Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.3

January 7, 2008

			
	 	 	 
	{NAME}
	 	PERSONAL AND
	{ADDRESS}
	 	CONFIDENTIAL

Dear

Newpark Resources, Inc., a Delaware corporation (“Newpark”), considers you a valuable
executive, and the Board of Directors (the “Board”) has authorized certain actions to reinforce and
encourage your attention and dedication to your duties without distraction if Newpark should become
the target of a hostile takeover attempt or enter into negotiations that could lead to a change in
control of Newpark.

This letter (the “Agreement”) sets forth the understanding between you and Newpark concerning
the continuation of your employment in connection with a “Change in Control” or “Potential Change
in Control” and the “Termination Benefit” you will receive if your employment with Newpark is
terminated by Newpark without “Cause” or by you for “Good Reason” during an “Employment Period,” as
those terms are defined in Annex A attached to this letter.

This Agreement is entered into with the understanding between you and Newpark that you will
have knowledge or otherwise be notified of a Change in Control or Potential Change in Control, or
the termination thereof, at the time it occurs.

1. Definitions. Capitalized terms used in this Agreement are defined in Annex A attached
hereto and hereby incorporated into this Agreement by reference.

2. Consideration; Termination During Employment Period.

2.1 Subject to the terms and conditions of this Agreement, you agree that you will not resign
from Newpark during an Employment Period except for Good Reason.

2.2 If your employment with Newpark is terminated during an Employment Period, Newpark shall
pay you the Termination Benefit, unless such termination is (a) because of your death, (b) because
of your failure to resume full-time performance of your duties after the end of a Disability
Period, (c) by Newpark for Cause or (d) by your resignation other than for Good Reason.

2.3 If your employment with Newpark is terminated by Newpark during an Employment Period for
Cause, Newpark shall give you written notice of termination specifying the facts and circumstances
constituting such Cause.

3. Compensation Upon Termination or During Disability.

3.1 During any Disability Period occurring during an Employment Period, you shall continue to
receive your full base salary at the rate then in effect, unless and until your employment is
terminated.

 

 

 

{NAME}

January 7, 2008

Page 2

3.2 If your employment is terminated by Newpark for Cause, Newpark shall pay you your full
base salary at the rate then in effect through the date of termination, together with any severance
pay, vacation pay and sick leave pay to which you are entitled in accordance with Newpark policy.
Neither this provision nor any payment made by Newpark in accordance herewith shall constitute
waiver of Newpark’s right to recover from you any damages caused by your conduct which constituted
Cause for such termination and any similar conduct.

3.3 If you become entitled to the Termination Benefit in accordance with Paragraph 2.2, you
shall receive, in addition to the Termination Benefit, your full base salary at the rate then in
effect through the date of termination, plus a pro-rated annual bonus through the date of
termination. The Termination Benefit shall be in lieu of any severance pay, vacation pay and sick
leave pay to which you would otherwise be entitled in accordance with Newpark policy.

3.4 If you become entitled to the Termination Benefit in accordance with Paragraph 2.2, all
unexpired unexercised stock options (“Options”), if any, granted to you prior to a Change in
Control under any stock option plan of Newpark or otherwise, shall become exercisable in full on
the day preceding the date of termination, whether or not they would have been fully exercisable
but for this provision, and shall remain exercisable during their original exercise period or for a
period of three (3) years from the date of termination whichever is the shorter, whether or not
they would remain exercisable for such period but for this provision.

3.5 If you become entitled to the Termination Benefit in accordance with Paragraph 2.2, all
unvested shares of restricted stock and all deferred compensation amounts, including restricted
stock or deferred compensation subject to vesting based on time or achieving performance criteria,
if any, granted or awarded to you prior to a Change in Control under any stock plan or deferred
compensation plan of Newpark or otherwise, shall become vested in full on the day preceding the
date of termination and all restrictions thereon shall lapse, whether or not they would have been
vested in full but for this provision. Newpark shall promptly deliver all such shares to you, and
all such deferred compensation shall be paid to you in a lump sum on the date of termination.

3.6 If you become entitled to the Termination Benefit in accordance with Paragraph 2.2,
Newpark shall continue to provide you and your eligible family members, based on the cost sharing
arrangement between you and Newpark on the date of termination, with life insurance, medical and
dental health benefits and disability coverage and benefits at least equal to those which would
have been provided to you if your employment had not terminated for a period of 24 months.
Notwithstanding the foregoing, if you become re-employed and are eligible to receive life
insurance, medical and dental health benefits and disability coverage and benefits under another
employer’s plans, Newpark’s obligations under this paragraph shall be reduced to the extent of any
such coverage and benefits. You agree to promptly report any such coverage and benefits to
Newpark. If you are ineligible under the terms of Newpark’s benefit plans or programs to continue
to be so covered, Newpark shall provide you with substantially equivalent coverage through other
sources or will reimburse you for the cost of obtaining such coverage and benefits.

