Document:

form10q062009ex10_3.htm

    EXHIBIT
10.3

    
      [IPASS
LETTERHEAD]

     

    May 28,
2009

     

    

    VIA HAND
DELIVERY

    

    Frank
Verdecanna

    c/o iPass
Inc.

    3800
Bridge Parkway

    Redwood
Shores, CA 94065

    

    Re:           Separation
Agreement

     

    Dear
Frank:

     

    This
letter contains the terms of the separation agreement (the “Agreement”) which iPass Inc.
(“the Company”) is offering to you to aid in your employment
transition.

     

    1. Separation.  As
discussed, your last date of employment with the Company is expected to be
Friday, July 31, 2009 (the “Separation
Date”).  Between the date you receive this Agreement and the
Separation Date, you will use your best efforts to continue to perform your
assigned duties (including transitioning your duties), and will continue to
fully comply with all of your legal obligations to the Company (including
complying with all Company policies).  On the Separation Date, the
Company will pay you all accrued salary, and all accrued and unused vacation
earned through the Separation Date, subject to standard payroll deductions and
withholdings.  You are entitled to these payments regardless of
whether or not you sign this Agreement.  In addition, regardless of
whether you sign this Agreement:  (a) you will remain eligible for the
$12,500 discretionary bonus pursuant to the terms and conditions of the February
27, 2009 letter agreement between you and the Company; and (b) if your
employment continues through June 30, 2009, you will be eligible to earn a bonus
for the Second Quarter of 2009 (the “Second Quarter Bonus”) under
the terms and conditions of the Company’s 2009 Annual Executive Management Bonus
Plan (the “Executive Bonus
Plan”).  You agree that, if the Second Quarter Bonus is earned,
as determined by the Compensation Committee of the Company’s Board of Directors
(the “Compensation
Committee”), the Second Quarter Bonus will be paid to you on or about the
same time that Second Quarter bonuses are paid to other participants in the
Executive Bonus Plan.

     

    2. Severance
Benefits.  If:  (i) you timely sign, date and return
this Agreement; and (ii) on or within seven (7) days after the Separation Date,
you sign, date and return the Separation Date Release attached hereto as Exhibit A;
then you will receive the following severance benefits (the “Severance Benefits”) pursuant
to the terms of the iPass Inc. Executive Corporation Transaction and Severance
Benefit Plan (the “Severance
Plan” a copy of which will be provided to you on the Separation
Date):

     

    (a)           Severance
Payment.  The Company will pay you a cash severance amount
equal to the product of your current Base Salary (as defined in the Severance
Plan) multiplied by six (6) months, less required deductions and withholdings
(the “Base Severance
Payment”).  The Base Severance Payment will be paid in a lump
sum on the first payroll date after the Separation Date (provided you have
returned the fully signed Separation Date Release on or within seven (7) days
after the Separation Date).

     

    (b)           Bonus Severance Payment. Under
Section 4(a) of the Severance Plan, the Company will pay you a cash severance
bonus amount equal to one quarter of your target bonus under the Executive Bonus
Plan, less required deductions and withholdings (the “Bonus Severance
Payment”).  The Bonus Severance Payment will be paid in a lump
sum on the first payroll date after the Separation Date (provided you have
returned the fully signed Separation Date Release on or within seven (7) days
after the Separation Date).

     

    (c)           Health
Insurance.  To the extent provided by the federal COBRA law or,
if applicable, state insurance laws (collectively, “COBRA”), and by the Company’s
current group health insurance policies, you will be eligible to continue your
group health insurance benefits.  Later, you may be able to convert to
an individual policy through the provider of the Company’s health insurance, if
you wish.  You will be provided with a separate notice more
specifically describing your rights and obligations to continuing health
insurance coverage under COBRA.  If you timely elect continued group
health insurance coverage pursuant to COBRA, the Company will, as an additional
severance benefit, pay your COBRA premiums sufficient to continue group health
insurance coverage for you and your covered dependents (if applicable) at the
level of coverage in effect as of the Separation Date, through the earlier of
either: (i) twelve (12) months from the Separation Date; or (ii) the date that
you become eligible for group health insurance coverage through another
employer.  You must promptly notify me in writing if you become
eligible for group health insurance coverage through another employer prior to
the expiration of the twelve month period after the Separation
Date.

     

    (d)           Prorated Third Quarter Bonus Payment.
To earn a bonus for the Third Quarter of 2009 under the Executive Bonus
Plan, you must remain employed through the end of the Third Quarter (e.g. through September 30,
2009), in addition to meeting the other terms and conditions of the Executive
Bonus Plan.  Notwithstanding that we expect your employment to
terminate prior to September 30, 2009, as an additional severance benefit, you
will be eligible for a prorated bonus payment for the Third Quarter based on the
complete calendar months you remain employed during the Third Quarter, and
provided that the other terms and conditions for receipt of a bonus under the
Executive Bonus Plan are met.  The Third Quarter bonus amount, if any,
will be determined by the Compensation Committee.  In the unlikely
event that your employment continues through September 30, then you will be
eligible for a Third Quarter bonus under the full terms and conditions of the
Executive Bonus Plan.  If owed, the Third Quarter bonus payment will
be paid to you on or about the same time that Third Quarter bonuses are paid to
other participants in the Executive Bonus Plan.

     

    (e)           Retention of Laptop Computer and Cell
Phone. As an additional severance benefit, the Company will permit you to
retain the Company’s laptop computer and cell phone provided for your use in
connection with your employment (the “Electronic Equipment”), and
the Company will transfer to you its ownership interest in the Electronic
Equipment effective as of the Separation  Date.  The
Electronic Equipment is being provided to you in “as is” condition and without
warranty or guarantee of any kind.  You are solely responsible for any
tax consequences of the Company’s transfer of its ownership interest in the
Electronic Equipment.  In addition, prior to the Separation Date, at
the Company’s request you must provide the Electronic Equipment to the Company
for the purpose of deletion of confidential and proprietary information, and
licensed materials, from the Electronic Equipment.

