Document:

License agreement, by and between the registrant and Douglas J. Kelly

 Exhibit 10.15 
  
 LICENSE AGREEMENT, SETTLEMENT, AND MUTUAL RELEASE 
  
 This License Agreement, Settlement, and Mutual Release (hereinafter “Agreement”) is made and entered into,
effective as of April 1, 2002 (“Effective Date”), by AlphaSmart, Inc., a corporation organized under the laws of the State of California, and Douglas J. Kelly (“Kelly”), an individual and named inventor of U.S. Patent No.
5,065,360. AlphaSmart and Kelly are collectively referred to herein as the “Settling Parties” and each individually as a “Settling Party.” 
  

RECITALS 
  
 WHEREAS, the Settling Parties previously entered into an Assignment and Royalty Agreement dated July 27, 1995 and an Amendment to Assignment and
Royalty Agreement dated December 15, 1998, pursuant to which AlphaSmart became assignee of U.S. Patent No. 5,065,360; 
  
 WHEREAS, U.S. Patent No. 5,065,360, entitled “Portable Data Storage and Editing Device,” reissued April 9, 2002 as U.S. Patent No.
RE37,652 E (“Kelly Patent”); 
  
 WHEREAS, the
Settling Parties now wish to enter into this Agreement, in full satisfaction and accord of the Assignment and Royalty Agreement dated July 27, 1995 and Amendment to Assignment and Royalty Agreement dated December 15, 1998, and thereby resolve any
and all disputes arising from the Assignment and Royalty Agreement and Amendment to Assignment and Royalty Agreement amicably, without the necessity of legal action, and without admission of any liability or wrongdoing by any Settling Party.

  
 NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants recited below, the Settling Parties hereby agree as follows: 
  
 AGREEMENT 
  
 1.
Assignment. As of the Effective Date, AlphaSmart hereby reassigns the Kelly Patent back to Kelly. AlphaSmart and Kelly will execute any documents reasonably necessary to effect this reassignment. 
  
 2. License to AlphaSmart. As of the Effective Date, Kelly hereby
grants to AlphaSmart a non-exclusive and worldwide license under the Kelly Patent, including all related patents and patent applications, reexaminations, reissues, continuations, continuations-in-part, foreign counterparts, corresponding foreign
patent applications, and any other patent or application, U.S. and foreign, that claims priority in whole or in part to the Kelly Patent. This License includes the rights to make, have made, use, sell, have sold, import, and have imported any
product covered thereunder or made by a process covered thereunder, and is irrevocable provided all payments are made to Kelly by AlphaSmart in accordance with the terms of this Agreement. 
  
 3. Term of License. The License to AlphaSmart shall be in full force
and effect for a period commencing on the Effective Date of this Agreement and concluding as of the expiration of the remaining term of the Kelly Patent (the “License Term”). 
  
 4. No Marking Requirement. This Agreement imposes no obligation upon AlphaSmart to mark any of its products with any
patent number or other identifying indicia or notices. 

 5. Payment to Kelly. In full consideration of the promises and mutual covenants contained herein,
AlphaSmart agrees to provide Kelly with 20,000 options in AlphaSmart, Inc. stock, exercisable at any time at $0.01 per share (pursuant to a separate Stock Option Agreement attached hereto as Exhibit ”A” and executed contemporaneously), and
to pay a total of one million United States dollars ($1,000,000.00), subject to the requirements of Paragraphs 6 and 7, in the following manner: 
  
 5.1 Upon execution of this Agreement, AlphaSmart will pay Kelly one hundred thousand United States dollars ($100,000.00). 
  
 5.2 During the year ending March 31, 2003, AlphaSmart will pay Kelly a total
of two hundred fifty thousand United States dollars ($250,000.00), in quarterly installments of sixty-two thousand five hundred United States dollars ($62,500.00) beginning June 30, 2002. 
  
 5.3 During the year ending March 31, 2004, AlphaSmart will pay Kelly a total of two hundred thousand United States dollars
($200,000.00), in quarterly installments of fifty thousand United States dollars ($50,000.00) beginning June 30, 2003. 
  
 5.4 During the year ending March 31, 2005, AlphaSmart will pay Kelly a total of one hundred fifty thousand United States dollars ($150,000.00), in
quarterly installments of thirty-seven thousand five hundred United States dollars ($37,500.00) beginning June 30, 2004. 
  
 5.5 During the year ending March 31, 2006, AlphaSmart will pay Kelly a total of one hundred thousand United States dollars ($100,000.00), in quarterly
installments of twenty-five thousand United States dollars ($25,000.00) beginning June 30, 2005. 
  
 5.6 During the year ending March 31, 2007, AlphaSmart will pay Kelly a total of one hundred thousand United States dollars ($100,000.00), in quarterly
installments of twenty-five thousand United States dollars ($25,000.00) beginning June 30, 2006. 
  
 5.7 During the year ending March 31, 2008, AlphaSmart will pay Kelly a total of one hundred thousand United States dollars ($100,000.00), in quarterly
installments of twenty-five thousand United States dollars ($25,000.00) beginning June 30, 2007. 
  
 5.8 Payments made pursuant to Paragraph 5 shall be accorded a reasonable grace period of [*] from the end of each [*] to allow for mail or transit time.

  
 6. Most Favored Nations. Because the License to
AlphaSmart under this Agreement is non-exclusive, Kelly retains the right to license the Kelly Patent after the Effective Date to any third party on any terms without prior approval or consent front AlphaSmart, including as part of any settlement of
any future litigation involving the Kelly Patent. However, in the event that Kelly chooses to license the Kelly Patent to a third party for less than [*], then Kelly shall promptly give notice to AlphaSmart in accordance with Paragraph 17,
and AlphaSmart’s remaining payment obligations as of the effective date of such third party license shall be reduced by [*] that such rate falls short of [*], such that for example, if the third party license 

  

	*	Confidential treatment has been requested for the bracketed portion. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

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rate is [*], then as of the effective date of that third party license, AlphaSmart’s remaining payment obligations shall be reduced by
[*]. 
  
 7. Validity or Enforceability of Kelly
Patent. 
  
 7.1 Litigation or Arbitration Proceedings.
In the event all of the independent claims of the Kelly Patent that cover AlphaSmart’s products are found invalid or unenforceable in any future, final, appealable determination as a result of litigation or arbitration, AlphaSmart’s
obligations for payments set forth in Paragraph 5 shall cease immediately upon such finding by any tribunal with authority to make such a determination, and shall not resume unless and until such finding is reversed or vacated in a decision from
which no appeal can be taken. Kelly shall promptly provide notice to AlphaSmart in accordance with Paragraph 17 of any such future, final, appealable determination. 
  
 7.2 Patent Office Proceedings. Should the Kelly Patent become subject to any re-examination or reissue proceeding,
the payments under the schedule set forth in Paragraph 5 shall cease immediately upon the issuance of a final Office Action from the U.S. Patent and Trademark Office (“Patent Office”) rejecting as unpatentable all of the independent claims
of the Kelly Patent that cover AlphaSmart’s products, and shall not resume unless and until such final rejection is reversed or vacated and the Patent Office formally issues or affirms issuance of the Kelly Patent. Kelly shall promptly provide
notice to AlphaSmart in accordance with Paragraph 17 of any such final rejection. 
  
 7.3 Resumption of Payments. The events described in Paragraphs 7.1 and 7.2 shall cause suspension of the payments set forth in Paragraph 5 by AlphaSmart to Kelly, but do not terminate or suspend any rights or
licenses provided to either party under this Agreement. Once any finding of invalidity or unenforceability has been reversed or vacated in a decision from which no appeal can be taken (per Paragraph 7.1), or the Patent Office reverses or vacates a
final rejection in a re-examination or reissue proceeding and formally issues or affirms issuance of the Kelly patent (per Paragraph 7.2), the payments to Kelly under Paragraph 5 shall resume (albeit delayed by the period of suspension) until the
total amount set forth in Paragraph 5 has been paid, subject to the requirements of Paragraph 6. 
  
 7.4 No Duty To Enforce. As of the Effective Date of this Agreement, Kelly has no affirmative duty to enforce the Kelly Patent against any third
party. 
  
 8. Mutual Releases. 
  
 8.1 Releases by Kelly. Except for the obligations created by this
Agreement, Kelly hereby forever releases and discharges AlphaSmart from any and all claims, demands, debts, liabilities, accounts, obligations, costs, expenses, liens, actions, rights, attorney fees, and claims for relief and claims of action of
every kind and nature, whether known or unknown, fixed or contingent, suspected or unsuspected, foreseen or unforeseen, that he now owns or holds, related to any matter, cause, fact, thing, act or omission whatsoever occurring prior to the Effective
Date, including, without limitation, all claims and causes of action related to or in any way concerning or arising out of the Assignment and Royalty Agreement and Amendment to Assignment and Royalty Agreement. 
  

