Document:

ex10-2.htm

    
      

    

    Exhibit
10.2

     

    
      WASTE
CONNECTIONS, INC.

      CONSULTANT
INCENTIVE PLAN

       

      
        	
                1.

              	
                PURPOSE.

              

      

       

      The
purpose of the Plan is to provide a means for the Company and any Subsidiary,
through the grant of Warrants to selected Consultants in connection with
business development services rendered by such Consultants relating to
acquisitions by the Company or a Subsidiary or other services approved by the
Board, to attract and retain persons of ability as Consultants, and to motivate
such persons to exert their best efforts on behalf of the Company and any
Subsidiary.

       

      
        	
                2.

              	
                DEFINITIONS.

              

      

       

      (a)           “Board” means the Company’s
Board of Directors.

       

      (b)           “Change in Control”
means:

       

      (i)          any
reorganization, liquidation or consolidation of the Company, or any merger or
other business combination of the Company with any other corporation, other than
any such merger or other combination that would result in the voting securities
of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such transaction;

       

      (ii)         any
sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all, or substantially all, of the assets of the
Company; or

       

      (iii)        any
“person” (as defined in Section 13(d) and 14(d) of the Exchange Act) shall
become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of fifty percent (50%) or more of the Company’s
outstanding voting securities (except that for purposes of this definition,
“person” shall not include any person (or any person that controls, is
controlled by or is under common control with such person) who as of the date of
a Warrant Agreement owns ten percent (10%) or more of the total voting power
represented by the outstanding voting securities of the Company, or a trustee or
other fiduciary holding securities under any employee benefit plan of the
Company, or a corporation that is owned directly or indirectly by the
stockholders of the Company in substantially the same percentage as their
ownership of the Company).

       

      A
transaction shall not constitute a Change in Control if its sole purpose is to
change the state of the Company’s incorporation or to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company’s securities immediately before such transaction.

       

      (c)           “Code” means the Internal
Revenue Code of 1986, as amended from time to time.

       

      (d)           “Committee” means a committee
appointed by the Board in accordance with section 4(b) of the
Plan.

       

      (e)           “Company” means Waste
Connections, Inc., a Delaware corporation.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (f)           “Consultant” means any natural
person, including an advisor, engaged by the Company or a Subsidiary to render
business development consulting or other bona fide services to the Company or
any Subsidiary as approved by the Board and who is compensated for such
services; provided that such services are not in connection with the Company’s
sale of securities in a capital-raising transaction and do not directly or
indirectly promote or maintain a market for the Company’s securities; and
provided further that the term “Consultant” shall not include any Officers or
Directors.

       

      (g)           “Director” means a member of
the Company’s Board.

       

      (h)           “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

       

      (i)           “Fair Market Value” means, as
of any date, the value of Stock determined as follows:

       

      (i)           If
the Stock is listed on any established stock exchange or a national market
system, including without limitation the New York Stock Exchange, its Fair
Market Value shall be the closing sales price for the Stock (or the closing bid,
if no sales were reported) as quoted on such exchange or system on the market
trading day of the date of determination, or, if the date of determination is
not a market trading day, the last market trading day prior to the date of
determination, in each case as reported in The Wall Street Journal or such other
sources as the Board deems reliable;

       

      (ii)         If
the Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean between the
high bid and low asked prices for the Stock on the market trading day of the
date of determination, or, if the date of determination is not a market trading
day, the last market trading day prior to the date of determination;
or

       

      (iii)       
In absence of an established market for the Stock, the Fair Market Value thereof
shall be determined in good faith by the Board.

       

      (j)           “Holder” means a Consultant
who holds an outstanding Warrant.

       

      (k)           “Officer” means any officer of
the Company or a Subsidiary.

       

      (l)           “Plan” means this Waste
Connections, Inc. Consultant Incentive Plan.

       

      (m)           “Securities Act” means the
Securities Act of 1933, as amended.

       

      (n)           “Stock” means the Common Stock
of the Company.

       

      (o)           “Subsidiary” means any
corporation that at the time a Warrant is granted under the Plan qualifies as a
subsidiary of the Company under the definition of “subsidiary corporation”
contained in section 424(f) of the Code, or any similar provision hereafter
enacted.

       

      (p)           “Warrant” means a Warrant
granted pursuant to this Plan.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (q)           “Warrant Agreement” means a
written agreement between the Company and a Holder evidencing the terms and
conditions of an individual Warrant grant.  Each Warrant Agreement
shall be subject to the terms and conditions of the Plan.

       

      
        	
                3.

              	
                SHARES
      SUBJECT TO THE PLAN.

              

      

       

      Subject
to adjustment as provided in section 6 for changes in Stock, the Stock that may
be sold pursuant to Warrants shall not exceed in the aggregate 450,000
shares.  Such number of shares shall be reserved for Warrants (subject
to adjustment as provided in section 6).  If any Warrant for any
reason terminates, expires or is cancelled without having been exercised in
full, the Stock not purchased under such Warrant shall revert to and again
become available for issuance under the Plan.

       

      
        	
                4.

              	
                ADMINISTRATION.

              

      

       

      (a)           The
Plan shall be administered by the Board or, at the election of the Board, by a
Committee, as provided in subsection (b).  Subject to the Plan, the
Board shall:

       

      (i)          determine
and designate from time to time those Consultants to whom Warrants are to be
granted;

       

      (ii)         authorize
the granting of Warrants;

       

      (iii)       determine
the number of shares subject to each Warrant and the Purchase Price of each
Warrant;

       

      (iv)        determine
the time or times when and the manner in which each Warrant shall be exercisable
and the duration of the exercise period;

       

      (v)          construe
and interpret the Plan and the Warrants, and establish, amend and revoke rules
and regulations for the Plan’s administration, and correct any defect, omission
or inconsistency in the Plan or any Warrant Agreement in a manner and to the
extent it deems necessary or expedient to make the Plan fully
effective;

       

      (vi)        approve
forms of Warrant Agreements for use under the Plan; and

       

      (vii)       make
such other determinations as it may be authorized to make in the Plan and as it
may deem necessary and desirable for the purposes of the Plan.

       

      (b)           The
Board may delegate administration of the Plan to one or more Committees of the
Board.  Each such Committee shall consist of one or more members
appointed by the Board.  Subject to the foregoing, the Board may from
time to time increase the size of any such Committee and appoint additional
members, remove members (with or without cause) and appoint new members in
substitution therefor, or fill vacancies, however caused.  If the
Board delegates administration of the Plan to a Committee, the Committee shall
have the same powers theretofore possessed by the Board with respect to the
administration of the Plan (and references in this Plan to the Board shall apply
to the Committee), subject, however, to such resolutions, not inconsistent with
the provisions of the Plan, as may be adopted from time to time by the
Board.  The Board may abolish any such Committee at any time and
revest in the Board the previously delegated administration of the
Plan.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      
        	
                5.

              	
                TERMS
      AND CONDITIONS OF WARRANTS.

              

      

       

      Each
Warrant granted shall be evidenced by a Warrant Agreement in substantially the
form attached hereto as Annex A or such other form as may be approved by the
Board.  Each Warrant Agreement shall include the following terms and
conditions and such other terms and conditions as the Board may deem
appropriate:

       

      (a)           WARRANT TERM.  Each
Warrant Agreement shall specify the term for which the Warrant thereunder is
granted and shall provide that such Warrant shall expire at the end of such
term; provided that the Board may extend such term.

