Document:

Employment Agreement

 Exhibit 10.57 
  
  
 

 
 MOLECULAR IMAGING CORPORATION 
  

	 	

  
 2150 W. Washington Street, Suite 110, San Diego, California USA Tel: (001) 619-226-6738 Fax: (001) 619-226-6889 
  
 MOLECULAR IMAGING CORPORATION 
 EMPLOYMENT AGREEMENT 
  
 SECTION ONE 
 PARTIES 
  
 1.1. This Employment Agreement (this “Agreement”) is made and entered into, and is effective, as of July 28, 2003 (the “Effective Date”), between Molecular Imaging Corporation, a Delaware
corporation (the “Company”), and Steve Vandecar, an individual (the “Executive”). 
  
 SECTION TWO 
 RECITALS 
  
 2.1. This Agreement is made with reference to the following facts and circumstances: 
  
 (a) The Company desires to employ the Executive on the terms
and subject to the conditions set forth below. 
  
 (b) The Executive desires to be
employed by the Company on the terms and subject to the conditions set forth below. 
  
 2.2. In consideration of these recitals and the mutual promises set forth below, the Company hereby employs the Executive, and the Executive hereby accepts this employment, on the terms and subject to the conditions set forth in this
Agreement. 
  
 SECTION THREE 
 THE EXECUTIVE’S DUTIES 
  
 3.1. Position. The Company shall employ the Executive as the Company’s Senior Vice President of Operations. 
  
 3.2. Duties. The Executive shall have the responsibilities and perform the duties normally
attendant to such position, subject to the direction of the Company’s Chief Executive Officer (the “CEO”), who shall be the Executive’s immediate supervisor, and of the Company’s Board of Directors (the “Board”).
The Executive shall also have such additional responsibilities and duties for the Company and its subsidiaries, consistent with his position and expertise, as may be assigned to the Executive from time to time by the CEO or the Board. 
  
 3.3. Full Time Employment. The Executive shall devote his full energies, interest, abilities
and productive time to the performance of his duties under this Agreement and shall not, without the Company’s prior written consent, render to others services of any kind for compensation or engage in any other business activity that would, in
either case, interfere with the performance of his duties under this Agreement. 
  
 3.4. No Competition During Employment. During the term of his employment by the Company, the Executive shall not, directly or indirectly, whether as a partner, employee, shareholder, investor or otherwise, promote, participate or engage in
any activity or other business that directly or indirectly competes with the business of the Employer or its subsidiaries. In addition, the Executive, while employed by the Company, shall not take any action without the Employer’s prior written
consent to establish, form or become employed by any competing business on termination of his employment by the Company. 
  
 3.5. Place of Employment. Unless otherwise agreed to in writing by the Company, the Executive shall perform the services he is required to perform under this Agreement at
the Company’s executive offices as established from time to time by the Board; provided, however, that the Executive may be required from time to time to travel in connection with the performance of his duties for the Company and its
subsidiaries. 

 SECTION FOUR 
 TERM OF EMPLOYMENT 
  
 4.1. Term. The Company
agrees to continue the Executive’s employment and Executive agrees to remain in Company’s employment from the Effective Date until the date when Executive’s employment terminates pursuant to Section Eight below (the “Employment
Period”). The Executive’s performance will be reviewed after the first sixty (60) days of employment (the “Probationary Period”). The Executive’s employment with the Company shall be “at will,” which means that
either the Executive or the Company may terminate Executive’s employment at any time, for any reason, with “Cause” or “Without Cause.” Any contrary representations, which may have been made to the Executive shall be
superseded by this Agreement. This Agreement shall constitute the full and complete agreement between the Executive and the Company regarding the “at will” nature of Executive’s employment, which may only be changed in an express
written agreement signed by the Executive and the Chairman of the Board. 
  
 SECTION FIVE 
 COMPENSATION 
  
 5.1. Base Salary. The Company shall pay the Executive a base salary (“Salary”) at the rate of $5,000 bi-weekly ($130,000 per annum). The Company shall pay such
Salary in arrears in accordance with Company’s standard payroll practices in effect from time to time. The Executive’s Salary shall be reviewed and considered for possible increase by the Board based upon its determination and evaluation
of his performance and such other factors, if any, as it may deem appropriate, not less frequently than annually. 
  
 5.2. Discretionary Bonus. The Company shall provide the Executive the opportunity to earn a bonus equivalent to 30% of his annual salary if the targeted corporate budget
is achieved. 
  
