Document:

Option Agreement for David Montgomery, dated September 30, 2003

 Exhibit 10.37 
  
 STOCK OPTION AGREEMENT 
 (David Montgomery) 
  
 This STOCK OPTION AGREEMENT dated as of September 30, 2003 is between TWI HOLDINGS, INC., a Delaware corporation (the “Company”), and DAVID MONTGOMERY (the
“Optionee”). 
  
 WHEREAS, the Optionee has
been retained as an employee of the Company or one of its Subsidiaries; and 
  
 WHEREAS, the Company desires to create an incentive for the Optionee by granting him an option to purchase shares of the Company’s Class B-1 Common Stock (as defined below) upon certain terms and
conditions; 
  
 NOW THEREFORE, the Optionee and the Company
agree as follows: 
  
 1. Definitions. As used
herein, the following terms have the meanings set forth below: 
  
 “Act” means the Securities Act of 1933, as amended. 
  
 “Board” means the Board of Directors of the Company. 
  
 “By-Laws” means the Company’s By-Laws and all amendments thereto. 
  
 “Cause” means the determination by the Board that any one or more of the following has occurred:

  
 (i) the Optionee shall have committed an act
of fraud, embezzlement, misappropriation or breach of fiduciary duty against the Company or any Subsidiary, including, but not limited to, the offer, payment, solicitation or acceptance of any unlawful bribe or kickback with respect to the business
of the Company or any Subsidiary; or 
  
 (ii) the
Optionee shall have been convicted by a court of competent jurisdiction of, or pleaded guilty or nolo contendere to, any felony or any crime involving moral turpitude; or 
  
 (iii) the Optionee shall have been chronically absent from work (excluding vacations, illnesses, Disability
or leaves of absence approved by the Company or any Subsidiary); or 
  
 (iv) the Optionee shall have materially breached any one or more of the provisions of this Agreement or the Stockholder Agreement, and, in any such case, such breach shall have continued for a period of fifteen (15)
days after written notice to the Optionee specifying such breach in reasonable detail; or 

 (v) the Optionee shall have refused, after explicit written notice, to obey any lawful
resolution of or direction by the Board or the board of directors of any Subsidiary employing the Optionee which is consistent with his duties as an employee; or 
  
 (vi) the Optionee shall have engaged in the unlawful use (including being under the influence) or possession
of illegal drugs on the premises of the Company or any Subsidiary; 
  
 provided, that if at any time the Optionee is party to a written employment agreement with the Company or any Subsidiary, then “Cause” shall mean anything constituting “Cause” for termination under such
employment agreement. 
  
 “Charter” means the
Company’s Certificate of Incorporation and all amendments thereto. 
  
 “Class B Common Stock” means, collectively, the Company’s Class B-1 Common Stock and the Company’s Class B-2 Common Stock. 
  
 “Class B-1 Common Stock” means the Company’s Class B-1 Voting Common Stock, $0.01
par value per share. 
  
 “Class B-2
Common Stock” means the Company’s Class B-2 Non-Voting Common Stock, $0.01 par value per share. 
  
 “Disability” means the certification by an independent medical doctor (selected by the Company’s health or disability insurer) that
the Optionee has been disabled in a manner which renders such Optionee unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has
lasted or can be expected to last for a continuous period of not less than twelve (12) months. Any refusal by the Optionee to submit to a medical examination requested by the Company for the purpose of certifying Disability hereunder shall be deemed
to constitute conclusive evidence of the Optionee’s Disability. 
  
 “Disposition Event” has the meaning specified in the Charter. 
  
 “Good Reason” means the occurrence of any of the events or conditions described in clauses (a) or (b) below which is not corrected by the Company or any Subsidiary employing the Optionee within
thirty (30) days after receiving written notice from the Optionee (provided that such notice is given within ninety (90) days of the first occurrence of the event described in such notice): 
  

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 (a) relocation of the Optionee’s principal workplace over 60 miles from the
Company’s existing workplaces without the consent of the Optionee (which consent shall not be unreasonably withheld, delayed or conditioned); or 
  
 (b) a material breach by the Company or any Subsidiary employing the Optionee of any written employment agreement with the Optionee which
is not cured within 30 days after receipt by the Company or such Subsidiary of written notice of such breach. 
  
 provided, that if at any time the Optionee is party to a written employment agreement with the Company or any Subsidiary which includes a definition of “Good Reason”, then “Good
Reason” shall mean anything constituting “Good Reason” for resignation under such employment agreement. 
  
 “Option” has the meaning specified in Section 2 hereof. 
  
 “Option Price” has the meaning specified in Section 3 hereof. 
  
 “Optioned Shares” has the meaning specified in
Section 2 hereof. 
  
 “Plan” means the
Company’s 2002 Stock Option Plan attached hereto as Exhibit A. 
  
 “Qualified Public Offering” means the Company’s underwritten public offering pursuant to an effective registration statement under the Act, covering the offer and sale of shares of
Class B Common Stock in which not less than $25,000,000 of gross proceeds from such public offering are received by the Company for the account of the Company. 
  

