Document:

bm20090824_8k-103.htm

    

     

    BELL
MICROPRODUCTS INC.

     

    2009
EQUITY INCENTIVE PLAN

     

    NOTICE
OF GRANT OF RESTRICTED STOCK UNITS

     

    Unless
otherwise defined herein, the terms defined in the Bell Microproducts Inc. 2009
Equity Incentive Plan (the “Plan”) will have the same defined meanings in this
Notice of Grant of Restricted Stock Units (the “Notice of Grant”) and Terms and
Conditions of Restricted Stock Unit Grant, attached hereto as Exhibit A (together,
the “Award Agreement”).

    

    
      
        
          	
                  Participant:

                	 
      	 
      
	
                  Address:

                	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

        

      

    

     

    

     

    You have
been granted the right to receive an Award of Restricted Stock Units, subject to
the terms and conditions of the Plan and this Award Agreement, as
follows:

    

    
      
        	
                Grant
      Number

              	 
      	 
      
	
                Date
      of Grant

              	 
      	 
      
	
                Vesting
      Commencement Date

              	 
      	 
      
	
                Number
      of Restricted Stock Units

              	 
      	 
      
	
                Term/Expiration
      Date

              	 
      	 
      

      

    

     

    Vesting
Schedule:

     

    Subject
to any acceleration provisions contained in the Plan or set forth below, the
Restricted Stock Unit will vest in accordance with the following
schedule:

     

    [Twenty-five
percent (25%) of the Shares subject to the Award of Restricted Stock Units will
vest on the first anniversary of the Vesting Commencement Date and 1/16th of the
Shares initially subject to the Award shall vest each quarter thereafter, so as
to be 100% vested on the fourth anniversary of the Vesting Commencement Date, so
long as Participant remains a Service Provider through each such vesting
date.]

     

    In the
event Participant ceases to be a Service Provider for any or no reason before
Participant vests in the Restricted Stock Unit, the Restricted Stock Unit and
Participant’s right to acquire Shares hereunder will immediately
terminate.

    

    By
Participant’s signature and the signature of the representative of Bell
Microproducts Inc. (the “Company”) below,
Participant and the Company agree that this Award of Restricted Stock Units is
granted under and governed by the terms and conditions of the Plan and this
Award Agreement, including the Terms and Conditions of Restricted Stock Unit
Grant, attached hereto as Exhibit A, all of
which are made a part of this document.  Participant has reviewed the
Plan and this Award Agreement in their
entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Award Agreement and fully understands all provisions of the Plan
and Award Agreement.  Participant hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon
any questions relating to the Plan and Award Agreement.  Participant
further agrees to notify the Company upon any change in the residence address
indicated below.

     

    
      	Submitted
      by:	 	 	 Accepted
      by:	 
	 PURCHASER	 	 	 BELL
      MICROPRODUCTS INC.	 
	
               

            	 	 	
               

               

            	 
	
              Signature

            	 	 	
              By 

            	 
	
               

               

            	 	 	 	 
	Print
      Name	 	 	Title 	 
	
               

            	 	 	
               

               

            	 
	
              Date

            	 	 	Date	 
	 	 	 	
               

            	 
	 Residence
      Address:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    TERMS
AND CONDITIONS OF RESTRICTED STOCK UNIT GRANT

     

    1.           Grant.  The
Company hereby grants to the Participant named in the Notice of Grant of this Award Agreement (the
“Participant”) under the Plan an Award of Restricted Stock Units, subject to all
of the terms and conditions in this Award Agreement and the Plan,
which is incorporated herein by reference.  Subject to Section 23(c)
of the Plan, in the event of a conflict between the terms and conditions of the
Plan and the terms and conditions of this Award Agreement, the terms and
conditions of the Plan will prevail.

     

    2.           Company’s Obligation to
Pay.  Each Restricted Stock Unit represents the right to
receive a Share on the date it vests.  Unless and until the Restricted
Stock Units will have vested in the manner set forth in Section 3,
Participant will have no right to payment of any such Restricted Stock
Units.  Prior to actual payment of any vested Restricted Stock Units,
such Restricted Stock Unit will represent an unsecured obligation of the
Company, payable (if at all) only from the general assets of the
Company.  Any Restricted Stock Units that vest in accordance with
Sections 3 or 4 will be paid to Participant (or in the event of Participant’s
death, to his or her estate) in whole Shares, subject to Participant satisfying
any applicable tax withholding obligations as set forth in Section
7.  Subject to the provisions of Section 4, such vested Restricted
Stock Units will be paid in Shares as soon as practicable after vesting, but in
each such case within the period ending no later than the fifteenth (15th) day of
the third (3rd) month
from the end of the Company’s tax year that includes the vesting
date.

