Document:

Exhibit 10.01 Comerica Note Payable

    COMERICA                                          Exhibit
      10.01

     

    VARIABLERATE-SINGLEPAYMENT
      NOTE

     

    
      	 
	
               

              AMOUNT

            	
               

              NOTE
                DATE

            	
               

              MATURITY
                DATE

            	
               

              TAX
                IDENTIFICATION #

            
	
               

              $225,000.00

            	
               

              September
                09, 2005

            	
               

              February
                01, 2006

            	
               

              75-2900905

            
	 

    

     

    On
      the
      Maturity Date, as stated above, for value received, the undersigned promises)
      to
      pay to the order of  Comerica
      Bank ("Bank"),
      at any office of the Bank in the State of Texas, Two
      Hundred Twenty Five Thousand and no/100
      Dollars
      (U.S.) with interest from the date of this Note at a per annum rate equal to
      the
      lessor of (a) the Maximum Rate, as later defined, or (b) the Stated
      Rate, as later defined, until maturity, whether by acceleration or otherwise,
      or
      until Default, as later defined, and after that at
      a
      default rate equal to the rate of interest otherwise prevailing under this
      Note
      plus 3% per annum (but in no event in excess of
      the
      Maximum Rate). If on any day the Stated Rate shall exceed the Maximum Rate
      for
      that day, the rate of interest applicable to this
      Note
      shall be fixed at the Maximum Rate on that day and on each day thereafter until
      the total amount of interest accrued on
      the
      unpaid principal balance of this Note equals the total amount of interest which
      would have accrued if there had been no Maximum Rate. The "Stated Rate" shall
      mean the Bank's "prime rate" which is the annual rate of interest so designated
      by the Bank and which is changed by the Bank from time to time plus
      1.000%.
      Interest rate changes will be effective for interest computation purposes as
      and
      when the Maximum Rate or the Bank's prime rate, as applicable, changes. Subject
      to the limitations hereinbelow set forth, interest shall be calculated for
      the
      actual number of days the principal is outstanding on the basis of a 360-day
      year if this Note evidences a business or commercial loan or a 365-day year
      if a
      consumer loan. Accrued interest on this Note shall be payable on either (i)
      [ ]
      the Maturity Date or (ii) [x] the 1st day
      of
      each Month
      commencing
      October
      01,
      2005,
      until
      the
      Maturity Date when all amounts outstanding under this Note shall be due
and
      payable in full. If the frequency of interest payments is not otherwise
      specified, accrued interest on this Note shall be payable monthly
      on the first day of each month. If any payment of principal or interest under
      this Note shall be payable on a day other than a
      day on
      which the Bank is open for business, this payment shall be extended to the
      next
      succeeding business day and interest shall
      be
      payable at the rate specified In this Note during this extension. A late payment
      charge equal to a reasonable amount not
      to
      exceed 5% of each late payment may be charged on any payment not received by
      the
      Bank within 10 calendar days after the payment due date, but acceptance of
      payment of this charge shall not waive any Default under this Note.

     

    The
      term
      "Maximum Rate," as used herein, shall mean at the particular time in question
      the maximum nonusurious rate of interest
      which,
      under applicable law, may then be charged on this Note. If such maximum rate
      of
      interest changes after the date hereof, the
      Maximum Rate shall be automatically Increased or decreased as the case may
      be,
      without notice to the undersigned from time to
      time
      as of the effective date of each change in such maximum rate. For purposes
      of
      determining the Maximum Rate under the law
      of
      the State of Texas, the applicable interest rate ceiling shall be the "weekly
      ceiling" from time to time in effect under Chapter
      303 of
      the Texas Finance Code, as amended.

