Document:

Employment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 Employment Agreement (this “Agreement”) dated as of December 2, 2004 (the “Effective Date”), by and between Internap Network Services
Corporation, a Delaware corporation (the “Company”), and Gregory A. Peters (“Executive”) (collectively the “Parties”). 
  
 WITNESSETH: 
  
 WHEREAS, the Company and Executive entered into an Employment Agreement, dated as of March 28, 2002 (“Prior Employment Agreement”); and

  
 WHEREAS, the parties now desire to amend the Prior Employment
Agreement in a number of respects and to restate such agreement as hereinafter provided; and 
  
 WHEREAS, Executive desires to continue his employment with the Company on the terms and conditions provided herein; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, the parties hereby agree as follows:

  
 1. Position and Duties. Subject to the terms
and conditions of this Agreement, the Company hereby employs Executive, and Executive hereby accepts employment, as President and Chief Executive Officer of the Company and shall have such responsibilities, duties and authority as are commensurate
with such position and as may from time to time be assigned to Executive by the Board (as defined below). Executive hereby agrees that during the term of this Agreement he will devote substantially all his working time, attention and energies to the
diligent performance of his duties. Executive shall report to the Company’s Board of Directors and shall work from the Company’s headquarters office in Atlanta, Georgia. From and after January 1, 2006, and with the prior consent of the
Board and to the extent permitted under applicable law, Executive may serve as a director or trustee on the board of directors or trustees of one additional company or educational or charitable organization. 
  
 2. Base Salary. Executive shall receive an annual base salary of $
350,000 (“Base Salary”). Payment of Base Salary shall be subject to standard payroll tax withholdings and deductions. Executive’s Base Salary shall be paid semi-monthly in accordance with the Company’s standard payroll practices.
Executive’s Base Salary may be increased or decreased from time to time by the Company’s Board of Directors or the Compensation Committee of such Board of Directors (in either case, the “Board”) in their sole discretion.

  
 3. Performance-Based Bonus. While the Company
has not decided to implement a bonus plan (“Bonus”) for Executive and other senior executive officers at this time, should it do so in the future its present intention is that Executive’s Bonus would be from 50% to up to 150% of
Executive’s Base Salary, prorated if less than a full year. Performance metrics for the Bonus, if any, for 2004 shall be established by the Board and in their sole and reasonable discretion as soon as practicable after a determination has been
made to implement a Bonus plan for Executive and other senior executive officers. Performance metrics for and target amounts of the Bonus for 2005 and each subsequent calendar year shall be established on or before February 28 of the year to which
the Bonus relates. The Board in its sole and reasonable discretion shall determine, on or before February 28 of the year in which the Bonus would be payable, whether a Bonus is payable and, if so, the amount of such Bonus. Unless otherwise
determined by the Board, all Bonus payments shall be made on the Company’s first regular payroll date following such determination and shall be subject to standard payroll tax withholdings and deductions. To be eligible for a Bonus, Executive
must be continuously employed by the Company through the date on which the Bonus is paid. Executive recognizes and agrees that: (a) the Company may in its sole discretion and with reasonable notice to Executive determine that any Bonus, if payable,
may be paid in whole or in part in the Company’s common stock or other equity securities, including restricted stock and stock options; and (b) the Company may in its sole discretion suspend or discontinue any bonus program at any time without
any liability on the part of the Company. 

 4. Equity Compensation. The Board in its sole discretion may after the Effective Date award
additional options or equity or other equity-based compensation to Executive on terms, in amounts and subject to performance goals as determined by the Board (any such options, together with Company stock options heretofore granted to Executive,
also being referred to hereinafter as “Options” and any such equity or equity-based compensation being referred to herein as “Additional Equity Compensation”). 
  
 5. Employee Benefits. Executive shall be entitled to participate in all employee benefit, welfare and other plans and
programs generally applicable to employees of the Company. Except as provided herein, the Company reserves the right to modify Executive’s compensation and benefits from time to time as it deems necessary. 
  
 6. Vacation. Executive shall accrue twenty (20) days of combined
vacation/sick leave annually. Executive also shall receive three (3) personal days each year. Executive shall have the right to carry over unused vacation from any one-year period to any other subsequent one-year period. 
  
 7. Nature of Employment. Executive’s employment with the
Company shall be at-will. Both Executive and the Company shall have the right to terminate the employment relationship at any time, with or without cause, and with or without advance notice. 
  
 8. Severance Payments. Upon Executive’s involuntary termination
by the Company of employment without Cause (as defined below), Executive shall receive a cash severance payment equal to two (2) times Executive’s then-current Base Salary. Payment of such severance amounts shall be subject to standard payroll
tax withholdings and deductions. In addition to the severance benefits provided above, upon Executive’s involuntary termination of employment without Cause, all of Executive’s unvested Options and Additional Equity Compensation shall lapse
and expire, and all of Executive’s vested Options shall remain exercisable no later than three months after the date of termination. No payment or acceleration of Options or Additional Equity Compensation shall be made pursuant to this Section
8 unless prior to or concurrent with such payment a valid release has been executed and delivered by Executive and becomes effective in accordance with Section 11 hereof. Notwithstanding the immediately preceding sentence, Executive shall not be
entitled to any benefits or rights under this Section 8 if Executive also is eligible for payments and/or benefits under Section 9 hereof. 
  
