Document:

Form of 2005 Equity Incentive Plan - Stock Option Award Agreement

 Exhibit No. 10.2 
  

			
	Notice of Grant of Stock Option	 	Wind River Systems, Inc.
	and Option Agreement	 	ID: 94-2873391
	 	 	500 Wind River Way
	 	 	Alameda, CA 94501

  

					
	 [Name of Optionholder]
	  	Option Number:	  	[Option Number]
	 [Address of Optionholder]
	  	Plan:	  	2005 Equity Incentive Plan

  
 I.
NOTICE OF GRANT 
  
 Effective on [Date of Grant] (the “Date of
Grant”), you have been granted a [Non-Qualified] Stock Option to buy [Number of Shares] shares of Wind River Systems, Inc. (the “Company”) Common Stock $[Price Per Share] per share. The date on which your shares begin to
vest is [Vesting Start Date]. 
  
 The total option price of the shares granted is
[Total Exercise Price of Option]. 
  
 Shares in each period will become fully
vested on the dates shown below: 
  

							
	 Shares

	 	 Vest Type

	 	 Full Vest

	 	 Expiration Date

	 [Number of Shares]
	 	On Vest Date	 	[Month/Day/Year]	 	[Month/Day/Year]
	 [Number of Shares]
	 	Monthly	 	[Month/Day/Year]	 	[Month/Day/Year]

  
 II.
AGREEMENT 
  
 1. Grant of Option. The Company hereby
grants to you (the “Optionee”) an option (the “Option”) to purchase the number of Shares, as set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the “Exercise
Price”), subject to the terms and conditions of the 2005 Equity Incentive Plan (the “Plan”), which is incorporated herein by reference. Subject to Section 24(c) of the Plan, in the event of a conflict between the terms and
conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail. 
  
 If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock
Option under Section 422 of the Code. However, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it shall be treated as a Nonstatutory Stock Option
(“NSO”). 
  
 2. Exercise of Option.

  
 (a) Right to Exercise. This Option is exercisable
during its term in accordance with the vesting schedule set out in the Notice of Grant and the applicable provisions of the Plan and this Option Agreement. 
  
 (b) Method of Exercise. This Option is exercisable by delivery of an exercise notice, which shall state the election to exercise this Option and
the number of shares of Common Stock in respect of which this Option is being exercised (the “Exercised Shares”), that is submitted in the manner and form designated by the Company, as communicated by the Company’s Stock
Administration Department (the “Exercise Notice”). The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares, together 

 with any applicable withholding taxes. This Option shall be deemed to be exercised upon receipt by the Company of the
Exercise Notice accompanied by such aggregate Exercise Price, together with any applicable withholding taxes. 
  
 (c) Method of Payment. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, to the extent permitted
by Applicable Laws, at the election of the Optionee: 
  
 (i)
cash; 
  
 (ii) check; or 
  
 (iii) delivery of a properly executed Exercise Notice together with such
other documentation as the Administrator and the broker, if any, shall require to effect an exercise of the Option and delivery to the Company of the sale proceeds required to pay the Exercise Price. 
  
 (d) Rights as Stockholder. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Exercised Shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Exercised
Shares, notwithstanding the exercise of the Option. The Exercised Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option. No adjustment will be made for a dividend or other right for which the record
date is prior to the date of issuance, except as provided in Section 22 of the Plan. 
  
 (e) Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase or disposition of Exercised Shares. Optionee represents that Optionee has
consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Exercised Shares and that Optionee is not relying on the Company for any tax advice. 
  
 No Exercised Shares shall be issued pursuant to the exercise of this Option
unless such issuance and exercise complies with Applicable Laws. Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the Option is exercised with respect to such
Exercised Shares. 
  
 3. Non-Transferability of Option.
This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by the Optionee. The terms of the Plan and this Option Agreement shall be
binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
  
 4. Term of Option. This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option
Agreement. 
  
 5. Tax Obligations. 
  
 (a) Withholding Taxes. Optionee agrees to make appropriate
arrangements with the Company (or the Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state, local and foreign income and employment tax withholding requirements applicable to the Option exercise. Optionee
acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise. 
  
 (b) Notice of Disqualifying Disposition of ISO Shares. If the Option granted to Optionee herein is an ISO, and if
Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the date one year after the date of exercise, the Optionee will immediately
notify the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee. 
  

 -2- 

 6. Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and
this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter
hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. This agreement is governed by the internal substantive laws, but not the choice of law rules, of California.

  
 7. No Guarantee of Continued Service. OPTIONEE
ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING
SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE
PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

  
 By Optionee’s signature and the signature of the
Company’s representative below, Optionee and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Option Agreement. Optionee has reviewed the Plan and this Option Agreement in their
entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understands all provisions of the Plan and Option Agreement. Optionee hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Administrator upon any questions relating to the Plan and Option Agreement. Optionee further agrees to notify the Company upon any change in the residence address indicated above. 
  