       

      (b)           PURCHASE
PRICE.  Each Warrant Agreement shall specify the purchase price
per share, as determined by the Board at the time the Warrant is granted, which
purchase price shall in no event be less than the Fair Market Value when the
Warrant is granted.

       

      (c)           VESTING.  Each
Warrant Agreement shall specify when it is exercisable.  The total
number of shares of Stock subject to a Warrant may, but need not, be allotted in
periodic installments (which may, but need not be, equal).  A Warrant
Agreement may provide that from time to time during each of such installment
periods, the Warrant may become exercisable (“vest”) with respect to some
or all of the shares allotted to that period, and may be exercised with respect
to some or all of the shares allotted to such period or any prior period as to
which the Warrant shall have become vested but shall not have been fully
exercised.  A Warrant may be subject to such other terms and
conditions on the time or times when it may be exercised (which may be based on
performance or other criteria) as the Board deems appropriate.

       

      (d)           PAYMENT OF PURCHASE PRICE ON
EXERCISE.  Each Warrant Agreement shall provide that the
purchase price of the shares as to which such Warrant may be exercised shall be
paid to the Company at the time of exercise either (i) in cash or by
certified or official bank check, (ii) by “net issue exercise” described in
the Warrant Agreement, or (iii) in any other form or combination of forms
of legal consideration that may be acceptable to the Board.

       

      (e)           NONTRANSFERABILITY.  A
Warrant shall not be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of by the Holder during his or her lifetime, whether by
operation of law or otherwise, other than by will or the laws of descent and
distribution applicable to the Holder, and shall not be made subject to
execution, attachment or similar process; provided that the Board may in its
discretion at the time of approval of the grant of a Warrant or thereafter
permit a Holder to transfer a Warrant to a trust or other entity established by
the Holder for estate planning purposes, pursuant to a domestic relations order,
or as a gift to certain family members, and may permit further transferability
or impose conditions or limitations on any permitted
transferability.  Otherwise, during the lifetime of a Holder, a
Warrant shall be exercisable only by such Holder.

       

      (f)           CONDITIONS
ON EXERCISE OF WARRANTS AND ISSUANCE OF SHARES.

       

      (i)          SECURITIES LAW
COMPLIANCE.  The Plan, the grant and exercise of Warrants
thereunder and the obligation of the Company to sell and deliver shares of Stock
on exercise of Warrants shall be subject to all applicable Federal and state
laws, rules and regulations and to such approvals by any government or
regulatory agency as may be required, in the opinion of the
Board.  Warrants may not be exercised if the issuance of shares of
Stock upon exercise would constitute a violation of any applicable federal,
state or foreign securities laws or other law or regulations or the requirements
of any stock exchange or market system upon which the Stock may then be
listed.  In addition, no Warrant may be exercised unless (a) a
registration statement under the Securities Act shall at the time of exercise of
the Warrant be in effect with respect to the shares of Stock issuable upon
exercise of the Warrant or (b) in the opinion of legal counsel to the
Company, the shares of Stock issuable upon exercise of the Warrant may be issued
in accordance with the terms of an applicable exemption from the registration
requirements of the Securities Act.  The inability of the Company to
obtain from any regulatory body having jurisdiction the authority, if any,
deemed by the Company’s legal counsel to be necessary to the lawful issuance and
sale of any shares of Stock hereunder shall relieve the Company of any liability
in respect of the failure to issue or sell such shares as to which such
requisite authority shall not have been obtained.  As a condition to
the exercise of any Warrant, the Company may require the Holder to satisfy any
qualifications that may be necessary or appropriate to evidence compliance with
any applicable law or regulation and to make any representation or warranty with
respect thereto as may be requested by the Company.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (ii)         INVESTMENT
REPRESENTATION.  The Company may require any Holder, or any
person to whom a Warrant is transferred, as a condition of exercising such
Warrant, to (A) give written assurances satisfactory to the Company as to
the Holder’s knowledge and experience in financial and business matters or to
employ a purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters, and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Warrant, and (B) to
give written assurances satisfactory to the Company stating that such person is
acquiring the shares of Stock subject to the Warrant for such person’s own
account and not with any present intention of selling or otherwise distributing
the shares.  The foregoing requirements, and any assurances given
pursuant to such requirements, shall not apply if (1) the issuance of the
shares of Stock on the exercise of the Warrant has been registered under a then
currently effective registration statement under the Securities Act, or
(2) counsel for the Company determines as to any particular requirement
that such requirement need not be met in the circumstances under the then
applicable securities laws.  The Company may, with the advice of its
counsel, place such legends on stock certificates issued under the Plan as the
Company deems necessary or appropriate to comply with applicable securities
laws, including, but not limited to, legends restricting the transfer of the
Stock.

       

      
        	
                6.

              	
                ADJUSTMENTS
      ON CERTAIN EVENTS.

              

      

       

      (a)           CHANGE IN
CONTROL.  Each Warrant Agreement shall provide that if the
Company is subject to a Change in Control:

       

      (i)          immediately
prior thereto all outstanding Warrants shall be automatically accelerated and
become immediately exercisable as to all of the shares of Stock covered thereby,
notwithstanding anything to the contrary in the Plan or the Warrant Agreement;
and

       

      (ii)      
  the Board may, in its discretion, and on such terms and conditions
as it deems appropriate, by resolution adopted by the Board or by the terms of
any agreement of sale, merger or consolidation giving rise to the Change in
Control, provide that, without the Holder’s consent, the shares subject to a
Warrant may (A) continue as an immediately exercisable Warrant of the Company
(if the Company is the surviving corporation), (B) be assumed as immediately
exercisable Warrants by the surviving corporation or its parent, (C) be
substituted by immediately exercisable warrants granted by the surviving
corporation or its parent with substantially the same terms for the Warrant, or
(D) be cancelled after payment to the Holder of an amount in cash or other
consideration delivered to stockholders of the Company in the transaction
resulting in a Change in Control of the Company equal to the total number of
shares subject to the Warrant multiplied by the remainder of (1) the amount per
share to be received by holders of the Company’s Stock in the sale, merger or
consolidation, minus (2) the exercise price per share of the shares subject to
the Warrant.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (b)           STOCK DIVIDENDS, STOCK SPLITS,
ETC.  The exercise price shall be subject to adjustment from
time to time in the event that the Company shall (i) pay a dividend in, or make
a distribution of, shares of Stock (or securities convertible into, exchangeable
for or otherwise entitling a holder thereof to receive Stock), or evidences of
indebtedness or other property or assets, on outstanding Stock, (ii) subdivide
the outstanding shares of Stock into a greater number of shares, (iii) combine
the outstanding shares of Stock into a smaller number of shares or (iv) issue
any shares of its capital stock in a reclassification of the Stock (including
any such reclassification in connection with a consolidation or merger in which
the Company is the resulting corporation).  An adjustment made
pursuant to this section 6(b) shall, in the case of a dividend or distribution,
be made as of the record date therefor and, in the case of a subdivision,
combination or reclassification, be made as of the effective date
thereof.  In any such case, the total number of shares and the number
of shares or other units of such other securities purchasable on exercise of the
Warrant immediately prior thereto shall be adjusted so that the Holder shall be
entitled to receive at the same aggregate purchase price the number of shares of
Stock and the number of shares or other units of such other securities that the
Holder would have owned or would have been entitled to receive immediately
following the occurrence of any of the events described above had the Warrant
been exercised in full immediately prior to the occurrence (or applicable record
date) of such event.  If, as a result of any adjustment pursuant to
this section 6(b), the Holder shall become entitled to receive shares of two or
more classes or series of securities of the Company, the Board shall equitably
determine the allocation of the adjusted exercise price between or among shares
or other units of such classes or series and shall notify the Holder of such
allocation.