     

    3.           Vesting
Schedule.  Except as provided in Section 4, and subject to
Section 5, the Restricted Stock Units awarded by this Award Agreement will vest
in accordance with the vesting provisions set forth in the Notice of
Grant.  Restricted Stock Units scheduled to vest on a
certain date or upon the occurrence of a certain condition will not vest in
Participant in accordance with any of the provisions of this Award Agreement, unless
Participant will have been continuously a Service Provider from the Date of
Grant until the date such vesting occurs.

     

    4.           Administrator
Discretion.  The Administrator, in its discretion, may
accelerate the vesting of the balance, or some lesser portion of the balance, of
the unvested Restricted Stock Units at any time, subject to the terms of the
Plan.  If so accelerated, such Restricted Stock Units will be
considered as having vested as of the date specified by the
Administrator.

     

    Notwithstanding
anything in the Plan or this Award Agreement to the contrary, if the vesting of
the balance, or some lesser portion of the balance, of the Restricted Stock
Units is accelerated in connection with Participant’s termination as a Service
Provider (provided that such termination is a “separation from service” within
the meaning of Section 409A, as determined by the Company), other than due to death, and if (x) Participant is a
“specified employee” within the meaning of Section 409A at the time of such
termination as a Service Provider and (y) the payment of such accelerated
Restricted Stock Units will result in the imposition of additional tax under
Section 409A if paid to Participant on or within the six (6) month period
following Participant’s termination as a Service Provider, then the payment of
such accelerated Restricted Stock Units will not be made until the date six (6)
months and one (1) day following the date of Participant’s termination as a
Service Provider, unless the Participant dies following his or her termination
as a Service Provider, in which case, the Restricted Stock Units will be paid in
Shares in accordance with Section 6 as soon as practicable following his or her
death.  It is the intent of this Award Agreement to comply with the
requirements of Section 409A so that none of the Restricted Stock Units provided
under this Award Agreement or Shares issuable thereunder will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will be
interpreted to so comply.  For purposes of this Award Agreement,
“Section 409A” means Section 409A of the Code, and any proposed, temporary or
final Treasury Regulations and Internal Revenue Service guidance thereunder, as
each may be amended from time to time.

     

    5.           Forfeiture upon Termination
of Status as a Service Provider.  Notwithstanding any contrary
provision of this Award Agreement, the balance of the Restricted Stock Units
that have not vested as of the time of Participant’s termination as a Service
Provider for any or no reason and Participant’s right to acquire any Shares
hereunder will immediately terminate.

     

    6.           Death of
Participant.  Any distribution or delivery to be made to
Participant under this Award Agreement will, if Participant is then deceased, be
made to Participant’s designated beneficiary, or if no beneficiary survives
Participant, the administrator or executor of Participant’s
estate.  Any such transferee must furnish the Company with
(a) written notice of his or her status as transferee, and
(b) evidence satisfactory to the Company to establish the validity of the
transfer and compliance with any laws or regulations pertaining to said
transfer.

     

    7.           Withholding of
Taxes.  Notwithstanding any contrary provision of this
Award Agreement, no
certificate representing the Shares will be issued to Participant, unless and
until satisfactory arrangements (as determined by the Administrator) will have
been made by Participant with respect to the payment of income, employment and
other taxes which the Company determines must be withheld with respect to such
Shares.  [The Administrator, in its sole discretion and pursuant to
such procedures as it may specify from time to time, may permit Participant to
satisfy such tax withholding obligation, in whole or in part (without
limitation) by (a) paying cash, (b) electing to have the Company
withhold otherwise deliverable Shares having a Fair Market Value equal to the
minimum amount required to be withheld, (c) delivering to the Company
already vested and owned Shares having a Fair Market Value equal to the amount
required to be withheld, or (d) selling a sufficient number of such Shares
otherwise deliverable to Participant through such means as the Company may
determine in its sole discretion (whether through a broker or otherwise) equal
to the amount required to be withheld.] To the extent determined
appropriate by the Company in its discretion, it will have the right (but not
the obligation) to satisfy any tax withholding obligations by reducing the
number of Shares otherwise deliverable to Participant.  If Participant
fails to make satisfactory arrangements for the payment of any required tax
withholding obligations hereunder at the time any applicable Restricted Stock
Units otherwise are scheduled to vest pursuant to Sections 3 or 4, Participant
will permanently forfeit such Restricted Stock Units and any right to receive
Shares thereunder and the Restricted Stock Units will be returned to the Company
at no cost to the Company.

