Document:

exv10w47

 

Exhibit 10.47

AMENDMENT

TO

REGISTRATION RIGHTS AGREEMENT

     THIS AMENDMENT TO REGISTRATION RIGHTS AGREEMENT (this “Amendment”) is executed as of
August 2, 2007, by and among LCC International, Inc., a Delaware corporation (the
“Corporation”), RF Investors, L.L.C., a Delaware limited liability company (“RF
Investors”), and The Raj and Neera Singh Charitable Foundation, Inc. (the
“Foundation”). Terms used but not defined herein shall have the meanings ascribed to them
in the Agreement (defined below).

WITNESSETH:

     WHEREAS, on December 22, 2006 RF Investors transferred Four Million (4,000,000) shares of
Class B common stock, par value $.01 per share, of the Corporation (“Class B Common Stock”)
to the Foundation;

     WHEREAS, pursuant to the terms of the Restated Certificate of Incorporation of the
Corporation, (i) such transferred shares of Class B Common Stock were converted into shares of
Class A common stock, par value $.01 per share, of the Corporation (“Class A Common
Stock”), and (ii) the balance of 400,000 shares of Class B Common Stock owned by RF Investors
was converted into shares of Class A Common Stock;

     WHEREAS, following the transfer of Class B Common Stock by RF Investors to the Foundation, no
shares of Class B Common Stock are outstanding;

     WHEREAS, MCI Telecommunications Corporation, a Delaware corporation (“MCI”), no longer
owns any securities of the Corporation which are subject to the Registration Rights Agreement,
dated as of July 25, 1996, as amended (the “Agreement”), by and among the Corporation, RF
Investors and MCI;

     WHEREAS, the parties to this Amendment wish to amend the Agreement to provide for the addition
of the Foundation as a party to the Agreement, the removal of MCI as a party to the Agreement, the
deletion of all references to Class B Common Stock, and to make certain other changes to the
registration rights provided for in the Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter set forth,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     1. Effectiveness. This Amendment shall be effective as of December 22, 2006.

 

 

     2. Definitions.

          (a) Section 1.1 of the Agreement is hereby amended by adding the following definitions:

               “Foundation” means The Raj and Neera Singh Charitable Foundation, Inc.

               “Foundation Shareholder” means the Foundation and any successor or permitted assignee
of any of its rights hereunder that holds Registrable Securities.

          (b) The definitions of “Common Stock,” “LCC Shareholders,” “Registrable Securities” and “RF
Investors Shareholders” set forth in Section 1.1 of the Agreement are hereby amended and restated
in their entirety to read as follows:

               “Common Stock” means the Class A Common Stock.

               “LCC Shareholders” means the RF Investors Shareholders and the Foundation
Shareholder.

               “Registrable Securities” means all shares of Class A Common Stock held at the
relevant time by an LCC Shareholder, and any other issued or issuable shares of Class A
Common Stock held by an LCC Shareholder at the relevant time, either at the time of initial
issuance or subsequently, by way of a stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other reorganization. As
to any particular Registrable Securities, such securities will cease to be Registrable
Securities when (i) they have been transferred in a public offering registered under the
Securities Act, (ii) they have been transferred in a sale made through a broker, dealer or
market-maker pursuant to Rule 144 promulgated under the Securities Act, or (iii) the holder
thereof is able to sell such securities under Rule 144(k) of the Securities Act. For
purposes of this Agreement, an LCC Shareholder will be deemed to be a holder of Registrable
Securities whenever such LCC Shareholder has the right to acquire directly or indirectly
such Registrable Securities (upon conversion or exercise in connection with a transfer of
securities or otherwise, but disregarding any restrictions of limitations upon the exercise
of such right), whether or not such acquisition has actually been effected.

               “RF Investors Shareholders” means RF Investors and any successor or permitted
assignee of any of its rights hereunder, other than any Foundation Shareholder with respect
to the Class A Common Stock transferred to the Foundation on December 22, 2006.

