Document:

exv10w9

 

Exhibit 10.9

IRIDEX CORPORATION

SEPARATION AGREEMENT AND RELEASE

     This Separation Agreement and Release (“Agreement”) is made by and between Barry Caldwell
(“Employee”) and IRIDEX Corporation (the “Company”) (collectively referred to as the “Parties” or
individually referred to as a “Party”).

     WHEREAS, Employee was employed by the Company;

     WHEREAS, Employee signed an At-Will Employment, Confidential Information, Invention
Assignment, and Arbitration Agreement with the Company on July 5, 2005 (the “Confidentiality
Agreement”);

     WHEREAS, the Company and Employee have entered into (i) a stock option agreement (the “Stock
Option Agreement”) dated July 5, 2005 issued pursuant to the Company’s 1998 Stock Plan, pursuant to
which Employee was granted the option to purchase up to 65,896 shares of the Company’s Common Stock
subject to the terms and conditions of the Company’s 1998 Stock Plan and the Stock Option
Agreement, (ii) the Caldwell Inducement Grant Stock Option Agreement dated July 5, 2005, pursuant
to which Employee was granted the option to purchase up to 234,104 shares of the Company’s Common
Stock granting Employee the option to purchase shares of the Company’s common stock (the
“Inducement Option” and, collectively with the Stock Option Agreement, the “Stock Agreements”),
and (iii) a Change of Control and Severance Agreement dated July 5, 2005 (the “Change of Control
and Severance Agreement”);

     WHEREAS, Employee resigned all positions as an officer, director and employee with the Company
effective as of October 16, 2007 (the “Termination Date”); and

     WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances,
charges, actions, petitions, and demands that the Employee may have against the Company and any of
the Releasees (as defined below), including, but not limited to, any and all claims arising out of
or in any way related to Employee’s employment with or separation from the Company.

     NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee
hereby agree as follows:

     1. Consideration.

          a. Amendments to Stock Agreements. The Company and Employee hereby agree that the
Stock Agreements shall be amended as described below, effective as of the Effective Date (as
defined below):

               i. Extension of Exercise Period. The provision titled “Termination Period” in each of
the Stock Option Agreement and the Inducement Option Agreement is hereby amended to provide that
the option governed by each such agreement may be exercised for a period of 18 months following the
Termination Date, rather than 90 days following termination.

               ii. Definition of Service Provider. The definition of “Service Provider” contained in
the Inducement Option Agreement and as used in the Stock Option Agreement (by

 

 

reference to the Company’s 1998 Stock Plan, which shall not be effected by this Agreement)
is hereby amended to read as follows: “ “Service Provider” means an Employee or Director.”

               iii. Vested Options. The Parties agree that for purposes of determining the number of
shares of the Company’s common stock that Employee is entitled to purchase from the Company,
pursuant to the exercise of outstanding options, Employee will be considered to have vested up to
and through November 5, 2007. Employee acknowledges that as of the November 5, 2007, Employee will
have vested in 175,002 options and no more.

          b. Consulting Agreement. The Company and Employee hereby agree to enter into a
consulting agreement in substantially the form attached hereto as Exhibit A (the
“Consulting Agreement”), pursuant to which Employee will provide the consulting services described
therein for a period of three (3) months in exchange for the Company’s payment of a monthly
consulting fee equal to $20,000, on the terms and subject to the conditions set forth in the
Consulting Agreement.

          c. COBRA Payments. If Employee properly elects continuation coverage under the
Company’s group health plan pursuant to Sections 601 through 607 of the Employee Retirement Income
Security Act of 1974, as amended (“COBRA”), the Company will pay the full COBRA premium on behalf
of Employee and his enrolled family members for the period beginning on the Effective Date, and
ending on the earlier of (a) the three (3) month anniversary of the Effective Date, (b) the
termination of the Consulting Agreement, (c) the date Employee first becomes eligible for coverage
under any group health plan maintained by another employer of Employee or his spouse, or (d) the
date such COBRA continuation coverage otherwise terminates as to Employee under the provisions of
the Company’s group health plan. Nothing herein shall be deemed to extend the otherwise applicable
maximum period in which COBRA continuation coverage is provided or supersede the plan provisions
relating to early termination of such COBRA continuation coverage.

          d. Personal Computer. Employee may retain his current personal computer environment
that was provided to him by the Company for his use during his employment with the Company;
provided, however, that Employee shall return the personal computer to the Company on or before the
termination of the Consulting Agreement, so that the Company may remove any confidential or
proprietary information belonging to the Company and any computer programs that are licensed to the
Company. Employee covenants and agrees that he will not make or retain copies of any such
information. To ensure that all of its confidential and proprietary information and/or computer
programs have been removed from the Employee’s personal computer, the Company may, at its sole
option, exchange the hard drive contained in the laptop computer for a new hard drive provided that
the new hard drive has at least the same processing speed, memory capacity, and other similar
characteristics.

     2. Benefits. Employee’s health insurance benefits shall cease on the last day of
October 2007, subject to Employee’s right to continue his/her health insurance under COBRA.
Employee’s participation in all benefits and incidents of employment, including, but not limited to
the accrual of bonuses, vacation, and paid time off, ceased as of the Termination Date; provided,
however, that pursuant to Section 1.a.iii. above, Employee will be considered to have vested in the
shares covered by the Stock Agreements up to and through November 5, 2007.

     3. Payment of Salary and Receipt of All Benefits. Employee acknowledges and
represents that (a) other than the consideration set forth in this Agreement, the Company has paid
or provided all

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salary, wages, bonuses, accrued vacation/paid time off, housing allowances,
relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses for which
reimbursement documentation has been submitted to the Company, commissions, stock, stock options,
vesting, and any and all other benefits and compensation due to Employee and (b) Employee is not
entitled to and will not receive any benefits pursuant to the Change of Control and Severance
Agreement. Notwithstanding the foregoing, the Parties hereby agree that in the event that Employee
has any validly reimbursable expenses outstanding as of the date hereof for which reimbursement
documentation has not previously been submitted to the Company, Employee shall submit such
reimbursement documentation as soon as reasonably practicable following the date hereof and the
Company shall reimburse such amounts pursuant to its standard expense reimbursement policies.

