Document:

K-Swiss Inc. Form of Employee Stock Option Agreement

 Exhibit 10.2 
 K-SWISS INC. 
 EMPLOYEE STOCK OPTION AGREEMENT 
 (2009 Stock Incentive Plan) 
 (Officers) 
 This Employee Stock Option Agreement (this “Agreement”) is made and entered into as of the
             day of                     ,
             by and between K-Swiss Inc., a Delaware Corporation (the “Company”) and «FirstName» «LastName», an individual (the “Grantee”).

 WHEREAS, the Compensation and Stock Option Committee of the Board of Directors of the Company (the “Committee”) administering
the Company’s 2009 Stock Incentive Plan (the “Plan”) has granted to the Grantee an option (this “Option”) to purchase shares of the Class A Common Stock of the Company on the terms and conditions set forth herein.

 NOW, THEREFORE, the parties hereto agree as follows: 
 1.    Grant of Option; Identifying Provisions:    The Company hereby grants to the Grantee, and the Grantee hereby accepts, this Option to purchase the number of such
shares optioned as specified below, during a term ending at midnight (prevailing local time at the Company’s principal offices) on the expiration date of this Option specified below, at the option exercise price specified below, subject to and
upon the terms and conditions described herein. 
 As used in this Option, the following terms shall have the following respective meanings:

  

	 	(a)	Grantee: «FirstName» «LastName» 

	 	(b)	Date of Grant:
                                         
    

	 	(c)	Number of shares optioned: «Shares» 

	 	(d)	Option exercise price per share: $«Price» 

	 	(e)	Expiration date:
                                         
 

 This Option is not intended to qualify as an incentive stock option under Section 422 of the Internal Revenue Code
of 1986, as amended. 
 2.    Timing and Purchases:    Subject to the provisions for
termination and acceleration herein, this Option shall vest in installments as follows: 
 Each of the options granted to the grantee shall
commence vesting on                     ,             . Each of such options shall vest
        % three years, four years and five years, respectively, after the date upon which such options commence vesting (e.g. options shall vest 33% on
                    ,             ,         %
                    ,              and         %
on                     ,             ). 
 3.    Acceleration and Termination Provisions:    The following additional provisions shall apply to the
exercise of this Option: 
 (a)    Termination of Employment.    If the Grantee’s
employment by the Company or any of its subsidiaries is terminated for any reason whatsoever by the Company, the employee or otherwise, other that the Grantee’s death as described in Section 3(c) below or the grantee’s retirement
as described in the following Section 3(b), then only that portion of this Option exercisable at the time of such termination of employment may thereafter be exercised, and it may not be exercised more than three (3) months after such
termination nor after the expiration date of this Option, whichever date is sooner, unless such termination is by reason of the Grantee’s permanent and total disability, in which case one (1) year. This Option shall terminate upon such
termination of 

