Document:

Exhibit 10.2

 

REVOLVING LINE OF CREDIT NOTE

 

	
  $5,000,000.00

  	
  Los Angeles, California

  
	
   

  	
  August 1, 2005

  

 

FOR VALUE RECEIVED, the undersigned ITERIS,
INC. (“Borrower”) promises to pay to the order of WELLS FARGO BANK, NATIONAL
ASSOCIATION (“Bank”) at its office at 333 South Grand Avenue, 9th Floor, Los
Angeles, California 90071, or at such other place as the holder hereof may
designate, in lawful money of the United States of America and in immediately
available funds, the principal sum of Five Million Dollars ($5,000,000.00), or
so much thereof as may be advanced and be outstanding, with interest thereon,
to be computed on each advance from the date of its disbursement as set forth
herein.

 

INTEREST:

 

(a)                                  Interest.  The outstanding principal balance of this Note
shall bear interest (computed on the basis of a 360-day year, actual days
elapsed) at a rate per annum three percent (3.00%) above the Prime Rate in
effect from time to time.  The “Prime
Rate” is a base rate that Bank from time to time establishes and which serves
as the basis upon which effective rates of interest are calculated for those
loans making reference thereto.  Each
change in the rate of interest hereunder shall become effective on the date
each Prime Rate change is announced within Bank.

 

(b)                                 Payment of Interest.  Interest accrued on this Note shall be
payable on the first day of each month, commencing September 1, 2005.

 

(c)                                  Default Interest.  From and after the maturity date of this
Note, or such earlier date as all principal owing hereunder becomes due and
payable by acceleration or otherwise, the outstanding principal balance of this
Note shall bear interest until paid in full at an increased rate per annum
(computed on the basis of a 360-day year, actual days elapsed) equal to four
percent (4%) above the rate of interest from time to time applicable to this
Note.

 

BORROWING AND REPAYMENT:

 

(a)                                  Borrowing and
Repayment.  Borrower may from time to
time during the term of this Note borrow, partially or wholly repay its
outstanding borrowings, and reborrow, subject to all of the limitations, terms
and conditions of this Note and of any document executed in connection with or
governing this Note; provided however, that the total outstanding borrowings
under this Note shall not at any time exceed the principal amount stated
above.  The unpaid principal balance of
this obligation at any time shall be the total amounts advanced hereunder by
the holder hereof less the amount of principal payments made hereon by or for
any Borrower, which balance may be endorsed hereon from time to time by the
holder.  The outstanding principal
balance of this Note shall be due and payable in full on July 31, 2006.

 

(b)                                 Advances.  Advances hereunder, to the total amount of
the principal sum stated above, may be made by the holder at the oral or
written request of (i) Abbas Mohaddes or James S. Miele, any one acting
alone, who are authorized to request advances and direct the disposition of any
advances until written notice of the revocation of such authority is received
by the holder at the office designated above, or (ii) any person, with
respect to advances deposited to the credit of any deposit account of any
Borrower, which advances, when so deposited, shall

 

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be conclusively presumed to have been made to or for the benefit of
each Borrower regardless of the fact that persons other than those authorized
to request advances may have authority to draw against such account.  The holder shall have no obligation to
determine whether any person requesting an advance is or has been authorized by
any Borrower.

 

(c)                                  Application of
Payments.    Each payment made on
this Note shall be credited first, to any interest then due and second, to the
outstanding principal balance hereof.

 

EVENTS OF DEFAULT:

 

This Note is made pursuant to and is subject
to the terms and conditions of that certain Credit Agreement between Borrower
and Bank dated as of May 27, 2004, as amended from time to time (the “Credit
Agreement”).  Any default in the payment
or performance of any obligation under this Note, or any defined event of
default under the Credit Agreement, shall constitute an “Event of Default”
under this Note.

