Document:

exv10w21

 

Exhibit 10.21

Vice President Level and Above (excluding CEO)

iPass Inc. 

Restricted Stock Grant Notice

(2003 Equity Incentive Plan)

iPass Inc. (the “Company”), pursuant to Section 7(a) of the Company’s 2003 Equity Incentive Plan
(the “Plan”), hereby awards to Participant the right to acquire that number of shares of the
Company’s Common Stock set forth below (the “Award”). This Award shall be evidenced by a
Restricted Stock Award Agreement (the “Award Agreement”). This Award is subject to all of the
terms and conditions as set forth herein and in the applicable Award Agreement and the Plan, each
of which are attached hereto and incorporated herein in their entirety.

	 	 	 	 	 	 	 
	 

	 	Participant:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Date of Grant:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Vesting Commencement Date:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Number of Shares Subject to Award:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Payment for Common Stock:
	 	Participant’s services to the Company
	 	 

Vesting Schedule: The shares subject to the Award shall vest with respect to
1/4th of the shares on the date one year from the Vesting Commencement Date,
and with respect to the remaining shares in a series of three (3) equal annual installments over
the three (3)-year period measured from the first anniversary of the Vesting Commencement Date;
provided, however, that the Participant’s Continuous Service has not terminated prior to each such
vesting date. If shares subject to the Award vest on a day that does not occur during a “window
period,” vesting may be delayed as provided in Section 4 of the Award Agreement. In addition, in
the event that the Participant is a participant in any plans or arrangements of the Company with
respect to the acceleration of unvested options held by the Participant in certain circumstances
(“Acceleration Arrangements”), the vesting of the Award may be accelerated as set forth in such
Acceleration Arrangements .

Additional Terms/Acknowledgements: Participant acknowledges receipt of, and understands and agrees
to, this Restricted Stock Grant Notice, the Award Agreement, and the Plan. Participant further
acknowledges that as of the Date of Grant, this Restricted Stock Grant Notice, the Award Agreement
and the Plan (and, if applicable, any Acceleration Arrangements) set forth the entire understanding
between Participant and the Company regarding the acquisition of the Common Stock pursuant to the
Award specified above and supersede all prior oral and written agreements on that subject with the
exception of (i) Awards previously granted and delivered to Participant under the Plan, and (ii)
the following agreements only:

	 	 	 	 	 	 	 	 	 
	 

	 	Other Agreements:	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	iPass Inc.	 	 	 	Participant
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Signature	 	 	 	Signature
	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attachments: Restricted Stock Award Agreement, and 2003 Equity Incentive Plan

 

 

iPass Inc. 

2003 Equity Incentive Plan

Restricted Stock Award Agreement

     Pursuant to the Restricted Stock Grant Notice (“Grant Notice”) and this Restricted Stock Award
Agreement (“Agreement”), iPass Inc. (the “Company”) has awarded you (“Participant”) the right to
acquire shares of Common Stock from the Company pursuant to Section 7(a) of the Company’s 2003
Equity Incentive Plan (the “Plan”) for the number of shares indicated in the Grant Notice
(collectively, the “Award”). The Award is granted in exchange for past or future services to be
rendered by you to the Company or an Affiliate. In the event additional consideration is required
by law so that the Common Stock acquired under this Agreement is deemed fully paid and
nonassessable, the Board shall determine the amount and character of such additional consideration
to be paid. Defined terms not explicitly defined in this Agreement but defined in the Plan shall
have the same definitions as in the Plan.

     The details of your Award, in addition to those set forth in the Grant Notice, are as follows.

     1. Acquisition of Shares. By signing the Grant Notice, you hereby agree to acquire
from the Company, and the Company hereby agrees to issue to you, the aggregate number of shares of
Common Stock specified in your Grant Notice for the consideration set forth in Section 3 and
subject to all of the terms and conditions of the Award and the Plan. You may not acquire less
than the aggregate number of shares specified in the Grant Notice.

     2. Closing. Your acquisition of the shares shall be consummated as follows:

          (a) You will acquire the shares by delivering your Grant Notice, executed by you in the manner
required by the Company, to the Corporate Secretary of the Company, or to such other person as the
Company may designate, during regular business hours, on the date that you have executed the Grant
Notice (or at such other time and place as you and the Company may mutually agree upon in writing)
(the “Closing Date”) along with any consideration, other than your past or future services,
required to be delivered by you by law on the Closing Date and such additional documents as the
Company may then require.

          (b) The Company will direct the transfer agent for the Company to deliver to the Escrow Agent
pursuant to the terms of Section 9 below, the certificate or certificates evidencing the shares of
Common Stock being acquired by you. You acknowledge and agree that any such shares may be held in
book entry form directly registered with the transfer agent or in such other form as the Company
may determine.

     3. Consideration. Unless otherwise required by law, the shares of Common Stock to be
delivered to you on the Closing Date shall be deemed paid, in whole or in part in exchange for past
and future services to be rendered to the Company or an Affiliate in the amounts and to the extent
required by law.

 

 

     4. Vesting.

          (a) The shares will vest as provided in the Vesting Schedule set forth in your Grant Notice,
provided that vesting shall cease upon the termination of your Continuous Service. Notwithstanding
the foregoing, in the event that you are subject to the Company’s Stock Trading By Officers,
Directors, and Access Employees policy (or any successor policy) and any shares covered by your
Award vest on a day (the “Original Vest Date”) that does not occur during a “window period”
applicable to you as determined by the Company in accordance with such policy, then such shares
shall not vest on such Original Vest Date and shall instead vest on the earliest to occur of the
following: (i) the first day of the next “window period” applicable to you pursuant to such policy;
(ii) your Involuntary Termination Without Cause (as defined in Section 4(b) below) after the
Original Vest Date; or (iii) the day that is sixty (60) days after the Original Vest Date. Shares
acquired by you that have vested in accordance with the Vesting Schedule set forth in the Grant
Notice and this Section 4(a) or any other provision of the Plan are “Vested Shares.” Shares
acquired by you pursuant to this Agreement that are not Vested Shares are “Unvested Shares.”