 
employment in all other respects. Notwithstanding the above, the Board of Directors of the Company or the Committee, in its sole discretion, may terminate
this option in all respects effective upon the termination of the Grantee’s employment if the Board of Directors or the Committee makes a determination that the Grantee’s termination was the result of (i) refusal to perform his or her
duties, (ii) gross or willful misconduct that is materially harmful to the Company or (iii) conviction of a crime of moral turpitude or a felony involving personal dishonesty. 
 (b)    Retirement of Grantee.    If the Grantee retires pursuant to any retirement plan of the Company or
any of its subsidiaries then in effect as to the Grantee, only that portion of the Option exercisable at the time of such retirement may thereafter be exercised, and it may not be exercised more that three (3) years after such retirement nor
after the expiration date of the option, whichever date is sooner. In all other respects, this Option shall terminate upon such retirement. 
 (c)    Death of Grantee.    If the Grantee dies while any portion of this Option is exercisable by the Grantee, the Grantee’s legal representative, or the person entitled to do so under
the Grantee’s last will and testament or under applicable intestate law, shall have the right to exercise this Option, but only for the number of shares as to which the Grantee was entitled to exercise this Option on the date of death, and such
right shall expire and this Option shall terminate on the earliest to occur of (i) the expiration of 18 months after the date of the Grantee’s death, (ii) the expiration date of this Option or (iii) if the death occurred after
the Grantee’s employment had been terminated or the Grantee had retired, on the date on which this Option terminates under Section 3(a) or (b) above. In all other respects, this Option shall terminate upon such death. 
 (d)    Terminating Events.    This Option shall terminate upon the earliest to occur of the following
(each a “Terminating Event”): (i) the dissolution or liquidation of the Company; (ii) the consummation of a reorganization, merger or consolidation of the Company with one or more corporations as a result of which the outstanding
shares of Class A Common Stock then subject to this Option are exchanged for or converted into cash or property or securities not issued by the Company; (iii) the acquisition of all or substantially all of the Company’s assets by any
person or entity (including a “group” as defined by or under Section 13(d)(3) of the Exchange Act) other than a wholly-owned subsidiary of the Company; (iv) the acquisition of beneficial ownership or control of (including,
without limitation, power to vote) more than 50% of the combined voting power of the outstanding voting securities of the Company by any person or entity (including a “group” as defined by or under Section 13(d)(3) of the Exchange
Act); or (v) the occurrence of a contested election of directors, as a result of which or in connection with which the persons who were directors of the Company before such election or their nominees cease to constitute a majority of the Board;
unless, in the case of the events described in clauses (ii), (iii), (iv) or (v), provision is made for the assumption, substitution or other continuation of this Option following such transaction adjusted, to the extent applicable, as provided
in Section 5 of this Option. 
 (e)    Acceleration in Connection with a Terminating
Event.    This Option shall become exercisable in full to the extent not theretofore exercised immediately before the consummation of a Terminating Event of the type described in items (ii), (iii), (iv) or (v) of
Section 3(d) above. 
 4.    Non-Transferable:    The Grantee may not transfer this
Option except by will or the laws of descent and distribution. This Option cannot otherwise be transferred, assigned, pledged, hypothecated or disposed of in any way, whether by operation of law or otherwise, and shall be exercisable during the
Grantee’s lifetime only by the Grantee or the Grantee’s guardian or legal representative. 
 5.    Adjustments:    Subject to the provisions for termination herein and the provisions of the Plan, if the outstanding shares of Class A Common Stock then subject to this Option are
increased or decreased, or are changed into or exchanged for a different number or kind of shares or securities or other forms of consideration, as a result of one or more reorganizations (acquisitive or divisive), recapitalizations, restructurings,
reclassifications, stock splits, reverse stock splits, stock dividends or the like, appropriate adjustments shall be 

  