 5.3. Options. Concurrently and as of even date herewith, the
Company shall grant to the Executive options or warrants (“Options”) covering 200,000 shares (the “Option Shares”) of the Company’s common stock, $.0001 par value (the “Common Stock”). The Options shall vest in
equal monthly installments over a one-year period commencing on the Effective Date (e.g., first monthly vesting will occur on August 30, 2003), subject to the Executive continuing to be employed hereunder at the time specified for vesting, shall be
exercisable to the extent then vested and shall be exercisable at an exercise price (“Exercise Price”) per Option Share equal to the closing price per share of Common Stock on the OTCBB exchange on the date which Executive commences his
employment, and shall expire to the extent not theretofore exercised upon the earliest to occur of (a) the fourth anniversary of the Effective Date; (b) 90 days following the date of termination of the Executive’s employment for any reason
other than those set forth below in this Section 5.3(c) hereof; or (c) immediately in the event of any termination by the Company of the Executive’s employment pursuant to Section 8.1 or Section 8.3 hereof. The number of Option Shares and the
Exercise Price thereof shall be subject to equitable and proportionate adjustment as determined by the Board from time to time to reflect stock splits, reverse stock splits, stock dividends, recapitalizations, reclassifications and similar events of
dilution. The Options will not be exercisable by the Executive unless or except to the extent that (a) the underlying Option Shares are registered under the Securities Act of 1933, as amended, and registered or qualified under applicable state
securities laws (collectively, the “Securities Laws”), or (b) in the reasonable opinion of counsel to the Company, exemptions from the registration and qualification provisions of such Securities Laws are applicable to the transaction. The
Options will also contain such investment representations by the Executive as may reasonably be requested by the Company’s counsel to insure compliance with applicable Securities Laws. The Options shall be issued pursuant to a stock option plan
or stock option agreement approved by the Board of Directors of the Company and will be contained in a separate document in customary form dated as of the Effective Date and executed by the Company and the Executive on the date hereof or promptly
thereafter; and, pending such execution, this Section 5.3 shall be deemed to constitute the grant of and contain the terms of the Options. The grant and exercise of such Options shall be subject to the Company’s completion of any and all
required or necessary state or federal securities filings and/or disclosure documents. 

 SECTION SIX 
 EXECUTIVE BENEFITS 
  
 6.1. General. The Company
shall provide the Executive with the same executive benefits (such as health insurance, sick leave, disability insurance), if any and if needed, that it provides to its other executives generally, as and when he becomes eligible for them. In
addition, the Executive shall be entitled to three weeks of vacation per year. One week of vacation may be scheduled after the first six months of employment. 
  

6.2. Expense Reimbursement. The Company shall reimburse the Executive for his reasonable and necessary out-of-pocket expenses incurred in the performance of his duties
under this Agreement, upon his timely submission of written requests therefore together with such receipts and documentation as the Company may reasonably request, all in accordance with the Company’s policies and procedures in effect from time
to time. 
  
 SECTION SEVEN 
 OWNERSHIP OF INTANGIBLES 
  
 7.1. All processes, inventions, patents, copyrights, trademarks, and other intangible rights that may be conceived or developed by the Executive, either alone or with
others, during his employment by the Company, whether or not conceived or developed during his working hours, and with respect to which the Company’s equipment, supplies, facilities or trade secret information were used, or that relate at the
time of conception or reduction to practice of the invention to the Company’s business or to its actual or demonstrably anticipated research and development, or that result from any work performed by the Executive for the Company (or its
subsidiaries), shall be the sole property of the Company. The Executive shall disclose to the Company all inventions conceived by the Executive while employed by the Company and for one year thereafter, whether or not the property of the Company
under the preceding sentence, provided that such disclosure shall be received by the Company in confidence. The Executive shall execute all documents, including patent applications and assignments, required by the Company to establish its rights
under this Section 7.1. 
  
 SECTION EIGHT 
 TERMINATION 
  
 8.1. Termination by the Company, for Cause. The Company may terminate the Executive’s employment and this Agreement at any time without notice if at any time from and after the Effective Date the Executive is
convicted of a felony, or of a misdemeanor involving fraud or other moral turpitude; is guilty of gross or habitual inattention to or carelessness or willful misconduct in the performance of his duties; is guilty of inattention to or carelessness in
the performance of his duties that is not cured within ten days after written notice thereof by the Company; is guilty of any material breach of this Agreement that is not cured within ten days after written notice thereof; fails to abide in any
material respects with the Company policies and procedures from time to time in effect; or fails to comply with any lawful orders or directions of the CEO or the Board that are not incompatible with his position with the Company or manifestly
unreasonable or unethical. 
  
 8.2. Termination by the Company Without Cause. The
Company may terminate the Executive’s employment and this Agreement at any time for any reason whatsoever or no reason, by giving the Executive written notice of its election to do so. If the Company terminates the Executive’s employment
and this Agreement other than for the reasons set forth in Section 8.1, then, subject to the Executive first executing a release that, in form and substance, is reasonably satisfactory to the Company and releases and discharges the Company and its
subsidiaries and their respective officers, directors, employees and representatives from all liabilities of any type they might otherwise be deemed to have to the Executive, the Company shall thereupon be obligated to pay the Executive a payment
equal to one (1) month’s Salary at the time of termination, which payment may, in the discretion of the Company, be paid as a lump sum or in two (2) equal payments in accordance with regularly scheduled paydays of the Company . 
  
 8.3. Termination by Resignation. The Executive may terminate this Agreement by giving the
Company not less than 30 days’ prior written notice of resignation. The Executive shall not be entitled to any Salary or other compensation accruing after the effective date of his resignation under Section 8.2 if he terminates this Agreement.