     

    8.           Rights as
Shareholder.  Neither Participant nor any person claiming under
or through Participant will have any of the rights or privileges of a
shareholder of the Company in respect of any Shares deliverable hereunder unless
and until certificates representing such Shares will have been issued, recorded
on the records of the Company or its transfer agents or registrars, and
delivered to Participant.  After such issuance, recordation and
delivery, Participant will have all the rights of a shareholder of the Company
with respect to voting such Shares and receipt of dividends and distributions on
such Shares.

     

    9.           No Guarantee of Continued
Service.  PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING
OF THE RESTRICTED STOCK UNITS PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED
ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE
PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT
OF BEING HIRED, BEING GRANTED THIS AWARD OF RESTRICTED STOCK UNITS OR ACQUIRING
SHARES HEREUNDER.  PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT
THIS AWARD AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING
SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF
CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY
PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR
THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING
PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT
ANY TIME, WITH OR WITHOUT CAUSE.

     

    10.           Address for
Notices.  Any notice to be given to the Company under the terms
of this Award Agreement will be addressed to the Company, in care of its
Secretary at Bell Microproducts Inc., 1941 Ringwood Avenue, San Jose,
California, 95151, or at such other address as the Company may hereafter
designate in writing.

     

    11.           Grant is Not
Transferable.  Except to the limited extent provided in
Section 6, this grant and the rights and privileges conferred hereby will
not be transferred, assigned, pledged or hypothecated in any way (whether by
operation of law or otherwise) and will not be subject to sale under execution,
attachment or similar process.  Upon any attempt to transfer, assign,
pledge, hypothecate or otherwise dispose of this grant, or any right or
privilege conferred hereby, or upon any attempted sale under any execution,
attachment or similar process, this grant and the rights and privileges
conferred hereby immediately will become null and void.

     

    12.           Binding
Agreement.  Subject to the limitation on the transferability of
this grant contained herein, this Award Agreement will be binding
upon and inure to the benefit of the heirs, legatees, legal representatives,
successors and assigns of the parties hereto.

     

    13.           Additional Conditions to
Issuance of Stock.  If at any time the Company will determine,
in its discretion, that the listing, registration or qualification of the Shares
upon any securities exchange or under any state or federal law, or the consent
or approval of any governmental regulatory authority is necessary or desirable
as a condition to the issuance of Shares to Participant (or his or her estate),
such issuance will not occur unless and until such listing, registration,
qualification, consent or approval will have been effected or obtained free of
any conditions not acceptable to the Company.  Where the Company
determines that the delivery of the payment of any Shares will violate federal
securities laws or other applicable laws, the Company will defer delivery until
the earliest date at which the Company reasonably anticipates that the delivery
of Shares will no longer cause such violation.  The Company will make
all reasonable efforts to meet the requirements of any such state or federal law
or securities exchange and to obtain any such consent or approval of any such
governmental authority.

     

    14.           Plan
Governs.  This Award Agreement is subject to all terms and
provisions of the Plan.  In the event of a conflict between one or
more provisions of this Award Agreement and one or more provisions of the Plan,
the provisions of the Plan will govern.  Capitalized terms used and
not defined in this Award Agreement will have the meaning set forth in the
Plan.

     

    15.           Administrator
Authority.  The Administrator will have the power to interpret
the Plan and this Award Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules (including, but not limited
to, the determination of whether or not any Restricted Stock Units have
vested).  All actions taken and all interpretations and determinations
made by the Administrator in good faith will be final and binding upon
Participant, the Company and all other interested persons.  No member
of the Administrator will be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or this Award Agreement.