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made in the number and/or kind of shares or securities or other forms of consideration for which the unexercised portions of this Option may thereafter be
exercised, all without any change in the aggregate exercise price applicable to the unexercised portions of this Option, but with a corresponding adjustment in the exercise price per share or other unit. No fractional share of stock shall be issued
under this Option or in connection with any such adjustment. Such adjustments shall be made by or under authority of the Company’s Board of Directors whose determination as to what adjustments shall be made, and the extent thereof, shall be
final, binding and conclusive. 
 6.    Exercise: 
 (a)    Payment for Stock. 
 (i)    Subject to the provisions of 6(c) below, this Option may be exercised by the Grantee or other person then entitled to exercise it by giving written notice of exercise to the Company specifying the number of shares
to be purchased and the total purchase price, accompanied by cash or a check to the order of the Company in payment of such purchase price and tax withholdings (if applicable) pursuant to Section 6(b). In lieu of receiving such payment, the
Company may retain some of the shares issuable upon such exercise of the Option if the Grantee elects to discharge the purchase price in this manner and if the following conditions are satisfied: (A) the Company is not then prohibited from
acquiring or purchasing such shares and (B) the number of shares thus retained shall have an aggregate fair market value, as of the date of the exercise of this Option, equal to such purchase price. 
 (ii)    Subject to the provisions of Section 6(c) below, this Option may be exercised by the Grantee irrevocably authorizing a
broker approved in writing by the Company to sell shares of Class A Common Stock to be acquired through exercise of the Option and remitting to the Company a sufficient portion of the sale proceeds to pay the entire purchase price and any
federal and state withholding resulting from such exercise (a “Cashless Exercise”); provided, however, that, notwithstanding anything in this Agreement to the contrary, (A) the Company shall only deliver such shares of Class A
Common Stock at or after the time the Company receives full payment for such shares, (B) the exercise price for such shares will be due and payable to the Company no later than one business day following the date on which the proceeds from the
sale of the underlying shares of Class A Common Stock are received by the authorized broker, (C) in no event will the Company directly or indirectly extend or maintain credit, arrange for the extension of credit or renew any extension of
credit, in the form of a personal loan or otherwise, in connection with a Cashless Exercise and (D) in no event shall the recipient of the Option enter into any agreement or arrangement with a brokerage or similar firm in which the proceeds
received in connection with a Cashless Exercise will be received by or advanced to such recipient before the date the shares underlying the Option are delivered or released by the Company. 
 (b)    Tax Withholding.    If the Company or any of its subsidiaries is required to withhold on account of
any present or future tax imposed as a result of such exercise pursuant to Section 6(a), the purchase price shall be accompanied by payment of the amount of such withholding pursuant to this Section 6. However, in lieu of receiving such
payment, the Company may retain some of the shares issuable upon such exercise of this Option if the Grantee elects to discharge these withholding obligations in this manner and if the following additional conditions are satisfied: (i) the
Company is not then prohibited from acquiring or purchasing such shares and (ii) the number of shares thus retained shall have an aggregate fair market value on the Tax Date (defined below) which, when added to any cash payment then also made
by the Grantee, equals the withholding obligations to be discharged. “Tax Date” means the date as of which the Grantee will realize taxable income from such exercise of this Option. 
 (c)    Notwithstanding any provision of this Agreement to the contrary: 
 (i)    payment of the total purchase price and tax withholdings (if applicable) with respect to shares underlying an Option shall be
due the date such shares are delivered; and 
  

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 (ii)    in no event shall the Company issue or deliver shares underlying an Option
pursuant to this Section 6 before the Company receives payment for such shares pursuant to this Section 6. 
 7.    Alternative Payment with Stock: 
 (a)    Payment for
Stock.    Notwithstanding the foregoing provisions, payment of the purchase price or any portion thereof may be made with shares of Class A Common Stock, such shares to be credited toward such purchase price on the basis
of their fair market value as of the date of exercise of this Option, in which event the stock certificate(s) evidencing the shares so to be used shall accompany the notice of exercise and shall be duly endorsed or accompanied by duly executed stock
powers to transfer the same to the Company; provided, however, that such payment in stock instead of cash shall not be effective and shall be rejected by the Company if (i) the Company is then prohibited from purchasing or acquiring shares of
its Class A Common Stock or (ii) the right or power of the person exercising the Option to deliver such shares in payment of said purchase price is subject to the prior interests of any other person (excepting the Company), as indicated by
legends upon the certificate(s) or as known to the Company. If the Company rejects the payment in stock, the tendered notice of exercise shall not be effective hereunder unless promptly after being notified of such rejection the person exercising
the Option pays the purchase price in acceptable form. This Section 7(a) shall be subject to the provisions of Section 7(c), below. 
 (b)    Withholding Tax.    In lieu of receiving payment pursuant to Section 6(b) for any withholding tax payable upon exercise of such shares, payment of such withholding tax may be made
with shares of Class A Common Stock, if the Grantee elects to discharge these withholding obligations in this manner and if the following additional conditions are satisfied: (i) the Company is not then prohibited from acquiring or
purchasing such shares; (ii) the right or power of the person exercising the Option to deliver such shares in payment of such withholding tax is not subject to the prior interests of any other person (except the Company), as indicated by
legends upon the certificate(s) or as known to the Company and (iii) the number of shares tendered or payment of the withholding tax obligation shall have an aggregate fair market value on the Tax Date which, when added to any cash payment then
also made by the Grantee, equals the withholding obligations to be discharged. If the Company or any of its subsidiaries is required to withhold on account of any present or future tax imposed as a result of an exercise pursuant to
Section 7(a), the purchase price shall be accompanied by payment of the amount of such withholding pursuant to this Section 7. 
 (c)    Notwithstanding any provision of this Agreement to the contrary: 
 (i)    payment
of the total purchase price pursuant to Section 7(a) and tax withholdings (if applicable) pursuant to Section 7(b) with respect to shares underlying an Option shall be due the date such shares are delivered; and 
 (ii)    in no event shall the Company issue or deliver shares underlying an Option pursuant to this Section 7 before the
Company receives payment for such shares pursuant to this Section 7. 
 8.    No Rights in Shares Before Issuance
and Delivery:    No person shall be entitled to the privileges of stock ownership in respect of any shares issuable upon exercise of this Option, unless and until such shares have been issued to such person as fully paid
shares. 
 9.    Requirements of Law and of Stock Exchange:    Notwithstanding any other
provisions herein, no shares of stock purchased upon exercise of this Option, and no certificate(s) therefor, shall be issued and delivered prior to the admission of such shares to listing on notice of issuance on Nasdaq or any stock exchange on
which shares of Class A Common Stock class are then listed, nor if, in the opinion of counsel for the Company, such issuance or delivery of securities would cause the Company to be in violation of or incur a liability under any federal, state
or other securities law, any requirement of any securities exchange listing agreement to which the Company may be a party, or any other requirement of law or of any regulatory body having jurisdiction over the Company. 
  

