Document:

exhibit_10-2.htm

     

    
       

                                                                                                                     EXHIBIT
        10.2

        CONSULTING
          AGREEMENT

        

         

        THIS
          CONSULTING AGREEMENT (this “Agreement”) is entered as of April 28, 2008
          by and between uParts.com, Inc. and Alexander Adegan (each a
“Consultant” and together the “Consultants”) and U.S. Auto
          Parts Network, Inc. (the “Company”).

         

        RECITALS

         

        The
          Company desires to engage Consultants, as independent contractors, to perform
          the services described in this Agreement and Consultants desire to perform
          such
          services for the Company and its customers and/or clients, in accordance
          with
          the terms and conditions set forth in this Agreement.  This Agreement
          is not an employment agreement, nor does there exist any intent between
          the
          Consultant and Company to create an employment relationship between the
          Company
          and Consultant’s employees.

         

        AGREEMENT

         

        NOW,
          THEREFORE, in consideration of the mutual covenants and agreements contained
          in
          this Agreement, the parties agree as follows:

         

        1.  Consulting
          Services.  Consultants agree to provide  technology development
          services and such other services as may be agreed to by the parties hereto
          (collectively, the “Consulting Services”).  Consultants will
          be available on a weekly basis for up to 10 hours per
          week.  Consultants shall utilize the highest professional standards of
          practice in performing services for the Company.  The Company shall
          not dictate the work hours of Consultants and, except as otherwise specified
          herein, shall not have the right to control the manner, means or method
          by which
          Consultants perform the Consulting Services.  Rather, the Company
          shall be entitled only to direct Consultants with respect to the results
          to be
          derived by the Consultants and the due dates for such results to be delivered
          to
          the Company.  Consultants agree that Mr. Adegan shall be designated to
          personally provide or oversee the services to be provided by the Consultants
          under this Agreement.

         

        2.  Term.  This
          Agreement shall terminate on February 28, 2010, unless earlier terminated
          by the
          Company for Cause.  “Cause” shall mean (i) the commission of
          any act of fraud, embezzlement or dishonesty by one or both Consultants,
          (ii)
          the breach by one or both Consultants of any obligation under this Agreement,
          including obligations relating to the Confidential Information (as defined
          below), or (iii) any other misconduct by one or both Consultants adversely
          affecting the business or affairs of the Company (or any affiliate) in
          any
          manner.  Consultants’ obligations described in Sections 4 through 8
          shall survive termination of this Agreement. In the event the applicable
          circumstance set forth in subparagraphs (ii) or (iii) above is capable
          of cure
          by the Consultants, then the Company shall not terminate this Agreement
“with
          cause” without having first given the Consultants written notice of the
          circumstance, such notice stating details thereof and the Company’s allegation
          of the Consultants breach with respect thereto and affording Consultants
          ten
          (10) business days after the Consultants receipt of such notice to cure
          such
          circumstance, breach or default.

         

        3.  Fees
          and
          Expenses.

         

        (a)  The
          Company shall pay uParts.com, Inc. (or Mr. Adegan, if so designated by
          Mr.
          Adegan or uParts.com, Inc. by written notice to the Company) three initial
          monthly fees of $45,000 on May 28, 2008, June 28, 2008 and July 28, 2008,
          followed by equal monthly fees of $6,397 for 19 months starting on August
          28,
          2008 and ending on February 28, 2010.

         

        (b)  Subject
          to approval of the Company’s board of directors or its Compensation Committee,
          the Company shall grant to Mr. Adegan an option to purchase up to 120,000
          shares
          of the Company’s common stock under the Company’s 2007 Omnibus Incentive Plan
          (the “2007 Plan”), which option shall be immediately exercisable but
          shall vest in equal monthly installments over the next twenty-two (22)
          months.
          The exercise price of the Consultant’s options will be set at the closing price
          of the Company’s common stock on NASDAQ on April 28, 2008. The vesting of such
          options shall accelerate in full upon a Change in Control of the Company,
          as
          such term is defined in the 2007 Plan.

         

        (c)  The
          Company shall pay or reimburse reasonable costs and expenses specifically
          incurred by Consultants in providing the Consulting Services in accordance
          with
          the Company’s expense reimbursement guidelines.  Any single expense
          which will exceed $250.00 must be approved in advance by the Company’s Chief
          Executive Officer, President or Chief Financial Officer, or the Company
          may
          elect at its sole discretion not to reimburse Consultants for that
          expense.  The Company owns all property and equipment for which
          Consultants are reimbursed.  The Company retains the right to
          determine the reasonableness of any submitted expense and to deny unreasonable
          expenses in its sole discretion.  The Company will not reimburse
          Consultants for basic office expenses including, but not limited to, a
          laptop
          computer, meals, office space, equipment, telephone, postage, copying,
          stationery and business cards.  Consultants agree to submit all bills
          for Consulting Services monthly and all requests to reimburse expenses
          within
          thirty (30) days of incurring the expense.

