Document:

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                          AEHR TEST SYSTEMS
                   COMMON STOCK PURCHASE AGREEMENT

     This Common Stock Purchase Agreement (the "Agreement") is made as
of March 15, 2013, by and among Aehr Test Systems (the "Company"), a
California corporation, and each of the investors set forth on Exhibit
A attached hereto (the "Investors").

                               RECITALS

     A.   The Company has authorized the issuance and sale to certain
accredited investors of an aggregate of up to 1,872,000 shares of the
Company's Common Stock, par value $.01 per share (the "Common Stock").

     B.   The Investors desire to purchase and the Company desires to
issue and sell shares of Common Stock on the terms and subject to the
conditions set forth herein.

                               AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing premises, the
mutual covenants herein contained and other good and valuable
consideration the receipt and sufficiency of which is hereby
acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

     1.   Purchase and Sale of Common Shares.

         (a)   Subject to the terms and conditions of this Agreement,
each Investor severally agrees to purchase at the Closing, and the
Company agrees to sell and issue to the such Investor at the Closing,
that number of shares of Common Stock set forth opposite such
Investor's name on Exhibit A attached hereto (the "Common Shares") at
a per share purchase price of $1.00.

     2.   The Closing.

         (a)   Closing Date.  The closing of the purchase and sale of
the Common Shares (the "Closing") shall take place at the offices of
Wilson Sonsini Goodrich & Rosati, 650 Page Mill Road, Palo Alto,
California, at 3:00 p.m. local time on the date hereof, or at such
other location and on such other date as the Company and the Investors
acquiring a majority of the Common Shares purchased hereunder shall
mutually agree.  The date of the Closing is referred to herein as the
"Closing Date."

         (b)   Payment.  At the Closing, each Investor shall deliver
to the Company (i) the purchase price for the Common Shares being
purchased by the Investor by check or by wire transfer of immediately
available funds to an account designated by the Company at the
Closing, and (ii) the documents set forth in Section 6(b) of this
Agreement.

         (c)   Certificate.  The Company shall deliver or cause to be
delivered to each Investor (i) a certificate representing the Common
Shares purchased by the Investor, in definitive

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form and registered in the Investor's name within a reasonable time
after the Closing and (ii) the documents set forth in Section 6(a) of
this Agreement at the Closing.

     3.   Representations and Warranties of the Company.  Except as
set forth on the Schedule of Exceptions attached hereto as Exhibit B,
the Company hereby represents and warrants to the Investors on the
date hereof as follows:

         (a)   Organization and Qualification.  The Company is a
corporation duly organized, validly existing and in good standing
under the laws of the State of California.  The Company has the power
and authority, corporate or otherwise, as appropriate, to own, lease
and operate its properties and to conduct its business as now
conducted and to enter into and perform its obligations under this
Agreement.  The Company is duly qualified as a foreign corporation and
is in good standing in each jurisdiction in which such qualification
is required, except where the failure to so qualify would not
individually or in the aggregate have a material adverse effect on the
condition (financial or otherwise), earnings, properties, business, or
results of operations of the Company (a "Material Adverse Effect").

         (b)   Authorized Capital Stock.  As of the date hereof, the
authorized capital stock of the Company consists of 75,000,000 shares
of Common Stock, $0.01 par value, and 10,000,000 shares of Preferred
Stock, $0.01 par value.  As of the date hereof, approximately
9,362,987 shares of Common Stock and no shares of Preferred Stock are
validly issued and outstanding, and each outstanding share of Common
Stock is fully paid and nonassessable.  The Company has reserved (i)
4,762,624 shares of Common Stock for issuance pursuant to the
Company's 2006 Equity Incentive Plan and (ii) 1,550,000 shares of
Common Stock for issuance pursuant to the Company's 2006 Employee
Stock Purchase Plan and 1997 Employee Stock Purchase Plan (together,
the "Purchase Plans"), and has outstanding options to purchase
2,973,964 shares of Common Stock under the 2006 Equity Incentive Plan
as of the date hereof.  The designations, powers, preferences, rights,
qualifications, limitations and restrictions in respect of each class
and series of authorized capital stock of the Company are as set forth
in the Company's articles of incorporation.  The issued and
outstanding shares of Common Stock conform to the description thereof
contained in the reports (the "Exchange Act Reports") filed by the
Company with the Securities and Exchange Commission (the "Commission")
pursuant to the Securities Exchange Act of 1934, as amended (the
"Exchange Act").  Except for options issued under the Company's 2006
Equity Incentive Plan and the obligations under the Purchase Plans,
the Company does not have outstanding any options or warrants to
purchase, or any preemptive rights or other rights to subscribe for or
to purchase, any securities or obligations convertible into, or any
contracts or commitments to issue or sell, shares of its capital
stock, and there is no commitment, plan or arrangement to issue, any
securities or obligations convertible into any shares of capital stock
of the Company or any such options, rights convertible securities or
obligations.

         (c)   Issuance, Sale and Delivery of the Common Shares.  The
Common Shares have been duly authorized and, when issued, delivered
and paid for in the manner set forth in this Agreement, will be duly
authorized, validly issued, fully paid and nonassessable.  No
preemptive rights or other rights (which have not been waived) to
subscribe for or purchase exist with respect to the issuance and sale
of the Common Shares by the Company pursuant to this Agreement.  No
shareholder of the Company has any right to request or require the
Company to register the sale of

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any shares owned by such shareholder under the Securities Act of 1933,
as amended (the "Securities Act").  Subject to the satisfaction of the
conditions set forth in Section 6(b), no further approval or authority
of the shareholders or the Board of Directors of the Company will be
required for the issuance and sale of the Common Shares as
contemplated herein.