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 10.    2009 Stock Incentive
Plan:    This Option is granted under the Plan, and it is subject to, and the Company and the Grantee agree to be bound by, all of the terms and conditions applicable to this Option under the Plan, as the same shall have been
amended from time to time in accordance with the terms thereof, provided that no such amendment shall, without his or her consent, impair the Grantee’s rights hereunder. Pursuant to said Plan, the Committee appointed by the Board of Directors
of the Company for such purposes is authorized to adopt rules and regulations to administer the Plan, and the interpretation and construction by that Committee of the Plan and this Option are final and binding upon all participants in the Plan. A
copy of the Plan in its present form is available for inspection during business hours by the Grantee or other person entitled to exercise this Option at the Company’s principal office. 
 11.    Notices:    Any notice to be given under this Option may be delivered personally or by mail,
postage prepaid, addressed to the Company as follows: 
 K-Swiss Inc. 
 31248 Oak Crest Drive 
 Westlake Village, CA 91361 
 Attention:    Chief Financial Officer 
 and to the Grantee at the address shown below the Grantee’s signature hereto; or at such other address as either party, by notice to the other, may designate in writing from time to time. Notices by the Grantee shall be deemed
effective upon receipt by the Company. Notices by the Company shall be deemed effective, if mailed, when mailed. 
 12.    Employment Rights of the Grantee:    Nothing in this Option confers upon the Grantee any right to continue in the employ of the Company or any of its subsidiaries, nor does this Option
affect the right of the Company or of a subsidiary to terminate the Grantee’s employment, with or without cause, or the right of the Grantee to participate in any other employee welfare or benefit plan or program of the Company or of any
subsidiary applicable to the Grantee. The Grantee hereby acknowledges and agrees that his/her employment may be terminated by the Company at any time for any reason, with or without cause, unless the Grantee and the Company are parties to a written
employment agreement which expressly provides otherwise. 
 13.    Laws Applicable to
Construction:    This Option has been executed and delivered by the Company in California, and it shall be construed and enforced in accordance with the laws of that State. 
  

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 IN WITNESS WHEREOF, the Company has granted this Option and the Grantee has accepted it as of the date of
grant specified above. 
  

			
	K-SWISS INC.
		