    

    This
      Note
      and any other indebtedness and liabilities of any kind of the undersigned (or
      any of them) to the Bank, and any and all
      modifications, renewals or extensions of it, whether joint or several,
      contingent or absolute, now existing or later arising, and however
      evidenced and whether incurred voluntarily or involuntarily, known or unknown,
      or originally payable to the Bank or to a
      third
      party and subsequently acquired by Bank including, without limitation, any
      late
      charges; loan fees or charges; overdraft indebtedness;
      costs incurred by Bank In establishing, determining, continuing or defending
      the
      validity or priority of any security interest,
      pledge or other lien or In pursuing any of Its rights or remedies under any
      loan
      document (or otherwise) or in connection
      with any
      proceeding involving the Bank as a result of any financial accommodation to
      the
      undersigned (or any of them); and reasonable costs and expenses of attorneys
      and
      paralegals, whether inside or outside counsel is used, and whether any suit
      or
      other action is instituted, and to court costs if suit or action is instituted,
      and whether any such fees, costs or expenses are incurred at the trial court
      level or on appeal, in bankruptcy, in administrative proceedings, in probate
      proceedings or otherwise (collectively
      "Indebtedness")are secured by and the Bank is granted a security interest in
      and
      lien upon all items deposited in any account
      of any of the undersigned with the Bank and by all proceeds of these items
      (cash
      or otherwise), all account balances of
      any of
      the undersigned from time to time with the Bank, by all property of any of
      the
      undersigned from time to time in the possession of the Bank and by any other
      collateral, rights and properties described in each and every deed of trust,
      mortgage, security
      agreement, pledge, assignment and other security or collateral agreement which
      has been, or will at any time(s) later be, executed
      by any (or all) of the undersigned to or for the benefit of the Bank
      (collectively "Collateral"). 

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    Notwithstanding
      the above, (i)
      to
      the extent that any portion of the Indebtedness is a consumer loan, that portion
      shall not be secured by any deed of trust or mortgage
      on or other security interest in any of the undersigned's
      principal dwelling or in any of the undersigned's real property which
      is
      not a purchase money security interest as to that portion, unless expressly
      provided to the contrary in another place, or
      (ii) if
      the undersigned (or any of them) has(have) given or give(s) Bank a deed of
      trust
      or mortgage covering California real property,
      that deed of trust or mortgage shall not secure this Note or any other
      indebtedness of the undersigned (or any of them), unless
      expressly provided to the contrary in another place, or (iii) if the undersigned
      (or any of them) has (have) given or give(s) the
      Bank
      a deed of trust or mortgage covering real property which, under Texas law,
      constitutes the homestead of such person,
      that
      deed of trust or mortgage shall not secure this Note or any other indebtedness
      of the undersigned (or any of them) unless expressly provided to the contrary
      in
      another place.

    

    If
      the
      undersigned (or any of them) or any guarantor under a guaranty of all or part
      of
      the Indebtedness ("guarantor")(a) fail(s) to
      pay any
      of the Indebtedness when due, by maturity, acceleration or otherwise, or fail(s)
      to pay any Indebtedness owing on a demand basis upon demand; or (b) fail(s)
      to
      comply with any of the terms or provisions of any agreement between the
      undersigned (or any of them) or any guarantor and the Bank; or (c) become(s)
      insolvent or the subject of a voluntary or involuntary
      proceeding in bankruptcy, or a reorganization, arrangement or creditor
      composition proceeding, (if a business entity) cease(s)
      doing business as a going concern, (if a natural person) die(s) or become(s)
      incompetent, (if a partnership) dissolve(s) or any
      general partner of it dies or becomes incompetent or becomes the subject of
      a
      bankruptcy proceeding or (if a corporation or a limited
      liability company) is the subject of a dissolution, merger or consolidation;
      or
      (d) if any warranty or representation made by any
      of
      the undersigned or any guarantor in connection with this Note or any of the
      Indebtedness shall be discovered to be untrue or
      incomplete; or (e) if there is any termination, notice of termination, or breach
      of any guaranty, pledge, collateral assignment or subordination
      agreement relating to all or any part of the indebtedness; or (f) if there
      Is
      any failure, by any of the undersigned or any
      guarantor to pay when due any of its indebtedness (other than to the Bank)
      or in
      the observance or performance of any term,
      covenant
      or condition in any document evidencing, securing or relating to such
      indebtedness; or (g) if the Bank deems itself insecure believing that the
      prospect of payment of this Note or any of the Indebtedness is impaired or
      shall
      fear deterioration, removal
      or waste of any of the Collateral; or (h) if there Is filed or issued a levy
      or
      writ of attachment or garnishment or other like
      judicial
      process upon the undersigned (or any of them) or any guarantor or any of the
      Collateral, including without limit, any accounts
      of the undersigned (or any of them) or any guarantor with the Bank, then the
      Bank, upon the occurrence of any of these
      events
      (each a "Default"),may at its option and without prior notice to the undersigned
      (or any of them), declare any or all of the Indebtedness
      to be immediately due and payable (notwithstanding any provisions contained
      in
      the evidence of it to the contrary),
      sell or
      liquidate all or any portion of the Collateral, set off against the Indebtedness
      any amounts owing by the Bank to the undersigned
      (or any of them), charge interest at the default rate provided in the document
      evidencing the relevant Indebtedness
      and
      exercise any one or more of the rights and remedies granted to the Bank by
      any
      agreement with the undersigned (or any of them) or given to it under applicable
      law. All payments under this Note shall be in immediately available United
      States funds, without setoff or counterclaim,