     4. Release of Claims. Employee agrees that the foregoing consideration represents
settlement in full of all outstanding obligations owed to Employee by the Company and its current
and former officers, directors, employees, agents, investors, attorneys, shareholders,
administrators, affiliates, benefit plans, plan administrators, insurers, divisions, and
subsidiaries, and predecessor and successor corporations and assigns (collectively, the
“Releasees”). Employee, on his own behalf and on behalf of his respective heirs, family members,
executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to
sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge,
duty, obligation, or cause of action relating to any matters of any kind, whether presently known
or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees
arising from any omissions, acts, facts, or damages that have occurred up until and including the
Effective Date of this Agreement, including, without limitation:

          a. any and all claims relating to or arising from Employee’s employment relationship with the
Company and the termination of that relationship;

          b. any and all claims relating to, or arising from, Employee’s right to purchase, or actual
purchase of shares of stock of the Company, including, without limitation, any claims for fraud,
misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law,
and securities fraud under any state or federal law;

          c. any and all claims for wrongful discharge of employment; termination in violation of public
policy; discrimination; harassment; retaliation; breach of contract, both express and implied;
breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel;
negligent or intentional infliction of emotional distress; fraud; negligent or intentional
misrepresentation; negligent or intentional interference with contract or prospective economic
advantage; unfair business practices; defamation; libel; slander; negligence; personal injury;
assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

          d. any and all claims for violation of any federal, state, or municipal statute, including,
but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the
Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the
Fair Labor Standards Act, except as prohibited by law; the Fair Credit Reporting Act; the Age
Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee
Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act;
the Family and Medical Leave Act, except as prohibited by law; the Sarbanes-Oxley Act of 2002; the
Uniformed Services Employment and Reemployment Rights Act; the California Family Rights Act; the

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California Labor Code, except as prohibited by law; the California Workers’ Compensation Act,
except as prohibited by law; and the California Fair Employment and Housing Act;

          e. any and all claims for violation of the federal or any state constitution;

          f. any and all claims arising out of any other laws and regulations relating to employment or
employment discrimination;

          g. any claim for any loss, cost, damage, or expense arising out of any dispute over the
non-withholding or other tax treatment of any of the proceeds received by Employee as a result of
this Agreement; and

          h. any and all claims for attorneys’ fees and costs.

Employee agrees that the release set forth in this section shall be and remain in effect in all
respects as a complete general release as to the matters released. This release does not extend to
any obligations incurred under this Agreement. This release does not release claims that cannot be
released as a matter of law, including, but not limited to: (1) Employee’s right to file a charge
with or participate in a charge by the Equal Employment Opportunity Commission, or any other local,
state, or federal administrative body or government agency that is authorized to enforce or
administer laws related to employment, against the Company (with the understanding that any such
filing or participation does not give Employee the right to recover any monetary damages against
the Company; Employee’s release of claims herein bars Employee from recovering such monetary relief
from the Company); (2) claims under Division 3, Article 2 of the California Labor Code (which
includes California Labor Code section 2802 regarding indemnity for necessary expenditures or
losses by employee); and (3) claims prohibited from release as set forth in California Labor Code
section 206.5 (specifically “any claim or right on account of wages due, or to become due, or made
as an advance on wages to be earned, unless payment of such wages has been made”).

     5. Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges that he is
waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967
(“ADEA”), and that this waiver and release is knowing and voluntary. Employee agrees that this
waiver and release does not apply to any rights or claims that may arise under the ADEA after the
Effective Date of this Agreement. Employee acknowledges that the consideration given for this
waiver and release is in addition to anything of value to which Employee was already entitled.
Employee further acknowledges that he has been advised by this writing that: (a) he should consult
with an attorney prior to executing this Agreement; (b) he has twenty-one (21) days within
which to consider this Agreement; (c) he has seven (7) days following his execution of this
Agreement to revoke this Agreement; (d) this Agreement shall not be effective until after the
revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee
from challenging or seeking a determination in good faith of the validity of this waiver under the
ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless
specifically authorized by federal law. In the event Employee signs this Agreement and returns it
to the Company in less than the 21-day period identified above, Employee
hereby acknowledges that he has freely and voluntarily chosen to waive the time period
allotted for considering this Agreement.

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     6. California Civil Code Section 1542. Employee acknowledges that he has been advised
to consult with legal counsel and is familiar with the provisions of California Civil Code Section
1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR

SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH

IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH

THE DEBTOR.

     Employee, being aware of said code section, agrees to expressly waive any rights he/she may
have thereunder, as well as under any other statute or common law principles of similar effect.

     7. No Pending or Future Lawsuits. Employee represents that he has no lawsuits,
claims, or actions pending in his name, or on behalf of any other person or entity, against the
Company or any of the other Releasees. Employee also represents that he does not intend to bring
any claims on his own behalf or on behalf of any other person or entity against the Company or any
of the other Releasees.

     8. Application for Employment. Employee understands and agrees that, as a condition
of this Agreement, Employee shall not be entitled to any employment with the Company, and Employee
hereby waives any right, or alleged right, of employment or re-employment with the Company.
Employee further agrees not to apply for employment with the Company.

     9. Confidentiality. Employee agrees to maintain in complete confidence the existence
of this Agreement, the contents and terms of this Agreement, and the consideration for this
Agreement (hereinafter collectively referred to as “Separation Information”). Except as required
by law, Employee may disclose Separation Information only to his immediate family members, the
court in any proceedings to enforce the terms of this Agreement, Employee’s undersigned counsel,
and Employee’s accountant and any professional tax advisor to the extent that they need to know the
Separation Information in order to provide advice on tax treatment or to prepare tax returns, and
must prevent disclosure of any Separation Information to all other third parties. Employee agrees
that he will not publicize, directly or indirectly, any Separation Information.

     10. Trade Secrets and Confidential Information/Company Property. Employee reaffirms
and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically
including the provisions therein regarding non-disclosure of the Company’s trade secrets and
confidential and proprietary information, and non-solicitation of Company employees. Employee’s
signature below constitutes his certification under penalty of perjury that he has returned all
documents and other items provided to Employee by the Company, developed or obtained by Employee in
connection with his employment with the Company, or otherwise belonging to the Company.

     11. No Cooperation. Employee agrees not to act in any manner that might damage the
business of the Company. Employee further agrees that he will not knowingly encourage, counsel, or
assist any attorneys or their clients in the presentation or prosecution of any disputes,
differences,
grievances, claims, charges, or complaints by any third party against any of the Releasees,
unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in
this Agreement. Employee agrees both to immediately notify the Company upon receipt of any such
subpoena or court

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order, and to furnish, as soon as practicable and, in any case, within three (3)
business days of its actual receipt by Employee or his obtaining knowledge thereof, a copy of such
subpoena or other court order. If approached by anyone for counsel or assistance in the
presentation or prosecution of any disputes, differences, grievances, claims, charges, or
complaints against any of the Releasees, Employee shall state no more than that he/she cannot
provide counsel or assistance.

     12. Non-Disparagement. Employee agrees to refrain from any disparagement, defamation,
libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference
with the contracts and relationships of any of the Releasees. Employee shall direct any inquiries
by potential future employers to the Company’s human resources department, which shall use its best
efforts to provide only the Employee’s last position and dates of employment. Company agrees to
refrain from any disparagement, defamation, libel, or slander of Employee, and agrees to refrain
from any tortious interference with the contracts and relationships of Employee.

     13. Breach. Employee acknowledges and agrees that any material breach of this
Agreement, unless such breach constitutes a legal action by Employee challenging or seeking a
determination in good faith of the validity of the waiver herein under the ADEA, or of any
provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or
cease providing the consideration provided to Employee under this Agreement, except as provided by
law. Except as provided by law, Employee shall also be responsible to the Company for all costs,
attorneys’ fees, and any and all damages incurred by the Company in (a) enforcing Employee’s
obligations under this Agreement or the Confidentiality Agreement, including the bringing of any
action to recover the consideration, and (b) defending against a claim or suit brought or pursued
by Employee in violation of the terms of this Agreement.