	*	Confidential treatment has been requested for the bracketed portion. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

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 8.2 Releases by AlphaSmart. Except for the obligations created by this Settlement Agreement,
AlphaSmart hereby forever releases and discharges Kelly from any and all claims, demands, debts, liabilities, accounts, obligations, costs, expenses, liens, actions, rights, attorney fees, and claims for relief and causes of action of every kind and
nature, whether known or unknown, fixed or contingent, suspected or unsuspected, foreseen or unforeseen, that it now owns or holds, related to any matter, cause, fact, thing, act or omission whatsoever occurring prior to the Effective Date,
including, without limitation, all claims and causes of action related to or in any way concerning or arising out of the Assignment and Royalty Agreement and Amendment to Assignment and Royalty Agreement. 
  
 8.3 Waiver of California Civil Code Section 1542. Each of the Settling
Parties acknowledges that they are familiar with Section 1542 of the Civil Code of the State of California, which provides as follows: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  
 Section 1542 of the California Civil Code and any similar statute of any other state or territory are hereby expressly waived with respect to the releases stated in this Settlement Agreement. Each of the Settling Parties acknowledges that
it or its attorneys may hereafter discover facts different from or in addition to those which it or its attorneys now know or believe to be true with respect to the claims, demands, liabilities, accounts, reckonings, obligations, costs, expenses,
liens, actions, claims, and causes of action released in this Settlement Agreement, and each of the Settling Parties agrees that the Settlement Agreement shall be and remain in effect as a full and complete release notwithstanding the discovery or
existence of any such different or additional facts. 
  
 9.
Successors and Assigns. This Agreement shall be binding upon each of the Settling Parties and each of the Settling Parties’ respective agents, representatives, successors, heirs, and assigns. Kelly may assign his rights and obligations
under this Agreement only in connection with an assignment of all rights to the Kelly Patent. AlphaSmart may assign its rights and obligations under this Agreement in connection with a sale of either (a) all or substantially all of the assets of
AlphaSmart, or (b) a controlling interest in AlphaSmart. Any assignment not falling within the express rights to assign set forth herein shall be subject to the prior written consent of the other party to this Agreement, which consent shall not be
unreasonably withheld. Whether expressly authorized or subject to consent, any assignment of the rights and obligations under this Agreement shall require written notice to the other party. 
  
 10. Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of California and federal law where applicable. If any dispute arises out of or relating to this Agreement or the Stock Option Agreement, or the breach of either agreement, the Settling Parties agree first to
try in good faith to resolve the dispute through negotiation, which may be conducted with or without a mediator by agreement of the Settling Parties. If the dispute is not resolved by such negotiation or mediation, either party may initiate
arbitration under the Streamlined Arbitration Rules and Procedures of JAMS by providing written notice to the other party in accordance with Paragraph 17. The Settling Parties agree that any such arbitration shall proceed in Northern California and
waive their rights to proceed in any other forum or jurisdiction. 
  
 11. Entire Agreement. This Agreement constitutes the complete and exclusive statement of the agreement between the Settling Parties, the terms and conditions of which supersede and merge all prior 

  
  

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proposals, understandings and all other agreements, oral and written, between the Settling Parties relating to the subject of this Agreement. 
  
 12. Waiver and Modification. No modification of any of the terms of
this Agreement will be valid unless in writing and signed by each affected Settling Party. No waiver by any Settling Party of a breach of this Agreement will be deemed a waiver by such Settling Party of any subsequent breach. 
  
 13. Severability. If any provision of this Agreement is judicially
determined to be invalid, illegal, or otherwise unenforceable in whole or in part, that provision will be deemed severed from the remainder of this Agreement, and shall in no way affect, impair or invalidate the force and effect of any other
provision of this Agreement. If any provision is deemed invalid due to its scope or breadth, the provision shall be deemed valid to the extent of the scope or breadth permitted by law. 
  
 14. Authority and Warrants. 
  

14.1 Each Settling Party has the right to enter into this Settlement Agreement. Also, each Settling Party represents and warrants that the individual
signing below is authorized to execute this Agreement and the related Stock Option Agreement on behalf of that Settling Party and has the power to bind that Settling Party. 
  
 14.2 Each Settling Party warrants that it has the right to grant the licenses and to convey the rights provided in this
Agreement, and that it has not and will not enter into any contract or arrangement with any third party that is in conflict with, inconsistent with, or in derogation of the terms of this Agreement. 
  
 14.3 The Settling Parties represent and warrant that neither party has actual
knowledge or notice of any pending or future challenge to the Kelly Patent. 
  
 15. Rule of Construction. This Agreement shall be deemed to have been drafted by all of the Settling Parties and, therefore, no rule of construction shall be applied against any of the Settling Parties as the
drafter. This Agreement shall be interpreted and effected as a whole such that one provision will not be construed to negate or override any other provision, subject to the requirements of Paragraph 13. 
  
 16. Consultation with Counsel. Each of the Selling Parties
acknowledges that it has had the full opportunity to consult with counsel regarding this Settlement Agreement. In executing the Settlement Agreement, each of the Selling Parties declares that it has read this Settlement Agreement and, as a result,
knows and understands its contents, and comprehends and agrees to all of its term and conditions. 
  
 17. Notices. Any written notice or communication herein to be given or sent by either party to the other shall be deemed to have been duly given or
sent for the purposes hereof when delivered in person or by overnight courier addressed to the party to receive the same at its address set forth below, or such new address that may be given by notice hereunder: 
  

	 For Kelly:
	 	 For AlphaSmart:

		
	 Douglas J. Kelly
	 	 Jim Walker

	 12854 Mackenzie Drive
	 	 Chief Financial Officer

	 Tustin, California 92782-0923
	 	 AlphaSmart, Inc.

	 	 	 973 University Avenue

	 	 	 Los Gatos, California 95032

  
  

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	 With a copy to:
	 	 With a copy to:

		
	 Michael D. Stewart, Esq.
	 	 Stephen J. Rosenman, Esq.

	 Sheppard, Mullin, Richter & Hampton LLP
	 	 Brobeck, Phleger & Harrison LLP

	 650 Town Center Drive, Fourth Floor
	 	 2000 University Avenue

	 Costa Mesa, California 92626
	 	 East Palo Alto, California 94303

  
 18.
Confidentiality. The Settling Parties agree that the terms and contents of this Agreement shall be kept confidential, except as provided herein. Neither of the Settling Parties shall disclose this Agreement or its terms or contents, or permit
such information to be disclosed, to any third party (other than each party’s respective accountants, insurers, or attorneys with a need to know) except as required by law or court order or unless consented to by the other party in writing
prior to disclosure to any third party. This Paragraph does not, however, prohibit any Settling Party from disclosing the fact that a license under the Kelly Patent exists, including the Most Favored Nations royalty factor of
[*], but all other terms shall otherwise remain confidential. In the event a disclosure is required by law or court order, the disclosing party shall give notice to the other party as such in accordance with Paragraph 17.

  
 19. Counterparts. This Agreement may be executed in
counterparts and by facsimile signature, which taken together shall constitute a single document. 
  
 20. Titles. Heading titles in this Agreement are for convenience only and should not be used to interpret this Agreement. 
  
  

	*	Confidential treatment has been requested for the bracketed portion. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

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 IN WITNESS WHEREOF, the Settling Parties have executed this Agreement by their respective duly
authorized representatives. 
  

		
	 DOUGLAS J. KELLY
	    	 ALPHASMART, INC.

				
	 By:
	 	 /s/    Douglas J. Kelly

	    	 By:
	 	 /s/    James M. Walker

				
	 Dated:
	 	     7/8/02

	    	 Dated:
	 	     7/8/02

  
  
  

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 EXHIBIT A 
  

ALPHASMART, INC. 
 COMMON STOCK
OPTION AGREEMENT 
  
 THIS COMMON STOCK OPTION AGREEMENT
(“Stock Option Agreement”) is made as of April 1, 2002 (“Effective Date”), by and between AlphaSmart, Inc., a California corporation (“AlphaSmart”), and Douglas J. Kelly, a California resident (“Kelly”).

  
 RECITALS 
  
 A. Pursuant to Paragraph 5 of the License Agreement, AlphaSmart agreed to
grant Kelly options to purchase shares of Common Stock. 
  
 B. The
options granted under this Stock Option Agreement and the shares issuable upon exercise of such options shall not be issued under the AlphaSmart, Inc. 1998 Stock Option Plan or any other stock or option plan maintained by AlphaSmart. 
  
 C. Unless otherwise defined herein, all capitalized terms in this Stock
Option Agreement shall have the meaning assigned to them in the attached Appendix. 
  
 NOW, THEREFORE, it is hereby agreed as follows: 
  
 1. Grant of Option. AlphaSmart hereby grants to Kelly, as of the Grant Date, an option to purchase up to twenty thousand (20,000) shares of Common Stock at a price per share of $0.01 (the “Option
Shares”), which shall be purchasable by Kelly from time to time during the option term specified in Paragraph 2 below. 
  