     

    16.           Electronic
Delivery.  The Company may, in its sole discretion, decide to
deliver any documents related to Restricted Stock Units awarded under the Plan
or future Restricted Stock Units that may be awarded under the Plan by
electronic means or request Participant’s consent to participate in the Plan by
electronic means.  Participant hereby consents to receive such
documents by electronic delivery and agrees to participate in the Plan through
any on-line or electronic system established and maintained by the Company or
another third party designated by the Company.

     

    17.           Captions.  Captions
provided herein are for convenience only and are not to serve as a basis for
interpretation or construction of this Award Agreement.

     

    18.           Agreement
Severable.  In the event that any provision in this Award Agreement will be held
invalid or unenforceable, such provision will be severable from, and such
invalidity or unenforceability will not be construed to have any effect on, the
remaining provisions of this Award Agreement.

     

    19.           Modifications to the
Agreement.  This Award Agreement constitutes the
entire understanding of the parties on the subjects
covered.  Participant expressly warrants that he or she is not
accepting this Award Agreement in reliance on
any promises, representations, or inducements other than those contained
herein.  Modifications to this Award Agreement or the Plan can be made
only in an express written contract executed by a duly authorized officer of the
Company.  Notwithstanding anything to the contrary in the Plan or this
Award Agreement, the
Company reserves the right to revise this Award Agreement as it deems necessary
or advisable, in its sole discretion and without the consent of Participant, to
comply with Section 409A or to otherwise avoid imposition of any additional tax
or income recognition under Section 409A in connection to this Award of
Restricted Stock Units.

     

    20.           Amendment, Suspension or
Termination of the Plan.  By accepting this Award, Participant
expressly warrants that he or she has received an Award of Restricted Stock
Units under the Plan, and has received, read and understood a description of the
Plan.  Participant understands that the Plan is discretionary in
nature and may be amended, suspended or terminated by the Company at any
time.

     

    21.           Governing
Law.  This Award Agreement will be governed by the laws of the
State of California, without giving effect to the conflict of law principles
thereof.  For purposes of litigating any dispute that arises under
this Award of Restricted Stock Units or this Award Agreement, the parties hereby
submit to and consent to the jurisdiction of the State of California, and agree that such
litigation will be conducted in the courts of Santa Clara County,
California, or the
federal courts for the United States for the Northern District of California,
and no other courts, where this Award of Restricted Stock Units is made and/or
to be performed.bm20090824_8k-104.htm

    

      MANAGEMENT RETENTION
AGREEMENT

      

      

      THIS
MANAGEMENT RETENTION AGREEMENT (the “Agreement”) is made and entered into by and
between ____________________ (the “Employee”) and Bell
Microproducts Inc. (the “Company”), on _____________, ____ (the
“Effective Date”).

      

      R E C I T A L
S

      

      A.           It
is expected that the Company from time to time will consider the possibility of
an acquisition by another company or other change of control.  The
Board of Directors of the Company (the “Board”) recognizes that such
consideration can be a distraction to the Employee and can cause the Employee to
consider alternative employment opportunities.  The Board has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication and objectivity of
the Employee, notwithstanding the possibility, threat or occurrence of a Change
of Control (as defined below) of the Company.

      

      B.           The
Board believes that it is in the best interests of the Company and its
shareholders to provide the Employee with an incentive to continue his
employment and to motivate the Employee to maximize the value of the Company
upon a Change of Control for the benefit of its shareholders.

      

      C.           The
Board believes that it is imperative to provide the Employee with certain
severance benefits upon Employee’s termination of employment following a Change
of Control which provides the Employee with enhanced financial security and
provides incentive and encouragement to the Employee to remain with the Company
notwithstanding the possibility of a Change of Control.

      

      D.           Certain
capitalized terms used in the Agreement are defined in Section 5
below.

      

      The
parties hereto agree as follows:

      

      1.           Term of
Agreement.  The term of this Agreement shall initially be three
years following the Effective Date (“Initial Term”), and shall automatically be
extended for successive one year periods (“Extended Term”) unless the agreement
is terminated, amended or modified by the Company prior to the end of the
Initial Term or any Extended Term.  Upon the Employee’s resignation or
the termination of Employee’s employment, for any reason, this Agreement is
automatically terminated except as provided in Section 3.

