Document:

Exhibit 10.39

	

Exhibit 10.39 

THE GYMBOREE
CORPORATION COMMON 
STOCK PURCHASE AGREEMENT

     This
Common Stock Purchase Agreement (this “Agreement”) is made and
entered into as of May __, 2000, by and between The Gymboree Corporation, a
Delaware corporation (the “Company”), and
_____________(“Investor”). 

     1. 
AGREEMENT TO PURCHASE AND SELL STOCK.  

	 	     (a) Authorization.
The Company’s Board of Directors will, prior to the Closing, authorize the issuance,
pursuant to the terms and conditions of this Agreement, of shares of Common Stock, in an
amount equal to the number of Purchased Shares (as defined in Section 1(b)). 

	 	     (b) Agreement
to Purchase and Sell Securities. The Company hereby agrees to issue to the Investor at
the Closing (as defined below), and the Investor hereby agrees to acquire from the
Company at the Closing, ___________ shares of Common Stock (collectively, the “Purchased
Shares”) at a purchase price of Two Dollars Ninety-Seven Cents ($2.97) per share
(the “Purchase Price”). 

	

     2.
CLOSING. The purchase and sale of the Purchased Shares shall take
place at the offices of Wilson Sonsini Goodrich & Rosati, Professional
Corporation, 650 Page Mill Road, Palo Alto, California, at 10:00 a.m.
California time, within three (3) business days after the conditions set forth
in Sections 5 and 6 have been satisfied, or at such other time and place as
the Company and the Investor mutually agree upon (which time and place are
referred to in this Agreement as the “Closing”). At the
Closing, the Company will deliver to each Investor the certificate representing
the Purchased Shares against delivery to the Company by the Investor of the
Purchase Price in cash paid by wire transfer of funds to the Company. Closing
documents may be delivered by facsimile with original signature pages sent by
overnight courier. The date of the Closing is referred to herein as the Closing
Date. 

     3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents and warrants
to the Investor that the statements in this Section 3 are true and correct, except as set
forth in the SEC Documents (as defined below):  

	 	     (a)
Organization Good Standing and Qualification. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware
and has all corporate power and authority required to (a) carry on its business as
presently conducted, and (b) enter into this Agreement and the other agreements,
instruments and documents contemplated hereby, and to consummate the transactions
contemplated hereby and thereby. The Company is qualified to do business and is in good
standing in each jurisdiction in which the failure to so qualify would have a Material
Adverse Effect. As used in this Agreement, “Material Adverse Effect” means a material
adverse effect on, or a material adverse change in, or a group of such effects on or
changes in, the business, operations, financial condition, results of operations, assets
or liabilities of the applicable party and its subsidiaries, taken as a whole.

	

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	 	     (b) 
Due Authorization. All corporate actions on the part of the Company necessary for the
authorization, execution, delivery of, and the performance of all obligations of the
Company under this Agreement and the authorization, issuance, reservation for issuance
and delivery of all of the Purchased Shares being sold under this Agreement, and this
Agreement constitutes, legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except (a) as may be limited by (i)
applicable bankruptcy, insolvency, reorganization or others laws of general application
relating to or affecting the enforcement of creditors’ rights generally and (ii) the
effect of rules of law governing the availability of equitable remedies and (b) as rights
to indemnity or contribution may be limited under federal or state securities laws or by
principles of public policy thereunder.

	 	     (c)
Valid Issuance of Stock.

	 	     (i) 
Valid Issuance. The shares of Common Stock to be issued pursuant to this Agreement, will
be, upon payment therefor by the Investor in accordance with this Agreement, duly
authorized, validly issued, fully paid and non-assessable. 

	 	     (ii) 
Compliance with Securities Laws. Assuming the correctness of the representations made by
the Investor in Section 4 hereof, the Purchased Shares will be issued to the
Investor in compliance with applicable exemptions from (i) the registration and
prospectus delivery requirements of the Securities Act of 1933, as amended (the “Securities
Act”) and (ii) the registration and qualification requirements of all
applicable securities laws of the states of the United States. 

	 	     (d) 
Compliance with Law and Charter Documents. The Company is not in violation or default of
any provisions of its Certificate of Incorporation or Bylaws, both as amended. The
Company has complied in all respects and is in compliance with all applicable statutes,
laws, rules, regulations and orders of the United States of America and all states
thereof, foreign countries and other governmental bodies and agencies having jurisdiction
over the Company’s business or properties, except for any instance of non-compliance that
has not had, and would not reasonably be expected to have, a Material Adverse Effect.