          (b) For purposes of this Agreement, “Involuntary Termination Without Cause” shall mean the
Company’s termination of your Continuous Service unless such termination was on account of the
occurrence of any of the following: (i) your commission of any felony or any crime involving fraud,
dishonesty or moral turpitude; (ii) your attempted commission of, or participation in, a fraud or
act of dishonesty against the Company or an Affiliate; (iii) your intentional, material violation
of any material contract or agreement between you and the Company or an Affiliate or any statutory
duty owed to the Company or an Affiliate; (iv) your unauthorized use or disclosure of confidential
information or trade secrets of the Company or an Affiliate; or (v) your gross misconduct. The
determination that your Continuous Service was terminated due to an Involuntary Termination Without
Cause shall be made by the Company in its sole discretion. Any such determination by the Company
for the purposes of this Agreement shall have no effect upon any determination of the rights or
obligations of you or the Company for any other purpose.

     5. Right of Reacquisition. The Company shall simultaneously with the termination of
your Continuous Service automatically reacquire (the “Reacquisition Right”) for no consideration
all of the Unvested Shares, unless the Company agrees to waive its Reacquisition Right as to some
or all of the Unvested Shares. Any such waiver shall be exercised by the Company by written notice
to you or your representative (with a copy to the Escrow Agent, as defined below) within ninety
(90) days after the termination of your Continuous Service, and the Escrow Agent may then release
to you the number of Unvested Shares not being reacquired by the Company. If the Company does not
waive its reacquisition right as to all of the Unvested Shares, then upon such termination of your
Continuous Service, the Escrow Agent shall transfer to the Company the number of Unvested Shares
the Company is reacquiring. The Reacquisition Right shall expire when all of the shares have
become Vested Shares.

     6. Capitalization Changes. The number of shares of Common Stock subject to your
Award and referenced in your Grant Notice may be adjusted from time to time for changes in
capitalization pursuant to Section 11(a) of the Plan.

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     7. Certain Corporate Transactions. In the event of a Corporate Transaction as
defined in the Plan, the Reacquisition Right may be assigned by the Company to the successor of the
Company (or such successor’s parent corporation), if any, in connection with such transaction. To
the extent the Reacquisition Right remains in effect following such transaction, it shall apply to
the new capital stock or other property received in exchange for the Common Stock in consummation
of the transaction, but only to the extent the Common Stock was at the time covered by such right.

     8. Securities Law Compliance. You may not be issued any Common Stock under your
Award unless the shares of Common Stock are either (i) then registered under the Securities Act of
1933, as amended (the “Securities Act”), or (ii) the Company has determined that such issuance
would be exempt from the registration requirements of the Securities Act. Your Award must also
comply with other applicable laws and regulations governing the Award, and you shall not receive
such Common Stock if the Company determines that such receipt would not be in material compliance
with such laws and regulations.

     9. Escrow of Unvested Common Stock. As security for your faithful performance of the
terms of this Agreement and to insure the availability for delivery of your Common Stock upon
execution of the Reacquisition Right provided in Section 5, above, you agree to the following
“Joint Escrow” and “Joint Escrow Instructions,” and you and the Company hereby authorize and direct
the Corporate Secretary of the Company or the Corporate Secretary’s designee (“Escrow Agent”) to
hold the documents delivered to Escrow Agent pursuant to the terms of this Agreement and of your
Grant Notice, in accordance with the following Joint Escrow Instructions:

          (a) In the event you cease your Continuous Service, the Company shall pursuant to the
Reacquisition Right, automatically reacquire for no consideration all Unvested Shares, as of the
date of such termination, unless the Company elects to waive such right as to some or all of the
Unvested Shares. If the Company (or its assignee) elects to waive the Reacquisition Right, the
Company or its assignee will give you and Escrow Agent a written notice specifying the number of
shares of stock not to be reacquired. You and the Company hereby irrevocably authorize and direct
Escrow Agent to close the transaction contemplated by such notice as soon as practicable following
the date of termination of service in accordance with the terms of this Agreement and the notice of
waiver, if any.

          (b) Vested Shares shall be delivered to you upon your request given in the manner provided in
Section 19 for providing notice.

          (c) At any closing involving the transfer or delivery of some or all of the property subject
to the Grant Notice and this Agreement, Escrow Agent is directed (i) to date any stock assignments
necessary for the transfer in question, (ii) to fill in the number of shares being transferred, and
(iii) to deliver same, together with the certificate, if any, evidencing the shares of Common Stock
to be transferred, to you or the Company, as applicable.

          (d) You irrevocably authorize the Company to deposit with Escrow Agent the certificates, if
any, evidencing shares of Common Stock to be held by Escrow Agent hereunder and any additions and
substitutions to said shares as specified in this Agreement. You do hereby

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irrevocably constitute and appoint Escrow Agent as your attorney-in-fact and agent for the
term of this escrow to execute with respect to such securities and other property all documents of
assignment and/or transfer and all stock certificates necessary or appropriate to make all
securities negotiable and complete any transaction herein contemplated.

          (e) This escrow shall terminate upon the expiration or application in full of the
Reacquisition Right, whichever occurs first, and the completion of the tasks contemplated by these
Joint Escrow Instructions.

          (f) If at the time of termination of this escrow, Escrow Agent should have in its possession
any documents, securities, or other property belonging to you, Escrow Agent shall deliver all of
same to you and shall be discharged of all further obligations hereunder.

          (g) Except as otherwise provided in these Joint Escrow Instructions, Escrow Agent’s duties
hereunder may be altered, amended, modified, or revoked only by a writing signed by all of the
parties hereto.

          (h) Escrow Agent shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or refraining from
acting on any instrument reasonably believed by Escrow Agent to be genuine and to have been signed
or presented by the proper party or parties or their assignees. Escrow Agent shall not be
personally liable for any act Escrow Agent may do or omit to do hereunder as Escrow Agent or as
attorney-in-fact for you while acting in good faith and any act done or omitted by Escrow Agent
pursuant to the advice of Escrow Agent’s own attorneys shall be conclusive evidence of such good
faith.

          (i) Escrow Agent is hereby expressly authorized to disregard any and all warnings given by any
of the parties hereto or by any other person or corporation, excepting only orders or process of
courts of law, and is hereby expressly authorized to comply with and obey orders, judgments, or
decrees of any court. In case Escrow Agent obeys or complies with any such order, judgment, or
decree of any court, Escrow Agent shall not be liable to any of the parties hereto or to any other
person, firm, or corporation by reason of such compliance, notwithstanding any such order,
judgment, or decree being subsequently reversed, modified, annulled, set aside, vacated, or found
to have been entered without jurisdiction.