         

        4.  Confidential
          Information.

         

        (a)  Each
          Consultant acknowledges that Consultant may acquire information and materials
          about the Company, including but not limited to information about the Company’s
          operations, services, computer programs, algorithms, application programming
          interfaces, technology, ideas, know-how, processes, formulas, compositions,
          data, techniques, improvements, inventions (whether patentable or not),
          works of
          authorship, business and product development plans, customers, customer
          information, and other information concerning the Company’s actual or
          anticipated business, or which is received in confidence by the Company
          or for
          the Company from any other person or entity, and that all such information
          and
          materials are and shall be the trade secret and confidential and proprietary
          information of the Company (hereinafter referred to as “Confidential
          Information”).  At all times, both during the term of this
          Agreement and after its termination, each Consultant, including all employees
          of
          such Consultant assigned to work on projects for the Company, will keep
          in
          confidence and trust and will not use any Confidential Information without
          the
          prior written consent of an officer of the Company except as may be necessary
          and appropriate in the ordinary course of performing the Consulting Services
          under this Agreement. Each Consultant acknowledges that any disclosure
          or
          unauthorized use of Confidential Information will constitute a material
          breach
          of this Agreement. Each Consultant hereby acknowledges and agrees that
          all such
          Confidential Information shall be the sole and exclusive property of the
          Company.  Confidential Information does not include information
          that:  (i) is now, or hereafter becomes, through no act or failure to
          act on the part of one or both Consultants, generally known or available
          to the
          public; (ii) was known by the Consultants without restriction as to use
          or
          disclosure before receiving such information from the Company; or (iii)
          is
          hereafter rightfully furnished to Consultant on a non-confidential basis by
          a third party.

         

        (b)  Mr.
          Adegan acknowledges and agrees that the obligations under his Confidential
          Information and Invention Assignment Agreement with the Company dated May
          22,
          2006 (the “Prior Confidentiality Agreement”) which are effective as of
          the date of this Agreement shall remain in full force and effect in accordance
          with its terms and shall not be deemed to be modified by this
          Agreement.

         

        5.  Consultants’
          Employees.  Each Consultant agrees that every employee of Consultant
          who works on projects for the Company or who has access to the Company’s
          proprietary information, will execute the Company’s standard proprietary
          information and inventions agreement, or a substantially similar document,
          before having access to any of the Confidential Information.

         

        6.  Company
          Materials.  Each Consultant agrees as follows:

         

        (a)  All
          Company Materials (as defined below) shall be the sole and exclusive property
          of
          the Company.  Neither Consultant nor any of Consultant’s employees
          will remove any Company Materials from the business premises of the Company
          or
          deliver any Company Materials to any person or entity outside the Company,
          except as required in connection with performance of the Consulting Services
          under this Agreement.  Neither Consultant nor any of Consultant’s
          employees will copy or download to any computer or other equipment owned
          by
          Consultant any Confidential Information unless prior written consent to
          such
          copying or downloading is obtained from the Company.  Should the
          Company authorize downloading or copying of Confidential Information to
          Consultant’s computer systems or other equipment, such Consultant agrees and
          warrants that such information will be kept in a separate file(s), segregated
          from all other information belonging to Consultant or any other
          entity.  For purposes of this Agreement, “Company Materials”
are documents or other media or tangible items that contain or
          embody
          Confidential Information or any other information concerning the business,
          operations or plans of the Company, whether such documents have been prepared
          by
          Consultant or by others. “Company Materials” include, but are not limited to,
          software, code, drawings, photographs, charts, graphs, notebooks, customer
          lists, computer media or printouts, sound recordings and other printed,
          typewritten or handwritten documents, as well as samples, prototypes, models,
          products and the like.  For the purposes of this Agreement,
“Results” means any and all deliverables or results of the Consulting
          Services including, without limitation, all Assigned Invention
          Ideas.

         

        (b)  Upon
          termination of this Agreement, Consultant will immediately erase all files
          containing Company information in their entirety.  Consultant further
          agrees that, immediately upon the Company’s request and in any event upon
          completion of the Consulting Services, Consultant shall deliver to the
          Company
          all Company Materials, any document or media that contains Results, apparatus,
          equipment and other physical property or any reproduction of such property,
          excepting only Consultant’s copy of this Agreement.  In addition,
          Consultant will remove from any equipment that belongs to Consultant, including
          any computer or hard drive that belongs to Consultant, all Confidential
          Information and will allow the Company to inspect all computers and hard
          drives
          used by Consultant to insure that all material has been removed.

         

        7.  Inventions.  Each
          Consultant further agrees as follows:

         