	 	     (e)
SEC Documents.

	 	     (1) 
Reports. The Company has furnished to the Investor prior to the date hereof copies of its
Annual Report on Form 10-K for the fiscal year ended January 29, 2000 (“Form 10-K
”), and all other registration statements, reports and proxy statements filed by the
Company with the Securities and Exchange Commission (“SEC”) on or after January
29, 2000 (the Form 10-K and such registration statements, reports and proxy statements
are collectively referred to herein as the “SEC Documents”). Each of the SEC
Documents, as of the respective date thereof (or if amended or superseded by a filing
prior to the Closing Date, then on the date of such filing), did not, and each of the
registration statements, reports and proxy statements filed by the Company with the SEC
after the date hereof and prior to the Closing will not, as of the date thereof (or if
amended or superseded by a filing after the date of this Agreement, then on the date of
such filing), contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. 

	

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	 	     (2) 
Financial Statements. The Company has provided the Investor with copies of its audited
financial statements (the “Audited Financial Statements”) for the fiscal year
ended January 29, 2000 (the “Balance Sheet Date”). Since the Balance Sheet
Date, the Company has duly filed with the SEC all registration statements, reports and
proxy statements required to be filed by it under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and the Securities Act. The audited financial
statements of the Company included in the SEC Documents filed prior to the date hereof
fairly present, in conformity with generally accepted accounting principles (“GAAP”)
applied on a consistent basis, the financial position of the Company as at the dates
thereof and the results of its operations and cash flows for the periods then ended. 

	 	     (f) 
Full Disclosure. The information contained in this Agreement and the SEC Documents with
respect to the business, operations, assets, results of operations and financial
condition of the Company, and the transactions contemplated by this Agreement, are true
and complete in all material respects and do not omit to state any material fact or facts
necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading.

	

     4. 
REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF THE INVESTOR. The Investor hereby
represents and warrants to the Company, and agrees that:  

	 	     (a) 
Authorization. The execution of this Agreement has been duly authorized by all necessary
legal action on the part of the Investor. This Agreement constitutes the Investor’s
legal, valid and binding obligations, enforceable in accordance with their terms, except
(a) as may be limited by (i) applicable bankruptcy, insolvency, reorganization or other
laws of general application relating to or affecting the enforcement of creditors’rights
generally and (ii) the effect of rules of law governing the availability of equitable
remedies and (b) as rights to indemnity or contribution may be limited under federal or
state securities laws or by principles of public policy thereunder. The Investor has full
corporate power and authority to enter into this Agreement.

	 	     (b) 
Purchase for Own Account. The Purchased Shares are being acquired for investment for the
Investor’s own account, not as a nominee or agent, and not with a view to the public
resale or distribution thereof within the meaning of the Securities Act, and the Investor
has no present intention of selling, granting any participation in, or otherwise
distributing the same. The Investor also represents that it has not been formed for the
specific purpose of acquiring the Purchased Shares.

	

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	 	     (c) 
Investment Experience. The Investor understands that the purchase of the Purchased Shares
involves substantial risk. The Investor has experience as an investor in securities of
companies and acknowledges that it is able to fend for itself, can bear the economic risk
of its investment in the Purchased Shares and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and risks of
this investment in the Purchased Shares and protecting its own interests in connection
with this investment.

	 	     (d) 
Accredited Investor Status. The Investor is an “accredited investor”within the
meaning of Regulation D promulgated under the Securities Act.

	 	     (e) 
Restricted Securities. The Investor understands that the Purchased Shares to be purchased
by the Investor hereunder are characterized as “restricted securities”under the
Securities Act, inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under the Securities Act and applicable regulations
thereunder such securities may be resold without registration under the Securities Act
only in certain limited circumstances. The Investor is familiar with Rule 144 of the SEC,
as presently in effect, and understands the resale limitations imposed thereby and by the
Securities Act and understands that, except as provided in the Investor Rights Agreement
(as defined in section 5(f) hereof), the Company is under no obligation to register any
of the securities sold hereunder.