 

 

 

{NAME}

January 7, 2008

Page 3

3.7 If you become entitled to the Termination Benefit in accordance with Paragraph 2.2,
Newpark shall provide you with outplacement services, payable by Newpark, with an aggregate cost
not to exceed $10,000 with an executive outplacement service firm reasonably acceptable to you and
Newpark.

3.8 Except as provided in Paragraph 3.6, you shall not be required to mitigate the amount of
any Termination Benefit by seeking other employment or otherwise, nor shall the amount of any
Termination Benefit be reduced by any compensation earned by you as the result of employment by
another employer, or otherwise.

3.9 Except as expressly provided otherwise herein, none of the provisions of this Agreement is
intended to curtail or limit in any way any contractual rights which you may have under any plan in
which you are eligible to participate or under any agreement binding on Newpark to which you are a
party, and all such contractual rights shall survive the execution of this Agreement and any Change
in Control. The Termination Benefit shall not be considered compensation for any benefit
calculation or other purpose under any retirement plan or other benefit plan maintained by Newpark.

4. Successors; Binding Agreement. This Agreement shall be binding on and inure to the
benefit of Newpark and any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of Newpark.
This Agreement shall inure to the benefit of and be enforceable by your personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

5. Termination of Agreement. Note: For Officers with Employment Agreements this
contract may only be terminated in accordance with the provisions of that agreement. For other
employees. Newpark may terminate this Agreement effective at any time after March 31st 2009, by
notice to you, if no Change in Control has occurred prior to the giving of such notice, and no
Potential Change in Control then exists. Once terminated, this Agreement shall have no further
force or effect.

6. Notices. All notices and all other communications provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when delivered or mailed by United
States registered mail, return receipt requested, postage prepaid, addressed to the respective
addresses set forth on the first page of this Agreement, or to such other address as either party
may have furnished to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt. Notices to Newpark shall be directed to the
attention of the Secretary of Newpark.

7. Amendments; Waivers. No provision or term of this Agreement may be supplemented,
amended, modified, waived or terminated except in a writing duly executed by all parties intended
to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided. Failure of a party to insist
on strict compliance with any of the terms and conditions of this Agreement shall not be deemed a
waiver of any such terms and conditions.

 

 

 

{NAME}

January 7, 2008

Page 4

8. Coordination of Benefits. In the event that the Employee is entitled to benefits
following termination under any Employment Agreement with Newpark, the Employee shall have the
right to elect whether to receive such benefits under this Agreement or any Employment Agreement,
but not both.

9. Entire Agreement. This Agreement, including Annex A, constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof and supersedes all
previous agreements, whether written or oral, relating to the same subject matter. All such
previous agreements between the parties hereto are hereby terminated and shall have no further
force or effect.

10. Attorneys’ Fees. In any litigation relating to this Agreement, including
litigation with respect to any instrument, document or agreement made under or in connection with
this Agreement, the prevailing party shall be entitled to recover its costs and reasonable
attorneys’ fees.

11. Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Delaware.

If this letter correctly sets forth our understanding on the subject matter hereof, kindly
sign and return to Newpark the enclosed copy of this letter, which will then constitute our
Agreement on this subject.

	 	 	 	 	 
	 	Very truly yours,

NEWPARK RESOURCES, INC.

 	 
	 	By  	 	 
	 	 	Paul L. Howes 	 
	 	 	President and CEO 	 
	 

Agreed to this                                         day of

	 	 	 
	 

{NAME}

	 	 

 

 

 

ANNEX A TO LETTER AGREEMENT

DATED JANUARY 7, 2008

The following terms used herein and in letter agreement (the “Agreement”) dated {DATE} between
Newpark Resources, Inc., and {NAME} (“Executive”) shall have the following meanings:

“Cause”, when used with reference to termination of the employment of Executive by Newpark for
“Cause”, shall mean:

a) Executive’s conviction by a court of competent jurisdiction of, or entry of a plea of
guilty or nolo contendere for an act on the Executive’s part constituting a felony dishonesty,
willful misconduct or material neglect by Executive of his obligations under this Agreement that
results in material injury to the Company;

b) appropriation (or an overt act attempting appropriation) of a material business opportunity
of the Company ;

c) theft, embezzlement or other similar misappropriation of funds or property of the Company
by Executive;

d) the failure of Executive to follow the reasonable and lawful written instructions or policy
of Newpark with respect to the services to be rendered and the manner of rendering such services by
Executive, provided Executive has been given reasonable and specific written notice of such failure
and opportunity to cure and no cure has been effected or initiated within a reasonable time, but
not less than 90 days, after such notice

A “Change of Control” shall be deemed to occur if: (i) a “Takeover Transaction” (as defined below)
occurs; or (ii) any election of directors of Newpark takes place (whether by the directors then in
office or by the stockholders at a meeting or by written consent) and a majority of the directors
in the office following such election are individuals who were not nominated by a vote of
two-thirds of the members of the Board of Directors or its nominating committee immediately
preceding such election; or (iii) Newpark effectuates a complete liquidation or a sale or
disposition of all or substantially all of its assets unless immediately following any such sale or
disposition of all or substantially all of its assets the individuals who were members of the Board
of Directors of Newpark immediately prior to such transaction continue to constitute a majority of
the Board of Directors or other governing body of the surviving corporation or entity (or, in the
case of an acquisition involving a holding company, constitute a majority of the Board of Directors
or other governing body of the holding company) for a period of not less than twelve (12) months
following the closing of such transaction. A “Takeover Transaction” shall mean (i) a merger or
consolidation of Newpark with, or an acquisition by Newpark of the equity interests or all or
substantially all of the assets of, any other corporation or entity, other than a merger,
consolidation or acquisition in which the individuals who were members of the Board of Directors of
Newpark immediately prior to such transaction continue to constitute a majority of the Board of
Directors or other governing body of the surviving corporation or entity (or, in the case of an
acquisition involving a holding company, constitute a majority of the Board of Directors or other
governing body of the holding company) for a period of not less than twelve (12) months following
the closing of such transaction, or (ii) one or more occurrences or events
as a result of which any individual, entity or group (as such term is used in Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act) becomes the “beneficial owner” (as such term is defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of thirty percent (30%) or more of the
combined voting power of Newpark’s then outstanding securities.

 

 

 

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Company” or “Newpark” shall mean Newpark Resource, Inc., and its consolidated subsidiaries
and any successor to its business and/or assets which assumes or becomes subject to this Agreement
by operation of law or otherwise.

“Disability” shall mean Executive’s full-time absence from his duties with Newpark, as a
result of incapacity due to physical or mental illness.

“Disability Period” shall mean a period of six (6) months commencing on the first day of a
Disability occurring during the Employment Period.

“Employment Period” shall mean a period (a) commencing when a Potential Change in Control
occurs or, if no Potential Change in Control has occurred with respect to a Change in Control, when
such Change in Control occurs, and (b) ending two years after such Change in Control occurred. If
the event or agreement that gives rise to a Potential Change in Control terminates or is terminated
without the Change in Control contemplated thereby having occurred, the Employment Period shall
terminate upon termination of such event or agreement; however, a new Employment Period shall
commence under the same conditions upon any subsequent Potential Change in Control or Change in
Control.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“Good Reason” shall mean any one or more of the following, occurring without Executive’s
express written consent during the Employment Period and within 90 days prior to Executive’s
resignation as a result thereof:

a) the Company adversely changes Executive’s title or changes in any material respect the
responsibilities, authority or status of Executive the substantial or material failure of the
Company to comply with its obligations under this Agreement or any other agreement that may be in
effect that is not remedied within a reasonable time after specific written notice thereof by
Executive to the Company;;

b) the diminution of the Executive’s salary, incentive and or a material diminution of the
Executive’s benefits Newpark’s requiring Executive to be based anywhere outside a 50 mile radius
from the Newpark office at which Executive had been based prior to the Change in Control or
Potential Change in Control, or a 50 mile radius from his present residence, whichever is farther,
except for required travel on Newpark’s business to an extent substantially consistent with
Executive’s present business travel obligations; or

c) the failure of the Company to obtain the assumption of this Agreement or other existing
employment agreement by any successor or assignee of the Company.