          (j) Escrow Agent shall not be liable in any respect on account of the identity, authority, or
rights of the parties executing or delivering or purporting to execute or deliver this Agreement or
any documents or papers deposited or called for hereunder.

          (k) Escrow Agent shall not be liable for the outlawing of any rights under any statute of
limitations with respect to these Joint Escrow Instructions or any documents deposited with Escrow
Agent.

          (l) Escrow Agent’s responsibilities as Escrow Agent hereunder shall terminate if Escrow Agent
shall cease to be the Secretary of the Company or if Escrow Agent shall resign by written notice to
each party. In the event of any such termination, the Company may appoint any officer or assistant
officer of the Company or other person who in the future assumes the position of Secretary for the
Company as successor Escrow Agent and you hereby

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confirm the appointment of such successor or successors as your attorney-in-fact and agent to
the full extent of such successor Escrow Agent’s appointment.

          (m) If Escrow Agent reasonably requires other or further instruments in connection with these
Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join
in furnishing such instruments.

          (n) It is understood and agreed that should any dispute arise with respect to the delivery
and/or ownership or right of possession of the securities, Escrow Agent is authorized and directed
to retain in its possession without liability to anyone all or any part of said securities until
such dispute shall have been settled either by mutual written agreement of the parties concerned or
by a final order, decree, or judgment of a court of competent jurisdiction after the time for
appeal has expired and no appeal has been perfected, but Escrow Agent shall be under no duty
whatsoever to institute or defend any such proceedings.

          (o) By signing this Agreement below Escrow Agent becomes a party hereto only for the purpose
of said Joint Escrow Instructions in this Section 9; Escrow Agent does not become a party to any
other rights and obligations of this Agreement apart from those in this Section 9.

          (p) Escrow Agent shall be entitled to employ such legal counsel and other experts as Escrow
Agent may deem necessary properly to advise Escrow Agent in connection with Escrow Agent’s
obligations hereunder. Escrow Agent may rely upon the advice of such counsel, and may pay such
counsel reasonable compensation therefor. The Company shall be responsible for all fees generated
by such legal counsel in connection with Escrow Agent’s obligations hereunder.

          (q) These Joint Escrow Instructions set forth in this Section 9 shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and permitted assigns.
It is understood and agreed that references to “Escrow Agent” or “Escrow Agent’s” herein refer to
the original Escrow Agent and to any and all successor Escrow Agents. It is understood and agreed
that the Company may at any time or from time to time assign its rights under the Agreement and
these Joint Escrow Instructions in whole or in part.

     10. Execution of Documents. You hereby acknowledge and agree that the manner
selected by the Company by which you indicate your consent to your Grant Notice is also deemed to
be your execution of your Grant Notice and of this Agreement. You further agree that such manner
of indicating consent may be relied upon as your signature for establishing your execution of any
documents to be executed in the future in connection with your Award.

     11. Irrevocable Power of Attorney.  You constitute and appoint the Company’s
Secretary as attorney-in-fact and agent to transfer said Common Stock on the books of the Company
with full power of substitution in the premises, and to execute with respect to such securities and
other property all documents of assignment and/or transfer and all stock certificates necessary or
appropriate to make all securities negotiable and complete any transaction herein contemplated.
This is a special power of attorney coupled with an interest

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(specifically, the Company’s underlying security interest in retaining the shares of Common
Stock in the event you do not perform the requisite services for the Company), and is irrevocable
and shall survive your death or legal incapacity. This power of attorney is limited to the matters
specified in this Agreement.

     12. Rights as Stockholder. Subject to the provisions of this Agreement, you shall
have the right to exercise all rights and privileges of a stockholder of the Company with respect
to the shares deposited in the Joint Escrow. You shall be deemed to be the holder of the
shares for purposes of receiving any dividends that may be paid with respect to such shares and for
purposes of exercising any voting rights relating to such shares, even if some or all of the shares
are Unvested Shares.

     13. Transfer Restrictions. In addition to any other limitation on transfer created
by applicable securities laws, you shall not sell, assign, hypothecate, donate, encumber, or
otherwise dispose of any interest in the Common Stock while such shares of Common Stock are
Unvested Shares or continue to be held in the Joint Escrow; provided, however, that an interest in
such shares may be transferred pursuant to a qualified domestic relations order as defined in the
Internal Revenue Code of 1986, as amended (the “Code”) or Title I of the Employee Retirement Income
Security Act of 1974, as amended. After any Common Stock has been released from the Joint Escrow,
you shall not sell, assign, hypothecate, donate, encumber, or otherwise dispose of any interest in
the Common Stock except in compliance with the provisions herein and applicable securities laws.
Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory
to the Company, you may designate a third party who, in the event of your death, shall thereafter
be entitled to receive any distribution of Common Stock pursuant to this Agreement.

     14. Non-transferability of the Award. Your Award (except for Vested Shares issued
pursuant thereto) is not transferable except by will or by the laws of descent and distribution.
In the event of the termination of your Continuous Service prior to the Closing Date, the closing
contemplated in this Agreement shall not occur.

     15. Restrictive Legends. The Common Stock issued under your Award shall be endorsed
with appropriate legends, if any, as determined by the Company.

     16. Award not a Service Contract. Your Award is not an employment or service
contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation
on your part to continue in the service of the Company or any Affiliate, or on the part of the
Company or any Affiliate to continue such service. In addition, nothing in your Award shall
obligate the Company or any Affiliate, their respective stockholders, boards of directors, or
employees to continue any relationship that you might have as an Employee or Consultant of the
Company or any Affiliate.

     17. Withholding Obligations. At the time your Award is granted, or at any time
thereafter as requested by the Company, you hereby authorize withholding from any amounts payable
to you, or otherwise agree to make adequate provision in cash for, any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or any Affiliate, if
any, which arise in connection with your Award. In the Company’s sole discretion,

6

 

the Company may elect, and you hereby authorize the Company, to withhold Vested Shares in such
amounts as the Company determines are necessary to satisfy your obligation pursuant to the
preceding sentence. Unless the tax withholding obligations of the Company and/or any Affiliate are
satisfied, the Company shall have no obligation to deliver to you any Common Stock.