 9. Change in Control Payments and Acceleration. Upon Executive’s involuntary termination of employment without Cause (as defined below)
or voluntary termination of employment for Good Reason, in either case within 12 months after a Change in Control, (i) the Company shall pay Executive a cash severance payment equal to two and one-half (2.5) times the sum of Executive’s
then-current Base Salary and maximum target Bonus and (ii) all of Executive’s unvested Options and Additional Equity Compensation shall become vested, free of restrictions and immediately exercisable for the remaining term of the relevant grant
or award. 
  
 Payment of such severance payments shall be
subject to standard payroll tax withholdings and deductions. 
  
 No payment or acceleration of Options or Additional Equity Compensation shall be made unless prior to or concurrent with such payment a valid release has been executed and delivered by Executive and becomes effective in accordance with
Section 11 hereof. 
  
 Executive will continue to receive the
healthcare and life insurance coverages in effect on his date of termination for twenty-four (24) months after the date of termination pursuant to this Section 9 just as if he had remained an active employee of the Company, subject to Executive
paying the customary employee portion of such coverages, provided that if the Company cannot continue to cover Executive under its plans, the Company will separately provide Executive with comparable coverages or pay Executive in a lump sum the
costs of such coverages. 
  
 For purposes of this
Agreement, “Change in Control” shall mean the happening of any of the following events: 
  
 (i) An acquisition by any individual, entity or group (within the meaning of Section 13 (d) (3) or 14 (d) (2) of the Exchange Act) (an “Entity”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (A) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the
combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); excluding, however, the following: (1) any acquisition
directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company, (2) any acquisition by the Company, (3) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (4) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of
subsection (iii) of this Section; 

 (ii) A change in the composition of the Board such that the individuals who, as of the Effective Date,
constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”), cease for any reason to constitute at least a majority of the Board; provided, however, that for purposes of this definition, any individual who
becomes a member of the Board subsequent to the Effective Date, whose election, or nomination for election, by the Company’s stockholders was approved by a vote of at least a majority of those individuals who are members of the Board and who
were also members of the Incumbent Board (or deemed to be such pursuant to this proviso), shall be considered as though such individual were a member of the Incumbent Board; and provided, further however, that any such individual whose initial
assumption of office occurs as a result of or in connection with either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents by or on behalf of an Entity other than the Board shall not be so considered as a member of the Incumbent Board; 
  
 (iii) The approval by the stockholders of the Company of a merger, reorganization or consolidation or sale or other disposition of all or substantially
all of the assets of the Company (each, a “Corporate Transaction”) or, if consummation of such Corporate Transaction is subject, at the time of such approval by stockholders, to the consent of any government or governmental agency, the
obtaining of such consent either explicitly or implicitly by consummation); excluding however, such a Corporate Transaction pursuant to which (A) all or substantially all of the individuals and entities who are the beneficial owners, respectively,
of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock,
and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a
corporation or other Person which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries (a “Parent Company”)) in substantially the same
proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Entity (other than the Company, any employee benefit plan
(or related trust) of the Company, such corporation resulting from such Corporate Transaction or, if reference was made to equity ownership of any Parent Company for purposes of determining whether clause (A) above is satisfied in connection with
the applicable Corporate Transaction, such Parent Company) will beneficially own, directly or indirectly, 50% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the
combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors unless such ownership resulted solely from ownership of securities of the Company prior to the Corporate
Transaction, and (C) individuals who were members of the Incumbent Board will immediately after the consummation of the Corporate Transaction constitute at least a majority of the members of the board of directors of the corporation resulting from
such Corporate Transaction (or, if reference was made to equity ownership of any Parent Company for purposes of determining whether clause (A) above is satisfied in connection with the applicable Corporate Transaction, of the Parent Company); or

  
 (iv) The approval by the stockholders of the Company of a
complete liquidation or dissolution of the Company. 
  
 For
purposes of this Agreement, “Cause” shall mean: 
  
 (i)
Executive’s conviction (including a plea of guilty or nolo contendere) of a crime involving theft, fraud, dishonesty or moral turpitude; 

 (ii) violation by Executive of the Company’s Code of Conduct or other material policies; 

 
 (iii) gross omission or gross dereliction of any statutory, common law or
other duty of loyalty to the company or any of its affiliates; or 
  
 (iv) repeated failure to carry out the duties of Executive’s position despite specific instructions to do so. 
  
 Executive shall not be deemed to have been terminated for “Cause” until there shall have been delivered to him written notice, not less than ten
(10) days prior to the proposed termination date, specifying the basis for such termination. With respect to clause (iv) above and in a situation where the Board has determined in its sole discretion that remediation is an effective remedy,
Executive shall not be deemed to have been involuntarily terminated for Cause unless and until a notice is delivered to Executive by the Board setting forth (i) the conduct deemed to qualify as Cause, (ii) reasonable action that would remedy such
objectionable conduct, and (iii) a period of time not to exceed thirty calendar days within which Executive may take such remedial action, and Executive shall not have taken such specified remedial action within period of time. 
  
 For purposes of this Agreement, Good Reason shall mean any one of the
following events which occurs without Executive’s written consent: (i) a significant adverse change in Executive’s job title, authority or responsibilities, including any change in the reporting relationship between Executive and the
Board; (ii) a significant reduction in Executive’s compensation and benefits from the compensation or benefits paid or provided in the prior fiscal year or calendar year; or (iii) a change of more than fifty (50) miles from Executive’s
permanent workplace without Executive’s consent. 
  