 

2 

 

A “Potential Change in Control” shall be deemed to have occurred on the date that (a) Newpark
first has actual knowledge that any person (as such term is used in Sections 13(d) and
14(d)(2) of the Exchange Act) has become the beneficial owner (as defined in Rule 13(d)-3
under the Exchange Act), directly or indirectly, or has initiated an offer which has not expired
and which, if accepted by holders of a sufficient number of Newpark’s then outstanding securities,
would result in such person’s becoming the beneficial owner, directly or indirectly, of securities
of Newpark representing thirty percent (30%) or more of the combined voting power of Newpark’s then
outstanding securities, or (b) Newpark enters into an agreement (including a letter of intent) the
consummation of which would result in a Change in Control.

“Start Date” shall mean the first day of an Employment Period.

“Termination Benefit” shall mean the amount determined in accordance with paragraph (a) below.
If Executive is entitled to a Termination Benefit, it shall be paid to Executive no later than the
60th day following the date on which his employment terminates.

a) The Termination Benefit shall be an amount equal to (i) 2 times Executive’s annual base
salary for the fiscal year of Newpark immediately preceding the fiscal year in which the Start Date
occurs plus (ii) 2 time the higher of: a) the highest bonus actually received by the
Executive; or b) the “Target Award Opportunity” to which Executive would be entitled under the 2003
Executive Incentive Compensation Plan of Newpark for the fiscal year of Newpark immediately
preceding the fiscal year in which the Start Date occurs.

 

3 

 

SCHEDULE TO EXHIBIT 10.3

FORM OF CHANGE OF CONTROL AGREEMENT

The Change of Control Agreements between Newpark Resources, Inc. and the executive officers
listed below dated January 7, 2008 are identical in all material respects.

	 	•	 	James E. Braun

	 
	 	•	 	Mark J. Airola

	 
	 	•	 	Bruce Smith

	 
	 	•	 	Sammy Cooper

 

4exhibit_10-1.htm

    EXHIBIT
      10.1

     

    
      SUPPORT
        CONTINUITY AGREEMENT

       

      This
        Support Continuity Agreement (the “Agreement”) is
        between Alexander Adegan (“Executive”) and U.S. Auto
        Parts Network, Inc., its foreign and domestic subsidiaries (whether or not
        wholly-owned), parent corporations, brother-sister corporations, benefit
        plans
        and plan administrators, affiliated entities, joint ventures, successors
        and/or
        assigns (collectively referred to as
“Company”).

       

      RECITALS

       

      A.  Executive
        has resigned as the Company’s Chief Information Officer as of April 3, 2008,
        which resignation is attached hereto as Exhibit A.  Executive’s
        employment with the Company shall terminate effective April 18, 2008
        (“Termination Date”).  Executive and the
        Company (each individually, a “Party” or collectively,
        the “Parties”) mutually desire to end their existing
        relationship as amicably as possible and eliminate any future
        disputes.

       

      B.  The
        Company has elected to offer Executive compensation and benefits to which
        he may
        not otherwise be entitled.  The Company expressly disclaims any
        wrongdoing or any liability to Executive.  This Agreement and
        compliance with it shall not be construed as an admission by the Company
        of any
        liability or violation to the rights of the Executive or any other person
        or as
        a violation of any order, law, statute duty or contract whatsoever as to
        Executive or any person.

       

      C.  Executive
        holds the following options to purchase an aggregate of 336,000 shares of
        the
        Company’s Common Stock (collectively the
“Options”):  (i) options to purchase up to
        186,000 shares granted under the Company’s 2006 Equity Incentive Plan (the
“2006 Plan”), of which 85,250 shares have vested as of
        the Termination Date; and (ii) options to purchase up to 150,000 shares under
        the Company’s 2007 Omnibus Incentive Plan (the “2007
        Plan”), 37,500 shares of which have vested as of the Termination
        Date.

       

      AGREEMENTS

       

      Based
        upon the foregoing, and in consideration of the mutual promises contained
        in
        this Agreement, Executive and the Company (for its benefit and the benefit
        of
        the other Company Parties as defined below) agree, effective upon the date
        of
        execution by Executive, as follows:

       

      1.  Acknowledgment.

       

      (a)  Salary;
        Accrued Vacation.  On the Termination Date, the Company will
        provide a payment to Executive for his salary through the Termination Date
        and
        all accrued vacation, less all applicable state and federal withholdings
        and any
        other lawful deductions (the
“Withholdings”).  Executive is entitled to
        said payments regardless of whether he signs this Agreement.

