Document:

Exhibit 10.148

 

NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE
SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES

 

Warrant
No. 101003-26

 

 

COMMON
STOCK PURCHASE WARRANT

 

 

To Purchase 100,000 Shares of Common Stock of

 

The Immune
Response Corporation

 

THIS
COMMON STOCK PURCHASE WARRANT CERTIFIES that, for value received, Cardinal
Securities, LLC (the “Holder”), is entitled, upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth, at any
time on or after October 10, 2003 (the “Initial Exercise Date”) and on
or prior to the close of business on October 10, 2008 (the “Termination Date”)
but not thereafter, to subscribe for and purchase from The Immune Response
Corporation, a corporation incorporated in the State of Delaware (the “Company”),
up to 100,000 shares (the “Warrant Shares”) of Common Stock, of the
Company (the “Common Stock”). 
The purchase price of one share of Common Stock (the “Exercise Price”)
under this Warrant shall be $3.32,
subject to adjustment hereunder. 
The Exercise Price and the number of Warrant Shares for which the
Warrant is exercisable shall be subject to adjustment as provided herein. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Securities
Purchase Agreement (the “Purchase Agreement”), dated October 10, 2003,
between the Company and the purchasers signatory thereto.

 

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1.  Title to Warrant. 
Prior to the Termination Date and subject to compliance with applicable
laws and Section 7 of this Warrant, this Warrant and all rights hereunder are
transferable, in whole or in part.

 

2.  Authorization of Shares.  The Company covenants that all Warrant Shares which may be issued
upon the exercise of the purchase rights represented by this Warrant will, upon
exercise of the purchase rights represented by this Warrant in accordance with
the terms and conditions hereof, be duly authorized, validly issued, fully paid
and nonassessable and free from all taxes, liens and charges in respect of the
issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).

 

3.  Exercise of Warrant.

 

(a)  Except
as provided in Section 3(c) herein, exercise of the purchase rights represented
by this Warrant may be made at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by the surrender of this
Warrant and the Notice of Exercise Form annexed hereto duly executed, at the
office of the Company (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of such
Holder appearing on the books of the Company) and upon payment of the Exercise
Price of the shares thereby purchased by wire transfer or cashier’s check of
immediately available funds drawn on a United States bank or by means of a
cashless exercise pursuant to Section 3(d), the Holder shall be entitled to
receive a certificate for the number of Warrant Shares so purchased.  Certificates for shares purchased hereunder
shall be delivered to the Holder within five (5) Trading Days after the date on
which this Warrant shall have been exercised as aforesaid. This Warrant shall
be deemed to have been exercised and such certificate or certificates shall be
deemed to have been issued, and the Holder or any other person so designated to
be named therein shall be deemed to have become a holder of record of such
shares for all purposes, as of the date the Warrant has been exercised by
payment to the Company of the Exercise Price and all taxes required to be paid
by the Holder, if any, pursuant to Section 5 prior to the issuance of such
shares, have been paid.  If the Company
fails to deliver to the Holder a certificate or certificates representing the
Warrant Shares pursuant to this Section 3(a) by the close of business on the
fifth Trading Day after the date of exercise, then the Holder will have the
right to rescind such exercise.  In
addition to any other rights available to the Holder, if the Company fails to
deliver to the Holder a certificate or certificates representing the Warrant
Shares pursuant to an exercise by the close of business on the fifth Trading
Day after the date of exercise, and if after such fifth Trading Day the Holder
is required by its broker to purchase (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
Holder of the Warrant Shares which the Holder anticipated receiving upon such
exercise (a “Buy-In”), then the Company shall (1) pay in cash to the
Holder the amount by which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased
exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares
that the Company was required to deliver to the Holder in connection with the
exercise at issue times (B) the price at which the sell order giving rise to such
purchase obligation was executed, and (2) at the option of the Holder, either
reinstate the portion of the Warrant and equivalent number of Warrant Shares
for which such exercise was not honored or deliver to the Holder the number of
shares of Common Stock that would have been issued had the

 

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Company
timely complied with its exercise and delivery obligations hereunder.  For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect
to an attempted exercise of shares of Common Stock with an aggregate sale price
giving rise to such purchase obligation of $10,000, under clause (1) of the
immediately preceding sentence the Company shall be required to pay the Holder
$1,000. The Holder shall provide the Company written notice indicating the
amounts payable to the Holder in respect of the Buy-In, together with
applicable confirmations and other evidence reasonably requested by the
Company.  Nothing herein shall limit a
Holder’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant
as required pursuant to the terms hereof.

 

(b)  If this Warrant shall have been
exercised in part, the Company shall, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to Holder a
new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant
Shares called for by this Warrant, which new Warrant shall in all other
respects be identical with this Warrant.