          (c) The definitions of “Class B Common Stock” and “MCI Shareholders” set forth in Section 1.1
of the Agreement are hereby deleted in their entirety

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     3. Amendment to Section 1.2. The second sentence of Section 1.2 of the Agreement is
hereby amended and restated in its entirety to read as follows:

               “The Corporation shall be obligated only to register Registrable Securities pursuant
to this Section 1.2 on a total of two (2) occasions for the Foundation Shareholder and on
one (1) occasion for the RF Investors Shareholders; provided however, that such obligation
shall be deemed satisfied only when a registration statement covering at least 85% of all shares of Registrable Securities specified in the Registration Request shall have become
effective (unless such LCC Shareholder has withdrawn such request, in which case such
registration requested to be withdrawn shall not be counted in determining whether the
Corporation’s obligation to effect two (2) registrations for the Foundation Shareholder and
one (1) registration for the RF Investors Shareholders, as applicable, has been fulfilled)
and such registration statement shall have been continuously effective for 120 days or
until all shares thereby have been sold, if earlier.”

     4. Amendment to Section 1.4(a). Section 1.4(a) of the Agreement is hereby amended and
restated in its entirety to read as follows:

          “Registration Procedures. If and whenever the Corporation is required to use its best
efforts to effect or cause the registration of any shares under the Securities Act as provided in
this Agreement, the Corporation shall, as expeditiously as possible:

     (a) use its best efforts to prepare and file with the SEC within 90 days after receipt of a
Registration Request for registration with respect to such shares, a registration statement on any
form for which the Corporation then qualifies or which counsel for the Corporation shall deem
appropriate and which form shall be available for the sale of the shares in accordance with the
intended methods of distribution thereof, and use its best efforts to cause such registration
statement to become effective; provided that before filing with the SEC a registration statement or
prospectus or any amendments or supplements thereto, the Corporation will (i) furnish to one
counsel selected by the selling RF Investors Shareholders and one counsel selected by the selling
Foundation Shareholder copies of all such documents proposed to be filed, which documents will be
subject to the review of such counsel and (ii) notify each selling LCC Shareholder of any stop
order issued or threatened by the SEC and take all reasonable actions required to prevent the entry
of such stop order or to remove it if entered;”

     5. Amendment to Section 1.6. Section 1.6 of the Agreement is hereby amended and
restated in its entirety to read as follows:

          “Expenses. The Corporation shall, whether or not any registration statement pursuant
to this Agreement shall become effective under the Securities Act, pay all expenses incident to its
performance of or compliance with this Agreement, including without limitation, all registration
and filing fees, fees and expenses of compliance with securities or blue sky laws, printing
expenses, messenger and delivery expenses, fees and disbursements of counsel for the Corporation
and all independent public accountants

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(including the expenses of any audit or “cold comfort” letter) and other Persons retained by
the Corporation, the reasonable fees and disbursements of one counsel retained by the RF Investors
Shareholders and one counsel retained by the Foundation Shareholder and any fees and disbursements
of underwriters customarily paid by issuers or sellers of securities (excluding underwriting
commissions and discounts). In all cases, any allocation of Corporation personnel or other general
overhead expenses of the Corporation or other expenses for the preparation of financial statements
or other data normally prepared by the Corporation in the ordinary course of its business shall be
borne by the Corporation.

     6. Amendment to Section 1.9. Section 1.9 of the Agreement is hereby amended and
restated in its entirety to read as follows:

     “Transfer of Registration Rights; Successors and Assigns. The RF Investors
Shareholder may transfer or assign its rights hereunder, in whole or in part, but only to a
purchaser or other transferee of its Registrable Securities. The Foundation may not transfer or
assign any of its rights hereunder. This Agreement shall inure to the benefit of and be binding
upon the successors and permitted assigns of each of the parties. If any LCC Shareholder shall
acquire Registrable Securities, in any manner, whether by operation of law or otherwise, such
Registrable Securities shall be held subject to all of the terms of this Agreement, and by taking
and holding such Registrable Securities such Person shall be entitled to receive the benefits
hereof and shall be conclusively deemed to have agreed to be bound by all of the terms and
provisions hereof.”