       

      (b)  Other
        than the accrued vacation and salary set forth in Paragraph 1(a) above,
        Executive acknowledges that he has been paid all regular salary, accrued
        vacation, expenses, commissions, distributions, bonuses and Company benefits
        due
        and owing as of the Termination Date, less any applicable Withholdings, and
        is
        not owed any monies allowed, including but not limited to those amounts required
        under the California Labor Code, as of the Termination Date which are not
        consideration for this Agreement.  Information regarding the transfer
        or distribution of Executive’s 401(k) Retirement Plan Account, while employed
        with the Company, will be or has been provided to Executive under a separate
        cover by the Principal Financial Group.

       

      (c)  The
        date
        of cessation of Service as defined in the Options shall be the Termination
        Date,
        and Executive agrees that no further vesting of any of the Options will take
        place after the Termination Date pursuant to the terms of the Options, the
        2006
        Plan, the 2007 Plan or any other agreement.  Executive acknowledges
        and agrees that except as indicated above, Executive does not own any securities
        of the Company or any rights to acquire any securities of the
        Company.

       

      2.  Consideration.  The
        Parties recognize that, apart from this Agreement, the Company is not obligated
        to provide Executive with any of the benefits set forth
        hereunder.  Provided that Executive has not revoked this Agreement by
        the date when the seven (7) day revocation period described in Paragraph 6
        below has expired (“Effective Date”), the Company
        agrees to provide Executive the following additional consideration on the
        dates
        specified below:

       

      (a)  COBRA.
        Upon Executive’s timely election of COBRA continuation coverage under the
        Company’s health plan and proof provided by Executive of his timely payment of
        monthly COBRA premiums, the Company will reimburse Executive for the amount
        of
        such premiums paid within five (5) business days after timely receipt by
        the
        Company of said proof of each payment from Executive.  Such premium
        reimbursements will be paid for coverage for 18 months following the Termination
        Date.  Executive agrees to notify the Company immediately if he
        becomes eligible for or covered by another group health plan.

       

      (b)  Bonus.  The
        Company will pay Executive half of his target bonus for 2008, which the Parties
        acknowledge he would not otherwise be entitled to as a result of his termination
        of employment. Such bonus shall be based on the Company’s percentage bonus
        payout and be payable at the time the Company pays its 2008 management bonuses,
        which shall not be later than March 15, 2009.  Such bonus payment
        shall be less all applicable Withholdings.

       

      (c)  Additional
        Payments.  Executive understands he has been paid all expenses and
        has received all reimbursements owed to him and that such sum is not
        consideration of this Agreement.

       

      (d)  Consulting
        Agreement.  The Parties agree to enter into the Consulting
        Agreement attached hereto as Exhibit B.

       

      3.  Taxes.  Notwithstanding
        the tax deductions set forth in Paragraph 2 above, Executive shall pay in
        full when due, and shall be solely responsible for, any and all federal,
        state
        or local income taxes or other taxes that are or may be assessed against
        him
        relating to the consideration provided under this Agreement, including all
        amounts paid pursuant to Paragraph 2, as well as all interest or penalties
        that may be owed in connection with such taxes.  Executive is not
        relying on any representations or conduct of the Company with respect to
        the
        adequacy of the Withholdings.

       

      4.  Release.

       