 8.4. Termination on Disability. If, at the end of any consecutive 90-day period during the Term, the Executive is and has
been for the consecutive 90-day period then ending, or for 80% or more of the normal working days during such consecutive 90-day period unable due to mental or physical illness or injury to perform his duties under this Agreement in his normal and
regular manner, the Executive’s employment and this Agreement shall then terminate, subject to the Executive’s right to receive any disability benefits then provided by the Company. 
  
 8.5. Termination By Death. The Executive’s employment and this Agreement shall terminate
upon the Executive’s death, subject to Executive’s estate being entitled to receive any death benefits then provided by the Company. 
  
 8.6. Rights and Obligations After Notice of Termination. If either the Company or the Executive gives notice of termination of this Agreement, or if it becomes known that
this Agreement will otherwise terminate in accordance with its provisions, the Company may, in its sole discretion and subject to its other obligations under this Agreement, relieve the Executive of his duties under this Agreement. 
  
 SECTION NINE 
 CONFIDENTIAL INFORMATION 
  
 9.1. Confidential Information. During the period of time that the Company has been in business, it has acquired, created and developed, and will continue to acquire, create and develop certain confidential and proprietary information, which
the Executive has been and will continue to be exposed to, and he has had and will continue to have an opportunity to learn about the Company’s (and its subsidiaries’), customers and employees (including records and information pertaining
to such customers and employees, and to the relationship between these customers and employees and the Company and its subsidiaries), operations, methods of doing business, research and development, know-how, formulas, processes, trade secrets,
computer programs, algorithms, finances (including all non-public financial statements and information), and other confidential and proprietary information belonging to the Company and its subsidiaries (collectively, “Confidential
Information”). The term, “Confidential Information,” includes all documents, materials, and information concerning the Company that heretofore have been or hereafter are furnished, made available, or otherwise disclosed to or created
by the Executive, except information that was or becomes generally available to the public other than as a result of a disclosure by or through the Executive. All such information is considered secret and has been and shall at all times be deemed to
be disclosed to the Executive in strict confidence. Executive shall keep such Confidential Information confidential pursuant to the terms hereof and the Employee Non-Disclosure Agreement executed by Executive. 
  
 9.2. Disclosure of Confidential Information. Except as required in the performance of his
duties hereunder, the Executive shall not directly or indirectly disclose to any third person any of the Company’s or its subsidiaries’ Confidential Information or use any such Confidential Information for any purpose without the
Company’s prior written consent. This covenant shall survive the termination of this Agreement. 
  
 9.3. Unfair Competition. The Executive understands, acknowledges and agrees that the Company is engaged in the business of providing and operating Positron Emission Tomography, and hopes to expand those services to
new geographical areas throughout the world. For so long as the Executive is an employee of the Company, he agrees that he will not directly or indirectly compete with the business of the Company or its subsidiaries anywhere in the world. As used in
the preceding sentence, “compete” means, but is not necessarily limited to, the Executive engaging in or carrying on, either for himself or as an officer, director, executive, shareholder, partner, member, agent, associate, consultant or
affiliate of, or investor in any other person or entity that is engaged in any activity described in the first sentence of this Section 9.3 or that is competitive with any such activity. The Executive also agrees that for so long as the Executive is
an employee of the Company, he will not directly or indirectly recruit, hire, assist others in recruiting or hiring, or refer to others concerning employment, any other person who is an employee of the Company or any affiliate of the Company.

 9.4. Equitable Enforcement. The Executive represents and agrees that he finds the restrictions contained in Sections 3.4,
9.2 and 9.3 hereof to be fair and reasonable. He also understands, acknowledges and agrees that if he were to breach any of his obligations contained in Sections 3.4, 9.2 or 9.3 hereof, the Company would suffer immediate and irreparable harm, and
that an award of money damages would not be adequate to fully compensate the Company for such harm. Accordingly, if the Executive breaches or threatens to breach any of his obligations contained in Sections 3.4, 9.2 or 9.3 hereof, the Company shall
be entitled to a temporary restraining order and a preliminary or temporary injunction, from any court having jurisdiction, until the issue of such breach or threatened breach is finally determined by arbitration pursuant to Section 10 hereof. If
such court determines that it is reasonably likely that an arbitrator or arbitrators will find that any of those obligations are not enforceable, in whole or in part, due to any unreasonable restriction of duration, geographical area or activity, or
any combination thereof, such court shall nevertheless enjoin the breach thereof as to such duration, geographical area and activity that the court determines is fair and reasonable, pending arbitration proceedings to settle any controversy or claim
relating to the enforceability of the Executive’s obligations under Sections 3.4, 9.2 or 9.3 hereof. The court shall not require the Company to post any bond or other surety as a condition to granting and maintaining any temporary restraining
order or preliminary injunction pursuant to this Section 9.4. 
  
 SECTION TEN 
 DISPUTE RESOLUTION 
  
 10.1. Binding Arbitration. Except to the extent otherwise expressly provided for herein, any controversy or claim arising out of or relating to this Agreement, or a
breach of this Agreement, shall be settled exclusively by binding arbitration, in San Diego, California, in accordance with the Commercial Arbitration Rules of the American Arbitration Association, before a panel of three arbitrators, one appointed
by each of the Company and the Executive, and the third chosen by the two so appointed. The decision of the arbitrators shall be final, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction. The
prevailing party shall be awarded reasonable attorneys and arbitration costs. 
  