	By:	 	 
	
	Title: President

  

	
	ACCEPTED:
	
	  
	Grantee
	
	  
	Street Address
	
	  
	City, State and Zip Code

  

 6K-Swiss Inc. Form of Non-Employee Director Stock Option Agreement

 Exhibit 10.3 
 K-SWISS INC. 
 NON-EMPLOYEE DIRECTOR STOCK OPTION AGREEMENT 
 Pursuant to the 
 2009 STOCK
INCENTIVE PLAN 
 This Non-Employee Director Stock Option Agreement (this “Agreement”) is made and entered into as of the
Date of Grant indicated below by and between K-Swiss Inc., a Delaware corporation (the “Company”), and the person named below as Grantee. 
 WHEREAS, Grantee is a non-employee director of the Company (a “Non-Employee Director”); and 
 WHEREAS, pursuant to the
Company’s 2009 Stock Incentive Plan (the “Plan”), an option to purchase shares of the Company’s Class A Common Stock, par value $.01 per share (the “Common Stock”) has been granted to Grantee, on the terms and
conditions set forth herein; 
 NOW, THEREFORE, in consideration of the foregoing recitals and the covenants set forth herein, the parties
hereto hereby agree as follows: 
  

	 	1.	Grant of Option; Certain Terms and Conditions. 

 (a)    The Company hereby grants to Grantee, and Grantee hereby accepts, as of the Date of Grant, an option to purchase the number of shares of Common Stock indicated below (the “Option Shares”) at the Exercise
Price per share indicated below, which option shall expire at midnight (prevailing local time at the Company’s principal offices), on the Expiration Date indicated below and shall be subject to all of the terms and conditions set forth in this
Agreement (the “Option”). 
 Grantee: 
 Date of Grant: 
 Number of Shares Purchasable: 
 Exercise Price per share: 
 Expiration Date:

 The Option is not intended to qualify as an incentive stock option under Section 422 of the Internal Revenue Code. 
 (b)    Subject to the provisions for termination and acceleration set forth herein, the Option shall vest in three equal installments
as follows: one-third of the Option shall vest three years, four years and five years, respectively, from the Date of Grant (e.g. one-third of the Option granted hereunder shall vest on each of
            ,             ,             ,
            and             ,             ). 
  

	 	2.	Duration of Option. 

 (a)    Termination of Non-Employee Director Status.    If Grantee ceases to be a Non-Employee Director for any reason, then, except as set forth in Section 2(b) below, the Option shall
terminate on the earlier of the Expiration Date or the second anniversary of the date upon which Grantee ceases to be a Non-Employee Director. 

 (b)    Death of Grantee.    If Grantee dies while any
portion of this Option is exercisable by Grantee, Grantee’s legal representative, or the person entitled to do so under Grantee’s last will and testament or under applicable intestate law, shall have the right to exercise the Option, but
only for the number of shares as to which Grantee was entitled to exercise the Option as of the date of Grantee’s death, and such right shall expire and the Option shall terminate on the earlier to occur of (i) the expiration of 18 months
from the date of Grantee’s death and (ii) the Expiration Date. 
 (c)    Acceleration of
Option.    Notwithstanding anything to the contrary in this Agreement, the Option shall become fully exercisable immediately before the first to occur of the following: 
 (i)    the consummation of a reorganization, merger or consolidation of the Company as a result of which the
outstanding securities of any class then subject to the Option are exchanged for or converted into cash, property and/or securities not issued by the Company or a company whose common equity holders immediately after such transaction consist only of
persons who are holders of the common equity of the Company immediately before such transaction; 
 (ii)    the first date upon which the directors of the Company who were nominated by the Board of Directors for election as directors shall cease to constitute a majority of the authorized number of directors of the
Company; 
 (iii)    the dissolution or liquidation of the Company; or 
 (iv)    a sale of all or substantially all of the property and assets of the Company. 
 3.    Adjustments.    In the event that the outstanding securities of the class then subject to the
Option are increased, decreased or exchanged for or converted into cash, property and/or a different number or kind of shares or securities, or if cash, property or shares or securities are distributed in respect of such outstanding securities, in
either case as a result of a reorganization, merger, consolidation, recapitalization, restructuring, reclassification, dividend (other than a regular, quarterly cash dividend) or other distribution, stock split, reverse stock split, spin-off or the
like, or if substantially all of the property and assets of the Company are sold, then, unless the terms of such transaction shall provide otherwise, the Board of Directors or the Compensation and Stock Option Committee of the Board of Directors
administering the Plan (the “Committee”) may make appropriate and proportionate adjustments in the number and type of shares or other securities or cash or other property that may be acquired upon the exercise of the Option and the
exercise price of such Option. 
  