	 	     (f) 
Legends. The Investor agree that the certificates for the Purchased Shares shall bear the
following legend:

	 	“The
securities represented by this certificate have not been registered under the Securities
Act of 1933 or with any state securities commission, and may not be transferred or
disposed of by the holder in the absence of a registration statement which is effective
under the Securities Act of 1933 and applicable state laws and rules, or, unless,
immediately prior to the time set for transfer, such transfer may be effected without
violation of the Securities Act of 1933 and other applicable state laws and rules.”

	

In addition, the Investor
agree that the Company may place stop transfer orders with its transfer agents
with respect to such certificates. The appropriate portion of the legend and the
stop transfer orders will be removed promptly upon delivery to the Company of
such satisfactory evidence as reasonably may be required by the Company that
such legend or stop orders are not required to ensure compliance with the
Securities Act. 

	 	     (g)
Finder’s Fee. Each Investor neither is nor will be obligated for any finder’s
or broker’s fee or commission in connection with this transaction.

	 	     (h)
Market Stand-Off. The Investor hereby agrees that from the date of the Closing to the
date that is six (6) months after the Closing, the Investor shall not, directly or
indirectly sell, offer to sell, contract to sell (including, without limitation, any
short sale), grant any option to purchase or otherwise transfer or dispose of any of the
Purchased Shares. In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the Purchased Shares of the Investor (and the
shares or securities of every other person subject to the foregoing restriction) until
the end of such period.

	

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     5. 
CONDITIONS TO THE INVESTOR’S OBLIGATIONS AT CLOSING. The obligations of the Investor
under Sections l and 2 of this Agreement are subject to the fulfillment or waiver, on or
before the Closing, of each of the following conditions: 

	 	     (a) 
Representations and Warranties True. Each of the representations and warranties of the
Company contained in Section 3 shall be true and correct in all material respects on and
as of the date of the Closing, except as set forth in the SEC Documents, with the same
effect as though such representations and warranties had been made as of the Closing.

	 	     (b) 
Performance. The Company shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be performed
or complied with by it on or before the Closing and shall have obtained all approvals,
consents and qualifications necessary to complete the purchase and sale described herein.

	 	     (c) 
Securities Exemptions. The offer and sale of the Purchased Shares to the Investor
pursuant to this Agreement shall be exempt from the registration requirements of the
Securities Act and the registration and/or qualification requirements of all applicable
state securities laws.

	 	     (d) 
Proceedings and Documents. All corporate and other proceedings in connection with the
transactions contemplated at the Closing and all documents incident thereto shall be
reasonably satisfactory in form and substance to the Investor, and the Investor shall
have received all such counterpart originals and certified or other copies of such
documents as it may reasonably request.

	 	     (e) 
Nasdaq Requirements. All requirements of the Nasdaq National Market in connection with
the transactions contemplated by this Agreement shall have been complied with by the
Company.

	 	     (f) 
Investor Rights Agreement. The Company will have executed and delivered the Investor
Rights Agreement substantially in the form attached to this Agreement as Exhibit A (the
“Investor Rights Agreement”).

	

     6. 
CONDITIONS TO THE COMPANY’S OBLIGATIONS AT CLOSING. The obligations of the Company
to the Investor under this Agreement are subject to the fulfillment or waiver, on or
before the Closing, of each of the following conditions:  

	 	     (a) 
Representations and Warranties True. The representations and warranties of the Investor
contained in Section 4 shall be true and correct in all material respects on and as of
the date hereof and on and as of the date of the Closing with the same effect as though
such representations and warranties had been made as of the Closing.

	

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	 	     (b) 
Performance. The Investor shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be performed
or complied with by it on or before the Closing and shall have obtained all approvals,
consents and qualifications necessary to complete the purchase and sale described herein.

	 	     (c) 
Securities Exemptions. The offer and sale of the Purchased Shares to the Investor
pursuant to this Agreement shall be exempt from the registration requirements of the
Securities Act and the registration and/or qualification requirements of all applicable
state securities laws.

	 	     (d) 
Payment of Purchase Price. The Investor shall have delivered to the Company the Purchase
Price as specified in Section 1(b).

	 	     (e) 
Proceedings and Documents. All corporate and other proceedings in connection with the
transactions contemplated at the Closing and all documents incident thereto will be
reasonably satisfactory in form and substance to the Company and to the Company’s
legal counsel, and the Company will have received all such counterpart originals and
certified or other copies of such documents as it may reasonably request.