 10.2. Interim Relief from a Court. In addition to the interim equitable enforcement provisions of Section 9.4, any party may request a court to provide interim or provisional relief, and such request shall not be deemed incompatible with
this agreement to arbitrate or as a waiver of that agreement. 
  
 10.3. Equitable
Enforcement. The parties acknowledge and agree that in the event of a breach or threatened breach of this Agreement, or a party’s failure to perform any provision hereof to be performed by that party, damages would be extremely difficult if not
impossible to determine, and that the other parties to this Agreement would not have any adequate remedy at law. The parties agree that an arbitrator may grant injunctive relief and specific performance in his or her award, and that any court having
jurisdiction may enforce such equitable relief. 
  
 10.4. Reformation. In any
arbitration proceedings relating to the Executive’s obligations under Sections 3.4, 9.2 or 9.3 above, if the arbitrators should find any of the restrictions contained in those sections or any of the Executive’s obligations thereunder to be
unenforceable, in whole or in part, due to any unreasonable restriction of duration, geographical area or activity, or any combination thereof, then the arbitrators shall have the Executive’s and the Company’s express authority to reform
those restrictions and obligations to reasonable restrictions and obligations, and to grant the Company any other legal or equitable relief reasonably necessary to protect the Company’s interest in its Confidential Information, and to prevent
the Executive from unfairly competing with the Company. 
  
 SECTION
ELEVEN 
 MISCELLANEOUS PROVISIONS 
  
 11.1. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior oral and
written agreements, understandings, commitments and practices between them with respect to such subject matter. No amendments to this Agreement may be made except by a writing signed by both parties. 
  
 11.2. Law Governing. This Agreement shall be construed and enforced in accordance with the
laws of California. 

 11.3. Notices. All notices, consents and other communications under this Agreement shall be in writing (including
facsimile transmissions) and shall be deemed given on the earliest of (a) the day of actual receipt; (b) the day sent by facsimile transmittal with electronic confirmation of receipt, if sent on a business day before 5:00 p.m., the recipient’s
time, otherwise the next business day after the day sent; (c) the next business day after delivery to a national delivery service for overnight delivery, with delivery receipt requested; and (d) the fifth business day after deposit in the United
States mail, certified or registered with postage prepaid, return receipt requested, in any such case addressed to the parties as set forth below or at such other address as a party may specify by notice given pursuant to this Section 11.3:

  

	 IF TO THE COMPANY:
	 	IF TO THE EXECUTIVE:
		
	 At its principal executive offices
	 	At his most recent address reflected in the Company’s records

  
 11.4. Severability. If any provision
of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless
remain in full force and effect in all other circumstances. 
  
 11.5. Binding
Effect. This Agreement shall bind and accrue to the benefit of the parties and their respective successors in interest. 
  
 11.6. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which, taken together shall be
deemed to constitute one and the same instrument. 
  
 IN WITNESS WHEREOF the
parties have executed this Agreement as of the date set forth in Section 1.1 above. 
  

	 THE COMPANY:
	 	 	 	 THE EXECUTIVE:

			
	 Molecular Imaging Corporation
	 	 	 	 STEVE VANDECAR

	 by direction of its Board of Directors
	 	 	 	 
					
	By:	 	 /s/    PAUL
CROWE        

	 	 	 	By:	 	 /s/    STEVE
VANDECAR        

	 	 	Paul J. Crowe, President and CEO	 	 	 	 	 	Steve Vandecar
			
	 Date Signed: September 29, 2003
	 	 	 	Date Signed: September 29, 20032003 employee stock purchase plan

 Exhibit 10.3 
  
 ALPHASMART, INC. 
 2003 EMPLOYEE STOCK PURCHASE PLAN 
  
 The
following constitutes the provisions of the 2003 Employee Stock Purchase Plan of AlphaSmart, Inc. 
  
 1. Purpose. The purpose of the Plan is to provide Employees with an opportunity to purchase Common Stock through accumulated payroll deductions. It
is the intention of the Company to have the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code. The provisions of the Plan, accordingly, shall be construed so as to extend and limit Plan participation in a
manner that is consistent with the requirements of that section of the Code. 
  
 2. Definitions. 
  
 (a)
“Administrator” means the Board or any committee thereof designated by the Board in accordance with Section 14. 
  
 (b) “Board” means the Board of Directors of the Company. 
  
 (c) “Change of Control” means the occurrence of any of the following events: 
  
 (i) Any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented
by the Company’s then outstanding voting securities; or 
  
 (ii) The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; or 
  
 (iii) The consummation of a merger or consolidation of the Company, with any other corporation, other than a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%)
of the total voting power represented by the voting securities of the Company, or such surviving entity or its parent outstanding immediately after such merger or consolidation. 
  
 (iv) A change in the composition of the Board, as a result of which fewer than a majority of the Directors are Incumbent
Directors. “Incumbent Directors” means Directors who either (A) are Directors as of the effective date of the Plan (pursuant to Section 23), or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least
a majority of those Directors whose election or nomination was not in connection with any transaction described in subsections (i), (ii) or (iii) or in connection with an actual or threatened proxy contest relating to the election of Directors of
the Company. 
  