     

    3. Equity
Awards.  Vesting of your outstanding stock options and any
other equity awards (the “Options”) will cease on the
Separation Date and your unvested Options shall terminate.  Your
Options, including your rights to exercise any vested shares, are governed by
the terms of your operative agreements with the Company and the applicable
equity plan.

     

    4. No Other Compensation or
Benefits.  You acknowledge that, except as expressly provided
in this Agreement, you have not earned and will not receive from the Company any
additional compensation (including base salary, bonus, incentive compensation,
variable compensation, or equity), severance, or benefits before or after the
Separation Date, with the exception of any vested benefits you may have under
the express terms of a written ERISA-qualified benefit plan (e.g., 401(k) account) or any
vested Options (if timely exercised by you).

     

    5. Expense
Reimbursements.  You agree that, within thirty (30) days of the
Separation Date, you will submit your final documented expense reimbursement
statement reflecting all business expenses you incurred through the Separation
Date, if any, for which you seek reimbursement.  The Company will
reimburse you for these expenses pursuant to its regular business
practice.

     

    6. Return of Company Property. By
the close of business on the Separation Date, or earlier if requested by the
Company, you agree to return to the Company all Company documents (and all
copies thereof) and other Company property which you have in your possession or
control (other than the Electronic Equipment, as discussed in Section 2(e)),
including, but not limited to, Company files, notes, drawings, records, plans,
forecasts, reports, financial data, payroll information, spreadsheets, studies,
analyses, proposals, agreements, research and development information, sales and
marketing information, customer lists, prospect information, pipeline reports,
sales reports, operational and personnel information, specifications, code,
software, databases, computer-recorded information, tangible property and
equipment (including, but not limited to, computers, facsimile machines, mobile
telephones, servers), credit cards, entry cards, identification badges and keys;
and any materials of any kind which contain or embody any proprietary or
confidential information of the Company (and all reproductions thereof in whole
or in part).  You agree that you will make a diligent search to locate
any such documents, property and information within the required
timeframe.  In addition, if you have used any personally owned
computer, server, or e-mail system to receive, store, review, prepare or
transmit any Company confidential or proprietary data, materials or information,
then no later than the Separation Date, you must provide the Company with a
computer-useable copy of such information and then permanently delete and
expunge such Company confidential or proprietary information from those systems
without retaining any reproductions (in whole or in part); and you agree to
provide the Company access to your system as requested to verify that the
necessary copying and/or deletion is done.  You agree that, after the
applicable timeframes noted above, you will neither use nor possess Company
property.  Your
timely compliance with this paragraph is a condition precedent to your receipt
of the Severance Benefits.

     

    7. Proprietary Information
Obligations.  You acknowledge and reaffirm your continuing
obligations under your Employee Proprietary Information and Inventions Agreement
that you signed on October 16, 2000 (the “Proprietary Information
Agreement”), which include but are not limited to your continuing
obligations not to use or disclose any confidential or proprietary information
of the Company.

     

    8. Nondisparagement.  You
agree not to disparage the Company, and the Company’s officers, directors,
employees, shareholders and agents, in any manner likely to be harmful to them
or their business, business reputation or personal reputation, and the Company
agrees to direct its officers and directors not to disparage you in any manner
likely to be harmful to your business, business reputation or personal
reputation; provided that all parties may respond accurately and fully to any
question, inquiry or request for information when required by legal
process.

     

    9. No Admissions.  The
promises and payments in consideration of this Agreement shall not be construed
to be an admission of any liability or obligation by either party to the other
party, and neither party makes any such admission.

     

    10. Cooperation and
Assistance.  You agree that you will not voluntarily provide
assistance, information or advice, directly or indirectly (including through
agents or attorneys), to any person or entity in connection with any claim or
cause of action of any kind brought against the Company, nor shall you induce or
encourage any person or entity to bring such claims.  However, it will
not violate this Agreement if you testify truthfully when required to do so by a
valid subpoena or under similar compulsion of law.  Further, you agree
to voluntarily cooperate with the Company if you have knowledge of facts
relevant to any threatened or pending litigation against the Company by making
yourself reasonably available without further compensation for interviews with
the Company or its legal counsel, for preparing for and providing deposition
testimony, and for preparing for and providing trial testimony.

     

    11. Nonsolicitation.  You
agree that for one year following the Separation Date, you will not, directly or
indirectly, solicit, induce or encourage, or attempt to solicit, induce or
encourage, any employee, consultant, or independent contractor of the Company to
terminate his or her relationship with the Company in order to become an
employee, consultant, or independent contractor to or for any other person or
entity.

     

    12. Release of
Claims.

     

    (a)           General Release.  In
exchange for the consideration provided to you under this Agreement to which you
would not otherwise be entitled, you hereby generally and completely release the
Company and its current and former directors, officers, employees, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary
entities, insurers, affiliates, and assigns (collectively, the “Released Parties”) of and from
any and all claims, liabilities and obligations, both known and unknown, that
arise out of or are in any way related to events, acts, conduct, or omissions
occurring prior to or on the date you sign this Agreement (collectively, the
“Released
Claims”).