         (d)   Due Execution, Delivery and Performance of this
Agreement.  The Company has full legal right, corporate power and
authority to enter into this Agreement and to perform the transactions
contemplated hereby.  This Agreement has been duly authorized by the
Company.  The execution, delivery and performance of this Agreement by
the Company and the consummation of the transactions contemplated
hereby will not violate any provision of the organizational documents
of the Company and will not result in the creation of any lien,
charge, security interest or encumbrance upon any assets or property
of the Company pursuant to the terms or provisions of, or will not
conflict with, result in the breach or violation of, or constitute,
either by itself or upon notice or the passage of time or both, a
default under any agreement, mortgage, deed of trust, lease,
franchise, license, indenture, permit or other instrument to which the
Company is a party or by which the Company or any of its assets or
properties may be bound or affected or, to the Company's knowledge,
and subject to satisfaction of the conditions set forth in
Section 6(b), any statute or any authorization, judgment, decree,
order, rule or regulation of any court or any regulatory body,
administrative agency or other governmental body applicable to the
Company or any of its properties.  No consent, approval, authorization
or other order of any court, regulatory body, administrative agency or
other governmental body is required for the execution, delivery and
performance of this Agreement or the consummation of the transactions
contemplated hereby, except for compliance with Blue Sky laws and
federal securities laws applicable to the offering and registration
for resale of the Common Shares and compliance with the rules and
regulations of the securities exchange or trading market on which the
Common Stock is listed.  Upon the execution and delivery, and assuming
the valid execution of this Agreement by the Investor, this Agreement
will constitute valid and binding obligations of the Company,
enforceable against the Company in accordance with their respective
terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors' rights generally and except as enforceability may
be subject to general principles of equity.

         (e)   Financials.  The Company's financial statements
(including all notes and schedules thereto) included in the Exchange
Act Reports present fairly the financial position, the results of
operations, the statements of cash flows and the statements of
shareholders' equity and the other information purported to be shown
therein of the Company at the respective dates and for the respective
periods to which they apply (subject, in the case of unaudited
statements, to normal year end audit adjustments and the absence of
footnotes) and such financial statements have been prepared in
conformity with generally accepted accounting principles, consistently
applied throughout the periods involved (except as may be indicated in
the notes thereto).  Since the date of the most recent financial
statements included in the Exchange Act Reports, there has not been:
(i) any event or condition of any character that, either individually
or cumulatively, has or would have a Material Adverse Effect or (ii)
any sale, assignment or transfer of any patents, trademarks, trade
secrets or other intangible assets of the Company.

         (f)   Contracts.  The contracts described in the Exchange Act
Reports as being in effect on the date hereof, are in full force and
effect on the date hereof, and the Company is not, nor

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to the Company's knowledge, is any other party in breach of or default
under any written agreement which would have a Material Adverse
Effect.

         (g)   No Actions.  There are no legal or governmental
actions, suits or proceedings pending or, to the Company's knowledge,
threatened to which the Company is or may be a party or of which
property owned or leased by the Company is or may be the subject.  The
Company is not a party to or subject to the provisions of any material
injunction, judgment, decree or order of any court, regulatory body
administrative agency or other governmental body.

         (h)   Finders' Fees.  Other than as set forth in the Schedule
of Exceptions, no investment banker, broker, finder or other
intermediary has been retained by or is authorized to act on behalf of
the Company who is or might be entitled to any fee or commission from
the Company or any of its affiliates upon consummation of the
transactions contemplated by this Agreement.

         (i)   Commission Reports.  The Company has complied in all
material respects with the filing requirements of the Commission under
the Exchange Act and all rules and regulations thereunder for the two
years preceding the date hereof.  As of their respective filing dates,
all documents filed by the Company with the Commission complied in all
material respects with the requirements of the Exchange Act or the
Securities Act, as applicable and all rules and regulations
thereunder, and none of the Exchange Act Reports, when filed,
contained any untrue statement of a material fact required to be
stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not
misleading.

         (j)   Intellectual Property.  There are no claims pending or,
to the Company's knowledge, threatened that the Company or any of its
subsidiaries is infringing (including with respect to the manufacture,
use or sale by the Company or any of its subsidiaries of their
respective products) upon any patent, patent application, trademark,
trademark rights, trade names, trade name rights, copyrights,
technical know-how and other proprietary intellectual property rights
(the "Intellectual Property Rights") of a third party, and the Company
has no reason to believe that the current business activities of the
Company or its subsidiaries are reasonably likely to give rise to any
such claim(s). To the Company's knowledge, no third party is
infringing upon any material Intellectual Property Right of the
Company.

         (k)   Offering Valid.  Assuming the accuracy of the
representations and warranties of the Investors contained in Section 4
hereof, the offer, sale and issuance of the Common Shares will be
exempt from the registration requirements of the Securities Act, and
will have been registered or qualified (or are exempt from
registration and qualification) under the registration, permit or
qualification requirements of all applicable state securities laws.

         (l)   Disclosure.  Neither this Agreement nor any exhibit or
other document delivered in connection herewith contains an untrue
statement of a material fact or omits a material fact necessary to
make the statements contained herein or therein, in the light of the
circumstances under which they were made, not misleading.  None of the
statements, documents, certificates or other items supplied by the
Company at the Closing shall contain an untrue statement of a material
fact or omit a material fact necessary to make the statements
contained therein, in light of the circumstances under which they are
made, not misleading.  There is no fact which the Company has

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not disclosed to the Investors and which is known to the Company
(other than facts known to the general public or generally known in
the Company's industry) which would cause a Material Adverse Effect.
The Company has supplied each Investor with all written information
previously requested by such Investor in writing to the Company.

     4.   Representations and Warranties of the Investors.  Each
Investor hereby represents and warrants to the Company on the date
hereof as follows:

         (a)   Private Placement.

                 (i)   Investor understands that the offering and sale
of the Common Shares is intended to be exempt from registration under
the Securities Act.

                (ii)   Investor represents and warrants that it is
acquiring the Common Shares acquired by such Investor pursuant to this
Agreement for investment for Investor's own account and not with a
view to the resale or distribution of such Common Shares or any
interest therein other than in a transaction that is registered or
exempt from registration under the Securities Act.

               (iii)   Investor represents and warrants that it is an
"accredited investor" as such term is defined in Regulation D under
the Securities Act.