	 	4.	Exercise. 

 (a)    Subject to Section 8, the Option shall be exercisable during Grantee’s lifetime only by Grantee. Subject to the provisions of Section 4(b) below, the Option may only be exercised by the delivery to
the Company of a written notice of such exercise (the “Exercise Notice”), which notice shall specify the number of Option Shares to be purchased (the “Purchased Shares”) and the aggregate Exercise Price for such shares;
provided, however, that payment of such aggregate Exercise Price may be made, in whole or in part, by one or more of the following means: 
 (i)    in full in cash or by check to the order of the Company, at or before the time the Company delivers the Option Shares; 
 (ii)    the recipient of the Option irrevocably authorizing a broker approved in writing by the Company to sell Option
Shares to be acquired through exercise of the Option and remitting to the Company a sufficient portion of the sale proceeds to pay the entire exercise price and any federal and state withholding resulting from such exercise (a “Cashless
Exercise”); provided, however, that, notwithstanding anything in this Agreement to the contrary, (A) the Company shall only deliver such Option Shares at or after the time the Company receives full payment for such Option
Shares, (B) the exercise price for such Option Shares will be due and payable to the Company no later than one business day following the date on which the 

  

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proceeds from the sale of the underlying Option Shares are received by the authorized broker, (C) in no event will the Company directly or indirectly
extend or maintain credit, arrange for the extension of credit or renew any extension of credit, in the form of a personal loan or otherwise, in connection with a Cashless Exercise and (D) in no event shall the recipient of an Award enter into
any agreement or arrangement with a brokerage or similar firm in which the proceeds received in connection with a Cashless Exercise will be received by or advanced to such recipient before the date the shares underlying the Award are delivered or
released by the Company; and/or 
 (iii)    the delivery to the Company of a certificate or certificates
representing shares of Common Stock, duly endorsed or accompanied by a duly executed stock power, which delivery effectively transfers to the Company good and valid title to such shares, free and clear of any pledge, commitment, lien, claim or other
encumbrance (such shares to be valued on the basis of their aggregate fair market value as of the day immediately preceding the date of exercise of the Option; provided, however, that such payment in stock instead of cash shall not be effective and
shall be rejected by the Company if (A) the Company is then prohibited from purchasing or acquiring such shares of Common Stock or (B) the right or power of the person exercising the Option to deliver such shares in payment of said
purchase price is subject to the prior interests of any other person (excepting the Company) as indicated by legends upon the certificate(s) or as known to the Company. If the Company rejects the payment in stock, the tendered Exercise Notice shall
not be effective hereunder unless promptly after being notified of such rejection, the person exercising the Option pays the purchase price in a form acceptable hereunder. 
 (b)    Notwithstanding any provision of this Agreement to the contrary: 
 (i)    payment of the aggregate Exercise Price for such shares and the Grantee’s tax withholding obligation, if
any, with respect to such shares shall be due the date the shares of Common Stock underlying the Option are delivered; and 
 (ii)    in no event shall the Company issue or deliver the Option Shares before the Company receives payment for the Option Shares pursuant to this Section 4. 
  

	 	5.	Payment of Withholding Taxes. 

 (a)    If the Company becomes obligated to withhold an amount on account of any tax imposed as a result of the exercise of the Option, including, without limitation, any federal, state, local or other income tax, or any
F.I.C.A., state disability insurance tax or other employment tax (the “Withholding Liability”), then Grantee shall, on the date of exercise and as a condition to the issuance of the Option Shares, pay the Withholding Liability to the
Company in cash or by check payable to the Company. Grantee hereby consents to the Company withholding the full amount of the Withholding Liability from any compensation or other amounts otherwise payable to Grantee if Grantee does not pay the
Withholding Liability to the Company on the date of exercise of the Option, and Grantee agrees that the withholding and payment of any such amount by the Company to the relevant taxing authority shall constitute full satisfaction of the
Company’s obligation to pay such compensation or other amounts to Grantee. 
 (b)    In lieu of receiving payment of
the Withholding Liability in cash or by check payable to the Company, payment of such amounts may be made with shares of Common Stock, if the Grantee elects to discharge these obligations in this manner and if the following additional considerations
are satisfied: (i) the Company is not then prohibited from acquiring or purchasing such shares; (ii) the right or power of the person exercising the Option to deliver such shares in payment of such Withholding Liability is not subject to
the prior interests of any other person (except the Company), as indicated by legends upon the certificate(s) or as known to the Company; (iii) the number of shares tendered for payment of the Withholding Liability shall have an aggregate fair
market value on the Tax Date (as defined below) which, when added to any cash payment then also made by Grantee, equals the Withholding Liability. As used above, the term “Tax Date” means the date as of which Grantee will realize taxable
income from the exercise of this Option. 
  