     14. No Admission of Liability. Employee understands and acknowledges that this
Agreement constitutes a compromise and settlement of any and all actual or potential disputed
claims by Employee. No action taken by the Company hereto, either previously or in connection with
this Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity of any
actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or
liability whatsoever to Employee or to any third party.

     15. Non-Solicitation. Employee agrees that for a period of twelve (12) months
immediately following the Effective Date of this Agreement, Employee shall not directly or
indirectly solicit any of the Company’s employees to leave their employment at the Company. For
purposes of this paragraph, the term “solicit” shall be deemed not to include advertisements or
other generalized employment searches, including advertisements in various media (including trade
media) or any job posting system, not specifically directed to employees of the Company and shall
not include any action by Employee following any response by any person to such advertisements or
generalized searches or any communication initiated by such person and not by Employee.

     16. Costs. The Parties shall each bear their own costs, attorneys’ fees, and other
fees incurred in connection with the preparation of this Agreement.

     17. ARBITRATION. THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS
OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT
TO ARBITRATION IN SANTA CLARA COUNTY, BEFORE JAMS, PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES

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& PROCEDURES (“JAMS RULES”). THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES.
THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH CALIFORNIA LAW,
INCLUDING THE CALIFORNIA CODE OF CIVIL PROCEDURE, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND
PROCEDURAL CALIFORNIA LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW
PROVISIONS OF ANY JURISDICTION. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH CALIFORNIA LAW,
CALIFORNIA LAW SHALL TAKE PRECEDENCE. THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE,
AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY
ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO
ENFORCE THE ARBITRATION AWARD. THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE
COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE
COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND
COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW. THE PARTIES HEREBY AGREE TO WAIVE
THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY.
NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE
RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND
THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED
HEREIN BY REFERENCE. SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS PARAGRAPH
CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS
ARBITRATION AGREEMENT SHALL GOVERN.

     18. Tax Consequences. The Company makes no representations or warranties with respect
to the tax consequences of the payments and any other consideration provided to Employee or made on
his/her behalf under the terms of this Agreement. Employee agrees and understands that he is
responsible for payment, if any, of local, state, and/or federal taxes on the payments and any
other consideration provided hereunder by the Company and any penalties or assessments thereon.
Employee further agrees to indemnify and hold the Company harmless from any claims, demands,
deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any
government agency against the Company for any amounts claimed due on account of (a) Employee’s
failure to pay or the Company’s failure to withhold, or Employee’s delayed payment of, federal or
state taxes, or (b) damages sustained by the Company by reason of any such claims, including
attorneys’ fees and costs.

     19. Authority. The Company represents and warrants that the undersigned has the
authority to act on behalf of the Company and to bind the Company and all who may claim through it
to the terms and conditions of this Agreement. Employee represents and warrants that he has the
capacity to act on his own behalf and on behalf of all who might claim through him to bind them to
the terms and conditions of this Agreement. Each Party warrants and represents that there are no
liens or claims of
lien or assignments in law or equity or otherwise of or against any of the claims or causes of
action released herein.

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     20. No Representations. Employee represents that he has had an opportunity to consult
with an attorney, and has carefully read and understands the scope and effect of the provisions of
this Agreement. Employee has not relied upon any representations or statements made by the Company
that are not specifically set forth in this Agreement.

     21. Severability. In the event that any provision or any portion of any provision
hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent
jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in
full force and effect without said provision or portion of provision.

     22. Attorneys’ Fees. Except with regard to a legal action challenging or seeking a
determination in good faith of the validity of the waiver herein under the ADEA, in the event that
either Party brings an action to enforce or effect its rights under this Agreement, the prevailing
Party shall be entitled to recover its costs and expenses, including the costs of mediation,
arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with
such an action.

     23. Entire Agreement. This Agreement, together with the Confidentiality Agreement,
the Consulting Agreement and the Stock Agreements, as amended by this Agreement, represents the
entire agreement and understanding between the Company and Employee concerning the subject matter
of this Agreement and Employee’s employment with and separation from the Company and the events
leading thereto and associated therewith, and supersedes and replaces any and all prior agreements
and understandings concerning the subject matter of this Agreement and Employee’s relationship with
the Company, including the Change of Control and Severance Agreement. For the avoidance of doubt,
Employee hereby acknowledges and agrees that he is not entitled to and shall not receive any
benefits pursuant to the Change of Control and Severance Agreement.

     24. No Oral Modification. This Agreement may only be amended in a writing signed by
Employee and the Company’s Chief Executive Officer.

     25. Governing Law. This Agreement shall be governed by the laws of the State of
California, without regard for choice-of-law provisions. Employee consents to personal and
exclusive jurisdiction and venue in the State of California.

     26. Effective Date. Each Party has seven (7) days after that Party signs this
Agreement to revoke it. This Agreement will become effective on the eighth (8th) day after
Employee signed this Agreement, so long as it has been signed by the Parties and has not been
revoked by either Party before that date (the “Effective Date”).

     27. Counterparts. This Agreement may be executed in counterparts and by facsimile,
and each counterpart and facsimile shall have the same force and effect as an original and shall
constitute an effective, binding agreement on the part of each of the undersigned.

     28. Voluntary Execution of Agreement. Employee understands and agrees that he/she
executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of
the Company or any third party, with the full intent of releasing all of his/her claims against
the Company and any of the other Releasees. Employee acknowledges that:

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	 	(a)	 	he has read this Agreement;
	 
	 	(b)	 	he has been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of his/her own choice or has
elected not to retain legal counsel;
	 
	 	(c)	 	he understands the terms and consequences of this Agreement and
of the releases it contains; and
	 
	 	(d)	 	he is fully aware of the legal and binding effect of this Agreement.

     29. Stock Agreements Remaining in Full Force and Effect. Except as specifically
provided by this Agreement, the Stock Agreements shall remain in full force and effect, unamended
by this Agreement.

     30. Further Assurances. The Parties agree to execute any and all documents, consents
and instruments and to take all actions and to do all things necessary or appropriate to effectuate
the purposes and intents of this Agreement, and, in furtherance and not limitation thereof,
Employee hereby agrees to execute and deliver to the Company all such documentation as the Company
determines to be necessary and appropriate, in its sole discretion, for Employee to effect his
resignation from each position as a director, officer or employee of the Company or any of its
subsidiaries and for Employee to transfer to the Company, without further consideration, any shares
of the capital stock of any of the Company’s subsidiaries.

[Remainder of page intentionally left blank. Signature page follows.]

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     IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth
below.