     7. Amendment to Section 1.12. Section 1.12 of the Agreement is hereby amended and
restated in its entirety to read as follows:

          “Notices. All notices and other communications (collectively, “notices”) provided for
or permitted to be given under this Agreement shall be in writing and shall be given by depositing
the notice in the United States mail, addressed to the party to be notified, postage paid and
registered or certified with return receipt requested, or by such notice being delivered in person
or by facsimile communication to such party. Unless otherwise expressly set forth herein, notices
given or served pursuant hereto shall be effective upon receipt by the party to be notified. All
notices to be sent to a party hereto shall be sent to or made at the address set forth below, or
such other address as that party may specify by notice to the other parties.

(a) if to the Company:

LCC International, Inc.

7900 Westpark Drive, Suite A-315

McLean, VA 22102

Telephone: 703-873-2000

Telecopier: 703-873-2300

Attention: President

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(b) if to RF Investors:

RF Investors, L.L.C.

201 N. Union Street, Suite 360

Alexandria, VA 22314

Telephone: 709-519-3282

Attention: President

(c) if to the Foundation:

The Raj and Neera Singh Charitable Foundation, Inc.

201 N. Union Street, Suite 360

Alexandria, VA 22314

Telephone: 709-519-3282

Attention: President

     8. New Section 1.23. The Agreement is hereby amended by adding the following new
Section 1.23:

     “1.23 Termination. This Agreement shall terminate with respect to any LCC
Shareholder immediately on the first date on which such LCC Shareholder ceases to hold any
Registrable Securities.”

     9. Miscellaneous. This Amendment shall not constitute an amendment or modification of
any provision of the Agreement not expressly referred to herein. Except as expressly set forth in
this Amendment, the terms, provisions and conditions of the Agreement shall remain unchanged and in
full force and effect. This Amendment may be executed in counterparts, all of which shall together
constitute a single agreement.

     10. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT
OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION.

[signature pages follow]

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     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date set forth in the
first paragraph hereof.

	 	 	 	 	 
	 	CORPORATION:

LCC INTERNATIONAL, INC.

 	 
	 	By:  	/s/ PETER A. DELISO
 	 
	 	 	Name:  	Peter A. Deliso 	 
	 	 	Title:  	SVP, New Ventures 	 

	 	 	 	 	 
	 	RF INVESTORS:

RF INVESTORS, L.L.C.

 	 
	 	By:  	/s/ SERGE G. MARTIN
 	 
	 	 	Name:  	Serge G. Martin 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	FOUNDATION:

THE RAJ AND NEERA SINGH 

     CHARITABLE FOUNDATION, INC.

 	 
	 	By:  	/s/ SERGE G. MARTIN
 	 
	 	 	Name:  	Serge G. Martin 	 
	 	 	Title:  	Vice President & Director 	 
	 

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Exhibit 10.22

STOCK OPTION AGREEMENT

     THIS STOCK OPTION AGREEMENT (“Agreement”) is entered into effective as of June 1, 2006 by and
between K12 INC., a Delaware corporation (the “Company”), and JOHN BAULE (the “Optionee”).

RECITALS

     WHEREAS, the Company and the Optionee mutually desire that the Company grant Optionee stock
options to purchase shares of Common Stock of the Company to provide an incentive for the
Optionee’s continuous employment with the Company and to motivate the Optionee to increase value
for the Company’s stockholders.

     NOW THEREFORE, the parties agree as follows:

     1. Grant of Stock Options. Subject to the terms and conditions hereinafter set forth,
the Company hereby grants to the Optionee an option to purchase up to Four Hundred Thousand
(400,000) shares of Common Stock of the Company (the “Stock”) at an option exercise price of One
Dollar and Fifty Cents ($1.50) per share (the “Options”). The shares of Stock purchasable upon
exercise of the Options are hereinafter sometimes collectively referred to as the “Option Shares.”
The Options are not intended to be, and shall not be treated as, incentive stock options (as such
term is defined under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”)).
Optionee understands and acknowledges that the Company is granting the Options hereunder outside
of, and not as a part of, the K12 Inc. Amended and Restated Stock Option Plan. The Company shall
reserve sufficient shares of Stock from its authorized but unissued and not outstanding shares of
Stock as set forth in its Certificate of Incorporation, for purposes of issuing Option Shares to
the Optionee upon the exercise of the Options in accordance with the terms set forth herein.