 10.
Parachute Payments. If any cash compensation payment, employee benefits or acceleration of vesting of stock options or other stock awards Executive would receive in connection with a Change in Control (“Payment”) would (i)
constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise
Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest
applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or
benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless Executive elects in writing a different order: reduction of cash payments; reduction
of employee benefits; and cancellation of accelerated vesting of stock awards. In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date
of grant of Executive’s stock awards unless Executive elects in writing a different order for cancellation. The accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change in Control
shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint a nationally recognized
accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within fifteen (15) calendar days after the date on which Executive’s right to a Payment arises (if requested at that time
by the Company or Executive) or at such other time as requested by the Company or Executive. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it
shall furnish the Company and Executive with an opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith determination of the accounting firm made hereunder shall be final, binding
and conclusive upon the Company and Executive. 

 11. Release. Upon termination of Executive’s employment, unless Executive shall have executed
and provided the Company with an effective release in a form reasonably satisfactory to the Company, Executive shall not receive any severance payments or benefits provided under this Agreement. 
  
 12. Confidentiality. Executive agrees that information not generally
known to the public to which he will be exposed as a result of his employment by the Company is confidential information that belongs to the Company. This includes information developed by Executive, alone or with others, or entrusted to the Company
by its customers or others. The Company’s confidential information includes, without limitation, information relating to the Company’s trade secrets, research and development, inventions, know-how, software, procedures, accounting,
marketing, sales, creative and marketing strategies, employee salaries and compensation, and the identities of customers and active prospects to the extent not publicly disclosed (collectively, “Confidential Information”). Executive will
hold the Company’s Confidential Information in strict confidence, and not disclose or use it except as authorized by the Company and for the Company’s benefit. 
  
 Executive further acknowledges and agrees that in order to enable the Company to perform services for its customers or
clients, such customers or clients may furnish to the Company certain Confidential Information, that the goodwill afforded to the Company depends upon the Company and its employees preserving the confidentiality of such information, and that such
information shall be treated as Confidential Information of the Company for all purposes under this Agreement. 
  
 13. Non-Competition. Executive recognizes and agrees that Internap has many substantial, legitimate business interests that can be protected only
by his agreement not to compete with Internap under certain circumstances. These interests include, without limitation and on a national basis, Internap’s contacts and relationships with its clients and active prospects, Internap’s
reputation and goodwill in the industry, and Internap’s rights in its Confidential Information. Therefore, Executive agrees that during the term of his employment with Internap and for a period of two (2) years after his employment ends for any
reason whatsoever, he shall not, voluntarily or involuntarily, directly or indirectly, on his own behalf or on the behalf of another, whether as an employee, contractor consultant, director or agent or in another capacity, engage in the businesses
of (i) managed high performance Internet connectivity, (ii) hosting or collocation services, (iii) virtual private network services (iv) content distribution network services or (v) any other line of business in which the Company is then engaged for
(x) any account that is a customer of Internap or its affiliates unless he is providing substantially different services to any such customer from the services he provided to Internap or (y) any competitor of Internap or its affiliates. 

 
 Executive also agrees that during the term of his employment with Internap
and for a period of one (1) year after such employment ends for any reason whatsoever, he shall not directly or indirectly employ or seek to employ any person employed by Internap nor directly or indirectly solicit or induce any such person to leave
Internap. 
  
 Executive acknowledges that the breach or threatened
breach of the above noncompetition and/or nondisclosure provisions would cause irreparable injury to Internap that could not be adequately compensated by money damages. Internap may obtain a restraining order and/or injunction prohibiting my breach
or threatened breach of the noncompetition and/or nondisclosure provisions, in addition to any other legal or equitable remedies that may be available. Executive agrees that the above noncompetition provision, including its duration, scope and
geographic extent, is fair and reasonably necessary to protect Internap’s client relationships, goodwill, Confidential Information and other protectable interests.  
  
 If Executive wishes to compete with the Company during the two-year period after his termination of employment, Executive
will submit a bona fide written offer of employment he has received from a prospective employer to the Company’s Chairman of the Board of Directors and General Counsel, who will analyze such proposed employment in light of the then current
facts and circumstances. The Chairman may, in his sole and reasonable discretion, provide a written waiver of all or a portion of the non-compete limitations imposed on Executive. If such written waiver is unreasonably withheld, Executive shall
remain subject to the non-compete limitations. The non-solicitation obligations set forth above are not subject to the potential waiver described in the preceding sentence and will remain in full force and effect pursuant to its terms. Executive
will fully defend, indemnify and hold harmless the Company for any claims brought against it by Executive or third parties as a result of any decision the Company makes not to waive Executive’s non-compete obligations. 

 14. No Restrictions. No Restrictions. Executive represents to the Company that he has not executed
or is not bound by any non-competition covenant or non-solicitation covenant or any other undertaking similar to either of the foregoing that would prevent him from performing the duties and responsibilities of the position set forth in Section 1 of
this Agreement. 
  
 15. Contract Non-Assignable. The
Parties acknowledge that this Agreement has been entered into due to, among other things, the special skills of Executive, and agree that this Agreement may not be assigned or transferred by Executive, in whole or in part, without the prior written
consent of the Company. 
  