 

(c)  Notwithstanding
anything herein to the contrary, in no event shall the Holder be permitted to
exercise this Warrant for Warrant Shares to the extent that (i) the number of
shares of Common Stock beneficially owned by such Holder, together with any
affiliate thereof (other than Warrant Shares issuable upon exercise of this
Warrant) plus (ii) the number of Warrant Shares issuable upon exercise of this
Warrant, would be equal to or exceed 4.999% of the number of shares of Common
Stock then issued and outstanding, including shares issuable upon exercise of
this Warrant held by such Holder after application of this Section 3(c).  As used herein, beneficial ownership shall
be determined in accordance with Section 13(d) of the Exchange Act and the
rules promulgated thereunder.  To the
extent that the limitation contained in this Section 3(c) applies, the
determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder) and of which a portion of this Warrant is
exercisable shall be in the sole discretion of such Holder, and the submission
of a Notice of Exercise shall be deemed to be such Holder’s determination of
whether this Warrant is exercisable (in relation to other securities owned by
such Holder) and of which portion of this Warrant is exercisable, in each case
subject to such aggregate percentage limitation, and the Company shall have no
obligation to verify or confirm the accuracy of such determination.  Nothing contained herein shall be deemed to
restrict the right of a Holder to exercise this Warrant into Warrant Shares at
such time as such exercise will not violate the provisions of this Section
3(c).  The provisions of this Section
3(c) may be waived by the Holder upon, at the election of the Holder, not less
than 61 days’ prior notice to the Company, and the provisions of this Section
3(c) shall continue to apply until such 61st day (or such later
date, as determined by the Holder, as may be specified in such notice of
waiver).  No exercise of this Warrant in
violation of this Section 3(c) but otherwise in accordance with this Warrant
shall affect the status of the Warrant Shares as validly issued, fully-paid and
nonassessable.

 

(d)  If, but
only if, at any time after one year from the date of issuance of this Warrant
there is no effective Registration Statement registering the resale of the
Warrant Shares by the Holder, this Warrant may also be exercised at such time
by means of a “cashless exercise” in which the Holder shall be entitled to
receive a certificate for the

 

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number
of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by
(A), where:

 

(A) =   the VWAP on
the Trading Day preceding the date of such election;

 

(B) =   the Exercise
Price of the Warrants, as adjusted; and

 

(X) =   the number
of Warrant Shares issuable upon exercise of the Warrants in accordance with the
terms of this Warrant.

 

As
used herein, “VWAP” means, for any date, the price determined by the first of
the following clauses that applies: (a) if the Common Stock is then listed or
quoted on a Trading Market, the daily volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the Trading
Market on which the Common Stock is then listed or quoted as reported by
Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. Eastern Time to
4:02 p.m. Eastern Time); (b) if the Common Stock is not then listed or
quoted on a Trading Market and if prices for the Common Stock are then quoted
on the OTC Bulletin Board, the volume weighted average price of the Common
Stock for such date (or the nearest preceding date) on the OTC Bulletin Board;
(c)  if the Common Stock is not then listed or quoted on the OTC Bulletin
Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by the National Quotation Bureau Incorporated (or a similar
organization or agency succeeding to its functions of reporting prices), the
most recent bid price per share of the Common Stock so reported; or (d) in
all other cases, the fair market value of a share of Common Stock as determined
by an independent appraiser selected in good faith by the holders of a majority
of the Shares then outstanding and reasonably acceptable to the Company.

 

4.  No Fractional Shares or Scrip.  No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which Holder
would otherwise be entitled to purchase upon such exercise, the Company shall
pay a cash adjustment in respect of such final fraction in an amount equal to
such fraction multiplied by the Exercise Price.

5.  Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares
shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event certificates
for Warrant Shares are to be issued in a name other than the name of the
Holder, this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and the Company
may require, as a condition thereto, the payment of a sum sufficient to
reimburse it for any transfer tax incidental thereto.

 

6.  Closing of Books. 
The Company will not close its stockholder books or records in any
manner which prevents the timely exercise of this Warrant, pursuant to the
terms hereof.

 

7.  Transfer, Division and Combination.

 

(a)  Subject
to compliance with any applicable securities laws and the conditions set forth
in Sections 1 and 7(e) hereof and to the provisions of Section 4.1 of the

 

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Purchase
Agreement, this Warrant and all rights hereunder are transferable, in whole or
in part, upon surrender of this Warrant, so long as the amount of Warrant
Shares transferred is equal to at least 25,000 shares (on an as exercised
basis) at the principal office of the Company, together with a written
assignment of this Warrant substantially in the form attached hereto duly
executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  A
Warrant, if properly assigned, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

 

(b)  This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. 
Subject to compliance with Section 7(a), as to any transfer which may be
involved in such division or combination, the Company shall execute and deliver
a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice.

 

(c)  The
Company shall prepare, issue and deliver at its own expense (other than
transfer taxes) the new Warrant or Warrants under this Section 7.

 

(d)  The
Company agrees to maintain, at its aforesaid office, books for the registration
and the registration of transfer of the Warrants.

 

(e) 
If, at the time of the surrender of this Warrant in connection with any
transfer of this Warrant, the transfer of this Warrant shall not be registered
pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws, the Company may require, as
a condition of allowing such transfer (i) that the Holder or transferee of this
Warrant, as the case may be, furnish to the Company a written opinion of
counsel (which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions) to the effect that such
transfer may be made without registration under the Securities Act and under
applicable state securities or blue sky laws, (ii) that the holder or
transferee execute and deliver to the Company an investment letter in form and
substance acceptable to the Company and (iii) that the transferee be an
“accredited investor” as defined in Rule 501(a) promulgated under the
Securities Act.

 

8.  No Rights as Shareholder until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof.  Upon the surrender of
this Warrant and the payment of the aggregate Exercise Price (or by means of a cashless
exercise), the Warrant Shares so purchased shall be and be deemed to be issued
to such Holder as the record owner of such shares as of the close of business
on the later of the date of such surrender or payment.