        (a)  Consultant
          agrees to assign, and does hereby assign, to the Company without further
          consideration all right, title, and interest that Consultant may acquire
          (throughout the United States and in all foreign countries), free and clear
          of
          all liens and encumbrances, in and to each Assigned Invention Idea (as
          defined
          below), which was developed by Consultant specifically for the Company
          pursuant
          to this Agreement (such specific development to be evidenced by a writing
          describing the Company’s development request and Consultant’s acceptance of such
          request in writing, which may consist of electronic mail).  All such
“Assigned Invention Ideas” shall be the sole property of the
          Company, whether or not patentable.  Without limiting the foregoing,
          Consultant agrees that any such original works of authorship shall be deemed
          to
          be “works made for hire” and that the Company shall be deemed the author of them
          under the U.S. Copyright Act (Title 17 of the U.S. code), provided that
          in the
          event and to the extent such works are determined not to constitute “works made
          for hire” as a matter of law, Consultant irrevocably assigns and transfers to
          the Company all right, title and interest in such works, including but
          not
          limited to copyrights.  The term “Assigned Invention
          Ideas” means any and all ideas, processes, trademarks, service marks,
          inventions, technology, computer programs, original works of authorship,
          designs, formulas, discoveries, patents, copyrights, and all improvements,
          rights, and claims related to the foregoing that are conceived, developed,
          or
          reduced to practice or authored by Consultant or Consultant’s agents, employees,
          or independent contractors, either solely or jointly with others, resulting
          from
          the work performed by Consultant under this Agreement or from the use of
          proprietary information, materials or facilities of the Company during
          the
          period in which Consultant is retained by the Company or its successor
          in
          business, under this Agreement or any previous agreements or any extensions
          or
          renewals thereof. The Company acknowledges that Consultant previously disclosed
          prior inventions to the company which Consultant claimed was created by
          Consultant prior to the term of such Agreement and before the period of
          employment of consultant as an employee of the Company prior hereto (“Prior
          Invention”).  In this regard, the Company agrees that the Prior
          Invention, as well as any updates thereto, are not property of the Company
          and
          shall remain the sole and exclusive property of their owners.

         

        (b)  In
          the
          event any Assigned Invention Idea shall be determined by the Company to
          be
          patentable or otherwise registerable, Consultant will assist the Company
          (at its
          expense) in obtaining letters patent or other applicable registrations,
          and
          Consultant will execute all documents and do all other things (including
          testifying at the Company’s expense) necessary or proper to obtain letters
          patent or other applicable registrations and to vest the Company with full
          title
          to them.  Consultant’s obligation to assist the Company in obtaining
          and enforcing patents, registrations or other rights for such inventions,
          shall
          continue beyond the termination of the consulting and/or contracting
          arrangement, but the Company shall compensate Consultant at a reasonable
          rate
          after such termination for the time actually spent by Consultant at the
          Company’s request for such assistance.  Should the Company be unable
          to secure Consultant’s signature on any document necessary to apply for,
          prosecute, obtain, or enforce any patent, copyright, or other right or
          protection relating to any Assigned Invention Idea,  Consultant hereby
          irrevocably designates and appoints the Company and each of its duly authorized
          officers and agents as Consultant’s agent and attorney-in-fact, to act on
          Consultant’s behalf, to execute and file any such document, and to do all other
          lawfully permitted acts to further the prosecution, issuance, and enforcement
          of
          patents, copyrights, or other rights of protections with the same force
          and
          effects as if executed and delivered by Consultant.

         

        (c)  Consultant
          agrees to maintain adequate and current written records on the development
          of
          all Assigned Invention Ideas and to disclose promptly to the Company
          all Assigned Invention Ideas and relevant records, which records will
          remain the sole property of the Company.

         

        8.  Noncompetition. Mr.
          Adegan agrees that, during the term of this Agreement, he shall not engage
          in
          any commercial activities or endeavors that are in direct competition with
          the
          Company. However, this section excludes the business of sourcing parts
          for
          repair facilities, mechanics, service-centers, collision-repair-centers
          utilizing Consultants’ previously developed technologies and all of their
          derivitives and enhancements.

         

        9.  Nonsolicitation.  Each
          Consultant agrees that during the term of this Agreement (and in any event
          through the one year anniversary of the termination date of this Agreement),
          such Consultant will not (a) directly or indirectly solicit, induce, encourage
          or attempt to solicit or induce any Company employee to discontinue his
          or her
          employment with the Company; (b) usurp any opportunity of the Company that
          such
          Consultant becomes aware of during the term of this Agreement or which
          is made
          available to the Consultant on the basis of Consultant’s relationship with the
          Company; or (c) directly or indirectly interfere with, solicit, induce
          or
          attempt to influence any person or business that is an account, customer
          or
          client of the Company for the purpose or with the result of adversely impacting
          the Company’s relationship with the account, customer or client.

         

        10.  Independent
          Contractor.  Each Consultant agrees, acknowledges and understands
          that:

         

        (a)  Consultant
          shall act in the capacity of an independent contractor with respect to
          the
          Company.  Consultant shall not have any authority to enter into
          contracts or binding commitments in the name or on behalf of the
          Company.  Consultant will not use the Company’s logo or marks without
          prior written approval, and then such use shall be only for the benefit
          of the
          Company and at the direction of the Company.  Consultant shall not be,
          nor represent itself as being, an agent of the Company, and shall not be,
          nor
          represent itself as being, authorized to bind the Company.

         

        (b)  Consultant
          and its employees shall not be employees of the Company and shall not
          participate in any employee benefit plans or group insurance plans or programs
          (including, but not limited to salary, bonus or incentive plans, or plans
          pertaining to retirement, deferred savings, disability, medical or dental)
          regardless of whether Consultant or any of Consultant’s employees are classified
          as an employee for any other purpose or is otherwise eligible to participate
          pursuant to the terms of such plans.  The exclusion of Consultant and
          his employees, if any, from benefit programs maintained by the Company
          is a
          material component of the terms of compensation negotiated by the parties,
          and
          is not premised on Consultant’s status as a non-employee with respect to the
          Company.  Except for the stock option to be provided pursuant to
          Section 3(b) or any other stock-based award specifically granted by the
          Company’s board of directors or its Compensation Committee, to the extent that
          Consultant may become eligible for any benefit programs maintained by the
          Company (regardless of timing or reason for eligibility), Consultant hereby
          waives his right to participate in the programs and will indemnify and
          hold the
          Company harmless from any claim by Consultant or any of Consultant’s employees
          against the Company for benefits pursuant to any of the Company’s employee
          benefit plans.