 

MISCELLANEOUS:

 

(a)                                  Remedies.  Upon the occurrence of any Event of Default,
the holder of this Note, at the holder’s option, may declare all sums of
principal and interest outstanding hereunder to be immediately due and payable
without presentment, demand, notice of nonperformance, notice of protest,
protest or notice of dishonor, all of which are expressly waived by each
Borrower, and the obligation, if any, of the holder to extend any further
credit hereunder shall immediately cease and terminate.  Each Borrower shall pay to the holder
immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys’ fees (to include outside
counsel fees and all allocated costs of the holder’s in-house counsel),
expended or incurred by the holder in connection with the enforcement of the
holder’s rights and/or the collection of any amounts which become due to the
holder under this Note, and the prosecution or defense of any action in any way
related to this Note, including without limitation, any action for declaratory
relief, whether incurred at the trial or appellate level, in an arbitration
proceeding or otherwise, and including any of the foregoing incurred in
connection with any bankruptcy proceeding (including without limitation, any
adversary proceeding, contested matter or motion brought by Bank or any other
person) relating to any Borrower or any other person or entity.

 

(b)                                 Obligations Joint
and Several.  Should more than one
person or entity sign this Note as a Borrower, the obligations of each such
Borrower shall be joint and several.

 

(c)                                  Governing Law.  This Note shall be governed by and construed
in accordance with the laws of the State of California.

 

This note supersedes and replaces that
certain Revolving Line of Credit Note dated May 27, 2004, in the maximum
amount of $5,000,000.00, executed by Borrower in favor of Bank.

 

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IN WITNESS WHEREOF, the undersigned has
executed this Note as of the date first written above.

 

	
  ITERIS, INC.

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
   

  
	
  Title

  	
   

  	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
   

  
	
  Title

  	
   

  	
   

  
							

 

3Exhibit 10.1

 

THE J. JILL GROUP, INC.

THIRD AMENDED AND RESTATED 1998 EMPLOYEE
STOCK PURCHASE PLAN

 

1.         PURPOSE.

 

The J. Jill Group, Inc. Employee Stock Purchase
Plan (the “Plan”) is intended to provide a method whereby employees of The J.
Jill Group, Inc. (the “Company”) will have an opportunity to acquire an
ownership interest (or increase an existing ownership interest) in the Company
through the purchase of shares of the Common Stock of the Company.  It is the intention of the Company that the
Plan qualify as an “employee stock purchase plan” under Section 423 of the
Internal Revenue Code of 1986, as amended (the “Code”).  The provisions of the Plan shall,
accordingly, be construed so as to extend and limit participation in a manner
consistent with the requirements of that section of the Code.

 

2.         DEFINITIONS.

 

(a)  “Compensation” means, for the
purpose of any Offering pursuant to this Plan, base pay in effect as of the
Offering Commencement Date (as hereinafter defined).  Base pay shall be determined prior to any
salary reduction contributions under a cafeteria plan pursuant to Section 125
of the Code, any salary reduction amounts pursuant to a qualified
transportation fringe benefit program pursuant to Section 132(f) of
the Code, and any elective deferrals to a nonqualified deferred compensation
plan and to a cash or deferred plan pursuant to Section 401(k) of the Code.

 

(b)  “Board” means the Board of Directors of
the Company.

 

(c)  “Committee” means the Compensation
Committee of the Board.

 

(d)  “Common Stock” means the common stock,
$.01 par value per share, of the Company.

 

(e)  “Company” shall also include any Parent or
Subsidiary of the Company designated by the Board, unless the context otherwise
requires.

 

(f)  “Employee” means any person who is customarily
employed at least 20 hours per week and more than five months in a calendar
year by the Company.

 

(g)  “Parent” shall mean any present or future
corporation which is or would constitute a “parent corporation” as that term is
defined in Section 424 of the Code.

 

(h)  “Subsidiary” shall mean any present or
future corporation which is or would constitute a “subsidiary corporation” as
that term is defined in Section 424 of the Code.

 

3.         ELIGIBILITY.

 

(a)  Participation in the Plan is completely
voluntary.  Participation in any one or
more of the offerings under the Plan shall neither limit, nor require,
participation in any other offering.

 

 

(b)  Each employee shall be eligible to
participate in the Plan on the first Offering Commencement Date, as hereafter
defined, following the commencement of employment with the Company.  Notwithstanding the foregoing, no employee
shall be granted an option under the Plan:

 

(i)  if, immediately after the grant, such
employee would own stock, and/or hold outstanding options to purchase stock,
possessing 5% or more of the total combined voting power or value of all
classes of stock of the Company or any Parent or Subsidiary; for purposes of
this Paragraph the rules of Section 424(d) of the Code shall
apply in determining stock ownership of any employee; or

 

(ii)  which permits his rights to purchase
stock under all Section 423 employee stock purchase plans of the Company
and any Parent or Subsidiary to exceed $25,000 of the fair market value of the
stock (determined at the time such option is granted) for each calendar year in
which such option is outstanding; for purposes of this Paragraph, the rules of
Section 423(b)(8) of the Code shall apply.