 

9.  Loss, Theft, Destruction or Mutilation of Warrant.  The Company covenants that upon receipt by
the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of

 

5

 

loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant,
shall not include the posting of any bond), and upon surrender and cancellation
of such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

 

10.  Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking
of any action or the expiration of any right required or granted herein shall
be a Saturday, Sunday or a legal holiday, then such action may be taken or such
right may be exercised on the next succeeding day not a Saturday, Sunday or
legal holiday.

 

11.  Adjustments of Exercise Price and Number of Warrant
Shares.  The number and kind of
securities purchasable upon the exercise of this Warrant and the Exercise Price
shall be subject to adjustment from time to time upon the happening of any of
the following.  In case the Company
shall (i) pay a dividend in shares of Common Stock or make a distribution in
shares of Common Stock to holders of its outstanding Common Stock, (ii)
subdivide its outstanding shares of Common Stock into a greater number of
shares, (iii) combine its outstanding shares of Common Stock into a smaller
number of shares of Common Stock, or (iv) issue any shares of its capital stock
in a reclassification of the Common Stock, then the number of Warrant Shares
purchasable upon exercise of this Warrant immediately prior thereto shall be
adjusted so that the Holder shall be entitled to receive the kind and number of
Warrant Shares or other securities of the Company which it would have owned or
have been entitled to receive had such Warrant been exercised in advance
thereof.  Upon each such adjustment of
the kind and number of Warrant Shares or other securities of the Company which
are purchasable hereunder, the Holder shall thereafter be entitled to purchase
the number of Warrant Shares or other securities resulting from such adjustment
at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment
by the number of Warrant Shares purchasable pursuant hereto immediately prior
to such adjustment and dividing by the number of Warrant Shares or other
securities of the Company resulting from such adjustment.  An adjustment made pursuant to this
paragraph shall become effective immediately after the effective date of such
event retroactive to the record date, if any, for such event.

 

 

12.  Reorganization, Reclassification, Merger,
Consolidation or Disposition of Assets. 
In case the Company shall reorganize its capital, reclassify its capital
stock, consolidate or merge with or into another corporation (where the Company
is not the surviving corporation or where there is a change in or distribution
with respect to the Common Stock of the Company), or sell, transfer or
otherwise dispose of all or substantially all its property, assets or business
to another corporation (including by way of a spin-off) and, pursuant to the
terms of such reorganization, reclassification, merger, consolidation or
disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of
any nature whatsoever (including warrants or other subscription or purchase
rights) in addition to or in lieu of common stock of the successor or acquiring
corporation (“Other Property”), are to be received by or distributed to
the holders of Common Stock of the Company, then the Holder shall have the
right thereafter to receive upon exercise of this Warrant, the number of shares
of Common Stock of the successor or acquiring corporation or of the Company, if
it is the surviving corporation, and Other Property receivable upon or as a
result of such reorganization, reclassification, merger, consolidation or
disposition of assets by a Holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event.  In case of any such reorganization,

 

6

 

reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation (if other than
the Company) shall expressly assume the due and punctual observance and
performance of each and every covenant and condition of this Warrant to be
performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as
determined in good faith by resolution of the Board of Directors of the
Company) in order to provide for adjustments of Warrant Shares for which this
Warrant is exercisable which shall be as nearly equivalent as practicable to
the adjustments provided for in this Section 12.  For purposes of this Section 12, “common stock of the successor
or acquiring corporation” shall include stock of such corporation of any class
which is not preferred as to dividends or assets over any other class of stock
of such corporation and which is not subject to redemption and shall also
include any evidences of indebtedness, shares of stock or other securities
which are convertible into or exchangeable for any such stock, either
immediately or upon the arrival of a specified date or the happening of a
specified event and any warrants or other rights to subscribe for or purchase
any such stock.  The foregoing
provisions of this Section 12 shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

 

13.  Voluntary Adjustment by the Company.  The Company may at any time during the term
of this Warrant reduce the then current Exercise Price to any amount and for
any period of time deemed appropriate by the Board of Directors of the Company.

 

14.  Notice of Adjustment.  Whenever the number of Warrant Shares or number or kind of
securities or other property purchasable upon the exercise of this Warrant or
the Exercise Price is adjusted, as herein provided, the Company shall give
notice thereof to the Holder, which notice shall state the number of Warrant
Shares (and other securities or property) purchasable upon the exercise of this
Warrant and the Exercise Price of such Warrant Shares (and other securities or
property) after such adjustment, setting forth a brief statement of the facts
requiring such adjustment and setting forth the computation by which such
adjustment was made.