                (iv)   Investor represents and warrants that it
(either alone or together with its advisors) has sufficient knowledge
and experience in financial and business matters so as to be capable
of evaluating the merits and risks of its investment in the Common
Shares, and is capable of bearing the economic risks of such
investment, including a complete loss of its investment in the Common
Shares acquired by it hereunder.

                 (v)   Investor has been given the opportunity to ask
questions of, and receive answers from, the Company regarding the
Company, the terms and conditions of the Common Shares and related
matters, and has been furnished with the information it deems
necessary or desirable to evaluate the merits and risks of its
acquisition of the Common Shares.

                (vi)   Investor understands that the Common Shares
that it is acquiring are characterized as "restricted securities"
under the Securities Act in as much as they are being acquired from
the Company in a transaction not involving a public offering and that
under the Securities Act and applicable regulations, such Common
Shares may be resold without registration under the Securities Act
only in certain limited circumstances.  Investor understands that the
certificates evidencing the Common Shares will bear a restrictive
legend substantially as follows:

     THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED
     FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
     SALE OR DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED.  SUCH SHARES MAY NOT BE
     SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
     EXEMPTION THEREFROM UNDER THE ACT AND ANY APPLICABLE STATE
     SECURITIES LAWS.

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     COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SHARES
     AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY
     WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE
     TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE
     OFFICES OF THE COMPANY.

               (vii)   Investor has, in connection with its decision
to acquire the Common Shares, relied solely upon the Exchange Act
Reports and the representations and warranties of the Company
contained in this Agreement.

         (b)   Additional Representations of Foreign Investor.  If the
Investor does not reside in and is not a citizen of the United States,
for the purpose of this Section 4, the Investor shall be deemed a
"Foreign Purchaser" and the Investor represents, warrants and
covenants to the Company, in addition to the other representations,
warranties and covenants set forth in this Section 4, the following,
but only in the event, and to the extent, that the Investor seeks to
rely upon the provisions of Regulation S for the resale of the Common
Shares:

                (i)   Neither the Foreign Purchaser nor any person for
the account of whom such Foreign Purchaser is acting, including the
estate of any such person, a trust of which any such person is a
beneficiary, or a corporation, partnership, trust or other entity
organized under the laws of the United States of America, is a citizen
or resident of the United States of America (a "U.S. Person").

               (ii)   Such Foreign Purchaser will not sell, transfer
or otherwise dispose of the Common Shares for the applicable
restricted period as set forth in Regulation S, and such Foreign
Purchaser will not thereafter sell or otherwise transfer the Common
Shares and any securities issued upon exercise thereof to a U.S.
Person unless the Company has received an opinion of counsel,
satisfactory to the Company, that such transfer will not be in
violation of the Securities Act or any applicable state securities
laws.

              (iii)   The Foreign Purchaser understands that the
Company will not allow any transfer or other disposition of the Common
Shares unless the proposed transferee shall have executed an
instrument containing the representations set forth in the foregoing
paragraphs (i) and (ii) of this section or the Company shall have
received an opinion of counsel satisfactory to the Company to the
effect that such proposed transfer would not be in violation of the
Securities Act or any applicable state securities law.

         (c)   Finders' Fees.  Other than as set forth in the Schedule
of Exceptions, no investment banker, broker, finder or other
intermediary has been retained by or is authorized to act on behalf of
the Company or the Investors who is or might be entitled to any fee or
commission from the Company or any of its affiliates upon consummation
of the transactions contemplated by this Agreement.

     5.   Additional Agreements and Covenants of the Company and the
Investors.

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         (a)   Further Assurances.  The Company and the Investors
agree to execute and deliver such documents, certificates, agreements
and other writings and to take such other actions as may be reasonably
necessary or desirable in order to consummate the transactions
contemplated by this Agreement.

         (b)   Securities Law Transfer Restrictions.  No Investor
shall sell, assign, pledge, transfer or otherwise dispose of or
encumber any of the Common Shares being purchased by it hereunder,
except (i) pursuant to an effective registration statement under the
Securities Act or (ii) pursuant to an available exemption from
registration under the Securities Act and applicable state securities
laws and, if requested by the Company, upon delivery by such Investor
of an opinion of counsel reasonably satisfactory to the Company to the
effect that the proposed transfer is exempt from registration under
the Securities Act and applicable state securities laws; provided that
no such opinion shall be requested for any transfer of Shares that is
exempt from such registration under Rule 144 under the Securities Act.
Any transfer or purported transfer of the Shares in violation of this
Section 5(b) shall be voidable by the Company.  The Company shall not
register any transfer of the Shares in violation of this Section 5(b).
The Company may, and may instruct any transfer agent for the Company,
to place such stop transfer orders as may be required on the transfer
books of the Company in order to ensure compliance with the provisions
of this Section 5(b).

         (c)   Furnishing of Information.  As long as any Investor
owns Common Shares, the Company covenants to timely file (or obtain
extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by the Company after the date
hereof pursuant to the Exchange Act.  As long as any Investor owns
Common Shares, if the Company is not required to file reports pursuant
to the Exchange Act, it will prepare and furnish to the Investors and
make publicly available in accordance with Rule 144(c) such
information as is required for the Investors to sell the Securities
under Rule 144.  The Company further covenants that it will take such
further action as any Investor may reasonably request to the extent
required from time to time to enable such Investor to sell Common
Shares without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144.

         (d)   Piggy-Back Registrations.  If at any time after the
Closing the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its
own account or the account of others under the Securities Act of any
of its equity securities, other than on Form S-4 or Form S-8 (each as
promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with
any acquisition of any entity or business or equity securities
issuable in connection with stock option or other employee benefit
plans, then the Company shall send to each Investor written notice of
such determination and if, within ten days after receipt of such
notice, any such Investor shall so request in writing, the Company
shall include in such registration statement all or any part of the
Common Shares held by such Investor that such Investor requests to be
registered. If an offering in connection with which an Investor is
entitled to registration under this Section 5(d) is an underwritten
offering, then each Investor whose Common Shares are included in such
registration statement shall, unless otherwise agreed by the Company,
offer and sell his, her or its Common Shares in an underwritten
offering using the same underwriter(s) and, subject to the provisions
of this Agreement, on the same terms and conditions as other shares of
the Common Stock included in such underwritten offering and

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shall enter into an underwriting agreement in form and substance
reasonably satisfactory to the Company and the underwriter(s).