 (d) “Code” means the Internal
Revenue Code of 1986, as amended. Any reference to a section of the Code herein shall be a reference to any successor or amended section of the Code. 
  
 (e) “Common Stock” means the common stock of the Company. 
  
 (f) “Company” means AlphaSmart, Inc., a Delaware corporation. 
  
 (g) “Compensation” means an Employee’s base straight
time gross earnings, commissions (to the extent such commissions are an integral, recurring part of compensation), overtime and shift premium, but exclusive of payments for incentive compensation, bonuses and other compensation. 
  
 (h) “Designated Subsidiary” means any Subsidiary that has
been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan. 
  
 (i) “Director” means a member of the Board. 

 (j) “Employee” means any individual who is a common law employee of an Employer and is
customarily employed for at least twenty (20) hours per week and more than five (5) months in any calendar year by the Employer. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on
sick leave or other leave of absence approved by the Employer. Where the period of leave exceeds ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall
be deemed to have terminated on the 91st day of such leave. 
  
 (k) “Employer” means any one or all of the Company and its Designated Subsidiaries. 
  
 (l) “Enrollment Date” means the first Trading Day of each Offering Period. 
  
 (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended, including the rules and
regulations promulgated thereunder. 
  
 (n) “Exercise
Date” means the last day of each Offering Period. The first Exercise Date under the Plan shall be August 1, 2004. 
  
 (o) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a
national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for the Common Stock (or the closing bid, if no sales
were reported) as quoted on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable, or; 
  
 (ii) If the Common Stock is regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value shall be the mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the
Administrator deems reliable, or; 
  
 (iii) In the absence of an
established market for the Common Stock, its Fair Market Value shall be determined in good faith by the Administrator, or; 
  
 (iv) For purposes of the Enrollment Date of the first Offering Period under the Plan, the Fair Market Value shall be the initial price to the public as
set forth in the final prospectus deemed to be included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Common Stock (the “Registration Statement”).

  
 (p) “Offering Periods” means the periods of
approximately six (6) months during which an option granted pursuant to the Plan may be exercised, (i) commencing on the first Trading Day on or after February 1 of each year and terminating on the first Trading Day on or following August 1,
approximately six (6) months later, and (ii) commencing on the first Trading Day on or after August 1 of each year and terminating on the first Trading Day on or following February 1, approximately six (6) months later; provided, however, that the
first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective and ending on the first Trading Day on
or after August 1, 2004; and provided, further, that the second Offering Period under the Plan shall commence on the first Trading Day on or after August 1, 2004. The duration and timing of Offering Periods may be changed pursuant to Section 4 of
this Plan. 
  
 (q) “Parent” means a “parent
corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  

 2 

 (r) “Plan” means this 2003 Employee Stock Purchase Plan. 
  
 (s) “Purchase Price” means an amount equal to eighty-five
percent (85%) of the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20. 

 
 (t) “Subsidiary” means a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 (u) “Trading Day” means a day on which the U.S. national stock exchanges and the Nasdaq System are open for trading. 
  
 3. Eligibility. 
  
 (a) First Offering Period. Any individual who is an Employee
immediately prior to the first Offering Period under the Plan shall be automatically enrolled in the first Offering Period. 
  
 (b) Subsequent Offering Periods. Any individual who is an Employee as of the Enrollment Date of any future Offering Period shall be eligible to
participate in such Offering Period, subject to the requirements of Section 5. 
  
 (c) Limitations. Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any
other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing
five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Parent or Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock under all employee
stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company accrues at a rate which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value of the
stock at the time such option is granted) for each calendar year in which such option is outstanding at any time. 
  
 4. Offering Periods. The Plan shall be implemented by consecutive Offering Periods with a new Offering Period commencing on the first Trading Day
on or after February 1 and August 1 of each year, or on such other date as the Administrator shall determine, and continuing thereafter until terminated in accordance with Section 20; provided, however, that the first Offering Period under the Plan
shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective and ending on the first Trading Day on or after August 1, 2004; and provided,
further, that the second Offering Period under the Plan shall commence on the first Trading Day on or after August 1. The Administrator shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with
respect to future offerings without stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter. 
  
 5. Participation. 
  
 (a) First Offering Period. An Employee who has become a participant in the first Offering Period under the Plan pursuant to Section 3(a) shall be
entitled to continue his or her participation in such Offering Period only if he or she submits to the Company’s payroll office (or its designee) a properly completed subscription agreement authorizing payroll deductions in the form provided by
the Administrator for such purpose (i) no earlier than the effective date of the filing of the Company’s Registration Statement on Form S-8 with respect to the shares of Common Stock issuable under the Plan (the “Effective Date”) and
(ii) no later than five (5) business days from the 
  

 3 

 Effective Date (the “Enrollment Window”). A participant’s failure to submit the subscription agreement
during the Enrollment Window pursuant to this Section 5(a) shall result in the automatic termination of his or her participation in the first Offering Period under the Plan. 
  