     2. Vesting Schedule. Subject to the provisions of Section 3 below, the Options shall vest and
become exercisable in four (4) annual installments. The Optionee shall have the right hereunder to
purchase from the Company the following number of Option Shares upon exercise of the Options, on
and after the following dates, in cumulative fashion:

	 	(a)	 	on and after June 1, 2007, One Hundred Thousand (100,000) Option Shares;
	 
	 	(b)	 	on and after June 1, 2008, One Hundred Thousand (100,000) Option Shares;
	 
	 	(c)	 	on and after June 1, 2009, One Hundred Thousand (100,000) Option Shares; and
	 
	 	(d)	 	on and after June 1, 2010, One Hundred Thousand (100,000) Option Shares.

 

 

     Notwithstanding the foregoing, if a Vesting Acceleration Event occurs prior to the date that
all Options have vested pursuant to the above vesting schedule, fifty percent (50%) of the Options
that have not yet vested as of the date of the Vesting Acceleration Event shall automatically
accelerate and become immediately vested and exercisable as of the date of the Vesting Acceleration
Event.

     As used herein, a “Vesting Acceleration Event” means the occurrence of any of the following
events while Optionee is employed with the Company: (i) a sale of all or substantially all of the
assets of the Company, or (ii) a merger or consolidation of the Company into or with another entity
that results in the Company’s stockholders immediately prior to such transaction owning less than
fifty percent (50%) of the voting power of the surviving entity (or its parent) immediately after
such transaction, or (iii) a sale of outstanding securities of the Company by stockholders of the
Company (excluding any sale in connection with any public offering) that results in the Company’s
stockholders immediately prior to such transaction owning less than fifty percent (50%) of the
Company’s voting power immediately after such transaction.

3. Termination of Options.

     (a) Subject to earlier termination as provided in the other provisions of this Agreement, the
Options and all rights hereunder with respect thereto, to the extent such rights shall not have
been exercised, shall terminate and become null and void on December 31, 2013 (the “Option Term”).

     (b) Upon termination of Optionee’s employment or engagement with the Company by reason of
Optionee’s death, the Options held by Optionee to the extent not exercisable on the date of
Optionee’s death shall terminate on the date of Optionee’s death. The Options, to the extent
exercisable on the date of Optionee’s death, maybe exercised by Optionee’s estate or beneficiaries,
personal representative or heirs, provided that such exercise occurs prior to the earlier of: (i)
one hundred eighty (180) days after the date of Optionee’s death, or (ii) the expiration of the
Option Term. The Options held by Optionee to the extent exercisable on the date of Optionee’s death
shall terminate at the end of the earliest of the periods specified in clauses (i) and (ii) of the
immediately preceding sentence.

     (c) Upon termination of Optionee’s employment or engagement with the Company by reason of
“permanent disability” (as determined by the Company’s Compensation Committee, or if Optionee has
an employment or engagement agreement with the Company, then as determined pursuant to the
applicable provisions of said agreement, if any), the Options held by Optionee to the extent not
exercisable on the date of Optionee’s termination shall terminate on the date of Optionee’s
termination. The Options, to the extent exercisable on the date of Optionee’s termination, may be
exercised by Optionee or personal representatives, provided that such exercise occurs prior to the
earlier of: (i) one hundred eighty (180) days after the date of Optionee’s termination, or (ii) the
expiration of the Option Term. The Options held by Optionee to the extent exercisable on the date
of Optionee’s termination shall terminate at the

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end of the earliest of the periods specified in clauses (i) and (ii) of the immediately preceding
sentence.

     (d) Upon Optionee’s termination of employment or engagement with the Company either by resignation
or upon termination of Optionee’s employment or engagement with the Company for “cause” (as
determined by the Company’s Compensation Committee, or if Optionee has an employment or engagement
agreement with the Company, then as determined pursuant to the applicable provisions of said
agreement, if any), all the Options held by Optionee to the extent not exercisable on the date of
Optionee’s termination shall terminate on such date, and all Options held by Optionee to the extent
exercisable on such date shall terminate on the date of Optionee’s termination.