     18. Tax Consequences. You agree to review with your own tax advisors the federal,
state, local and foreign tax consequences of this investment and the transactions contemplated by
this Agreement. You shall rely solely on such advisors and not on any statements or
representations of the Company or any of its agents. You understand that you (and not the Company)
shall be responsible for your own tax liability that may arise as a result of this investment or
the transactions contemplated by this Agreement. You understand that Section 83 of the Code taxes
as ordinary income to you the fair market value of the shares of Common Stock as of the date any
restrictions on the shares lapse (that is, as of the date on which part or all of the shares vest).
In this context, “restriction” includes the right of the Company to reacquire the shares pursuant
to its Reacquisition Right. You understand that you may elect to be taxed on the fair market value
of the shares at the time the shares are acquired rather than when and as the Company’s
Reacquisition Right expires by filing an election under Section 83(b) of the Code with the Internal
Revenue Service within thirty (30) days after the date you acquire the shares pursuant to your
Award. YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A
TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF YOU REQUEST THE COMPANY OR ITS REPRESENTATIVES TO
MAKE THE FILING ON YOUR BEHALF. You further acknowledge that you are aware that should you file an
election under Section 83(b) of the Code and then subsequently forfeit the shares, you will not be
able to report as a loss the value of any shares forfeited and will not get a refund of any of the
tax paid.

     19. Notices. Any notice or request required or permitted hereunder shall be given in
writing to each of the other parties hereto and shall be deemed effectively given on the earlier of
(i) the date of personal delivery, including delivery by express courier, or (ii) the date that is
five (5) days after deposit in the United States Post Office (whether or not actually received by
the addressee), by registered or certified mail with postage and fees prepaid, addressed at the
following addresses, or at such other address(es) as a party may designate by ten (10) days’
advance written notice to each of the other parties hereto:

	 	 	 	 	 
	 
	 	Company:	 	iPass Inc.
	 
	 	 	 	Attn: General Counsel
	 
	 	 	 	3800 Bridge Parkway
	 
	 	 	 	Redwood Shores, California 94065
	 
	 	 	 	 
	 
	 	Participant:	 	Your address as on file with the Company
	 
	 	 	 	at the time notice is given
	 
	 	 	 	 
	 
	 	Escrow Agent:	 	iPass Inc.
	 
	 	 	 	Attn: Corporate Secretary
	 
	 	 	 	3800 Bridge Parkway
	 
	 	 	 	Redwood Shores, California 94065

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     20. Headings. The headings of the Sections in this Agreement are inserted for
convenience only and shall not be deemed to constitute a part of this Agreement or to affect the
meaning of this Agreement.

     21. Miscellaneous.

          (a) The rights and obligations of the Company under your Award shall be transferable by the
Company to any one or more persons or entities, and all covenants and agreements hereunder shall
inure to the benefit of, and be enforceable by, the Company’s successors and assigns.

          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.

          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully
understand all provisions of your Award.

          (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

          (e) All obligations of the Company under the Plan and this Agreement shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

     22. Governing Plan Document. Your Award is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award
and those of the Plan, the provisions of the Plan shall control.

     23. Effect on Other Employee Benefit Plans. The value of the Award subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating benefits under any employee benefit plan (other than the Plan) sponsored by the
Company or any Affiliate except as such plan otherwise expressly provides. The Company expressly
reserves its rights to amend, modify, or terminate any or all of the employee benefit plans of the
Company or any Affiliate.

     24. Choice of Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the law of the state of California without regard to such state’s conflicts of
laws rules.

     25. Severability. If all or any part of this Agreement or the Plan is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or
invalid.

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Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid shall, if possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining lawful and valid.

     26. Other Documents. You hereby acknowledge receipt or the right to receive a
document providing the information required by Rule 428(b)(1) promulgated under the Securities Act.
In addition, you acknowledge receipt of the Company’s Policy Against Trading on the Basis of
Inside Information.

* * * * *

     This Restricted Stock Award Agreement shall be deemed to be signed by the Company and the
Participant upon the signing by the Participant of the Restricted Stock Grant Notice to which it is
attached.

     The Escrow Agent hereby acknowledges and accepts its rights and responsibilities pursuant to
Section 9, above.

                                                            

Escrow Agent

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iPass Inc.

2003 Equity Incentive Plan 

Below Vice President Level

iPass Inc. 

Restricted Stock Grant Notice

(2003 Equity Incentive Plan)

iPass Inc. (the “Company”), pursuant to Section 7(a) of the Company’s 2003 Equity Incentive Plan
(the “Plan”), hereby awards to Participant the right to acquire that number of shares of the
Company’s Common Stock set forth below (the “Award”). This Award shall be evidenced by a
Restricted Stock Award Agreement (the “Award Agreement”). This Award is subject to all of the
terms and conditions as set forth herein and in the applicable Award Agreement and the Plan, each
of which are attached hereto and incorporated herein in their entirety.

	 	 	 	 	 	 	 
	 

	 	Participant:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Date of Grant:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Vesting Commencement Date:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Number of Shares Subject to Award:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Payment for Common Stock:
	 	Participant’s services to the Company
	 	 

Vesting Schedule: The shares subject to the Award shall vest with respect to
1/4th of the shares on the date one year from the Vesting Commencement Date,
and with respect to the remaining shares in a series of three (3) equal annual installments over
the three (3)-year period measured from the first anniversary of the Vesting Commencement Date;
provided, however, that the Participant’s Continuous Service has not terminated prior to each such
vesting date. If shares subject to the Award vest on a day that does not occur during a “window
period,” vesting may be delayed as provided in Section 4 of the Award Agreement.

Additional Terms/Acknowledgements: Participant acknowledges receipt of, and understands and agrees
to, this Restricted Stock Grant Notice, the Award Agreement, and the Plan. Participant further
acknowledges that as of the Date of Grant, this Restricted Stock Grant Notice, the Award Agreement
and the Plan set forth the entire understanding between Participant and the Company regarding the
acquisition of the Common Stock pursuant to the Award specified above and supersede all prior oral
and written agreements on that subject with the exception of (i) Awards previously granted and
delivered to Participant under the Plan, and (ii) the following agreements only:

	 	 	 	 	 	 	 	 	 
	 

	 	Other Agreements:	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	iPass Inc.	 	 	 	Participant
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Signature	 	 	 	Signature
	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attachments: Restricted Stock Award Agreement, and 2003 Equity Incentive Plan

 

 

iPass Inc. 