     

    (b)           Scope of
Release.  The Released Claims include, but are not limited
to:  (i) all claims arising out of or in any way related to your
employment with the Company, or the termination of that employment;
(ii) all claims related to your compensation or benefits from the Company,
including salary, bonuses, commissions, vacation pay, expense reimbursements,
severance pay, fringe benefits, stock, stock options, or any other ownership
interests in the Company; (iii) all claims for breach of contract, wrongful
termination, and breach of the implied covenant of good faith and fair dealing;
(iv) all tort claims, including claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and (v) all federal,
state, and local statutory claims, including claims for discrimination,
harassment, retaliation, attorneys’ fees, or other claims arising under the
federal Civil Rights Act of 1964 (as amended), the federal Americans with
Disabilities Act of 1990, the California Labor Code (as amended), and the
California Fair Employment and Housing Act (as amended).

     

    (c)           Excluded Claims.
Notwithstanding the foregoing, the following are not included in the
Released Claims (the “Excluded
Claims”): (i) any rights or claims for indemnification you may have
pursuant to any written indemnification agreement with the Company to which you
are a party; the charter, bylaws, or operating agreements of the Company; any
insurance policies for which you are a named insured (including without
limitation any Directors and Officers insurance policy); or under applicable
law; (ii) any rights which are not waivable as a matter of law; and (iii)
any claims for breach of this Agreement.  In addition, nothing in this
Agreement prevents you from filing, cooperating with, or participating in any
proceeding before the Equal Employment Opportunity Commission, the Department of
Labor, the California Department of Fair Employment and Housing, or any other
government agency, except that you acknowledge and agree that you are hereby
waiving your right to any monetary benefits in connection with any such claim,
charge or proceeding.  You hereby represent and warrant that, other
than the Excluded Claims, you are not aware of any claims you have or might have
against any of the Released Parties that are not included in the Released
Claims.

     

    (d)             Waiver of Unknown
Claims.  In giving the releases set forth in this Agreement,
which include claims which may be unknown to you at present, you acknowledge
that you have read and understand Section 1542 of the California Civil Code
which reads as follows: “A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which
if known by him or her must have materially affected his or her settlement with
the debtor.”  You hereby expressly waive and relinquish all
rights and benefits under that section and any law or legal principle of similar
effect in any jurisdiction with respect to your release of claims herein,
including but not limited to the release of unknown and unsuspected
claims.

     

    13. Dispute
Resolution.  To ensure rapid and economical resolution of any
disputes regarding this Agreement, the parties hereby agree that any and all
claims, disputes or controversies of any nature whatsoever arising out of, or
relating to, this Agreement, or its interpretation, enforcement, breach,
performance or execution, your employment with the Company, or the termination
of such employment, shall be resolved, to the fullest extent permitted by law,
by final, binding and confidential arbitration in San Francisco, CA conducted
before a single arbitrator by JAMS, Inc. (“JAMS”) or its successor, under
the then applicable JAMS arbitration rules.  The parties each acknowledge that by
agreeing to this arbitration procedure, they waive the right to resolve any such
dispute, claim or demand through a trial by jury or judge or by administrative
proceeding.  You will have the right to be represented by legal
counsel at any arbitration proceeding.  The arbitrator
shall:  (a) have the authority to compel adequate discovery for the
resolution of the dispute and to award such relief as would otherwise be
available under applicable law in a court proceeding; and (b) issue a written
statement signed by the arbitrator regarding the disposition of each claim and
the relief, if any, awarded as to each claim, the reasons for the award, and the
arbitrator’s essential findings and conclusions on which the award is
based.  The arbitrator, and not a court, shall also be authorized to
determine whether the provisions of this paragraph apply to a dispute,
controversy, or claim sought to be resolved in accordance with these arbitration
procedures.  Nothing in this Agreement is intended to prevent either
you or the Company from obtaining injunctive relief in court to prevent
irreparable harm pending the conclusion of any arbitration.

     

    14. Miscellaneous.  This
Agreement, including Exhibit A,
constitutes the complete, final and exclusive embodiment of the entire agreement
between you and the Company with regard to the subject matter
hereof.  It is entered into without reliance on any promise or
representation, written or oral, other than those expressly contained herein,
and it supersedes any other agreements, promises, warranties or representations
concerning its subject matter.  This Agreement may not be modified or
amended except in a writing signed by both you and a duly authorized officer of
the Company.  This Agreement will bind the heirs, personal
representatives, successors and assigns of both you and the Company, and inure
to the benefit of both you and the Company, their heirs, successors and
assigns.  If any provision of this Agreement is determined to be
invalid or unenforceable, in whole or in part, this determination shall not
affect any other provision of this Agreement and the provision in question shall
be modified so as to be rendered enforceable in a manner consistent with the
intent of the parties insofar as possible under applicable law.  This
Agreement shall be construed and enforced in accordance with the laws of the
State of California without regard to conflicts of law
principles.  Any ambiguity in this Agreement shall not be construed
against either party as the drafter.  Any waiver of a breach of this
Agreement, or rights hereunder, shall be in writing and shall not be deemed to
be a waiver of any successive breach or rights hereunder.  This
Agreement may be executed in counterparts which shall be deemed to be part of
one original, and facsimile signatures shall be equivalent to original
signatures.

     

    If this
Agreement is acceptable to you, please sign and date below within seven (7) days
after you receive it and then send me the fully signed Agreement.  The
Company’s offer contained herein will automatically expire if we do not receive
the fully signed Agreement from you within this timeframe.

     

    I wish
you the best in your future endeavors and thank you for your contributions to
the Company.

     

    Sincerely,

     

    iPass Inc.

    

    

    By:          /s/ J. Michael Badgis

    J. Michael Badgis

    Vice President, Human
Resources

    
 

    Exhibit
A – Separation Date Release

    

    

    Understood
and Agreed:

    

    
/s/ Frank
Verdecanna

    
      Frank
Verdecanna

    

    

    May
28, 2009

    Date

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    SEPARATION
DATE RELEASE

    (To be
signed and returned on the Separation Date or within seven (7) days
after.)