     (e) If Optionee’s employment or engagement with the Company terminates for any reason other than as
described in paragraphs (b), (c) or (d) of this Section 3, then the Options held by Optionee to the
extent not exercisable on the date of Optionee’s termination shall terminate on the date of
Optionee’s termination. The Options, to the extent exercisable on the date of Optionee’s
termination, may be exercised by Optionee, provided that such
exercise occurs prior to the earlier of: (i) ninety (90) days
after the date of Optionee’s termination, or (ii) the expiration
of the Option Term. The Options held by Optionee to the extent
exercisable on the date of Optionee’s termination shall terminate at
the end of the earliest of the periods specified in clauses (i) and
(ii) of the immediately preceding sentence.

4. Exercise of Options.

     (a) The Optionee may exercise the Options with respect to all or any part of the number of
Option Shares then exercisable hereunder from time to time by giving the Chief Financial Officer
of the Company written notice of exercise. Each such notice of exercise shall specify the number
of Option Shares as to which the Options are to be exercised and the date of exercise thereof,
which date shall be at least five days (but not more than fifteen days) after the giving of such
notice unless an earlier time shall have been mutually agreed upon by Optionee and the Company.

     (b) Full payment of the option price for the Option Shares being purchased by the Optionee
shall be made by the Optionee in cash (in U.S. dollars) on or prior to the date of exercise
specified in the notice of exercise.

     (c) The Company shall cause to be delivered to the Optionee a certificate or certificates
for the Option Shares then being purchased (out of theretofore unissued Stock or reacquired
Stock, as the Company may elect) as soon as is reasonably practicable after the full payment for
such Option Shares and satisfaction of all other conditions to exercise set forth in this
Agreement.

     (d) If the Optionee fails to pay for any of the Option Shares specified in a notice of
exercise or fails to accept delivery thereof, the Optionee’s right to purchase such Option
Shares shall terminate.

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     (e) Notwithstanding any other provision of this Agreement, the Optionee’s right to exercise
Options and be issued Option Shares is subject to the conditions set forth in this Section 4(e)
in addition to any other conditions set forth elsewhere in this Agreement. The Optionee may not
exercise any Options in whole or in part or be issued any Option Shares unless (i) the transaction is in compliance with all applicable state and Federal securities laws, (ii)
the transaction is exempt from the qualification and registration requirements of applicable
state and Federal securities laws, and (iii) the Company and the Optionee comply with any
requirements applicable to the transaction, if any, that are contained in any credit or loan
agreement to which the Company is a party. In addition, the obligation of the
Company to deliver Stock shall be subject to the condition that if at any time the Company shall
determine that the listing, registration, or qualification of the Options or the Option Shares
upon any securities exchange or under any state or Federal law, or the consent or approval of
any governmental regulatory body, is necessary as a condition of, or in connection with, the
Options or the issuance or purchase of Stock thereunder, the Options may not be exercised in
whole or in part unless such listing, registration, qualification, consent, or approval shall
have been effected or obtained free of any conditions not acceptable to the Board of Directors
of the Company.

     5. Adjustment of and Changes in Stock of the Company. In the event of any change in the
outstanding shares of Stock by reason of a stock dividend, recapitalization, merger, consolidation,
split-up, combination, exchange of shares, or the like, the Company’s Compensation Committee shall
appropriately adjust the number and kind of shares subject to the Options and the option price.

     6. No Rights of Stockholders. Neither the Optionee nor any personal representative shall be, or
shall have any of the rights and privileges of, a stockholder of the Company with respect to any
shares of Stock purchasable or issuable upon the exercise of the Options, in whole or in part,
prior to the date certificates for shares of Stock are issued to the Optionee.

     7. Non-Transferability of Options. During the Optionee’s lifetime, the Options hereunder shall be
exercisable only by the Optionee or any guardian or legal representative of the Optionee, and the
Options shall not be transferable except, in case of the death of the Optionee, by will or the laws
of descent and distribution, nor shall the Options be subject to attachment, execution, or other
similar process. In the event of (a) any attempt by the Optionee to alienate, assign,
pledge, hypothecate, or otherwise dispose of the Options, except as provided for herein, or (b) the
levy of any attachment, execution, or similar process upon the rights or interest hereby conferred,
the Company may terminate the Options by notice to the Optionee and they shall thereupon become
null and void.