	

     10.
MISCELLANEOUS.  

	 	     (a) 
Successors and Assigns. The terms and conditions of this Agreement will inure to the
benefit of and be binding upon the respective successors and permitted assigns of the
parties.

	 	     (b) 
Governing Law. This Agreement will be governed by and construed under the internal laws
of the State of California, without reference to principles of conflict of laws or choice
of laws.

	 	     (c) 
Counterparts. This Agreement may be executed in two or more counterparts, each of which
will be deemed an original, but all of which together will constitute one and the same
instrument.

	 	     (d) 
Headings. The headings and captions used in this Agreement are used for convenience only
and are not to be considered in construing or interpreting this Agreement. All references
in this Agreement to sections, paragraphs, exhibits and schedules will, unless otherwise
provided, refer to sections and paragraphs hereof and exhibits and schedules attached
hereto, all of which exhibits and schedules are incorporated herein by this reference.

	

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	 	     (e) 
Notices. Any notice required or permitted under this Agreement shall be given in writing,
shall be effective when received, and shall in any event be deemed received and
effectively given upon personal delivery to the party to be notified or three (3)
business days after deposit with the United States Post Office, by registered or
certified mail, postage prepaid, or one (1) business day after deposit with a nationally
recognized courier service such as Federal Express for next business day delivery under
circumstances in which such service guarantees next business day delivery, or one (1)
business day after facsimile with copy delivered by registered or certified mail, in any
case, postage prepaid and addressed to the party to be notified at the address indicated
for such party on the signature page hereof or at such other address as the Investor or
the Company may designate by giving at least ten (10) days advance written notice
pursuant to this Section 10(e).

	 	     (f) 
No Finder’s Fees. The Investor will indemnify and hold harmless the Company from any
liability for any commission or compensation in the nature of a finders’or broker’s
fee for which the Investor or any of its officers, partners, employees or consultants, or
representatives is responsible. The Company will indemnify and hold harmless the Investor
from any liability for any commission or compensation in the nature of a finder’s or
broker’s fee for which the Company or any of its officers, employees or consultants
or representatives is responsible.

	 	     (g) 
Amendments and Waivers. This Agreement may be amended and the observance of any term of
this Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the
Investor. Any amendment or waiver effected in accordance with this Section 10(g) will be
binding upon the Investor, the Company and their respective successors and assigns.

	 	     (h) 
Severability. If any provision of this Agreement is held to be unenforceable under
applicable law, such provision will be excluded from this Agreement and the balance of
the Agreement will be interpreted as if such provision were so excluded and will be
enforceable in accordance with its terms.

	 	     (i) 
Entire Agreement. This Agreement, together with the Investor Rights Agreement and all
exhibits and schedules hereto and thereto constitutes the entire agreement and
understanding of the parties with respect to the subject matter hereof and supersedes any
and all prior negotiations, correspondence, agreements, understandings, duties or
obligations between the parties with respect to the subject matter hereof.

	 	     (j) 
Further Assurances. From and after the date of this Agreement upon the request of the
Company or the Investor, the Company and the Investor will execute and deliver such
instruments, documents or other writings, and take such other actions, as may be
reasonably necessary or desirable to confirm and carry out and to effectuate fully the
intent and purposes of this Agreement.

	 	     (k) 
Meaning of Include and Including. Whenever in this Agreement the word “include” or
“including” is used, it shall be deemed to mean “include, without limitation” or
“including, without limitation,” as the case may be, and the language following
“include” or “including” shall not be deemed to set forth an exhaustive
list.

	

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	 	     (l) 
Fees, Costs and Expenses. All fees, costs and expenses (including attorneys’ fees and
expenses) incurred by either party hereto in connection with the preparation, negotiation
and execution of this Agreement and the Investor Rights Agreement and the consummation of
the transactions contemplated hereby and thereby (including the costs associated with any
filings with, or compliance with any of the requirements of, any governmental
authorities), shall be the sole and exclusive responsibility of such party.

	 	     (p)
Stock Splits, Dividends and other Similar Events. The provisions of this Agreement
(including the number of shares of Common Stock and other securities described herein)
shall be appropriately adjusted to reflect any stock split, stock dividend,
reorganization or other similar event that may occur with respect to the Company after
the date hereof.

	

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     IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
and year first above written. 