15.  Notice of Corporate Action.  If at any time:

 

(a)  the
Company shall take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend or other distribution, or any right to
subscribe for or purchase any evidences of its indebtedness, any shares of
stock of any class or any other securities or property, or to receive any other
right, or

 

(b)  there
shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with, or any sale, transfer or other disposition of all
or substantially all the property, assets or business of the Company to,
another corporation or,

 

(c)  there
shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company;

 

then,
in any one or more of such cases, the Company shall give to Holder (i) at least
20 days’ prior written notice of the date or expected date on which a record
date shall be selected for such dividend, distribution or right or for
determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
liquidation or winding up, and (ii) in the case of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up, at least 20 days’ prior written notice
of the date

 

7

 

when
the same shall or is expected to take place. 
Such notice in accordance with the foregoing clause also shall specify
(A) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, the date on which the holders of Common Stock
shall be entitled to any such dividend, distribution or right, and the amount
and character thereof, and (B) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is expected to take place and the time,
if any such time is to be fixed, as of which the holders of Common Stock shall
be entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up.  Each such written notice shall be
sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with Section
18(d).  Failure to provide such notice
shall not affect the validity of any action taken in connection with such
dividend, distribution, subscription or purchase rights, or proposed
reorganization, reclassification, recapitalization, merger, consolidation,
sale, transfer, disposition, conveyance, dissolution, liquidation or winding
up.

 

16.  Authorized
Shares.  The Company covenants that
during the period the Warrant is outstanding, it will reserve from its
authorized and unissued Common Stock a sufficient number of shares to provide
for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant.  The Company further
covenants that its issuance of this Warrant shall constitute full authority to
its officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be
necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation, or of any requirements
of the Trading Market upon which the Common Stock may be listed.

 

Except
and to the extent as waived or consented to by the Holder, the Company shall
not by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, but will at all times in good faith assist in the carrying out of
all such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant
against impairment.  Without limiting
the generality of the foregoing, the Company will (a) not increase the par
value of any Warrant Shares above the amount payable therefor upon such
exercise immediately prior to such increase in par value, (b) take all such
action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable Warrant Shares upon the exercise
of this Warrant, and (c) use commercially reasonable efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its
obligations under this Warrant.

 

Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

 

17.  Call.  At any time and from time to time following
the Effective Date, the Company shall have the right, upon 5 Business Days’
prior written notice to the Holder (“Call Notice”), to call all or any portion
of this Warrant at a price equal to $.05 per Warrant at any time,

 

8

 

provided that (i) the Warrant Shares have
been registered for resale pursuant to the Securities Act for at least the
10-Trading Day period preceding the Call Notice, (ii) the VWAP of the Common
Stock on a Trading Market is equal to or greater than $8.00 per share (subject
to adjustment to reflect forward or reverse stock splits, stock dividends,
recapitalizations and the like)(the “Threshold Price”) for at least 20
consecutive Trading Days over any 30 Trading Days, and (iii) the Call Notice is
delivered within 3 Business Days’ of the most recent day in the previous clause
(ii) that the Common Stock reached the Threshold Price.  At any time prior to the effective date of
such call, the Holder shall have the right to exercise this Warrant in
accordance with its terms.

 

18.  Miscellaneous.

 

(a)  Jurisdiction.  This Warrant shall constitute a contract
under the laws of New York, without regard to its conflict of law, principles
or rules.

 

(b)  Restrictions.  The Holder acknowledges that the Warrant
Shares acquired upon the exercise of this Warrant, if not registered, will have
restrictions upon resale imposed by state and federal securities laws.

 

(c)  Nonwaiver
and Expenses.  No course of dealing
or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice Holder’s rights,
powers or remedies, notwithstanding all rights hereunder terminate on the
Termination Date.  If the Company
willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to
Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

(d)  Notices.  Any notice, request or other document
required or permitted to be given or delivered to the Holder by the Company
shall be delivered in accordance with the notice provisions of the Purchase
Agreement; provided upon any permitted assignment of this Warrant, the assignee
shall promptly provide the Company with its contact information.

 

(e)  Limitation
of Liability.  No provision hereof,
in the absence of any affirmative action by Holder to exercise this Warrant or
purchase Warrant Shares, and no enumeration herein of the rights or privileges
of Holder, shall give rise to any liability of Holder for the purchase price of
any Common Stock or as a stockholder of the Company, whether such liability is
asserted by the Company or by creditors of the Company.

 

(f)  Remedies.  Holder, in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive the defense
in any action for specific performance that a remedy at law would be adequate.

 

(g)  Successors
and Assigns.  Subject to applicable
securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors of the Company
and the successors and permitted assigns of

 

9

 

Holder.  The provisions of this Warrant are intended
to be for the benefit of all Holders from time to time of this Warrant and
shall be enforceable by any such Holder or holder of Warrant Shares.

 

(h)  Amendment.  This Warrant may be modified or amended or
the provisions hereof waived with the written consent of the Company and the
Holder.

 

(i)  Severability.  Wherever possible, each provision of this
Warrant shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

 

(j)  Headings.  The headings used in this Warrant are for
the convenience of reference only and shall not, for any purpose, be deemed a
part of this Warrant.

 

(k)  Entire
Agreement. This Warrant, the Purchase Agreement and the Registration Rights
Agreement constitute the entire agreement between the Company and the Holder
with respect to this Warrant.

 

********************

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized.

 

10

 

Dated:  October 10, 2003

 

	
   

  	
  THE IMMUNE RESPONSE
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ John N. Bonfiglio

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John N. Bonfiglio

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
					

 

11

 

NOTICE
OF EXERCISE

 

To:          The
Immune Response Corporation

 

(1)  The undersigned hereby elects to purchase
           Warrant Shares of
The Immune Response Corporation pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

 

(2)  Payment shall take the form of (check applicable box):

 

o
in lawful money of the United States; or

 

o
the cancellation of such number of Warrant Shares as is necessary, in
accordance with the formula set forth in subsection 3(d), to exercise this
Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the cashless exercise procedure set forth in subsection 3(d).