 16. Successors: Binding Agreement.
In addition to any obligations imposed by law upon any successor to, or transferor of, the Company, the Company will require any successor to, or transferor of, all or substantially all of the business and/or assets of the Company or the stock
of the Company (whether direct or indirect, by purchase, merger, reorganization, liquidation, consolidation or otherwise) to expressly assume and agree to perform this Agreement, in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall constitute the basis for Executive to terminate the Executive’s
employment for Good Reason during the 90-day period after such succession and to receive the compensation and benefits provided in Section 9 above.  
  
 This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees and by the Company’s successors and assigns. If Executive shall die while any amount would still be payable to Executive hereunder (other than amounts which, by their terms, terminate upon
the death of Executive) if Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of
Executive’s estate. 
  
 17. Other Agents. Nothing in
this Agreement is to be interpreted as limiting the Company from employing other personnel on such terms and conditions as may be satisfactory to the Company. 
  

18. Notices. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and shall be deemed to
have been duly given if delivered or seven days after mailing if mailed, first class, certified mail, postage prepaid: 
  

			
	 To the Company:
	  	 Internap Network Services Corporation

	 	  	 250 Williams Street

	 	  	 Atlanta, Georgia 30303

	 	  	 ATTN: General Counsel, with a copy to the Chairman of the Board

		
	 To the Executive:
	  	 Gregory A. Peters

	 	  	 1022 Arbor Trace

	 	  	 Atlanta, Georgia 30319

  
 Any party may change
the address to which notices, requests, demands and other communications shall be delivered or mailed by giving notice thereof to the other party in the same manner provided herein. 
  
 19 Provisions Severable. If any provision or covenant, or any part thereof, of this Agreement should be held by any
court to be invalid, illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of the remaining provisions or covenants, or any part thereof, of
this Agreement, all of which shall remain in full force and effect. 
  
 20 Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right
granted in this Agreement or the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by the party making the waiver. 

 21. Indemnification. During the term of this Agreement and after Executive’s termination for
a period of three (3) years, the Company shall indemnify Executive and hold Executive harmless from and against any claim, loss or cause of action arising from or out of Executive’s performance as an officer, director or employee of the Company
or any of its subsidiaries or other affiliates or in any other capacity, including any fiduciary capacity, in which Executive serves at the Company’s request, in each case to the maximum extent permitted by law and under the Company’s
Articles of Incorporation and By-Laws (the “Governing Documents”), provided that in no event shall the protection afforded to Executive hereunder be less than that afforded under the Governing Documents as in effect on the date of this
Agreement except for changes mandated by law. During the term and for a period of three (3) years after Executive’s termination, Executive shall be covered in accordance with the terms of any policy of directors and officers liability insurance
maintained by the Company for the benefit of its officers and directors. 
  
 22. Amendments and Modifications. This Agreement may be amended or modified only by a writing signed by both parties hereto. 
  
 22. Governing Law. The validity and effect of this Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware. 
  
 23.
Review of Disputes; Expenses. All claims by Executive for compensation and benefits under this Agreement shall be directed to and determined by the Board and shall be in writing. Any denial by the Board of a claim for benefits under this
Agreement shall be delivered to Executive in writing and shall set forth the specific reasons for the denial and the specific provisions of this Agreement relied upon. The Board shall afford a reasonable opportunity to Executive for a review of a
decision denying a claim and shall further allow Executive to appeal to the Board a decision of the Board within sixty (60) days after notification by the Board that Executive’s claim has been denied. In the event the Executive incurs legal
fees and other expenses in seeking to obtain or to enforce any rights or benefits provided by this Agreement and is successful (other than in an immaterial way), in whole or in part, in obtaining or enforcing any material rights or benefits through
settlement, arbitration, litigation or otherwise, the Company shall promptly pay Executive’s reasonable legal fees and expenses incurred in enforcing this Agreement. Except to the extent provided in the preceding sentence, each party shall pay
its own legal fees and other expenses associated with any dispute. 
  
 24. Withholding of Taxes. All payments to Executive pursuant to the Agreement (whether prior to or after Executive’s termination of employment) shall be subject to applicable tax withholdings and deductions. 
  
 25. Entire Agreement. This Agreement constitutes the complete, final
and exclusive embodiment of the entire agreement between the Parties with regard to the subject matter hereof. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it
supersedes any other such promises or representations. 
  
 From
and after the Effective Date, this Agreement shall supersede any employment, severance, change of control or other agreement, including the Prior Employment Agreement, whether oral or written, between the Parties with respect to the subject matter
hereof (other than arrangements effected under compensation plans generally applicable to other senior executive officers of the Company). 
  
 26. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together
will constitute one and the same instrument. 

 IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the day and year first above written.

  

					
	INTERNAP NETWORK SERVICES CORPORATION	 	 
			
	 By
	 	 /s/ Eugene Eidenberg

	 	 /s/ Gregory A. Peters

	 Name:
	 	 Eugene Eidenberg
	 	Gregory A. Peters
	 Title:
	 	 Chairman of the BoardCtrip.com International Ltd 2005 Employee's Option Plan

 Exhibit 10.23 
  
 CTRIP.COM INTERNATIONAL LIMITED 
  
 2005 EMPLOYEES’ STOCK OPTION PLAN 
  

	1.	Purposes of the Plan 

  
 The purposes of this Plan are: 
  

	 	(a)	to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	(b)	to provide additional incentive to Employees, Directors and Consultants, and 

  

	 	(c)	to promote the success of the Company’s business. 