     6.   Closing Deliveries.

         (a)   Conditions to the Investor's Obligations.  The
obligation of each Investor to consummate the transactions
contemplated by this Agreement shall be subject to the delivery of the
fulfillment prior to or at the Closing of the following conditions,
any of which may be waived in whole or in part by such Investor:

                (i)   The representations and warranties of the
Company contained in Section 3 shall be true on and as of the Closing
in all material respects with the same effect as though such
representations and warranties had been made on and as of the date of
such Closing, except for those representations and warranties which
address matters only as of a particular date, which shall remain true
and correct as of such particular date and except where the failure to
be true and correct will not have a Material Adverse Effect on the
Company.

               (ii)   The Company shall have performed and complied
with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on
or before the Closing.

              (iii)   The Company shall have obtained any and all
consents, permits and waivers necessary for the consummation of the
transactions contemplated by this Agreement (except for such as may be
properly obtained subsequent to the Closing).

               (iv)   The Company shall have delivered the following:

                     (1)   a copy of the resolutions of the Company's
Board of Directors authorizing (A) the execution, delivery and
consummation of this Agreement and (B) transactions contemplated
hereby and thereby; and

                     (2)   a certificate of the President of the
Company, dated the Closing Date, certifying that the conditions
specified in Sections 6(a)(i) and 6(a)(ii) have been fulfilled.

         (b)   Conditions to the Obligations of the Company.  The
obligation of the Company to consummate the transactions contemplated
by this Agreement shall be subject to the fulfillment at or prior to
the Closing of the following conditions:

                (i)   The representations and warranties of the
Investors contained in Section 4 shall be true on and as of the
Closing in all material respects with the same effect as though such
representations and warranties had been made on and as of the Closing.

               (ii)   All authorizations, approvals or permits, if
any, of any governmental authority or regulatory body of the United
States or of any state or of any securities exchange or trading market
on which the Common Stock is listed that are required in connection
with the lawful issuance and sale of Common Shares pursuant to this
Agreement shall have been duly obtained and

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effective as of the Closing and all filings with such authorities or
regulatory bodies shall have been made and accepted.

              (iii)   Each Investor shall have performed and complied
with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on
or before the Closing.

               (iv)   Each Investor shall have paid the purchase price
as set forth in Section 1 above.

     7.   Miscellaneous.

        (a)   Notices.  All notices, requests and other communications
to any party hereunder shall be in writing (including facsimile or
similar writing) and shall be given to such party at its address or
facsimile number as set forth below, or such other address or
facsimile number as such party may hereinafter specify for the purpose
of giving notice hereunder to the party giving such notice.  Each such
notice, request or other communication shall be effective: (i) if
given by facsimile, when such facsimile is transmitted to the
facsimile number specified pursuant to this Section 7(a) and the
appropriate confirmation is received; (ii) if given by mail, 72 hours
after such communication is deposited in the mails, certified mail,
return receipt requested, postage prepaid, addressed as aforesaid or;
(iii) if given by any other means, when delivered at the address as
follows:

      If to the Company, to:

           Aehr Test Systems
           400 Kato Terrace
           Fremont, CA 94539
           Attn: Chief Financial Officer
           Phone: (510) 623-9400 x321
           Fax: (510) 623-9686

      With a copy to:

           Wilson Sonsini Goodrich & Rosati, P.C.
           650 Page Mill Road
           Palo Alto, CA 94307
           Attn: Mario Rosati
           Phone: (650) 493-9300
           Fax: (650) 493-6811

      If to an Investor, to the address set forth next to such
Investor's name on Exhibit A hereto.

         (b)   Amendments and Waivers.

                (i)   Any term of this Agreement may be amended and
the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either

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retroactively or prospectively), only with the written consent of the
Company and the Investors holding a majority of the Common Shares
issued by the Company pursuant to this Agreement. Any amendment or
waiver effected in accordance with this paragraph shall be binding
upon each holder of any securities purchased under this Agreement at
the time outstanding (including securities into which such securities
are exercisable), each future holder of all such securities, and the
Company.

               (ii)   No failure or delay by any party in exercising
any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right,
power or privilege.  The rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by
law.

         (c)   Successors and Assigns.  The provisions of this
Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns; provided,
however, that no party may assign, delegate or otherwise transfer any
of its rights or obligations under this Agreement without the consent
of the other party.

         (d)   Governing Law.  This Agreement and all matters arising
directly or indirectly herefrom shall be governed by, and construed in
accordance with, the laws of the State of California without regard to
the conflicts of laws principles thereof.

         (e)   Consent to Jurisdiction.  The parties hereto agree that
any suit, action or proceeding relating to or arising out of this
Agreement or the transactions contemplated hereby, shall be brought in
the federal and state courts located in Santa Clara County,
California, so long as one of such courts shall have subject matter
jurisdiction over such suit, action or proceeding, and that any cause
of action arising out of this Agreement directly or indirectly shall
be deemed to have arisen from a transaction of business in the State
of California, and each of the parties hereby irrevocably consents to
the jurisdiction of such courts (and of the appropriate appellate
courts therefrom) in any such suit, action or proceeding and
irrevocably waives, to the fullest extent permitted by law, any
objection that it may now or hereafter have to the laying of the venue
of any such suit, action or proceeding in any such court or that any
such suit, action or proceeding which is brought in any such court has
been brought in an inconvenient forum.  Process in any such suit,
action or proceeding may be served on any party anywhere in the world,
whether within or outside the jurisdiction of any such court.  Without
limiting the foregoing, each party agrees that service of process on
such party as provided in Section 7(a) shall be deemed effective
service of process on such party.