			THE GYMBOREE CORPORATION

By:  
       ——————————————

Name:      Lawrence H. Meyer 
Title:     Chief Financial Officer 

			 Address:  700 Airport Boulevard

                   Burlingame, California 94010
Telephone No.:  (650) 696-7500

Facsimile No.:   (650) 579-1733

			with copies to:

         Wilson Sonsini Goodrich & Rosati

         Attention:  Jeffrey D. Saper

         650 Page Mill Road

         Palo Alto, California  94304-1050

         Telephone No.: (650) 320-4626

         Facsimile No.:  (650) 493-6811

			INVESTOR

[NAME OF INVESTOR]

By:  
     ———————————————

Name
          ——————————————

Title
         —————————————— 

	

{Signature page to The
Gymboree Corporation Common Stock Purchase Agreement}Exhibit 10.40

	

Exhibit 10.40 

COMMON STOCK
PURCHASE WARRANT

THIS WARRANT AND THE
SHARES OF COMMON STOCK WHICH MAY BE PURCHASED PURSUANT TO THE EXERCISE OF THIS
WARRANT HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE
SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH SALE, OFFER, PLEDGE OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE SECURITIES LAWS UNLESS SOLD
PURSUANT TO RULE 144 OF THE ACT. 

Void after
May __, 2003

No. CS-__

The Gymboree
Corporation

WARRANT

THIS CERTIFIES THAT, in
consideration of the payment of $100.00 and for other good and valuable
consideration, __________________ (the “Holder”) is entitled to
subscribe for and purchase _____________ shares (as adjusted pursuant to
Section 3 hereof) of the fully paid and nonassessable Common Stock, par
value $0.001 per share (the “Shares”), of The Gymboree
Corporation, a Delaware corporation (the “Company”) at the
price of $2.97 per share (the “Exercise Price”) (as adjusted
pursuant to Section 3 hereof), subject to the provisions and upon the terms
and conditions hereinafter set forth. 

Method of
Exercise; Payment.

Cash Exercise.
Subject to Section 11 hereof, the purchase rights represented by this Warrant
may be exercised by the Holder after the date that is six (6) months after the
date hereof, in whole or in part, by the surrender of this Warrant (with the
notice of exercise form attached hereto as Exhibit A duly executed) at
the principal office of the Company, and by the payment to the Company, by
certified, cashier’s or other check acceptable to the Company, of an amount
equal to the aggregate Exercise Price of the shares being purchased. 

Net Exercise. In
lieu of exercising this Warrant in a cash exercise, after the date that is six
(6) months after the date hereof, the Holder may elect to exercise this Warrant
in whole or in part, on a “net exercise” basis, and upon such net
exercise shall be entitled to receive shares equal to the value of the portion
of this Warrant canceled upon such net exercise. Such net exercise shall be
effected by surrender of this Warrant at the principal office of the Company
together with notice of election to exercise by means of a net issuance
exercise, in which event the Company shall issue to the Holder a number of
shares of the Common Stock of the Company computed using the following formula: 

	 	X
= Y (A-B)
—————
A

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

	 	     Y   
=    the number of shares of Common Stock purchasable under this

	 	Warrant
to be canceled upon such net exercise. 

	 	     A   =
   the Fair Market Value of one share of Common Stock on the date of
exercise. 

	

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	 	B
   =   the Exercise Price (as adjusted to the date of such
calculation). For purposes of this Warrant, the Fair Market Value of the Common Stock
shall mean the closing sale price of the Common Stock on the principal market on which
the Common Stock is then traded on the date of exercise. 

	

Stock
Certificates. In the event of any exercise of the rights represented by this
Warrant, certificates representing the shares of Common Stock so purchased shall
be delivered to the Holder within a reasonable time and, unless this Warrant has
been fully exercised or has expired, a new Warrant representing the shares with
respect to which this Warrant shall not have been exercised shall also be issued
to the Holder within such time. 

Stock Fully Paid;
Reservation of Shares. All of the Shares issuable upon the exercise of the
rights represented by this Warrant will, upon issuance and receipt of the
Exercise Price therefor, be fully paid and nonassessable, and free from all
taxes, liens and charges with respect to the issue thereof. During the period
within which the rights represented by this Warrant may be exercised, the
Company shall at all times have authorized and reserved for issuance sufficient
shares of its Common Stock to provide for the exercise of the rights represented
by this Warrant. 