       

      (c)           FURTHER
ADJUSTMENTS.   If at any time, as a result of an
adjustment made pursuant to this section 6, a Holder shall become entitled to
receive any shares of capital stock or shares or other units of other securities
or property or assets other than Stock, the number of such other shares or units
so receivable on any exercise of the Warrant shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the shares of Stock in this section 6, and the
provisions of this Agreement with respect to the shares of Stock shall apply,
with necessary changes in points of detail, on like terms to any such other
shares or units.

       

      (d)           NO FRACTIONAL
SHARES.  All calculations under this section 6 shall be, in the
case of purchase price, rounded up to the nearest cent or, in the case of
shares, rounded down to the nearest one-hundredth of a share, but in no event
shall the Company be obligated to issue any fractional share on any exercise of
a Warrant.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      
        	
                7.

              	
                AMENDMENT
      OF THE PLAN.

              

      

       

      (a)           The
Board may from time to time amend or modify the Plan for any reason; provided
that the Company will seek shareholder approval for any change if and to the
extent required by applicable law, regulation or rule.

       

      (b)           Rights
and obligations under any Warrant granted before amendment of the Plan shall not
be altered or impaired by any amendment, unless the Holder consents in
writing.

       

      
        	
                8.

              	
                TERMINATION
      OR SUSPENSION OF THE PLAN.

              

      

       

      The Board
may suspend or terminate the Plan at any time for any reason.  Unless
sooner terminated, the Plan shall terminate on the day prior to the tenth
anniversary of the date the Plan is adopted by the Board.  No Warrants
may be granted under the Plan while the Plan is suspended or after it is
terminated.  Rights and obligations under any Warrant granted while
the Plan is in effect shall not be altered or impaired by suspension or
termination of the Plan, except with the written consent of the
Holder.

       

      
        	
                9.

              	
                EFFECTIVE
      DATE OF THE PLAN.

              

      

       

      The Plan
shall be effective immediately upon its adoption by the Board.

       

      
        	
                10.

              	
                WITHHOLDING
      TAXES.

              

      

       

      Whenever
the Company proposes or is required to issue or transfer shares of Stock under
the Plan, the Company shall have the right to require the grantee to remit to
the Company an amount sufficient to satisfy any Federal, state or local
withholding tax requirements prior to the delivery of any certificate or
certificates for such shares.  Alternatively, the Company may issue or
transfer such shares net of the number of shares sufficient to satisfy the
minimum withholding tax requirements.  For withholding tax purposes,
the shares of Stock shall be valued on the date the withholding obligation is
incurred.

       

      
        	
                11.

              	
                NO
      RIGHTS AS STOCKHOLDER.

              

      

       

      No
Holder, as such, shall have any rights as a stockholder of the
Company.

       

      
        	
                12.

              	
                NO
      RIGHTS TO CONTINUED ENGAGEMENT.

              

      

       

      The Plan
and any Warrants granted under the Plan shall not confer on any Holder any right
with respect to continuation of engagement by the Company or any Subsidiary as a
Consultant or otherwise, nor shall they interfere in any way with the right of
the Company or any Subsidiary that engages a Consultant to terminate the
Consultant’s engagement at any time.

       

      
        	
                13.

              	
                INDEMNIFICATION.

              

      

       

      In
addition to such other rights of indemnification as they may have as Officers or
Directors, Officers or Directors to whom authority to act for the Board or the
Company with respect to the Plan is delegated shall be indemnified by the
Company against all reasonable expenses, including attorneys’ fees, actually and
necessarily incurred in connection with the defense of any action, suit or
proceeding, or in connection with any appeal therein, to which they or any of
them may be a party by reason of any action taken or failure to act under or in
connection with the Plan, or any right granted hereunder, and against all
amounts paid by them in settlement thereof (provided such settlement is approved
by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such person is liable for gross negligence, bad faith or
intentional misconduct in duties; provided, however, that within sixty (60) days
after the institution of such action, suit or proceeding, such person shall
offer to the Company, in writing, the opportunity at its own expense to handle
and defend the same.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      ANNEX A

      
 

      NEITHER
THIS WARRANT NOR THE SHARES OF COMMON STOCK PURCHASABLE ON EXERCISE HEREOF HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
ENCUMBERED, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT THEREFOR UNDER
SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO THE
CORPORATION AND CONCURRED IN BY THE CORPORATION’S COUNSEL TO THE EFFECT THAT
SUCH REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR SUCH TRANSACTION COMPLIES
WITH RULES PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION UNDER SAID
ACT.

       

      
        	
                Warrant
      No. ___

              	
                Warrant
      to Purchase

              
	 
      	
                _________
      shares of

              
	 
      	
                Common
      Stock (Subject

              
	 
      	
                to
      Adjustment)

              

      

       

       

      WARRANT
TO PURCHASE COMMON STOCK

      of

      WASTE
CONNECTIONS, INC.

       

      Void
after ________________________

       

      This
certifies that for value received, _____________ (“Holder”) is entitled, subject
to the terms set forth below, at any time or from time to time beginning on
_______________ and before 5:00 p.m., Pacific standard time, on
_______________________, to purchase from Waste Connections, Inc., a Delaware
corporation (the “Company”), up to ____________ fully paid and nonassessable
shares of the common stock, par value $0.01 per share, of the Company (the
“Common Stock”) as constituted on _______________________ (the “Issue Date”),
upon surrender hereof at the principal office of the Company, with the
subscription form attached hereto properly completed and duly executed, and
simultaneous payment therefor in lawful money of the United States at the price
of $______ per share, subject to adjustment as provided in Section 4 hereof (the
“Purchase Price”).  The number and character of such shares of Common
Stock are also subject to adjustment as provided below.  Such number
shall be reduced at such time or times as this Warrant is exercised in part by
the number of shares as to which this Warrant is then exercised.  The
term “Warrant Stock” shall mean, unless the context otherwise requires, the
stock and other securities and property at any time receivable upon the exercise
of this Warrant.  The term “warrant” as used herein shall include this
Warrant and any warrants delivered in substitution or exchange therefor as
provided herein.

       

      1.           Method of Exercise;
Payment.  Subject to compliance with the provisions of Section
7 hereof:

       

      A.         Cash
Exercise.  This Warrant may be exercised as a whole, or in part
from time to time, by the Holder by delivering this Warrant, for cancellation if
it is exercised as a whole or for endorsement if it is exercised in part,
together with a Subscription in the form appearing at the end hereof properly
completed and duly executed by or on behalf of the Holder, to the Company at its
office in Folsom, California (or at the office of the agency maintained for such
purpose), accompanied by payment in cash or by certified or official bank check
payable to the order of the Company, in an aggregate amount equal to the
Purchase Price as then adjusted times the number of shares of Warrant Stock as
to which this Warrant is then being exercised.  In the event of any
such exercise that is partial, the Company shall endorse this Warrant as having
been exercised to that extent and return this Warrant to the
Holder.  This Warrant shall be deemed to have been exercised
immediately prior to the close of business on the date of its surrender for
exercise as provided above, and the person entitled to receive the shares of
Warrant Stock issuable upon such exercise shall be treated for all purposes as
the holder of such shares of record as of the close of business on such
date.