    

    If
      this
      Note is signed by two or more parties (whether by all as makers or by one or
      more as an accommodation party or otherwise),
      the obligations and undertakings under this Note shall be that of all and any
      two or more jointly and also of each
      severally. This Note shall bind the undersigned, and the undersigned's
      respective heirs, personal representatives, successors and assigns.

    

    The
      undersigned waive(s) presentment, demand, protest, notice of dishonor, notice
      of
      demand or intent to demand, notice of acceleration
      or intent to accelerate, and all other notices, and agree(s) that no extension
      or indulgence to the undersigned (or
      any of
      them) or release, substitution or nonenforcement of any security, or release
      or
      substitution of any of the undersigned, any guarantor or any other party,
      whether with or without notice, shall affect the obligations of any of the
      undersigned. The undersigned waive(s) all defenses or right to discharge
      available under Section 3.605 of the Texas Uniform Commercial Code and waive(s)
      all other suretyship defenses or right to discharge. The undersigned agree(s)
      that the Bank has the right to sell, assign, or grant participations, or any
      interest in, any or all of the Indebtedness, and that, in connection with this
      right, but without limiting its ability to make other disclosures to the full
      extent allowable, the Bank may disclose all documents and information which
      the
      Bank now or later has relating to the undersigned or the Indebtedness. The
      undersigned agree(s) that the Bank may provide information relating to this
      Note
      or the indebtedness or relating to the undersigned to the Bank's parent,
      affiliates, subsidiaries and service providers.

    

    The
      undersigned agree(s) to reimburse the holder or owner of this Note upon demand
      for any and all costs and expenses (including without limit, court costs, legal
      expenses and reasonable attorneys' fees, whether inside or outside counsel
      is
      used, and whether or not suit is instituted and, if suit is instituted, whether
      at the trial court level, appellate level, in a bankruptcy, probate or
      administrative proceeding or otherwise) incurred in collecting or attempting
      to
      collect this Note or incurred in any other matter or proceeding relating to
      this
      Note.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    The
      undersigned acknowledge(s) and agree(s) that there are no contrary agreements,
      oral or written, establishing a term of this Note and agree(s) that the terms
      and conditions of this Note may not be amended, waived or modified except in
      a
      writing signed by an officer of the Bank expressly stating that the writing
      constitutes an amendment, waiver or modification of the terms of this Note.
      As
      used in this Note, the word "undersigned" means, individually and collectively,
      each maker, accommodation party, endorser and other party signing this Note
      in a
      similar capacity. If any provision of this Note is unenforceable in whole or
      part for any reason, the remaining provisions shall continue to be effective.
      THIS NOTE IS MADE IN THE STATE OF TEXAS AND SHALL BE GOVERNED BY AND CONSTRUED
      IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF TEXAS, WITHOUT REGARD
      TO
      CONFLICT OF LAWS PRINCIPLES.