“Quarterly Termination Percentage” means, with respect to any Termination of Employment after August 13, 2004 but prior
to August 13, 2007 (other than for Cause or by resignation without Good Reason), a fraction, the numerator of which is the number of days (not to exceed 89) between the most recent Quarterly Vesting Date prior to the date of such Termination of
Employment and the denominator of which is 90; provided that if such Termination of Employment takes place on a Quarterly Vesting Date, the Quarterly Termination Percentage shall be zero (0). 
  
 “Quarterly Vesting Date” means November
13th, February 13th, May 13th and August 13th of each year beginning with November 13, 2004 and ending with August 13, 2007. 
  

 -3- 

 “Registration Rights Agreement” means the Registration Rights Agreement,
dated as of November 1, 2002, among the Company and its stockholders, as amended and in effect from time to time. 
  
 “Repurchase Agreement” means the Stock Repurchase Agreement to be executed between the Optionee and the Company, substantially in
the form attached hereto as Exhibit B. 
  
 “Stockholder Agreement” means the Stockholder Agreement, dated as of November 1, 2002, among the Company and its stockholders, as amended and in effect from time to time. 
  
 “Subsidiary” means, with respect to the Company, any
corporation, a majority (by number of votes) of the outstanding shares of any class or classes of which shall at the time be owned by the Company or by a Subsidiary of the Company, if the holders of the shares of such class or classes (a) are
ordinarily, in the absence of contingencies, entitled to vote for the election of a majority of the directors (or persons performing similar functions) of the issuer thereof, even though the right so to vote has been suspended by the happening of
such a contingency, or (b) are at the time entitled, as such holders, to vote for the election of a majority of the directors (or persons performing similar functions) of the issuer thereof, whether or not the right so to vote exists by reason of
the happening of a contingency. 
  
 “Termination
Date” means the date of any Termination of Employment. 
  
 “Termination of Employment” means the termination of the Optionee’s employment with the Company or its Subsidiaries for any reason, including without limitation, for resignation, death or Disability and
whether or not for Cause. 
  
 “Unvested
Optioned Shares” has the meaning specified in Section 5(a) hereof. 
  
 “Vested Optioned Shares” has the meaning specified in Section 5(a) hereof. 
  
 2. Optioned Shares. Subject to the terms and conditions set forth herein and pursuant to the Plan, the Company grants to the Optionee
an option (the “Option”) to purchase from the Company all or any part of a total of 121.38 shares of Class B-1 Common Stock (the “Optioned Shares”). This Option is to be treated as an “incentive stock
option” within the meaning of Section 422 of the Internal Revenue Code, as amended. 
  
 3. Price. The price to be paid for the Optioned Shares shall be $1,500.00 per Optioned Share (the “Option Price”). 
  

 -4- 

 4. Duration of Option. 
  
 (a) Subject to paragraph (b) hereof, the Option shall terminate on the
earliest to occur of: 
  
 (i) August 13, 2013,

  
 (ii) if the Optionee’s employment with
the Company or any Subsidiary is terminated by the Company or such Subsidiary for Cause at any time, the date on which such termination occurs, 
  
 (iii) if the Optionee’s employment with the Company or any Subsidiary is terminated by reason of the death or Disability of the
Optionee, the first anniversary of the date on which such termination occurs, 
  
 (iv) if the Optionee’s employment with the Company or any Subsidiary is terminated by reason of the Optionee’s resignation (whether with or without Good Reason) or by the Company or such Subsidiary without
Cause, the 90th day following the date on which such termination occurs, and 
  
 (v) the day after the completion of the first Disposition
Event (other than a Qualified Public Offering) to occur after the date hereof. 
  
 (b) If this Option has not earlier terminated pursuant to paragraph (a) above, in the event that the Optionee’s employment with the Company or any Subsidiary is terminated for any reason (other than for Cause),
(i) the Option, with respect to any Unvested Optioned Shares as of the Termination Date, shall irrevocably expire and the Optionee shall not have any right to purchase such Unvested Optioned Shares and (ii) the Optionee shall have the right to
exercise the Option, with respect to any Vested Optioned Shares as of the Termination Date, at any time prior to the termination thereof pursuant to paragraph (a) above. 
  
 5. Exercise of Option. 
  
 (a) Optioned Shares. The Optionee shall have the right to exercise this Option for all or a portion of
the Optioned Shares which have become Vested Optioned Shares as of the date of exercise in accordance with this paragraph (a). Initially, none of the Optioned Shares shall be considered “Vested Optioned Shares” and all
of the Optioned Shares shall be considered “Unvested Optioned Shares”. On August 13, 2004, if a Termination of Employment does not occur prior to such date, 25% of the Optioned Shares shall become “Vested
Optioned Shares”, and on each Quarterly Vesting Date thereafter prior to a Termination of Employment, 6.25% of the Optioned Shares shall become “Vested Optioned Shares”, such that all of the

  

 -5- 

 Optioned Shares shall be Vested Optioned Shares as of and after August 13, 2007 if a Termination of Employment does not
occur prior to such date. Upon the occurrence of a Disposition Event (other than a Qualified Public Offering) prior to a Termination of Employment, 50% of the then Unvested Optioned Shares shall become Vested Optioned Shares. No Optioned Shares
which have not already become Vested Optioned Shares shall become Vested Optioned Shares upon or after the Termination of Employment for any reason; provided, that in the event of a Termination of Employment after August 13, 2004 and prior to
August 13, 2007 (other than for Cause or by reason of the Optionee’s resignation without Good Reason), then the number of Optioned Shares equal to (x) the Quarterly Termination Percentage multiplied by (y) 6.25% of the Optioned
Shares shall become Vested Optioned Shares as of the Termination Date. 
  