    

    I
understand that my employment with iPass Inc. (the “Company”) terminated effective
July 31, 2009 (the “Separation
Date”).  The Company has agreed that if I choose to sign this
Separation Date Release (the “Release”), the Company will
pay me certain Severance Benefits pursuant to the terms of the transition and
separation agreement between me and the Company dated May 28, 2009 (the “Agreement”) and the iPass Inc.
Executive Corporation Transaction and Severance Benefit Plan (the “Severance Plan”).  I
understand that I am not entitled to the Severance Benefits unless I sign and
return this Release within the stated time period).  I further
understand that, regardless of whether I sign this Release, the Company will pay
me all of my accrued salary and accrued and unused vacation through the
Separation Date, to which I am entitled by law.

     

    In
exchange for the Severance Benefits to be provided to me under the Severance
Plan, and as required by the Severance Plan, I hereby generally and completely
release the Company and its current and former directors, officers, employees,
shareholders, partners, agents, attorneys, predecessors, successors, parent and
subsidiary entities, insurers, affiliates, and assigns (collectively, the “Released Parties”) of and from
any and all claims, liabilities and obligations, both known and unknown, that
arise out of or are in any way related to events, acts, conduct, or omissions
occurring prior to or on the date I sign this Release (collectively, the “Released
Claims”).  The Released Claims include, but are not limited
to:  (a) all claims arising out of or in any way related to my
employment with the Company or the termination of that employment; (b) all
claims related to my compensation or benefits from the Company, including
salary, bonuses, commissions, paid time off, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (c) all claims for breach of contract, wrongful termination, and
breach of the implied covenant of good faith and fair dealing; (d) all tort
claims, including claims for fraud, defamation, emotional distress, and
discharge in violation of public policy; and (e) all federal, state, and local
statutory claims, including claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal Civil Rights Act of
1964 (as amended), the federal Americans with Disabilities Act of 1990, the
federal Family and Medical Leave Act (as amended) (“FMLA”), the California Family
Rights Act (“CFRA”), the
California Labor Code (as amended), and the California Fair Employment and
Housing Act (as amended).  Notwithstanding the release in the
preceding sentence, I am not releasing any right of indemnification I may have
pursuant to any written indemnification agreement with the Company to which I am
a party, the charter, bylaws, or operating agreements of the Company, any
insurance policies for which I am a named insured (including without limitation
any Directors and Officers insurance policy), or under applicable law; and I am
not releasing any rights which are not waivable as a matter of law
(collectively, the “Excluded
Claims”).  In addition, I understand that nothing in this
Release prevents me from filing, cooperating with, or participating in any
proceeding before the Equal Employment Opportunity Commission, the Department of
Labor, the California Department of Fair Employment and Housing, or any other
government agency, except that I acknowledge and agree that I hereby waive my
right to any monetary benefits in connection with any such claim, charge or
proceeding.  I hereby represent and warrant that, other than the
Excluded Claims, I am not aware of any claims I have or might have against any
of the Released Parties that are not included in the Released
Claims.

     

    In giving
the general release herein, which includes claims which may be unknown to me at
present, I acknowledge that I have read and understand Section 1542 of the
California Civil Code, which reads as follows:  “A general release does not extend to
claims which the creditor does not know or suspect to exist in his or her favor
at the time of executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor.”  I
hereby expressly waive and relinquish all rights and benefits under that section
and any law of any other jurisdiction of similar effect with respect to my
release of claims contained herein, including but not limited to any unknown or
unsuspected claims.

     

    I hereby
represent that I have been paid all compensation owed and for all hours worked,
I have received all the leave and leave benefits and protections for which I am
eligible, pursuant to FMLA, CFRA, the Company’s policies, applicable law, or
otherwise, and I have not suffered any on-the-job injury or illness for which I
have not already filed a workers’ compensation claim.

     

    

     

    By:         /s/ Frank
Verdecanna                                                       

    Frank
Verdecanna

     

    Date:      July 31,
2009form10q062009ex10_4.htm

    
      EXHIBIT
10.4

      
        [IPASS
LETTERHEAD]

    

     

    May 20,
2009

     

     

    Steven
Gatoff

    

    Dear
Steven:

    

    I am
pleased to offer you employment in the position of Senior Vice President and
Chief Financial Officer at iPass Inc. (“iPass” or the “Company”), reporting to
me, under the terms set forth in this letter.  Your initial base
salary will be $10,416.67, paid semi-monthly, plus benefits, including the
option of participating in our 401(k) Plan.  If annualized, this base
salary amount equals $250,000.  As an exempt employee, you will not be
eligible for overtime compensation.

    

    In
addition, you will be eligible to earn a target annual bonus of $100,000 paid on
a quarterly basis consistent with the management bonus plan.  Bonuses
are only considered earned if the participant is an employee of iPass in good
standing on the last day of the fiscal quarter and has successfully completed
the quarterly objectives.  If you leave the Company for any reason
during the quarter, no pro-rata bonus shall be earned.  The Company
shall have the sole discretion to determine if you have met all of the
requirements for earning a bonus (including completion of the applicable
objectives) and, if so, the amount of the bonus payment.  If earned,
the bonus payments generally will be paid within forty-five (45) days following
the end of the Company’s fiscal quarter to allow the Company time to determine
bonus calculations.  Any bonus provided to you will be subject to
standard deductions and withholdings.

    

    Further,
subject to the approval of the
Board of Directors of iPass (the "Board"), you will be granted an option
to purchase 200,000 shares of iPass’ common stock, subject
to a four-year vesting schedule, at a purchase price equal to the
fair market value of the stock as of the date of grant (as determined by the
Board) under the iPass 2003 Equity Incentive Plan (the "Plan").  The
option will be governed by the terms of the Plan and your stock option
agreement.