 2. Option Term. This option shall have a term of ten (10) years measured from the Grant Date and shall accordingly expire at the close of
business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 below. 
  
 3. No Transferability. This option shall be neither transferable nor assignable by Kelly. 
  
 4. Dates of Exercise. Effective as of the Grant Date, this
option shall be fully vested and all of the Option Shares shall be immediately exercisable. 
  
 5. Termination of the Option. 
  
 (a) In the event of a Corporate Transaction, at least [*] days prior to the closing of such Corporate Transaction, AlphaSmart shall give Kelly written notice of (i) the pending consummation and
the anticipated date of the closing of such Transaction, and (ii) whether this option shall be terminated or assumed 

  

	*	Confidential treatment has been requested for the bracketed portion. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

 
in connection with such Corporate Transaction. If upon receipt of such notice Kelly elects not to exercise this option, he shall expressly and timely notify
AlphaSmart of such election not to exercise in accordance with Section 14 below at least [*] prior to the anticipated date of the closing of such Corporate Transaction as specified in the notice and this option shall terminate
and cease to be outstanding immediately upon the closing of such Corporate Transaction, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate Transaction. If Kelly expressly elects to exercise
this option, this option shall be exercised in accordance with Section 8 below. If, upon receipt of such notice from AlphaSmart, Kelly does not expressly and timely notify AlphaSmart one way or the other, Kelly shall be deemed to have elected to
exercise this option in accordance with Section 8(b) below (a “Deemed Exercise”). 
  
 (b) If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the number and class of securities
which would have been issuable to Kelly in consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate Transaction, and appropriate adjustments shall also be made to the Exercise Price,
provided the aggregate Exercise Price shall remain the same. 
  
 (c) This Stock Option Agreement shall not in any way affect the right of AlphaSmart to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer
all or any part of its business or assets. 
  
 6. Adjustment
in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting either the outstanding Common Stock or
outstanding Common Stock, as a class, without AlphaSmart’s receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price in order to reflect
such change and thereby preclude a dilution or enlargement of benefits hereunder. 
  
 7. Stockholder Rights. Kelly shall not have any stockholder rights with respect to the Option Shares until Kelly shall have exercised the option, paid the Exercise Price (or exercised pursuant to Section
8(b) below) and become the record holder of the purchased shares. 
  
 8. Manner of Exercising Options. 
  
 (a) In
order to exercise this option with respect to all or any part of the Option Shares, Kelly (or any other person or persons exercising the option) must take the following actions: 
  
 (i) Execute and deliver to AlphaSmart a Restricted Stock Purchase Agreement for the Option Shares, for which the option is
exercised; provided, however, that in the event of a Deemed Exercise, Section 8(b)(ii) below shall apply. 
  
 (ii) Pay the aggregate Exercise Price for the purchased shares by cash or check made payable to AlphaSmart or exercise in accordance with Section 8(b)
below. Except in the event of 

  

	*	Confidential treatment has been requested for the bracketed portion. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

 -2- 

 
exercise in accordance with Section 8(b) below, payment of the Exercise Price must accompany the Restricted Stock Purchase Agreement delivered to AlphaSmart
in connection with the option exercise. 
  
 (iii) Furnish to
AlphaSmart appropriate documentation that the person or persons exercising the option (if other than Kelly) have the right to exercise this option. 
  
 (iv) Execute and deliver to AlphaSmart such written representations as may be requested by AlphaSmart in order for it to comply with the applicable
requirements of Federal and state securities laws. 
  
 (v) Make
appropriate arrangements with AlphaSmart (or Parent or Subsidiary) for the satisfaction of all applicable Federal, state and local income tax withholding requirements applicable to the option exercise. 
  
 (b) At his election, Kelly may also exercise this option in the manner
described in this Section 8(b); provided, however, that in the event of a Deemed Exercise, the following will automatically apply to any such Deemed Exercise: 
  

(i) In the event of a Deemed Exercise (in which case no delivery of notice by Kelly is required hereunder) or in lieu of exercising this option in the
manner otherwise provided above in Section 8(a) above, Kelly may, by delivery at the principal office of AlphaSmart of a notice of exercise stating such election, elect to receive, without the payment by Kelly of any additional consideration, a
number of shares computed using the following formula: 
  

		
	 X =
	 	 Y(A–B)

	 	A

  

		
	Where:	  	X = The number of shares to be issued to Kelly.
		
	 	  	Y = The number of shares in respect of which the net exercise election is made (as of the date such notice is delivered).
		
	 	  	A = The fair market value of one share (as of the date such notice is delivered, or in the case of a Deemed Exercise, one day prior to the anticipated closing date of the
Corporate Transaction as specified by AlphaSmart in its notice to Kelly regarding the Corporate Transaction).
		
	 	  	B = The Exercise Price (as adjusted to the date such notice is delivered or the date of the Deemed Exercise).

  
 For purposes of this Section 8(b),
the fair market value of a share shall be determined as follows: (x) if traded on a securities exchange or through the Nasdaq National Market, the value shall be deemed to be the average of the closing prices of the securities on such exchange over
the thirty (30) day period ending three (3) days prior to the net exercise election; (y) if traded over-the-counter, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) over the thirty (30) day
period ending three (3) days prior to the net exercise; and (z) if there is no active public market, the fair market value shall be the price per share which (A) AlphaSmart could obtain from a willing buyer for AlphaSmart’s common stock, sold
by AlphaSmart from authorized but unissued shares, as (B) such price shall be determined in good faith by the 

  
  

 -3- 

 
Board to be the fair market value to AlphaSmart of such shares; provided, that, if the option is being exercised upon the closing of an initial public
offering, the value will be the initial “Price to Public” of one share of the stock offered as specified in the final prospectus with respect to such offering. 
  
 (ii) Kelly agrees that in the event of a Deemed Exercise, Kelly shall automatically be bound by all of the terms and
conditions of the Restricted Stock Purchase Agreement. At the request of AlphaSmart or its representatives, Kelly shall promptly take any and all actions necessary to evidence the intent of the foregoing, including, without limitation, execution of
the Restricted Stock Purchase Agreement. 
  
 (c) As soon as
practical after the Exercise Date, AlphaSmart shall issue to or on behalf of Kelly (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto. 
  
 (d) In no event may this option be exercised for any fractional shares.

  
 9. Compliance with Laws and Regulations. The
exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by AlphaSmart and Kelly with all applicable requirements of law relating thereto and with all applicable regulations of any Stock
Exchange (or the Nasdaq National Market, if applicable) on which the Common Stock may be listed for trading at the time of such exercise and issuance. 
  
 10. Representations and Warranties of Kelly. Kelly hereby represents, warrants and covenants to AlphaSmart with respect to the options
granted hereunder that: 
  
 (a) Authorization. Kelly
has full power and authority to enter into this Stock Option Agreement, and this Stock Option Agreement constitutes the valid and legally binding obligation, of Kelly enforceable in accordance with its terms. 
  
 (b) Purchase Entirely for Own Account. Kelly acknowledges that
AlphaSmart enters this Stock Option Agreement in reliance upon Kelly’s representation to AlphaSmart, which by Kelly’s execution of this Stock Option Agreement Kelly hereby confirms, that the options received by Kelly and the Common Stock
issuable upon exercise thereof (collectively, the “Securities”) will be acquired for investment for Kelly’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that Kelly
has no present intention of selling, granting any participation in or otherwise distributing the same. By executing this Stock Option Agreement, Kelly further represents that Kelly does not have any contract, undertaking, agreement or arrangement
with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Securities. 
  
 (c) Disclosure of Information. Kelly believes he has received all the information he considers necessary or appropriate for deciding whether
to acquire the Securities. Kelly further represents that he has had an opportunity to ask questions and receive answers from AlphaSmart regarding the terms and conditions of the offering of the Securities and the business, properties, prospects and
financial condition of AlphaSmart. 
  
 (d) Investment
Experience. Kelly is an investor in securities of companies in the development stage and acknowledges that he is able to fend for himself, can bear the economic risk of his 

  
  

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investment, and has such knowledge and experience in financial or business matters that he is capable of evaluating the merits and risks of the investment in
the Securities. 
  
 (e) Accredited Investor. Kelly
is an “accredited investor” within the meaning of Securities and Exchange Commission Rule 501 of Regulation D, as presently in effect. 
  
 (f) Tax Advisors. Kelly has reviewed with his own tax advisors the federal, state and local tax consequences of this investment, where
applicable, and the transactions contemplated by this Stock Option Agreement. Kelly is relying solely on such advisors and not on any statements or representations of AlphaSmart or any of its agents and understands that Kelly (and not AlphaSmart)
shall be responsible for Kelly’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Stock Option Agreement. 
  