  

	 	Stock	Purchase Rights may also be granted under the Plan. 

  

	2.	Definitions 

  

			
		
	“Administrative Committee”	  	the Board or any of its Committees as shall be administering the Plan in accordance with Section 4 below.
		
	“Applicable Laws”	  	the requirements relating to the administration of stock option plans under any stock exchange or quotation system on which the Ordinary Shares are listed or quoted and the applicable laws of
any country or jurisdiction where Options or Stock Purchase Rights are granted under the Plan.
		
	“Board”	  	the Board of Directors of the Company.
		
	“Committee”	  	a committee of Directors appointed by the Board in accordance with Section 4 below.
		
	“Company”	  	CTRIP.COM INTERNAITONAL LIMITED, a company incorporated under the laws of Cayman Islands.
		
	“Consultant”	  	any person who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory services to such entity.

  

			
		
	“Director”	  	a member of the Board.
		
	“Disability”	  	any total and permanent disability which prevents the Service Provider to continue in such capacity.
		
	“Employee”	  	any person, including but not limited to Directors, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the
case:
		
	 	  	 (i)       any leave of absence approved by the Company; or

		
	 	  	 (ii)      transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or
any successor.

		
	“Fair Market Value”	  	as of any date, the value of Ordinary Shares is determined as follows:
		
	 	  	 (i)       if the Ordinary Shares are listed or publicly traded on any established stock exchange
or a national market system, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of
determination, as reported in The Wall Street Journal or such other resource as the Administrative Committee deems reliable.

  

 Page 2 

			
		
	 	  	 (ii)      if the Ordinary Shares are regularly quoted by a principal recognised securities dealer but selling
prices are not reported, its Fair Market Value shall be the average between the high bid and low asked prices for the Ordinary Shares on the last market trading day prior to the day of determination; or

		
	 	  	 (iii)    in the absence of an established market for the Ordinary Shares, the Fair Market Value thereof shall be
determined in good faith by the Administrative Committee after consultation with legal and accounting experts as the Administrative Committee may deem advisable.

		
	“Option”	  	a stock option granted pursuant to the Plan.
		
	“Option Agreement”	  	a written or electronic agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and
conditions of the Plan.
		
	“Option Exchange Program”	  	a program whereby outstanding Options are exchanged for Options with a lower exercise price.
		
	“Optioned Stock”	  	the Ordinary Shares subject to an Option or a Stock Purchase Right.
		
	“Optionee”	  	The holder of an outstanding Option or Stock Purchase Right granted under the Plan.
		
	“Ordinary Shares”	  	The ordinary shares of the Company.
		
	“Parent”	  	Any entity which holds directly or indirectly at least fifty point one percent (50.1%) of the voting equity of the Company.
		
	“Plan”	  	This Employees’ Stock Option Plan.

  

 Page 3 

			
		
	“Restricted Stock”	  	Shares of Ordinary Shares acquired pursuant to a grant of a Stock Purchase Right under Section 11 below.
		
	“Securities Act”	  	the securities exchange legislation of any applicable jurisdiction together with its amendments.
		
	“Service Provider”	  	an Employee, Director or Consultant.
		
	“Share” or “Shares”	  	a share or shares of the Ordinary Shares, as adjusted in accordance with Section 12 below.
		
	“Stock Purchase Right”	  	a right to purchase Ordinary Shares pursuant to Section 11 below.
		
	“Subsidiary”	  	any entity in which the Company holds directly or indirectly fifty point one percent (50.1%) or more of the voting equity.
		
	“Tax Law”	  	The relevant tax legislation of the applicable jurisdiction, as amended.

  
 Except where
otherwise indicated by the context, the masculine gender also shall include the feminine gender, and the definition of any term herein in the singular also shall include the plural. 
  

	3.	Stock Subject to the Plan 

  
 Subject to the provisions of Section 12 of the Plan, the maximum aggregate number of Shares which may be subject to option and sold under the Plan is
3,000,000 Shares for the period from January 1, 2005 to December 31, 2009 , with the condition that no more than 3% of the Company’s total shares outstanding shall be issued in 2005 excluding acquisitions. Additional Board approval shall be
required for share issuance in conjunction with acquisitions. 
  
 The grant schedule of options to senior executives, directors, and consultants shall be subject to further approval by the Administrative Committee. 
  

At all times during the term of the Plan and while any Option(s) or Stock Purchase Right(s) are outstanding, the Company shall retain as authorized and
unissued stock, or as treasury stock, at least the number 

  

 Page 4 

 
of Shares from time to time required under the provisions of the Plan, or otherwise assure itself of its ability to perform its obligations hereunder.

  
 If an Option or Stock Purchase Right expires or terminates
for any reason or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan
(unless the Plan has terminated). However, Shares that have actually been issued under the Plan, upon exercise of either an Option or Stock Purchase Right, shall not be returned to the Plan and shall not become available for future distribution
under the Plan, except that if Shares of Restricted Stock are repurchased by the Company at their original purchase price and cancelled, such Shares (which will then be authorised but unissued Shares) shall become available for future grant under
the Plan. 
  

	4.	Administration of the Plan 

  

	 	(a)	Administrative Committee 

  
 The Plan shall be administered by the Board or a Committee appointed by the Board, which Committee shall be constituted to comply with the Applicable
Laws. 
  