 (b) Manner of Exercise. Exercise of the Option may be effected in the manner specified in Section 11 of the Plan. 
  
 (c) Payment of Withholding Taxes. Whenever any Optioned Shares are to be issued upon exercise of the Option, the
Company shall have the right to require the Optionee to remit to the Company an amount sufficient to satisfy federal, state, local or other withholding tax requirements if and to the extent required by law (whether so required to secure for the
Company an otherwise available tax deduction or otherwise) prior to the delivery of any certificate or certificates for such Optioned Shares. 
  
 (d) Notice of Disposition Event. The Company agrees to give the Optionee ten (10) day’s prior notice (to the
extent the Company has knowledge of such Disposition Event) of the first Disposition Event to occur after the date hereof. 
  
 6. Restriction Against Transfer of Option. During the Optionee’s lifetime, the Option may be exercised only
by the Optionee. Except for a transfer of the Option to the Optionee’s spouse, children or grandchildren by will or operation of law after the Optionee’s death, the Option and all rights granted hereunder may not be transferred, assigned,
pledged, or hypothecated (whether by operation of law or otherwise) and shall not be subject to execution, attachment, or similar process. Any transfer of the Option in violation of this Section 6 shall be void and will result in the immediate
termination of the Option. 
  
 7. Incorporation
of Plan Terms. This Option is granted subject to all of the applicable terms and provisions of the Plan, including but not limited to the limitations on the Company’s obligation to deliver Optioned Shares upon exercise
set forth in Section 12 (Restrictions on Issue of Shares), Section 13 (Purchase for Investment; Subsequent Registration) and Section 14 (Withholding; Notice
of Disposition of Stock Prior to Expiration of Specified Holding Period). 
  

 -6- 

 8. Limitation of Rights in Optioned Shares. The Optionee
shall not be deemed for any purpose to be a stockholder of the Company with respect to any of the Optioned Shares except to the extent that the Option shall have been exercised with respect thereto and, in addition, a stock certificate shall have
been issued therefor and delivered to the Optionee. All Class B-1 Common Stock issued pursuant to the Option shall be subject to all restrictions upon the transfer thereof which may be now or hereafter imposed by the Charter or the By-Laws of the
Company and (to the extent applicable) the restrictions on transfer and other terms of the Stockholder Agreement. In the event that the Optionee is required to execute and deliver the Repurchase Agreement as set forth below, all Class B-1 Common
Stock issued pursuant to the Option shall be deemed to be, and the Optionee hereby agrees that all such shares of Class B-1 Common Stock are and shall be, Shares under and as defined in the Repurchase Agreement and subject to all of the repurchase
provisions and other restrictions imposed by the Repurchase Agreement. In connection with the exercise of the Option, the Optionee agrees that he will execute and deliver to the Company as a condition to the exercise of the Option (i) if a Qualified
Public Offering has not occurred, an Instrument of Accession making the Optionee a party to the Stockholder Agreement (to the extent that the Optionee is not already a party thereto), (ii) if a Qualified Public Offering has not occurred and the
Termination of Employment has not occurred, a copy of the Repurchase Agreement and (iii) an Instrument of Accession making the Optionee a party to the Registration Rights Agreement (to the extent that the Optionee is not already a party thereto).

  
 9. Tax Consequences to
Optionee. The Optionee hereby acknowledges and agrees that (a) the Company makes no representation or warranty to the Optionee as to the national, federal, state or local tax consequences to the Optionee of the receipt or exercise of this
Option or the sale or other disposition of any shares of Class B-1 Common Stock issued pursuant to this Option, (b) the Optionee is relying on his or her own tax advisor for any such advice and (c) the Optionee is aware that in any event this Option
may not be treated as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code, as amended, in the event that the fair market value per share of Class B-1 Common Stock as the date of the grant of this
Option is in excess of the Option Price. 
  
 10.
Governing Law. This Agreement is being delivered and is intended to be performed in the State of Delaware and shall be construed and enforced in accordance with the laws of such state. 
  
 11. Successors and Assigns. This Agreement shall
be binding upon any successor or assign of either the Company or the Optionee, and upon any executor, administrator, trustee, guardian, or other legal representative of the Optionee. 
  

 -7- 

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

  

			
	 TWI HOLDINGS, INC.

		
	 By:
	 	 /S/    ROBERT B. TRUSSELL, JR.

	 Title:
	 	CEO
	
	 /S/    DAVID MONTGOMERY

	 David Montgomery

		
	 Address:
	 	     Northgate, Manor Road

	 	 	     Penn, High Wycombe

	 	 	     HP10 8JB

 Exhibit B to 
 Stock Option Agreement 
  
 STOCK REPURCHASE AGREEMENT 
 (Name of Stockholder) 
  
 This STOCK REPURCHASE AGREEMENT (this “Agreement”) is
dated as of                          , 200    , by and between TWI Holdings, Inc., a
Delaware corporation (the “Company”) and                      (the “Stockholder”). 
  