 (g) Legal Counsel. Kelly acknowledges that Kelly has had the opportunity to review this Stock Option
Agreement, and the transactions contemplated by this Stock Option Agreement with Kelly’s own legal counsel. Kelly is relying solely on Kelly’s legal counsel and not on any statements or representations of AlphaSmart or any of
AlphaSmart’s agents, including Brobeck Phleger & Harrison LLP, for legal advice with respect to this investment or the transactions contemplated by this Stock Option Agreement. Notwithstanding the foregoing, Kelly shall be entitled to rely
upon the express representations and warranties of AlphaSmart herein and in the License Agreement. Furthermore, A1phaSmart represents and warrants that the documents provided to Kelly in connection with the License Agreement and this Stock Option
Agreement pursuant to the terms of the Non-Disclosure Agreement between AlphaSmart and Kelly dated June             , 2002 are true, accurate and complete copies of the documents they
purport to be. 
  
 11. Representations and Warranties of
AlphaSmart. AlphaSmart hereby represents, warrants and covenants to Kelly that: 
  
 (a) Authorization. AlphaSmart has full corporate power and authority to enter into this Stock Option Agreement, and this Stock Option Agreement constitutes the valid and legally binding obligation, of
AlphaSmart enforceable in accordance with its terms. 
  
 (b)
Reservation of Shares. AlphaSmart has duly reserved for issuance the number of authorized but unissued shares adequate to fulfill its obligations hereunder. Up to and through the earlier of (i) Kelly’s exercise of this option or
(ii) the Expiration Date, AlphaSmart shall take such action as may be necessary to maintain at all times an adequate number of shares reserved for issuance to fulfill its obligations hereunder. 
  
 12. Restrictive Legends. 
  
 (a) NEITHER THIS OPTION NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
OPTION HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. NEITHER THIS OPTION NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS OPTION NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE
SOLD, OFFERED FOR SALE, ASSIGNED, PLEDGED, HYPOTHECATED, ENCUMBERED OR IN ANY OTHER MANNER TRANSFERRED OR DISPOSED OF IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT AND SUCH LAWS OR AN OPINION OF
COUNSEL 

  
  

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REASONABLY SATISFACTORY TO ALPHASMART THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 (b) NEITHER THIS OPTION NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS OPTION MAY BE SOLD, ASSIGNED, TRANSFERRED,
ENCUMBERED, OR IN ANY MANNER DISPOSED OF EXCEPT IN CONFORMITY WITH THE TERMS OF THE RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN ALPHASMART AND THE REGISTERED HOLDER OF THIS OPTION (OR THE PREDECESSOR IN INTEREST TO THE OPTION). ALPHASMART WILL UPON
WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE. 
  
 (c) California Securities Law. THE OFFERING OF THE SECURITIES THAT ARE THE SUBJECT OF THIS OPTION HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE OFFERING
OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION FOR SUCH SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE ISSUANCE IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS STOCK OPTION AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE OFFERING IS SO EXEMPT. 
  
 13. Successors and Assigns. Except to the extent otherwise provided in Paragraph 5 above, the provisions of
this Stock Option Agreement shall inure to the benefit of, and be binding upon, AlphaSmart and its successors and assigns and Kelly, Kelly’s permitted assigns and the legal representatives, heirs and legatees of Kelly’s estate. 

 
 14. Notices. Any notice required to be given or delivered to
AlphaSmart under the terms of this Stock Option Agreement shall be in writing and addressed to AlphaSmart at its principal corporate offices. Any notice required to be given or delivered to Kelly shall be in writing and addressed to Kelly at the
address indicated on the signature page hereto. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail or overnight courier, postage prepaid and properly addressed to the party to be notified. 
  
 15. Counterparts. This Stock Option Agreement may be executed
in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
  
 16. Amendments and Waivers. This Stock Option Agreement shall not be amended nor any Section hereof waived by AlphaSmart in the absence of
approval of such amendment or waiver by a majority of AlphaSmart’s Board. 
  
 17. Arbitration. Any controversy between the parties hereto involving any claim arising out of or relating to this Stock Option Agreement shall be resolved in accordance with Paragraph 10 of the License
Agreement. 
  
 18. Governing Law. The
interpretation, performance and enforcement of this Stock Option Agreement shall be governed by the laws of the State of California without resort to that State’s conflict-of-laws rules. 
  
  
  

 -6- 

 IN WITNESS WHEREOF, the parties have executed this Stock Option Agreement. 
  

	
	ALPHASMART, INC.:
	
	Date: 7/8/02
		
	By:	 	 /s/    James M. Walker

	
	Name: James M. Walker
	
	Title: VP, CFO
		
	Address:	 	973 University Avenue
	 	 	Los Gatos, CA 95032
	
	DOUGLAS J. KELLY:
	
	Date: 7/8/02
		
	By:	 	 /s/    Douglas J. Kelly

		
	Address:	 	12854 Mackenzie Drive
	 	 	Tustin, CA 92782

  
  
  

 APPENDIX 
  
 The following definitions shall be in effect under the Stock Option Agreement: 
  
 A. Board shall mean AlphaSmart’s Board of Directors.

  
 B. Common Stock shall mean AlphaSmart’s
common stock. 
  
 C. Corporate Transaction shall
mean either of the following stockholder-approved transactions to which AlphaSmart is a party: 
  
 a merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of
AlphaSmart’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 
  
 the sale, transfer or other disposition of all or substantially all of AlphaSmart’s assets in complete
liquidation or dissolution of AlphaSmart. 
  
 D. Exercise
Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 8 of the Stock Option Agreement. 
  
 E. Exercise Price shall mean $0.01 (as adjusted for stock splits, stock dividends, combinations and other recapitalizations). 
  
 F. Expiration Date shall mean April 1, 2012. 
  
 G. Grant Date shall mean April 1, 2002. 
  
 H. License Agreement shall mean the License Agreement,
Settlement and Mutual Release effective as of April 1, 2002 by and between Kelly and AlphaSmart. 
  
 I. Option Shares shall mean the 20,000 shares of Common Stock subject to the option. 
  
 J. Parent shall mean any corporation (other than AlphaSmart) in
an unbroken chain of corporations ending with AlphaSmart, provided each corporation in the unbroken chain (other than AlphaSmart) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain. 
  
 K. Restricted Stock Purchase Agreement shall mean the restricted stock purchase agreement in substantially the form of Exhibit B hereto. 
  
 L. Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange. 
  
 M. Subsidiary shall mean any corporation (other than
AlphaSmart) in an unbroken chain of corporations beginning with AlphaSmart, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain. 
  

 EXHIBIT B 
  

RESTRICTED STOCK PURCHASE AGREEMENT 
  
 THIS RESTRICTED STOCK PURCHASE AGREEMENT (“Purchase Agreement”) is made as of this ____ day of ____________, 200__, by and between AlphaSmart,
Inc., a California corporation (“AlphaSmart”), and Douglas J. Kelly, a California resident (“Kelly”). 
  
 WHEREAS, pursuant to that certain option granted by AlphaSmart to Kelly under the Common Stock Option Agreement (the “Option Agreement”)
by and between AlphaSmart and Kelly, dated as of April 1, 2002, to purchase up to Twenty Thousand (20,000) shares of Common Stock (the “Shares”) at the exercise price of $0.01 per share (the “Exercise Price”). 
  
 NOW, THEREFORE, in consideration of the promises of the parties set
forth in this Purchase Agreement, the parties hereby agree as follows: 
  
 I.
PURCHASE OF SHARES 
  
 1.1 Purchase.
Kelly hereby purchases, and AlphaSmart hereby sells to Kelly, ____________ ______________ (________) of the Shares. 
  
 1.2 Payment. Prior to or concurrently with the execution of this Purchase Agreement, Kelly has delivered the aggregate Purchase Price
payable for the Shares. 
  
 II. REPRESENTATIONS AND WARRANTIES OF KELLY

  
 Kelly hereby represents, warrants and covenants to
AlphaSmart with respect to Kelly’s purchase of the Shares that: 
  
 2.1 Authorization. Kelly has full power and authority to enter into this Purchase Agreement, and this Purchase Agreement constitutes the valid and legally binding obligation of Kelly enforceable in accordance with its
terms. 
  
 2.2 Purchase Entirely for Own
Account. Kelly acknowledges that AlphaSmart enters this Purchase Agreement in reliance upon Kelly’s representation to AlphaSmart, which by Kelly’s execution of this Purchase Agreement Kelly hereby confirms that, except in
compliance with the applicable state and federal securities laws, the Shares to be received by Kelly and the Common Stock issuable upon conversion thereof (collectively, the “Securities”) will be acquired for investment for Kelly’s
own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that Kelly has no present intention of selling, granting any participation in or otherwise distributing the same. By executing this
Purchase Agreement, Kelly further represents that Kelly does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the
Securities. 
  