         (f)   WAIVER OF JURY TRIAL.  THE COMPANY AND EACH INVESTOR
EACH HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

         (g)   Counterparts; Facsimile Signatures.  This Agreement may
be executed in counterparts, each of which shall be deemed an original
agreement, but all of which together shall constitute one and the same
instrument.  Execution and delivery of this Agreement by facsimile
transmission shall constitute execution and delivery of this Agreement
for all purposes, with the same force and effect as execution and
delivery of an original manually signed copy hereof.

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         (h)   Entire Agreement.  This Agreement constitutes the
entire agreement and understanding between the parties hereto and
supersedes any and all prior agreements and understandings, written or
oral, relating to the subject matter of this Agreement.

         (i)   Headings.  The headings in this Agreement are included
for convenience of reference only and shall be ignored in the
construction or interpretation hereof.

         (j)   Attorneys Fees.  In the event any suit or action is
instituted to enforce any provision in this Agreement, the
substantially prevailing party in such dispute shall be entitled to
recover from the losing party all fees, costs and expenses of
enforcing any right of such prevailing party under or with respect to
this Agreement, including without limitation, such reasonable fees and
expenses of attorneys and accountants, which shall include, without
limitation, all fees, costs and expenses of appeal.

         (k)   Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof
but shall be interpreted as if it were written so as to be enforceable
to the maximum extent permitted by applicable law, and any such
prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other
jurisdiction.  To the extent permitted by applicable law, the parties
hereby waive any provision of law which renders any provisions hereof
prohibited or unenforceable in any respect.

              [Remainder of page intentionally left blank]

                                   -11-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed by their duly authorized representatives as of the day
and year first above written.

                                           AEHR TEST SYSTEMS

                                           By: /s/ Gayn Erickson
                                              -----------------------
                                              Name: Gayn Erickson
                                              Title: President and Chief
                                                  Executive Officer

                             AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed by their duly authorized representatives as of the day
and year first above written.

                                       Gaylord L. Erickson

                                       By: /s/ Gaylord L. Erickson
                                           ------------------------

                             AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed by their duly authorized representatives as of the day
and year first above written.

                                         Gary Larson

                                         By: /s/ Gary Larson
                                            ---------------------

                             AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                        Carl N. Buck

                                        By: /s/ Carl N. Buck
                                           ---------------------

                             AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                       David Hendrickson

                                       By: /s/ David Hendrickson
                                          -----------------------

                            AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                      Larry Anderson

                                      By: /s/ Larry Anderson
                                         -------------------

                           AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                      Howard Slayen

                                      By: /s/ Howard Slayen
                                         -------------------

                           AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                    Posedel Family Trust

                                    By:	/s/ Rhea Posedel
                                       -------------------
	                               Name: Rhea Posedel
	                               Title: Trustee

                            AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                   Robert Anderson 2000
                                   Revocable Trust

                                   By: /s/ Robert Anderson
                                      ----------------------
	                              Name: Robert Anderson
	                              Title: Trustee

                             AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                  Blinn Family Trust

                                  By: /s/ Adriana E. Blinn
                                     -----------------------
	                             Name: Adriana E. Blinn
	                             Title: Trustee

                            AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                The Patel Family Partners,LP

                                By: /s/ Mukesh Patel
                                   -----------------------
	                           Name: Mukesh Patel
	                           Title: General Partner

                              AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                               Westerly Partners, LP

                               By: /s/ Chris Galvin
                                  -----------------------
	                          Name: Chris Galvin
	                          Title: Managing Member

                            AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                              Cardinal Value, L.P.

                              By: Smart Cardinal Management LLC., General
                              Partner

                              By: /s/ William Smart
                                 ------------------------
	                         Name: William Smart
	                         Title: Managing Member

                              By: /s/ James Smart
                                 ------------------------
	                         Name: James Smart
	                         Title: Managing Member

                             AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

	                              FBO Mel S. Lavitt

                                      By: /s/ Mel S. Lavitt
                                         ---------------------
	                                 Name: Mel S. Lavitt

                             AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                          Wendy Lavitt

                                          By: /s/ Wendy Lavitt
                                             ------------------

                             AEHR TEST SYSTEMS
            SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as
of the day and year first above written.

                                       Jenny June Scott Trust

                                       By: /s/ Geoffrey G. Scott
                                          ----------------------
	                                  Name: Geoffrey G. Scott
	                                  Title: Trustee

                            AEHR TEST SYSTEMS
              SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT

<PAGE>

                              Exhibit A
                              Investors

<TABLE>
<CAPTION>

------------------------------    ------------------     ------------------
                                      Investment           Common Shares
     Name and Address                 Amount ($)             Purchased
------------------------------    ------------------     ------------------
<C>                               <C>                    <C>
Gaylord L. Erickson
5321 Apennines Circle
San Jose, CA 95138                  $50,000.00                 50,000

Gary Larson
3677 El Grande Drive
San Jose, CA 95132                  $10,000.00                 10,000

Carl N. Buck
10320 S. Tantau Ave.
Cupertino, CA 95014                 $10,000.00                 10,000

David Hendrickson
1824 Glen Una Ave
San Jose, CA 95125                  $20,000.00                 20,000

Larry Anderson
388 Sea Wolf Way
Livermore, CA 94550                 $10,000.00                 10,000

Howard Slayen
400 Kato Terrace
Fremont, CA 94539                   $25,000.00                 25,000

Rhea Posedel, Trustee of the
Posedel Family Trust
1736 Terrace Dr.
Belmont, CA 94002                   $25,000.00                 25,000

Robert Anderson, Trustee of the
Robert Anderson 2000
Revocable Trust
398 Questa Ct.
Reno, NV 89511                     $200,000.00                200,000

Adriana E. Blinn, Trustee of the
Blinn Family Trust
398 Questa Ct.
Reno, NV 89511                      $50,000.00                 50,000

Mukesh Patel, General Partner,
The Patel Family Partners, LP
8624 White Oak Ct.
Pleasanton, CA 94588               $250,000.00                250,000

Westerly Partners, LP
201 Mission St
San Francisco, CA 94105            $116,000.00                116,000