 (b) Subsequent Offering Periods. An Employee who is eligible to participate in the Plan pursuant to Section 3(b) may
become a participant by (i) submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Enrollment Date, a properly completed subscription agreement authorizing
payroll deductions in the form provided by the Administrator for such purpose, or (ii) following an electronic or other enrollment procedure prescribed by the Administrator. 
  
 6. Payroll Deductions. 
  
 (a) At the time a participant enrolls in the Plan pursuant to Section 5, he or she shall elect to have payroll deductions made on each payday during the
Offering Period in an amount not exceeding 15% of the Compensation which he or she receives on each such payday. 
  
 (b) Payroll deductions authorized by a participant shall commence on the first payday following the Enrollment Date and shall end on the last payday in
the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10; provided, however, that for the first Offering Period under the Plan, payroll deductions shall commence on the
first payday on or following the end of the Enrollment Window. 
  
 (c) All payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only. A participant may not make any additional payments into such account. 
  
 (d) A participant may discontinue his or her participation in the Plan as
provided in Section 10, or may change the rate of his or her payroll deductions during the Offering Period by (i) properly completing and submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the
Administrator prior to an applicable Exercise Date, a new subscription agreement authorizing the change in payroll deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other procedure
prescribed by the Administrator; provided, however, that a participant may only make one payroll deduction change during each Offering Period. If a participant has not followed such procedures to change the rate of payroll deductions, the rate of
his or her payroll deductions shall continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). The Administrator may, in its sole discretion, limit the nature
and/or number of payroll deduction rate changes that may be made by participants during any Offering Period. Any change in payroll deduction rate made pursuant to this Section 6(d) shall be effective as of the first full payroll period following
five (5) business days after the date on which the change is made by the participant (unless the Administrator, in its sole discretion, elects to process a given change in payroll deduction rate more quickly). 
  
 (e) Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 3(c), a participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period. Subject to Section 423(b)(8) of the Code and Section 3(c) hereof, payroll deductions
shall recommence at the rate originally elected by the participant effective as of the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10.

  
 (f) At the time the option is exercised, in whole or in part,
or at the time some or all of the Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, 
  

 4 

 which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but
shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or
benefits attributable to the sale or early disposition of Common Stock by the Employee. 
  
 7. Grant of Option. On the Enrollment Date of each Offering Period, each Employee participating in such Offering Period shall be granted an option to purchase on each Exercise Date during such Offering Period
(at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such participant’s payroll deductions accumulated prior to such Exercise Date and retained in the participant’s account as of the Exercise
Date by the applicable Purchase Price; provided that in no event shall a participant be permitted to purchase during each Offering Period more than 1,667 shares of Common Stock (subject to any adjustment pursuant to Section 19), and provided further
that such purchase shall be subject to the limitations set forth in Sections 3(c) and 13. The Employee may accept the grant of such option (i) with respect to the first Offering Period under the Plan, by submitting a properly completed subscription
agreement in accordance with the requirements of Section 5(a) on or before the last day of the Enrollment Window, and (ii) with respect to any future Offering Period under the Plan, by electing to participate in the Plan in accordance with the
requirements of Section 5(b). The Administrator may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock that a participant may purchase during each Offering Period. Exercise of
the option shall occur as provided in Section 8, unless the participant has withdrawn pursuant to Section 10. The option shall expire on the last day of the Offering Period. 
  
 8. Exercise of Option. 
  
 (a) Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common Stock shall be
exercised automatically on the Exercise Date, and the maximum number of full shares subject to option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. No
fractional shares of Common Stock shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in the participant’s account for the subsequent
Offering Period, subject to earlier withdrawal by the participant as provided in Section 10. Any other monies left over in a participant’s account after the Exercise Date shall be returned to the participant. During a participant’s
lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her. 
  
 (b) Notwithstanding any contrary Plan provision, if the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with
respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or (ii) the number of shares of Common Stock
available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or
Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and continue all
Offering Periods then in effect, or (y) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be
practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase 
  

 5 

 Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20. The
Company may make pro rata allocation of the shares of Common Stock available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares of Common Stock for
issuance under the Plan by the Company’s stockholders subsequent to such Enrollment Date. 
  
 9. Delivery. As soon as administratively practicable after each Exercise Date on which a purchase of shares of Common Stock occurs, the Company shall arrange the delivery to each participant, as appropriate,
the shares purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion) and pursuant to rules established by the Administrator. No participant shall have any voting, dividend, or other stockholder
rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares have been purchased and delivered to the participant as provided in this Section 9. 
  
 10. Withdrawal. 
  
 (a) Under procedures established by the Administrator, a participant may
withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time by (i) submitting to the Company’s payroll office (or its designee) a written
notice of withdrawal in the form prescribed by the Administrator for such purpose, or (ii) following an electronic or other withdrawal procedure prescribed by the Administrator. All of the participant’s payroll deductions credited to his or her
account shall be paid to such participant as promptly as practicable after the effective date of his or her withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and no further payroll deductions
for the purchase of shares shall be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant re-enrolls in the
Plan in accordance with the provisions of Section 5. 
  