 2.3 Disclosure of
Information. Kelly believes he has received all the information he considers necessary or appropriate for deciding whether to purchase the Shares. Kelly further represents that he has had an opportunity to ask questions and receive answers
from AlphaSmart regarding the terms and conditions of the offering of the Shares and the business, properties, prospects and financial condition of AlphaSmart. 

 2.4 Investment Experience. Kelly is an investor in securities of companies in the
development stage and acknowledges that he is able to fend for himself, can bear the economic risk of his investment, and has such knowledge and experience in financial or business matters that he is capable of evaluating the merits and risks of the
investment in the Shares. 
  
 2.5 Accredited
Investor. Kelly is an “accredited investor” within the meaning of Securities and Exchange Commission (“SEC”) Rule 501 of Regulation D, as presently in effect. 
  
 2.6 Tax Advisors. Kelly has reviewed with Kelly’s own tax advisors the federal, state and local
tax consequences of this investment, where applicable, and the transactions contemplated by this Purchase Agreement. Kelly is relying solely on such advisors and not on any statements or representations of AlphaSmart or any of its agents and
understands that Kelly (and not AlphaSmart) shall be responsible for Kelly’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Purchase Agreement. 
  
 2.7 Legal Counsel. Kelly acknowledges that he has had
the opportunity to review this Purchase Agreement, and the transactions contemplated by this Purchase Agreement with his own legal counsel. Kelly is relying solely on Kelly’s legal counsel and not on any statements or representations of
AlphaSmart or any of AlphaSmart’s agents, including Brobeck, Phleger & Harrison LLP, for legal advice with respect to this investment or the transactions contemplated by this Purchase Agreement. Notwithstanding the foregoing, Kelly shall be
entitled to rely upon the express representations and warranties of AlphaSmart herein and in the Option Agreement. 
  
 III. SECURITIES LAW COMPLIANCE 
  
 3.1 Restricted Securities. Kelly acknowledges that the Shares must be held indefinitely unless subsequently registered under the
Securities Act of 1933, as amended (the “Securities Act”) or unless an exemption from such registration is available. Kelly is aware of the provisions of Rule 144 promulgated under the Securities Act (“Rule 144”) which permit
limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions, which may include, among other things, the existence of a public market for the shares, the availability of certain current public
information about AlphaSmart, the resale occurring not less than one year after a party has purchased and paid for the security to be sold, the sale being effected through a “broker’s transaction” or in transactions directly with a
“market-maker” and the number of shares being sold during any three-month period not exceeding specified limitations. Accordingly, Kelly hereby acknowledges that Kelly is prepared to hold the Shares for an indefinite period and that Kelly
is aware that Rule 144 may not be available to exempt the sale of the Shares from the registration requirements of the 1933 Act. 
  
 3.2 Limitations on Disposition of Shares. Subject to the terms of this Purchase Agreement, Kelly hereby agrees that Kelly shall make
no disposition of the Shares (other than a permitted transfer under Paragraph 4.1) unless and until there is compliance with all of the following requirements: 
  

(a) Kelly shall have notified AlphaSmart of the proposed disposition and provided a written summary of the terms and conditions o f the proposed
disposition; 
  
 (b) Kelly shall have complied with all
requirements of this Purchase Agreement applicable to the disposition of the Shares; 
  
  

 -2- 

 (c) In connection with any sale under Rule 144, Kelly shall have provided AlphaSmart with assurances
(including, without limitation, copies of applicable broker’s and seller’s representation letters and a Notice on Form 144, or, with respect to a sale under 144(k), a standard form stockholder representation letter), in form and substance
satisfactory to AlphaSmart, necessary for compliance with the registration requirements of the 1933 Act or of any exemption from registration available under the 1933 Act (including Rule 144); and 
  
 (d) Kelly shall have provided AlphaSmart with written assurances, in form and
substance satisfactory to AlphaSmart, that the proposed disposition will not result in the contravention of any transfer restrictions applicable to the Shares. 
  

AlphaSmart shall not be required (i) to transfer on its books any Shares that have been sold or transferred in violation of the provisions of
this Article III nor (ii) to treat as the owner of the Shares, or otherwise to accord voting or dividend rights to, any transferee to whom the Shares have been transferred in contravention of this Purchase Agreement. 
  
 3.3 Restrictive Legends. In order to reflect the
restrictions on disposition of the Shares, the stock certificates for the Shares will be endorsed with restrictive legends, including one or more of the following legends: 
  
 (a) “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
THE SHARES MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF (1) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER SUCH ACT, (2) A ‘NO ACTION’ LETTER OF THE SEC WITH RESPECT TO SUCH SALE OR OFFER, OR (3) SATISFACTORY ASSURANCES
TO ALPHASMART THAT REGISTRATION UNDER SUCH ACT IS NOT REQUIRED WITH RESPECT TO SUCH SALE OR OFFER.” 
  
 (b) “ALL OF THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR IN ANY MANNER DISPOSED OF EXCEPT IN
CONFORMITY WITH THE TERMS OF THE RESTRICTED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS A FIRST REFUSAL RIGHT TO ALPHASMART (OR ITS ASSIGNEES) UPON THE SALE, ASSIGNMENT, TRANSFER, ENCUMBRANCE OR OTHER
DISPOSITION OF ALPHASMART’S SHARES. THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.” 
  
 IV. FURTHER RESTRICTIONS ON TRANSFER 
  
 4.1 Restrictions on Transfer. 
  
 (a) The Shares shall not be transferred, assigned, encumbered or otherwise made the subject of disposition by Kelly in contravention of Paragraph 3.2 or
AlphaSmart’s First Refusal Right under Article V or as otherwise limited herein except that Kelly may transfer the Shares to a partner of such partnership or a retired partner of such partnership who retires after the date hereof,
or to the estate of any such partner or retired partner or the transfer is by gift, will or intestate succession of any such partner to his or her spouse or to the siblings, lineal descendants or ancestors of such partner or his or her spouse, or to
a 

  
  

 -3- 

 
family trust; provided and only if such transferee furnishes Kelly and AlphaSmart with a written agreement to be bound by the
terms of this Purchase Agreement. 
  
 (b) Each person (other than
AlphaSmart) to whom the Shares are transferred by means of one of the permitted transfers specified in Paragraph 4.1 must, as a condition precedent to the validity of such transfer, acknowledge in writing to AlphaSmart that such person is bound by
the provisions of this Purchase Agreement and that the transferred Shares are subject to (i) AlphaSmart’s First Refusal Right pursuant to Article V hereunder and (ii) the market stand-off provisions of Paragraph 4.2, to the same extent such
Shares would be so subject if retained by Kelly. 
  
 (c) Any and
all subsequent holders of the Securities who derive their chain of ownership through a permitted transfer from Kelly in accordance with this Paragraph 4.1 shall be bound by the terms of this Purchase Agreement. 
  
 4.2 Market Stand-Off. (a) In connection with the first
underwritten public offering by AlphaSmart of its equity securities pursuant to an effective registration statement filed under the 1933 Act, Kelly shall not sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase
of, or otherwise dispose or transfer for value or otherwise agree to engage in any of the foregoing transactions with respect to, any Shares without the prior written consent of AlphaSmart or its underwriters. Such limitations shall be in effect for
such period of time from and after the effective date of such registration statement as may be requested by AlphaSmart or such underwriters; provided, however, that in no event shall such period exceed one hundred eighty (180) days.

  
 (b) In the event of any stock dividend, stock split,
recapitalization or other change affecting AlphaSmart’s outstanding Common Stock effected without receipt of consideration, then any new, substituted or additional securities distributed with respect to the Shares shall be immediately subject
to the provisions of this Paragraph 4.2, to the same extent the Shares are at such time covered by such provisions. 
  
 (c) In order to enforce the limitations of this Paragraph 4.2, AlphaSmart may impose stop-transfer instructions with respect to the Shares until the end
of the applicable stand-off period. 
  
 V. COMPANY RIGHT OF FIRST REFUSAL

  
 5.1 Company Right of First Refusal.
Subject to the terms and conditions specified in this Article V, each time Kelly proposes to sell any of the Shares (the “Offered Shares”), Kelly shall first make an offering of such Offered Shares to AlphaSmart in accordance with this
Article V (the “First Refusal Right”). 
  
 5.2
Notice of Intended Disposition. Kelly shall deliver a notice (a “Notice”) to AlphaSmart stating (i) its bona fide intention to offer such Offered Shares, (ii) the number of such Offered Shares to be offered, and (iii) the
price and terms, if any, upon which it proposes to offer such Offered Shares. 
  
 5.3 Exercise of Right. Within twenty (20) days after receipt of the Notice, AlphaSmart may elect by written notice to purchase or obtain, at the price and on the terms specified in the Notice, the
number of Offered Shares as specified in the Notice. 
  
