Document:

Exhibit 10.63

 

 

May 18, 2006

 

 

PERSONAL & CONFIDENTIAL

 

Michael
J. Jeffery

8
Nichols Road

Landgrove,
VT 05148

 

Dear Michael:

 

LECG Corporation, a Delaware
corporation, on behalf of itself and its wholly-owned subsidiary, LECG, LLC
(collectively, “LECG” or the “Company”), is very pleased to confirm its offer
for you to join the Company in a senior management role as its Chief Operating
Officer (“COO”). Should you accept our offer, the commencement of your
employment (“Effective Date”) will be May 15, 2006. This letter agreement
will set forth the terms of your employment relationship with LECG, as well as
some of LECG’s policies associated with your work at LECG.

 

Duties and Responsibilities.

 

You will be the COO and will
be responsible for managing the operations of the Company, its subsidiaries and
affiliates, as set forth in the job description attached hereto and
incorporated herein by this reference. This is a full-time position reporting
directly to the Chairman of the Board. You will also continue as a member of
the Board of Directors, but will no longer receive cash or equity compensation
for that service.

 

Compensation.

 

You will be compensated
based on a salary and bonus plan. Your base salary will be set at a rate of
$550,000 per annum. You are eligible for a target annual bonus of $550,000 subject
to certain financial and management performance criteria to be established by
the Compensation Committee of the Board of Directors. The  bonus plan objectives for 2006 have not yet
been determined but will be aligned with the objectives established for the
Chairman. Your salary will be reviewed on an annual basis for discretionary
adjustment by the Compensation Committee as part of its overall salary
review process for senior management. As we understand your availability during
part of June and August may be limited due to pre-existing
commitments, you have agreed to approximately 6 weeks of unpaid leave during
the period, on such terms as is agreed with the Company’s Chief Financial
Officer.

 

 

I will also request that the
Compensation Committee approve a grant of 7,500 options to you with a 7 year
vesting period at their meeting on July 26-27, 2006. The grant, if
approved, would be effective August 1, 2006. These Options will be granted pursuant to the
LECG Corporation’s 2003 Stock Option Plan (“Plan”), as amended from time to
time. A copy of the Plan will be provided to you. You acknowledge that you will
read the Plan, and you and LECG agree that your respective rights and
responsibilities with regard to such Options will be governed solely by the
terms of the Plan, as amended from time to time. These Options will be subject
to, among other things, any splits or other similar events that may occur
in the future which are applicable to these Options as provided for in the
Plan.

 

The exercise price for these
Options will be the “Fair Market Value” of LECG Corporation’s stock on the date
of grant under the terms of the Plan. Because LECG Corporation’s shares are
traded on NASDAQ, the Fair Market Value used to establish the exercise price
for your Options will be the closing sales price for LECG Corporation’s
stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system on the day of determination, as reported in The Wall Street Journal on the date of your Option grant.

 

We will provide you with a
customized Non-Qualified Option Agreement. You must sign and return the
customized Non-Qualified Option Agreement to LECG within fourteen (14) days
of your receipt of the Option Agreement.

 

Office Location.

 

It is anticipated that you generally
will spend at least three weeks per month of your time in the Company’s offices,
with a focus on the offices in Emeryville, and Washington, D.C., subject to
coordination with my schedule and the schedules of our Chief Financial
Officer and Director of Administration. However, LECG is also willing to secure
a small office space in Manchester, Vermont to permit you to work from Vermont,
subject to cost and logistics assessment by our Director of Administration. LECG
does not intend to request that you relocate from Vermont to Emeryville,
California or Washington, D.C. Coach airfare reimbursement will be based on
travel originating in Albany, New York or Boston, Massachusetts.

 

Benefits

 

You will be entitled to
participate in the employee benefits afforded to all of the Company’s
employees, subject to eligibility requirements. Each of these benefits is
subject to revision from time to time, with respect to the benefit level, or
even whether a particular benefit continues to be offered. To the extent that
you elect to participate in these benefits, you would be subject to the same
revisions and changes to such benefits as other LECG employees.