    

    This
      Note
      and all other documents, instruments and agreements evidencing, governing,
      securing, guaranteeing or otherwise relating to or executed pursuant to or
      in
      connection with this Note or the indebtedness evidenced hereby (whether executed
      and delivered prior to, concurrently with or subsequent to this Note), as such
      documents may have been or may hereafter be amended from time to time (the
      "Loan
      Documents") are intended to be performed in accordance with, and only to the
      extent permitted by, all applicable usury laws. If any provision hereof or
      of
      any of the other Loan Documents or the application thereof to any person or
      circumstance shall, for any reason and to any extent, be invalid or
      unenforceable, neither the application of such provision to any other person
      or
      circumstance nor the remainder of the instrument in which such provision is,
      contained shall be affected thereby and shall be enforced to the greatest extent
      permitted by law. It is expressly stipulated and agreed to be the Intent of
      the
      holder hereof to at all times comply with the usury and other applicable laws
      now or hereafter governing the interest payable on the Indebtedness evidenced
      by
      this Note. If the applicable law is ever revised, repealed or. judicially
      interpreted so as to render usurious any amount called for under this Note
      or
      under any of the other Loan Documents, or contracted for, charged, taken,
      reserved or received with respect to the Indebtedness evidenced by this Note,
      or
      if Bank's exercise of the option to accelerate the maturity of this Note, or
      if
      any prepayment by the undersigned or prepayment Agreement results (or would,
      if
      compiled with, result) in the undersigned having paid, contracted for or being
      charged for any interest in excess of that permitted by law, then it is the
      express intent of the undersigned and Bank that this Not) and the other Loan
      Documents shall be limited to the extent necessary to prevent such result and
      all excess amounts theretofore collected by Bank shall be credited on the
      principal balance of this Note or, if fully paid, upon such other Indebtedness
      as shall then remain outstanding (or, if this Note and all other indebtedness
      have been paid in full, refunded to the undersigned), and the provisions of
      this
      Note and the other Loan Documents shall immediately be deemed reformed and
      the
      amounts thereafter collectable hereunder and thereunder reduced, without the
      necessity of the execution of any new document, so as to comply with the then
      applicable law, but so as to permit the recovery of the fullest amount otherwise
      called for hereunder or thereunder. All sums paid, or agreed to be paid by
      the
      undersigned for the use, forbearance, detention, taking, charging, receiving
      or
      reserving of the indebtedness of the undersigned to Bank under this Note or
      arising under or pursuant to the other Loan Documents shall, to the maximum
      extent permitted by applicable law, be amortized, prorated, allocated and spread
      throughout the full term of such Indebtedness until payment In full so that
      the
      rate or amount of interest on account of such Indebtedness does not exceed
      the
      usury ceiling from time to time in effect and applicable to such Indebtedness
      for so long as such Indebtedness is outstanding. To the extent federal law
      permits Bank to contract for, charge or receive a greater amount of interest,
      Bank will rely on federal law Instead of the Texas Finance Code, for the purpose
      of determining the Maximum Rate. Additionally, to the maximum extent permitted
      by applicable law now or hereafter in effect, Bank may, at its option and from
      time to time, implement any other method of computing the Maximum Rate under
      the
      Texas Finance Code, or under other applicable law, by giving notice, if
      required, to the undersigned as provided by applicable law now or hereafter
      in
      effect. Notwithstanding anything to the contrary contained herein or in any
      of
      the other Loan Documents, it is not the intention of Bank to accelerate the
      maturity of any interest that has not accrued at the time of such acceleration
      or to collect unearned interest at the time of such acceleration.

    

    The
      indebtedness evidenced by this Note Is in renewal, extension and modification,
      but not in extinguishment or novation of the indebtedness evidenced by that
      certain promissory note dated N/A in the original principal amount of $ N/A
      executed by N/A, payable to the order of Bank.

    

    THE
      UNDERSIGNED AND, BY ACCEPTANCE OF THIS NOTE, THE BANK, ACKNOWLEDGE THAT THE
      RIGHT TO TRIAL BY JURY
      IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING
      (OR HAVING HAD THE
      OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY,
      AND FOR THEIR MUTUAL
      BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING
      THE PERFORMANCE
      OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS NOTE OR THE INDEBTEDNESS.TX
      00179 111-99) 

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

    

    THIS
      WRITTEN LOAN AGREEMENT (AS DEFINED BY SECTION 26.02 OF THE TEXAS BUSINESS AND
      COMMERCE CODE) REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
      BE
      CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
      OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
      PARTIES.