	 	 	 	 	 
	 	BARRY CALDWELL, an individual

 	 
	Dated:  October 18, 2007 	/s/ Barry Caldwell
 	 
	 	Barry Caldwell 	 
	 	 	 
	 

	 	 	 	 	 
	 	IRIDEX CORPORATION

 	 
	Dated:  October 18, 2007 	By     /s/  Theodore A. Boutacoff
 	 
	 	Theodore A. Boutacoff 	 
	 	Chairman & Chief Executive Officer 	 
	 

 

 

Exhibit A

Consulting Agreement

 

 

IRIDEX CORPORATION

CONSULTING AGREEMENT

This Consulting Agreement (“Agreement”) is entered into as of October 17, 2007 by and between
Iridex Corporation (the “Company”) and Barry Caldwell (“Consultant”). The Company desires to retain
Consultant as an independent contractor to perform consulting services for the Company, and
Consultant is willing to perform such services, on the terms described below. In consideration of
the mutual promises contained herein, the parties agree as follows:

     1. Services and Compensation. Consultant agrees to perform for the Company the services
described in Exhibit A (the “Services”), and the Company agrees to pay Consultant the
compensation described in Exhibit A for Consultant’s performance of the Services.

     2. Confidentiality.

          A. Definition. “Confidential Information” means any non-public information that relates to the
actual or anticipated business or research and development of the Company, technical data, trade
secrets or know-how, including, but not limited to, research, product plans or other information
regarding Company’s products or services and markets therefor, customer lists and customers
(including, but not limited to, customers of the Company on whom Consultant called or with whom
Consultant became acquainted during the term of this Agreement), software, developments,
inventions, processes, formulas, technology, designs, drawing, engineering, hardware configuration
information, marketing, finances or other business information. Confidential Information does not
include information that (i) is known to Consultant at the time of disclosure to Consultant by the
Company as evidenced by written records of Consultant, (ii) has become publicly known and made
generally available through no wrongful act of Consultant or (iii) has been rightfully received by
Consultant from a third party who is authorized to make such disclosure.

          B. Nonuse and Nondisclosure. Consultant will not, during or subsequent to the term of this
Agreement, (i) use the Confidential Information for any purpose whatsoever other than the
performance of the Services on behalf of the Company or (ii) disclose the Confidential Information
to any third party. Consultant agrees that all Confidential Information will remain the sole
property of the Company. Consultant also agrees to take all reasonable precautions to prevent any
unauthorized disclosure of such Confidential Information. Without the Company’s prior written
approval, Consultant will not directly or indirectly disclose to anyone the existence of this
Agreement or the fact that Consultant has this arrangement with the Company.

          C. Former Client Confidential Information. Consultant agrees that Consultant will not, during
the term of this Agreement, improperly use or disclose any proprietary information or trade secrets
of any former or current employer of Consultant or other person or entity with which Consultant has
an agreement or duty to keep in confidence information acquired by Consultant, if any. Consultant
also agrees that Consultant will not bring onto the Company’s premises any unpublished document or
proprietary information belonging to any such employer, person or entity unless consented to in
writing by such employer, person or entity.

 

 

          D. Third Party Confidential Information. Consultant recognizes that the Company has received
and in the future will receive from third parties their confidential or proprietary information
subject to a duty on the Company’s part to maintain the confidentiality of such information and to
use it only for certain limited purposes. Consultant agrees that, during the term of this Agreement
and thereafter, Consultant owes the Company and such third parties a duty to hold all such
confidential or proprietary information in the strictest confidence and not to disclose it to any
person, firm or corporation or to use it except as necessary in carrying out the Services for the
Company consistent with the Company’s agreement with such third party.

          E. Return of Materials. Upon the termination of this Agreement, or upon Company’s earlier
request, Consultant will deliver to the Company all of the Company’s property, including but not
limited to all electronically stored information and passwords to access such property, or
Confidential Information that Consultant may have in Consultant’s possession or control.

     3. Ownership.

          A. Assignment. Consultant agrees that all copyrightable material, notes, records, drawings,
designs, inventions, improvements, developments, discoveries and trade secrets conceived,
discovered, developed or reduced to practice by Consultant, solely or in collaboration with others,
during the term of this Agreement that relate in any manner to the business of the Company that
Consultant may be directed to undertake, investigate or experiment with or that Consultant may
become associated with in work, investigation or experimentation in the Company’s line of business
in performing the Services under this Agreement (collectively, “Inventions”), are the sole property
of the Company. Consultant also agrees to assign (or cause to be assigned) and hereby assigns fully
to the Company all Inventions and any copyrights, patents, mask work rights or other intellectual
property rights relating to all Inventions.

          B. Further Assurances. Consultant agrees to assist Company, or its designee, at the Company’s
expense, in every proper way to secure the Company’s rights in Inventions and any copyrights,
patents, mask work rights or other intellectual property rights relating to all Inventions in any
and all countries, including the disclosure to the Company of all pertinent information and data
with respect to all Inventions, the execution of all applications, specifications, oaths,
assignments and all other instruments that the Company may deem necessary in order to apply for and
obtain such rights and in order to assign and convey to the Company, its successors, assigns and
nominees the sole and exclusive right, title and interest in and to all Inventions, and any
copyrights, patents, mask work rights or other intellectual property rights relating to all
Inventions. Consultant also agrees that Consultant’s obligation to execute or cause to be executed
any such instrument or papers shall continue after the termination of this Agreement.

          C. Pre-Existing Materials. Subject to Section 3.A, Consultant agrees that if, in the course of
performing the Services, Consultant incorporates into any Invention developed under this Agreement
any pre-existing invention, improvement, development, concept, discovery or other proprietary
information owned by Consultant or in which Consultant has an interest, (i) Consultant will inform
Company, in writing before incorporating such invention, improvement, development, concept,
discovery or other proprietary information into any Invention, and (ii) the Company is hereby
granted a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to make, have made,
modify, use and sell such item as part of or in connection with such Invention. Consultant will not
incorporate any

 

 

invention, improvement, development, concept, discovery or other proprietary information owned
by any third party into any Invention without Company’s prior written permission.

          D. Attorney-in-Fact. Consultant agrees that, if the Company is unable because of Consultant’s
unavailability, dissolution, mental or physical incapacity, or for any other reason, to secure
Consultant’s signature for the purpose of applying for or pursuing any application for any United
States or foreign patents or mask work or copyright registrations covering the Inventions assigned
to the Company in Section 3.A, then Consultant hereby irrevocably designates and appoints the
Company and its duly authorized officers and agents as Consultant’s agent and attorney-in-fact, to
act for and on Consultant’s behalf to execute and file any such applications and to do all other
lawfully permitted acts to further the prosecution and issuance of patents, copyright and mask work
registrations with the same legal force and effect as if executed by Consultant.

     4. Conflicting Obligations.

          A. Conflicts. Consultant certifies that Consultant has no outstanding agreement or obligation
that is in conflict with any of the provisions of this Agreement or that would preclude Consultant
from complying with the provisions of this Agreement. Consultant will not enter into any such
conflicting agreement during the term of this Agreement. Consultant’s violation of this Section 4.A
will be considered a material breach under Section 6.B.