 

LECG also offers
participation for employees in both a 401(k) Plan, Section 125(k) Flexible
Spending Plan and Deferred Compensation Plan. To the extent LECG provides a
match to employees’ 401(k) contributions, this will be provided to you.

 

2

 

You may elect to
receive company group health insurance, vision, dental and prescription drug
coverage. You can purchase additional dependent coverage through the plan. Currently,
LECG employees pay a portion of the costs of certain insurance benefits for
themselves and their families (including a life and accidental death and
dismemberment policy and a long-term disability plan), and the amounts paid by
the employees (via payroll deductions) may vary over time due to changes
in the costs and availability of coverage. You will be subject to the same
requirements to pay a portion of these costs as other LECG employees. Supplemental
life insurance is also available at your own expense. Your health benefits
coverage will begin on the first day of the first full month following your
hire date, provided you enroll within 25 days of your hire date. Delay in
completing enrollment forms could delay entry into the plans until the next
open enrollment period. Open enrollment periods are held once per year.

 

You will be entitled to thirty
(30) days of paid vacation per year. There are eight (8) paid holidays and
two personal days offered each year. LECG does not define a standard number of
sick days; however, we consider 10 business days or fewer to be reasonable.

 

3

 

Business Expenses

 

LECG will reimburse you for
all reasonable and necessary business expenses incurred in the performance of
your duties, subject to submission of appropriate receipts.

 

Terms

 

Your employment with LECG is
based on the mutual consent of you and LECG, and accordingly either LECG or you
may terminate your employment and this agreement at any time, with or
without cause, and without payment of severance. If you decide to terminate
your employment with LECG, you agree that you will provide LECG with thirty
(30) days prior written notice addressed to the Chairman of the Board if
Directors. Upon termination of your affiliation with LECG, you agree that you
will no longer state that you are an employee of LECG.

 

You agree that you will
abide by all policies of LECG, as may be amended from time to time. LECG
reserves the right to change any of its policies from time to time, including
policies discussed in this agreement, as business conditions warrant. Any such
changes will be communicated upon their adoption.

 

Confidentiality;
Non-Solicitation of Employees

 

You agree to hold
confidential and for the sole benefit of LECG and its clients all non-public
information, knowledge (whether verbal or written and howsoever stored or
recorded), documents and other materials which you may create or acquire
or in any way relating to LECG or its business (“Confidential Information”). Such
Confidential Information is strictly confidential and must not be disclosed to
anyone outside LECG or its clients, including family members or any LECG
employee who is not entitled to the information, except as required by legal
process or proceeding. If disclosure is required by law or compelled by legal
proceeding, you agree to notify LECG’s General Counsel as soon as is practical
of any request for the disclosure of Confidential Information.

 

Confidential Information
does not include any information, knowledge, document or other material that is
or becomes known to the public generally by means other than any disclosure
thereof by you or any other person under a similar confidentiality obligation
to LECG. Any doubts about whether any information is confidential should be
resolved in favor of confidentiality. You shall not disclose, use, copy,
publish, summarize or remove from the Company’s premises any Confidential
Information except (i) during your employment with LECG to the extent
reasonably necessary to carry out your responsibilities and (ii) after the
termination of your employment with LECG, if and only if you obtain prior
written consent of LECG.

 

4

 

You further agree that
during your employment period and for one (1) year after the termination
thereof, you will not directly or indirectly, on your own behalf or on behalf
of any other party, solicit or induce, or cause others to solicit or induce,
any person employed by or affiliated with, or acting as an independent
contractor to LECG, its subsidiaries or affiliated entities, to terminate
his/her relationship with LECG, its subsidiaries or affiliated entities.

 

Administrative Support

 

LECG will provide you with
an appropriate level of executive assistance.

 

Final Agreement.

 

This offer letter is final
and supersedes all previous and contemporaneous oral negotiations, writings and
understandings between the parties concerning the subject matter of this offer
letter, and this offer letter and its attachment constitutes the entire
agreement between us.

 

Michael, all of us at LECG
very much look forward to having you as part of our management team. Please
sign below to indicate your acceptance of the terms contained in this letter
and its attachment.