         

        (c)  Consultant
          understands and agrees that consistent with his independent contractor
          status,
          neither he nor his employees, if any, will apply for any government-sponsored
          benefits intended only for employees of the Company, including, but not
          limited
          to, unemployment benefits and all such benefits will be provided solely
          by or
          through Consultant. Consultant is solely responsible for all taxes,
          withholdings, and other similar statutory obligations, including, but not
          limited to, Workers’ Compensation, Unemployment or State Disability Insurance
          for Consultant and/or his employees; and Consultant agrees to defend, indemnify
          and hold Company harmless from any and all claims made by any entity on
          account
          of an alleged failure by Consultant to satisfy any such tax or withholding
          obligations.

         

        11.  Consultant’s
          Representations.  Each Consultant agrees, represents and warrants
          that:

         

        (a)  Consultant’s
          performance of the Consulting Services or of any term of this Agreement
          will not
          breach any agreement or understanding that Consultant has with any other
          person
          or entity and that there is no other contract or duty now in existence
          inconsistent with the terms of this Agreement;

         

        (b)  During
          the term of this Agreement, Consultant shall not be bound by any agreement,
          nor
          assume any obligation, which would in any way be inconsistent with the
          Consulting Services to be performed by Consultant under this
          Agreement;

         

        (c)  In
          performing the Consulting Services, Consultant will not use any confidential
          or
          proprietary information of any other person or entity or infringe the
          intellectual property rights (including, without limitation, patent, copyright,
          trademark or trade secret rights) of any other person or entity nor will
          Consultant disclose to the Company, or bring onto the Company’s premises, or
          induce the Company to use any confidential information of any person or
          entity
          other than the Company or Consultant;

         

        (d)  During
          the term of this Agreement, Consultant will not disclose to the Company,
          or use,
          or induce the Company to use, any proprietary information or trade secrets
          of
          others.  Consultant represents and warrants that Consultant has
          returned all property and confidential information belonging to all prior
          entities for whom Consultant has provided services, including, without
          limitation, all files, records, documents, laboratory notebooks, drawings,
          prototypes, plans, specifications, computer disks, sources codes, manuals,
          books, forms, receipts, notes, reports, memoranda, studies, data, calculations,
          recordings, catalogues, compilations of information, correspondence, and
          all
          copies, abstracts, and summaries of the foregoing, instruments, tools,
          and
          equipment, and all other physical items related to the business of the
          prior
          entities.  Consultant further represents and warrants that
          Consultant’s performance of the terms of this Agreement will not breach any
          agreement to keep in confidence proprietary information acquired by Consultant
          in confidence or in trust prior to or concurrent with this Agreement with
          the
          Company.  Consultant has not entered into, and agrees not to enter
          into, any oral or written agreement in conflict with this one;

         

        (e)  Consultant
          will abide by all applicable laws and the Company’s safety rules in the course
          of performing the Consulting Services; and

         

        (f)  Consultant
          will not use or retain any other individual(s) or employee(s) in performing
          services for the Company except in compliance with all of the following
          conditions:

         

        (i)  All
          individual(s) or employees used have acknowledged, in writing, that they
          are not
          employees, agents or subcontractors of the Company for any
          purpose.  Consultant hereby assumes full responsibility for all
          actions of all such individuals, and agrees to indemnify and hold the Company
          harmless from any and all claims by such individuals, by Consultant or
          by any
          federal state or local government agency relating to services performed
          in
          conjunction with this Agreement.

         

        (ii)  Consultant
          agrees and assumes full liability and responsibility for payment of
          compensation, taxes and other legal obligations (including, but not limited
          to,
          withholding, reporting of income, social security, unemployment and workers’
compensation).  Consultant agrees to indemnify and hold the Company
          harmless from any claims by federal, state or local government entities
          or
          agencies relating to the payment of compensation, taxes, unemployment
          contributions, tax withholding, insurance or other legal obligations arising
          out
          of or relating to services performed under this Agreement.

         

        (iii)  All
          individual(s) or employees have signed a standard proprietary information
          agreement and inventions agreement of the Company, or a substantially similar
          document.

         

        12.  Indemnification.  Consultants
          will jointly defend, indemnify and hold the Company harmless against any
          and all
          losses, liabilities, damages, claims, demands, suits, costs and expenses
          (including, without limitation, reasonable attorneys’ fees and court costs)
          arising or resulting, directly or indirectly, from (a) any act or omission
          of a
          Consultant or a Consultant’s breach of any term or condition of this Agreement,
          or (b) infringement by a Consultant’s performance of the Consulting Services of
          any third party intellectual property rights or (c) any failure (alleged
          or
          actual) by a Consultant to satisfy any of tax or withholding obligations
          resulting from his services to the Company.