      (a)  Executive,
        on behalf of himself, his successors, heirs, and assigns, hereby forever
        relieves, releases, and discharges the Company as well as its past, present
        and
        future officers, directors, administrators, stockholders, employees, agents,
        attorneys, insurers, divisions, successors, subsidiaries, parents, assigns,
        representatives, brother/sister corporations, and all other affiliated or
        related corporations, all benefit plans sponsored by the Company, and entities,
        and each of their respective present and former agents, employees,
        representatives, insurers, partners, attorneys, associates, successors, and
        assigns, and any entity owned by or affiliated with any of the above (all
        of the
        foregoing are collectively referred to as the “Company
        Parties”), from any and all claims, debts, liabilities, demands,
        obligations, liens, promises, acts, agreements, costs and
        expenses  (including but not limited to attorneys’ fees), damages,
        actions, and causes of action, of whatever kind or nature, including but
        not
        limited to any statutory, civil, administrative, or common law claims, whether
        known or unknown, suspected or unsuspected, fixed or contingent, apparent
        or
        concealed, arising out of any act or omission occurring before Executive’s
        execution of this Agreement, including but not limited to any claims based
        on,
        arising out of, or related to Executive’s employment with, or the ending of
        Executive’s employment with the Company, any claims arising from rights under
        federal, state, and local laws relating to the regulation of federal or state
        tax payments or accounting; federal, state or local laws that prohibit
        harassment or discrimination on the basis of race, national origin, religion,
        sex, gender, age, marital status, bankruptcy status, disability, perceived
        disability, ancestry, sexual orientation, family and medical leave, or any
        other
        form of harassment or discrimination or related cause of action (including
        but
        not limited to failure to maintain an environment free from harassment and
        retaliation, inappropriate comments or touching and/or “off-duty” conduct of
        other Company employees); statutory or common law claims of any kind, including
        but not limited to, any alleged violation of Title VII of the Civil Rights
        Act of 1964, The Civil Rights Act of 1991, Sections 1981 through 1988 of
        Title 42 of the United States Code, as amended; The Employee Retirement
        Income Security Act of 1971, as amended, The Americans with Disability Act
        of
        1990, as amended, the Workers Adjustment and Retraining Notification Act,
        as
        amended; the Occupational Safety and Health Act, as amended, the Age
        Discrimination in Employment Act (the “ADEA”), the
        Sarbanes-Oxley Act of 2002, the California Family Rights Act (Cal. Govt.
        Code
§ 12945.2 et seq.), the California Fair Employment and Housing Act (Cal.
        Govt. Code § 12900 et. seq.), statutory provision regarding
        retaliation/discrimination for filing a workers’ compensation claim under Cal.
        Labor Code § 132a, California Unruh Civil Rights Act, California Sexual
        Orientation Bias Law (Cal. Lab. Code § 1101 et. seq.), California AIDS
        Testing and Confidentiality Law, California Confidentiality of Medical
        Information (Cal. Civ. Code § 56 et. seq.), contract, tort, and property
        rights, breach of contract, breach of implied-in-fact contract, breach of
        the
        implied covenant of good faith and fair dealing, tortious interference with
        contract or current or prospective economic advantage, fraud, deceit, invasion
        of privacy, unfair competition, misrepresentation, defamation, wrongful
        termination, tortious infliction of emotional distress (whether intentional
        or
        negligent), breach of fiduciary duty, violation of public policy, or any
        other
        common law claim of any kind whatsoever; any claims for severance pay, sick
        leave, family leave, liability pay, overtime pay, vacation, life insurance,
        health insurance, continuation of health benefits, disability or medical
        insurance, or Executive’s 401(k) rights or any other fringe benefit or
        compensation, including but not limited to stock options; any claim for damages
        or declaratory or injunctive relief of any kind.  The Parties agree
        and acknowledge that the release contained in this Paragraph 4 does not
        apply to any vested rights Executive may have under any 401(k) Savings Plan
        with
        the Company.  Executive represents that at the time of the execution
        of this Agreement, he suffers from no work-related injuries and has no
        disability or medical condition as defined by the Family Medical Leave
        Act.  Executive represents that he has no workers’ compensation claims
        that he intends to bring against the Company.  Executive understands
        that nothing contained in this Agreement, including, but not limited to,
        this
        Paragraph 4, will be interpreted to prevent him from filing a charge with
        a
        governmental agency or participating in or cooperating with an investigation
        conducted by a governmental agency.  However, Executive agrees that he
        is waiving the right to monetary damages or other individual legal or equitable
        relief awarded as a result of any such proceeding.  Executive further
        acknowledges that he has been paid all wages, vacation, bonuses or other
        income
        owed to his and thus this release also releases the Company for all claims
        of
        unpaid wages, including unpaid overtime wages, related to his employment
        with
        the Company and subject to the terms specified in Paragraph 2 of this
        Agreement.

       

      (b)  Mistakes
        in Fact; Voluntary Consent.  Executive expressly and knowingly
        acknowledges that, after the execution of this Agreement, Executive may discover
        facts different from or in addition to those that he now knows or believes
        to be
        true with respect to the claims released in this
        Agreement.  Nonetheless, this Agreement shall be and remain in full
        force and effect in all respects, notwithstanding such different or additional
        facts and Executive intends to fully, finally, and forever settle and release
        those claims released in this Agreement.  In furtherance of such
        intention, the release given in this Agreement shall be and remain in effect
        as
        a full and complete release of such claims, notwithstanding the discovery
        and
        existence of any additional or different claims and Executive assumes the
        risk
        of misrepresentations, concealments, or mistakes, and if Executive should
        subsequently discover that any fact relied upon in entering into this Agreement
        was untrue, that any fact was concealed, or that his understanding of the
        facts
        or law was incorrect, Executive shall not be entitled to set aside this
        Agreement or the settlement reflected in this Agreement or be entitled to
        recover any damages on that account.

       

      (c)  Section 1542
        of the California Civil Code.  Executive expressly waive any and
        all rights and benefits conferred upon Executive by Section 1542 of the
        California Civil Code, which states 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.