 

5

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  /s/ David J.
  Teece

  	
   

  
	
   

  	
  David J.
  Teece

  
	
   

  	
  Chairman of
  the Board

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed to
  and accepted this 26 day of May, 2006.

  	
   

  
	
   

  	
   

  
	
  /s/ Michael
  J. Jeffery

  	
   

  	
   

  
	
  Michael J.
  Jeffery

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  DJT/crk

  	
   

  
	
  Attachment: COO Job Description

  	
   

  
	
   

  	
   

  
	
  cc:

  	
  John C. Burke (w/encl.)

  	
   

  
	
   

  	
  Marvin A. Tenenbaum, Esq. (w/encl.)

  	
   

  
					

 

6

 

 

LECG CORPORATION

CHIEF OPERATING OFFICER

[Job
Description]

 

REPORTS TO:

 

The Chairman of the Board of Directors.

 

FUNCTION:

 

Provides overall leadership in implementing
the strategic direction of the Company, and in developing the tactics and
business plans necessary to realize margin improvement, revenue and earnings
growth, and to increase shareholder value.

 

Manages
the overall business to ensure strategic and business plans are effectively
implemented, the results are monitored and reported to the Board, and financial
and operational objectives are attained.

 

MANAGEMENT PHILOSOPHY OF THE FIRM:

 

LECG is a professional services firm that
operates with a unique “at risk” business model. The business is organized
around the “experts,” and the “at-risk” model provides them with professional
autonomy, flexibility and the support of a highly capable staff and management
team, but without corporate hierarchy. The “at risk” model is central to the
firm’s culture, which maximizes the potential capabilities and energies of
highly talented experts. Corporate management is intentionally lean, yet
experienced in guiding professional service companies. It is our view that traditional
employer-employee authority structures and bureaucratic policies inhibit the
productivity of experts and often run counter to their professional values.

 

The firm provides a comprehensive support
infrastructure, including information technology and administrative support
services, such as marketing, billing, project accounting, receivables
collection and internal and external financial reporting. The administrative
support functions are highly centralized and integrated, thereby providing
seamless support across a large number of offices and practice disciplines.

 

PERCEIVED MANAGEMENT NEEDS:

 

Over the past several years, the firm has
experienced significant growth in the number of experts and professionals
through extensive hires and acquisitions. The firm has also expanded its
practice areas and opened offices in new locations – domestically and overseas.
This requires careful management of an ever-growing and geographically diverse
workforce and places significant demands on senior management, and on our
internal systems, procedures and controls. The “non-traditional” nature of the
firm’s business model, in conjunction with the

 

7

 

rapid rate of growth presents unique
management challenges, demanding a premium on “people skills.”

 

The firm is now at a crucial juncture,
following its successful IPO and three years of 30% growth. It is now poised to
implement its long term strategy to be pre-eminent in the industry, growing
revenues from $300 million to in excess of $1 billion while maintaining its
current high quality of service. As such, the firm seeks a Chief Operating
Officer who has the energy, capabilities and experience to work closely with
the Chairman and the Board of Directors to build shareholder value through the
creation of a world-class, world renowned and highly profitable professional
services firm. Key to achieving this success will be the continued development
of high quality process and infrastructure necessary to support the firm’s growth
aspirations.

 

KEY AUTHORITIES AND RESPONSIBILITIES:

 

A.                                   General Functions and
Responsibilities

 

1.                                       Responsible for the attainment of long and short
term financial and operational goals, including revenue growth, expense, and cost
control, and margin management.

 

2.                                       Responsible for the overall administration of
the firm with a strong interface with experts and senior management to ensure
future growth and improve margins, and the establishment and implementation of
all policy and operating initiatives.

 

3.                                       Provide effective leadership to the management
and the employees of the firm and establish an effective means of control and
coordination for all operations and activities as follows:

 

a.                                       Establish performance goals, allocates resources
and assesses policies for senior corporate management.

 

b.                                      Interact extensively with Chief Financial Officer,
Chief Accounting Officer, Director of Administration and General Counsel. Departments
reporting to the COO include human resources, information technology services,
facilities (operations), accounting and finance and legal.

 

c.                                       Direct internal communications with respect to
administrative matters, establishes priorities and objectives with senior

 

8

 

management team and executes directives from Chairman
and Board.