 

(3)  Please issue a certificate or certificates representing
said Warrant Shares in the name of the undersigned or in such other name as is
specified below:

 

 

The Warrant Shares shall be delivered to the following:

 

 

 

 

(4)  Accredited Investor.  The undersigned is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act of 1933, as amended.

 

	
   

  	
  Cardinal Securities, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
						

 

12

 

ASSIGNMENT
FORM

 

(To assign the foregoing warrant, execute

this form and supply required information. 

Do not use this form to exercise the warrant.)

 

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

 

 

                                                                                                  whose
address is

 

 

 

 

	
   

  	
   

  	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Holder’s Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Holder’s Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature Guaranteed:

  	
   

  	
   

  	
   

  
									

 

NOTE:  The signature to this
Assignment Form must correspond with the name as it appears on the face of the
Warrant, without alteration or enlargement or any change whatsoever, and must
be guaranteed by a bank or trust company. 
Officers of corporations and those acting in a fiduciary or other
representative capacity should file proper evidence of authority to assign the
foregoing Warrant.

 

13Exhibit
10.9

 

EMPLOYMENT
AGREEMENT

 

 

           THIS
EMPLOYMENT AGREEMENT  (“Agreement”), made and entered
into, effective as of the 11th day of August, 2003, by and between Donna
LeGrand (“Employee”) and Interactive Intelligence, Inc. (“Company”), an Indiana
corporation.

 

WITNESSETH:

 

           WHEREAS, the Employee possesses certain skills
which the Company wishes to utilize in its business, and the Employee wishes to
provide certain services to the Company upon the terms and conditions set forth
in this Agreement;

 

           NOW, THEREFORE, in consideration of the
premises and of the mutual promises and agreements contained herein and other
good and valuable consideration, the receipt, legal adequacy and sufficiency of
which are hereby acknowledged, the parties agree as follows:

 

           Section 1. 
Employment.  The
Company engages the Employee to serve the Company, and the Employee agrees to
serve the Company as an employee in such capacities as the Board of Directors
of the Company may, from time to time, determine, upon the terms and conditions
hereinafter set forth.

 

           Section 2. 
Term; Renewal.  The
term of the Employee’s employment under this Agreement shall be for an initial
term commencing and ending on the dates set forth on the Addendum attached
hereto and incorporated herein by reference (“Addendum”), which term shall
automatically renew for successive one (1) year terms, on the same terms and
conditions set forth herein unless either the Company or the Employee gives
written notice to the other, at least thirty (30) days prior to the expiration
of the initial term or any renewal term, that the term will not renew.

 

           Section
3.  Title, Services and Duties.

           (a)  During the
term of employment hereunder, the Employee shall serve in the capacities
described on the Addendum and shall perform the duties and responsibilities
described on the Addendum or as are normally associated with such a position in
the Company’s industry and as may be delegated to the Employee by the President
or the Company’s Board of Directors.

 

           (b) 
During such employment, the Employee shall devote substantially all of
the Employee’s  business time,
attention, energy and skill to the business of the Company, and shall perform
such services in a faithful, competent and diligent manner at the direction of
the President and of the Company’s Board of Directors.

 

           (c) 
During the Employee’s employment, the Company shall provide the Employee
with such office facilities and support services as the Company determines in
its business judgment to be appropriate for the Employee to perform the
Employee’s duties and responsibilities hereunder.

 

 

 

           (d)  The Employee
shall comply with all policies and procedures adopted by the Company from time
to time, including without limitation, policies regarding reimbursement for
business expenses incurred on behalf of the Company, and compliance with
applicable laws.

 

           Section
4.  Compensation as Employee.   At all times during the initial term or any renewal
term of this Agreement, the Company shall pay the Employee an annual salary in
the amount set forth in the Addendum, payable at the usual payroll payment
dates of the Company, and any other options or benefits set forth in the
Addendum.  All amounts paid hereunder by
Company to the Employee shall be subject to all applicable local, state and
federal withholding taxes.  The Company
may increase or decrease the salary set forth herein from time to time, in its
sole discretion, but any decrease may only be made upon fifteen (15) days prior
notice.

 

           Section 5. 
Termination and Severance Payments

           (a) 
In the event that the employment of the Employee is terminated for cause
or in the event that the Employee resigns his/her employment with the Company,
the Employee shall be paid any salary and any other benefits which have then
accrued and to which the Employee is entitled to at such time.  However, in such event, the Employee shall
not be entitled to any severance compensation as set forth in subparagraph (b)
below.

 

           (b) In the event that the employment
of the Employee is terminated by the Company for any reason other than for
cause, in addition to receiving all accrued salary and benefits to which the
Employee is entitled to at such time, the Company further agrees to pay the
Employee as severance pay an amount equal to the Employee’s salary as in effect
at such time for an additional three (3) months from the date of termination,
with payments to be made on the Company’s usual payroll payment dates.

 

           (c) 
All amounts paid under Subsections (a) or (b) hereof  to the Employee shall be subject to all
applicable local, state or federal withholding taxes, if any.

 

           Section 6. 
Employee Benefits.