         

        13.  Miscellaneous
          Provisions.

         

        (a)  Any
          dispute in the meaning, effect or validity of this Agreement shall be resolved
          in accordance with the laws of the State of California without regard to
          the
          conflict of laws provisions thereof.  All parties hereto further agree
          that any dispute between them may be determined only by a state or federal
          court
          of competent jurisdiction in Los Angeles County, California, and all parties
          hereby consent to venue and jurisdiction in that forum, based on the fact
          that
          this Agreement has been made and executed in that county, and will be at
          least
          partially performed there.

         

        (b)  If
          one or
          more provisions of this Agreement are held to be illegal or unenforceable,
          such
          illegal or unenforceable portion(s) shall be limited or excluded from this
          Agreement to the minimum extent required and the balance of the Agreement
          shall
          be interpreted as if such portion(s) were so limited or excluded and shall
          be
          enforceable in accordance with its terms.

         

        (c)  This
          Agreement shall be binding upon, and inure to the benefit of, the parties
          hereto
          and their respective heirs, successors and assigns; provided, however,
          that this
          Agreement and its rights and obligations are not assignable by Consultants
          without the Company’s prior written consent.

         

        (d)  Any
          notice required under this Agreement shall be deemed effectively given
          (i) upon
          personal delivery to the party to be notified, (ii) when sent by confirmed
          facsimile or electronic mail if sent during normal business hours of the
          recipient (if not sent during normal business hours, then on the next business
          day), (iii) three (3) days after having been sent by registered or certified
          mail, return receipt requested, postage prepaid, if sent within the United
          States (but seven (7) days after having been sent by similar mail service
          if
          sent from, or to, an address outside the United States) or (iv) one (1)
          day
          after deposit with a nationally recognized overnight courier, specifying
          next
          day delivery, with written verification of receipt.  All such notices
          shall be sent to the party entitled to such notice at the address indicated
          below such party’s signature line on this Agreement or at such other address as
          such party may designate by ten (10) days advance written notice under
          this
          section to all other parties to this Agreement.

         

        (e)  This
          Agreement contains the entire understanding of the parties regarding its
          subject
          matter and supersedes all prior understandings or agreements between the
          parties
          with regard to its subject matter, except with respect to agreements
          incorporated by reference in this Agreement or specifically deemed not
          to be
          modified by this Agreement (including the Prior Confidentiality
          Agreement).  This Agreement can only be modified by a subsequent
          written agreement executed by both parties.

         

        (f)  This
          Agreement may be signed in counterparts, each of which shall be deemed
          an
          original.

         

        [Signature
          Page Follows]

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

      

    

    
      IN
        WITNESS WHEREOF, this Consulting Agreement is entered into on the date first
        set
        forth above.

      
        
          	 
                  
                  COMPANY: 

                   

                	
                   

                  CONSULTANTS:

                   

                
	 U.S.
                  Auto Parts Network, Inc.	 Alexander
                  Adegan
	 By:     /s/MICHAEL
                  J.
                  McCLANE	 By:     /s/ALEXANDER
                  ADEGAN
	 Name:    Michael
                  J.
                  McClane                        	 Address:     
                  **********************
	 Title:     
                  Chief Financial Officer	
                   Fax
                    No.:       
                    **********

                
	 	 E-mail:         
                   **********
	 	 
	 	 uParts.com,
                  Inc.
	 	 By:     /s/ALEXANDER
                  ADEGAN
	 	 Title:    
                  President & C.E.O
	 	 Address:     
                  ************************
	 	 Fax
                  No.:        ************
	 	 Email:           
                  ************exhibit_10-3.htm

                                                                                                        EXHIBIT
    10.3
    U.S.
      AUTO PARTS NETWORK, INC.

     

    NON-INCENTIVE
      STOCK OPTION AGREEMENT

     

    This
      NON-INCENTIVE STOCK OPTION AGREEMENT (the “Agreement”) is made this
April 28, 2008, by and between U.S. Auto Parts Network, Inc., a Delaware
      corporation (the “Company”), and Alexander Adegan, an individual
      resident of California (“Optionee”).  Capitalized
      terms used but not otherwise defined herein shall have the meaning ascribed
      to
      such terms in the U.S. Auto Parts Network, Inc. 2007 Omnibus Incentive Plan
      (the
“Plan”).

     

    1.  Grant
      of Option.

     

    The
      Company hereby grants Optionee the option (the “Option”) to purchase
      all or any part of an aggregate of 120,000 shares (the “Shares”)
      of common stock, $0.001 par value (“Common Stock”), of the Company at
      the exercise price of $3.16 per share according to the terms and
      conditions set forth in this Agreement and in the Plan.  The Option
      will not be treated as an incentive stock option
      within the meaning of Section 422 of the Internal Revenue Code of 1986, as
      amended (the “Code”).  The Option is issued under the Plan
      and is subject to its terms and conditions.  A copy of the Plan will
      be furnished upon request of Optionee.