 

d.                                      Direct operations of the firm to meet plans and
financial goals, Sarbanes-Oxley compliance and governance requirements.

 

4.                                       Foster a corporate culture that promotes ethical
practices, integrity and a positive work climate, enabling the Company to
attract, retain and motivate a diverse group of quality employees including:

 

a.                                       Delivery of highest level of service internally to
experts and externally to clients in a cost-effective and highly ethical
manner.

 

b.                                      Facilitate the resolution of issues between practice
areas and individual experts in coordination with the Chairman and the Director
of Administration.

 

5.                                       Keep the Chairman and the Board fully informed
on all aspects of the Company’s operational and financial affairs, and on all
matters of significant relevance to the Company including potential threats,
opportunities and recommended actions.

 

6.                                       Direct and participate in acquisition and growth
activities to support overall business objectives and plans including
management of acquisition planning, due diligence, integration and financial
and acquisition monitoring.

 

7.                                       Develop and maintain a sound, effective
organization structure, and ensure capable management succession, progressive
employee training and development programmes, and reports regularly to the
Board on these matters and senior executive performance. Initial focus includes development of a plan to
identify and address current and future organizational requirements (such as a
robust human resources function) and building of organizational capabilities
(particularly in the area of information technology).

 

8.                                       Ensure that effective communications and
appropriate relationships are maintained with the shareholders of the Company
and other stakeholders as follows:

 

9

 

a.                                       Participate along with the Chairman and the Chief
Financial Officer in investor relations, setting communications philosophy and
strategy.

 

b.                                      Participate in capital market development, including
financing strategies and bank relationships.

 

9.                                       Work with the Chief Financial Officer to direct
short-term and long-range planning and budget development to support strategic
business goals including:

 

a.                                       Develop an operational and financial strategy
that supports strategic vision of the firm as articulated by the Chairman and
the Board.

 

b.                                      Complete annual planning and budgeting in coordination
with the Chief Financial Officer.

 

c.                                       Monitor performance against goals and objectives to
ensure progress in being made and corrective action – if necessary – is being
taken.

 

B.                                     Strategy/Risks

 

1.                                       Develop with the Chairman strategic plans to
ensure the Corporation’s profitable growth and overall success. This includes
updating and making changes as required, and involving the Board in the early
stages of developing strategy.

 

2.                                       Turn the first year of the strategic plan into a
detailed operating plan and budget. The main financial and operating objectives
are then approved by the Board and become the basis by which all executive and
employee pay for performance goals are set and measured.

 

3.                                       Identify, in conjunction with other senior
executives, the key risks with respect to the Company and its businesses and
reviews such risks and strategies for managing them with the Board.

 

4.                                       Ensure that the assets of the Company are
adequately safeguarded and maintained.

 

10

 

C.                                     Financial Reporting

 

1.                                       Oversee the quality and timeliness of financial
reporting. Reports to the Board, in conjunction with the Chief Financial
Officer, on the fairness and adequacy of the financial reporting of the Company
to its shareholders.

 

2.                                       Ensure, in conjunction with the Chief Financial
Officer, that the annual and interim reports of the Company do not contain any
misrepresentations and that the annual and interim financial statements fairly
present, in all materials respects, the financial condition, results of
operations and cash flows of the Company.

 

3.                                       Design (or supervise the design of), implement,
maintain and periodically evaluate, in conjunction with the Chief Financial
Officer and the Chief Accounting Officer, the effectiveness of:

 

a.                                       Internal controls to provide reasonable
assurances that the financial statements of the Corporation are fairly
presented in accordance with generally accepted accounting principles; and

 

b.                                      Disclosure controls and procedures to provide
reasonable assurances that material information relating to the Company is made
known to the Chief Operating Officer by others within the Company. Reports any
deficiencies in such controls and procedures to the Audit Committee in
coordination with the Chief Accounting Officer.

 

11Exhibit
10.1

 

WEBSENSE, INC.