       

      
        
           

        

        
          Annex A -
Page 1

          
            

          

        

        
           

        

      

       

      B.           Net Issue
Exercise.  In lieu of exercising this Warrant pursuant to
Section 1.A, Holder may elect to receive shares equal to the value of this
Warrant (or the portion thereof being cancelled) by surrender of this Warrant at
such office together with notice of such election, in which event the Company
shall issue to Holder a number of shares of Warrant Stock computed using the
following formula:

       

      X = Y (A-B)

       

          A

       

      Where X
=          the number of
shares of Warrant Stock to be issued to Holder.

       

      Y
=          the number of
shares of Warrant Stock purchasable under this Warrant at the date of such
calculation or, if only a portion of this Warrant is being exercised, the
portion of this Warrant being cancelled at the date of such
calculation.

       

      A
=          the fair market
value of one share of Warrant Stock purchasable under this Warrant at the date
of such calculation.

       

      B
=           Purchase
Price (as adjusted to the date of such calculations).

       

      For
purposes of this Warrant, fair market value of one share of Warrant Stock shall
mean:

       

      (1)         The
average of the closing price of the Common Stock quoted on the New York Stock
Exchange or the closing price quoted on any other national securities exchange
or the NASDAQ National Market on which the Common Stock is listed, whichever is
applicable, as published in the Western Edition of The Wall Street Journal for
the ten trading days prior to the date of determination of fair market value;
or

       

      (2)          If
the Common Stock is not traded on the New York Stock Exchange or on such other
exchange or the NASDAQ National Market, an amount reasonably determined in good
faith by the Board of Directors to be the fair market value.

       

      C.           Delivery of Stock
Certificates.  The Company will, or will direct its transfer
agent to, issue, as soon as practicable after any exercise of this Warrant under
Section 1 and in any event within thirty days thereafter, at its expense
(including the payment by it of any applicable issue taxes), in the name of and
deliver to the Holder, or as the Holder may direct (on payment by the Holder of
any applicable transfer taxes) a certificate or certificates for the number of
fully paid and nonassessable shares of Warrant Stock as to which this warrant is
so exercised.

       

      
        
           

        

        
          Annex A -
Page 2

          
            

          

        

        
           

        

      

       

      2.          
  Payment of
Taxes.  All shares of Warrant Stock issued upon the exercise of
this Warrant shall be validly issued, fully paid and nonassessable, and the
Company shall pay all taxes and other governmental charges that may be imposed
in respect of the issuance or delivery thereof.  The Company shall not
be required, however, to pay any tax or other charge imposed in connection with
any transfer involved in the issue of any certificate for shares of Warrant
Stock in any name other than that of the Holder and, in such case, the Company
shall not be required to issue or deliver any stock certificate until such tax
or other charge has been paid, or it has been established to the Company’s
satisfaction that no tax or other charge is due.

       

      3.           
A.          Transfer.  This
Warrant and all rights hereunder are generally not transferable except by will
or the laws of descent and distribution, unless the Company expressly permits a
transfer, such as to a trust or other entity for estate planning purposes,
pursuant to a domestic relations order, or as a gift to certain family
members.  Unless the Company approves such a transfer, this Warrant is
exercisable during the Holder’s life only by the Holder.

       

      B.           Exchange.  At
the request of the Holder, the Company shall exchange this Warrant for two or
more Warrants of like tenor entitling the Holder to purchase the same aggregate
number of shares of Warrant Stock, each new Warrant to represent the right to
purchase such number of shares of Warrant Stock as the Holder shall designate at
the time of such exchange; provided that the Holder shall not be entitled so to
exchange this Warrant or any warrant received in any such exchange on more than
an aggregate of five occasions.

       

      4.         
   A.          Change in
Control.  In the event that the Company is subject to a Change
in Control:

       

       
(i)         immediately prior
thereto this Warrant shall be automatically accelerated and become immediately
exercisable as to all of the shares of Warrant Stock covered hereby,
notwithstanding anything to the contrary in the Plan or this Agreement;
and

       

       
(ii)        the Board may, in its
discretion, and on such terms and conditions as it deems appropriate, by
resolution adopted by the Board or by the terms of any agreement of sale, merger
or consolidation giving rise to the Change in Control, provide that, without the
Holder’s consent, the shares subject to this Warrant may (a) continue as an
immediately exercisable warrant of the Company (if the Company is the surviving
corporation), (b) be assumed as immediately exercisable warrants by the
surviving corporation or its parent, (c) be substituted by immediately
exercisable warrants granted by the surviving corporation or its parent with
substantially the same terms for this Warrant, or (d) be cancelled after payment
to the Holder of an amount in cash or other consideration delivered to
stockholders of the Company in the transaction resulting in a Change in Control
of the Company equal to the total number of shares subject to this Warrant
multiplied by the remainder of (1) the amount per share to be received by
holders of the Common Stock in the sale, merger or consolidation, minus (2) the
exercise price per share of the shares of Warrant Stock subject to this
Warrant.

       

      
        
           

        

        
          Annex A -
Page 3

          
            

          

        

        
           

        

      

       

      B.          Stock Dividends, Stock
Splits, Etc.  The exercise price shall be subject to adjustment
from time to time in the event that the Company shall (i) pay a dividend in, or
make a distribution of, shares of Common Stock (or securities convertible into,
exchangeable for or otherwise entitling a holder thereof to receive Common
Stock), or evidences of indebtedness or other property or assets, on outstanding
Common Stock, (ii) subdivide the outstanding shares of Common Stock into a
greater number of shares, (iii) combine the outstanding shares of Common Stock
into a smaller number of shares or (iv) issue any shares of its capital stock in
a reclassification of the Common Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the resulting
corporation).  An adjustment made pursuant to this Section 4.B shall,
in the case of a dividend or distribution, be made as of the record date
therefor and, in the case of a subdivision, combination or reclassification, be
made as of the effective date thereof.  In any such case, the total
number of shares and the number of shares or other units of such other
securities purchasable on exercise of this Warrant immediately prior thereto
shall be adjusted so that the Holder shall be entitled to receive at the same
aggregate purchase price the number of shares of Warrant Stock and the number of
shares or other units of such other securities that the Holder would have owned
or would have been entitled to receive immediately following the occurrence of
any of the events described above had the Warrant been exercised in full
immediately prior to the occurrence (or applicable record date) of such
event.  If, as a result of any adjustment pursuant to this Section
4.B, the Holder shall become entitled to receive shares of two or more classes
or series of securities of the Company, the Board shall equitably determine the
allocation of the adjusted exercise price between or among shares or other units
of such classes or series and shall notify the Holder of such
allocation.

       

      C.          Further
Adjustments.  If at any time, as a result of an adjustment made
pursuant to this Section 4, the Holder shall become entitled to receive any
shares of capital stock or shares or other units of other securities or property
or assets other than Warrant Stock, the number of such other shares or units so
receivable on any exercise of the Warrant shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the shares of Warrant Stock in this Section 4, and
the provisions of this Agreement with respect to the shares of Warrant Stock
shall apply, with necessary changes in points of detail, on like terms to any
such other shares or units.

       

      D.          No Fractional
Shares.  All calculations under this Section 4 shall be, in the
case of purchase price, rounded up to the nearest cent or, in the case of shares
subject to this warrant, rounded down to the nearest one-hundredth of a share,
but in no event shall the Company be obligated to issue any fractional share on
any exercise of the Warrant.

       

      E.           Certificate as to
Adjustments.  Upon the occurrence of each adjustment or
readjustment pursuant to this Section 4, the Company at its expense shall
promptly compute such adjustment or readjustment in accordance with the terms
hereof and furnish to each Holder of this Warrant a certificate setting forth
such adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based.  The Company shall, upon the
written request, at any time, of any such Holder, furnish or cause to be
furnished to such Holder a like certificate setting forth:  (i) such
adjustments and readjustments; (ii) the Purchase Price at the time in effect;
and (iii) the number of shares and the amount, if any, of other property that at
the time would be received upon the exercise of the Warrant.