    

    

    

    
      	 	
              Ascendant
                Solutions, Inc.

            
	 	 
	 	
              /s/
                Gary W. Boyd 9/13/05

            
	 	
              Gary
                Boyd, Chief Financial Officer

            

    

     

    

    -7-EXHIBIT 10.1

 

EMPLOYMENT
AGREEMENT

 

This AGREEMENT is entered
into as of September 12, 2005, by and between Gil Laks (the “Executive”) and Align Technology, Inc., a Delaware
corporation (the “Company”).

 

WHEREAS, the Executive is
currently employed by the Company as Vice President, International;

 

WHEREAS, the Company
desires to increase the duties and responsibilities of the Executive and
appoint the Executive as an executive officer of the Company to serve at the
discretion of the Board of Directors;

 

WHEREAS, the Executive
desires to accept such appointment on the terms and conditions set forth
herein;

 

NOW THEREFORE, in
consideration of the premises and the mutual covenants set forth below, the
parties hereby agree as follows:

 

1.             Duties and Scope of Employment.

 

(a)           Position.  For the term of his employment under this
Agreement (“Employment”), the Company agrees
to employ the Executive in the position of Vice President, International.  The Executive shall report to the Chief
Executive Officer.  The Executive accepts
such employment and agrees to discharge all of the duties normally associated
with said position, and to faithfully and to the best of his abilities perform
such other services consistent with his position as Vice President, International
as may from time to time be assigned to him by the Chief Executive Officer (the
“CEO”).

 

(b)           Obligations
to the Company.  During the term of
his Employment, the Executive shall devote his full business efforts and time
to the Company.  The Executive agrees not
to actively engage in any other employment, occupation or consulting activity
for any direct or indirect remuneration without the prior approval of the CEO,
provided, however, that the Executive may, without the approval of the CEO,
serve in any capacity with any civic, educational or charitable
organization.  The Executive may own, as
a passive investor, no more than one percent (1%) of any class of the
outstanding securities of any publicly traded corporation.

 

(c)           No
Conflicting Obligations.  The Executive represents and warrants
to the Company that he is under no obligations or commitments, whether
contractual or otherwise, that are inconsistent with his obligations under this
Agreement.  The Executive represents and
warrants that he will not use or disclose, in connection with his employment by
the Company, any trade secrets or other proprietary information or intellectual
property in which the Executive or any other person has any right, title or
interest and that his employment by the Company as contemplated by this
Agreement will not infringe or violate the rights of any other person or
entity.  The Executive represents and
warrants to the

 

1

 

Company that he
has returned all property and confidential information belonging to any prior
employers.

 

(d)           Commencement
Date.  The Executive commenced
full-time Employment on September 12, 2005.

 

2.             Cash and Incentive Compensation.

 

(a)           Salary.  The Company shall pay the Executive as
compensation for his services a base salary at a gross annual rate of $215,000,
payable in accordance with the Company’s standard payroll schedule.  The compensation specified in this Subsection (a),
together with any adjustments by the Company from time to time, is referred to
in this Agreement as “Base Salary.”

 

(b)           Target
Bonus.  The Executive shall be
eligible to participate in an annual bonus program that will provide him with
an opportunity to earn a potential annual bonus equal to 60.0% of the Executive’s
Base Salary.  The amount of the bonus
shall be based upon the performance of the Executive, as set by the individual
performance objectives described in this Subsection, and the Company in each
calendar year, and shall be paid by no later than January 31 of the
following year, contingent on the Executive remaining employed by the Company
as of such date.  The Executive’s
individual performance objectives and those of the Company’s shall be set by
the CEO after consultation with the Executive by no later than March 31,
of each calendar year.  For calendar year
2005, the Executive’s bonus shall be prorated based on the number of days of
such year that the Executive was employed by the Company.  Any bonus awarded or paid to the Executive
will be subject to the discretion of the Board.