2003 Equity Incentive Plan

Restricted Stock Award Agreement

     Pursuant to the Restricted Stock Grant Notice (“Grant Notice”) and this Restricted Stock Award
Agreement (“Agreement”), iPass Inc. (the “Company”) has awarded you (“Participant”) the right to
acquire shares of Common Stock from the Company pursuant to Section 7(a) of the Company’s 2003
Equity Incentive Plan (the “Plan”) for the number of shares indicated in the Grant Notice
(collectively, the “Award”). The Award is granted in exchange for past or future services to be
rendered by you to the Company or an Affiliate. In the event additional consideration is required
by law so that the Common Stock acquired under this Agreement is deemed fully paid and
nonassessable, the Board shall determine the amount and character of such additional consideration
to be paid. Defined terms not explicitly defined in this Agreement but defined in the Plan shall
have the same definitions as in the Plan.

     The details of your Award, in addition to those set forth in the Grant Notice, are as follows.

     27. Acquisition of Shares. By signing the Grant Notice, you hereby agree to acquire
from the Company, and the Company hereby agrees to issue to you, the aggregate number of shares of
Common Stock specified in your Grant Notice for the consideration set forth in Section 3 and
subject to all of the terms and conditions of the Award and the Plan. You may not acquire less
than the aggregate number of shares specified in the Grant Notice.

     28. Closing. Your acquisition of the shares shall be consummated as follows:

          (a) You will acquire the shares by delivering your Grant Notice, executed by you in the manner
required by the Company, to the Corporate Secretary of the Company, or to such other person as the
Company may designate, during regular business hours, on the date that you have executed the Grant
Notice (or at such other time and place as you and the Company may mutually agree upon in writing)
(the “Closing Date”) along with any consideration, other than your past or future services,
required to be delivered by you by law on the Closing Date and such additional documents as the
Company may then require.

          (b) The Company will direct the transfer agent for the Company to deliver to the Escrow Agent
pursuant to the terms of Section 9 below, the certificate or certificates evidencing the shares of
Common Stock being acquired by you. You acknowledge and agree that any such shares may be held in
book entry form directly registered with the transfer agent or in such other form as the Company
may determine.

     29. Consideration. Unless otherwise required by law, the shares of Common Stock to
be delivered to you on the Closing Date shall be deemed paid, in whole or in part in exchange for
past and future services to be rendered to the Company or an Affiliate in the amounts and to the
extent required by law.

 

 

     30. Vesting.

          (a) The shares will vest as provided in the Vesting Schedule set forth in your Grant Notice,
provided that vesting shall cease upon the termination of your Continuous Service. Notwithstanding
the foregoing, in the event that you are subject to the Company’s Stock Trading By Officers,
Directors, and Access Employees policy (or any successor policy) and any shares covered by your
Award vest on a day (the “Original Vest Date”) that does not occur during a “window period”
applicable to you as determined by the Company in accordance with such policy, then such shares
shall not vest on such Original Vest Date and shall instead vest on the earliest to occur of the
following: (i) the first day of the next “window period” applicable to you pursuant to such policy;
(ii) your Involuntary Termination Without Cause (as defined in Section 4(b) below) after the
Original Vest Date; or (iii) the day that is sixty (60) days after the Original Vest Date. Shares
acquired by you that have vested in accordance with the Vesting Schedule set forth in the Grant
Notice and this Section 4(a) or any other provision of the Plan are “Vested Shares.” Shares
acquired by you pursuant to this Agreement that are not Vested Shares are “Unvested Shares.”

          (b) For purposes of this Agreement, “Involuntary Termination Without Cause” shall mean the
Company’s termination of your Continuous Service unless such termination was on account of the
occurrence of any of the following: (i) your commission of any felony or any crime involving fraud,
dishonesty or moral turpitude; (ii) your attempted commission of, or participation in, a fraud or
act of dishonesty against the Company or an Affiliate; (iii) your intentional, material violation
of any material contract or agreement between you and the Company or an Affiliate or any statutory
duty owed to the Company or an Affiliate; (iv) your unauthorized use or disclosure of confidential
information or trade secrets of the Company or an Affiliate; or (v) your gross misconduct. The
determination that your Continuous Service was terminated due to an Involuntary Termination Without
Cause shall be made by the Company in its sole discretion. Any such determination by the Company
for the purposes of this Agreement shall have no effect upon any determination of the rights or
obligations of you or the Company for any other purpose.

     31. Right of Reacquisition. The Company shall simultaneously with the termination of
your Continuous Service automatically reacquire (the “Reacquisition Right”) for no consideration
all of the Unvested Shares, unless the Company agrees to waive its Reacquisition Right as to some
or all of the Unvested Shares. Any such waiver shall be exercised by the Company by written notice
to you or your representative (with a copy to the Escrow Agent, as defined below) within ninety
(90) days after the termination of your Continuous Service, and the Escrow Agent may then release
to you the number of Unvested Shares not being reacquired by the Company. If the Company does not
waive its reacquisition right as to all of the Unvested Shares, then upon such termination of your
Continuous Service, the Escrow Agent shall transfer to the Company the number of Unvested Shares
the Company is reacquiring. The Reacquisition Right shall expire when all of the shares have
become Vested Shares.

     32. Capitalization Changes. The number of shares of Common Stock subject to your
Award and referenced in your Grant Notice may be adjusted from time to time for changes in
capitalization pursuant to Section 11(a) of the Plan.

2

 

     33. Certain Corporate Transactions. In the event of a Corporate Transaction as
defined in the Plan, the Reacquisition Right may be assigned by the Company to the successor of the
Company (or such successor’s parent corporation), if any, in connection with such transaction. To
the extent the Reacquisition Right remains in effect following such transaction, it shall apply to
the new capital stock or other property received in exchange for the Common Stock in consummation
of the transaction, but only to the extent the Common Stock was at the time covered by such right.

     34. Securities Law Compliance. You may not be issued any Common Stock under your
Award unless the shares of Common Stock are either (i) then registered under the Securities Act of
1933, as amended (the “Securities Act”), or (ii) the Company has determined that such issuance
would be exempt from the registration requirements of the Securities Act. Your Award must also
comply with other applicable laws and regulations governing the Award, and you shall not receive
such Common Stock if the Company determines that such receipt would not be in material compliance
with such laws and regulations.