          B. Substantially Similar Designs. In view of Consultant’s access to the Company’s trade
secrets and proprietary know-how, Consultant agrees that Consultant will not, without Company’s
prior written approval, design identical or substantially similar designs as those developed under
this Agreement for any third party during the term of this Agreement and for a period of 12 months
after the termination of this Agreement. Consultant acknowledges that the obligations in this
Section 4 are ancillary to Consultant’s nondisclosure obligations under Section 2.

     5. Reports. Consultant also agrees that Consultant will, from time to time during the term of
this Agreement or any extension thereof, keep the Company advised as to Consultant’s progress in
performing the Services under this Agreement. Consultant further agrees that Consultant will, as
requested by the Company, prepare written reports with respect to such progress. The Company and
Consultant agree that the time required to prepare such written reports will be considered time
devoted to the performance of the Services.

     6. Term and Termination.

          A. Term. The term of this Agreement will begin on the date of this Agreement and will continue
until the earlier of (i) final completion of the Services or (ii) termination as provided in
Section 6.B.

          B. Termination. Either party may terminate this Agreement by giving the other party written
notice of such termination pursuant to Section 11.E of this Agreement; provided, however, that in
the event that the Company terminates this Agreement, other than as a result of Consultant being
unable to perform the Services or Consultant being in breach of any material provision of this
Agreement, and such termination occurs after the Effective Date (as such term is defined in that
certain Separation Agreement and Release entered into by and between the Company and Consultant as
of even date
herewith), then the Company shall pay Consultant a lump sum payment equal to $60,000
less any amounts previously paid hereunder.

 

 

          Notwithstanding the foregoing, in the event that (i) the Company terminates this Agreement
because Consultant refuses or is unable to perform the Services or is in breach of any material
provision of this Agreement, or (ii) Consultant terminates this Agreement, then the Company shall
only be required to pay Consultant an amount equal to the remainder of (X) the amount determined by
multiplying the number of days that have elapsed since the date of this Agreement until the date of
such termination by $666.70, the daily rate for the Services, less (Y) any amounts
previously paid hereunder.

          C. Survival. Upon such termination, all rights and duties of the Company and Consultant toward
each other shall cease except:

               (1) The Company will pay, within 15 days after the effective date of termination, all amounts
owing to Consultant for Services completed and accepted by the Company prior to the termination
date and related expenses, if any, submitted in accordance with the Company’s policies and in
accordance with the provisions of Section 1 of this Agreement; and

               (2) Section 2 (Confidentiality), Section 3 (Ownership), Section 4 (Conflicting Obligations),
Section 7 (Independent Contractor; Benefits), Section 8 (Indemnification), Section 9
(Nonsolicitation) and Section 10 (Arbitration and Equitable Relief) will survive termination of
this Agreement.

     7. Independent Contractor; Benefits.

          A. Independent Contractor. It is the express intention of the Company and Consultant that
Consultant perform the Services as an independent contractor to the Company. Nothing in this
Agreement shall in any way be construed to constitute Consultant as an agent, employee or
representative of the Company. Without limiting the generality of the foregoing, Consultant is not
authorized to bind the Company to any liability or obligation or to represent that Consultant has
any such authority. Consultant agrees to furnish (or reimburse the Company for) all tools and
materials necessary to accomplish this Agreement and shall incur all expenses associated with
performance, except as expressly provided in Exhibit A. Consultant acknowledges and agrees
that Consultant is obligated to report as income all compensation received by Consultant pursuant
to this Agreement. Consultant agrees to and acknowledges the obligation to pay all self-employment
and other taxes on such income.

          B. Benefits. The Company and Consultant agree that Consultant will receive no
Company-sponsored benefits from the Company. If Consultant is reclassified by a state or federal
agency or court as Company’s employee, Consultant will become a reclassified employee and will
receive no benefits from the Company, except those mandated by state or federal law, even if by the
terms of the Company’s benefit plans or programs of the Company in effect at the time of such
reclassification, Consultant would otherwise be eligible for such benefits.

          8. Indemnification. Consultant agrees to indemnify and hold harmless the Company and its
directors, officers and employees from and against all taxes, losses, damages, liabilities, costs
and expenses, including attorneys’ fees and other legal expenses, arising directly or indirectly
from or in connection with (i) any negligent, reckless or intentionally wrongful act of Consultant
or Consultant’s assistants, employees or agents, (ii) a determination by a court or agency that the
Consultant is not an
independent contractor, (iii) any breach by the Consultant or Consultant’s assistants,
employees or agents of any of the covenants contained in this Agreement, (iv) any failure of
Consultant to perform the Services in accordance with all applicable laws, rules and regulations,
or (v) any violation or

 

 

claimed violation of a third party’s rights resulting in whole or in part
from the Company’s use of the work product of Consultant under this Agreement.

     9. Nonsolicitation. From the date of this Agreement until 12 months after the termination of
this Agreement (the “Restricted Period”), Consultant will not, without the Company’s prior written
consent, directly or indirectly, solicit or encourage any employee or contractor of the Company or
its affiliates to terminate employment with, or cease providing services to, the Company or its
affiliates. During the Restricted Period, Consultant will not, whether for Consultant’s own account
or for the account of any other person, firm, corporation or other business organization,
intentionally interfere with any person who is or during the period of Consultant’s engagement by
the Company was a partner, supplier, customer or client of the Company or its affiliates. For
purposes of this paragraph, the term “solicit” shall be deemed not to include advertisements or
other generalized employment searches, including advertisements in various media (including trade
media) or any job posting system, not specifically directed to employees of the Company and shall
not include any action by Consultant following any response by any person to such advertisements or
generalized searches or any communication initiated by such person and not by Consultant.