 

(c)           Stock
Options.  The Executive shall be
eligible for an annual incentive stock option grant subject to the approval of
the Board.  The per share exercise price
of the option will be equal to the per share fair market value of the common stock
on the date of grant, as determined by the Board of Directors.  The term of such option shall be ten (10) years,
subject to earlier expiration in the event of the termination of the Executive’s
Employment.    The Executive shall vest
in 25% of the option shares after the first twelve (12) months of continuous
service and shall vest in the remaining option shares in equal monthly
installments over the next three (3) years of continuous service.  The grant of each such option shall be
subject to the other terms and conditions set forth in the Company’s 2005
Incentive Plan and in the Company’s standard form of stock option agreement.

 

3.             Vacation and Executive Benefits. 
During the term of his Employment, the Executive shall be eligible for
17 days vacation per year, in accordance with the Company’s standard policy for
senior management, as it may be amended from time to time.  During the term of his Employment, the
Executive shall be eligible to participate in any employee benefit plans
maintained by the Company for senior management, subject in each case to the
generally applicable terms and conditions of the plan in question and to the
determinations of any person or committee administering such plan.

 

4.             Business Expenses.  During the
term of his Employment, the Executive shall be authorized to incur necessary
and reasonable travel, entertainment and other business expenses in connection
with his duties hereunder.  The Company
shall reimburse the Executive for such expenses upon presentation of an
itemized account and appropriate supporting documentation, all in accordance
with the Company’s generally applicable policies.

 

 

5.             Term of Employment.

 

(a)           Basic
Rule.  The Company agrees to continue
the Executive’s Employment, and the Executive agrees to remain in Employment
with the Company, from the commencement date set forth in Section 1(d) until
the date when the Executive’s Employment terminates pursuant to Subsection (b) below.  The Executive’s Employment with the Company
shall be “at will,” and either the Executive or the Company may terminate the
Executive’s Employment at any time, for any reason, with or without Cause.  Any contrary representations, which may have
been made to the Executive shall be superseded by this Agreement.  This Agreement shall constitute the full and
complete agreement between the Executive and the Company on the “at will”
nature of the Executive’s Employment, which may only be changed in an express
written agreement signed by the Executive and a duly authorized officer of the
Company.

 

(b)           Termination.  The
Company may terminate the Executive’s Employment at any time and for any reason
(or no reason), and with or without Cause, by giving the Executive notice in
writing.  The Executive may terminate his
Employment by giving the Company fourteen (14) days advance notice in
writing.  The Executive’s Employment
shall terminate automatically in the event of his death or Permanent
Disability.  For purposes of this
Agreement, “Permanent Disability” shall mean
that the Executive has become so physically or mentally disabled as to be
incapable of satisfactorily performing the duties under this Agreement for a
period of one hundred eighty (180) consecutive calendar days.

 

(c)           Rights
Upon Termination.  Except as
expressly provided in Section 6, upon the termination of the Executive’s
Employment pursuant to this Section 5, the Executive shall only be
entitled to the compensation, benefits and reimbursements described in Sections
2, 3 and 4 for the period preceding the effective date of the termination.  The payments under this Agreement shall fully
discharge all responsibilities of the Company to the Executive.

 

(d)           Termination
of Agreement.  The termination of
this Agreement shall not limit or otherwise affect any of the Executive’s
obligations under Section 7.

 

6.             Termination Benefits.

 

(a)           General
Release.  Any other provision of this
Agreement notwithstanding, Subsections (b), (c) or (d) below shall
not apply unless the Executive (i) has executed a general release in a
form prescribed by the Company of all known and unknown claims that he may then
have against the Company or persons affiliated with the Company, and (ii) has
agreed not to prosecute any legal action or other proceeding based upon any of
such claims.