 

4.         OFFERING DATES.

 

The right to purchase stock hereunder shall be made
available by a series of one-year offerings (the “Offering” or “Offerings”) to
employees eligible in accordance with Paragraph 3 hereof.  The applicable date of commencement (“Offering
Commencement Date”) and date of termination (“Offering Termination Date”) for
each Offering shall be the first and the last business day of each calendar
year, respectively, unless the Committee, in its discretion, determines
otherwise.  Participation in any one or
more of the Offerings under the Plan shall neither limit, nor require,
participation in any other Offering.

 

5.         PARTICIPATION.

 

Any eligible employee may become a participant by
completing a payroll deduction authorization form provided by the Company and
filing it with the office of the Company’s Treasurer 20 days prior to each
applicable Offering Commencement Date, as determined by the Committee pursuant
to Paragraph 4, or such other period as may be permitted by the Company in
its sole discretion and which shall be applicable in a uniform and
nondiscriminatory manner.

 

6.         PAYROLL DEDUCTIONS.

 

(a)  At the time a participant files his
authorization for a payroll deduction, he shall elect to have deductions made
from his pay on each payday during any Offering in which he is a participant at
a specified percentage of his Compensation as determined on the applicable
Offering Commencement Date; said percentage shall be in increments of one
percent up to a maximum percentage of ten percent.

 

(b)  Payroll deductions for a participant shall
commence on the applicable Offering Commencement Date when his authorization
for a payroll deduction becomes effective and shall end on the Offering
Termination Date of the Offering to which such authorization is applicable
unless sooner terminated by the participant as provided in Paragraph 10.

 

(c)  All payroll deductions made for a
participant shall be credited to his account under the Plan.  A participant may not make any separate cash
payment into such account.

 

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(d)  A participant may withdraw from the Plan
at any time during the applicable Offering period.

 

7.         GRANTING OF OPTION.

 

(a)  On the Offering Commencement Date of each
Offering, a participating employee shall be deemed to have been granted an
option to purchase a maximum number of shares of the Common Stock equal to an
amount determined as follows:  85% of the
market value per share of the Common Stock on the applicable Offering
Commencement Date shall be divided into an amount equal to the percentage of
the employee’s Compensation which he has elected to have withheld (but no more
than 10%) multiplied by the employee’s Compensation over the Offering
period.  Such market value per share of
the Common Stock shall be determined as provided in clause (i) of
Paragraph 7(b).

 

(b)  The option price of the Common Stock
purchased with payroll deductions made during each such Offering for a
participant therein shall be the lower of:

 

(i)  85% of the closing price per share on the
Offering Commencement Date as reported by a nationally recognized stock
exchange, or, if the Common Stock is not listed on such an exchange, as
reported by the National Association of Securities Dealers Automated Quotation
System (“Nasdaq”) National Market System or, if the Common Stock is not listed
on the Nasdaq National Market System, 85% of the mean of the bid and asked
prices per share on the Offering Commencement Date or, if the Common Stock is
not traded over the counter, 85% of the fair market value on the Offering
Commencement Date as determined by the Committee; and

 

(ii)  85% of the closing price per share on the
Offering Termination Date as reported by a nationally recognized stock
exchange, or, if the Common Stock is not listed on such an exchange, as
reported by the Nasdaq National Market System or, if the Common Stock is not
listed on the Nasdaq National Market System, 85% of the mean of the bid and
asked prices per share on the Offering Termination Date or, if the Common Stock
is not traded over the counter, 85% of the fair market value on the Offering
Termination Date as determined by the Committee.

 

8.         EXERCISE OF OPTION.

 

(a)  Unless a participant gives written notice
to the Treasurer of the Company as hereinafter provided, his option for the
purchase of Common Stock with payroll deductions made during any Offering will
be deemed to have been exercised automatically on the Offering Termination Date
applicable to such Offering for the purchase of the number of full shares of
Common Stock which the accumulated payroll deductions in his account at that time
will purchase at the applicable option price (but not in excess of the number
of shares for which options have been granted the employee pursuant to
Paragraph 7(a)), and any excess in his account at that time, other than as
described in Paragraph 8(b), will be automatically returned to the participant.