 WHEREAS, the Company and the Stockholder are parties to a Stock Option
Agreement dated as of                          , 200     (as amended and in effect from
time to time, the “Option Agreement”), pursuant to which the Company has granted to the Stockholder an option to purchase from the Company from time to time, on the terms and subject to the conditions contained therein,
shares of the Company’s Class B-1 Common Stock (as defined in Section 1 hereof); and 
  
 WHEREAS, it is a condition precedent to the Stockholder’s purchase of any shares of Class B-1 Common Stock under the Option Agreement that the Stockholder execute and deliver to the Company a Stock
Repurchase Agreement in the form hereof; 
  
 NOW,
THEREFORE, in consideration of the mutual promises and agreements set forth herein, the Company and the Stockholder agree as follows: 
  
 1. DEFINITIONS. As used herein, the following terms shall have the meanings specified below: 
  
 “Act” means the Securities Act of 1933, as amended.

  
 “Board” means the Board of Directors of the
Company. 
  
 “Cause” has the meaning specified in
the Option Agreement. 
  
 “Charter” means the
Company’s Certificate of Incorporation and all amendments thereto. 
  
 “Class B Common Stock” means, collectively, the Company’s Class B-1 Common Stock and the Company’s Class B-2 Common Stock. 
  
 “Class B-1 Common Stock” means the Company’s Class B-1 Voting Common Stock, $0.01
par value per share. 

 “Class B-2 Common Stock” means the Company’s Class B-2
Non-Voting Common Stock, $0.01 par value per share. 
  
 “Company” has the meaning specified in the preamble hereto. 
  
 “Delayed Closing Date” has the meaning specified in Section 5.2 hereof. 
  
 “Disposition Event” has the meaning specified in the Charter. 
  
 “Option Agreement” has the meaning specified in the preamble. 
  
 “Original Price Per Share” means the
“Option Price”, as defined in the Option Agreement. 
  
 “Person” means an individual, partnership, corporation, limited liability company, association, trust, joint venture, unincorporated organization, or any government, governmental department or agency or political
subdivision thereof. 
  
 “Repurchase
Notice” has the meaning specified in Section 2.2 hereof. 
  
 “Shares” means all shares of Class B-1 Common Stock from time to time purchased by the Stockholder pursuant to the Option Agreement, and all other shares of capital stock of the Company issued as a dividend or distribution
with respect thereto from time to time on or after the date hereof. 
  
 “Stockholder” has the meaning specified in the preamble hereto. 
  
 “Stockholder Agreement” means the Stockholder Agreement, dated as of November 1, 2002, among the Company and its stockholders, as amended and in effect from time to time. 
  
 “Subsidiary” means, with respect to the Company, any
corporation a majority (by number of votes) of the outstanding shares of any class or classes of which shall at the time be owned by the Company or by a Subsidiary of the Company, if the holders of the shares of such class or classes (a) are
ordinarily, in the absence of contingencies, entitled to vote for the election of a majority of the directors (or Persons performing similar functions) of the issuer thereof, even though the right so to vote has been suspended by the happening of
such a contingency, or (b) are at the time entitled, as such holders, to vote for the election of a majority of the directors (or Persons performing similar functions) of the issuer thereof, whether or not the right so to vote exists by reason of
the happening of a contingency. 
  

 2 

 “Termination of Employment for Cause” means the termination
of the Stockholder’s employment with the Company or its Subsidiaries for Cause. 
  
 “Transfer” has the meaning specified in Section 3 hereof. 
  
 2. REPURCHASE OF SHARES. 
  
 2.1. Repurchase Rights of the Company. Upon the Termination of Employment for Cause at any time, the Company
shall have the right to repurchase from the Stockholder, and the Stockholder will at the request of the Company sell to the Company all or any portion of the Shares at a purchase price per Share equal to the Original Price Per Share. 
  
 2.2. Repurchase Closing. Except as provided in Section
5.2 hereof, the Company’s repurchase of any Shares under Section 2.1 shall take place within one hundred eighty days (180) days after the Termination of Employment for Cause following notice to the Stockholder (the “Repurchase
Notice”) specifying the number of Shares to be repurchased. The closing of the repurchase of such Shares shall be held not earlier than five (5) days nor later than thirty (30) days after delivery of the Repurchase Notice. The
Company’s repurchase rights under this Section 2.2 shall lapse if not exercised within the time periods specified above in accordance with the provisions hereof, except as otherwise provided in Section 5 hereof. Upon delivery by the Company of
the repurchase price for the Shares being repurchased in accordance with Section 6 hereof, all of such Shares shall no longer be deemed to be outstanding, all of the Stockholder’s rights with respect to such Shares shall terminate with the
exception of the right of the Stockholder to receive the repurchase price in exchange therefor pursuant to this Section 2.2, and the Stockholder hereby appoints the Company as his attorney-in-fact to take all actions necessary and sign all documents
required to cancel such Shares on its books and records. 
  
 3.
RESTRICTIONS ON TRANSFER. Except as otherwise expressly provided in the Stockholder Agreement, the Stockholder may not sell, assign, transfer, pledge or otherwise dispose of (“Transfer”) any of the Shares, either voluntarily
or involuntarily or by operation of law, except to the Company or any of its Subsidiaries. Unless the Stockholder is already a party to the Stockholder Agreement, the Stockholder agrees to execute and deliver the Stockholder Agreement simultaneously
with the issuance and sale of the Shares hereunder. Upon any permitted Transfer of the Shares, the transferee of the Shares shall execute and deliver to the Company an agreement containing repurchase provisions substantially the same as those
contained herein. 
  