       

      (d)  No
        Lawsuits.  Executive represents that he has not filed any claims,
        charges, complaints or actions against the Company or any Company Parties,
        or
        assigned to anyone any charges, complaints, claims or actions against the
        Company or any Company Parties.  Executive agrees to take any and all
        steps reasonably necessary to insure that no lawsuit arising out of any claim
        released herein shall ever be prosecuted by Executive or on his behalf in
        any
        forum, and hereby warrants and covenants that no such action has been filed
        or
        shall ever be filed or prosecuted.  Executive also agrees that if any
        claim released hereunder is prosecuted in his name before any court or
        administrative agency that he waives and agrees not to take any award or
        other
        damages from such suit to the extent permissible under applicable
        law.  Executive further agrees to cooperate fully with the Company in
        the event of a lawsuit or threat of lawsuit arising out of acts and events
        occurred during Executive’s employment with the Company, and the Company’s duty
        to indemnify Executive shall continue in accordance with the Indemnification
        Agreement previously executed by Company and Executive.

       

      5.  Proprietary
        Information and Return of Company Property.  During the term of
        the Consulting Agreement, Executive agrees to continue to abide by the terms
        and
        provisions of the U.S. Auto Parts Network, Inc.’s Confidentiality Information
        and Invention Assignment Agreement, which he executed on May 22, 2006 and
        is
        attached hereto and incorporated by reference as Exhibit C to this
        Agreement.  Executive further agrees to immediately return all Company
        property in his possession, including but not limited to all materials,
        documents, photographs, handbooks, manuals, electronic records, files, laptop
        computer, blackberry, cellular telephones, keys and access cards, no later
        than
        two business days after his execution of this Agreement.

       

      6.  Revocation
        Period.  Executive may revoke his release of claims, but only
        insofar as it extends to potential claims under the ADEA (the “ADEA
        claims”), by informing the Company of his intent to revoke this
        release within seven (7) calendar days following his execution of this
        Agreement.  Executive understands that any such revocation must be in
        writing and delivered by hand or by certified mail - return receipt requested
        -
        within the applicable period to Michael McClane, Chief Financial Officer,
        U.S.
        Auto Parts Network, Inc., at 17150 South Margay Avenue, Carson, California
        90746.  Executive understands that if Executive exercises his right to
        revoke his ADEA claims, as specified in this Paragraph 6, then the Company
        will have no obligations under this Agreement to Executive or to others whose
        rights derive from the Executive, and the Company can seek enforcement of
        the
        remaining provisions of this Agreement.  Executive acknowledges and
        agrees he was initially provided with a copy of the Agreement on April 4,
        2008.  Executive further acknowledges that the Agreement has been open
        for acceptance by the Executive and that he shall have twenty-one (21) calendar
        days to carefully review, understand, consider and evaluate the
        Agreement.  The Agreement shall not become effective or enforceable as
        against the Company until the seven (7) day revocation period identified
        above
        has expired.  Executive acknowledges that he has had the opportunity
        to consult with legal counsel of his choice regarding the releases contained
        herein and to consider whether to accept the Company’s offer and sign the
        Agreement.

       

      7.  Remedies.  Executive
        understands and agrees that in the event he violates any provision of this
        Agreement, including the provisions set forth in Paragraphs 4 or 5,
        then:  (a) the Company shall have the right to apply for and
        receive an injunction to restrain any violation of this Agreement; (b) the
        Company shall have the right to immediately discontinue any enhanced benefits
        or
        Consideration provided to his under this Agreement; (c) Executive will be
        obligated to reimburse the Company its cost and expenses incurred in defending
        his lawsuit and enforcing this Agreement, including the Company’s court costs
        and reasonable attorneys fees; and (d) as an alternative to (c), at the
        Company’s option, Executive shall be obligated upon written demand by the
        Company, to repay the Company the cost of all but $500 of the enhanced benefits
        paid under this Agreement, including the Consideration.  Executive
        acknowledges and agrees that the covenants contained in this Paragraph 7
        shall not affect the validity of this Agreement and shall not be deemed to
        be a
        penalty or forfeiture.  The remedies available to the Company pursuant
        to this Paragraph 7 are in addition to, and not in lieu of, any remedies
        which may be available under statutory and/or common law relating to trade
        secrets and the protection of the Company’s business interest
        generally

       

      8.  Nonassignment.  Executive
        represents and warrants that he has not assigned or transferred any portion
        of
        any claim or rights he has or may have to any other person, firm, corporation
        or
        any other entity, and that no other person, firm, corporation, or other entity
        has any lien or interest in any such claim.