     10. Arbitration and Equitable Relief.

          A. Arbitration. IN CONSIDERATION OF CONSULTANT’S RIGHTS UNDER THIS AGREEMENT, THE COMPANY’S
PROMISE TO ARBITRATE DISPUTES UNDER THIS AGREEMENT, AND THE RECEIPT OF COMPENSATION PAID TO
CONSULTANT BY THE COMPANY, AT PRESENT AND IN THE FUTURE, CONSULTANT AGREES THAT ANY AND ALL
CONTROVERSIES, CLAIMS, OR DISPUTES WITH ANYONE (INCLUDING THE COMPANY AND ANY EMPLOYEE, OFFICER,
DIRECTOR, SHAREHOLDER OR BENEFIT PLAN OF THE COMPANY IN ITS CAPACITY AS SUCH OR OTHERWISE), WHETHER
BROUGHT ON AN INDIVIDUAL, GROUP, OR CLASS BASIS, ARISING OUT OF, RELATING TO, OR RESULTING FROM
CONSULTANT’S PERFORMANCE OF THE SERVICES UNDER THIS AGREEMENT OR THE TERMINATION OF THIS AGREEMENT,
INCLUDING ANY BREACH OF THIS AGREEMENT, SHALL BE SUBJECT TO BINDING ARBITRATION UNDER THE
ARBITRATION RULES SET FORTH IN CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 1280 THROUGH 1294.2,
INCLUDING SECTION 1283.05 (THE “RULES”) AND PURSUANT TO CALIFORNIA LAW. DISPUTES WHICH CONSULTANT
AGREES TO ARBITRATE, AND THEREBY AGREES TO WAIVE ANY RIGHT TO A TRIAL BY JURY, INCLUDE ANY
STATUTORY CLAIMS UNDER STATE OR FEDERAL LAW, INCLUDING, BUT NOT LIMITED TO, CLAIMS UNDER TITLE VII
OF THE CIVIL RIGHTS ACT OF 1964, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE AGE
DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE OLDER WORKERS BENEFIT PROTECTION ACT, THE
SARBANES-OXLEY ACT, THE WORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACT, THE CALIFORNIA FAIR
EMPLOYMENT AND HOUSING ACT, THE FAMILY AND MEDICAL LEAVE ACT, THE CALIFORNIA FAMILY RIGHTS ACT, THE
CALIFORNIA LABOR CODE, CLAIMS OF HARASSMENT, DISCRIMINATION AND WRONGFUL TERMINATION AND ANY
STATUTORY CLAIMS. CONSULTANT FURTHER UNDERSTANDS THAT THIS AGREEMENT TO ARBITRATE ALSO APPLIES TO
ANY DISPUTES THAT THE COMPANY MAY HAVE WITH CONSULTANT.

          B. Procedure. CONSULTANT AGREES THAT ANY ARBITRATION WILL BE ADMINISTERED BY THE AMERICAN
ARBITRATION ASSOCIATION (“AAA”), AND THAT

 

 

THE NEUTRAL ARBITRATOR WILL BE SELECTED IN A MANNER
CONSISTENT WITH AAA’S NATIONAL RULES FOR THE RESOLUTION OF EMPLOYMENT DISPUTES. CONSULTANT AGREES
THAT THE ARBITRATOR SHALL HAVE THE POWER TO DECIDE ANY MOTIONS BROUGHT BY ANY PARTY TO THE
ARBITRATION, INCLUDING MOTIONS FOR SUMMARY JUDGMENT AND/OR ADJUDICATION, MOTIONS TO DISMISS AND
DEMURRERS, AND MOTIONS FOR CLASS CERTIFICATION, PRIOR TO ANY ARBITRATION HEARING. CONSULTANT ALSO
AGREES THAT THE ARBITRATOR SHALL HAVE THE POWER TO AWARD ANY REMEDIES AVAILABLE UNDER APPLICABLE
LAW, AND THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY EXCEPT
AS PROHIBITED BY LAW. CONSULTANT UNDERSTANDS THAT THE COMPANY WILL PAY FOR ANY ADMINISTRATIVE OR
HEARING FEES CHARGED BY THE ARBITRATOR OR AAA, EXCEPT THAT CONSULTANT SHALL PAY THE FIRST $125.00
OF ANY FILING FEES ASSOCIATED WITH ANY ARBITRATION CONSULTANT INITIATES. CONSULTANT AGREES THAT THE
ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN A MANNER CONSISTENT WITH THE RULES AND
THAT TO THE EXTENT THAT THE AAA’S NATIONAL RULES FOR THE RESOLUTION OF EMPLOYMENT
DISPUTES CONFLICT WITH THE RULES, THE RULES SHALL TAKE PRECEDENCE. CONSULTANT AGREES THAT THE
DECISION OF THE ARBITRATOR SHALL BE IN WRITING.

          C. Remedy. EXCEPT AS PROVIDED BY THE RULES AND THIS AGREEMENT, ARBITRATION SHALL BE THE SOLE,
EXCLUSIVE AND FINAL REMEDY FOR ANY DISPUTE BETWEEN THE COMPANY AND CONSULTANT. ACCORDINGLY, EXCEPT
AS PROVIDED FOR BY THE RULES AND THIS AGREEMENT, NEITHER THE COMPANY NOR CONSULTANT WILL BE
PERMITTED TO PURSUE COURT ACTION REGARDING CLAIMS THAT ARE SUBJECT TO ARBITRATION. NOTWITHSTANDING,
THE ARBITRATOR WILL NOT HAVE THE AUTHORITY TO DISREGARD OR REFUSE TO ENFORCE ANY LAWFUL COMPANY
POLICY, AND THE ARBITRATOR SHALL NOT ORDER OR REQUIRE THE COMPANY TO ADOPT A POLICY NOT OTHERWISE
REQUIRED BY LAW.

          D. Availability of Injunctive Relief. CONSULTANT AGREES THAT EITHER THE COMPANY OR CONSULTANT
MAY PETITION A COURT FOR PROVISIONAL RELIEF, INCLUDING INJUNCTIVE RELIEF, AS PERMITTED BY THE
RULES, INCLUDING, BUT NOT LIMITED TO, WHERE EITHER THE COMPANY OR CONSULTANT ALLEGES OR CLAIMS A
VIOLATION OF THIS AGREEMENT BETWEEN CONSULTANT AND THE COMPANY OR ANY OTHER AGREEMENT REGARDING
TRADE SECRETS, CONFIDENTIAL INFORMATION, NONSOLICITATION OR LABOR CODE §2870. CONSULTANT
UNDERSTANDS THAT ANY BREACH OR THREATENED BREACH OF SUCH AN AGREEMENT (INCLUDING THIS AGREEMENT)
WILL CAUSE IRREPARABLE INJURY AND THAT MONEY DAMAGES WILL NOT PROVIDE AN ADEQUATE REMEDY THEREFOR
AND BOTH CONSULTANT AND THE COMPANY HEREBY CONSENT TO THE ISSUANCE OF AN INJUNCTION.

          E. Administrative Relief. CONSULTANT UNDERSTANDS THAT THIS AGREEMENT DOES NOT PROHIBIT
CONSULTANT FROM PURSUING AN ADMINISTRATIVE CLAIM WITH A LOCAL, STATE OR FEDERAL ADMINISTRATIVE BODY
SUCH AS THE DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING, THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
OR THE WORKERS’ COMPENSATION BOARD. THIS

 

 

AGREEMENT DOES, HOWEVER, PRECLUDE CONSULTANT FROM PURSUING
COURT ACTION REGARDING ANY SUCH CLAIM.

          F. Voluntary Nature of Agreement. CONSULTANT ACKNOWLEDGES AND AGREES THAT CONSULTANT IS
EXECUTING THIS AGREEMENT VOLUNTARILY AND WITHOUT ANY DURESS OR UNDUE INFLUENCE BY THE COMPANY OR
ANYONE ELSE. CONSULTANT FURTHER ACKNOWLEDGES AND AGREES THAT CONSULTANT HAS CAREFULLY READ THIS
AGREEMENT AND THAT CONSULTANT HAS ASKED ANY QUESTIONS NEEDED FOR CONSULTANT TO UNDERSTAND THE
TERMS, CONSEQUENCES AND BINDING EFFECT OF THIS AGREEMENT AND FULLY UNDERSTAND IT, INCLUDING THAT
CONSULTANT IS WAIVING ITS RIGHT TO A JURY TRIAL. FINALLY, CONSULTANT AGREES THAT CONSULTANT HAS
BEEN PROVIDED AN OPPORTUNITY TO SEEK THE ADVICE OF AN ATTORNEY OF ITS CHOICE BEFORE SIGNING THIS
AGREEMENT.