 3 

 4. LEGENDS; STOP TRANSFER. 
  
 (a) Each certificate representing the Shares shall bear legends in or substantially in the following form: 
  
 “THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO TRANSFER, SALE OR OTHER DISPOSITION OF THESE SHARES MAY BE MADE UNLESS A REGISTRATION STATEMENT WITH RESPECT TO THESE SHARES HAS BECOME EFFECTIVE UNDER SAID ACT, OR THE COMPANY HAS BEEN FURNISHED WITH
AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 THE SHARES EVIDENCED BY THIS CERTIFICATE ARE ALSO SUBJECT TO CERTAIN REPURCHASE RIGHTS IN FAVOR OF THE COMPANY AND CERTAIN PROVISIONS REGARDING RESTRICTIONS UPON TRANSFER CONTAINED IN A STOCK REPURCHASE AGREEMENT,
DATED AS OF                     , COPIES OF WHICH WILL BE FURNISHED BY THE COMPANY TO THE HOLDER OF THE SHARES EVIDENCED BY THIS CERTIFICATE
UPON WRITTEN REQUEST AND WITHOUT CHARGE.” 
  
 (b) In
addition, the Company shall make a notation regarding the restrictions on transfer of the Shares in the stock books of the Company, and such Shares shall be transferred on the books of the Company only if and when transferred or sold in compliance
with all of the terms and conditions of this Agreement. 
  
 5.
REPURCHASE RESTRICTIONS. 
  
 5.1. Contractual
Restrictions on Repurchase. Notwithstanding any provision to the contrary in Section 2, if the Company is prohibited by the terms of any of the financing agreements of the Company or any of its Subsidiaries with their
lenders from making any payments of any portion of the repurchase price for the Shares in cash (or if any Subsidiary is prohibited by any such financing agreement from distributing cash to the Company to pay any portion of the repurchase price for
the Shares), the Company shall be entitled to complete the repurchase of such Shares by delivering to the Stockholder (or any permitted transferee thereof) (a) a check for that portion of the repurchase price, payment or distribution of which is not
prohibited, and (b) a promissory note for the balance of the repurchase price. Each such promissory note shall (i) bear interest at the rate of six percent (6%) per annum, (ii) provide for the payment of the principal evidenced thereby in such
installments and at such times as are permitted under the terms of the Company’s and its Subsidiaries’ financing agreements with their lenders, (iii) be subordinated to the indebtedness of the Company and its Subsidiaries to their lenders
on terms satisfactory to such lenders and (iv) subject to such payment and subordination provisions, provide for the payment in full of the principal evidenced thereby and the accrued and unpaid interest thereon upon the sale of substantially all of
the assets or stock of the Company. 
  

 4 

 5.2. Impairment of Capital. If, even after giving effect to the provisions of
Section 5.1 hereof, the Company is prohibited by the terms of any of the financing agreements of the Company or any of its Subsidiaries with their lenders from issuing a promissory note for the balance of the repurchase price as contemplated by
Section 5.1 or is prohibited by law from repurchasing all of the Shares which it is obligated to repurchase hereunder due to any existing or prospective impairment of its capital, the closing of such repurchase shall be delayed until the first date
on which the Company is permitted by the terms of any such financing agreements to repurchase such Shares and has sufficient capital to lawfully repurchase such Shares (the “Delayed Closing Date”). In the event of any
such delay, (i) the Company will be obligated to pay, on the Delayed Closing Date, interest on the repurchase price for such Shares, at the rate of six percent (6%) per annum from the date on which the closing of the repurchase of such Shares was
originally scheduled to occur to the Delayed Closing Date, and (ii) the Stockholder shall remain bound by the restrictions on Transfer contained herein during such delay. 
  
 6. PAYMENT FOR SHARES. At any closing held to consummate any repurchase of any Shares hereunder, the Stockholder
shall deliver to the Company the stock certificates representing such Shares, duly endorsed in blank or with duly executed stock powers attached, and the Company shall deliver to the Stockholder a check in the amount of the repurchase price or a
promissory note as provided in Section 5.1. 
  
 7. TERM.
This Agreement and all of the restrictions on Transfer and the repurchase rights and obligations contained herein (including, without limitation, the repurchase rights and obligations of the Company pursuant to Section 2 hereof), shall terminate
immediately after the completion of any Disposition Event. 
  
 8.
ADJUSTMENT OF REPURCHASE PRICE. Upon any stock split, reverse stock split, recombination of shares or other similar reorganization of the capital structure of the Company, the repurchase price otherwise payable to the Stockholder upon the
repurchase of any Shares pursuant to Section 2 hereof shall be proportionally adjusted to reflect such reorganization. 
  