       

      
        
           

        

        
          Annex A -
Page 4

          
            

          

        

        
           

        

      

       

      F.           No Dilution or
Impairment.  The Company will not by amendment of its
Certificate of Incorporation, or through reorganization, consolidation, merger,
dissolution, issuance or sale of securities, sale of assets, or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the Holder against
dilution or other impairment.  Without limiting the generality of the
foregoing, the Company (i) will not increase the par value of any shares of
Warrant Stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise, (ii) will take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable shares upon the exercise of this Warrant, and (iii)
will take no action to amend its Certificate of Incorporation that would change
to the detriment of the holders of Common Stock (whether or not any Common Stock
be at the time outstanding) the dividend or voting rights of the Company’s
Common Stock (as constituted on the Issue Date).

       

      G.           Notices of Record
Date.  In case:

       

      (i)           The
Company shall take a record of the holders of its Common Stock (or other stock
or securities at the time receivable upon the exercise of this Warrant) for the
purpose of entitling them to receive any dividend or other distribution or any
right to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right, or

       

      (ii)         Of
any capital reorganization of the Company, any reclassification of the capital
stock of the Company, any split or combination of shares of any class of capital
stock of the Company, any consolidation or merger of the Company with or into
another corporation, or any conveyance of all or substantially all of the assets
of the Company to another corporation, or

       

      (iii)        Of
any voluntary dissolution, liquidation or winding-up of the
Company,

       

      then, and
in each such case, the Company will mail or cause to be mailed to the Holder a
notice specifying, as the case may be, (a) the date on which a record is to be
taken for the purpose of such dividend, distribution or right, and stating the
amount and character of such dividend, distribution or right, or (b) the date on
which such reorganization, reclassification, split, combination, consolidation,
merger, conveyance, dissolution, liquidation or winding-up is to take place, and
the time, if any is to be fixed, as of which the holders of record of Common
Stock (or such stock or securities at the time receivable upon the exercise of
this Warrant) shall be entitled to exchange their shares of Common Stock (or
such other stock or securities) for securities or other property deliverable
upon such reorganization, reclassification, split, combination, consolidation,
merger, conveyance, dissolution, liquidation or winding-up.  Such
notice shall be mailed at least 90 days prior to the date therein
specified.

       

      5.          
  Loss or
Mutilation.  Upon receipt by the Company of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant, and of indemnity reasonably satisfactory to it, and
(in the case of mutilation) upon surrender and cancellation of this Warrant, the
Company will execute and deliver in lieu thereof a new warrant of like
tenor.

       

      
        
           

        

        
          Annex A -
Page 5

          
            

          

        

        
           

        

      

       

      6.         
   Reservation of Common
Stock.  The Company shall at all times reserve and keep
available for issue upon the exercise of this Warrant such number of its
authorized but unissued shares of Warrant Stock as will be sufficient to permit
the exercise in full of this Warrant.

       

      7.        
    Investment
Intent.  The Holder, by accepting this Warrant, represents and
warrants to the Company as follows:

       

      A.          Acquisition for Own
Account.  The Holder is acquiring this Warrant for the Holder’s
own account, not as a nominee or agent.  The Holder is not obligated
to transfer this Warrant to anyone else nor has any agreements or understandings
to do so.  The Holder is acquiring this Warrant for investment for an
indefinite period and not with a view to any sale or distribution of it, by
public or private sale or other disposition, and has no intention of selling,
granting any participation in or otherwise distributing or disposing of
it.  The Holder does not intend to subdivide the Warrant with
anyone.

       

      B.          Restricted
Securities.  The Holder is able to bear the economic risk of
the Holder’s investment in this Warrant and is aware that the Holder must be
prepared to hold this Warrant for an indefinite period and that this Warrant has
not been registered under the Act, on the ground that no distribution or public
offering of this Warrant is to be effected and this Warrant is being issued by
the Company without any public offering within the meaning of Section 4(2) of
the Act.

       

      C.          Sophistication.  The
Holder is an “accredited investor” as that term is defined in Regulation D under
the Act.  The Holder has such knowledge and experience in financial
and business matters that the Holder is capable of evaluating the merits and
risks of the Holder’s investment in this Warrant.

       

      D.          Agreement to Refrain from
Resales.  Without in any way limiting the Holder’s
representations herein, the Holder further agrees that the Holder shall not
encumber, pledge, hypothecate, sell, assign, transfer or otherwise dispose of
this Warrant, unless and until, prior to any proposed encumbrance, pledge,
hypothecation, sale, assignment, transfer or other disposition, either (i) a
registration statement under the Act with respect thereto shall be then
effective (ii)(a) the Holder shall have furnished the Company with a statement
of the circumstances of the proposed disposition and an opinion of counsel
(obtained at the Holder’s expense) satisfactory to the Company to the effect
that such disposition will not require registration under the Act and (b)
counsel for the Company shall have concurred in such opinion of counsel and the
Company shall have advised the Holder of such concurrence.

       

      E.           Certificates to be
Legended.  The Holder understands and agrees that this Warrant
and any warrant issued to replace this Warrant will bear a legend on the face
thereof (or on the reverse thereof with a reference to such legend on the face
thereof) in substantially the form set forth on the first page of this Warrant
and any other legend that the Company considers necessary or appropriate to
comply with any applicable securities law.

       

      8.         
   Notices.  All
notices and other communications from the Company to the Holder shall be mailed
by first-class registered or certified mail, postage prepaid, to the address
furnished to the Company in writing by the last Holder who shall have furnished
an address to the Company in writing.

       

      
        
           

        

        
          Annex A -
Page 6

          
            

          

        

        
           

        

      

       

      9.           
 Change;
Waiver.  Neither this Warrant nor any term hereof may be
changed, waived, discharged or terminated orally but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought.

       

      10.           Attorneys’
Fees.  In the event any party is required to engage the
services of attorneys for the purpose of enforcing this Warrant, or any
provision hereof, the prevailing party shall be entitled to recover its
reasonable attorneys’ fees and any other costs or expenses.

       

      11.           Headings.  The
headings in this Warrant are for purposes of convenience in reference only, and
shall not be deemed to constitute a part hereof.

       

      12.           Law
Governing.  This Warrant shall be construed and enforced in
accordance with and governed by the laws of the State of
California.

       

      DATED: __________________

       

      
        	 
      	
                WASTE
      CONNECTIONS, INC.

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	 
      	
                Ronald
      J. Mittelstaedt

              	 
      
	 
      	 
      	
                Chairman
      and Chief Executive Officer

              	 
      

      

       

      
        
           

        

        
          Annex A -
Page 7

          
            

          

        

        
           

        

      

       

      ENDORSEMENTS

       

      
        	
                Exercise
      Date

              	
                Number
      of Shares

                as
      to Which

                Exercised

              	
                Number
      of Shares

                Remaining

                Available
      for

                Exercise

              	
                Signature
      of Authorized

                Officer of the
      Company

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

      

       

       

       

      
 

      
        
           

        

        
          Annex A -
Page 8

          
            

          

        

        
           

        

      

       

      SUBSCRIPTION
FORM

       

      (To be
executed only upon exercise of warrant)

       

      The
undersigned Holder of this Warrant irrevocably exercises this Warrant for the
purchase of _________ shares of Common Stock of Waste Connections, Inc.,
purchasable with this Warrant, and herewith makes payment therefor, all at the
price and on the terms and conditions specified in this Warrant.