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 6.    Notices.    All notices and other
communications required or permitted to be given pursuant to this Agreement shall be in writing and shall be deemed given if delivered personally or five days after mailing by certified or registered mail, postage prepaid, return receipt requested,
to the Company at 31248 Oak Crest Drive, Westlake Village, California 91361, Attention: Chief Financial Officer, or to Grantee at the address set forth beneath his or her signature on the signature page hereto, or at such other addresses as they may
designate by written notice in the manner aforesaid. 
 7.    Stock Exchange or NASDAQ Requirements; Applicable
Laws.    Notwithstanding anything to the contrary in this Agreement, no shares of stock purchased upon exercise of the Option, and no certificate representing all or any part of such shares, shall be issued or delivered
if (a) such shares have not been admitted to listing upon official notice of issuance on each stock exchange upon which shares of that class are then listed or (b) in the opinion of counsel to the Company, such issuance or delivery would
cause the Company to be in violation of or to incur liability under any federal, state or other securities law, or any requirement of any stock exchange listing agreement to which the Company is a party, or any other requirement of law or of any
administrative or regulatory body having jurisdiction over the Company. 
 8.    Transferability.    The Options may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated other than by will or the laws of descent and distribution,
and the Option shall be exercisable only by the Grantee during his or her lifetime. Notwithstanding the foregoing, to the extent permitted by the Administrator, the Grantee may transfer the Option to any “family member” of the Grantee (as
such term is defined in Section 1(a)(5) of the General Instructions to Form S-8 under the Securities Act of 1933, as amended (“Form S-8”)), to trusts solely for the benefit of such family members and to partnerships in which such
family members and/or trusts are the only partners; provided that, (a) as a condition thereof, the transferor and the transferee must execute a written agreement containing such terms as specified by the Administrator, and (b) the transfer
is pursuant to a gift or a domestic relations order to the extent permitted under the General Instructions to Form S-8. 
 9.    Plan.    The Option is granted pursuant to the Plan, as in effect on the Date of Grant, and is subject to, and the Company and Grantee agree to be bound by, all the terms and
conditions of the Plan, as the same may be amended from time to time in accordance with the terms thereof; provided, however, that no such amendment shall deprive Grantee, without his or her consent, of the Option or of any of Grantee’s rights
under this Agreement. The interpretation and construction by the Board of Directors or the Committee of the Plan, this Agreement, the Option and such rules and regulations as may be adopted by the Board of Directors or the Committee for the purpose
of administering the Plan shall be final and binding upon Grantee. Until the Option shall expire, terminate or be exercised in full, the Company shall, upon written request therefor, send a copy of the Plan, in its then-current form, to Grantee or
any other person or entity then entitled to exercise the Option. 
 10.    Stockholder
Rights.    No person or entity shall be entitled to vote, receive dividends or be deemed for any purpose the holder of any Option Shares until the Option shall have been duly exercised to purchase such Option Shares in
accordance with the provisions of this Agreement. 
 11.    Governing Law.    This
Agreement and the Option granted hereunder shall be governed by and construed and enforced in accordance with the laws of the State of Delaware. 
  

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 IN WITNESS WHEREOF, the Company and Grantee have duly executed this Agreement as of the Date of Grant.

  

			
	K-SWISS INC.
		
	By:	 	 
	
	Title: President

  

	
	GRANTEE:
	
	  
	Signature
	
	  
	Street Address
	
	  
	City, State and Zip Code
	
	  
	Social Security Number

  

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