     8. Employment/Engagement Not Affected. Neither the granting of the Options nor exercise thereof
shall be construed as granting to the Optionee any right with respect to continuance of employment
or engagement with the Company or affect any right which the Company may have to terminate the
employment or engagement of Optionee.

     9. Amendment of Options. The Options may be amended by the Company’s Compensation Committee at any
time (i) if the Company’s Compensation Committee

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determines, in its reasonable discretion, that amendment is necessary or advisable in the
light of any addition to or change in the Internal Revenue Code of 1986, as amended, or in the
regulations issued thereunder, or any federal or state securities law or other law or regulation,
which change occurs after the date of grant of an Option and by its terms applies to the Option; or
(ii) other than in the circumstances described in clause (i), with the consent of the Optionee.

     10. Sale, Merger, Consolidation and Liquidation of the Company. In the event of a sale of the Company (whether by merger, consolidation, sale of assets, sale of stock or
otherwise), if the surviving or acquiring entity or purchaser does not expressly agree to assume
the Options issued hereunder, all Options issued hereunder which are unvested shall terminate and
all Options issued hereunder which are vested (including all Options that become vested as a result
of a Vesting Acceleration Event) but not exercised prior to or as of the closing of such event
shall terminate. In the event of a dissolution or liquidation of the Company, all Options issued
hereunder which are unvested shall terminate and all Options issued hereunder which are vested but
not exercised prior to such dissolution or liquidation shall terminate.

     11. Restrictions on Transfer of Option Shares and Related Provisions.

     (a) Except as otherwise expressly set forth in this Section 11, Optionee shall not,
voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise, sell,
transfer, assign, hypothecate, pledge or in any way alienate any Option Shares now or hereafter
owned by the Optionee or any right or interest therein (hereinafter, a “Transfer”) without the
prior written consent of the Company’s Compensation Committee, which the Compensation Committee may
withhold in its sole discretion. Any attempt to consummate a Transfer in violation of this
Agreement shall be null and void.

     (b) Notwithstanding the restrictions contained in Section 11(a) above, (i) Optionee may Transfer
Optionee’s Option Shares to the Company or a designee of the Company, or (ii) Optionee may
contribute Optionee’s Option Shares to a trust formed solely for the benefit of Optionee and/or
Optionee’s immediate family, or (iii) upon the death of Optionee, Optionee’s Option Shares may be
transferred to Optionee’s estate, personal representative or heirs by will or the laws of descent
and distribution; provided, however, that as a condition to any transfer under clause (i), (ii) or
(iii) above, the transferee shall hold the Option Shares subject to the terms and conditions of
this Agreement and the transferee shall execute and deliver to the Company an agreement in form and
substance satisfactory to the Company agreeing to be bound by the terms and conditions of this
Agreement.

     (c) The Company shall have the option (the “Repurchase Option”) exercisable at any time after six
(6) months and one (1) day after the date of termination of Optionee’s employment or engagement
with the Company for any reason, including, but not limited to, termination with or without cause,
death, permanent disability or voluntary termination, to repurchase all or any portion of the
Option Shares held by Optionee (or by a permitted transferee or Optionee’s estate or legal
representative, if applicable). If the Company elects to exercise the Repurchase Option in whole or
in part, it shall give written notice of such election (the “Repurchase Notice”) to Optionee (or
permitted transferee or Optionee’s estate or legal representative, if applicable). The Company
shall pay to Optionee (or permitted transferee or