 

(b)  Fractional shares will not be issued under
the Plan and any accumulated payroll deductions which would have been used to
purchase fractional shares shall be automatically carried forward to the next
Offering unless the participant elects, by written notice to the Treasurer of
the Company, to have the excess cash returned to him.

 

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9.         DELIVERY.

 

The Company will deliver to each participant (as
promptly as possible after the appropriate Offering Termination Date), a
certificate representing the Common Stock purchased upon exercise of his
option.

 

10.       WITHDRAWAL AND TERMINATION.

 

(a)  Prior to the Offering Termination Date for
an Offering, any participant may withdraw the payroll deductions credited to
his account under the Plan for such Offering by giving written notice to the
Treasurer of the Company.  All of the
participant’s payroll deductions credited to such account will be paid to him
promptly after receipt of notice of withdrawal, without interest, and no future
payroll deductions will be made from his pay during such Offering.  The Company will treat any attempt to borrow
by a participant on the security of accumulated payroll deductions as an election
to withdraw such deductions.

 

(b)  A participant’s election not to
participate in, or withdrawal from, any Offering will not have any effect upon
his eligibility to participate in any succeeding Offering or in any similar
plan which may hereafter be adopted by the Company.

 

(c)  Upon termination of the participant’s
employment for any reason, including retirement but excluding death, the
payroll deductions credited to his account will be returned to him, or, in the
case of his death, to the person or persons entitled thereto under
Paragraph 14.

 

(d)  Upon termination of the participant’s
employment because of death, his beneficiary (as defined in Paragraph 14)
shall have the right to elect, by written notice given to the Company’s
Treasurer prior to the expiration of a period of 90 days commencing with the
date of the death of the participant, either:

 

(i)  to withdraw all of the payroll deductions
credited to the participant’s account under the Plan; or

 

(ii)  to exercise the participant’s option for
the purchase of stock on the Offering Termination Date next following the date
of the participant’s death for the purchase of the number of full shares which
the accumulated payroll deductions in the participant’s account at the date of
the participant’s death will purchase at the applicable option price (subject
to the limitation contained in Paragraph 7(a)), and any excess in such
account will be returned to said beneficiary. 
In the event that no such written notice of election shall be duly
received by the office of the Company’s Treasurer, the beneficiary shall
automatically be deemed to have elected to withdraw the payroll deductions
credited to the participant’s account at the date of the participant’s death
and the same will be paid promptly to said beneficiary.

 

11.       INTEREST.

 

No interest will be paid or allowed on any money
paid into the Plan or credited to the account of any participating employee.

 

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12.       STOCK.

 

(a)  The maximum number of shares of Common
Stock available for issuance and purchase by employees under the Plan, subject
to adjustment upon changes in capitalization of the Company as provided in
Paragraph 17, shall be 400,000 shares of Common Stock, par value $.01 per
share, of the Company.  If the total
number of shares for which options are exercised on any Offering Termination
Date in accordance with Paragraph 8 exceeds the maximum number of shares
for the applicable Offering, the Company shall make a pro rata allocation of
the shares available for delivery and distribution in an equitable manner, and
the balances of payroll deductions credited to the account of each participant
under the Plan shall be automatically returned to the participant.

 

(b)  The participant will have no interest in
stock covered by his option until such option has been exercised.

 

13.       ADMINISTRATION.

 

The Plan shall be administered by the
Committee.  The interpretation and
construction of any provision of the Plan and adoption of rules and
regulations for administering the Plan shall be made by the Committee.  Determinations made by the Committee with
respect to any matter or provision contained in the Plan shall be final,
conclusive and binding upon the Company and upon all participants, their heirs
or legal representatives.  Any rule or
regulation adopted by the Committee shall remain in full force and effect
unless and until altered, amended, or repealed by the Committee.

 

14.       DESIGNATION OF BENEFICIARY.

 

A participant shall file with the Treasurer of the
Company a written designation of a beneficiary who is to receive any Common
Stock and/or cash under the Plan.  Such
designation of beneficiary may be changed by the participant at any time by
written notice.  Upon the death of a
participant and upon receipt by the Company of proof of the identity and
existence at the participant’s death of a beneficiary validly designated by him
under the Plan, the Company shall deliver such Common Stock and/or cash to such
beneficiary.  In the event of the death
of a participant and in the absence of a beneficiary validly designated under
the Plan who is living at the time of such participant’s death, the Company
shall deliver such Common Stock and/or cash to the executor or administrator of
the estate of the participant.  No beneficiary
shall prior to the death of the participant by whom he has been designated,
acquire any interest in the Common Stock and/or cash credited to the
participant under the Plan.