      

      2.           At-Will
Employment.  The Company and the Employee acknowledge that the
Employee’s employment is and shall continue to be at-will, as defined under
applicable law.  If the Employee’s employment terminates for any
reason, including (without limitation) any termination prior to a Change of
Control, the Employee shall not be entitled to any payments, benefits, damages,
awards or compensation other than as provided by this Agreement, or as may
otherwise be available in accordance with the Company’s written employee plans
or pursuant to other written agreements with the Company; provided, however,
that if severance benefits are triggered under Section 3(a) hereof, then
Employee shall not be eligible for additional severance benefits under any other
plan or agreement with the Company, except as required by statute (such as COBRA
or similar state laws).

      

      3.           Severance
Benefits.

      

      (a)           Termination Following A
Change of Control.  If the Employee’s employment terminates at
any time within twelve (12) months following a Change of Control, then, subject
to Section 4, the Employee shall be entitled to receive the following severance
benefits:

      

      (i)           Involuntary
Termination.  If the Employee’s
employment is the result of Involuntary Termination other than for Cause, then
the Employee shall receive the following severance benefits from the
Company:

      

      (1)           Severance
Payment.  A cash payment in an amount equal to one hundred
percent (100%) of the Employee’s Base Salary.

      

      (2)           Continued Employee
Benefits.  For a period of twelve (12) months following
employee’s termination, the Company will pay one hundred percent (100%) of the
Employee’s premiums for coverage under Title X of the Consolidated Budget
Reconciliation Act of 1985 (“COBRA”), for health, dental, and vision insurance
when due (subject to Employee timely electing COBRA coverage).  If
Employee’s coverage immediately prior to the Change of Control included
Employee’s dependents, such dependents shall also be covered under the premium
payments by the Company.  Company-paid premiums shall continue until
the earlier of (i) one year from the date of the Change of Control, or (ii) the
date that the Employee and his dependents become covered under another
employer’s group health, dental, or vision insurance plans that provide Employee
and his dependents with comparable benefits and levels of coverage.

      

      
        (3)           Accelerated
Vesting.  One hundred percent (100%) of the unvested portion of
any stock option, restricted stock and restricted stock units held by the
Employee shall automatically be accelerated in full so as to become completely
vested.

      

      
        

      

      (b)           Timing of Severance
Payments.  Subject to any delay required to avoid the
imposition of additional taxes under Internal Revenue Code Section 409A, any
severance payment to which Employee is entitled under Section 3(a)(i) shall be
paid by the Company to the Employee (or to the Employee’s successors in
interest, pursuant to Section 6(b)) in cash and in full, not later than thirty
(30) calendar days following the Termination Date.  In no event shall
payment be made later than two and one-half (21⁄2) months following the calendar
year in which the Termination Date occurs.

      

      (c)           Voluntary Resignation;
Termination For Cause.  If the Employee’s employment terminates
by reason of the Employee’s voluntary resignation (and is not an Involuntary
Termination), or if the Employee is terminated for Cause, then the Employee
shall not be entitled to receive severance or other benefits except for those
(if any) as may then be established under the Company’s then existing written
employee plans or pursuant to other written agreements with the
Company.

      

      (d)           Disability;
Death.  If the Company terminates the Employee’s employment as
a result of the Employee’s Disability, or such Employee’s employment is
terminated due to the death of the Employee, then the Employee shall not be
entitled to receive severance or other benefits except for those (if any) as may
then be established under the Company’s then-existing written employee plans or
pursuant to other written agreements with the Company.

      

      (e)           Termination Apart from
Change of Control.  In the event the Employee’s employment is
terminated for any reason, either prior to the occurrence of a Change of Control
or after the twelve (12)-month period following a Change of Control, then the
Employee shall be entitled to receive severance and any other benefits only as
may then be established under the Company’s existing severance and benefits
plans and practices or pursuant to other agreements with the
Company.

      