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Optionee’s estate or legal representative, if applicable) in cash the “fair market value” of
the Option Shares being purchased (determined as provided below) within thirty (30) days after the
later of: (i) the date of the Repurchase Notice, or (ii) the final determination of fair market
value. Optionee agrees to execute (and directs Optionee’s permitted transferee or estate or legal
representative to execute, if applicable) such documents and instruments as are reasonably
necessary to effectuate such purchase. The Company may exercise the Repurchase Option as many times
as the Company may decide. For purposes hereof, “fair market value” of the Option Shares shall be
determined as of the last day of the Company’s fiscal quarter ended immediately preceding the date
of the Repurchase Notice and means (i) the average closing price of a share of Common Stock of the
Company on the principal exchange on which such shares are then trading, if any (or as reported on
any composite index which includes such principal exchange), on the ten most recent trading days
immediately prior to such date, or (ii) if such shares are not traded on an exchange but are quoted
on NASDAQ or a successor quotation system, the average mean between the closing representative bid
and asked prices for such shares on the ten most recent trading days immediately prior to such date
as reported by NASDAQ or such successor quotation system; or (iii) in the event that clauses (i)
and (ii) above are inapplicable, the “fair market value” shall be determined in good faith by the
Board of Directors of the Company.

     (d) Anything contained in this Agreement to the contrary notwithstanding, the Option Shares with
respect to which the Company’s Repurchase Option has been exercised shall be deemed to have been
repurchased by the Company effective as of the date of exercise of such option and such Option
Shares shall be deemed to be canceled, retired and no longer issued or outstanding effective as of
such date without further act of the parties.

     (e) All Option Shares now or hereafter owned by Optionee shall be subject to all of the terms and
conditions of this Agreement. All certificates representing such Option Shares shall contain
legends to the following effect:

	 	 	 	ANY SALE, TRANSFER, PLEDGE, ASSIGNMENT OR ENCUMBRANCE OF THIS SECURITY IS SUBJECT TO THE PROVISIONS
OF A STOCK OPTION AGREEMENT BETWEEN THE CORPORATION AND THE STOCKHOLDER, DATED AS OF JUNE 1, 2006,
A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE CORPORATION.
	 
	 	 	 	THE OFFER AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN QUALIFIED OR
REGISTERED UNDER ANY STATE OR FEDERAL SECURITIES LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF EITHER QUALIFICATION AND REGISTRATION UNDER STATE AND FEDERAL
SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH QUALIFICATION AND
REGISTRATION IS NOT REQUIRED.

     (f) The provisions of Sections 11(a)through 11(d) shall terminate effective upon the consummation
an underwritten public offering of shares of Stock by the Company that

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results in such shares being listed for trading on a national securities exchange or being
authorized for trading on the NASDAQ National Market System.

     12. Representations.

     (a) By executing this Stock Option Agreement, Optionee represents and warrants to the Company that
Optionee is acquiring the Options for Optionee’s own account, for investment purposes only and not
with the intent of distributing, transferring or selling all or any part of the Options.

     (b) In connection with the exercise of any portion of the Options, Optionee represents
and warrants to the Company as of the date of such exercise as follows:

          (i) Optionee is acquiring the Stock for Optionee’s own account, for investment purposes only and
not with the intent of distributing, transferring or selling all or any part thereof in violation
of applicable securities laws.

          (ii) Optionee acknowledges that the Stock has not been registered under any Federal or state
securities laws and is being issued pursuant to one or more exemptions from the registration and
qualification requirements of such securities laws.

          (iii) Optionee acknowledges that the Company is under no obligation to register or qualify the
Stock and that the Stock may not be sold unless it is so registered and qualified or an exemption
from registration and qualification is available.

     13. Lock Up In Connection with Public Offering.

     (a) In order to induce the underwriters that may participate in a public offering
of the Company’s equity securities to continue their efforts in connection with such a public
offering, the Optionee, during the period commencing 30 days prior to and ending 180 days after the
effective date of any underwritten public offering of the Company’s equity securities (except as
part of such underwritten registration):

          (i) agrees not to (x) offer, pledge, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase,
or otherwise transfer or dispose of, directly or indirectly, any Stock or any securities
convertible into or exercisable or exchangeable for Stock (including, without limitation, Stock or
securities convertible into or exercisable or exchangeable for Stock which may be deemed to be
beneficially owned by the undersigned in accordance with the rules and regulations of the
Securities and Exchange Commission) or (y) enter into any swap or other arrangement that transfers
all or a portion of the economic consequences associated with the ownership of any Stock
(regardless of whether any of the transactions described in clause (x) or (y) is to be settled by
the delivery of Stock, or such other securities, in cash or otherwise), without prior written
consent of the lead managing underwriter of such public offering;