	 	(b)	Powers of the Administrative Committee 

  
 Subject to the provisions of the Plan and, in the case of a Committee, the specific duties delegated by the Board to such Committee, and subject to the
approval of any relevant authorities, the Administrative Committee shall have the authority in its discretion: 
  

	 	(i)	to determine the Fair Market Value; 

  

	 	(ii)	to select the Service Providers to whom Options and Stock Purchase Rights may from time to time be granted hereunder; 

  

	 	(iii)	to determine the number of Shares to be covered by each such award granted hereunder; 

  

	 	(iv)	to approve shares granted under the Plan to the senior executives and directors of the Company; 

  

	 	(v)	to approve forms of agreement for use under the Plan; 

  

 Page 5 

	 	(vi)	to determine the terms and conditions, of any Option or Stock Purchase Right granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the
time or times when Option or Stock Purchase Rights may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or Stock Purchase
Right or the Ordinary Shares relating thereto, based in each case on such factors as the Administrative Committee, in its sole discretion, shall determine; 

  

	 	(vii)	to determine whether and under what circumstances an Option may be settled in cash under subsection 9(e) below instead of Ordinary Shares; 

  

	 	(viii)	to reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market Value of the Ordinary Shares covered by such Option has declined since the date
the Option was granted; 

  

	 	(ix)	to initiate an Option Exchange Program; 

  

	 	(x)	to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for
preferred tax treatment under foreign tax law; 

  

	 	(xi)	to allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option or Stock Purchase Right
that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections
by Optionees to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrative Committee may deem necessary or advisable; and 

  

	 	(xii)	to construe and interpret the terms of the Plan and awards granted pursuant to the Plan. 

  

 Page 6 

	 	(c)	Effect of Administrative Committee’s Decision 

  
 All decisions, determinations and interpretations of the Administrative Committee pursuant to the provisions of the Plan shall be final conclusive and
binding on all Optionees. 
  

	5.	Eligibility 

  

	 	(a)	Stock Purchase Rights may be granted to Service Providers. 

  

	 	(b)	Neither the Plan nor any Option or Stock Purchase Right shall confer upon any Optionee any right with respect to continuing the Optionee’s relationship as a Service Provider
with the Company, nor shall it interfere in any way with his or her right or the Company’s right to terminate such relationship at any time, with or without cause. 

  

	6.	Term of Plan 

  
 Upon adoption by the Board, the Plan shall become effective on January 1, 2005. It shall continue in effect until December 31, 2009 unless sooner
terminated under Section 14 below. 
  

	7.	Term of Option 

  
 The term of each Option shall be stated in the Option Agreement; provided, however, that the term shall be no more than ten (10) years from the date of
grant thereof. In the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the term of the Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement. 
  

	8.	Option Exercise Price and Consideration 

  

	 	(a)	The per share exercise price for the Shares to be issued upon exercise of an Option shall be such price as is determined by the Administrative Committee, but may be granted with a
per Share exercise price other than as required above pursuant to a merger or other corporate transaction. 

  

	 	(b)	The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrative Committee. Such
consideration may consist of: 

  

	 	(i)	cash, 

  

 Page 7 

	 	(ii)	check payable to the order of the Company, 

  

	 	(iii)	promissory note, 

  

	 	(iv)	other Shares which (x) in the case of Shares acquired upon exercise of an Option, have been owned by the Optionee for more than six (6) months on the date of surrender, and (y) have
a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised, 

  

	 	(v)	consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, or 

  

	 	(vi)	any combination of the foregoing methods of payment. 

  
 In making its determination as to the type of consideration to accept, the Administrative Committee shall consider if acceptance of such consideration may
be reasonably expected to benefit the Company. 
  

	9.	Exercise of Option 

  

	 	(a)	Procedure for Exercise; Rights as a Shareholder 

  
 Any Option granted hereunder shall be exercisable according to the terms hereof at such times and under such conditions as determined by the
Administrative Committee and set forth in the Option Agreement. Except in the case of Options granted to Directors and Consultants, Options shall become exercisable at a rate of no less than twenty percent (20%) per year over five (5) years from the
date the Options are granted. Unless the Administrative Committee provides otherwise, vesting of Options granted hereunder to Directors shall be tolled during any unpaid leave of absence. An Option may not be exercised for a fraction of a Share.

  
 An Option shall be deemed exercised when the Company
receives: 
  

	 	(i)	written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and 

  

	 	(ii)	full payment for the Shares with respect to which the Option is exercised. 

  

 Page 8 

 Full payment may consist of any consideration and method of payment authorised by the Administrative
Committee and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the Shares
are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorised transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares,
notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date
the Shares are issued, except as provided in Section 12 below. 
  
 Exercise of an Option in any manner shall result in a decrease in the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

  

	 	(b)	Termination of Relationship as Service Provider 

  
 If an Optionee ceases to be a Service Provider, such Optionee may exercise his or her Option within such period of time as is specified in the Option
Agreement (of at least thirty (30) days) to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of the Option as set forth in the Option Agreement). In the absence of a specified
time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrative Committee, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan. 
  