  

 -4- 

 5.4 Non-Exercise of Right. If AlphaSmart does not elect to purchase all of the
Offered Shares, Kelly may, during the [*] day period following the expiration of the period provided in Paragraph 5.3 hereof, offer the remaining unsubscribed portion of such Offered Shares to any person or persons at a price
not less than, and upon terms no more favorable to the offeree than those specified in the Notice. If Kelly does not enter into an agreement for the sale of the Offered Shares within such period, or if such agreement is not consummated within
[*] of the execution thereof, the right provided hereunder shall be deemed to be revived and such Offered Shares shall not be offered unless first reoffered to AlphaSmart in accordance herewith. 
  
 5.5 Assignment. AlphaSmart may assign its First Refusal
Right under Article V to any person or entity selected by AlphaSmart’s Board of Directors, including (without limitation) one or more stockholders of AlphaSmart. 
  
 5.6 Notices. Any notice required in connection with (i) the First Refusal Right or (ii) the disposition
of any Shares covered thereby shall be given in writing and shall be deemed effective upon personal delivery or upon deposit in the United States mail, registered or certified, postage prepaid and addressed to the party entitled to such notice at
the address indicated below such party’s signature line on this Purchase Agreement or at such other address as such party may designate by [*] advance written notice under this Paragraph 5.6 to all other parties to this Purchase
Agreement. 
  
 5.7 No Waiver. The failure of
AlphaSmart (or its assignee) in any instance to exercise the First Refusal Right granted under this Article V shall not constitute a waiver of any other repurchase right and/or right of first refusal that may subsequently arise under the provisions
of this Purchase Agreement or any other agreement between AlphaSmart and Kelly. 
  
 5.8 Cancellation of Shares. If AlphaSmart (or its assignees) shall make available, at the time and place and in the amount and form provided in this Purchase Agreement, the consideration for the
Offered Shares to be repurchased in accordance with the provisions of this Section 5, then from and after such time, the person from whom such shares are to be repurchased shall no longer have any rights as a holder of such shares (other than the
right to receive payment of such consideration in accordance with this Purchase Agreement), and such shares shall be deemed purchased in accordance with the applicable provisions hereof and AlphaSmart (or its assignees) shall be deemed the owner and
holder of such shares, whether or not the certificates therefor have been delivered as required by this Purchase Agreement. 
  
 5.9 Termination of First Refusal Right. The First Refusal Right shall automatically terminate upon the occurrence of (i) a Corporate
Transaction as defined in the Option Agreement, or (ii) a firm commitment underwritten initial public offering by AlphaSmart. 
  
 VI. MISCELLANEOUS PROVISIONS 
  
 6.1 Kelly Undertaking. Kelly hereby agrees to take whatever additional action and execute whatever additional documents AlphaSmart
may in its judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either Kelly or the Shares pursuant to the express provision of this Purchase Agreement. 
  

	*	Confidential treatment has been requested for the bracketed portion. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange
Commission. 

  

 -5- 

 6.2 Entire Contract. This Purchase Agreement constitutes the entire contract between
the parties hereto with regard to the subject matter hereof. 
  
 6.3 Governing Law. This Purchase Agreement shall be governed by, and construed in accordance with, the laws of the State of California, as such laws are applied to contracts entered into and performed in such State
without resort to that State’s conflict-of-laws rules. 
  
 6.4 Counterparts. This Purchase Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
  
 6.5 Successors and Assigns. The provisions of this
Purchase Agreement shall inure to the benefit of, and be binding upon, AlphaSmart and its successors and assigns and Kelly and Kelly’s legal representatives, legatees, distributees, assigns and transferees by operation of law, whether or not
any such person shall have become a party to this Purchase Agreement and have agreed in writing to join herein and be bound by the terms and conditions hereof. 
  

6.6 Amendment and Waiver. This Purchase Agreement shall not be amended nor any Section hereof waived by AlphaSmart in the absence
of a writing executed by AlphaSmart. No waiver of any breach or condition of this Purchase Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different matters. 
  
 6.7 Arbitration. Any controversy between the parties
hereto involving any claim arising out of or relating to this Purchase Agreement shall be resolved in accordance with Paragraph 10 of the License Agreement, Settlement and Mutual Release. 
  
  
  

 -6- 

 IN WITNESS WHEREOF, the parties have executed this Purchase Agreement on the day and year first
indicated above. 
  

	
	ALPHASMART, INC.:
		
	By:	 	  

		
	Name:	 	 
		
	Title:	 	 
	
	DOUGLAS J. KELLY:
	
	  

  
  

 -7-2003 Restricted Stock Plan

 Exhibit 10.2 
  

  
 LIQUIDGOLF HOLDING CORPORATION 
 2003 RESTRICTED STOCK PLAN 
  

  
 1. Purpose. The purpose of the LIQUIDGOLF HOLDING CORPORATION 2003 RESTRICTED STOCK PLAN (the “Plan”) is to advance the
interest of LIQUIDGOLF HOLDING CORPORATION, a Delaware corporation (the “Company”) and Related Entities by providing an additional incentive to attract, retain and motivate qualified and competent Employees, Directors and
Consultants upon whose efforts and judgment the success of the Company and its Related Entities are largely dependent, through the encouragement of stock ownership in the Company by such persons. 
  
 2. Definitions. As used herein, the following terms shall have the
meaning indicated: 
  
 (a)
“Board” shall mean the Board of Directors of the Company. 
  
 (b) “Cause” shall, with respect to any Recipient, have the equivalent meaning (or the same meaning as
“cause” or “for cause”) set forth in any employment agreement between the Recipient and the Company or a Related Entity or, in the absence of any such agreement, such term shall mean (i) the failure by
the Recipient to perform his or her duties as assigned by the Company (or a Related Entity) in a reasonable manner, (ii) any violation or breach by the Recipient of his or her employment agreement with the Company (or a Related Entity), if any,
(iii) any violation or breach by the Recipient of his or her non-competition and/or non-disclosure agreement with the Company (or a Related Entity), if any, (iv) any act by the Recipient of dishonesty or bad faith with respect to the Company (or a
Related Entity), (v) chronic addiction to alcohol, drugs or other similar substances affecting the Recipient’s work performance, or (vi) the commission by the Recipient of any act, misdemeanor, or crime reflecting unfavorably upon the Recipient
or the Company or a Related Entity. The good faith determination by the Committee of whether the Recipient’s employment was terminated by the Company for “Cause” shall be final and binding for all purposes hereunder. 
  
 (c) “Change in Control” shall mean:

  
 (i) Approval by the stockholders of the
Company of (1) a reorganization, merger, consolidation or other form of corporate transaction or series of transactions, in each case, with respect to which persons who were the stockholders of the Company immediately prior to such reorganization,
merger or consolidation or other transaction do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated Company’s then
outstanding voting securities in substantially the same proportions as their ownership immediately prior to such reorganization, or (2) a liquidation or dissolution of the Company, or (3) the sale of all or substantially all of the assets of the
Company (unless such reorganization, merger, consolidation or other corporate transaction, liquidation, dissolution or sale is subsequently abandoned); OR 
  

 (ii) Individuals who, as of the Effective Date of this Plan, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the Effective Date of this Plan whose election, or nomination for election by
the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an
actual or threatened election contest relating to the election of the Directors of the Company) shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board; OR 
  
 (iii) the acquisition (other than from the Company) by any
person, entity or “group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act, of more than 50% of either the then outstanding shares of the Company’s Common Stock or the combined voting power of the
Company’s then outstanding voting securities entitled to vote generally in the election of directors (hereinafter referred to as the ownership of a “Controlling Interest”) excluding, for this purpose, any acquisitions by
(1) the Company, (2) any person, entity or “group” that as of the Date of Grant owns beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act) of a Controlling Interest or (3) any employee
benefit plan of the Company. 
  
 (d)
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (e) “Committee” shall mean the committee described in Section 11(a) hereof. 
  
 (f) “Common Stock” shall mean the
Company’s Common Stock, par value $.001 per share. 
  
 (g) “Company” shall mean LiquidGolf Holding Corporation, a Delaware corporation, and its successors or assignees. 
  
 (h) “Consultant” shall mean any person (other than an Employee or a Director, solely
with respect to such person’s capacity or services as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or such Related Entity. 
  
 (i) “Continuous Service” shall mean
the continuous service to the Company or a Related Entity, without interruption, of Recipient, in the Recipient’s capacity as an Employee, Director and/or a Consultant of the Company. Continuous Service shall not be considered interrupted (or
to have ceased or terminated) in the case of (1) any approved leave of absence, (2) transfers among the Company, any Related Entity, or any successor thereto, so long as Recipient continues in his capacity as an Employee, Director or Consultant
thereof, or (3) any change in status (e.g., from Employee to Director, from Employee to Consultant, etc.), if and so long as (x) the individual remains in the service of the Company or a Related Entity in any 
  

 2 

 capacity of Employee, Director or Consultant (except as otherwise provided herein), and (y) which change
in status is approved in writing by the Company in its sole discretion (with an express acknowledgement that such change in status continues, and does not cease or terminate, “Continuous Service” for purposes of this Agreement). An
approved leave of absence shall include sick leave, military leave or any other authorized personal leave approved by the Company in writing. 
  
