by applicable securities
        laws, you shall not transfer, sell, assign, hypothecate, donate, encumber,
        or
        otherwise dispose of any interest in the Common Stock while such shares of
        Common Stock are Unvested Shares or continue to be held in the Joint Escrow.
        After any Common Stock has been released from the Joint Escrow, you shall
        not
        transfer, sell, assign, hypothecate, donate, encumber, or otherwise dispose
        of
        any interest in the Common Stock except in compliance with the provisions
        herein
        and applicable securities laws.

       

      11.  Restrictive
        Legends.
        The
        certificates representing the Common Stock shall have endorsed thereon
        appropriate legends as determined by the Company.

       

      12.  Non-transferability
        of the Award.
        Your
        Award is not transferable except by will or by the laws of descent and
        distribution.

       

      13.  Award
        not a Service Contract.
        Your
        Award is not an employment or service contract, and nothing in your Award
        shall
        be deemed to create in any way whatsoever any obligation on your part to
        continue in the employ of the Company or an Affiliate, or of the Company
        or an
        Affiliate to continue your employment. In addition, nothing in your Award
        shall

       

      14.  obligate
        the Company or an Affiliate, their respective stockholders, Boards of Directors,
        Officers or Employees to continue any relationship that you might have as
        a
        Director or Consultant for the Company or an Affiliate.

       

      15.  Withholding
        Obligations.

       

      (a)  At
        the
        time your Award is granted, or at any time thereafter as requested by the
        Company, you hereby authorize withholding from payroll and any other amounts
        payable to you, and otherwise agree to make adequate provision in cash for,
        as
        determined by the Company, any sums required to satisfy the federal, state,
        local and foreign tax withholding obligations of the Company or an Affiliate,
        if
        any, which arise in connection with your Award. In the Company’s sole
        discretion, the Company may elect, and you hereby authorize the Company,
        to
        withhold Vested Shares in such amounts as the Company determines are necessary
        to satisfy your obligation pursuant to the preceding sentence.

       

      (b)  Unless
        the tax withholding obligations of the Company or any Affiliate are timely
        satisfied as reasonably determined by the Company, then the Company shall
        have
        no obligation to issue a certificate for such shares or release such shares
        from
        any escrow provided for herein and any shares held in escrow shall be
        automatically reacquired by the Company for no consideration. 

       

      16.  Tax
        Consequences.  You
        have
        reviewed with your own tax advisors the federal, state, local and foreign
        tax
        consequences of this investment and the transactions contemplated by this
        Agreement. You are relying solely on such advisors and not on any statements
        or
        representations of the Company or any of its agents. You understand that
        you
        (and not the Company) shall be responsible for your own tax liability that
        may
        arise as a result of this investment or the transactions contemplated by
        this
        Agreement. You understand that Section 83 of the Code taxes as ordinary income
        to you the fair market value of the shares of Common Stock as of the date
        any
        restrictions on the shares lapse (that is, as of the date on which part or
        all
        of the shares vest). In this context, “restriction” includes the right of the
        Company to reacquire the shares pursuant to its Reacquisition
        Right.

       

      17.  Notices.
        Any
        notice or request required or permitted hereunder shall be given in writing
        to
        each of the other parties hereto and shall be deemed effectively given on
        the
        earlier of (a) the date of personal delivery, including delivery by express
        courier, or (b) the date that is five days after deposit in the United States
        Post Office (whether or not actually received by the addressee), by registered
        or certified mail with postage and fees prepaid, addressed at the following
        addresses, or at such other address(es) as a party may designate by ten days’
advance written notice to each of the other parties hereto: 

       

      
        	
                Company:

              	
                iPass
                  Inc.

                3800
                  Bridge Parkway 

                Redwood
                  Shores, CA 94065 

                Attn:
                  Director,
                  Investor Relations of the Company

              
	
                You:

              	
                Your
                  address as on file with the Company’s Human Resources Department at the
                  time notice is given

              
	
                Escrow
                  Agent:

              	
                __________
                  , Director,
                  Investor Relations

                iPass
                  Inc.

                3800
                  Bridge Parkway

                Redwood
                  Shores, CA 94065

              

      

      18.  Miscellaneous.

       

      (a)  The
        rights and obligations of the Company under your Award shall be transferable
        to
        any one or more persons or entities, and all covenants and agreements hereunder
        shall inure to the benefit of, and be enforceable by, the Company’s successors
        and assigns. Your rights and obligations under your Award may only be assigned
        with the prior written consent of the Company. 

       

      (b)  You
        agree
        upon request to execute any further documents or instruments necessary or
        desirable in the sole determination of the Company to carry out the purposes
        or
        intent of your Award.

       

      (c)  You
        acknowledge and agree that you have reviewed your Award in its entirety,
        have
        had an opportunity to obtain the advice of counsel prior to executing and
        accepting your Award and fully understand all provisions of your
        Award.

       

      19.  Governing
        Plan Document.
        Your
        Award is subject to all the provisions of the Plan, the provisions of which
        are
        hereby made a part of your Award, and is further subject to all interpretations,
        amendments, rules and regulations which may from time to time be promulgated
        and
        adopted pursuant to the Plan. In the event of any conflict between the
        provisions of your Award and those of the Plan, the provisions of the Plan
        shall
        control.

       

      

      *
        * * * *

      

      

      This
        Restricted Stock Award Agreement shall be deemed to be signed by the Company
        and
        the Participants upon the signing by the Participant of the Restricted Stock
        Grant Notice to which it is attached.

      

      

      The
        Escrow Agent hereby acknowledges and accepts its rights and responsibilities
        pursuant to Section 6 above. 

      

      

      ___________________________

      [Name]

      Director,
        Investor Relations of the Company 

      Escrow
        Agent

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