	 	(c)	Disability of Optionee 

  
 If an Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, the Optionee may exercise his or her Option within such
period of time as is specified in the Option Agreement (of at least six (6) months) to the extent the Option is vested on the date of termination (but in no event later than the expiration of the 

  

 Page 9 

 
term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable
for twelve (12) months following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after
termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  

	 	(d)	Death of Optionee 

  
 If an Optionee dies while being a Service Provider, the Option may be exercised within such period of time as is specified in the Option Agreement (of at
least six (6) months) to the extent that the Option is vested on the date of death (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement) by the Optionee’s estate or by a person who acquires
the right to exercise the Option by bequest or inheritance. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination. If, at the time of death,
the Optionee is not vested as to the entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan. If the Option is not so exercised within the time specified herein, the Option shall terminate, and
the Shares covered by such Option shall revert to the Plan. 
  

	 	(e)	Buyout Provisions 

  
 The Administrative Committee may at any time offer to buy out an Option previously granted for a payment in cash or Shares, based on such terms and
conditions as the Administrative Committee shall establish and communicate to the Optionee at the time that such offer is made. 
  

	10.	Non-Transferability of Options and Stock Purchase Rights 

  
 The Option and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of succession and may be exercised, during the lifetime of the Optionee, only by the Optionee. 
  

 Page 10 

	11.	Stock Purchase Rights 

  

	 	(a)	Rights to Purchase 

  
 Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of
the Plan. After the Administrative Committee determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically of the terms, conditions and restrictions related to the offer, including the
number of Shares that such person shall be entitled to purchase, the price to be paid, and the time within which such person must accept such offer. 
  

	 	(b)	Repurchase Option 

  
 Unless the Administrative Committee determines otherwise, the Restricted Stock purchase agreement shall grant the Company a repurchase option exercisable
upon the voluntary or involuntary termination of the purchaser’s service with the Company for any reason (including death or disability). The purchase price for Shares repurchased pursuant to the Restricted Stock purchase agreement shall be the
original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at such rate as the Administrative Committee may determine. Except with respect to Shares
purchased Directors and Consultants, the repurchase option shall in no case lapse at a rate of less than 20% per year over five (5) years from the date of purchase. 
  

	 	(c)	Other Provisions 

  
 The Restricted Stock purchase agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by
the Administrative Committee in its sole discretion. 
  

	 	(d)	Rights as a Shareholder 

  
 Once the Stock Purchase Right is exercised, the purchaser shall have rights equivalent to those of a shareholder and shall be a shareholder when his or
her purchase is entered upon the records of the duly authorised transfer agent of the Company. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as
provided in Section 12 below. 
  

 Page 11 

	12.	Adjustments Upon Changes in Capitalization, Merger or Asset Sale 

  

	 	(a)	(i) Changes in Capitalization 

  
 Subject to any required action by the shareholders of the Company, the number of shares of Ordinary Shares covered by each outstanding Option or Stock
Purchase Right, and the number of shares of Ordinary Shares which have been authorised for issuance under the Plan but as to which no Options or Stock Purchase Rights have yet been granted or which have been returned to the Plan upon cancellation or
expiration of an Option or Stock Purchase Right, as well as the price per share of Ordinary Shares covered by each such outstanding Option or Stock Purchase Right, shall be proportionately adjusted for any increase or decrease in the number
of issued shares of Ordinary Shares resulting from a reclassification of the Ordinary Shares, or any other increase or decrease in the number of issued shares of Ordinary Shares effected without receipt of consideration by the Company. The
conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration”. Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding
and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Ordinary Shares subject to an Option or Stock Purchase Right. 
  
 (ii) Adjustments for Stock Split, Stock Dividend, Etc. 
  
 For avoidance of doubt, it is further stated if the Company shall at any time increase or decrease the number of its outstanding Shares of Ordinary
Shares, or change in any way the rights and privileges of such Shares by means of the payment of a stock dividend or any other distribution upon such Shares, or through a stock split, subdivision, consolidation, combination, reclassification or
recapitalization involving the stock, then in relation to the Ordinary Shares that is affected by one or more of the above events, the numbers, rights and privileges of the following shall be increased, decreased or changed in like manner as if such
Shares had been issued and outstanding, fully paid and nonassessable at the time of such occurrence: (I) the number of shares of Ordinary Shares as to which Options may be granted under the Plan: and (ii) the Shares included in each outstanding
Option granted hereunder. 
  

 Page 12 

	 	(b)	Dissolution or Liquidation 

  
 In the event of the proposed dissolution or liquidation of the Company, the Administrative Committee shall notify each Optionee as soon as practicable
prior to the effective date of such proposed transaction. The Administrative Committee in its discretion may provide for an Optionee to have the right to exercise his or her Option or Stock Purchase Right until fifteen (15) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option or Stock Purchase Right would not otherwise be exercisable. In addition, the Administrative Committee may provide that any Company repurchase option
applicable to any Shares purchased upon exercise of any Option or Stock Purchase Right shall lapse as to all such Shares, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has
not been previously exercised, an Option or Stock Purchase Right will terminate immediately prior to the consummation of such proposed action. 
  

	 	(c)	Merger or Asset Sale 

  
 In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding
Option and Stock Purchase Right shall be assumed or an equivalent option or right substituted by the successor corporation or Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or
substitute for the Option or Stock Purchase Right, the Optionee shall fully vest in and have the right to exercise the Option or Stock Purchase Right as to all of the Optioned Stock, including Shares as to which it would not otherwise be vested or
exercisable. If an Option or Stock Purchase Right becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrative Committee shall notify the Optionee in writing or
electronically that the Option or Stock Purchase Right shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Option or Stock Purchase Right shall terminate upon the expiration of such period. For the
purposes of this paragraph, the Option or Stock Purchase Right shall be considered assumed if, following the merger or sale of assets, the option or right confers the right to purchase or receive, for each Share of Optioned Stock subject to the
Option or Stock Purchase Right immediately prior to the merger of sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Ordinary Shares for each Share held on
the effective date of the transaction (and if holders were offered a choice of consideration, 

  

 Page 13 

 
the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the
merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrative Committee may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the
Option or Stock Purchase Right, for each Share of Optioned Stock subject to the Option or Stock Purchase right, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received
by holders of Ordinary Shares in the merger or sale of assets. 
  