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          (ii) agrees not to make any demand for, or exercise any right with respect to, the
registration of any Stock or any securities convertible into or exercisable or exchangeable for
Stock, without the prior written consent of the lead underwriter; and

          (iii) authorizes the Company to cause the transfer agent to decline to transfer and/or to note
stop transfer restrictions on the transfer books and records of the Company with respect to any
Stock and any securities convertible into or exercisable or exchangeable for Stock for which the
Optionee is the record holder and, in the case of any such shares or securities for which the
Optionee is the beneficial but not the record holder, agrees to cause the record holder to cause
the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books
and records with respect to such shares or securities.

     Upon the Company’s request, the Optionee agrees to execute any additional documents necessary or
desirable to confirm Optionee’s obligations set forth above and/or in connection with the
enforcement of the foregoing provisions. The foregoing provisions shall survive the death or
incapacity of the Option and any obligations of the Optionee set forth above shall be binding upon
the heirs, personal representatives, successors and assigns of the Optionee.

     14. Notice. Any notice to the Company provided for in this instrument shall be addressed as
follows:

K12 Inc.

2300 Corporate Park Drive, Suite 200

Herndon, Virginia 20171

Attention: Compensation Committee

With a copy to:

K12 Inc.

2300 Corporate Park Drive, Suite 200

Herndon, Virginia 20171

Attention: Office of the General Counsel

     And any notice to the Optionee shall be addressed to the Optionee at the current address shown on
the records of the Company.

     Any notice shall be deemed to be duly given if and when properly addressed and posted by registered
or certified mail, postage prepaid.

     15. Income Tax Consequences. Optionee acknowledges, represents, and warrants that the Company has
made no representations whatsoever to Optionee concerning the specific Federal and/or state income
tax and alternative minimum tax consequences to Optionee of the Options granted hereunder or the
exercise thereof, and Optionee shall be responsible for consulting with Optionee’s personal tax
advisor regarding such matters. Without limiting the generality of the foregoing, Optionee
acknowledges that pursuant to Code Section 409A, an option that is granted with a per share
exercise price that is determined by the Internal Revenue

8

 

Service (the “IRS”) to be less than the fair market value of a share of Stock on the date of grant
(a “discount option”) may be considered “deferred compensation.” An option that is a “discount
option” may result in (i) income recognition by the Optionee prior to the exercise of the option,
(ii) an additional twenty percent (20%) tax payable by Optionee, and (iii) potential penalty
and interest charges payable by Optionee. Optionee acknowledges that the Company cannot and has not
guaranteed that in the event of an examination the IRS will agree that the per share exercise price
of the Stock that is subject to this Option equals or exceeds the fair market value of a share of
Stock on the date of grant. Optionee agrees that if the IRS determines that the Option was granted
with a per share exercise price that was less than the fair market value of a share of Stock on the
date of grant, Optionee will be solely responsible for all consequences to Optionee related to such
a determination.

     16. Withholding Taxes. Whenever the Company issues or transfers shares of Stock
hereunder, the Company shall have the right to require the Optionee to remit to the Company an
amount sufficient to satisfy any Federal, state, and/or local withholding tax requirements prior to
the delivery of any certificate or certificates for such shares. Alternatively, the Company may
(but shall not be obligated to) issue or transfer such shares of Stock net of the number of shares
sufficient to satisfy the withholding tax requirements. For withholding tax purposes, the shares of
Stock shall be valued on the date the withholding obligation is incurred.

     17. Governing Law. The validity, construction, interpretation, and effect of this
Agreement shall exclusively be governed by and determined in accordance with the laws of the State
of Delaware (without regard to conflicts of law principles), except to the extent preempted by
Federal law, which shall to such extent govern.

     IN WITNESS WHEREOF, the Company and Optionee have executed this Agreement effective as of the
date first set forth above.

	 	 	 	 	 
	 	“Company”
 

K12 INC. 

a Delaware corporation 

 	 
	 	By:  	/s/ Andrew Tisch
 	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	“Optionee” 

 	 
	 	/s/
John Baule 	 
	 	John Baule	 
	 	 	 	 
	 

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