    

    To assist
with your relocation, the Company will provide you with a Relocation Bonus of
$20,000 (subject to standard payroll deductions and withholdings), will also
arrange for the movement of your household goods, and will provide other
relocation assistance, subject to the terms and conditions outlined in the
attached Relocation Agreement.

    

    iPass
offers its employees health, dental, vision, life, AD&D, and short term and
long term disability insurance, and you will be eligible to participate in these
benefit plans in accordance with the terms and conditions of the applicable plan
documents.  The health and dental plans provide you with several
options regarding your care.  Please read the enclosed information
about the health and dental plan options available to you.  You may
call Mike Badgis with any questions about health insurance or any other iPass
benefits at (650) 232-4130.  iPass may modify your position, duties,
reporting relationship, office location, and compensation and benefits from time
to time in its discretion.

     

    In
addition, in the position of Senior Vice President and Chief Financial Officer,
you will be eligible to become a "Participant" under the Company's Executive
Corporate Transaction and Severance Benefit Plan (the "Executive Severance
Plan"), which provides specified severance benefits to certain eligible
executive employees of the Company in the event of qualifying employment
terminations, pursuant to the terms and conditions of the Executive Severance
Plan.  In order to become a Participant, you will need to sign and
return the enclosed Executive Severance Plan Participation Notice.

     

    This
offer is contingent upon the successful results of background and reference
checks, your execution of and compliance with the enclosed Proprietary
Information and Inventions Agreement and satisfactory proof of your right to
work in the United States.  You agree to assist as needed and to complete
any documentation at the Company’s request to meet these
conditions.  In addition, as a condition of your employment, you will
be required to abide by the Company’s policies and procedures, including but not
limited to the policies set forth in the Company’s Employee Handbook, as may be
in effect from time to time.  Employment with iPass is at the will of
each party, is not for a specific term and can be terminated by you or by the
Company at any time, with or without cause and with or without advance
notice.

     

    This
letter, along with your Proprietary Information and Inventions Agreement and the
Relocation Agreement, is the entire agreement between you and iPass concerning
your employment terms, and it supersedes any other agreements or promises made
to you by anyone, whether written or oral.  The terms of this letter
cannot be changed (except with respect to those changes expressly reserved to
the Company’s discretion herein) unless such changes are in writing and signed
by an authorized representative of iPass.  This offer is valid until
Wednesday, May 27, 2009 at 5:00 pm, at which time it will expire if you have not
returned this fully signed letter to the Company.

    

    Please
signify your acceptance of employment with the Company under the terms provided
in this letter by signing and dating below and returning this offer letter to
Mike Badgis at fax number (650) 232-0232.

    
 

    Steven,
your acceptance of our offer represents a unique opportunity for us both to grow
and succeed.  We all want to thank you in advance for your faith in
us, and for the commitment you have made to our common
vision.  Finally, we all look forward to working and building iPass
with you!

    

    Welcome
aboard,                                                                                  Understood
And Accepted

     

     

    /s/
Evan
Kaplan                                                                                     
/s/ Steven
Gatoff

    Evan L.
Kaplan                                                                               Steven
Gatoff

    President
& CEO

     

                                                      May
27, 2009            June
22, 2009    

                                            Date              Start
Date 06-22-09

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

May 20,
2009

    
      

      Steven
Gatoff

      

      RE:
Relocation Agreement

      

      Dear
Steven:

      

      To assist
you with your relocation, this letter (the “Agreement”) describes the relocation
benefits which iPass Inc. (the “Company”) is making available to you to aid in
your transition.

      

      
        	
                1.  

              	
                A
      Relocation Bonus (the “Bonus”) of $20,000. This Bonus payment will be
      subject to standard payroll deductions and withholding and will be paid in
      a lump-sum within ten (10) days of a mutually agreed upon date of
      relocation.  This Bonus payment is intended to assist with
      incidental expenses incurred during your relocation.  Please
      note that this Bonus is a general amount, and it is not intended to cover
      all expenses resulting from your relocation.  Any expenses
      incurred above this amount are your responsibility unless otherwise
      provided in this Agreement.

              

      

      

      
        	
                2.  

              	
                Movement
      of household goods, utilizing a Company-designated moving
      company.  The Company will provide for insurance, packing,
      shipment and unpacking of all normal household goods from your current
      residence to your new home.  The Company reserves the right to
      refuse reimbursement of any expenses considered outside the normal
      relocation.  Following is a partial list of expenses that will
      not be covered under this
Agreement:

              

      

      

      
        	
                a.  

              	
                Exclusive
      use of the moving van;

              

      

      
        	
                b.  

              	
                Shipment
      of perishables, combustible items and items which may cause damage to
      other goods;

              

      

      
        	
                c.  

              	
                Shipment
      of boats or recreational vehicles;

              

      

      
        	
                d.  

              	
                Shipment
      of bricks, cement, firewood, lumber or other heavy or bulky items which
      are of little value in relation to the cost of
  moving;

              

      

      
        	
                e.  

              	
                Disassembly
      and reassembly of portable spas or swimming
  pools;

              

      

      
        	
                f.  

              	
                Shipment
      of jewelry, precious stones, legal documents money in any form, stamp
      collections or firearms;

              

      

      
        	
                g.  

              	
                Shipment
      of outbuildings, storage sheds or
greenhouses;

              

      

      
        	
                h.  

              	
                Removal
      or installation of TV antennas, satellite dishes, carpeting, draperies and
      other items attached to walls;

              

      

      
        	
                i.  

              	
                Shipment
      of heavy equipment.