       

      9.  Miscellaneous
        Provisions

       

      (a)  Integration.  This
        Agreement constitutes a single, integrated written contract expressing the
        entire Agreement of the parties concerning the subject matter referred to
        in
        this Agreement.  No covenants, agreements, representations, or
        warranties of any kind whatsoever, whether express or implied in law or fact,
        have been made by any party to this Agreement, except as specifically set
        forth
        in this Agreement.  All prior and contemporaneous discussions,
        negotiations, and agreements have been and are merged and integrated into,
        and
        are superseded by, this Agreement.

       

      (b)  Modifications.  No
        modification, amendment, or waiver of any of the provisions contained in
        this
        Agreement shall be binding upon the Parties to this Agreement unless made
        in
        writing and signed by both Parties.

       

      (c)  Severability.  Whenever
        possible, each provision of this Agreement shall be interpreted in such a
        manner
        as to be effective and valid under applicable law and to carry out each
        provision herein to the greatest extent possible, but if any provision of
        this
        Agreement is held to be void, voidable, invalid, illegal or for any other
        reason
        unenforceable, the validity, legality and enforceability of the other provisions
        of this Agreement will not be affected or impaired thereby.

       

      (d)  Non-Reliance
        on Other Parties.  Except for statements expressly set forth in
        this Agreement, neither of the Parties has made any statement or representation
        to any other Party regarding a fact relied on by the other Party in entering
        into this Agreement, and no Party has relied on any statement, representation,
        or promise of any other party, or of any representative or attorney for any
        other Party, in executing this Agreement or in making the settlement provided
        for in this Agreement.

       

      (e)  Negotiated
        Agreement.  The terms of this Agreement are contractual, not a
        mere recital, and are the result of negotiations between the
        Parties.  Accordingly, neither of the Parties shall be deemed to be
        the drafter of this Agreement.

       

      (f)  Successors
        and Assigns.  This Agreement shall inure to the benefit of and
        shall be binding upon the heirs, successors, and assigns of the Parties hereto
        and each of them.  In the case of the Company, this Agreement is
        intended to release and inure to the benefit of the Company and the Company
        Parties.

       

      (g)  Applicable
        Law.  This Agreement shall be construed in accordance with, and
        governed by, the laws of the State of California without taking into account
        conflict of law principles.

       

      (h)  Counterparts.  This
        Agreement may be executed via facsimile and in one or more counterparts,
        each of
        which shall be deemed an original, but all of which together constitute one
        and
        the same instrument, binding on the parties.

       

      [SIGNATURES
        ON NEXT PAGE]

       

      
        
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            AA                    

                                               
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      EXECUTIVE
        ACKNOWLEDGES AND AGREES THAT EXECUTIVE HAS CAREFULLY READ AND VOLUNTARILY
        SIGNED
        THIS AGREEMENT, THAT EXECUTIVE HAS HAD AN OPPORTUNITY TO CONSULT WITH AN
        ATTORNEY OF EXECUTIVE’S CHOICE, AND THAT EXECUTIVE SIGNS THIS AGREEMENT WITH THE
        INTENT OF RELEASING THE COMPANY AND THE COMPANY PARTIES FROM ANY AND ALL
        CLAIMS.

       

      

       

      
        	
                 

              	
                ACCEPTED
                  AND AGREED TO:

              

      

       

      
        	
                April
                  28, 2008

              	
                April
                  28, 2008

              
	 	 
	
                U.S.
                  AUTO PARTS NETWORK, INC.

              	
                EXECUTIVE

              
	 	 
	 	 
	
                By:             
                  /s/ MICHAEL McCLANE

              	
                By:        
                       /s/ ALEXANDER ADEGAN

              
	
                Name:      
                   Michael McClane

              	
                Name:       
                  Alexander Adegan

              
	
                Its:            
                  Chief Financial Officer

              	
                Address:  
                  **************

              
	 	 
	 	 

      

      

       

      
        
                

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              AA                    

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      EXHIBIT
        A

       

      Resignation

       

      The
        undersigned, Alexander Adegan, hereby resigns from his position as the Chief
        Information Officer at U.S. Auto Parts Network, Inc. effective as of April
        3,
        2008.

       

      

       

      /s/
        ALEXANDER ADEGAN

       

      Alexander
        Adegan

       

      

       

      
        
                

                                                                                                                                                                                                                   /s/
              AA              
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      EXHIBIT
        B

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