     35. Escrow of Unvested Common Stock. As security for your faithful performance of
the terms of this Agreement and to insure the availability for delivery of your Common Stock upon
execution of the Reacquisition Right provided in Section 5, above, you agree to the following
“Joint Escrow” and “Joint Escrow Instructions,” and you and the Company hereby authorize and direct
the Corporate Secretary of the Company or the Corporate Secretary’s designee (“Escrow Agent”) to
hold the documents delivered to Escrow Agent pursuant to the terms of this Agreement and of your
Grant Notice, in accordance with the following Joint Escrow Instructions:

          (r) In the event you cease your Continuous Service, the Company shall pursuant to the
Reacquisition Right, automatically reacquire for no consideration all Unvested Shares, as of the
date of such termination, unless the Company elects to waive such right as to some or all of the
Unvested Shares. If the Company (or its assignee) elects to waive the Reacquisition Right, the
Company or its assignee will give you and Escrow Agent a written notice specifying the number of
shares of stock not to be reacquired. You and the Company hereby irrevocably authorize and direct
Escrow Agent to close the transaction contemplated by such notice as soon as practicable following
the date of termination of service in accordance with the terms of this Agreement and the notice of
waiver, if any.

          (s) Vested Shares shall be delivered to you upon your request given in the manner provided in
Section 19 for providing notice.

          (t) At any closing involving the transfer or delivery of some or all of the property subject
to the Grant Notice and this Agreement, Escrow Agent is directed (i) to date any stock assignments
necessary for the transfer in question, (ii) to fill in the number of shares being transferred, and
(iii) to deliver same, together with the certificate, if any, evidencing the shares of Common Stock
to be transferred, to you or the Company, as applicable.

          (u) You irrevocably authorize the Company to deposit with Escrow Agent the certificates, if
any, evidencing shares of Common Stock to be held by Escrow Agent hereunder and any additions and
substitutions to said shares as specified in this Agreement. You do hereby

3

 

irrevocably constitute and appoint Escrow Agent as your attorney-in-fact and agent for the
term of this escrow to execute with respect to such securities and other property all documents of
assignment and/or transfer and all stock certificates necessary or appropriate to make all
securities negotiable and complete any transaction herein contemplated.

          (v) This escrow shall terminate upon the expiration or application in full of the
Reacquisition Right, whichever occurs first, and the completion of the tasks contemplated by these
Joint Escrow Instructions.

          (w) If at the time of termination of this escrow, Escrow Agent should have in its possession
any documents, securities, or other property belonging to you, Escrow Agent shall deliver all of
same to you and shall be discharged of all further obligations hereunder.

          (x) Except as otherwise provided in these Joint Escrow Instructions, Escrow Agent’s duties
hereunder may be altered, amended, modified, or revoked only by a writing signed by all of the
parties hereto.

          (y) Escrow Agent shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or refraining from
acting on any instrument reasonably believed by Escrow Agent to be genuine and to have been signed
or presented by the proper party or parties or their assignees. Escrow Agent shall not be
personally liable for any act Escrow Agent may do or omit to do hereunder as Escrow Agent or as
attorney-in-fact for you while acting in good faith and any act done or omitted by Escrow Agent
pursuant to the advice of Escrow Agent’s own attorneys shall be conclusive evidence of such good
faith.

          (z) Escrow Agent is hereby expressly authorized to disregard any and all warnings given by any
of the parties hereto or by any other person or corporation, excepting only orders or process of
courts of law, and is hereby expressly authorized to comply with and obey orders, judgments, or
decrees of any court. In case Escrow Agent obeys or complies with any such order, judgment, or
decree of any court, Escrow Agent shall not be liable to any of the parties hereto or to any other
person, firm, or corporation by reason of such compliance, notwithstanding any such order,
judgment, or decree being subsequently reversed, modified, annulled, set aside, vacated, or found
to have been entered without jurisdiction.

          (aa) Escrow Agent shall not be liable in any respect on account of the identity, authority, or
rights of the parties executing or delivering or purporting to execute or deliver this Agreement or
any documents or papers deposited or called for hereunder.

          (bb) Escrow Agent shall not be liable for the outlawing of any rights under any statute of
limitations with respect to these Joint Escrow Instructions or any documents deposited with Escrow
Agent.

          (cc) Escrow Agent’s responsibilities as Escrow Agent hereunder shall terminate if Escrow Agent
shall cease to be the Secretary of the Company or if Escrow Agent shall resign by written notice to
each party. In the event of any such termination, the Company may appoint any officer or assistant
officer of the Company or other person who in the future assumes the position of Secretary for the
Company as successor Escrow Agent and you hereby

4

 

confirm the appointment of such successor or successors as your attorney-in-fact and agent to
the full extent of such successor Escrow Agent’s appointment.

          (dd) If Escrow Agent reasonably requires other or further instruments in connection with these
Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join
in furnishing such instruments.

          (ee) It is understood and agreed that should any dispute arise with respect to the delivery
and/or ownership or right of possession of the securities, Escrow Agent is authorized and directed
to retain in its possession without liability to anyone all or any part of said securities until
such dispute shall have been settled either by mutual written agreement of the parties concerned or
by a final order, decree, or judgment of a court of competent jurisdiction after the time for
appeal has expired and no appeal has been perfected, but Escrow Agent shall be under no duty
whatsoever to institute or defend any such proceedings.

          (ff) By signing this Agreement below Escrow Agent becomes a party hereto only for the purpose
of said Joint Escrow Instructions in this Section 9; Escrow Agent does not become a party to any
other rights and obligations of this Agreement apart from those in this Section 9.

          (gg) Escrow Agent shall be entitled to employ such legal counsel and other experts as Escrow
Agent may deem necessary properly to advise Escrow Agent in connection with Escrow Agent’s
obligations hereunder. Escrow Agent may rely upon the advice of such counsel, and may pay such
counsel reasonable compensation therefor. The Company shall be responsible for all fees generated
by such legal counsel in connection with Escrow Agent’s obligations hereunder.

          (hh) These Joint Escrow Instructions set forth in this Section 9 shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and permitted assigns.
It is understood and agreed that references to “Escrow Agent” or “Escrow Agent’s” herein refer to
the original Escrow Agent and to any and all successor Escrow Agents. It is understood and agreed
that the Company may at any time or from time to time assign its rights under the Agreement and
these Joint Escrow Instructions in whole or in part.