              

      

      

      
        	
                 
      

              	
                3.

              	
                The
      Company will either (as elected by the Company) pay directly to third
      parties or reimburse your reasonable expenses incurred for coach-class
      airfare, rental car and hotel costs (covering you, your spouse, and your
      dependent children) for up to two (2) house hunting trips to the San
      Francisco Bay Area (with each trip to be no longer than three (3) days in
      duration).  To be eligible for reimbursement or payment by the
      Company, both trips must be taken no later than August 31,
      2009.  In addition to reimbursement of actual costs for your
      house hunting trips, the Company will provide an additional payment equal
      to thirty percent (30%) of the amount reimbursed to you, to assist with
      the tax implications of these reimbursements.  The Company will
      also assist in your relocation by paying for the costs of 2-day
      comprehensive services provided by relocation specialists, The Right Move
      Group, to assist with your orientation to the Bay Area during one of your
      house hunting trips.

              

      

      

      
        	
                 
      

              	
                4.

              	
                The
      Company will reimburse your lease payments made by you during your
      employment with the Company on your Southern California residence, for up
      to a maximum of six (6) months of lease payments, beginning with your July
      lease payment.  The total monthly reimbursement amount that you
      are eligible to receive will be up to $5,000 for the lease payment (or
      your actual lease payment amount if less than $5,000) plus an additional
      thirty percent (30%) payment amount (up to a maximum of an additional
      $1,500 per month) to assist with the tax implications of these
      reimbursements.  Of course, if your lease expires prior to six
      (6) months, or your landlord relieves you of your lease payment
      obligations, then the Company’s reimbursements will
  cease.

              

      

      

      To
qualify for reimbursement or payment under this Agreement, all expenses incurred
by you (including but not limited to your monthly lease payments as discussed in
Category 4 above) or other costs must be fully documented (including receipts)
on a properly completed expense reimbursement report and otherwise comply with
the Company’s standard expense reimbursement policy and
practice.  Qualifying reimbursements will be paid to you no later than
sixty (60) days after receipt of the fully documented expense reimbursement
report.  In addition, you must remain an employee in good standing of
the Company as of the date that the cost or expense is incurred.

      

      In
consideration of these benefits, you hereby agree that if you voluntarily leave
the Company for any reason or are terminated involuntarily for cause (as defined
in the Company’s Executive Corporate Transaction and Severance Benefit Plan)
during the eighteen (18) month period directly following your date of hire then
you must repay: (A) the Bonus;  (B) the total cost of moving your
household goods to the Company at the time of termination; and (C) the total
gross amount of any reimbursements paid to you, or payments made by the Company
directly to third parties (including but not limited to The Right Move Group),
pursuant to Categories 3 and 4 above.  You hereby authorize the
Company to deduct any such amounts to be repaid from your final check, your
final vacation pay out or your final expense reimbursement.  Should
these payments be insufficient to reimburse the Company fully, you hereby agree
to pay the difference within fifteen (15) calendar days of your final day of
employment with the Company.

      

      Lastly,
please understand that all other terms and conditions of your employment remain
unchanged.

      

      If this
Agreement is acceptable to you, please sign below and return the signed original
to me.

      

      Sincerely,

       

       

      /s/ J. Michael
Badgis
J.
Michael Badgis

      Vice
President, Human Resources &

      Facilities
Management

      

      

      Understood
and Agreed:

      

      

      /s/
Steven Gatoff    May
27, 2009

      Steven
Gatoff          Date

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

EMPLOYEE
CONFIDENTIALITY AND INVENTIONS ASSIGNMENT AGREEMENT

     

    In
consideration of my employment or continued employment by iPass,
Inc. (“Company”),
and the compensation now and hereafter paid to me, I hereby agree as
follows:

     

    1. Confidentiality.

     

    1.1 Nondisclosure; Recognition of
Company’s Rights.  At all times during my employment and
thereafter, I will hold in confidence and will not disclose, use, lecture upon,
or publish any of Company’s Confidential Information (defined below), except as
such use is required in connection with my work for Company, or unless the Chief
Executive Officer (the “CEO”) of Company expressly
authorizes in writing such disclosure or publication.  I will obtain
the CEO’s written approval before publishing or submitting for publication any
material (written, oral, or otherwise) that relates to my work at Company and/or
incorporates any Confidential Information.  I hereby assign to Company
any rights I have or acquire in any and all Confidential Information and
recognize that all Confidential Information shall be the sole and exclusive
property of Company and its assigns.

     

    1.2 Confidential
Information.  The term “Confidential Information”
shall mean any and all confidential knowledge, data or information related to
Company’s business or its actual or demonstrably anticipated research or
development, including without limitation: (a) trade secrets, inventions, ideas,
processes, computer source and object code, data, formulae, programs, other
works of authorship, know-how, improvements, discoveries, developments, designs,
and techniques; (b) information regarding products, plans for research and
development, marketing and business plans, budgets, financial statements,
contracts, prices, suppliers, and customers; (c) information regarding the
skills and compensation of Company’s employees, contractors, and any other
service providers of Company; and (d) the existence of any business discussions,
negotiations, or agreements between Company and any third party.

     

    1.3 Third Party
Information.  I understand, in addition, that Company has
received and in the future will receive from third parties confidential or
proprietary information (“Third
Party Information”) subject to a duty on Company’s part to maintain the
confidentiality of such information and to use it only for certain limited
purposes.  During the term of my employment and thereafter, I will
hold Third Party Information in strict confidence and will not disclose to
anyone (other than Company personnel who need to know such information in
connection with their work for Company) or use, except in connection with my
work for Company, Third Party Information, unless expressly authorized by an
officer of Company in writing.