 (b) A
participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the
termination of the Offering Period from which the participant withdraws. 
  
 11. Termination of Employment. Upon a participant’s ceasing to be an Employee, for any reason, he or she shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to
such participant’s account during the Offering Period but not yet used to purchase shares of Common Stock under the Plan shall be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under
Section 15, and such participant’s option shall be automatically terminated. The preceding sentence notwithstanding, a participant who receives payment in lieu of notice of termination of employment shall be treated as continuing to be an
Employee for the participant’s customary number of hours per week of employment during the period in which the participant is subject to such payment in lieu of notice. 
  
 12. Interest. No interest shall accrue on the payroll deductions of a participant in the Plan. 
  
 13. Stock. 
  
 (a) Subject to adjustment upon changes in capitalization of the Company as
provided in Section 19, the maximum number of shares of Common Stock which shall be made available for sale under the Plan shall be 166,675 shares of Common Stock plus an annual increase to be added on the first day of the Company’s fiscal year
beginning in fiscal year 2004, 
  

 6 

 equal to the lesser of (i) 533,360 shares of Common Stock, (ii) 2% of the outstanding shares of Common Stock on such
date, or (iii) an amount determined by the Board. 
  
 (b) Shares
of Common Stock to be delivered to a participant under the Plan shall be registered in the name of the participant or in the name of the participant and his or her spouse. 
  
 14. Administration. The Board or a committee of members of the Board who shall be appointed from time to time by, and
shall serve at the pleasure of, the Board, shall administer the Plan. The Administrator shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility, to adjudicate all
disputed claims filed under the Plan and to establish such procedures that it deems necessary for administration of the Plan (including, without limitation, to adopt such procedures and sub-plans as are necessary or appropriate to permit the
participation in the Plan by employees who are foreign nationals or employed outside the United States). The Administrator, in its sole discretion and on such terms and conditions as it may provide, may delegate to one or more individuals all or any
part of its authority and powers under the Plan. Every finding, decision and determination made by the Administrator (or its designee) shall, to the full extent permitted by law, be final and binding upon all parties. 
  
 15. Designation of Beneficiary. 
  
 (a) A participant may designate a beneficiary who is to receive any shares
of Common Stock and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such
shares and cash. In addition, a participant may designate a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option. If a participant is
married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective. 
  
 (b) Such designation of beneficiary may be changed by the participant at any time. In the event of the death of a participant and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or
relative is known to the Company, then to such other person as the Company may designate. 
  
 (c) All beneficiary designations under this Section 15 shall be made in such form and manner as the Administrator may prescribe from time to time. 
  
 16. Transferability. Neither payroll deductions credited to a participant’s account nor any rights with regard
to the exercise of an option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15) by the
participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from an Offering Period in accordance with Section 10. 
  
 17. Use of Funds. All payroll deductions received or held by the
Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. Until shares of Common Stock are issued under the Plan (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent of the Company), a participant shall only have the rights of an unsecured creditor with respect to such shares. 
  

 7 

 18. Reports. Individual accounts shall be maintained for each participant in the Plan. Statements
of account shall be given to participating Employees at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any.

  
 19. Adjustments, Dissolution, Liquidation or Change of
Control. 
  
 (a) Adjustments. In the event that any
dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase,
or exchange of Common Stock or other securities of the Company, or other change in the corporate structure of the Company affecting the Common Stock such that an adjustment is determined by the Administrator (in its sole discretion) to be
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Administrator shall, in such manner as it may deem equitable, adjust the number and class of Common
Stock which may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised, and the numerical limits of Sections 7 and 13. 
  
 (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation. The Board shall notify each participant in writing, at least ten (10)
business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless
prior to such date the participant has withdrawn from the Offering Period as provided in Section 10. 
  
 (c) Change of Control. In the event of a Change of Control, each outstanding option shall be assumed or an equivalent option substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the option, any Offering Period then in progress shall be shortened by setting a new
Exercise Date (the “New Exercise Date”) and any Offering Period then in progress shall end on the New Exercise Date. The New Exercise Date shall be before the date of the Company’s proposed Change of Control. The Board shall notify
each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised
automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10. 
  
 20. Amendment or Termination. 
  
 (a) The Administrator may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19, no such termination can affect
options previously granted under the Plan, provided that an Offering Period may be terminated by the Administrator on any Exercise Date if the Administrator determines that the termination or suspension of the Plan is in the best interests of the
Company and its stockholders. Except as provided in Section 19 and this Section 20, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant. To the extent necessary to comply with
Section 423 of the Code 
  

 8 

 (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall
obtain stockholder approval in such a manner and to such a degree as required. 
  
 (b) Without stockholder consent and without regard to whether any participant rights may be considered to have been “adversely affected,” the Administrator shall be entitled to change the Offering Periods,
limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount
designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to
ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Administrator
determines in its sole discretion advisable which are consistent with the Plan. 
  
 (c) In the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or
desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: 
  
 (i) altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price; 
  
 (ii) shortening any Offering Period so that Offering Period ends on a new
Exercise Date, including an Offering Period underway at the time of the Board action; and 
  
 (iii) allocating shares. 
  