     

    2.  Vesting
      of Option Rights.

     

     

    (a)  The
      Option shall have a vesting commencement date of April 28, 2008, (the
“Vesting Commencement Date”), and except as otherwise provided in this
      Agreement, the Option shall be exercisable for vested Shares
      only.  The Option shall initially be for unvested
      Shares.  The Shares shall become vested Shares in a series of
      twenty-two (22) successive equal monthly installments upon Optionee’s completion
      of each additional month of Service over the twenty-one (21) month period
      measured from the Vesting Commencement Date.  In no event shall any
      additional Shares vest after Optionee’s Service ceases.

     

    (b)  During
      the lifetime of Optionee, the Option shall be exercisable only by Optionee
      and
      shall not be assignable or transferable by Optionee, other than by will or
      the
      laws of descent and distribution.  Notwithstanding the foregoing,
      Optionee may transfer the Option to any Family Member (as such term is defined
      in the General Instructions to Form S-8 (or successor to such Instructions
      or
      such Form)); provided, however, that (i) Optionee may not
      receive any consideration for such transfer, (ii) the Family Member must agree
      in writing not to make any subsequent transfers of the Option other than by
      will
      or the laws of the descent and distribution and (iii) the Company receives
      prior
      written notice of such transfer.

     

    3.  Exercise
      of Option after Death or Termination of Employment or Service.

     

    The
      Option shall terminate and may no longer be exercised if Optionee ceases to
      be
      employed by or provide Service to the Company or its Affiliates, except
      that:

     

    (a)  If
      Optionee’s employment or Service shall be terminated for any reason, voluntary
      or involuntary, other than for “Misconduct” (as defined in Section
      3(e)) or Optionee’s death or Permanent Disability, Optionee may at any time
      within a period of one (1) month after such termination exercise the Option
      to
      the extent the Option was exercisable by Optionee on the date of the termination
      of Optionee’s employment or Service.

     

    (b)  If
      Optionee’s employment or Service is terminated for Misconduct, the Option shall
      be terminated as of the date of the act giving rise to such
      termination.

     

    (c)  If
      Optionee shall die while the Option is still exercisable according to its terms,
      or if employment or Service is terminated because of Optionee’s Permanent
      Disability while in the employ of the Company, and Optionee shall not have
      fully
      exercised the Option, such Option may be exercised, at any time within twelve
      (12) months after Optionee’s death or date of termination of employment or
      Service for Permanent Disability, by Optionee, personal representatives or
      administrators or guardians of Optionee, as applicable, or by any person or
      persons to whom the Option is transferred by will or the applicable laws of
      descent and distribution, to the extent of the full number of Shares Optionee
      was entitled to purchase under the Option on (i) the earlier of the date of
      death or termination of employment or Service or (ii) the date of termination
      for such Permanent Disability, as applicable.

     

    (d)  Notwithstanding
      the above, in no case may the Option be exercised to any extent by anyone after
      the termination date of the Option.

     

    (e)  “Misconduct”
      shall have the same meaning as “Cause”, as such term is defined in the
      Consulting Agreement dated April 28, 2008 by and between the Company and
      Optionee.  The foregoing definition shall not in any way preclude or
      restrict the right of the Company (or any Affiliate) to discharge or dismiss
      any
      Optionee or other person in the Service of the Company (or any Affiliate) for
      any other acts or omissions but such other acts or omissions shall not be
      deemed, for purposes of the Agreement, to constitute grounds for termination
      for
      Misconduct.

     

    4.  Method
      of Exercise of Option.

     

    Subject
      to the foregoing, the Option may be exercised in whole or in part from time
      to
      time by serving written notice of exercise on the Company at its principal
      office within the Option period.  The notice shall state the number of
      Shares as to which the Option is being exercised and shall be accompanied by
      payment of the exercise price.  Payment of the exercise price shall be
      made (i) in cash (including bank check, personal check or money order payable
      to
      the Company), (ii) with the approval of the Company (which may be given in
      its
      sole discretion), by delivering to the Company for cancellation shares of the
      Company’s Common Stock already owned by Optionee having a Fair Market Value
      equal to the full exercise price of the Shares being acquired, (iii) with the
      approval of the Company (which may be given in its sole discretion) and subject
      to Section 402 of the Sarbanes-Oxley Act of 2002, by delivering to the Company
      the full exercise price of the Shares being acquired in a combination of cash
      and Optionee’s full recourse liability promissory note with a principal amount
      not to exceed eighty percent (80%) of the exercise price and a term not to
      exceed five (5) years, which promissory note shall provide for interest on
      the
      unpaid balance thereof which at all times is not less than the minimum rate
      required to avoid the imputation of income, original issue discount or a
      below-market rate loan pursuant to Sections 483, 1274 or 7872 of the Code or
      any
      successor provisions thereto, (iv) subject to Section 402 of the Sarbanes-Oxley
      Act of 2002, to the extent this Option is exercised for vested shares, through
      a
      special sale and remittance procedure pursuant to which Optionee shall
      concurrently provide irrevocable instructions (1) to Optionee’s brokerage firm
      to effect the immediate sale of the purchased Shares and remit to the Company,
      out of the sale proceeds available on the settlement date, sufficient funds
      to
      cover the aggregate exercise price payable for the purchased Shares plus all
      applicable income and employment taxes required to be withheld by the Company
      by
      reason of such exercise and (2) to the Company to deliver the certificates
      for
      the purchased shares directly to such brokerage firm in order to complete the
      sale, or (v) with the approval of the Company (which may be given in its sole
      discretion) and subject to Section 402 of the Sarbanes-Oxley Act of 2002, by
      delivering to the Company a combination of any of the forms of payment described
      above.  This Option may be exercised only with respect to full shares
      and no fractional share of stock shall be issued.