     

    1.4  No
Improper Use of Information of Prior

    Employers and
Others.  I represent that my employment by Company does not and
will not breach any agreement with any former employer, including any noncompete
agreement or any agreement to keep in confidence information acquired by me in
confidence or trust prior to my employment by Company.  I further
represent that I have not entered into, and will not enter into, any agreement,
either written or oral, in conflict herewith.  During my employment by
Company, I will not improperly use or disclose any confidential information or
trade secrets of any former employer or other third party to whom I have an
obligation of confidentiality, and I will not bring onto the premises of Company
or use any unpublished documents or any property belonging to any former
employer or other third party to whom I have an obligation of confidentiality,
unless consented to in writing by that former employer or person.  I
will use in the performance of my duties only information that is generally
known and used by persons with training and experience comparable to my own, is
common knowledge in the industry or otherwise legally in the public domain, or
is otherwise provided or developed by Company.

     

    2. Inventions.

     

    2.1 Inventions and Intellectual Property
Rights.  As used in this Agreement, the term “Invention” means any ideas,
concepts, information, materials, processes, data, programs, know-how,
improvements, discoveries, developments, designs, artwork, formulae, other
copyrightable works, and techniques and all Intellectual Property Rights
therein.  The term “Intellectual Property Rights”
means all trade secrets, copyrights, trademarks, mask work rights, patents and
other intellectual property rights recognized by the laws of any jurisdiction or
country.

     

    2.2 Prior Inventions.  I
agree that I will not incorporate, or permit to be incorporated, Prior
Inventions (defined below) in any Company Inventions (defined below) without
Company’s prior written consent. In addition, I agree that I will not
incorporate into any Company software or otherwise deliver to Company any
software code licensed under the GNU GPL or LGPL or any other license that, by
its terms, requires or conditions the use or distribution of such code on the
disclosure, licensing, or distribution of any source code owned or licensed by
Company.  I have disclosed on Exhibit A a complete list of all
Inventions that I have, or I have caused to be, alone or jointly with others,
conceived, developed, or reduced to practice prior to the commencement of my
employment by Company, in which I have an ownership interest or which I have a
license to use, and that I wish to have excluded from the scope of this
Agreement (collectively referred to as “Prior
Inventions”).  If no Prior Inventions are listed in Exhibit A, I warrant that
there are no Prior Inventions.  If, in the course of my employment
with Company, I incorporate a Prior Invention into a Company process, machine or
other work, I hereby grant Company a non-exclusive, perpetual, fully-paid and
royalty-free, irrevocable and worldwide license, with rights to sublicense
through multiple levels of sublicensees, to reproduce, make derivative works of,
distribute, publicly perform, and publicly display in any form or medium,
whether now known or later developed, make, have made, use, sell, import, offer
for sale, and exercise any and all present or future rights in, such Prior
Invention.

     

    2.3 Assignment of Company
Inventions. Subject to the section titled “Government or Third Party” and
except for Inventions that I can prove qualify fully under the provisions of
California Labor Code section 2870 and I have set forth in Exhibit A, I hereby assign and
agree to assign in the future (when any such Inventions or Intellectual Property
Rights are first reduced to practice or first fixed in a tangible medium, as
applicable) to Company all my right, title, and interest in and to any and all
Inventions (and all Intellectual Property Rights with respect thereto) made,
conceived, reduced to practice, or learned by me, either alone or with others,
during the period of my employment by Company.  Inventions assigned to
Company or to a third party as directed by Company pursuant to the section
titled “Government or Third Party” are referred to in this Agreement as “Company
Inventions.”

     

    2.4 Obligation to Keep Company
Informed.  During the period of my employment and for one (1)
year thereafter, I will promptly and fully disclose to Company in writing (a)
all Inventions authored, conceived, or reduced to practice by me, either alone
or with others, including any that might be covered under California Labor Code
section 2870, and (b) all patent applications filed by me or in which I am named
as an inventor or co-inventor.

     

    2.5 Government or Third
Party.  I also agree to assign all my right, title, and
interest in and to any particular Company Invention to a third party, including
without limitation the United States, as directed by Company.

     

    2.6 Enforcement of Intellectual Property
Rights and Assistance.  During the period of my employment and
thereafter, I will assist Company in every proper way to obtain and enforce
United States and foreign Intellectual Property Rights relating to Company
Inventions in all countries.  In the event Company is unable to secure
my signature on any document needed in connection with such purposes, I hereby
irrevocably designate and appoint Company and its duly authorized officers and
agents as my agent and attorney in fact, which appointment is coupled with an
interest, to act on my behalf to execute and file any such documents and to do
all other lawfully permitted acts to further such purposes with the same legal
force and effect as if executed by me.

     

    3. Records.  I
agree to keep and maintain adequate and current records (in the form of notes,
sketches, drawings and in any other form that is required by Company) of all
Inventions made by me during the period of my employment by Company, which
records shall be available to, and remain the sole property of, Company at all
times.

     

    4. Additional
Activities.  I agree that (a)
during the term of my employment by Company, I will not, without Company’s
express written consent, engage in any employment or business activity that is
competitive with, or would otherwise conflict with my employment by, Company,
and (b) for the period of my employment by Company and for one (l) year
thereafter, I will not, either directly or indirectly, solicit or attempt to
solicit any employee, independent contractor, or consultant of Company to
terminate his, her or its relationship with Company in order to become an
employee, consultant, or independent contractor to or for any other person or
entity.