      
        4.           Limitation on
Payments.  In the event that the severance and other benefits
provided for in this Agreement or otherwise payable to the Employee
(i) constitute “parachute payments” within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for
this Section 4, would be subject to the excise tax imposed by Section 4999 of
the Code, then the Employee’s severance benefits under Section 3(a)(i)
shall be reduced as to such lesser extent as would result in no portion of such
severance benefits being subject to excise tax under Section 4999 of the
Code.  Unless the Company and the Employee otherwise agree in writing,
any determination required under this Section 4 will be made in writing by a
national “Big Four” accounting firm selected by the Company or such other person
or entity to which the parties mutually agree (the “Accountants”), whose
determination shall be conclusive and binding upon the Employee and the Company
for all purposes.  For purposes of making the calculations required by
this Section 4, the Accountants may make reasonable assumptions and
approximations concerning applicable taxes and may rely on reasonable, good
faith interpretations concerning the application of Sections 280G and 4999 of
the Code.  The Company and the Employee shall furnish to the
Accountants such information and documents as the Accountants may reasonably
request in order to make a determination under this Section.  The
Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section 4.  Any
reduction in payments and/or benefits required by this Section 4 shall
occur in the following order: (1) reduction of cash payments; (2) reduction of
full-value equity award vesting acceleration, (3) reduction of stock option
vesting acceleration, and (4) reduction of other benefits paid to
Employee.  In the event that acceleration of vesting of equity awards
is to be reduced, such acceleration of vesting shall be cancelled in the reverse
order of the date of grant for Employee equity awards.

      

      

      5.           Definition of
Terms.  The following terms referred to in this Agreement shall
have the following meanings:

      

      (a)           Base
Salary.  “Base Salary” means an amount equal to twelve (12)
times Employee’s monthly Company salary for the last full month preceding the
Change of Control.

      

      (b)           Cause.  “Cause”
shall mean (i) any act of personal dishonesty taken by the Employee in
connection with his responsibilities as an employee and intended to result in
substantial personal enrichment of the Employee, (ii) the conviction of a
felony, (iii) a willful act by the Employee which constitutes gross misconduct
and which is injurious to the Company, and (iv) following delivery to the
Employee of a written demand for performance from the Company which describes
the basis for the Company’s belief that the Employee has not substantially
performed his duties, continued violations by the Employee of the Employee’s
obligations to the Company which are demonstrably willful and deliberate on the
Employee’s part.

      

      
        (c)           Change of
Control.  “Change of Control” means the occurrence of any of
the following events:

      

      

      (i)           Any
“person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under said Act), directly or indirectly,
of securities of the Company representing 50% or more of the total voting power
represented by the Company’s then outstanding voting securities; or

      

      (ii)                      A
change in the composition of the Board occurring within a two-year period, as a
result of which fewer than a majority of the directors are Incumbent
Directors.  “Incumbent Directors” shall mean directors who either
(A) are directors of the Company as of the date hereof, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of the Incumbent Directors at the time of such election or
nomination (but shall not include an individual whose election or nomination is
in connection with an actual or threatened proxy contest relating to the
election of directors to the Company).

      

      (iii)                      The
shareholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least fifty percent
(50%) of the total voting power represented by the voting securities of the
Company or such surviving entity outstanding immediately after such merger or
consolidation, or the shareholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all the Company’s assets.

      

      (d)           Disability.  “Disability”
shall mean that the Employee has been unable to perform his Company duties as
the result of his incapacity due to physical or mental illness, and such
inability, at least 26 weeks after its commencement, is determined to be total
and permanent by a physician selected by the Company or its insurers and
acceptable to the Employee or the Employee’s legal representative (such
Agreement as to acceptability not to be unreasonably
withheld).  Termination resulting from Disability may only be effected
after at least 30 days’ written notice by the Company of its intention to
terminate the Employee’s employment.  In the event that the Employee
resumes the performance of substantially all of his duties hereunder before the
termination of his employment becomes effective, the notice of intent to
terminate shall automatically be deemed to have been revoked.

      

      (e)           Involuntary
Termination.  “Involuntary Termination” shall mean (i) without
the Employee’s express written consent, the significant reduction of the
Employee’s duties, authority or responsibilities, relative to the Employee’s
duties, authority or responsibilities as in effect immediately prior to such
reduction, or the assignment to Employee of such reduced duties, authority or
responsibilities; (ii) without the Employee’s express written consent, a
substantial reduction, without good business reasons, of the facilities and
perquisites (including office space and location) available to the Employee
immediately prior to such reduction; (iii) a reduction by the Company in the
base salary of the Employee as in effect immediately prior to such reduction;
(iv) a material reduction by the Company in the kind or level of employee
benefits, including bonuses, to which the Employee was entitled immediately
prior to such reduction with the result that the Employee’s overall benefits
package is significantly reduced; (v) the relocation of the Employee to a
facility or a location more than thirty-five (35) miles from the Employee’s
then-present location, without the Employee’s express written consent; (vi) any
purported termination of the Employee by the Company which is not effected for
Disability or for Cause, or any purported termination for which the grounds
relied upon are not valid; (vii) the failure of the Company to obtain the
assumption of this agreement by any successors contemplated in Section 6(a)
below; or (viii) any act or set of facts or circumstances which would,
under California case law or statute constitute a constructive termination of
the Employee.