DELAYED ISSUANCE STOCK ISSUANCE AWARD AGREEMENT

Pursuant
to the Delayed Issuance Stock Issuance Award Grant Notice (“Grant Notice”) and this Delayed
Issuance Stock Issuance Award Agreement (“Award Agreement”),
Websense, Inc. (the “Corporation”)
has awarded you a Delayed Issuance Stock Issuance right pursuant to Article 4
of the Websense, Inc. 2000 Stock Incentive Plan (the “Plan”)
for the number of shares of Common Stock (the “Shares”)
as indicated in the Grant Notice (collectively, the “Award”).  Defined terms not explicitly defined in this
Award Agreement but defined in the Plan shall have the same definitions as in
the Plan.

The details of your Award are as follows.

1.             CONSIDERATION.  
Consideration for this Award is satisfied by your services to the
Corporation.

2.             VESTING.  Subject
to the limitations contained herein, your Award shall vest as provided in the
Grant Notice, provided that vesting shall cease upon the termination of your
Service.  Any Shares covered by
this Award Agreement that have not vested shall be forfeited upon the termination of your Service.

3.             DIVIDENDS. 
You shall
be entitled to receive cash payments equal to any cash dividends and other
distributions paid with respect to a corresponding number of Shares covered by
your Award, provided that if any such dividends or distributions are paid in
Shares, the Fair Market Value of such Shares shall be converted into additional
Shares covered by the Award, and further provided that such additional Shares
shall be subject to the same forfeiture restrictions and restrictions on
transferability as apply to the Awards with respect to which they relate.

4.             DISTRIBUTION OF SHARES OF COMMON STOCK.  The
Corporation shall deliver to you a number of Shares of the Corporation’s Stock
equal to the number of vested Shares subject to your Award, including any
additional Shares received pursuant to Section 3 above, on the vesting date or
dates provided in your Grant Notice. 
Notwithstanding the foregoing, in the event that the Company determines
that a sale of shares of Company stock by you on the date the shares subject to
the award are scheduled to be delivered to you (the “Original
Distribution Date”) would violate the Company’s policy regarding
insider trading of the Company’s stock, as determined by the Company in
accordance with such policy, then such shares shall not be delivered on such
Original Distribution Date and shall instead be delivered as soon as
practicable following the next date you could sell such shares pursuant to such
policy; provided, however, that in no event shall the delivery of the shares be
delayed pursuant to this provision beyond the later of: (1) December 31st of
the same calendar year of the Original Distribution Date, or (2) the 15th day
of the third calendar month following the Original Distribution Date.

 1
 

 

5.             CERTAIN ADJUSTMENTS.  In the event of any stock split, stock
dividend, recapitalization, combination of shares, exchange of shares or other
event which the Board deems, in its sole discretion, to be similar
circumstances, the Board (or appropriate committee thereof) may make such
adjustments to the number and/or kind of shares of stock or securities subject
to this Award and any other provision of this Award affected by such change, as
the Board may determine in its sole discretion.

6.             COMPLIANCE
WITH LAW.  Under no
circumstances shall Shares or other assets be issued or delivered to you
pursuant to the provisions of this Award Agreement unless, in the opinion of
counsel for the Corporation or its successors, there shall have been compliance
with all applicable requirements of Federal and state securities laws, all
applicable listing requirements of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock is at the time listed for
trading and all other requirements of law or of any regulatory bodies having
jurisdiction over such issuance and delivery.

7.             RESTRICTIVE
LEGENDS.  The
Shares issued under your Award shall be endorsed with appropriate legends, if
any, determined by the Corporation.

8.             TRANSFERABILITY.  Your Award is not transferable, except by
will or by the laws of inheritance. 
Notwithstanding the foregoing, by delivering written notice to the
Corporation, in a form satisfactory to the Corporation, you may designate a
third party who, in the event of your death, shall thereafter be entitled to
receive any distribution of Shares pursuant to Section 4 of this Award
Agreement.

9.             AT WILL
EMPLOYMENT.  Nothing in this
Award Agreement or in the Plan shall confer upon you any right to continue in
Service for any period of specific duration or interfere with or otherwise
restrict in any way your rights, or the rights of the Corporation (or any
Parent or Subsidiary employing or retaining you), which rights are hereby
expressly reserved by each, to terminate your Service at any time for any
reason, with or without cause.