     36. Execution of Documents. You hereby acknowledge and agree that the manner
selected by the Company by which you indicate your consent to your Grant Notice is also deemed to
be your execution of your Grant Notice and of this Agreement. You further agree that such manner
of indicating consent may be relied upon as your signature for establishing your execution of any
documents to be executed in the future in connection with your Award.

     37. Irrevocable Power of Attorney.  You constitute and appoint the Company’s
Secretary as attorney-in-fact and agent to transfer said Common Stock on the books of the Company
with full power of substitution in the premises, and to execute with respect to such securities and
other property all documents of assignment and/or transfer and all stock certificates necessary or
appropriate to make all securities negotiable and complete any transaction herein contemplated.
This is a special power of attorney coupled with an interest

5

 

(specifically, the Company’s underlying security interest in retaining the shares of Common
Stock in the event you do not perform the requisite services for the Company), and is irrevocable
and shall survive your death or legal incapacity. This power of attorney is limited to the matters
specified in this Agreement.

     38. Rights as Stockholder. Subject to the provisions of this Agreement, you shall
have the right to exercise all rights and privileges of a stockholder of the Company with respect
to the shares deposited in the Joint Escrow. You shall be deemed to be the holder of the
shares for purposes of receiving any dividends that may be paid with respect to such shares and for
purposes of exercising any voting rights relating to such shares, even if some or all of the shares
are Unvested Shares.

     39. Transfer Restrictions. In addition to any other limitation on transfer created
by applicable securities laws, you shall not sell, assign, hypothecate, donate, encumber, or
otherwise dispose of any interest in the Common Stock while such shares of Common Stock are
Unvested Shares or continue to be held in the Joint Escrow; provided, however, that an interest in
such shares may be transferred pursuant to a qualified domestic relations order as defined in the
Internal Revenue Code of 1986, as amended (the “Code”) or Title I of the Employee Retirement Income
Security Act of 1974, as amended. After any Common Stock has been released from the Joint Escrow,
you shall not sell, assign, hypothecate, donate, encumber, or otherwise dispose of any interest in
the Common Stock except in compliance with the provisions herein and applicable securities laws.
Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory
to the Company, you may designate a third party who, in the event of your death, shall thereafter
be entitled to receive any distribution of Common Stock pursuant to this Agreement.

     40. Non-transferability of the Award. Your Award (except for Vested Shares issued
pursuant thereto) is not transferable except by will or by the laws of descent and distribution.
In the event of the termination of your Continuous Service prior to the Closing Date, the closing
contemplated in this Agreement shall not occur.

     41. Restrictive Legends. The Common Stock issued under your Award shall be endorsed
with appropriate legends, if any, as determined by the Company.

     42. Award not a Service Contract. Your Award is not an employment or service
contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation
on your part to continue in the service of the Company or any Affiliate, or on the part of the
Company or any Affiliate to continue such service. In addition, nothing in your Award shall
obligate the Company or any Affiliate, their respective stockholders, boards of directors, or
employees to continue any relationship that you might have as an Employee or Consultant of the
Company or any Affiliate.

     43. Withholding Obligations. At the time your Award is granted, or at any time
thereafter as requested by the Company, you hereby authorize withholding from any amounts payable
to you, or otherwise agree to make adequate provision in cash for, any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or any Affiliate, if
any, which arise in connection with your Award. In the Company’s sole discretion,

6

 

the Company may elect, and you hereby authorize the Company, to withhold Vested Shares in such
amounts as the Company determines are necessary to satisfy your obligation pursuant to the
preceding sentence. Unless the tax withholding obligations of the Company and/or any Affiliate are
satisfied, the Company shall have no obligation to deliver to you any Common Stock.

     44. Tax Consequences. You agree to review with your own tax advisors the federal,
state, local and foreign tax consequences of this investment and the transactions contemplated by
this Agreement. You shall rely solely on such advisors and not on any statements or
representations of the Company or any of its agents. You understand that you (and not the Company)
shall be responsible for your own tax liability that may arise as a result of this investment or
the transactions contemplated by this Agreement. You understand that Section 83 of the Code taxes
as ordinary income to you the fair market value of the shares of Common Stock as of the date any
restrictions on the shares lapse (that is, as of the date on which part or all of the shares vest).
In this context, “restriction” includes the right of the Company to reacquire the shares pursuant
to its Reacquisition Right. You understand that you may elect to be taxed on the fair market value
of the shares at the time the shares are acquired rather than when and as the Company’s
Reacquisition Right expires by filing an election under Section 83(b) of the Code with the Internal
Revenue Service within thirty (30) days after the date you acquire the shares pursuant to your
Award. YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A
TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF YOU REQUEST THE COMPANY OR ITS REPRESENTATIVES TO
MAKE THE FILING ON YOUR BEHALF. You further acknowledge that you are aware that should you file an
election under Section 83(b) of the Code and then subsequently forfeit the shares, you will not be
able to report as a loss the value of any shares forfeited and will not get a refund of any of the
tax paid.

     45. Notices. Any notice or request required or permitted hereunder shall be given in
writing to each of the other parties hereto and shall be deemed effectively given on the earlier of
(i) the date of personal delivery, including delivery by express courier, or (ii) the date that is
five (5) days after deposit in the United States Post Office (whether or not actually received by
the addressee), by registered or certified mail with postage and fees prepaid, addressed at the
following addresses, or at such other address(es) as a party may designate by ten (10) days’
advance written notice to each of the other parties hereto:

	 	 	 	 	 
	 
	 	Company:	 	iPass Inc.
	 
	 	 	 	Attn: General Counsel
	 
	 	 	 	3800 Bridge Parkway
	 
	 	 	 	Redwood Shores, California 94065
	 
	 	 	 	 
	 
	 	Participant:	 	Your address as on file with the Company
	 
	 	 	 	at the time notice is given
	 
	 	 	 	 
	 
	 	Escrow Agent:	 	iPass Inc.
	 
	 	 	 	Attn: Corporate Secretary
	 
	 	 	 	3800 Bridge Parkway
	 
	 	 	 	Redwood Shores, California 94065

7

 

     46. Headings. The headings of the Sections in this Agreement are inserted for
convenience only and shall not be deemed to constitute a part of this Agreement or to affect the
meaning of this Agreement.