 

15.       TRANSFERABILITY.

 

Neither payroll deductions credited to a participant’s
account nor any rights with regard to the exercise of an option or to receive
Common Stock under the Plan may be assigned, transferred, pledged, or otherwise
disposed of in any way by the participant other than by will or the laws of
descent and distribution.  Any such
attempted assignment, transfer, pledge, or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds in accordance with Paragraph 8(b).

 

5

 

16.       USE OF FUNDS.

 

All payroll deductions received or held by the
Company under this Plan may be used by the Company for any corporate purpose,
and the Company shall not be obligated to segregate such payroll deductions.

 

17.       EFFECT OF CHANGES OF COMMON STOCK.

 

If the Company shall subdivide or reclassify the
Common Stock which has been or may be optioned under this Plan, or shall
declare thereon any dividend payable in shares of such Common Stock, or shall
take any other action of a similar nature affecting such Common Stock, then the
number and class of shares of Common Stock which may thereafter be optioned (in
the aggregate and to any participant) shall be adjusted accordingly and in the
case of each option outstanding at the time of any such action, the number and
class of shares which may thereafter be purchased pursuant to such option and
the option price per share shall be adjusted to such extent as may be
determined by the Committee, with the approval of independent public
accountants and counsel, to be necessary to preserve the rights of the holder
of such option.

 

18.       AMENDMENT OR TERMINATION.

 

The Board may at any time terminate or amend the
Plan.  No such termination shall affect
options previously granted, nor may an amendment make any change in any option
theretofore granted which would adversely affect the rights of any participant
holding options under the Plan.

 

19.       NOTICES.

 

All notices or other communications by a participant
to the Company under or in connection with the Plan shall be deemed to have
been duly given when received by the Treasurer of the Company.

 

20.       MERGER OR CONSOLIDATION.

 

If the Company is a party to any merger or
consolidation, the holder of each option then outstanding will thereafter be
entitled to receive at the next Offering Termination Date upon the exercise of
such option, in lieu of the number of shares of Common Stock as to which such
option shall be exercisable, the number and class of shares of stock or other
securities to which such holder would have been entitled pursuant to the terms
of the agreement of merger or consolidation if, immediately prior to such
merger or consolidation, such holder had been the holder of record of a number
of shares of Common Stock equal to the number of shares for which such option
was exercisable.  In accordance with this
Paragraph and Paragraph 17, the Committee shall determine the kind and
amount of such securities or property which such holder of an option shall be
entitled to receive.  In addition, in
connection with any merger or consolidation, the Committee may accelerate the
Offering Termination Date to a date on or before the effective date of such
merger or consolidation.  A sale of all
or substantially all of the assets of the Company shall be deemed a merger or consolidation
for purposes of this Section 20.

 

21.       APPROVAL OF STOCKHOLDERS.

 

The Plan is subject to the approval of the
stockholders of the Company at their next annual meeting or at any special
meeting of the stockholders for which one of the purposes shall be

 

6

 

to
act upon the Plan.  If the Plan is not
approved by the stockholders of the Company, all payroll deductions credited to
a participant’s account under the Plan shall be automatically returned to the
participant.

 

22.       GOVERNMENTAL AND OTHER REGULATIONS.

 

The Plan, and the grant and exercise of the rights
to purchase shares hereunder, and the Company’s obligation to sell and deliver
shares upon the exercise of rights to purchase shares, shall be subject to all
applicable federal, state and foreign laws, rules and regulations, and to
such approvals by any regulatory or governmental agency as may, in the opinion
of counsel for the Company, be required. 
The Plan shall be governed by, and construed and enforced in accordance
with, the provisions of Sections 421, 423 and 424 of the Code and the
substantive laws of the Commonwealth of Massachusetts.  In the event of any inconsistency between
such provisions of the Code and any such laws, said provisions of the Code
shall govern to the extent necessary to preserve favorable federal income tax
treatment afforded employee stock purchase plans under Section 423 of the
Code.

 

*          *         *

 

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