     

    5.  Change
      in Control.

     

     

    (a)  Immediately
      prior to the specified effective date of a Change in Control, the unvested
      Shares subject to this Option shall automatically become vested Shares, and
      this
      Options shall be exercisable for all or any portion of such Shares.

     

    (b)  Immediately
      following the consummation of the Change in Control, this Option shall
      terminate, except to the extent assumed by the successor corporation (or parent
      thereof) or otherwise continued in effect pursuant to the terms of the Change
      in
      Control transaction.  If this Option is assumed in connection with a
      Change in Control or otherwise continued in effect,  then this Option
      shall be appropriately adjusted, immediately after such Change in Control,
      to
      apply to the number and class of securities which would have been issuable
      to
      Optionee in consummation of such Change in Control had the Option been exercised
      immediately prior to such Change in Control, and appropriate adjustments shall
      also be made to the exercise price, provided the aggregate exercise
      price shall remain the same.  To the extent that the actual holders of
      the Company’s outstanding Common Stock receive cash consideration for their
      Common Stock in consummation of the Change in Control, the successor corporation
      may, in connection with the assumption of this Option, substitute one or more
      shares of its own common stock with a fair market value equivalent to the cash
      consideration paid per share of Common Stock in such Change in
      Control.

     

    (c)  This
      Agreement shall not in any way affect the right of the Company 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.

     

    (d)  For
      purposes of this Agreement, “Change in Control” shall mean a change in
      ownership or control of the Company effected through any of the following
      transactions: (i) a merger, consolidation or other reorganization unless
      securities representing more than 50% of the total combined voting power of
      the
      voting securities of the successor corporation are immediately thereafter
      beneficially owned, directly or indirectly and in substantially the same
      proportion, by the persons who beneficially owned the Company’s outstanding
      voting securities immediately prior to such transaction; (ii) the sale, transfer
      or other disposition of all or substantially all of the Company’s assets; or
      (iii) the acquisition, directly or indirectly by any person or related group
      of
      persons (other than the Company or a person that directly or indirectly
      controls, is controlled by, or is under common control with, the Company),
      of
      beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act)
      of
      securities possessing more than 50% of the total combined voting power of the
      Company’s outstanding securities pursuant to a tender or exchange offer made
      directly to the Company’s stockholders.

     

    6.  Capital
      Adjustments and Reorganization.

     

    .  Should
      any change be made to the Common Stock by reason of any stock split, reverse
      stock split, stock dividend, recapitalization, combination of shares, exchange
      of shares or other change affecting the outstanding Common Stock as a class
      without the Company’s receipt of consideration, appropriate adjustments shall be
      made to (a) the number and/or class of securities subject to this Option and
      (b)
      the exercise price in order to reflect such change and thereby preclude a
      dilution or enlargement of benefits hereunder.

     

    7.  Miscellaneous.

     

    (a)  Entire
      Agreement; Plan Provisions Control.  This Agreement (and any
      addendum hereto) and the Plan constitute the entire agreement between the
      parties hereto with regard to the subject matter hereof.  In the event
      that any provision of the Agreement conflicts with or is inconsistent in any
      respect with the terms of the Plan, the terms of the Plan shall
      control.  All decisions of the Committee with respect to any question
      or issue arising under the Plan or this Agreement shall be and binding on all
      persons having an interest in this Option.  All capitalized terms used
      in this Agreement and not otherwise defined in this Agreement shall have the
      meaning assigned to them in the Plan.

     

    (b)  No
      Rights of Stockholders.  Neither Optionee, Optionee’s legal
      representative nor a permissible assignee of this Option shall have any of
      the
      rights and privileges of a stockholder of the Company with respect to the
      Shares, unless and until such Shares have been issued in the name of Optionee,
      Optionee’s legal representative or permissible assignee, as applicable, without
      restrictions thereto.

     

    (c)  No
      Right to Employment.  The grant of the Option shall not be
      construed as giving Optionee the right to be retained in the employ of, or
      if
      Optionee is a director of the Company or an Affiliate as giving the Optionee
      the
      right to continue as a director of, the Company or an Affiliate, nor will it
      affect in any way the right of the Company or an Affiliate to terminate such
      employment or position at any time, with or without cause.  In
      addition, the Company or an Affiliate may at any time dismiss Optionee from
      employment, or terminate the term of a director of the Company or an Affiliate,
      free from any liability or any claim under the Plan or the
      Agreement.  Nothing in the Agreement shall confer on any person any
      legal or equitable right against the Company or any Affiliate, directly or
      indirectly, or give rise to any cause of action at law or in equity against
      the
      Company or an Affiliate.  The Option granted hereunder shall not form
      any part of the wages or salary of Optionee for purposes of severance pay or
      termination indemnities, irrespective of the reason for termination of
      employment.  Under no circumstances shall any person ceasing to be an
      employee of the Company or any Affiliate be entitled to any compensation for
      any
      loss of any right or benefit under the Agreement or Plan which such employee
      might otherwise have enjoyed but for termination of employment, whether such
      compensation is claimed by way of damages for wrongful or unfair dismissal,
      breach of contract or otherwise.  By participating in the Plan,
      Optionee shall be deemed to have accepted all the conditions of the Plan and
      the
      Agreement and the terms and conditions of any rules and regulations adopted
      by
      the Committee and shall be fully bound thereby.