           (a) 
The Employee shall be limited each calendar year to a vacation benefit
for the amount of time shown in the Addendum (prorated from the date of commencement
to the end of that applicable calendar year). 
All vacation benefits must be fully utilized in the calendar year in
which accrued, provided that (i) no vacation may be taken during the first six
(6) months of the initial term hereof without the prior written consent of the
Company, (ii) the Employee must comply with procedures adopted from time to
time by the Company with respect to the scheduling of vacations, and (iii) if
because of the Company’s requirements, the Company does not approve the Employee’s
requested vacation schedule and thus prevents the Employee from fully utilizing
all of the Employee’s vacation in the year earned, the Company and the Employee
shall in good faith make arrangements for either the carryover of such unused
vacation to the next calendar year or such other arrangements as are mutually
satisfactory.

 

           (b) 
During the term of the Employee’s employment hereunder, the Employee
shall be entitled to participate, upon the same terms and conditions applicable
to employees generally in any life, health, hospitalization or any other
insurance program, or any other pension or benefit 

 

 

2

 

plan which the
Company may from time to time provide or make available to the Company’s employees
and for which the Employee is eligible and qualified; provided that if the
inclusion of the Employee under any such program or plan causes or would cause
either such program or plan to be terminated or the Company to incur a
materially disproportionate additional cost, the Company may elect to provide
benefits of a substantially similar nature which avoids such adverse effects.

 

           Section
7.  Covenant Not to Compete.

           (a) 
During the Employee’s service hereunder and for a period of eighteen
(18) months thereafter, regardless of the reason or method of termination, the
Employee will not, directly or indirectly, for the Employee’s own benefit or
the benefit of any other person or entity:

 

(i)            solicit in any manner, seek to
obtain, or service the business of any customer of the Company, other than for
the Company;

(ii)           become an owner of any business, if
such business competes with the Company;

(iii)          become employed by or serve as an
agent, independent contractor or representative of any business which competes
with the Company;

(iv)          solicit the employment of or hire any
employee of the Company, or encourage any employee to terminate his or her
employment with the Company; or

(v)           prepare in any manner to compete with
the Company.

 

           (b)  For purposes
of this Agreement, a “customer” shall be deemed to be any person, business,
partnership, proprietorship, firm, organization or corporation which has done
business with the Company or which has been solicited or serviced in any
manner, directly or indirectly, by the Company within eighteen (18) months
prior to the date of the termination of the Employee, and the phrase “service
the business of any customer” means the development, modification, enhancement
or improvement of any product or service offered by the Company or which is
reasonably related to the products or services offered by the Company.  The Employee hereby acknowledges that, by
virtue of the Employee’s position and access to information, the Employee will
have advantageous familiarity and personal contacts with the Company’s
customers, wherever located, and that the restrictions contemplated hereby are
reasonable for the protection of the Company’s goodwill and customer base, and
the Company’s efforts in the development of such customers.

 

           (c) 
If the Employee does not comply with the provisions of this Section 7,
the eighteen (18) month period of non-competition provided herein shall be
tolled and deemed not to run during any period(s) of noncompliance, the
intention of the parties being to provide eighteen (18)  full months of non-competition by the
Employee after the termination or expiration of this Agreement.

 

           Section
8.  Covenant Not to Disclose
Confidential Information.

           (a) 
The term “Confidential Information” as used herein shall mean any and all
software programs, customer lists, trade secrets and information, know-how,
skills, knowledge, ideas, knowledge of customer’s commercial requirements,
pricing methods, sales and marketing techniques, dealer relationships and
agreements, financial information, intellectual property, 

 

3

 

codes, algorithms,
research, development, research and development programs, processes,
documentation, inventions, or devices used in or pertaining to the Company’s
business (i) which relate in any way to the Company’s business, products or
processes; or (ii) which are discovered, conceived, developed or reduced to
practice by the Employee, either alone or with others either (x) during the
term of this Agreement; or (y) at the Company’s expense; or (z) on the
Company’s premises or with the Company’s equipment.

 

           (b) 
During the course of his/her services hereunder, the Employee may become
knowledgeable about, or become in possession of, Confidential Information.  If such Confidential Information were to be
divulged or become known to any competitor of the Company or to any other
person outside the employ of the Company, or if the Employee were to consent to
be employed by any competitor of the Company or to engage in competition with
the Company, the Company would be harmed. 
In addition, the Employee has or may develop relationships with the
Company’s customers which could be used to solicit the business of such
customers away from the Company.  The
parties have entered into this Agreement to guard against such potential harm.

 

           (c) 
The Employee shall not, directly or indirectly, use any Confidential
Information for any purpose other than the benefit of the Company or
communicate, deliver, exhibit or provide any Confidential Information to any
person, firm, partnership, corporation, organization or entity, except other
employees or agents of the Company as required in the normal course of  the Employee’s service as an employee or
except as the President or any authorized officer of the Company may direct in
writing.  The covenant contained in this
Section 8 shall be binding upon the Employee during the term of this Agreement
and following the termination hereof, for the shorter of the period until
either (i) until such Confidential Information becomes obsolete; or  (ii) until such Confidential Information
becomes generally known in the Company’s trade or industry by means other than
a breach of this covenant.

 

           (d) 
The Employee agrees that all Confidential Information and all records,
documents and materials relating to all of such Confidential Information, shall
be and remain the sole and exclusive property of the Company.

 

Section 9.  Remedies.