     11. Miscellaneous.

          A. Governing Law. This Agreement shall be governed by the laws of California without regard to
California’s conflicts of law rules.

          B. Assignability. Except as otherwise provided in this Agreement, Consultant may not sell,
assign or delegate any rights or obligations under this Agreement.

          C. Entire Agreement. This Agreement constitutes the entire agreement between the parties with
respect to the subject matter of this Agreement and supersedes all prior written and oral
agreements between the parties regarding the subject matter of this Agreement.

          D. Headings. Headings are used in this Agreement for reference only and shall not be
considered when interpreting this Agreement.

 

 

          E. Notices. Any notice or other communication required or permitted by this Agreement to be
given to a party shall be in writing and shall be deemed given if delivered personally or by
commercial messenger or courier service, or mailed by U.S. registered or certified mail (return
receipt requested), to the party at the party’s address written below or at such other address as
the party may have previously specified by like notice. If by mail, delivery shall be deemed
effective three business days after mailing in accordance with this Section 11.E.

	 	(1)	 	If to the Company, to:

Iridex Corporation

1212 Terra Bella Avenue

Mountain View, CA 94043-1824

Attention: Chief Executive Office

               (2) If to Consultant, to the address for notice on the signature page
to this Agreement or, if no such address is provided, to the last address of Consultant
provided by Consultant to the Company.

          F. Attorneys’ Fees. In any court action at law or equity that is brought by one of the parties
to this Agreement to enforce or interpret the provisions of this Agreement, the prevailing party
will be entitled to reasonable attorneys’ fees, in addition to any other relief to which that party
may be entitled.

          G. Severability. If any provision of this Agreement is found to be illegal or unenforceable,
the other provisions shall remain effective and enforceable to the greatest extent permitted by
law.

(signature page follows)

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Consulting Agreement as of the date
first written above.

	 	 	 	 	 	 	 	 	 
	CONSULTANT	 	 	 	IRIDEX CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Name:

	 	Barry Caldwell
	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Address for Notice:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

EXHIBIT A

Services and Compensation

     1. Contact. Consultant’s principal Company contact:

Name: Ted Boutacoff

Title: Chief Executive Officer

     2. Services. The Services shall include, but shall not be limited to, the following:
Consultant shall consult with the Company’s Chief Executive Officer and other appropriate officers
and employees of the Company, on a timely and as requested basis, in order to assist with the
transition of management responsibilities resulting from Ted Boutacoff’s appointment as Chief
Executive Officer and President of the Company.

     3. Compensation.

          A. The Company will pay Consultant $20,000 per month for a three (3) month period, subject to
the provisions of Section 6.B. of this Agreement.

          B. The Company will reimburse Consultant for all reasonable expenses incurred by Consultant in
performing the Services pursuant to this Agreement, if Consultant receives written consent from an
authorized agent of the Company prior to incurring such expenses and submits receipts for such
expenses to the Company in accordance with Company policy.
Every two weeks, Consultant shall submit to the Company a written invoice for Services and
expenses, and such statement shall be subject to the approval of the contact person listed above or
other designated agent of the Company.

This Exhibit A is accepted and agreed as of                     , 2007.

	 	 	 	 	 	 	 	 	 
	CONSULTANT	 	 	 	IRIDEX CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 
	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Name:

	 	Barry Caldwell
	 	 	 	Name:
	 	Theodore A. Boutacoff
	 
	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:  Chief Executive Officerexv10w33

 

Exhibit 10.33

F5 Networks, Inc.

Notice of Grant of Stock Units

(Acopia Acquisition Equity Incentive Plan)

	 	 	 
	Name:

	 	Grant Number:
	Address:

	 	Plan:
	City, State, Zip code:

	 	ID:
	Country
	 	 

You have been awarded a grant of Restricted Stock Units (RSUs) as follows:

Award Amount:

Award Date:

Vesting Schedule:

On the vest date, you will receive shares of F5 Networks, Inc. common stock. Vesting will
accelerate on a change in control as described in the F5 Networks, Inc. Acopia Acquisition Equity
Incentive Plan Award Agreement (Accelerated Vesting) (“Agreement”).

This grant is governed by the terms of the F5 Networks, Inc. Acopia Acquisition Equity Incentive
Plan and the Agreement, both of which are made a part of this document.

By accepting this award of RSUs, you agree that F5 Networks may cover required tax withholdings
through payroll deductions if it is unable to withhold through alternate standard means.

	 	 	 
	F5 Networks, Inc.

	 	Date:
	 
	 	 
	 

	 	 
	 
	 	 
	Holder

	 	Date:
	 
	 	 
	 

	 	 

1

 

F5 NETWORKS, INC.

ACOPIA ACQUISITION EQUITY INCENTIVE PLAN

AWARD AGREEMENT

(Accelerated Vesting)

     Pursuant to the terms of its Acopia Acquisition Equity Incentive Plan (the “Plan”), F5
Networks, Inc., a Washington corporation (the “Company”), has granted you an award (the “Award”)
(either a non-statutory stock option to purchase shares of the Company’s Common Stock (an “Option”)
or stock units representing the right to receive shares of the Company’s Common Stock (“Stock
Units”) as set forth in the Notice of Grant of Stock Options or Stock Units (the “Grant Notice”))
on the terms and conditions as set forth in this Acopia Acquisition Equity Incentive Plan Award
Agreement (this “Agreement”), the Grant Notice (which is incorporated herein by reference) and the
Plan (which is incorporated herein by reference). Capitalized terms used but not defined in this
Agreement shall have the meanings specified in the Plan.

     IN CONSIDERATION OF THE MUTUAL PROMISES SET FORTH BELOW, THE PARTIES AGREE AS FOLLOWS:

     1. Grant of Award; Grant Date. The Company has granted you an Award to purchase (in the case
of an Option) or to be issued (in the case of Stock Units) the total number of shares of Common
Stock of the Company as set forth in the Grant Notice (the “Award Shares”) on the terms and
conditions set forth in this Agreement, the Grant Notice and the Plan, including in the case of an
Option at the exercise price per share of Common Stock set forth in the Grant Notice (the “Award
Price”). The number and kind of Award Shares and the Award Price may be adjusted in certain
circumstances in accordance with Section 11 of the Plan.

     2. Vesting and Exercise or Settlement of Stock.

          2.1. Options.

          (a) The Option will vest and become exercisable during its term in accordance with the vesting
schedule set forth in the Grant Notice and with the applicable provisions of the Plan and this
Agreement. Vesting will cease upon the termination of your Continuous Service except as otherwise
set forth in the Plan or this Agreement.