10.          UNSECURED OBLIGATION.  Your
Award is unfunded, and as a holder of vested Award, you shall be considered an
unsecured creditor of the Corporation with respect to the Corporation’s
obligation, if any, to issue Shares pursuant to this Award Agreement.  You shall not have voting or any other
rights as a stockholder of the Corporation with respect to the Shares purchased
pursuant to this Award Agreement until such Shares are issued to you pursuant
to Section 4 of this Award Agreement.  
Upon such issuance, you will obtain full voting and other rights as a
stockholder of the Corporation.  Nothing
contained in this Award Agreement, and no action taken pursuant to its
provisions, shall create or be construed to create a trust of any kind or a
fiduciary relationship between you and the Corporation or any other person.

11.          WITHHOLDING OBLIGATIONS.

(a)           On or before the time you receive a distribution
of Shares pursuant to your Award, or at any time thereafter as requested by the
Corporation, you hereby authorize any required withholding from, at the
Corporation’s election, the Shares, 
payroll and any other amounts payable to you and otherwise agree to make
adequate provision for any sums required 

 2
 

 

to satisfy the federal, state,
local and foreign tax withholding obligations of the Corporation or a
Subsidiary, if any, which arise in connection with your Award.

(b)           Unless the tax withholding obligations of the Corporation
and/or any Subsidiary are satisfied, the Corporation shall have no obligation
to issue a certificate for such Shares.

12.          NOTICES.  Any notice required to be
given under this Award Agreement shall be in writing and shall be deemed
effective upon personal delivery or upon deposit in the U.S. mail, registered
or certified, postage prepaid and properly addressed to the party entitled to
such notice at the address indicated below such party’s signature line on this
Award Agreement or at such other address as such party may designate by ten
(10) days advance written notice under this paragraph to all other parties to
this Award Agreement.

13.          HEADINGS.  The headings of the Sections in this Award
Agreement are inserted for convenience only and shall not be deemed to
constitute a part of this Award Agreement or to affect the meaning of this
Award Agreement.

14.          AMENDMENT.  This Award Agreement may be
amended only by a writing executed by the Corporation and you which
specifically states that it is amending this Award Agreement. Notwithstanding
the foregoing, this Award Agreement may be amended solely by the Board (or
appropriate committee thereof) by a writing which specifically states that it
is amending this Award Agreement, so long as a copy of such amendment is
delivered to you, and provided that no such amendment adversely affecting your
rights hereunder may be made without your written consent. Without limiting the
foregoing, the Board (or appropriate committee thereof) reserves the right to
change, by written notice to you, the provisions of this Award Agreement in any
way it may deem necessary or advisable to carry out the purpose of the grant as
a result of any change in applicable laws or regulations or any future law,
regulation, ruling, or judicial decision, provided that any such change shall
be applicable only to rights relating to that portion of the Delayed Issuance
Stock Purchase which is then subject to restrictions as provided herein.

15.          MISCELLANEOUS.

(a)           The rights and
obligations of the Corporation under your Award shall be transferable by the
Corporation to any one or more persons or entities, and all covenants and
agreements hereunder shall inure to the benefit of, and be enforceable by the
Corporation’s successors and assigns. 
This Award Agreement shall terminate automatically, and all the Shares
subject to the Award shall immediately vest in full, in the event of any
Corporate Transaction, except to the extent your Award is assigned to the
successor corporation (or parent thereof) in connection with such Corporate
Transaction.

(b)           You agree upon
request to execute any further documents or instruments necessary or desirable
in the sole determination of the Corporation to carry out the purposes or
intent of your Award.

 3
 

 

(c)           You acknowledge and
agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting
your Award and fully understand all provisions of your Award.

(d)           This Award
Agreement shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or national securities exchanges
as may be required.

(e)           All obligations of
the Corporation under the Plan and this Award Agreement shall be binding on any
successor to the Corporation, whether the existence of such successor is the
result of a direct or indirect purchase, merger, consolidation, or otherwise,
of all or substantially all of the business and/or assets of the Corporation.