Adjustment of
Exercise Price and Number of Shares. Subject to the provisions of
Section 11 hereof, the number and kind of securities purchasable upon the
exercise of this Warrant and the Exercise Price therefor shall be subject to
adjustment from time to time upon the occurrence of certain events, as follows: 

Reclassification or
Consolidation. In case of any reclassification or change of the Common Stock
(other than a change in par value, or as a result of a subdivision or
combination), or in case of any consolidation or merger of the Company with or
into another corporation (other than a merger with another corporation subject
to Section 11 below or in which the Company is a continuing corporation and
which does not result in any reclassification or change of outstanding
securities issuable upon exercise of this Warrant), the Company, or such
successor or purchasing corporation as the case may be, shall execute a new
Warrant, providing that the holder of this Warrant shall have the right to
exercise such new Warrant, and procure upon such exercise and payment of the
same aggregate Exercise Price, in lieu of the shares of Common Stock theretofore
issuable upon exercise of this Warrant, the kind and amount of shares of stock,
other securities, money and property receivable upon such reclassification,
change, consolidation or merger by a holder of an equivalent number of shares of
Common Stock. Such new Warrant shall provide for adjustments which shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
Section 3. The provisions of this subsection (a), subject to
Section 11 hereof, shall similarly apply to successive reclassifications,
changes, consolidations and mergers. 

3 

	

Stock Splits,
Dividends and Combinations. In the event that the Company shall at any time
subdivide the outstanding shares of Common Stock, or shall issue a stock
dividend on its outstanding shares of Common Stock, the number of Shares
issuable upon exercise of this Warrant immediately prior to such subdivision or
to the issuance of such stock dividend shall be proportionately increased, and
the Exercise Price shall be proportionately decreased, and in the event that the
Company shall at any time combine the outstanding shares of Common Stock, the
number of Shares issuable upon exercise of this Warrant immediately prior to
such combination shall be proportionately decreased, and the Exercise Price
shall be proportionately increased, effective at the close of business on the
date of such subdivision, stock dividend or combination, as the case may be. 

Notice of
Adjustments. Whenever the number of Shares purchasable hereunder or the
Exercise Price thereof shall be adjusted pursuant to Section 3 hereof, the
Company shall provide notice by first class mail to the holder of this Warrant
setting forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment, the method by which such adjustment was calculated,
and the number of Shares which may be purchased and the Exercise Price therefor
after giving effect to such adjustment. 

Fractional
Shares. No fractional shares of Common Stock will be issued in connection
with any exercise hereunder. In lieu of such fractional shares the Company shall
make a cash payment therefor based upon the Exercise Price then in effect. 

Representations of
the Company. The Company represents that all corporate actions on the part
of the Company, its officers, directors and shareholders necessary for the sale
and issuance of the Shares pursuant hereto and the performance of the
Company’s obligations hereunder were taken prior to and are effective as of
the effective date of this Warrant. 

Representations and
Warranties by the Holder. The Holder represents and warrants to the Company
as follows: 

This Warrant and the
Shares issuable upon exercise thereof are being acquired for its own account,
for investment and not with a view to, or for resale in connection with, any
distribution or public offering thereof within the meaning of the Securities Act
of 1933, as amended (the “Act”). Upon exercise of this Warrant,
the Holder shall, if so requested by the Company, confirm in writing, in a form
satisfactory to the Company, that the securities issuable upon exercise of this
Warrant are being acquired for investment and not with a view toward
distribution or resale. 

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The Holder understands
that the Warrant and the Shares have not been registered under the Act by reason
of their issuance in a transaction exempt from the registration and prospectus
delivery requirements of the Act pursuant to Section 4(2) thereof, and that
they must be held by the Holder indefinitely, and that the Holder must therefore
bear the economic risk of such investment indefinitely, unless a subsequent
disposition thereof is registered under the Act or is exempted from such
registration. The Holder further understands that the Warrant and the Shares
have not been qualified under the California Securities Law of 1968 (the
“California Law”) by reason of their issuance in a transaction
exempt from the qualification requirements of the California Law pursuant to
Section 25102(f) thereof, which exemption depends upon, among other things,
the bona fide nature of the Holder’s investment intent expressed above. 