          (b) The vested and exercisable portion of the Option may be exercised during its term (as set
forth in Section 6) electronically as directed by the Company or by delivering a Notice of Exercise
(in a form designated by the Company), together with the Award Price (payable in the manner set
forth in Section 3) to the Secretary of the Company, or to such other person as the Company may
designate, during regular business hours, together with such additional documents as the Company
may then require.

          (c) By exercising the Option, you agree that, as a condition to any exercise of the Option,
the Company may require you to enter an arrangement providing for the payment by

2

 

you to the Company of any tax withholding obligation of the Company arising by reason of (1)
the exercise of the Option or (2) the disposition of shares acquired upon such exercise.

          2.2. Stock Units. On each date that Stock Units vest (a “Vesting Date”), the Stock
Units will be settled as to the number of shares vesting on such Vesting Date, meaning that the
Company will (subject to your obligations to satisfy the requirements of Sections 5 and 9) issue to
you the number of shares vesting on such Vesting Date and the Award will thereafter remain in
effect only as to the number of unvested shares of Common Stock remaining subject thereto. The
shares of Common Stock issued upon conversion of Stock Units will be registered in your name as of
each Vesting Date on the register of shareholders of the Company (through its transfer agent).

          2.3. Accelerated Vesting. Notwithstanding the vesting provisions set forth in the
Grant Notice and Section 11 of the Plan, in the event of a change in control transaction as
described in Section 11 of the Plan, the vesting of 100% of the shares of Common Stock subject to
the Award (and if applicable, the time during which the Award may be exercised or settled) shall be
accelerated in full, and the Award shall terminate if not exercised or settled at or prior to the
closing of the change in control transaction.

     3. Method of Payment of the Option Award Price. Payment of the Award Price is due in full
upon exercise of all or any part of the Option. You may elect to make payment of the Award Price
by any of the methods, or combination thereof, described in the Plan, provided that the Board may,
in its sole discretion, refuse to accept a particular form of consideration at the time of exercise
of any Option, or agree to accept any other form of legal consideration.

     4. Whole Shares. The Award may only be exercised or settled for whole shares.

     5. Securities Law Compliance. Notwithstanding anything to the contrary contained herein, the
Award may not be exercised or settled unless the shares issuable upon exercise or settlement of the
Award are then registered under the Securities Act or, if such shares are not then so registered,
the Company has determined that such exercise and issuance would be exempt from the registration
requirements of the Securities Act. The exercise or settlement of the Award must also comply with
other applicable laws and regulations governing the Award, and the Award may not be exercised or
settled, and the Company will have no liability for failure to issue shares of Common Stock upon
exercise or settlement of the Award, if the Company determines that the exercise or settlement
would not be in material compliance with such laws and regulations.

     6. Term and Termination of Award.

          6.1. Options. Subject to earlier termination as required under Section 11 of the
Plan, the term of the Option commences on the Grant Date and expires upon the earliest of the
following:

          (a) three (3) months after the termination of your Continuous Service for any reason other
than death or Disability, provided that if during any part of such three-month period the Option is
not exercisable solely because of the condition set forth in Section 5, the Option

3

 

shall not expire until the earlier of the Expiration Date or until it shall have been
exercisable for an aggregate period of three (3) months after the termination of your Continuous
Service;

          (b) twelve (12) months after the termination of your Continuous Service due to Disability;

          (c) eighteen (18) months after your death if you die either during your Continuous Service or
within three (3) months after your Continuous Service terminates for reason other than Cause;

          (d) the Expiration Date indicated in the Grant Notice; or

          (e) the tenth (10th) anniversary of the Grant Date.

          6.2. Stock Units. In the event your Continuous Service terminates, any Stock Units
and the shares of Common Stock subject thereto (that have not been issued upon settlement) shall be
forfeited.

     7. Transferability. The Award is not transferable, except by will or by the laws of descent
and distribution. Options are exercisable during your life only by you. Shares of Common Stock
issued upon vesting of a Stock Unit are issuable during your life only to you. Notwithstanding the
foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you
may designate a third party who, in the event of your death, shall thereafter be entitled to
exercise the Option or receive shares of Common Stock issued upon vesting of a Stock Unit.

     8. Not a Service Contract. This Agreement is not an employment or service contract, and
nothing in this Agreement shall be deemed to create in any way whatsoever any obligation on your
part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to
continue your employment. In addition, nothing in this Agreement shall obligate the Company or an
Affiliate, their respective shareholders, Board, officers or employees to continue any relationship
that you might have as a director or consultant for the Company or an Affiliate.

     9. Withholding Obligations.

          9.1. At the time the Option is exercised, in whole or in part, or shares of Common Stock are
issued upon settlement of Stock Units or at any time thereafter as requested by the Company, you
hereby authorize withholding from payroll and any other amounts payable to you, or otherwise agree
to make adequate provision for (including by means of a “cashless exercise” pursuant to a program
developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by
the Company), any sums required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or an Affiliate, which arise in connection with the Award.

          9.2. The Option is not exercisable and shares of Common Stock are not issuable upon settlement
of Stock Units unless the tax withholding obligations of the Company

4

 

are satisfied. Accordingly, you may not be able to exercise the Option or receive shares of
Common Stock upon settlement of Stock Units when desired even though the Award is vested.

     10. Professional Advice. The acceptance and exercise or settlement of the Award and the sale
of Award Shares has consequences under federal and state tax and securities laws which may vary
depending upon your individual circumstances. Accordingly, you acknowledge that you have been
advised to consult your personal legal and tax advisor in connection with this Agreement and your
dealings with respect to the Award and the Award Shares. You further acknowledge that the Company
has made no warranties or representations to you with respect to the income tax consequences of the
grant and exercise or settlement of the Award or the sale of the Award Shares and you are in no
manner relying on the Company or its representatives for an assessment of such consequences.

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

     12. Damages. You shall be liable to the Company for all costs and damages, including
incidental and consequential damages, resulting from a disposition of Award Shares which is not in
conformity with the provisions of this Agreement.

     13. Governing Law. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of Washington excluding those laws that direct the application of the laws of
another jurisdiction.

     14. Notices. All notices and other communications under this Agreement shall be in writing.
Unless and until you are notified in writing to the contrary, all notices, communications, and
documents directed to the Company and related to the Agreement, if not delivered by hand, shall be
mailed, addressed as follows:

F5 Networks, Inc.

401 Elliott Ave West

Seattle, WA 98119

Unless and until the Company is notified in writing to the contrary, all notices, communications,
and documents intended for you and related to this Agreement, if not delivered by hand, shall be
mailed to your last known address as shown on the Company’s books. Notices and communications
shall be mailed by first class mail, postage prepaid. All mailings and deliveries related to this
Agreement shall be deemed received when actually received, if by hand delivery, and five (5)
business days after mailing, if by mail.

     15. Amendment of this Agreement. The Board at any time, and from time to time, may amend the
terms of this Agreement; provided, however, that the rights under this Agreement shall not be
impaired by any such amendment unless (i) the Company requests your consent and (ii) you consent in
writing.

5

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