 9. GENERAL. 
  
 9.1. Notices. All notices, demands and other communications hereunder shall be in writing or by written telecommunication, and shall be
deemed to have been duly given if delivered personally or if mailed by certified mail, return receipt requested, postage prepaid, or if sent by overnight courier, or sent by written telecommunication, as follows: 
  

 5 

			
	If to the Company, to:
		
	 	 	Tempur World, Inc.
	 	 	1713 Jaggie Fox Way
	 	 	Lexington, KY 40511
	 	 	Telephone: (859) 259-0754
	 	 	Facsimile: (859) 259-9843
	 	 	Attention: President
	
	With a copy sent contemporaneously to:
		
	 	 	Bingham McCutchen LLP
	 	 	150 Federal Street
	 	 	Boston, Massachusetts 02110
	 	 	Telephone: (617) 951-8000
	 	 	Facsimile: (617) 951-8736
	 	 	Robert M. Wolf, Esq.
	
	If to the Stockholder, to:
		
	 	 	  

	 	 	  

	 	 	  

  
 Any such notice shall
be effective (a) if delivered personally, when received, (b) if sent by overnight courier, when receipted for, (c) if mailed, three (3) days after being mailed as described above, and (d) if sent by written telecommunication, when dispatched.

  
 9.2. Equitable Remedies. Each of the
parties hereto acknowledges and agrees that upon any breach by the Stockholder of his obligations under Sections 2, 3, or 6 hereof, the Company will have no adequate remedy at law, and accordingly will be entitled to specific performance and other
appropriate injunctive and equitable relief. 
  
 9.3.
Severability. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be
affected or impaired. 
  
 9.4. Waivers. No delay or
omission by any party hereto in exercising any right, power or privilege hereunder shall impair such right, power or privilege, nor shall any single or partial exercise of any such right, power or privilege preclude any further exercise thereof or
the exercise of any other right, power or privilege. 
  

 6 

 9.5. Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 9.6. Assigns. This Agreement shall not be assignable or transferable by the Stockholder without the prior written consent of the Company
thereto. 
  
 9.7. Entire Agreement. This
Agreement, together with the Option Agreement and the Stockholder Agreement, contains the entire understanding of the parties, supersedes all prior agreements and understandings relating to the subject matter hereof and shall not be amended except
by a written instrument hereafter signed by each of the parties hereto. Nothing in this Agreement shall be construed as a grant to the Stockholder of any right to continuing employment with the Company or any Subsidiary or to restrict in any way the
right to terminate the Stockholder’s employment at any time. 
  
 9.8. Governing Law. This Agreement and the obligations of the parties hereunder shall be deemed to be a contract under seal and shall for all purposes be governed by and construed in accordance with the internal laws of
the State of Delaware without reference to principles of conflicts of law. 
  

 7 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have caused this
Agreement to be duly executed as of the date and year first above written. 
  

					
	THE COMPANY:	 	TWI HOLDINGS, INC.
			
	 	 	 By:
	 	  

	 	 	 Title:
	 	 
	THE STOCKHOLDER:	 	 
		
	 	 	  

	 	 	 (Name)Employment Agreement btwn Kathryn Olson and Leapfrog

 Exhibit 10.30 
  
 September 17, 2004 
  
 Kathryn Olson 
 [Address omitted] 
  
 Dear Kathryn, 
  
 We are pleased to offer you a full-time exempt position as Chief Marketing Officer for LeapFrog Enterprises Inc., effective on a date to be
mutually agreed upon. You will be based out of our Emeryville office at 6401 Hollis Street, Suite 150. You will report to Jerry Perez, President of LeapFrog. 
  
 LeapFrog offers an exciting challenge for professional and personal growth in a company with a demonstrated commitment to market leadership
and excellence. LeapFrog offers a compensation package to reflect our belief in rewarding performance appropriately. Your pay rate will be $290,000 on an annualized basis, less standard deductions and withholdings. 
  
 In addition, you will become eligible for the following benefits in accordance with Company
policy as in effect from time to time: 
  

	 	•	Signing Bonus: Signing bonus of $150,000, minus applicable taxes, payable through normal payroll process on first paycheck, and to be returned to LeapFrog on a pro-rata basis
in the event you voluntarily resign within the first two years of your employment with the company. 

  

	 	•	Bonus: As per the 2004 Executive Bonus Plan, your annual bonus potential at the target bonus opportunity level is 50% of base pay earnings and at maximum 83.5% of base pay
earnings, based upon the company’s attainment of established financial goals and achievement of individual goals and objectives. 

  

	 	•	Car Allowance: Monthly car allowance of $1,000, minus applicable taxes, paid in semi-monthly installments through normal payroll process. 

  

	 	•	Financial Planning Allowance: Annual reimbursement of up to $15,000, payable through our employee expense reporting process, for expenses paid by you for personal financial
services. This individual benefit will terminate if LeapFrog establishes a similar executive benefit program in which you become eligible to participate. 

  

	 	•	Group Health and 401(k) Benefits: Effective date for medical, dental, life, disability and AD&D insurance, and the 401(k), is the first of the month following 30 days of
service. 

  

	 	•	Vacation Time: Accrual of four weeks of vacation per year. 

  

	 	•	Severance: In the event your employment is terminated by LeapFrog without Cause (as defined below), you will receive a lump-sum payment equal to nine (9) months of your then
current base salary and reimbursement for any COBRA payments for medical and/or dental coverage made by you for a period of nine (9) months following termination of employment (the “Severance Benefit”). As a precondition of giving you the
Severance Benefits, the Company must first receive from you a signed general release of claims in the form required by the Company (the “Release”) and you must allow the Release to become effective. 