       

      Dated: __________________

       

      
        	 
      	 
      	 
      
	 
      	
                (signature
      of Holder)

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                (Street
      Address)

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                (city)
      (state) (zip Code)

              	 
      

      

      

      

      
        
           

        

        
          Annex A -
Page 9

          
            

          

        

        
           

        

      

       

      FORM
OF ASSIGNMENT

       

      FOR VALUE
RECEIVED the undersigned Holder of this Warrant hereby sells, assigns and
transfers unto the Assignee named below all of the rights of the undersigned
under the within Warrant, with respect to the number of shares of Common Stock
set forth below:

       

      
        	
                Name of
      Assignee

              	
                Address

              	
                No. of
      Shares

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

      

      

      and does
hereby irrevocably constitute and appoint ____________ [Attorney] to make such
transfer on the books of Waste Connections, Inc., maintained for the purpose,
with full power of substitution in the premises.

       

      Dated:                                           

       

      
        	 
      	[Holder]	 	 
      
	 
      	 
      	 
      	 	 
      
	 	 	 	 	 
	 
      	
                By:

              	 
      	 
      
	 
      	 
      	
                Name:

              	 	 
      
	 
      	 
      	
                Title:

              	 	 
      

      

    

     

     

     

    Annex A - Page
10Change in Control Agreement

 EXHIBIT 10.1 
 CHANGE IN CONTROL AGREEMENT 
  

			
	Rod Vesling	 	“Officer”
	[Address]	 	

  

			
	Interlink Electronics, Inc.,	 	“Company”
	546 Flynn Road	 	 
	 Camarillo, California 93012
	 	

 Interlink Electronics, Inc., a Delaware corporation (the “Company”), considers
the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interest of the Company and its stockholders. In this connection, the Company recognizes that, as is the case with many publicly
held corporations, the possibility of a change in control may exist and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment
of the Company and its stockholders. Accordingly, the Board of Directors of the Company (the “Board”) has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members
of the Company’s management to their assigned duties without distraction in circumstances arising from the possibility of a change in control of the Company. 
 This Agreement, when executed by the parties thereto, supersedes and replaces that certain agreement, dated as of May 16, 2007, by and between the parties relating to the same subject matter and upon such
execution, such former agreement shall be null and void and of no effect. 
 In order to induce Officer to remain in the employ of the
Company, this Agreement, the form of which has been approved by the Board, sets forth the severance benefits which the Company agrees will be provided to Officer in the event Officer’s employment with the Company is terminated in connection
with a “Change in Control” of the Company under the circumstances described below. 
 1. Employment at Will; Agreement to
Provide Services; Right to Terminate. 
 (i) Except as otherwise provided in paragraph (ii) below, the Company or
Officer may terminate Officer’s employment at any time, subject to the provisions of any employment agreement (including this Agreement) between Officer and the Company and the Company’s providing the benefits in accordance with the terms
of this Agreement and all other legally mandated benefits, whether statutory or contractual in nature. 
 (ii) In the event
of a Potential Change in Control of the Company as defined in Section 4, Officer agrees that Officer will not leave the employ of the Company (other than as a result of Disability, upon Retirement or for Good Reason, as such terms are defined
in Section 4), and will render the services contemplated in the recitals to this Agreement until the earliest of (A) a date which is 270 days from the occurrence of such Potential Change in Control of the Company or (B) a
termination of Officer’s employment pursuant to which Officer becomes entitled under this Agreement to receive the benefits provided in Section 6. 
  

 2. Effective Date. The effective date of this Agreement is April 14, 2008 (the
“Effective Date”). 
 3. Term of Agreement. This Agreement shall commence on the Effective Date and shall
continue in effect until December 31, 2008; provided, however, that commencing on the first day of the new year following the Effective Date and each January 1 thereafter, the term of this Agreement shall automatically be
extended for one additional year unless at least 90 days prior to such January 1 date, the Company or Officer shall have given notice that this Agreement shall not be extended (provided that no such notice may be given by the Company
during the pendency of a (i) Potential Change in Control or (ii) Change in Control); and provided, further, that this Agreement shall continue in effect for a period of 12 months beyond the term provided herein if a Change in Control of
the Company, as defined in Section 4, shall have occurred during such term. Notwithstanding anything in this Section 3 to the contrary, this Agreement shall terminate if Officer or the Company terminate Officer’s employment in a
manner consistent with Section 1(i). In addition, the Company may terminate this Agreement during Officer’s employment if, prior to a Potential Change in Control or Change in Control, Officer ceases to hold Officer’s current position
with the Company, except by reason of a promotion. 
 4. Definitions. The following terms shall have the following meanings for
purposes of this Agreement: 
 (i) “Cause” shall mean 
 (A) the willful and continued failure by Officer substantially to perform Officer’s reasonably assigned duties with the Company
consistent with those duties assigned to Officer, other than a failure resulting from Officer’s incapacity due to physical or mental illness, after a written demand for performance has been delivered to Officer by the Chief Executive Officer or
the Chairman of the Board which specifically identifies the manner in which the Chairman or the CEO believes that Officer has not substantially performed Officer’s duties and is not or cannot be cured within thirty days after such written
demand; 
 (B) the conviction of guilty or entering of a nolo contendere plea to a felony, which is materially and
demonstrably injurious to the Company; or 
 (C) the commission of an act by Officer, or the failure by Officer to act, which
constitutes gross negligence or gross misconduct. 
 For purposes of this Section 4(i), no act, or failure to act, on Officer’s part
shall be considered “willful” unless done, or omitted, by Officer in bad faith. Any act, or failure to act, expressly authorized by a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be
conclusively presumed to be done, or be an omission, by Officer in good faith. Notwithstanding the foregoing, Officer shall not be deemed to have been terminated for Cause unless the Company shall have delivered to Officer a copy of a resolution
duly adopted by the Board finding, after reasonable notice to Officer and an opportunity for Officer to be heard with respect to such matter, that in the good faith opinion of the Board, Officer has engaged in the conduct set forth above in (A),
(B), or (C) of this Section 4(i). Any such determination by the Board shall be subject to de novo review in mediation or in arbitration conducted pursuant to Section 15. 
  

 2 

 (ii) “Change in Control” of the Company shall mean the occurrence of any
of the following events: 
  
 (A) any consolidation,
merger, plan of share exchange, or other reorganization involving the Company (a “Merger”) as a result of which the holders of outstanding securities of the Company ordinarily having the right to vote for the election of directors
(“Voting Securities”) immediately prior to the Merger do not continue to hold at least 50% of the combined voting power of the outstanding Voting Securities of the surviving or continuing corporation immediately after the Merger,
disregarding any Voting Securities issued or retained by such holders in respect of securities of any other party to the Merger; 
 (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, the assets of the Company; 
 (C) the adoption of any plan or proposal for the liquidation or dissolution of the Company; 
 (D) at any time during a period of two consecutive years, individuals who at the beginning of such period constituted the Board
(“Incumbent Directors”) shall cease for any reason to constitute at least a majority thereof, unless each new director elected during such two-year period was nominated or elected by two-thirds of the Incumbent Directors then in
office and voting (with new directors nominated or elected by two-thirds of the Incumbent Directors also being deemed to be Incumbent Directors); or 
 (E) any Person (as defined below) shall have become the beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934 (the “Exchange Act”)), directly or indirectly, of
securities of the Company ordinarily having the right to vote for the election of directors representing 50% or more of the combined voting power of the then outstanding Voting Securities. 
 Notwithstanding anything in the foregoing to the contrary, unless otherwise determined by the Board, no Change in Control shall be deemed to have occurred
for purposes of this Agreement if (1) Officer acquires (other than on the same basis as all other holders of the Company shares) an equity interest in an entity that acquires the Company in a Change in Control otherwise described under
Section 4(ii)(A) or (B) above, or (2) Officer is part of group that constitutes a Person which becomes a beneficial owner of Voting Securities in a transaction that otherwise would have resulted in a Change in Control under
Section 4(ii)(E) above. 
 (iii) “Deemed Performance Amount” shall mean the sum of all cash
compensation paid or payable to Officer based on performance measures with respect to each of the last three complete calendar years divided by three; provided, however, that, if Officer has not been employed by the Company for all of the last three
complete calendar years, the amount shall be the sum of all cash compensation paid or payable to Officer based on performance measures with respect to each of the complete calendar years for which Officer has been so employed divided by the number
of such complete calendar years. 
  