<PAGE>

Smart Cardinal Management,
LLC. General Partner of
Cardinal Value, L.P.
PO Box 742
Palo Alto, CA 94302                 $50,000.00                 50,000

National Financial FBO Mel
Lavitt
Fidelity Investments
Attn: Banking Services
Mail Zone: KCIN
100 Crosby Parkway
Covington, KY 41015                $100,000.00                100,000

Wendy Lavitt
PO Box 70
Park City, UT 84060                $100,000.00                100,000

Jenny June Scott Trust
Geoffrey G. Scott Trustee
12930 Morehead
Chapel Hill, NC 27517              $142,000.00                142,000

            Totals               $1,158,000.00              1,158,000

</TABLE>

                                AEHR TEST SYSTEMS
                  SIGNATURE PAGE TO COMMON STOCK PURCHAS AGREEMENT

<PAGE>
                                 Exhibit B
                           Schedule of ExceptionsExhibit (10)R

 

 

Target Corporation 2011 Long-Term Incentive Plan

 

EXECUTIVE

NON-QUALIFIED STOCK OPTION AGREEMENT

(U.S. and Canada)

 

THIS NON-QUALIFIED STOCK OPTION AGREEMENT (the “Agreement”) is made in Minneapolis, Minnesota as of the date of grant (the “Grant Date”) set forth in the award letter (the “Award Letter”) by and between the Company and the person (the “Executive”) identified in the Award Letter.  This award of Options (collectively, may be referred to as the “Option”), provided to you as a Service Provider, is being issued under the Target Corporation 2011 Long-Term Incentive Plan (the “Plan”), subject to the following terms and conditions.

 

1.             Definitions.  Except as otherwise provided in this Agreement, the defined terms used in this Agreement shall have the same meaning as in the Plan.  The term “Committee” shall also include those persons to whom authority has been delegated under the Plan.

 

2.             Grant of Option.  Subject to the relevant terms of the Plan and this Agreement, as of the Grant Date, the Company has granted the Executive the number of Options set forth in the Award Letter.

 

3.             Purchase Price.  The purchase price of each Share covered by the Option, which is 100% or more of the Fair Market Value of a Share on the Grant Date, shall be as set forth in the Award Letter.

 

4.             Exercise.  Subject to Section 4(a), the Executive may exercise all or any part of the vested and previously unexercised portion of the Option at any time and from time to time until the Option expires, subject to the following provisions and subject to the terms of the Plan:

 

(a)           Shares Vested and Purchasable.  The right to purchase 25% of the Shares subject to the Option shall vest on the first anniversary of the Grant Date and the right to purchase an additional 25% of the Shares subject to the Option shall vest on each succeeding anniversary of the Grant Date until the Option is 100% vested (on the fourth anniversary of the Grant Date).  The unvested portion of the Option may not be exercised.

 

(b)           Exercisable Only by the Executive.  Only (i) the Executive, (ii) the Executive’s guardian or legal representative on behalf of the Executive, or (iii) the Executive’s family member to the extent the Option or any part thereof is transferred to such family member pursuant to Section 7(b), may exercise the Option during the Executive’s lifetime.

 

 

(c)           Option Term.  Except as provided in Section 4(d) or the Plan, the Option shall expire on the tenth anniversary of the Grant Date.

 

(d)           Termination of Service.  The Executive may exercise the Option after the Executive’s termination of Service only as follows:

 

(i)            Early Retirement. Subject to Section 4(f), if the Executive’s termination of Service occurs after attaining age 45 and prior to attaining age 60, the Executive has been providing Service for 15 years or more (which 15 years need not be continuous), and the Executive has been providing Service continuously from the Grant Date to the Executive’s date of termination, the Executive may exercise the vested portion of the Option within the applicable extension period or 10 years after the Grant Date, whichever is earlier.  The applicable extension period shall be: (A) 2 years, if the Executive’s termination of Service occurs prior to attaining age 48, (B) 3 years, if the Executive’s termination of Service occurs after attaining age 48 and prior to attaining age 52, (C) 4 years, if the Executive’s termination of Service occurs after attaining age 52 and prior to attaining age 55, and (D) 5 years, if the Executive’s termination of Service occurs after attaining age 55.  The Option shall continue to vest pursuant to Section 4(a) during this post-termination exercise period.

 

(ii)           Normal Retirement.  Subject to Section 4(f), if the Executive’s termination of Service occurs at age 60 or older, the Executive has been providing Service for 10 years or more (which 10 years need not be continuous), and the Executive has been providing Service continuously from the Grant Date to the Executive’s date of termination, the Executive may exercise the vested portion of the Option within 10 years after the Grant Date.  The Option shall continue to vest pursuant to Section 4(a) during this post-termination exercise period.

 

(iii)          Disability.  If the Executive’s termination of Service occurs because of Disability, the Committee determines that the Executive is totally and permanently disabled as such term is defined for purposes of Code Section 409A and the Executive has been providing Service continuously from the Grant Date to the date of termination, then the Executive may exercise the vested portion of the Option (A) within 5 years after such termination of Service or 10 years after the Grant Date, whichever is earlier, or (B) within 10 years after the Grant Date, if on or prior to such termination of Service, the Executive has satisfied the age and years of Service requirements of “Normal Retirement” in Section 4(d)(ii).  The Option shall continue to vest pursuant to Section 4(a) during the extended Option exercise period under this Section 4(d)(iii).  The Executive shall inform the Company or a Subsidiary to which the Executive is providing Service (the “Service Recipient”) of any change in the Executive’s Disability status.  In the event the Executive ceases to be permanently and

 

2

 

totally disabled in the judgment of the Committee, the Option shall terminate 90 days after notice is mailed by the Committee to the Executive stating that the Executive is no longer eligible for an extension under this Section 4(d)(iii), or 10 years after the Grant Date, whichever is earlier.