     

    5. Return Of
Company Property. Upon termination of my employment or upon Company’s
request at any other time, I will deliver to Company all of Company’s property,
equipment, and documents, together with all copies thereof, and any other
material containing or disclosing any Inventions, Third Party Information or
Confidential Information of Company and certify in writing that I have fully
complied with the foregoing obligation.  I agree that I will not copy,
delete, or alter any information contained upon my Company computer before I
return it to Company.  I further agree that any property situated on
Company’s premises and owned by Company is subject to inspection by Company
personnel at any time with or without notice.  Prior to leaving, I
will cooperate with Company in attending an exit interview and completing and
signing Company’s termination statement.

     

    6. Notification
Of New Employer.  In the event that
I leave the employ of Company, I hereby consent to the notification of my new
employer of my rights and obligations under this Agreement, by Company’s
providing a copy of this Agreement or otherwise.

     

    7. General
Provisions.

     

    7.1 Governing Law and
Venue.  This Agreement and any action related thereto will be
governed, controlled, interpreted, and defined by and under the laws of the
State of California, without giving effect to any conflicts of laws principles
that require the application of the law of a different state. I hereby
expressly consent to the personal jurisdiction and venue in the state and
federal courts for the county in which Company’s principal place of business is
located for any lawsuit filed there against me by Company arising from or
related to this Agreement.

     

    7.2 Severability.  If
any provision of this Agreement is, for any reason, held to be invalid or
unenforceable, the other provisions of this Agreement will be unimpaired and the
invalid or unenforceable provision will be deemed modified so that it is valid
and enforceable to the maximum extent permitted by law.

     

    7.3 Survival.  This
Agreement shall survive the termination of my employment and the assignment of
this Agreement by Company to any successor-in-interest or other assignee and be
binding upon my heirs and legal representatives.

     

    7.4 At-Will Employment. I agree
and understand that nothing in this Agreement shall confer any right with
respect to continuation of employment by Company, nor shall it interfere in any
way with my right or Company’s right to terminate my employment at any time,
with or without cause and with or without advance notice.

     

    7.5 Notices. Each party must
deliver all notices or other communications required or permitted under this
Agreement in writing to the other party at the address listed on the signature
page, by courier, by certified or registered mail (postage prepaid and return
receipt requested), or by a nationally-recognized express mail
service.  Notice will be effective upon receipt or refusal of
delivery.  If delivered by certified or registered mail, any such
notice will be considered to have been given five (5) business days after it was
mailed, as evidenced by the postmark.  If delivered by courier or
express mail service, any such notice shall be considered to have been given on
the delivery date reflected by the courier or express mail service receipt. Each
party may change its address for receipt of notice by giving notice of such
change to the other party.

     

    

    7.6 Injunctive Relief. I
acknowledge that, because my services are personal and unique and because I will
have access to the Confidential Information of Company, any breach of this
Agreement by me would cause irreparable injury to Company for which monetary
damages would not be an adequate remedy and, therefore, will entitle Company to
injunctive relief (including specific performance).  The rights and
remedies provided to each party in this Agreement are cumulative and in addition
to any other rights and remedies available to such party at law or in
equity.

     

    7.7 Waiver. Any waiver or failure
to enforce any provision of this Agreement on one occasion will not be deemed a
waiver of any other provision or of such provision on any other
occasion.

     

    7.8 Export. I agree not to export,
directly or indirectly, any U.S. technical data acquired from Company or any
products utilizing such data, to countries outside the United States, because
such export could be in violation of the United States export laws or
regulations.

     

    7.9 Entire
Agreement.  The obligations pursuant to sections of this
Agreement titled “Confidentiality” and “Inventions” shall apply to any time
during which I was previously employed, or am in the future employed, by Company
as an independent contractor if no other agreement governs nondisclosure and
assignment of inventions during such period.  This Agreement is the
final, complete and exclusive agreement of the parties with respect to the
subject matters hereof and supersedes and merges all prior communications
between us with respect to such matters.  No modification of or
amendment to this Agreement, or any waiver of any rights under this Agreement,
will be effective unless in writing and signed by me and the CEO of
Company.  Any subsequent change or changes in my duties, salary or
compensation will not affect the validity or scope of this
Agreement.

     

    This
Agreement shall be effective as of the first day of my employment with
Company.

     

    
      	
              EMPLOYEE:

              I
      acknowledge that I have read and understand this agreement and have been
      given the opportunity to discuss it with independent legal
      counsel.

               

              /s/
      Steven Gatoff

              (Signature)

               

              By:       Steven Gatoff

              Title:    SVP and
      CFO

              Date:    June 22,
      2009

              Address:
      

            	
              COMPANY:

              Accepted
      and agreed:

               

               

              /s/ Tiffany
      Snyder

              (Signature)

               

              By:       Tiffany
      Snyder

              Title:    Director,
      HR

              Date:    June 22,
      2009

              Address:   3800 Bridge
      Parkway

                      Redwood
      Shore, CA  94065

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    INVENTIONS

     

    1.           Prior Inventions
Disclosure.  The following is a complete list of all Prior
Inventions:

     

    þ None

     

    o See immediately
below:

     

    

     

    

     

    

     

    2.           Limited
Exclusion Notification.

     

    This is to
notify you in accordance with Section 2872 of the California Labor Code
that the foregoing Agreement between you and Company does not require you to
assign or offer to assign to Company any Invention that you develop entirely on
your own time without using Company’s equipment, supplies, facilities or trade
secret information, except for those Inventions that either:

     

    a.           Relate
at the time of conception or reduction to practice to Company’s business, or
actual or demonstrably anticipated research or development; or

     

    b.           Result
from any work performed by you for Company.

     

    To the
extent a provision in the foregoing Agreement purports to require you to assign
an Invention otherwise excluded from the preceding paragraph, the provision is
against the public policy of this state and is unenforceable.

     

    This
limited exclusion does not apply to any patent or Invention covered by a
contract between Company and the United States or any of its agencies requiring
full title to such patent or Invention to be in the United States.

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