           (a) 
The Employee agrees that the Company will suffer irreparable damage and
injury and will not have an adequate remedy at law in the event of any breach
by the Employee of any provision of Sections 7 or 8 hereof.  Accordingly, in the event of a breach or of
a threatened or attempted breach by the Employee of Sections 7 or 8 hereof, in
addition to all other remedies to which the Company is entitled under law, in
equity, or otherwise, the Company shall be entitled to a temporary restraining
order and permanent injunction (without the necessity of showing any actual
damage) or a decree of specific performance of the provisions of Sections 7 or
8 hereof and no bond or other security shall be required in that
connection.  The Company shall be
entitled to recover from the Employee, reasonable attorneys’ fees and expenses
incurred in any action wherein the Company successfully enforces the provisions
of Sections 7 or 8 hereof against the breach or threatened breach of those
provisions by the Employee.

 

4

 

           (b)        The
Employee acknowledges and agrees that in the event of termination of this
Agreement for any reason whatsoever, the Employee can obtain other engagements
or employment of a kind and nature similar to that contemplated herein and that
the issuance of an injunction to enforce the provisions of Sections 7 or 8
hereof will not prevent the Employee from earning a livelihood.

 

           (c)         The
covenants on the part of the Employee contained in Sections 7 or 8 hereof are
essential terms and conditions to the Company entering into this Agreement, and
shall be construed as independent of any other provision in this
Agreement.  The existence of any claim
or cause of action the Employee has against the Company, whether predicated on
this Agreement or otherwise, shall not constitute a defense to the enforcement by
the Company of these covenants.

 

           Section 10.  Inventions.

           (a) The Employee shall disclose fully to the Company all
inventions (as defined below) conceived or discovered by the Employee, whether
solely or jointly with others during the term of this Agreement.  Such inventions shall belong solely to the
Company and shall not belong to the Employee. 
During the term of this Agreement, the Employee shall assign to the
Company, exclusively and free from any royalty obligation or any other legal or
equitable title or right of the Employee, all such inventions referred to above
and all patents, trademarks, copyrights, and maskworks, and any and all
applications and rights pertaining thereto on a worldwide basis.  The Employee shall assist the Company,
during and subsequent to the term hereof, in every proper way, but without any
further compensation or additional consideration, to transfer and assign such
inventions to and for the Company’s benefit and enjoyment and to cooperate as
may be reasonably requested to perfect the Company’s ownership therein and, if
requested by the Company, to prosecute or direct in prosecuting any application
for or registration with respect to any patent or other applicable intellectual
property right, including, but not in limitation thereof, the execution and
delivery of applications for the registration of one or more intellectual
property rights and assignments of the same as may be deemed necessary or
desirable by the Company in any office selected by the Company.  The judgment of the Company with respect to
the registrability of any particular item of intellectual property shall be
final and conclusive as between the Employee and the Company.

 

           (b) 
Any improvements made upon such inventions by the Employee subsequent to
the term hereof shall be presumed to have been developed during the term hereof
and by and for the benefit of the Company and accordingly shall be the property
of the Company.

 

           (c) 
The Employee agrees to execute such other standard forms relating to the
invention or development of inventions and other intellectual properties as the
Company may require of its consultants and employees generally.

           (d) 
Prior inventions of the Employee, if any, as listed on the Addendum, are
excluded from the scope of this Agreement.

 

           (e) For purposes of this Agreement,
“inventions” includes all inventions, creations, developments, software
programs, algorithms, routines, patterns, components, compilations, 

 

5

 

devices, or
improvements of any kind or nature, whether or not trade secret, patented,
patentable, copyrighted or copyrightable, which the Employee had made or
conceived or developed or may make, conceive or develop, either solely or
jointly with others, while in the employ of the Company or with the use of the
Company’s time, materials, equipment or facilities or relating in any way to
the  Company’s actual, anticipated, or
subsequently arising business, products, services or activities, or arising out
of or suggested by any task assigned to be performed by the Employee, solely or
jointly with others, for or on behalf of the Company.

 

           Section 11.  Surrender of Records. 
Upon termination of the Employee’s employment for any reason, the
Employee shall immediately surrender to the Company any and all records, notes,
documents, forms, manuals, photographs, instructions, lists, drawings,
blueprints, programs, diagrams or other written, printed or electronic material
(including any and all copies made at any time whatsoever) in his or her
possession or control which pertain to the business of the Company.

 

           Section 12.  Termination.  
During the initial term or any renewal term, the employment of the
Employee may be terminated at will for any reason by either the Company or the
Employee, with at least ten (10) days prior written notice by the terminating
party delivered to the other setting forth whether such termination was for
cause or without cause to determine whether the Employee is entitled to any
severance payment pursuant to Section 5 above. 
Notwithstanding the foregoing, this Agreement shall be terminated
immediately, without any notice or waiting period, upon the Employee’s
death.  This Agreement may be terminated
at any time by mutual agreement of the parties.

 

           Section 13.  Parties Bound. 
All provisions of this Agreement shall inure to the benefit of and be
binding upon the parties hereto, their heirs, personal representatives,
successors and assigns.

 

           Section 14.  Effect and Modification.  This Agreement comprises the entire agreement between the parties
with respect to the subject matter hereof and supersedes all other earlier
agreements relating to the subject matter hereof.  No statement or promise, except as herein set forth, has been
made with respect to the subject matter of this Agreement.  No modification or amendment hereof shall be
effective unless in writing and signed by the Employee and an officer of the
Company (other than the Employee).