 

(iv)          Death.  In the event the Executive dies while a Service Provider and if the Executive was providing Service continuously from the Grant Date to the Executive’s date of death, the otherwise unvested portion of the Option shall become fully vested and exercisable on the Executive’s date of death.  The Option may be exercised by the Executive’s beneficiary as designated on the form prescribed by the Company (the “Designated Beneficiary”), or if none has been designated, the representative of the Executive’s estate or the person who acquired the right to exercise the Option by will or the laws of descent and distribution, subject to the provisions of this Agreement, within 5 years from the Executive’s date of death, or 10 years after the Grant Date, whichever is earlier, provided that in either case the period for exercising the Option shall not be less than one year from the Executive’s date of death.  Notwithstanding the preceding sentence, if on or prior to the Executive’s date of death, the Executive has satisfied the age and years of Service requirements of “Normal Retirement” in Section 4(d)(ii), the Option may be exercised within 10 years after the Grant Date, provided that the period for exercising the Option shall not be less than one year from the Executive’s date of death.  In the event the Executive dies after termination of Service and prior to exercising all Shares under the Option, the Designated Beneficiary or the representative of the Executive’s estate or the person who acquired the right to exercise the Option by will or the laws of descent and distribution may exercise the Option, subject to the provisions of this Agreement, but only to the extent vested on the Executive’s date of death, and only within the time the Executive could have exercised the Option had the Executive survived, or one year from the Executive’s date of death, whichever is later, but in no event later than 10 years after the Grant Date.

 

(v)           Cause.  Notwithstanding any other provisions of this Agreement to the contrary, if the Committee concludes, in its sole discretion, that the Executive’s Service was terminated in whole or in part for Cause, the Option shall terminate immediately and the Executive shall have no rights hereunder.

 

(vi)          Other Termination.  If the Executive’s termination of Service occurs for any reason other than as specified in Sections 4(d)(i) through 4(d)(v) and the Executive has been continuously providing Service from the Grant Date to such date of termination, the Executive may exercise the Option within 90 days after such termination of Service (210 days if the Executive would be subject to the provisions of Section 16 of the Exchange Act on

 

3

 

the date of termination), but only with respect to the portion of the Option that is vested at the time the Executive’s Service terminates.  No additional vesting of the Option shall occur during this period.

 

(e)           Changes of Service.  Service shall not be deemed terminated in the case of (i) any approved leave of absence, or (ii) transfers among the Company and any Subsidiaries in the same Service Provider capacity; however, a termination of Service shall occur if (x) the relationship the Executive had with the Company or a Subsidiary at the Grant Date terminates, even if the Executive continues in another Service Provider capacity with the Company or a Subsidiary, or (y) the Executive experiences a “separation from service” within the meaning of Code Section 409A.

 

(f)            Conditions to Extension.  As a condition to granting the post-termination extension periods described in Sections 4(d)(i) and 4(d)(ii), the Executive must enter into and not revoke a valid agreement with the Company containing a release of claims, a covenant not to engage in competitive employment and/or other provisions deemed appropriate by the Committee, in its sole discretion.  As a further condition to granting a post-termination extension period described in Sections 4(d)(i) and 4(d)(ii), if the Executive’s termination of Service is voluntary, the Executive must have commenced discussions with the Company’s Chief Executive Officer or most senior human resources executive regarding the Executive’s consideration of termination at least one year in advance of the Executive’s termination of Service.

 

5.             Manner of Exercise.  Subject to the terms and conditions of this Agreement and the Plan, the Option may be exercised by following the then-current procedures for exercise that are established by the Company; provided, however, that if the Executive is subject to taxation on any portion of his or her Service income in Canada, he or she may not exercise the Option using the stock swap method.

 

6.             Taxes.  The Executive acknowledges that (a) the ultimate liability for any and all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”) legally due by him or her is and remains the Executive’s responsibility and may exceed the amount actually withheld by the Company and/or the Service Recipient and (b) the Company and/or the Service Recipient or a former Service Recipient, as applicable, (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, including, but not limited to, the grant, vesting and/or exercise of the Option; (ii) do not commit and are under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate the Executive’s liability for Tax-Related Items; (iii) may be required to withhold or account for Tax-Related Items in more than one jurisdiction if the Executive has become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable event; and (iv) may refuse to honor the exercise or refuse to deliver the Shares to the Executive if he or she fails to comply with his or her obligations in connection with the Tax-Related Items as provided in this Section.

 

The Executive authorizes and consents to the Company and/or the Service Recipient, or their respective agents, satisfying all applicable Tax-Related Items which the Company

 

4

 

reasonably determines are legally payable by him or her by withholding from the Executive’s wages or other cash compensation paid to the Executive by the Company and/or the Service Recipient.  In lieu thereof, the Executive may elect at the time of exercise such other then-permitted method or combination of methods established by the Company and/or the Service Recipient to satisfy the Executive’s Tax-Related Items.  The Executive shall pay in cash to the Company or the Service Recipient any amount of Tax-Related Items that the Company or the Service Recipient reasonably determines may be required to withhold as a result of his or her participation in the Plan or his or her Option exercise that cannot be satisfied by the means previously described.

 

7.             Limitations on Transfer.  The Option shall not be sold, assigned, transferred, exchanged or encumbered by the Executive other than (a) pursuant to the terms of the Plan, or (b) by gift to a “family member” of the Executive (as defined in General Instruction A(5) to Form S-8 under the Securities Act of 1933), provided that there is no consideration for any such transfer.  Subsequent transfers of a transferred Option shall be prohibited except for a re-transfer or re-assignment for no consideration by any of the persons or entities listed in clause (b) above back to the Executive.  Following transfer, this Option shall continue to be subject to the same terms and conditions that were applicable to the Option immediately before the transfer.  For purposes of any provision of this Agreement or the Plan relating to notice to the Executive or to acceleration or termination of the Option upon death or termination of Service of the Executive, the references to “Executive” shall mean the original grantee of the Option and not any transferee.

 

8.             Change in Control.  In the event of a Change in Control, the extent to which the Option shall become vested and exercisable shall be determined pursuant to the Plan.