 3 

 (iv) “Disability” shall mean the absence of Officer from Officer’s duties with the
Company on a full time basis for 180 consecutive days as a result of Officer’s incapacity due to physical or mental illness, unless, within 30 days after a Notice of Termination (as defined below) is given to Officer following such absence,
Officer shall have returned to the full performance of Officer’s duties. 
  
 (v) “Good Reason” shall mean: 
 (A) a diminution of Officer’s status,
title, position(s), or responsibilities from Officer’s status, title, position(s), and responsibilities as in effect immediately prior to the Potential Change in Control or Change in Control, or the assignment to Officer of any duties or
responsibilities which are inconsistent with such status, title, position(s), or responsibilities (in either case other than isolated, insubstantial or inadvertent actions which are remedied after notice), or any removal of Officer from such
position(s), except in connection with the termination of Officer’s employment for Cause, Disability or as a result of Officer’s death or voluntarily by Officer other than for Good Reason; 
 (B) a substantial reduction by the Company in Officer’s rate of base salary, bonus or incentive opportunity or a substantial
reduction in benefits (other than reductions that do not impact optionee’s compensation opportunity, taken as a whole, or a reduction in benefits applicable to substantially all officers); 
 (C) the Company’s requiring Officer to be based more than 100 miles from the principal office at in which Officer is based
immediately prior to the Potential Change in Control or Change in Control, except for reasonably required travel on the Company’s business; or 
 (D) the Company’s failure to obtain a consent requested by Officer pursuant to Section 8(i) of this Agreement. 
 (vi) “Potential Change in Control” of the Company shall mean the occurrence of any of the following: 
 (A) the Company enters into an agreement, the approval of which by the shareholders would result in the occurrence of a Change in Control of the Company; 
 (B) any Person (including the Company) publicly announces an intention to take or to consider taking actions which if consummated would
constitute a Change in Control of the Company; or 
 (C) the Board adopts a resolution to the effect that, for purposes of
this Agreement, a Potential Change in Control of the Company has occurred. 
 (vii) “Person” shall mean and
include any individual, corporation, partnership, group, association or other “person”, as such term is used in Section 14(d) of the Exchange Act, other than the Company, any subsidiary of the Company or any employee benefit plan(s)
sponsored by the Company. 
 (viii) “Plan” shall mean any compensation plan such as an incentive, stock
option or restricted stock plan or any employee benefit plan such as a thrift, pension, profit sharing, medical, disability, accident, life insurance, or relocation plan or policy or any other plan, program or policy of the Company intended to
benefit employees. 
 (ix) “Retirement” shall mean
termination on or after Officer’s 65th birthday. 
 5. Notice of Termination; Effective Date of Termination. Any purported termination by the Company or by Officer following a Potential Change in Control or Change in Control shall be 

  

 4 

 
communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Officer’s employment under
the provision so indicated. The “Date of Termination” following a Potential Change in Control or Change in Control shall mean (a) if Officer’s employment is to be terminated for Disability, 30 days after Notice of
Termination is given (provided that Officer shall not have returned to the performance of Officer’s duties on a full-time basis during such 30 day period), (b) if Officer’s employment is to be terminated by the Company for Cause, the
date on which a Notice of Termination is given, and (c) if Officer’s employment is to be terminated by Officer or by the Company for any other reason, the date specified in the Notice of Termination, which shall be a date no earlier than
60 days after the date on which a Notice of Termination is given (provided that if the termination is by Officer for Good Reason the circumstances giving rise to the Good Reason have not been fully corrected by the specified date), unless an earlier
date has been agreed to by the party receiving the Notice of Termination either in advance of, or after, receiving such Notice of Termination. Notwithstanding anything in the foregoing to the contrary, if the party receiving the Notice of
Termination has not previously agreed to the termination, then within 30 days after any Notice of Termination is given, the party receiving such Notice of Termination may notify the other party that a dispute exists concerning the termination, in
which event the Date of Termination shall be the date set either by mutual written agreement of the parties or by the arbitrators in a proceeding as provided in Section 15. 
 6. Change in Control Benefits. If, (a) after the occurrence of a Potential Change in Control (and during the pendency of a Change in Control
resulting from such Potential Change in Control), (b) concurrent with a Change in Control, or (c) within twelve (12) months after a Change in Control, Officer’s employment by the Company shall be terminated (x) by the
Company other than for Cause, Disability or Retirement or (y) by Officer for Good Reason based on an event occurring during such period, then Officer shall be entitled, without regard to any contrary provisions of any Plan, to a severance
benefit (the “Severance Benefit”) equal to the lesser of the Specified Benefits (as defined in subsection (i) below), or the Capped Benefit (as defined in subsection (ii) below): 
 (i) The “Specified Benefits” are as follows: 
 (A) the Company shall compensate Officer through the Date of Termination, as follows: 
 (1) with respect to all amounts payable without regard to performance measures, the full amount of such compensation; and 
 (2) with respect to all amounts payable based on performance measures, any benefits or awards (including both cash and stock components)
which pursuant to the terms of any plans have been earned, but which have not yet been paid to Officer, provided that all such amounts shall be paid at the time or times specified in such plans and not at the time for payment under (i)(B);

  