 (j) “Date of Grant” shall mean the date on which the Committee grants to the Recipient shares of Restricted Stock
pursuant to this Plan, as set forth in the applicable Restricted Stock Agreement. 
  
 (k) “Director” shall mean a member of the Board or the board of directors of any Related Entity. 
  
 (l) “Disability” shall mean the
Recipient’s inability to perform his or her duties for the Company for one hundred eighty (180) days in any twelve (12) month period as a result of mental or physical incapacity, illness or disability. 
  
 (m) “Effective Date” shall mean the
date on which the Company’s stockholders approve the Plan at a meeting to be held on August 13, 2003. 
  
 (n) “Employee” shall mean any person, including an Officer or Director, who is an employee of the Company or any
Related Entity. The payment of a Director’s normal compensation and fee (as applicable to all Directors) by the Company or a Related Entity shall not be sufficient to constitute “employment” by, or to cause such person to be an
“Employee” of, the Company. 
  
 (o)
“Officer” shall mean the Company’s Chairman of the Board, President, Chief Executive Officer, principal financial officer, principal accounting officer, any vice-president of the Company, any other officer who performs a
policy-making function, or any other person who performs similar policy-making functions for the Company. As used in this paragraph, the phrase “policy-making function” does not include policy-making functions that are not
significant. If pursuant to Item 401(b) of Regulation S-K (17 C.F.R. § 229.401(b)) the Company identifies a person as an “executive officer,” the person so identified shall be deemed an “Officer” even though such person may
not otherwise be an “Officer” pursuant to the foregoing provisions of this paragraph. 
  
 (p) “Parent” shall mean any corporation (other than the Company), whether now or hereafter existing, (i) which
owns capital stock possessing 50% or more of the total combined voting power of all classes of capital stock of the Company, and/or (ii) in an unbroken chain of corporations ending with the Company, if each of the corporations in the chain (other
than the Company) owns stock possessing 50% or more of the combined voting power of all classes of capital stock in one of the other corporations in the chain. 
  

(q) “Plan” shall mean this LiquidGolf Holding Corporation 2003 Restricted Stock Plan. 
  

 3 

 (r) “Recipient” shall mean any Employee, Director or Consultant
who is awarded a grant of Shares pursuant to this Plan, or any individual who succeeds to the rights hereunder of such Employee, Director or Consultant in accordance with this Plan and any applicable Restricted Stock Agreement. 
  
 (s) “Related Entity” shall mean any
Parent or Subsidiary, and any business, corporation, partnership, limited liability company, trust or other entity in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly. 
  
 (t) “Restricted Stock” shall mean
Shares issued pursuant to this Plan. 
  
 (u)
“Restricted Stock Agreement” shall mean the agreement entered into between the Company and a Recipient, pursuant to Section 4(b) hereof, which agreement evidences the award of Shares pursuant to the Plan and which sets
forth certain terms, provisions, conditions and restrictions relating to the grant of Shares hereunder and thereunder. 
  
 (v) “Securities Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (w) “Securities Act” means the
Securities Act of 1933, as amended. 
  
 (x)
“Share” shall mean a share of common stock of the Company. 
  
 (y) “Subsidiary” shall mean any corporation (other than the Company) in any unbroken chain of corporations
beginning with the Company if, at the time of the granting of the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. 
  
 (z) “Transfer” shall mean any sale, transfer, encumbrance, gift, donation, assignment, pledge, hypothecation, or other disposition, whether similar or dissimilar to those previously enumerated, whether voluntary or
involuntary, and including, but not limited to, any disposition by operation of law, by court order, by judicial process, or by foreclosure, levy or attachment. 
  
 (aa) “Vested Shares” shall mean the portion of the Restricted Stock granted pursuant
to the Plan in which the Recipient is vested pursuant to Section 5(a) hereof and the Restricted Stock Agreement pursuant to which the Restricted Stock was granted (and any stock dividends declared with respect thereto). 
  
 (bb) “Voting Agreement” shall mean
those voting agreements and voting trusts that the Committee may require the Recipient to enter into as a condition to the issuance of Shares under this Plan pursuant to subsection 6(b)(iii) hereof. 
  
 3. Available Shares of Restricted Stock. The Committee may from time
to time grant to one or more Recipients up to an aggregate of One Million Five Hundred Thousand 
  

 4 

 (1,500,000) shares of restricted common stock from the Company’s authorized and unissued Shares (collectively the
“Restricted Stock”). If any Shares of Restricted Stock granted under the Plan are forfeited or surrendered, such forfeited or surrendered Shares shall be available for future grants by the Committee under this Plan.

  
 4. Conditions for Grant of Restricted Stock.

  
 (a) Each grant of shares of Restricted Stock
shall be evidenced by a Restricted Stock Agreement that may contain any term deemed necessary or desirable by the Committee, provided such terms are not inconsistent with this Plan or any applicable law. Recipients shall be those persons selected by
the Committee from the class of all regular Employees, Directors and Consultants of the Company. 
  
 (b) In granting shares of Restricted Stock, the Committee shall take into consideration the contribution the Recipient has made to the
success of the Company and such other factors as the Committee shall determine. The Committee shall also have the authority to consult with and receive recommendations from officers and other personnel of the Company with regard to these matters.
The Committee may from time to time in granting shares of Restricted Stock under the Plan prescribe such other terms and conditions concerning such shares as it deems appropriate, including, without limitation, (i) the amount, if any, to be paid by
the Recipient for the Restricted Stock, (ii) the date or dates on which the Restricted Stock becomes vested, and (iii) the events upon which the Recipient may be deemed to have forfeited his right, title or interest, if any, in the Shares, provided
that such terms and conditions are not more favorable to a Recipient than those expressly permitted herein. 
  
 (c) The shares of Restricted Stock granted to a Recipient under this Plan shall be in addition to his or her regular salary, pension, life
insurance or other benefits related to the Recipient’s employment with the Company. Neither the Plan nor any Restricted Stock grant under the Plan shall confer upon any person any right to employment or service, or continuance of employment or
service with the Company. 
  
 5. Vesting of Restricted
Shares. 
  
 (a) The shares of Restricted
Stock granted to a Recipient pursuant to this Plan shall vest and thus become Vested Shares at such times and in such a manner as determined by the Committee at the time of the grant, and as set forth in the Restricted Stock Agreement to be entered
into by and between the Company and the Recipient. 
  
 (b) The Committee shall be authorized to accelerate the vesting of any Restricted Stock under this Plan or the Restricted Stock Agreement, at such times and upon such terms and conditions as the Committee shall deem advisable. 

 

 5 

 6. Issuance of Restricted Shares. 
  
 (a) Upon the execution and delivery of a Restricted Stock Agreement, the Company shall be deemed to have
issued and delivered to the Recipient, and the Recipient party thereto shall be deemed to have received, the number of Shares specified under such Restricted Stock Agreement, which shares shall have all such rights, benefits and entitlements, and be
subject to all terms, provisions, conditions and restrictions, as are provided for pursuant to such Restricted Stock Agreement and this Plan. 
  
 (b) As a condition to any issuance of Shares pursuant to this Plan, the Committee may require such agreements or undertakings as the
Committee may deem necessary or advisable to facilitate compliance with any applicable law or regulation including, but not limited to, the following: 
  
 (i) a representation and warranty by the Recipient to the Company, at the Date of Grant, that he is acquiring the Shares to be issued to
him for investment and not with a view to, or for sale in connection with, the distribution of any such Shares; 
  
 (ii) a representation, warranty and/or agreement to be bound by any legends endorsed upon the certificate(s) for such Shares that are, in
the opinion of the Committee, necessary or appropriate to facilitate compliance with the provisions of any securities laws deemed by the Committee to be applicable to the issuance and transfer of such Shares; and 
  
 (iii) a representation, warranty and/or agreement to be
bound by any other agreement to be entered into with respect to such Shares that are, in the opinion of the Committee, deemed to be necessary or appropriate, including, without limitation, a Voting Agreement and/or a stockholders agreement.