  

	 	  	In the event that your employment is terminated by LeapFrog without Cause or you resign for Good Reason (as defined below) within twelve (12) months following a Change in Control,
you will receive the Severance Benefit described above provided that you sign and return to the company the Release described above and the Release becomes effective. 

  

	 	•	For purposes of this Agreement, “Cause” shall mean the occurrence of one or more of the following: (a) your indictment or conviction of any crime involving moral turpitude
or dishonesty; (b) your participation in any fraud against the Company or its successor; (c) breach of your duties to the Company or its successor, including, without limitation, persistent unsatisfactory performance of job duties; (d) intentional
damage to any property of the Company or its successor; (e) willful conduct that is demonstrably injurious to the Company or its successor, monetarily or otherwise; (f) breach of any agreement with the Company or its successor, including (without
limitation) your Proprietary Information and Inventions Agreement or (g) conduct by you that in the good faith and reasonable determination of the Company demonstrates gross unfitness to serve. Physical or mental disability or death shall not
constitute Cause. 

  

	 	•	For purposes of this Agreement, you shall have “Good Reason” for termination of your employment if you resign within sixty (60) days after the occurrence of one of the
following events without your consent: (i) a removal of you from your position as Chief Marketing Officer of the Company unless the removal occurs solely as a result of a merger into a larger entity such that you retain the same authority for your
department’s operations that are substantially identical to the Company’s previous operations as an independent entity; (ii) any material diminution of your role, responsibilities and authority except to the extent that your authority is
reduced solely as a result of a merger into a larger entity such that you retain the same authority for your department’s operations that are substantially identical to the Company’s previous operations as an independent entity; (iii)
reduction of your base salary in an amount greater than ten percent (10%) of your initial base salary, unless the base salary of other senior level executive officers of the Company is accordingly reduced; (iv) any material reduction in the
aggregate level of benefits to which you are entitled under this Agreement or the taking of any action which would adversely affect your accrued benefits under any such employee benefit plans, unless a similar reduction is made for other senior
level executive officers of the Company; or (v) a 

  

	 	  	demand by the Company that you relocate to any place that exceeds a fifty (50) mile radius beyond the primary location of the Company as of the date of this Agreement. In the event
you intend to assert that you have grounds for terminating your employment for Good Reason, you shall give the Company at least thirty (30) days’ notice. The Company shall have the opportunity during the notice period to cure the event which
you assert constitutes Good Reason (provided that this event is not a reoccurrence of the same or substantially similar event that occurred during the prior six (6) months) and, if the Company cures the event, then you shall not be entitled to
terminate your employment for Good Reason. 

  

	 	•	For purposes of this Agreement, “Change in Control” means the occurrence in a single transaction or in a series of related transactions of any one or more of the following
events: 

  

	 	  	(a) any person (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended) becomes the owner, directly or indirectly, of securities of the
Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction; 

  

	 	  	(b) there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger,
consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of
the surviving entity in such merger, consolidation or similar transaction or more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction;

  

	 	  	(c) the stockholders of the Company approve or the Company’s Board of Directors approves a plan of complete dissolution or liquidation of the Company; or

  

	 	  	(d) there is consummated a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries, other than a sale,
lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are owned by
stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale, lease, license or other disposition. 

  

	 	•	Stock Option: I will recommend that the Compensation Committee of the Board of Directors approve the grant of an option to you for the purchase of 75,000 shares of the
company’s Class A Common Stock. All stock options are subject to approval by the Compensation Committee and/or the Board of Directors, the terms of the equity plan and the individual grant. The option shall have an exercise price equal to the
closing fair 

  

 market value of the Common Stock on the date of the grant. The option shall vest over a four year period,
or until your employment ends, as follows: 
  

	 	•	Twenty-five (25%) of the shares subject to the option at twelve (12) months after the hire date, and 

  

	 	•	1/36 of the remaining shares subject to the option each month thereafter, for thirty-six (36) consecutive months 

  

	 	•	Restricted Stock: I will recommend that the Compensation Committee of the Board of Directors approve the grant of 25,000 shares of restricted stock. All stock grants are
subject to approval by the Compensation Committee and/or the Board of Directors, the terms of the equity plan and the individual grant. The restricted stock shall vest over a three year period, or until your employment ends, as follows:

  

	 	•	Forty (40%) percent of the shares at twelve (12) months after the hire date, and 

  

	 	•	Thirty (30%) percent of the shares at twenty-four (24) months after the hire date, and 

  

	 	•	Thirty (30%) percent of the shares at thirty-six (36) months after the hire date. 

  

	 	•	Annual Stock Option Program: Eligible to participate in the annual stock option program beginning April 2005, at the executive officer level. 

  

	 	•	Executive Performance Share Program: Eligible to participate in the annual Executive Performance Share Program starting with the January 2005 – December 2007 plan.

  

	 	•	Relocation: You will also receive a relocation package through our relocation vendor, AmeriCorp, including gross-up of any items taxable to you, including the following:

  

	 	  	Travel: You will be reimbursed for two house hunting trips to the San Francisco/Bay Area. All applicable costs such as hotel, airfare, meals and transportation, within
reason, will be reimbursed. Please keep your receipts, as you will need to submit them with an expense report. 