16.          GOVERNING PLAN DOCUMENT.  Your
Award is subject to all the provisions of the Plan, the provisions of which are
hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the
provisions of your Award and those of the Plan, the provisions of the Plan
shall control; provided, however,
that Section 4 of this Award Agreement shall govern the timing of any distribution
of Shares under your Award.  The
Board (or appropriate committee thereof) shall have the power to interpret the
Plan and this Award Agreement and to adopt such rules for the administration,
interpretation, and application of the Plan as are consistent therewith and to
interpret or revoke any such rules. All actions taken and all interpretations
and determinations made by the Board (or appropriate committee thereof) shall
be final and binding upon you, the Corporation, and all other interested persons.
No member of the Board or committee of the Board shall be personally liable for
any action, determination, or interpretation made in good faith with respect to
the Plan or this Award Agreement.

17.          EFFECT ON
OTHER EMPLOYEE BENEFIT PLANS.  The
value of the Delayed Issuance Stock Issuance Award subject to this Award
Agreement shall not be included as compensation, earnings, salaries, or other
similar terms used when calculating the Employee’s benefits under any employee
benefit plan sponsored by the Corporation or any Subsidiary except as such plan
otherwise expressly provides. The Corporation expressly reserves its rights to
amend, modify, or terminate any of the Corporation’s or any Subsidiary’s
employee benefit plans.

18.          GOVERNING LAW.  This Award Agreement shall be governed by,
and construed in accordance with, the laws of the State of California without
resort to that State’s conflict-of-laws rules.

19.          SEVERABILITY.  If all or any part of this Award Agreement or
the Plan is declared by any court or governmental authority to be unlawful or
invalid, such unlawfulness or invalidity shall not invalidate any portion of
this Award Agreement or the Plan not declared to be unlawful or invalid. Any
Section of this Award Agreement (or part of such a Section) so declared to be
unlawful or invalid shall, if possible, be construed in a manner which will
give effect to the terms 

 4
 

 

of such Section or part of a Section to the fullest
extent possible while remaining lawful and valid.

IN WITNESS
WHEREOF, the parties have executed and delivered this Award Agreement effective
as of the day and set forth below.

 

	
  

  	
  WEBSENSE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  

 

 

 5

 

WEBSENSE, INC. 

DELAYED ISSUANCE STOCK ISSUANCE AWARD GRANT NOTICE

(2000 STOCK INCENTIVE PLAN)

 

 

Websense, Inc. (the “Corporation”), pursuant to its 2000 Stock Incentive Plan
of Websense, Inc. (the “Plan”),
hereby awards to Employee a right to purchase the number of shares of Common
Stock (the “Shares”) set forth below (the
“Award”).  This Award shall be evidenced by a Delayed
Issuance Stock Issuance Award Agreement (the “Award Agreement”). This Award is subject
to all of the terms and conditions as set forth herein and in the applicable
Award Agreement and the Plan, both of which are attached hereto and
incorporated herein in their entirety.

	
  Employee:

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  
	
  Number of Shares subject to Award:

  	
   

  	
   

  
	
  Consideration:

  	
   

  	
  Participant’s Services

  

 

Vesting
Schedule:                                           The
Shares subject to this Award will vest in accordance with the following
schedule:

Additional
Terms/Acknowledgements: 
The undersigned acknowledges receipt of, and understands and agrees to,
this Grant Notice, the Award Agreement and the Plan.  Employee further acknowledges that as of the
Date of Grant, this Grant Notice, the Award Agreement and the Plan set forth
the entire understanding between Employee and the Corporation regarding the
acquisition of Shares and supersede all prior oral and written agreements on
that subject with the exception of (i) awards previously granted and delivered
to Employee under the Plan, and (ii) the following agreements only:

	
  OTHER AGREEMENTS:

  	
   

  	
   

  

 

	
  WEBSENSE, INC.

  	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  	
  Signature

  
	
  Title:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
						

 

ATTACHMENTS:                         Award
Agreement and 2000 Stock Incentive Plan of Websense, Inc.

 

 1.

 

Attachment I

Award Agreement

 

 

Attachment II

2000 Stock Incentive Plan of Websense, Inc.

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