     

    (d)  Governing
      Law.  The validity, construction and effect of the Plan and the
      Agreement, and any rules and regulations relating to the Plan and the Agreement,
      shall be determined in accordance with the internal laws, and not the law of
      conflicts, of the State of Delaware.

     

    (e)  Severability.  If
      any provision of the Agreement is or becomes or is deemed to be invalid, illegal
      or unenforceable in any jurisdiction or would disqualify the Agreement under
      any
      law deemed applicable by the Committee, such provision shall be construed or
      deemed amended to conform to applicable laws, or if it cannot be so construed
      or
      deemed amended without, in the determination of the Committee, materially
      altering the purpose or intent of the Plan or the Agreement, such provision
      shall be stricken as to such jurisdiction or the Agreement, and the remainder
      of
      the Agreement shall remain in full force and effect.

     

    (f)  No
      Trust or Fund Created.  Neither the Plan nor the Agreement shall
      create or be construed to create a trust or separate fund of any kind or a
      fiduciary relationship between the Company or any Affiliate and Optionee or
      any
      other person.

     

    (g)  Headings.  Headings
      are given to the Sections and subsections of the Agreement solely as a
      convenience to facilitate reference.  Such headings shall not be
      deemed in any way material or relevant to the construction or interpretation
      of
      the Agreement or any provision thereof.

     

    (h)  Notices.  Any
      notice required to be given or delivered to the Company under the terms of
      this
      Agreement shall be addressed to the Company at its principal corporate
      offices.  Any notice required to be given or delivered to Optionee
      shall be addressed to Optionee at the address of record provided to the Company
      by Optionee in connection with Optionee’s employment with or Services provided
      to the Company or such other address as Optionee may designate by ten (10)
      days’
advance written notice to the Company.  Any notice required to be
      given under this Agreement shall be in writing and shall be deemed effective
      upon personal delivery or upon the third (3rd) day following deposit in the
      U.S.
      mail, registered or certified, postage prepaid and properly addressed to the
      party entitled to such notice.

     

    (i)  Conditions
      Precedent to Issuance of Shares.  Shares shall not be issued
      pursuant to the exercise of the Option unless such exercise and the issuance
      and
      delivery of the applicable Shares pursuant thereto shall comply with all
      relevant provisions of law, including, without limitation, the Securities Act
      of
      1933, as amended, the Exchange Act of 1934, as amended, the rules and
      regulations promulgated thereunder, state blue sky laws, the requirements of
      any
      applicable Stock Exchange or the Nasdaq Stock Market and the Delaware General
      Corporation Law.  As a condition to the exercise of the purchase price
      relating to the Option, the Company may require that the person exercising
      or
      paying the purchase price represent and warrant that the Shares are being
      purchased only for investment and without any present intention to sell or
      distribute such Shares if, in the opinion of counsel for the Company, such
      a
      representation and warranty is required by law.

     

    (j)  Withholding.  In
      order to provide the Company with the opportunity to claim the benefit of any
      income tax deduction which may be available to it upon the exercise of the
      Option and in order to comply with all applicable federal or state income tax
      laws or regulations, the Company may take such action as it deems appropriate
      to
      insure that, if necessary, all applicable federal or state payroll, withholding,
      income or other taxes are withheld or collected from Optionee.

     

    (k)  Consultation
      With Professional Tax and Investment Advisors.  Optionee
      acknowledges that the grant, exercise and vesting with respect to this Option,
      and the sale or other taxable disposition of the Shares, may have tax
      consequences pursuant to the Code or under local, state or international tax
      laws.  Optionee further acknowledges that Optionee is relying solely
      and exclusively on Optionee’s own professional tax and investment advisors with
      respect to any and all such matters (and is not relying, in any manner, on
      the
      Company or any of its employees or representatives).  Optionee
      understands and agrees that any and all tax consequences resulting from the
      Option and its grant, exercise and vesting, and the sale or other taxable
      disposition of the Shares, is solely and exclusively the responsibility of
      Optionee without any expectation or understanding that the Company or any of
      its
      employees or representatives will pay or reimburse Optionee for such taxes
      or
      other items.

     

    (l)  Acceptance
      of Option.  By accepting receipt of this Agreement, Optionee
      hereby agrees to the terms and conditions set forth in this Agreement and the
      Plan with respect to the Option and any Shares issued as a result of the
      exercise of the Option, in whole or in part.

     

    IN
      WITNESS WHEREOF, the Company has executed this Agreement and caused
      this Option to be issued to Optionee on the date set forth in the first
      paragraph above.

     

    
      	
              U.S.
                AUTO PARTS NETWORK, INC.

               

               

            
	
              By:       /s/
                MICHAEL McCLANE

            
	
              Name:  Michael
                McClane

            
	
              Title:    Chief
                Financial Officer

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