     47. Miscellaneous.

          (a) The rights and obligations of the Company under your Award shall be transferable by the
Company to any one or more persons or entities, and all covenants and agreements hereunder shall
inure to the benefit of, and be enforceable by, the Company’s successors and assigns.

          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.

          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully
understand all provisions of your Award.

          (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

          (e) All obligations of the Company under the Plan and this Agreement shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

     48. Governing Plan Document. Your Award is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award
and those of the Plan, the provisions of the Plan shall control.

     49. Effect on Other Employee Benefit Plans. The value of the Award subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating benefits under any employee benefit plan (other than the Plan) sponsored by the
Company or any Affiliate except as such plan otherwise expressly provides. The Company expressly
reserves its rights to amend, modify, or terminate any or all of the employee benefit plans of the
Company or any Affiliate.

     50. Choice of Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the law of the state of California without regard to such state’s conflicts of
laws rules.

     51. Severability. If all or any part of this Agreement or the Plan is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or
invalid.

8

 

Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid shall, if possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining lawful and valid.

     52. Other Documents. You hereby acknowledge receipt or the right to receive a
document providing the information required by Rule 428(b)(1) promulgated under the Securities Act.
In addition, you acknowledge receipt of the Company’s Policy Against Trading on the Basis of
Inside Information.

* * * * *

     This Restricted Stock Award Agreement shall be deemed to be signed by the Company and the
Participant upon the signing by the Participant of the Restricted Stock Grant Notice to which it is
attached.

     The Escrow Agent hereby acknowledges and accepts its rights and responsibilities pursuant to
Section 9, above.

                                                            

Escrow Agent

9Exhibit 10.1

RENAISSANCE LEARNING, INC.

RESTRICTED STOCK AGREEMENT

[For use with grants to non-employee directors]

This Restricted Stock Agreement (this “Agreement”), entered into as of “Date,” is between Renaissance Learning, Inc., a Wisconsin corporation (the “Company”), and “Name” (the “Participant”).

W I T N E S S E T H:

WHEREAS, the Board of Directors of the Company has established the 1997 Stock Incentive Plan (the “Plan”) for employees and non-employee directors of the Company and its affiliates; and

WHEREAS, the Company anticipates that the Plan will promote the best interests of the Company and its shareholders (i) by providing participants with an opportunity to acquire a proprietary interest in the Company thereby providing them with a stronger incentive to strive for the continued success and growth of the Company, and (ii) by aiding the Company to attract and retain key personnel and non-employee directors; and

WHEREAS, the Company has granted to the Participant the right to participate in the Plan in the manner and subject to the terms provided in this Agreement and the Plan.

NOW, THEREFORE, in consideration of the benefits that the Company expects to be derived in connection with the services to be hereafter rendered to it or its affiliates by the Participant, the Company and the Participant hereby agree as follows:

1.  Provisions of Plan Control.  This Agreement shall be governed by the provisions of the Plan, the terms and conditions of which are incorporated herein by reference.  The Plan empowers the Compensation Committee to make and amend interpretations, rules and regulations thereunder, and, in general, provides that determinations of such Committee with respect to the Plan shall be binding upon the Participant.  Unless otherwise provided herein, all capitalized words in this Agreement shall have the meaning ascribed to them in the Plan.  A copy of the Plan will be delivered to the Participant upon reasonable request.

2.  Award; Number of Shares; Award Price.  The Participant is hereby awarded the number of shares of Restricted Stock set forth on the Appendix or Appendices hereto pursuant to the terms and conditions set forth in this Agreement (the “Award”).

3.  Vesting. The Award shall vest in accordance with the schedule set forth on the Appendix or Appendices hereto. Once vested, all rights of actual and beneficial ownership are conferred to the Participant.  The Participant shall be entitled to voting rights with respect to the shares of Restricted Stock granted hereby and shall be entitled to receive any dividends that become payable with respect to such shares of Restricted Stock.

4.  Termination of Tenure as a Director Due to Death.  If the Participant’s tenure as a Director of the Company terminates due to death, any unvested Restricted Stock held by the Participant shall immediately vest, all restrictions applicable to any such Restricted Stock shall immediately lapse and such Restricted Stock shall be distributed in accordance with Section 12(c) of the Plan.

5.  Prohibitions Against Transfer.  An Award, and the rights and privileges conferred hereby, may not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) by the Participant, or be subject to execution, attachment or similar process, until vested, except as provided in Section 12(c) of the Plan and the Appendix or Appendices hereto.

6.  Notices.  Any notice to be given to the Company under the terms of this Agreement shall be given in writing to the Company in care of its Secretary at 2911 Peach Street, Wisconsin Rapids, Wisconsin 54495-8036.  Any notice to be given to the Participant may be addressed to the Participant at the address as it appears on the payroll records of the Company or any affiliate thereof.  Any such notice shall be deemed to have been duly given if and when actually received by the party to whom it is addressed, as evidenced by a written receipt to that effect.

7.  Taxes. The Company may require payment or reimbursement of, or may withhold, any tax that it believes is required to be paid by the Participant under applicable federal, state, local or other law, regulation or ruling as a result of the grant or vesting of an Award, or any payments in connection with an Award, and the Company may defer making delivery of any shares of Common Stock in respect of any Award until arrangements satisfactory to the Company have been made with respect to any such payment, reimbursement or withholding obligations.

IN WITNESS WHEREOF, the Company has caused these presents to be executed as of the date and year first above written, which is the date of the granting of the Award evidenced hereby.

RENAISSANCE LEARNING, INC.

By:

____________________________________

Terrance D. Paul, Chief Executive Officer

The undersigned Participant hereby accepts the foregoing Award and agrees (i) to the several terms and conditions hereof and of the Plan and (ii) that the terms and conditions of this Agreement shall apply to all Appendices hereto.

______________________________________

“Participant Name”

2

APPENDIX [A]

Participant:  “Name”

Date of Grant:  “Date”

		
	Number of Shares of Restricted Stock

	Grant Price

	

	 

The shares of restricted stock referenced above will vest in accordance with the following schedule:

		
	Vesting Dates

	Number of Shares

	The Award shall vest in full on the date of termination of your tenure as a Director

	 

________________________________________

“Participant Name”

A-1

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