 

           Section 15.  Non-Waiver. 
The Company’s or the Employee’s failure or refusal to enforce all or any
part of, or the Company’s or the Employee’s waiver of any breach of this
Agreement, shall not be a waiver of the Company’s or the Employee’s continuing
or subsequent rights under this Agreement, nor shall such failure or refusal or
waiver have any affect on the subsequent enforceability of this Agreement.

 

           Section 16.  Non-Assignability. 
This Agreement contemplates that the Employee will personally provide
the services described herein, and accordingly, the Employee may not assign the
Employee’s rights or obligations hereunder, whether by operation of law or
otherwise, in whole or in part, without the prior written consent of the
Company.

 

6

 

           Section 17.  Notice.  Any
notice, request, instruction or other document to be given hereunder to any
party shall be in writing and delivered by hand, telegram, registered or
certified United States mail return receipt requested, or other form of
receipted delivery, with all expenses of delivery prepaid, as follows:

 

	
             If to the Employee:

  	
   

  	
  To the most recent
  address the Company has on its records.

  Employees most recent address (please fill in):

  
	
   

  	
   

  	
  11428 Peed Road

  
	
   

  	
   

  	
  Raleigh, NC 27614

  
	
   

  	
   

  	
   

  
	
             If to the Company:

  	
   

  	
  Interactive
  Intelligence, Inc.

  
	
   

  	
   

  	
  7601 Interactive Way

  
	
   

  	
   

  	
  Indianapolis, IN 46278

  
	
   

  	
   

  	
  Attn:  Donald E. Brown, M.D., President

  

 

Any notice to the
employee shall also be sufficient, if sent to the most recent address of the
employee on the Company’s books and records.

 

           Section 18.  Governing Law. 
This Agreement is being delivered in and shall be governed by the laws
of the State of Indiana.  All actions or
proceedings shall be tried in the state or federal courts whose venue includes
Marion County or Hamilton County, Indiana.

 

           Section 19.  Prior Agreements.

           (a) 
The Employee represents and warrants to the Company that the Employee is
not a party to or otherwise bound by any agreement that would restrict in any
way the performance by the Employee of the Employee’s duties, services and
obligations under this Agreement, that the Employee has disclosed to the
Company all employment type agreements to which the Employee has been bound,
including without limitation employment agreements, consulting agreements,
non-compete agreements or covenants, confidentiality or non-disclosure
agreements or covenants, and intellectual property assignment agreements, and
that the Company will not have any liability to any third party arising out of
the Employee entering into this Agreement or performing hereunder.

 

           IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed as of the day and year first above
written.

 

	
   

  	
   

  	
   

  	
  /s/ Donna LeGrand

  	
   

  
	
   

  	
   

  	
   

  	
  Printed: Donna LeGrand

  

 

 

                                                                                           INTERACTIVE
INTELLIGENCE, INC.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By: /s/ Keith Midkiff

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Keith Midkiff, Chief
  Financial Officer

  
										

 

7

 

ADDENDUM TO EMPLOYMENT AGREEMENT

BETWEEN INTERACTIVE INTELLIGENCE,
INC.

AND

DONNA LEGRAND, DATED, AUGUST 11, 2003

 

 

This Addendum
relates to the Employment Agreement between Interactive Intelligence, Inc. and,
Donna LeGrand dated August 11, 2003. 
This Addendum is incorporated therein by reference and shall be an
integral part of the Employment Agreement.

 

 

	
  1.  Name of Employee:

  	
  Donna LeGrand

  
	
   

  	
   

  
	
  2.  Initial Term:

  	
  Two (2) Years

  
	
   

  	
   

  
	
  3.  Date of Commencement:

  	
  August 11, 2003

  
	
   

  	
   

  
	
  4.  Date Initial Term Ends:

  	
  August 11, 2005

  
	
   

  	
   

  
	
  5.  Title:

  	
  General Corporate
  Counsel

  
	
   

  	
   

  
	
  6.  Job Description:

  	
  Administration

  
	
   

  	
   

  
	
  7.  Initial Compensation:

  	
  $150,000

  
	
   

  	
   

  
	
  8.  Stock Options:

  	
   

  
	
                  – Plan

  	
  Incentive Stock
  Option Plan (“Qualified”)

  
	
                  – Number

  	
  #15,000 (fifteen
  thousand) shares

  
	
                  – Exercise Price

  	
  Price in effect
  as of the grant date

  
	
   

  	
   

  
	
  9.  Amount of Vacation:

  	
  Three (3) weeks per
  calendar year

  
	
   

  	
   

  
	
  10.  Other Benefits:

  	
  Medical, Vision and
  Dental Insurance, 401k Plan,

  Long Term Disability, Cafeteria 125 Plan

  
	
   

  	
   

  
	
  11.  Prior Inventions:

  	
   

  
	
   

  	
   

  
	
  Date: August 11, 2003

  	
  /s/ KAM

  	
   

  	
  /s/ DGL

  
	
   

  	
  Initials

  	
   

  	
  Initials

  
	
   

  	
   

  
	
  (#31613 and
  40525)

   

  RAG/bac/SS-49204-1

  	
   

  

 

8

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