	 	(d)	General Adjustment Rules 

  
 If any adjustment or substitution provided for in this Section 12 shall result in the creation of a fractional Share under any Option, the Company shall,
in lieu of issuing such fractional Share, pay to the Optionee a cash sum in the amount equal to the product of such fraction multiplied by the Fair Market Value of a Share on the date the fractional Share otherwise would have been issued.

  

	 	(e)	Determination by Incentive Plan Committee 

  
 Adjustments under this Section 12 shall be made by the Administrative Committee whose determinations with regard thereto shall be final and binding upon
all parties. 
  

	13.	Time of Granting Options and Stock Purchase Rights 

  
 The date of grant of an Option or Stock Purchase Right shall, for all purposes, be the date on which the Administrative Committee makes the determination
granting such Option or Stock Purchase Right, or such other date as is determined by the Administrative Committee. Notice of the determination shall be given to each Service Provider to whom an Option or Stock Purchase Right is so granted within a
reasonable time after the date of such grant. 
  

	14.	Amendment and Termination of the Plan 

  

	 	(a)	Amendment and Termination 

  
 The Board may at any time amend, alter, suspend or terminate the Plan. 
  

 Page 14 

	 	(b)	Shareholder Approval 

  
 The Board shall obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 
  

	 	(c)	Effect of Amendment or Termination 

  
 No amendment, alternation, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise in meeting
between the Optionee and the Administrative Committee. Termination of the Plan shall not affect the Administrative Committee’s ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the
date of such termination. 
  

	15.	Conditions Upon Issuance of Shares 

  

	 	(a)	Legal Compliance 

  
 Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such Shares shall
comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  

	 	(b)	The payment of cash pursuant to the Plan shall be subject to all Applicable laws, rules and regulations. 

  

	 	(c)	Investment Representations 

  
 As a condition to the exercise of an Option, the Administrative Committee 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. 
  

	16.	Inability to Obtain Authority 

  
 The inability of the Company to obtain authority from any regulatory body having jurisdiction shall relieve the Company of any liability in respect of the
failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
  

	17.	General Reservations 

  

	 	(a)	The Company may require any person to whom an Option is granted, as a condition of exercising such Option or receiving 

  

 Page 15 

 Shares pursuant to the Plan, to give written assurances, in the substance and form satisfactory to the
Company and its counsel, to the effect that such person is acquiring the Shares subject to the Option for his own account for investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as
the Company deems necessary or appropriate in order to comply with applicable securities laws. 
  

	 	(b)	The Administrative Committee may provide that Shares issuable upon the exercise of an Option shall, under certain conditions, be subject to restrictions whereby the Company has a
right of first refusal with respect to such shares, which restrictions may survive an Optionee’s term of employment with the Company. 

  

	18.	Shareholder Approval 

  
 The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months after the date the Plan is adopted. Such shareholder
approval shall be obtained in the degree and manner required under Applicable Laws. 
  

	19.	Information to Optionees and Purchasers 

  
 The Company shall provide to each Optionee and to each individual who acquires Shares pursuant to the Plan, not less frequently than annually during the
period such Optionee or purchaser has one or more Options or Stock Purchase Rights outstanding, and, in the case of an individual who acquires Shares pursuant to the plan, during the period such individual owns such Shares, copies of annual
financial statements. The Company shall not be required to provide such statements to key employees whose duties in connection with the Company assure their access to equivalent information. 
  

	20.	Withholding 

  
 The Company’s obligations to deliver Shares upon the exercise of an Option or Stock Purchase Right shall be subject to the Optionee’s
satisfaction of all applicable federal, state and local income and other tax withholding requirements of applicable jurisdiction. 
  
 At the time an Option is exercised by the Optionee, the Administrative Committee in its sole discretion, may permit the Optionee to pay all such amounts
of tax withholding, or any part thereof, by transferring to the Company, or directing the Company to withhold from Shares otherwise issuable to such Optionee, Shares having a value equal Administrative Committee at such time. The value of Shares to
be withheld shall be 

  

 Page 16 

 
based on the Fair Market Value of the Administrative Committee on the date that the amount of tax to be withheld is to be determined. 
  

	21.	Nonexclusivity of the Plan 

  
 Neither the adoption of the Plan by the Board nor the submission of the Plan to stockholders of the Company for approval shall be construed as creating
any limitations on the power or authority of the Board to adopt such other or additional incentive or other compensation arrangements of whatever nature as the Board may deem necessary or desirable or preclude or limit the continuation of any other
plan, practice or arrangement for the payment of compensation or fringe benefits to the payment of compensation or fringe benefits to employees generally, or to any class or group of employees, which the Company or any Parent or Subsidiary now has
lawfully put into effect, including, without limitation, any retirement, pension, savings and stock purchase plan, insurance, death and disability benefits and executive short-term incentive plans. 
  
 - E N D - 
  

 Page 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]