      

      (f)           Termination
Date.  “Termination Date” shall mean (i) if this Agreement is
terminated by the Company for Disability, thirty (30) days after notice of
termination is given to the Employee (provided that the Employee shall not have
returned to the performance of the Employee’s duties on a full-time basis during
such thirty (30)-day period), (ii) if the Employee’s employment is terminated by
the Company for any other reason, the date on which a notice of termination is
given, provided that if within thirty (30) days after the Company gives the
Employee notice of termination, the Employee notifies the Company that a dispute
exists concerning the termination or the benefits due pursuant to this
Agreement, then the Termination Date shall be the date on which such dispute is
finally determined, either by mutual written agreement of the parties, or a by
final judgment, order or decree of a court of competent jurisdiction (the time
for appeal therefrom having expired and no appeal having been perfected), or
(iii) if the Agreement is terminated by the Employee, the date on which the
Employee delivers the notice of termination to the Company.

      

      6.           Successors.

      

      (a)           Company’s
Successors.  Any successor to the Company (whether direct or
indirect and whether by purchase, merger, consolidation, liquidation or
otherwise) to all or substantially all of the Company’s business and/or assets
shall assume the obligations under this Agreement and agree expressly to perform
the obligations under this Agreement in the same manner and to the same extent
as the Company would be required to perform such obligations in the absence of a
succession.  For all purposes under this Agreement, the term “Company”
shall include any successor to the Company’s business and/or assets which
executes and delivers the assumption agreement described in this
Section 6(a) or which becomes bound by the terms of this Agreement by
operation of law.

      

      (b)           Employee’s
Successors.  The terms of this Agreement and all rights of the
Employee hereunder shall inure to the benefit of, and be enforceable by, the
Employee’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

      

      7.           Notice.

      

      (a)           General.  Notices
and all other communications contemplated by this Agreement shall be in writing
and shall be deemed to have been duly given when personally delivered or when
mailed by U.S. registered or certified mail, return receipt requested and
postage prepaid.  In the case of the Employee, mailed notices shall be
addressed to him at the home address which he most recently communicated to the
Company in writing.  In the case of the Company, mailed notices shall
be addressed to its corporate headquarters, and all notices shall be directed to
the attention of its Secretary.

      

      
        (b)           Notice of
Termination.  Any termination by the Company for Cause or by
the Employee as a result of a voluntary resignation or an Involuntary
Termination shall be communicated by a notice of termination to the other party
hereto given in accordance with Section 7(a) of this Agreement.  Such
notice shall indicate the specific termination provision in this Agreement
relied upon, shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination under the provision so indicated, and
shall specify the termination date (which shall be not more than 30 days after
the giving of such notice).  The failure by the Employee to include in
the notice any fact or circumstance which contributes to a showing of
Involuntary Termination shall not waive any right of the Employee hereunder or
preclude the Employee from asserting such fact or circumstance in enforcing his
rights hereunder.

      

      
        

      

      
        8.           Code Section
409A.

      

      
        

      

      
        (a)           Separation From
Service.  Notwithstanding anything to the contrary in this
Agreement, no severance payments or benefits payable to Employee, if any,
pursuant to this Agreement that, when considered together with any other
severance payments or separation benefits, is considered deferred compensation
under Section 409A (together, the “Deferred Payments”) will be payable until
Employee has a “separation from service” within the meaning of
Section 409A.  Similarly, no severance payable to Employee, if
any, pursuant to this Agreement that otherwise would be exempt from Section 409A
pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable
until Employee has a “separation from service” within the meaning of Section
409A.