			
	  

	 	  

	Wind River Systems, Inc.	 	Date
		
	  

	 	  

	[Name of Optionholder]	 	Date

  

 -3-Offer Letter

 Exhibit 10.01 
  
 May 6, 2005 
  
 Ms. Jo-Ann Mendles 
 3 Covenhaven Road 
 Lebanon, NJ 08833 
  
 Dear Jo-Ann: 
  
 It is a distinct pleasure to
offer you the position of Sr. Vice President, Marketing, Product Management & Business Development with Avici Systems Inc. In this capacity you will report to me. Your starting bi-weekly base salary will be $10,384.62, which annualized is
$270,000.12. In addition, you will be eligible to participate in Avici’s Executive Incentive Plan (EIP) at a target of 35% of your annual pay. 
  
 In this role, you will be considered an Executive Officer of the Company as that term is used in rules and regulations proscribed by the Securities and Exchange
Commission and you will be responsible for compliance with all SEC rules and regulations. At all times during the term of your employment, the Company shall maintain Director and Officer liability insurance in such amounts and under such terms as
approved by the Company’s Board of Directors. The Company also acknowledges that in your role as a senior vice president of marketing, you are deemed an officer of the Company and, accordingly, are entitled to indemnification for your actions
undertaken the scope of your employment with the Company in accordance with, and subject to, the Company’s Certificate of Incorporation. 
  
 You will also be granted an option to purchase 50,000 shares of Avici Common Stock with an exercise price per share equal to the fair market value of the Avici Common
stock on the date of grant. The stock will vest over four years at 25% per year. After your first anniversary, the remaining shares vest on a per month basis of 2.0833%. All stock grants are subject to the terms and conditions of the
Corporation’s Stock Incentive Plan and subject to approval by the Board of Directors. 
  
 In the event of a change of control of the Company, you will receive accelerated vesting of 50% of all remaining unvested options. Further, if due to a change of control, you are terminated without cause or have a
significant reduction in responsibility, position, or compensation, all remaining unvested options would become fully vested. 
  
 In the event of termination without cause, you will receive six months continuation of salary and benefits. In the event of a change of control that brings a reduction in
responsibility, position, or compensation, or you are terminated without cause, you will receive six months of continuation of salary and benefits. 
  
 The company will provide a travel allowance for your commuting costs between the New Jersey and Massachusetts area. 
  
 The Company strives to offer a competitive employee benefit program. Your participation in
this program will be subject to the standard eligibility requirements for all Avici employees. Avici’s benefits are described in the enclosed document titled “Avici’s 2005 Benefits Summary for Full-Time Employees”. Avici offers
two medical insurance plans to choose from, Blue Cross/Blue Shield of New England-HMO and Blue Cross/Blue Shield-PPO. Other benefits include Delta Dental plan with orthodontia coverage, a Fidelity 401(k) program, a pre-tax medical and dependent care
program, a vision plan, life insurance, supplemental life insurance, short and long-term disability benefits, an Employee Stock Purchase Plan, a legal assistance program, and other optional programs. Avici will also offer you 4 weeks vacation
(accrued bi-weekly up to 20days) and holidays (10 days plus 1 floater). Please note that Avici reserves the right to change, modify or discontinue any of its current benefits plans, providers and policies in the future. 

 Please plan on arriving promptly at 9:00 a.m. in building two on your first day of employment for Benefits Orientation
with a member of the Human Resources group. 
  
 In accordance with federal law,
you will be asked to provide documentation proving your eligibility to work in the United States. Please bring proper documentation on your first day of work. This can be a U.S. Passport or a driver’s license and
birth certificate/social security card. 
  
 Please confirm your acceptance
of this employment offer by signing one copy of this letter, which will indicate your acceptance of our offer as well as your anticipated start date and return it to me. If you wish to fax a copy to me, please send directly to my office at
978-964-2650. 
  
 Please understand that this offer does not constitute a contract
of employment for any particular period or a guarantee of continued employment. Our relationship is one of voluntary employment, “at will”. While we hope our relationship will be mutually beneficial, it should be recognized that you will
retain your right to terminate your employment at any time for any reason and that Avici will retain the same right. In accepting this offer, you represent that you have not relied upon any agreements or representations, written or oral, express or
implied, with respect to your employment that are not expressly set forth in this letter. 
  
 Employment with Avici is subject to your signing the Invention, Non-disclosure and Non-Compete Agreement. Note that this Agreement is enclosed for your review prior to accepting this offer. 
  
 This offer expires as of the close of business on Friday, May 13, 2005. This offer supercedes
all prior offers, both verbal and written. 
  
 Jo-Ann, we are very pleased by the
prospect of your joining the Avici team and we are sure that you will play an important role in the future success of the Company. 
  
 Sincerely, 
  
  
 William Leighton 
 President & CEO

 Avici Systems Inc. 
  
 I have carefully reviewed this offer of employment and agree that it sets forth the entire understanding between the Company and me. I also understand that my employment
at the Company is “at-will” which means that either the Company or I can terminate the employment relationship at any time. 
  

					
	Accepted by:	  	_________________________	  	Date: _______________
			
	Start Date:	  	____________________	  	 
		
	Enclosures:	  	 2005 Benefits Summary for Full-Time Employees

	 	  	 Invention, Non-disclosure and Non-Compete Agreement

	 	  	 I-9 Form

	 	  	 BC/BS HMO and PPO Plan Descriptions

	 	  	 Delta Dental Plan Description

	 	  	 2000 Stock Option and Incentive Plan

	 	  	 2000 ESPP Plan

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