The Holder has such
knowledge and experience in financial and business matters that it is capable of
evaluating the merits and risks of the purchase of this Warrant and the Shares
purchasable pursuant to the terms of this Warrant and of protecting its
interests in connection therewith. 

The Holder is able to
bear the economic risk of the purchase of the Shares pursuant to the terms of
this Warrant. 

Restrictive
Legend.

The Shares issuable upon exercise of
this Warrant (unless registered under the Act) shall be stamped or imprinted with a
legend in substantially the following form:  

THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE SALE OR DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY
ACCEPTABLE TO IT STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND
PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT. COPIES OF THE AGREEMENT COVERING THE
PURCHASE OF THESE SHARES AND RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY
WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE
CORPORATION AT THE PRINCIPAL EXECUTIVE OFFICES OF THE CORPORATION.  

5 

	

Restrictions
Upon Transfer and Removal of Legend.

The Company need not
register a transfer of Shares bearing the restrictive legend set forth in
Section 8 hereof, unless the conditions specified in such legend are
satisfied. The Company may also instruct its transfer agent not to register the
transfer of the Shares, unless one of the conditions specified in the legend
referred to in Section 8 hereof is satisfied. 

Notwithstanding the
provisions of paragraph (a) above, no opinion of counsel or
“no-action” letter shall be necessary for a transfer without
consideration by any holder (i) to an affiliate of the holder, (ii) if
such holder is a partnership, to a partner or retired partner of such
partnership who retires after the date hereof or to the estate of any such
partner or retired partner, (iii) if such holder is a corporation, to a
shareholder of such corporation, or to any other corporation under common
control, direct or indirect, with such holder, or (iv) by gift, will or
intestate succession of any individual holder to his spouse or siblings, or to
the lineal descendants or ancestors of such holder or his spouse, if the
transferee agrees in writing to be subject to the terms hereof to the same
extent as if such transferee were the original holder hereunder. 

Rights of
Shareholders. No holder of this Warrant shall be entitled, as a Warrant
holder, to vote or receive dividends or be deemed the holder of Common Stock or
any other securities of the Company which may at any time be issuable on the
exercise hereof for any purpose, nor shall anything contained herein be
construed to confer upon the holder of this Warrant, as such, any of the rights
of a shareholder of the Company or any right to vote for the election of
directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par
value, consolidation, merger, conveyance, or otherwise) or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise until the
Warrant shall have been exercised and the Shares purchasable upon the exercise
hereof shall have become deliverable, as provided herein. 

Expiration of Warrant. This Warrant
shall expire and shall no longer be exercisable upon the earliest to occur of:  

5:00 p.m.,
California local time, on May __, 2003;

6 

	

The closing of the
merger or consolidation of the Company pursuant to which the Company’s
shareholders immediately prior to the transaction own less than fifty percent
(50%) of the surviving entity, provided that the Holder is notified at least 7
days or as soon as practicable before the scheduled closing; or 

The closing of the sale
of all or substantially all of the assets of the Company, provided that the
Holder is notified at least 7 days or as soon as practicable before the
scheduled closing. 

Notices, Etc. All
notices and other communications from the Company to the Holder shall be mailed
by first class registered or certified mail, postage prepaid, at such address as
may have been furnished to the Company in writing by the Holder. 

Governing Law,
Headings. This Warrant is being delivered in the State of California and
shall be construed and enforced in accordance with and governed by the laws of
such State. The headings in this Warrant are for purposes of reference only, and
shall not limit or otherwise affect any of the terms hereof. 

Issued this ____ day of
May, 2000. 

			THE GYMBOREE CORPORATION

By:    
     ——————————————

Print Name:  Lawrence H. Meyer  
Title:  Chief Financial Officer 

	

7

	

EXHIBIT A
 NOTICE OF
EXERCISE 

TO:    THE GYMBOREE CORPORATION
           700
Airport Boulevard 
           Suite 200 
           Burlingame, CA 94010

           Attention: Chief Financial Officer 

1.  The undersigned hereby
elects to purchase __________ shares of Common Stock of The Gymboree Corporation pursuant
to the terms of the attached Warrant.  

2. Method of Exercise (Please
initial the applicable blank):  

	___ 		The
undersigned elects to exercise the attached Warrant by means of a cash payment, and
tenders herewith payment in full for the purchase price of the shares being purchased,
together with all applicable transfer taxes, if any.  