      

      
        

      

      
        (b)           Specified
Employees.  Further, if Employee is a “specified employee”
within the meaning of Section 409A at the time of separation from service
(other than due to death), any Deferred Payments that otherwise are payable
within the first six (6) months following Employee’s separation from service
will become payable on the first payroll date that occurs on or after the date
six (6) months and one (1) day following the date of Employee’s separation from
service.  All subsequent Deferred Payments, if any, will be payable in
accordance with the payment schedule applicable to each payment or
benefit.  Notwithstanding anything herein to the contrary, in the
event of Employee’s death following Employee’s separation from service but prior
to the six (6) month anniversary of Employee’s separation from service (or any
later delay date), then any payments delayed in accordance with this paragraph
will be payable in a lump sum as soon as administratively practicable after the
date of Employee’s death and all other Deferred Payments will be payable in
accordance with the payment schedule applicable to each payment or
benefit.  Each payment and benefit payable under the Agreement is
intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2)
of the Treasury Regulations.

      

      
        

      

      
        (c)           Certain
Payments.   Any severance payment that satisfies the
requirements of the “short-term deferral” rule set forth in Section
1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments
for purposes of the Agreement.  Any severance payment that qualifies
as a payment made as a result of an involuntary separation from service pursuant
to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed
the Section 409A Limit will not constitute Deferred Payments for purposes of the
Agreement.  For purposes of this paragraph, “Section 409A Limit” will
mean the lesser of two (2) times: (i) Employee’s annualized compensation
based upon the annual rate of pay paid to Employee during the Company’s
taxable year preceding the Company’s taxable year of Employee’s separation
from service as determined under Treasury Regulation Section
1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with
respect thereto; or (ii) the maximum amount that may be taken into account under
a qualified plan pursuant to Section 401(a)(17) of the Code for the year in
which Employee’s employment is terminated.

      

      
        

      

      
        (d)           409A
Compliance.  The foregoing provisions are intended to comply
with the requirements of Section 409A so that none of the severance
payments and benefits to be provided under the Agreement will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will
be interpreted to so comply.  Employee and the Company agree to work
together in good faith to consider amendments to the Agreement and to take such
reasonable actions which are necessary, appropriate or desirable to avoid
imposition of any additional tax or income recognition prior to actual payment
to Employee under Section 409A.

      

      
        

      

      
        9.           Miscellaneous
Provisions.

      

      

      (a)           No Duty to
Mitigate.  The Employee shall not be required to mitigate the
amount of any payment contemplated by this Agreement, nor shall any such payment
be reduced by any earnings that the Employee may receive from any other
source.

      

      (b)           Waiver.  No
provision of this Agreement shall be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and signed by the
Employee and by an authorized officer of the Company (other than the
Employee).  No waiver by either party of any breach of, or of
compliance with, any condition or provision of this Agreement by the other party
shall be considered a waiver of any other condition or provision or of the same
condition or provision at another time.

      

      (c)           Whole
Agreement.  No agreements, representations or understandings
(whether oral or written and whether express or implied) which are not expressly
set forth in this Agreement have been made or entered into by either party with
respect to the subject matter hereof.  This Agreement supersedes in
their entirety any prior or contemporaneous agreements, whether written, oral,
express or implied, relating to the subject matter hereof.

      

      (d)           Choice of
Law.  The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California.

      

      (e)           Severability.  The
invalidity or unenforceability of any provision or provisions of this Agreement
shall not affect the validity or enforceability of any other provision hereof,
which shall remain in full force and effect.

      

      (f)           Withholding.  All
payments made pursuant to this Agreement will be subject to withholding of
applicable income and employment taxes.

      

      (g)           Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together will constitute one and the same
instrument.

      

      (h)           Amendment.  Notwithstanding
anything in this Agreement to the contrary, the Company specifically reserves
the right to amend this Agreement during the Initial Term or any Extended Term
without Employee’s consent to the extent necessary or desirable to comply with
the requirements of Code Section 409A, and the regulations, notices and other
guidance of general application issued thereunder, and with any other applicable
federal or state law.

      

      This
Agreement may also be amended during the Initial Term or any Extended Term by
mutual written agreement of the parties.

      

      [remainder of page intentionally left
blank]

      

      

      

      IN WITNESS WHEREOF, each of
the parties has executed this Agreement, in the case of the Company by its duly
authorized officer, as of the day and year set forth below.

      

      

        
          
            
              	
                      COMPANY

                    	 
      	
                      BELL
      MICROPRODUCTS INC.

                    
	 
      	
                       

                       

                      By:

                    	 
      
	 
      	
                       

                      Date:

                    	 
      
	 
      	 
      	 
      
	
                       

                       

                      EMPLOYEE

                    	 
      	 
      
	 
      	
                       

                      Date:

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