 

9.             Recoupment Provision.  In the event of a restatement of the Company’s consolidated financial statements that is caused, in whole or in part, by the intentional misconduct of the Executive, the Company may take one or more of the following actions with respect to the Option, as determined by the Compensation Committee of the Board (the “Compensation Committee”) in its sole discretion, and the Executive shall be bound by such determination:

 

(a)           cancel all or a portion of the Option, whether vested or unvested; and

 

(b)           require repayment of all or any portion of the amounts realized or received by the Executive resulting from the exercise of all or any portion of the Option or the sale of Shares related to the Option.

 

The term “restatement” shall mean the result of revising financial statements previously filed with the Securities and Exchange Commission to reflect the correction of an error.  The term “intentional misconduct” shall be limited to conduct that the Compensation Committee determines indicates intent to mislead management, the Board, or the Company’s shareholders, but shall not include good faith errors in judgment made by the Executive.

 

5

 

The Executive agrees that the Company may setoff any amounts it is entitled to recover under this Section against any amounts owed by the Company to the Executive under any of the Company’s deferred compensation plans to the extent permitted under Code Section 409A. The Executive further agrees that the terms of this Section shall survive the Executive’s termination of Service and any exercise of the Option.  This Section 9 shall not apply, and no amounts may be recovered hereunder, following a Change in Control.

 

10.          No Employment Rights.  Nothing in this Agreement, the Plan or the Award Letter shall confer upon the Executive any right to continued Service with the Company or any Subsidiary, as applicable, nor shall it interfere with or limit in any way any right of the Company or any Subsidiary, as applicable, to terminate the Executive’s Service at any time with or without Cause or change the Executive’s compensation, other benefits, job responsibilities or title provided in compliance with applicable local laws and permitted under the terms of the Executive’s Service contract, if any.

 

(a)           The Executive’s rights to vest in or exercise the Option after termination of Service shall be determined pursuant to Sections 4(d) and 5.  Those rights and the Executive’s date of termination of Service will not be extended by any notice period mandated under local law (e.g., active service would not include a period of “garden leave” or similar notice period pursuant to local law).

 

(b)           This Agreement, the Plan and the Award Letter are separate from, and shall not form, any part of the contract of Service of the Executive, or affect any of the rights and obligations arising from the Service relationship between the Executive and the Company and/or the Service Recipient.

 

(c)           No Service Provider has a right to participate in the Plan.  All decisions with respect to future grants, if any, shall be at the sole discretion of the Company and/or the Service Recipient.

 

(d)           The Executive will have no claim or right of action in respect of any decision, omission or discretion which may operate to the disadvantage of the Executive.

 

11.          Nature of Grant.  In accepting the grant, the Executive acknowledges, understands, and agrees that:

 

(a)           the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement, and any such modification, amendment, suspension or termination will not constitute a constructive or wrongful dismissal;

 

(b)           the Option is an extraordinary item and is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or welfare or retirement benefits or similar payments;

 

6

 

(c)           in no event should the Option be considered as compensation for, or relating in any way to, past services for the Company or the Service Recipient, nor is the Option or the underlying Shares intended to replace any pension rights or compensation;

 

(d)           the future value of the underlying Shares is unknown and cannot be predicted with certainty;

 

(e)           if the underlying Shares do not increase in value, the Option will have no value;

 

(f)            the Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Executive’s participation in the Plan, the exercise of the Option and the sale of Shares at or after exercise;

 

(g)           no claim or entitlement to compensation or damages shall arise from forfeiture of the Option resulting from termination of the Executive’s Service (for any reason whatsoever and whether or not in breach of local labor laws), and in consideration of the grant of the Option to which the Executive is otherwise not entitled, the Executive irrevocably (i) agrees never to institute any such claim against the Company or the Service Recipient, (ii) waives the Executive’s ability, if any, to bring any such claim, and (iii) releases the Company and the Service Recipient from any such claim.  If, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Executive shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claims; and

 

(h)           the Executive is hereby advised to consult with personal tax, legal and financial advisors regarding participation in the Plan before taking any action related to this Option or the Plan.

 

12.          Governing Law; Venue; Jurisdiction.  To the extent that federal laws do not otherwise control, this Agreement, the Award Letter, the Plan and all determinations made and actions taken pursuant to the Plan shall be governed by the laws of the State of Minnesota without regard to its conflicts-of-law principles and shall be construed accordingly.  The exclusive forum and venue for any legal action arising out of or related to this Agreement shall be the United States District Court for the District of Minnesota, and the parties submit to the personal jurisdiction of that court. If neither subject matter nor diversity jurisdiction exists in the United States District Court for the District of Minnesota, then the exclusive forum and venue for any such action shall be the courts of the State of Minnesota located in Hennepin County, and the Executive, as a condition of this Agreement, consents to the personal jurisdiction of that court.

 

13.          Currencies and Dates.  Unless otherwise stated, all dollars specified in this Agreement and the Award Letter shall be in U.S. dollars and all dates specified in this Agreement shall be U.S. dates.

 

7

 

14.          Language Consent.  The parties acknowledge that it is their express wish that the Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. Les parties reconnaissent avoir exigé la rédaction en anglais de cette convention, ainsi que de tous documents, avis et procédures judiciaires, exécutés, donnés ou intentés en vertu de, ou liés directement ou indirectement à la présente convention.  If the Executive has received this Agreement or any other Plan document translated into a language other than English, the English version shall control.

 

15.          Imposition of Other Requirements.  The Company reserves the right to impose other requirements on the Executive’s participation in the Plan, on the Option and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Executive to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

 

16.          Plan and Award Letter Incorporated by Reference; Electronic Delivery.  The Plan, as hereafter amended from time to time, and the Award Letter shall be deemed to be incorporated into this Agreement and are integral parts hereof.  In the event there is any inconsistency between the provisions of this Agreement and the Plan, the provisions of the Plan shall govern.  The Company or a third party designated by the Company may deliver to the Executive by electronic means any documents related to his or her participation in the Plan. The Executive acknowledges receipt of a copy of the Plan and the Award Letter.

 

[End of Agreement]

 

8

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