 Such modifications or
amendments shall not require stockholder approval or the consent of any Plan participants. 
  
 21. Notices. All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company
at the location, or by the person, designated by the Company for the receipt thereof. 
  
 22. Conditions Upon Issuance of Shares. Shares of Common Stock shall not be issued with respect to an option under the Plan unless the exercise of such option and the issuance and delivery of such shares
pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder, the Exchange Act and the
requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an option, the Company may require the person exercising such option to represent and
warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by
any of the aforementioned applicable provisions of law. 
  
 23.
Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the stockholders of the Company. It shall continue in effect until terminated under Section 20. 
  

 9 

 SAMPLE SUBSCRIPTION AGREEMENT 
  
 ALPHASMART, INC. 
 2003 EMPLOYEE STOCK PURCHASE PLAN 
 SUBSCRIPTION AGREEMENT 
  

	              Original Application
	 	Offering Date:
                        
	              Change in Payroll Deduction Rate
	 	 
	              Change of Beneficiary(ies)
	 	 

  

	1.	 	                                     hereby elects to
participate in the AlphaSmart, Inc. 2003 Employee Stock Purchase Plan (the “Plan”) and subscribes to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and the Plan. 

 

	2.	 	I hereby authorize payroll deductions from each paycheck in the amount of             % of my Compensation on each
payday (from 0 to [    ]%) during the Offering Period in accordance with the Plan. (Please note that no fractional percentages are permitted.) 

  

	3.	 	I understand that said payroll deductions shall be accumulated for the purchase of shares of Common Stock at the applicable Purchase Price determined in accordance with the Plan. I
understand that if I do not withdraw from an Offering Period, any accumulated payroll deductions will be used to automatically exercise my option. 

  

	4.	 	I have received a copy of the complete Plan. I understand that my participation in the Plan is in all respects subject to the terms of the Plan. I understand that my ability to
exercise the option under this Subscription Agreement is subject to stockholder approval of the Plan. 

  

	5.	 	Shares of Common Stock purchased for me under the Plan should be issued in the name(s) of Employee or Employee and Spouse only. 

  

	6.	 	I understand that if I dispose of any shares received by me pursuant to the Plan within two (2) years after the Offering Date (the first day of the Offering Period during which I
purchased such shares) or one (1) year after the Exercise Date, I will be treated for federal income tax purposes as having received ordinary income at the time of such disposition in an amount equal to the excess of the fair market value of the
shares at the time such shares were purchased by me over the price which I paid for the shares. I hereby agree to notify the Company in writing within thirty (30) days after the date of any disposition of my shares and I will make adequate
provision for federal, state or other tax withholding obligations, if any, which arise upon the disposition of the Common Stock. The Company may, but will not be obligated to, withhold from my compensation the amount necessary to meet any
applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by me. If I dispose of such shares at any time after the
expiration of the two (2)-year and one (1)-year holding periods, I understand that I will be treated for federal income tax purposes as having received income only at the time of such disposition, and that such income will be taxed as ordinary
income only to the extent of an amount equal to the lesser of (1) the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares, or (2) fifteen percent (15%) of the fair market

	    	 	value of the shares on the first day of the Offering Period. The remainder of the gain, if any, recognized on such disposition will be taxed as capital gain.

  

	7.	 	I hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan.

  

	8.	 	In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and/or shares due me under the Plan: 

  

	 NAME:  (Please print)
	 	  

	 	 	(First)	  	(Middle)	  	(Last)

  

	  

	    	  

	 Relationship
	    	 
	  

	    	  

	 Percentage Benefit                            
	    	 (Address)

  

	 NAME:  (please print)

	 	  	(First)          	  	(Middle)         	  	(Last)              

  

	  

	    	  

	 Relationship
	    	 
	  

	    	  

	             Percentage of Benefit            
	    	                  (Address)

  

 2 

	 Employee’s Social
	    	 
	 Security Number:
	    	  

	 Employee’s Address:
	    	  

	 	    	  

	 	    	  

  
 I UNDERSTAND THAT THIS SUBSCRIPTION
AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME. 
  

	 Dated:
	 	  

	 	  

	 	 	 	 	Signature of Employee
			
	 	 	 	 	  

	 	 	 	 	Spouse’s Signature (If beneficiary other than spouse)

  
  

 3 

 SAMPLE WITHDRAWAL NOTICE 
 ALPHASMART, INC. 
 2003 EMPLOYEE STOCK PURCHASE PLAN 
 NOTICE OF WITHDRAWAL 
  
 The undersigned participant in the Offering Period of the AlphaSmart, Inc. 2003 Employee Stock Purchase Plan which began on
                    ,              (the “Offering Date”) hereby
notifies the Company that he or she hereby withdraws from the Offering Period. He or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to such
Offering Period. The undersigned understands and agrees that his or her option for such Offering Period will be automatically terminated. The undersigned understands further that no further payroll deductions will be made for the purchase of shares
in the current Offering Period and the undersigned shall be eligible to participate in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 
  

	 Name and Address of Participant:

	
	  

	  

	  

	
	 Signature:

	
	  

	 Date:

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