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 (B) as severance pay and in lieu of any further salary for periods subsequent to the Date
of Termination, the Company shall pay to Officer an amount in cash (subject to applicable taxes and withholdings) determined as follows: 
 (1) One hundred percent (100%) of Officer’s annualized compensation without regard to performance measures, payable at the rate in effect just prior to the time of the Notice of Termination, with one-half of
such amount payable in six equal monthly installments as a salary continuation during the six month period following the Date of Termination (with the first installment paid on the last day of the month in which the Date of Termination occurs and
each later installment paid on the last day of each successive month) and the balance paid in a lump sum on the date that is six (6) months after the Date of Termination; and 
 (2) an amount equal to one hundred percent (100%) of the aggregate amount of Officer’s Deemed Performance Amount, which amount
shall be payable in equal amounts concurrently with the six monthly installments referred to in clause (1), above. 
 (C)
fifty percent (50%) of unvested options to purchase the Company’s Common Stock held by Officer on the Date of Termination shall be accelerated so that such options are immediately exercisable; 
 (D) for a one year period after the Date of Termination, the Company shall arrange to provide Officer and Officer’s dependents with
medical and dental insurance benefits substantially similar to those which Officer was receiving immediately prior to the time of the Notice of Termination. Notwithstanding the foregoing, the Company shall not provide any benefit otherwise
receivable by Officer pursuant to this paragraph (D) to the extent that a similar benefit is actually received by Officer from a subsequent employer during such one year period, and Officer agrees to report to the Company any such benefit
expected to be received and such benefit actually received by Officer; and 
 (E) the Company shall pay Officer within 30 days
after the Date of Termination for any vacation time earned but not taken at the Date of Termination, at an hourly rate equal to Officer’s annual base salary as in effect immediately prior to the time a Notice of Termination is given divided by
2080. 
 (ii) The “Capped Benefit” equals the Specified Benefits, reduced by the minimum amount necessary to
prevent any portion of the Specified Benefits from being a “parachute payment” as defined in Section 280G (b)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor provision. The
amount of the Capped Benefit shall therefore equal (i) three times the “base amount” as defined in Code § 280G (b)(3)(A), reduced by one Dollar ($1.00), and further reduced by (ii) the present value of all other
payments and benefits Officer is entitled to receive from the Company that are contingent upon a change in control of the Company within the meaning of Code § 280G (b)(2)(A)(i), including accelerated vesting of options and other awards
under the Company’s stock option plans, and increased by (iii) all Specified Benefits that are not contingent upon a change in control within the meaning of Code § 280G (b)(2)(A)(i). Specified Benefits under (B)(1) shall be
reduced first to achieve the Capped Benefit amount, then amounts under (B)(2) shall be reduced to the extent necessary to achieve the Capped Benefit amount. The parties recognize that there is some uncertainty regarding the computations under Code
§ 280G which must be applied to determine the Capped Benefit. Accordingly, the parties agree that, after the Severance Benefit is paid, the amount of the Capped Benefit may be retroactively adjusted to the extent any subsequent Internal
Revenue Service regulations, rulings, audits or other pronouncements establish that the original calculation of the 

  

 6 

 
Capped Benefit was incorrect. In that case, amounts shall be paid or reimbursed between the parties so that Officer will have received the Severance Benefit
Officer would have received if the Capped Benefit had originally been calculated correctly. 
 (iii) If Officer is a
“specified employee” within the meaning of Code § 409A(a)(2)(B)(i) and any payment required to be made pursuant to this Section 6 is subject to Code § 409A and not exempt from those requirements under any
applicable regulations or other guidance of general applicability, then any such payment otherwise payable on account of Officer’s termination of employment during the period ending on the date that is six months after the Date of Termination
shall be paid in a lump sum on the date that is six months after Officer’s Date of Termination instead of the date on which it would otherwise be paid. 
 (iv) Except as specifically provided above, the amount of any payment provided for in this Section 6 shall not be reduced, offset or
subject to recovery by the Company by reason of any compensation earned by Officer as the result of employment by another employer after the Date of Termination, or otherwise. Officer’s entitlements under this Section 6 are in addition to,
and not in lieu of, any rights, benefits or entitlements Officer may have under the terms or provisions of any Plan. 
 7. Release of
Claims. The Company shall have the right to require Officer to execute a general release of claims relating to Officer’s employment at the Company and termination of employment at the Company that could be brought by Officer under this
Agreement as a condition to Officer’s receipt of any payments pursuant to Section 6; provided that the Company and each of its affiliates shall release any and all claims that each of them may have against Officer as a condition of any
such release. 
 8. Successors; Binding Agreement. 
 (i) Upon Officer’s written request, the Company will seek to have any Successor (as hereinafter defined), by agreement in form and
substance satisfactory to Officer, assent to the fulfillment by the Company of its obligations under this Agreement. Failure of the Company to obtain such assent prior to or at the time a Person becomes a Successor shall constitute Good Reason for
termination by Officer of Officer’s employment if a Change in Control of the Company has occurred. For purposes of this Agreement, “Successor” shall mean any Person that succeeds to, or has the practical ability to control
(either immediately or with the passage of time), the Company’s business directly, by merger, consolidation or purchase of assets, or indirectly, by purchase of the Company’s Voting Securities or otherwise. 
 (ii) This Agreement shall inure to the benefit of and be enforceable by Officer’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If Officer should die while any amount would still be payable to Officer hereunder if Officer had continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to Officer’s devisee, legatee or other designee or, if there be no such designee, to Officer’s estate. 
 9. Fees and Expenses. Each party shall bear its own costs and attorney’s fees which have been incurred. Notwithstanding the preceding, the Company shall pay all legal fees and related expenses incurred by
Officer as a result of (i) Officer’s termination under circumstances described in Section 6(a)-(c) (including all such fees and expenses, if any, incurred in contesting or disputing any such termination) or
(ii) Officer’s seeking to obtain or enforce any right or benefit provided by this Agreement. 
  

 7 

 10. Survival. The respective obligations of, and benefits afforded to, the Company and
Officer as provided in Section 6, 7, 9 and 15 of this Agreement shall survive termination of this Agreement. 
 11.
Notice. Notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when (i) if delivered personally, (ii) if given by email or fax, when transmitted and evidence
of confirmed transmission is received, (iii) if given by a nationally recognized overnight courier, when received or personally delivered, or (iv) mailed by United States registered or certified mail, return receipt requested and, when
delivered, and, in all case, with all charges prepaid and addressed to the address of the respective party set forth on the first page of this Agreement, provided that all notices to the Company shall be directed to the attention of the Chairman of
the Board or Chief Executive Officer of the Company, with a copy to the Secretary of the Company, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address
shall be effective only upon receipt. 
 12. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such modification, waiver or discharge is agreed to in a writing signed by Officer and the Chairman of the Board, the Chief Executive Officer of the Company or on behalf of the Board of Directors or the Compensation Committee of
the Board of Directors. No waiver by either party hereto at any time of any breach by the other party hereto of, or of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which
are not expressly set forth in this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California. 
 13. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any
other provision of this Agreement, which shall remain in full force and effect. 
 14. Related Agreements. To the extent that
any provision of any other agreement between the Company or any of its subsidiaries and Officer shall limit, qualify or be inconsistent with any provision of this Agreement, then for purposes of this Agreement, while the same shall remain in force,
the provision of this Agreement shall control and such provision of such other agreement shall be deemed to have been superseded, and to be of no force or effect, as if such other agreement had been formally amended to the extent necessary to
accomplish such purpose. 
 15. Arbitration. The Company and Officer agree to mediate any dispute arising under this Agreement.
If any such dispute exists, the parties shall work together to arrange such a mediation within 30 days of the notice by either party to the other of the existence of a dispute under this Agreement. If, after the good faith effort of both parties to
resolve the matter by mediation, the matter remains unresolved, any such unresolved dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Los Angeles, California by three arbitrators
in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrators’ award in any court having jurisdiction; provided, however, that Officer shall be entitled to seek
specific performance of Officer’s right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. The Company shall bear all costs and expenses arising in
connection with any arbitration proceeding pursuant to this Section 15. 
  

 8 

 16. Counterparts. This Agreement may be executed in several counterparts, each of which shall be
deemed to be an original, but all of which together will constitute one and the same instrument. 
 [Signature page follows] 
  

 9 

 If this correctly sets forth our agreement on the subject matter hereof, kindly sign and return to the
Company the enclosed copy of this letter which will then constitute our agreement on this subject. 
  

			
	 INTERLINK ELECTRONICS, INC.,
 a
Delaware corporation

		
	By:	 	/s/ PATRICE POLETO
	Name:	 	Patrice Poleto
	Title:	 	Vice President, Human Resources

  

	
	Accepted and Acknowledged:
	
	/s/ ROD VESLING
	Rod Vesling
	Date: April 22, 2008

  

 10

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