  

	 	  	Rental Car: You will be reimbursed for use of a rental car until your car is moved to the Bay Area. 

  

	 	  	Shipment of Goods: Your household goods plus up to two cars will be packed, loaded and transported to the SF/Bay Area via our standard carrier, North American Van Lines. You
will also be provided with up to ninety days of storage of the shipped goods, if needed. LeapFrog will be billed directly for these services. 

  

	 	  	Rental Assistance: You will be reimbursed for the cost of registration with one Bay Area apartment locator company. In addition, temporary housing in a furnished corporate
apartment or approved hotel will be provided for up to six months, at a location to be determined by the company. LeapFrog will be billed directly for the temporary housing. 

  

	 	  	Closing Costs: LeapFrog will pay standard closing costs on the sale of your current primary house in Chicago. LeapFrog will also pay the standard closing costs on the
purchase of a home in the San Francisco Bay Area. 

  

	 	  	Mortgage Interest Differential: Upon your purchase of a residence in the Bay Area, LeapFrog shall pay you a monthly reimbursement equal to the Mortgage Interest Payments (as
hereinafter defined) until the Company’s obligation to make such payments terminates as provided below. As used herein, the term “Mortgage Interest Payments” shall mean the lower of: (a) the amount of your monthly interest portion of
the Stipulated Mortgage Amount after offsetting the value of any tax deduction that you would receive for such interest payments, and (b) the amount resulting from the calculation in clause (a) above, assuming that your mortgage is an Approved
Mortgage (as defined below). The Mortgage Interest Payments shall continue until and then terminate on the earliest to occur of (A) the termination of your employment with the Company, or (B) your no longer making payments on a mortgage on your
primary residence in the Bay Area, or (C) the third anniversary of the first day of your employment with the Company. If you refinance and/or sell one California residence and purchase another in California, the amount of the Mortgage Interest
Payments shall not be recalculated, but shall continue unaffected by such transaction. 

  

	 	  	As used herein, the following terms shall have the following meanings: “Stipulated Mortgage Amount” shall mean a mortgage principal amount equal to the difference between
the Purchase Price and the Net Sales Proceeds; “Purchase Price” shall mean the lesser of (a) the purchase price of your Bay Area residence or (b) One Million One Hundred Thousand Dollars ($1,100,000); “Net Sales Proceeds” shall
mean the greater of (a) the net sales proceeds from the sale of your primary residence in Chicago or (b) Nine Hundred Thousand Dollars ($900,000); and “Approved Mortgage” means a mortgage loan in a principal amount not to exceed
$1,100,000, with an interest rate equal to the lowest of (a) the actual interest rate under your mortgage for the Bay Area Residence and (b) 7% per annum. 

  

	 	  	In the event that you choose to voluntarily resign your position prior to your one-year anniversary date, you will be required to reimburse the Company for all moving and relocation
expenses. 

  
 This letter simply outlines our compensation and
benefits programs, which may be modified by the Company from time to time, and acceptance of this offer does not create a contractual obligation to continue your employment in the future. You will be employed “at will” by the Company and
are subject to termination at any time, with or without cause or advance notice. You will also retain the right to terminate your employment at any time for any reason, with or without advance notice. Your employment will be subject to all of the
Company policies as in effect from time to time. The employment at will relationship may not be modified except in writing signed by the President of the Company. The Company may change your position, duties, and work location from time to time as
it deems necessary. 
  

 As a LeapFrog employee, you will be expected to abide by all Company rules and regulations and, as a condition of
employment, will be required to read and sign an Employee Acknowledgement when you begin your employment with the Company. This offer of employment is contingent upon your submission and completion of I-9 documentation and a signed Employee
Proprietary Information and Inventions Agreement along with the successful completion of any background and reference checks. On your first day, please bring with you two forms of I-9 acceptable documentation, and please bring a voided check if you
would like direct deposit for your paycheck. 
  
 This offer is valid through
Tuesday, September 21, 2004, and a signed copy of this offer letter must be returned to my office by such date. The additional copy should be retained for your records. This letter, together with your Employee Proprietary Information and
Inventions Agreement, forms the complete and exclusive statement of your employment agreement with the Company. The employment terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written. Changes in
your employment terms described in this agreement, other than those changes expressly reserved to the Company’s discretion, require a written modification signed by you and the CEO of LeapFrog. If you have any questions regarding our offer,
please contact me directly at 510/596-5435. Confidential Fax: 510/420-5005. 
  
 We
are looking forward to establishing a mutually rewarding relationship with you and welcome your contribution to our company. 
  
 Sincerely, 
  
 /s/ Laura Dillard 
  
 Laura Dillard 
 Vice President, Human Resources 
  
 By signing below, you represent that you have read and agree to the terms of the above offer and agree to start your employment with LeapFrog on at date to be determined in 2004. In addition, you represent that you
are not subject to any agreement, judgment, order, or restriction which would be violated by your being employed with the Company or that in any way restricts your ability to perform services for the Company. 
  

			
	 Signature:
	 	 /s/ Kathryn E. Olson

		
	 Print Name:
	 	 Kathryn E. Olson

		
	 Date:
	 	 9-21-2004

  

 LeapFrog is proud to be an Equal Opportunity Employer.

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