  
 7. Rights as to Shares. 
  
 (a) A Recipient to whom Shares of Restricted Stock have been
granted under this Plan shall have all the rights of a holder of common stock of the Company with respect to the Shares awarded hereunder (regardless of the extent to which such Shares are vested), including, without limitation, (i) the right to
receive dividends with respect to such Shares, (ii) the right to vote such Shares, and (iii) the rights available to all holders of Shares of the Company upon any merger, consolidation, reorganization, liquidation or dissolution, stock split-up,
stock dividend or recapitalization undertaken by the Company; provided, however, that all of such rights shall be subject to the terms, provisions, conditions and restrictions set forth in (x) this Plan; (y) the applicable Restricted
Stock Agreement, and (z) any other applicable agreement including, without limitation, a Voting Agreement and/or a stockholders agreement. Any shares issued to the Recipient as a dividend with respect to Restricted Stock shall have the same status
and bear the same legend as the Restricted Stock and shall be held by the Company, if the Restricted Stock is being so held unless otherwise determined by the Committee. 
  

 6 

 (b) Notwithstanding any other term or provision hereof, once the Shares of Restricted
Stock granted to a Recipient hereunder have become vested in accordance with the terms of this Plan (and the applicable Restricted Stock Agreement), the holder of such Vested Shares shall have all the rights and privileges of a holder of shares of
Common Stock of the Company (not otherwise granted in Section 7(a) of this Plan), and such Vested Shares shall no longer be subject to or bound or governed by this Plan (or the applicable Restricted Stock Agreement). The Vested Shares,
however, may still be subject to the terms and conditions of an applicable agreement such as a Voting Agreement or stockholders agreement. 
  
 (c) Notwithstanding any term or provision of this Plan to the contrary, the existence of this Plan, or of any outstanding Shares awarded
hereunder, shall not affect in any manner the right, power or authority of the Company to make, authorize or consummate: (i) any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business; (ii) any merger, share exchange or consolidation by or of the Company; (iii) any issue by the Company of debt securities, or preferred or preference stock, that would rank prior to or on parity with the Shares; (iv) the dissolution or
liquidation of the Company; (v) any sale, transfer or assignment of all or any part of the stock, assets or business of the Company; or (vi) any other corporate transaction, act or proceeding (whether of a similar character or otherwise).

  
 8. Transferability. Unless otherwise provided in the
Restricted Stock Agreement, the Shares are not transferable otherwise than by will or the laws of descent and distribution. Each and every stock certificate representing Shares issued to a Recipient shall bear such restrictive legends as are
necessary or appropriate to reflect restrictions on transferability or to comply with the provisions of any securities law or other restriction applicable to the issuance of the Shares, together with such other legend(s) as the Committee shall in
its sole discretion deem appropriate. The Company is under no obligation to register the Shares under applicable federal or state securities laws (the “Securities Laws”); before a Recipient may transfer any Shares which
become Vested Shares hereunder such Shares must be either registered, or exempt from registration, under such laws. 
  
 9. Restrictions. 
  
 (a) The Shares granted to the Recipient pursuant to this Plan shall not be subject to a Transfer without complying with the terms,
provisions and conditions of the Plan and the applicable Restricted Stock Agreement for such period of time as determined by the Committee and set forth in the Restricted Stock Agreement. Any Transfer or attempted Transfer not in compliance with
this subsection 9(a), or any other applicable provision or restriction of this Plan, such Restricted Stock Agreement shall be null, void and of no effect, and shall not be effected upon the stock transfer records of the Company. 

 
 (b) Each Recipient shall be required, as a condition to
the grant of Shares pursuant to this Plan, to acknowledge and agree that the Committee may, if it chooses in its sole and absolute discretion, permit the Transfer of the Shares out of such Recipient’s name, which Transfer may be conditioned
upon any condition(s) the Committee may deem to impose, but only when such request for transfer is accompanied by an opinion, satisfactory to the Company, 
  

 7 

 of counsel to the effect that the proposed transfer (i) is being effected in accordance with, and does
not violate, an applicable exemption from registration under the Securities Laws, and (ii) does not violate or conflict with any term or provision of this Plan or the applicable Restricted Stock Agreement. 
  
 (c) Each Recipient must agree to indemnify and hold harmless
the Company and its directors, officers, employees, agents and controlling stockholders, and their respective heirs, representatives, administrators, successors and assigns, from, against and in respect of any and all liabilities, claims, causes,
damages, deficiencies, costs, expenses or losses arising out of or resulting from (i) any transfer of Shares by him in violation of any Securities Laws, or (ii) any breach by such Recipient of any representation, warranty, covenant or agreement
contained in this Plan or in the applicable Restricted Stock Agreement. 
  
 10. Adjustment of Shares. Subject to any required action by the stockholders of the Company, the number of Shares covered by this Plan and any Restricted Stock Agreement, and the aggregate number of shares which have been authorized
for award and issuance hereunder and under any Restricted Stock Agreement, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a stock dividend or through any recapitalization,
reclassification, stock split-up, combination or Company exchange of shares (other than any such exchange or issuance of Shares through which capital stock is issued to effect an acquisition of another business or entity). Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares subject
to this Plan. 
  
 11. Administration of the Plan.

  
 (a) The Plan shall be administered by the
Compensation Committee of the Board of the Company (the “Committee”) consisting of such number of members appointed from time to time by the Board, or if no Committee is appointed, then the Plan shall be administered by the
Board, which shall then be deemed the “Committee” for purposes of this Plan. 
  
 (b) Subject to the limitations of Section 12 hereof, the Committee, from time to time, may adopt rules and regulations for carrying
out the purposes of the Plan. The determinations by the Committee, and the interpretation and construction of any provision of the Plan or any Restricted Stock Agreement by the Committee, shall be final and conclusive. 
  
 (c) Any and all decisions or determinations of the Committee
shall be made either (i) by a majority vote of the members of the Committee at a meeting or (ii) without a meeting by the unanimous written approval of the members of the Committee. 
  
 12. Interpretation. 
  
 (a) At any time that any shares of the Common Stock of the Company shall be registered under Section 12 of the Securities Exchange
Act, it is the intent of the Company that 
  

 8 

 the Plan comply in all respects with Rule 16b-3 promulgated under the Securities Exchange Act
(“Rule 16b-3”), and any ambiguities or inconsistencies in construction of the Plan shall be interpreted to give effect to such intention, and if any provision of the Plan is found not to be in compliance with Rule 16b-3, such
provision shall be deemed null and void to the extent required to permit the Plan to comply with Rule 16b-3. The Committee may from time to time adopt rules and regulations under, and amend, the Plan in furtherance of the intent of the foregoing.

  
 (b) If any provision of this Plan should be
held invalid, illegal or unenforceable for any reason, such determination shall not affect the remaining provisions hereof, but instead this Plan shall be construed and enforced as if such provision had never been included in this Plan. 

 
 (c) This Plan shall be governed by and construed in
accordance with the laws of the State of Florida. 
  
 (d) Headings contained in this Plan are for convenience only and shall in no manner be construed as part of this Plan. 
  
 (e) Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate. 
  
 (f) Inasmuch as the Shares may not be readily purchased or
sold in the open market and the Company and the Recipients desire to impose significant restrictions on the transfer of such Shares, irreparable damage will result in the event that the restrictions set forth in this Plan or in any Restricted Stock
Agreement are not specifically enforced and, therefore, any damages available at law for a breach of the restrictions set forth in this Plan would not be an adequate remedy. Therefore, the terms, provisions, conditions and restrictions of this Plan
(and the applicable Restricted Stock Agreement) and the obligations of the Company and the Recipient hereunder (and thereunder) shall be enforceable in a court of equity, or other tribunal having jurisdiction, by a decree of specific performance,
and appropriate injunctive relief may be applied for and awarded in connection therewith and the parties further agree that no bond of the Company shall be required in connection therewith. 
  
 13. No Right to Continued Employment or Engagement. Nothing in this
Plan shall confer upon any Recipient, or give rise to any inference regarding, any right to or claim for employment or service, or continued employment or service, or to any rights incident or related to any such employment with or services to the
Company; nor shall it interfere in any way with any Recipient’s right to terminate his or her employment or services with the Company or any Related Entity at any time. 
  
 14. Successors/Assignees of Company. Any successor(s) or assignee(s) of the Company shall be obligated to assume any
and all obligations of the Company under this Plan and under any Restricted Stock Agreements entered into pursuant to this Plan. 
  
 15. Amendment/Termination of Plan. The Committee, without approval of the Company’s stockholders, may at any time amend the terms or
provisions of this Plan or terminate 
  

 9 

 or suspend this Plan; provided, however, that any such amendment, termination or suspension shall not
affect any Shares, or the terms or provisions of any grant of Shares (in accordance with the applicable Restricted Stock Agreement), awarded prior to such amendment, termination or suspension; and provided further, that no such amendment shall
eliminate the requirement in Section 3 hereof that any Shares of Restricted Stock that are forfeited or surrendered pursuant to the Plan be reallocated among those Recipients who have received prior grants of Restricted Stock under this Plan.
No Shares may be awarded while this Plan is suspended or after it is terminated. 
  
 16. Termination Date. The Plan shall terminate on the tenth anniversary of the Effective Date. 
  

 10

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