	___ 		The
undersigned elects to exercise the attached Warrant by means of the net exercise
provisions of Section 1(b) of the Warrant. 3. Please issue a certificate or certificates
representing said shares of Common Stock in the name of the undersigned or in such other
name as is specified below:  

	

Name: 
        ————————————

Address:
        ————————————

4.  The undersigned hereby
represents and warrants that the aforesaid shares of Common Stock are being
acquired for the account of the undersigned for investment and not with a view
to, or for resale, in connection with the distribution thereof, and that the
undersigned has no present intention of distributing or reselling such shares
and all representations and warranties of the undersigned set forth in
Section 7 of the attached Warrant are true and correct as of the date
hereof. In support thereof, the undersigned agrees to execute an Investment
Representation Statement in a form substantially similar to the form attached to
the Warrant as Exhibit B. 

		
	Date:___________	 	Signature:_______________________________	 
	 	 	Title:___________________________________	 

	

8 

	

EXHIBIT B
INVESTMENT
REPRESENTATION STATEMENT 

PURCHASER:_________________________

SELLER: THE GYMBOREE CORPORATION 
COMPANY: THE GYMBOREE CORPORATION 
SECURITY: COMMON STOCK
ISSUED UPON EXERCISE OF THE WARRANT 
ISSUED ON MAY __, 2000 
AMOUNT: __________ SHARES
DATE: MAY ___, 2000 

In connection with the
purchase of the above-listed Securities, I, the Purchaser, represent to the
Seller and to the Company the following: 

I am aware of the
Company’s business affairs and financial condition, and have acquired
sufficient information about the Company to reach an informed and knowledgeable
decision to acquire the Securities. I am purchasing these Securities for my own
account for investment purposes only and not with a view to, or for the resale
in connection with, any “distribution” thereof for purposes of the
Securities Act of 1933, as amended (the “Securities Act”). 

I understand that the
Securities have not been registered under the Securities Act in reliance upon a
specific exemption therefrom, which exemption depends upon, among other things,
the bona fide nature of my investment intent as expressed herein. In this
connection, I understand that, in the view of the Securities and Exchange
Commission (the “SEC”), the statutory basis for such exemption may be
unavailable if my representation was predicated solely upon a present intention
to hold these Securities for the minimum capital gains period specified under
tax statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future. 

I further understand
that the Securities must be held indefinitely unless subsequently registered
under the Securities Act or unless an exemption from registration is otherwise
available. Moreover, I understand that the Company is under no obligation to
register the Securities. In addition, I understand that the certificate
evidencing the Securities will be imprinted with a legend which prohibits the
transfer of the Securities unless they are registered or such registration is
not required in the opinion of counsel for the Company. 

     (d) I
am familiar with the provisions of Rule 144, promulgated under the Securities Act, which,
in substance, permits limited public resale of “restricted securities” acquired,
directly or indirectly, from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions. 

The Securities may be resold in
certain limited circumstances subject to the provisions of Rule 144, which requires among
other things: (1) the availability of certain public information about the Company, (2)
the resale occurring not less than one year after the party has purchased, and made full
payment for, within the meaning of Rule 144, the securities to be sold; and, in the case
of an affiliate, or of a non-affiliate who has held the securities less than two years,
(3) the sale being made through a broker in an unsolicited “broker’s transaction” or
in transactions directly with a market maker (as said term is defined under the
Securities Exchange Act of 1934) and the amount of securities being sold during any three
month period not exceeding the specified limitations stated therein, if applicable. 

     (e) I
agree not to sell, make short sale of, loan, grant any options for the purchase of, or
otherwise dispose of any shares of Common Stock of the Company held by me for one hundred
eighty (180) days from the date of the issuance of the warrant. 

     (f) I
further understand that in the event all of the applicable requirements of Rule 144 are
not satisfied, registration under the Securities Act, compliance with Regulation A, or
some other registration exemption will be required; and that, notwithstanding the fact
that Rule 144 are not exclusive, the Staff of the SEC has expressed its opinion that
persons proposing to sell private placement securities other than in a registered
offering and otherwise than pursuant to Rule 144 will have a substantial burden of proof
in establishing that an exemption from registration is available for such offers or
sales, and that such persons and their respective brokers who participate in such
transactions do so at their own risk. 

By: 
        ———————————— 
Title:
        
————————————
Date: 
         ————————————  

9

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