 

(b)           Termination
without Cause.  If, during the term
of this Agreement, and not in connection with a Change of Control as addressed
in Subsection (c) below, the Company terminates Executive’s
employment without Cause or due to Permanent Disability or Executive resigns
for Good Reason, then:

 

(i)            the
Executive shall immediately vest in an additional number of shares under all
outstanding options as if he had performed twelve (12) additional months of
service; and

 

(ii)           the
Company shall pay the Executive, an amount equal to:  (x) the then current year’s Target Bonus
prorated for the number of days of Executive is employed in said year, payable
in a lump sum within 30 days of the date of termination of Employment; (y) one
year’s Base Salary, payable in equal installments in accordance with the Company’s

 

 

standard payroll schedule; and (z) the greater of the then current year’s
Target Bonus or the actual prior year’s bonus, payable in a lump sum on the one
year anniversary of termination of Employment. 
The Executive’s Base Salary shall be paid at the rate in effect at the
time of the termination of Employment.

 

(c)           Upon
a Change of Control. In the event of the occurrence of a Change in Control
while the Executive is employed by the Company:

 

(i)            the
Executive shall immediately vest in an additional number of shares under all
outstanding options as if he had performed twelve (12) additional months of
service; and

 

(ii)           if within
twelve (12) months following the occurrence of the Change of Control, one of
the following events occurs:

 

(A) the Executive’s employment is terminated by the Company
without Cause; or

 

(B) the Executive resigns for Good Reason

 

then the Executive shall immediately vest as to all
shares under all outstanding options and the Company shall pay the Executive,
in a lump sum, an amount equal to:  (i) the
then current year’s Target Bonus prorated for the number of days of Executive
is employed in said year; (ii) one year’s Base Salary; and (iii) the
greater of the then current year’s Target Bonus or the actual prior year’s
bonus.  The Executive’s Base Salary shall
be paid at the rate in effect at the time of the termination of Employment.

 

(d)           Health
Insurance.  If Subsection (b) or
(c) above applies, and if the Executive elects to continue his health
insurance coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) following
the termination of his Employment, then the Company shall pay the Executive’s
monthly premium under COBRA until the earliest of (i) 12 months following
the termination of the Executive’s Employment, or (ii) the date upon which
the Executive commences employment with an entity other than the Company.

 

(e)           Definition
of “Cause.”  For all purposes under this Agreement, “Cause” shall mean any of the following:

 

(i)            Unauthorized
use or disclosure of the confidential information or trade secrets of the
Company;

 

(ii)           Any breach
of this Agreement or the Employee Proprietary Information and Inventions
Agreement between the Executive and the Company;

 

(iii)          Conviction
of, or a plea of “guilty” or “no contest” to, a felony under the laws of the
United States or any state thereof;

 

(iv)          Misappropriation
of the assets of the Company or any act of fraud or embezzlement by Executive,
or any act of dishonesty by Executive in connection with the performance of his
duties for the Company that adversely affects the business or affairs of the
Company; or

 

 

(v)           Intentional
misconduct or the Executive’s failure to satisfactorily perform his/her duties
after having received written notice of such failure and at least thirty (30)
days to cure such failure.

 

The foregoing shall not
be deemed an exclusive list of all acts or omissions that the Company may
consider as grounds for the termination of the Executive’s Employment.

 

(f)            Definition
of “Good Reason.”  For all purposes under this Agreement,
the Executive’s resignation for “Good Reason”
shall mean the Executive’s resignation within ninety (90) days the occurrence
of any one or more of the following events:

 

(i)            The
Executive’s position, authority or responsibilities being significantly
reduced;

 

(ii)           The
Executive being asked to relocate his principal place of employment such that
his commuting distance from his residence prior to the Change of Control is
increased by over thirty-five (35) miles;

 

(iii)          The
Executive’s annual Base Salary or bonus being reduced; or

 

(iv)          The
Executive’s benefits being materially reduced.

 

(g)           Definition
of “Change of Control.”  For all purposes under this Agreement, “Change of Control” shall mean any of the following:

 

(i)            a sale of
all or substantially all of the assets of the Company;

 

(ii)           the
acquisition of more than fifty percent (50%) of the common stock of the Company
(with all classes or series thereof treated as a single class) by any person or
group of persons;

 

(iii)          a
reorganization of the Company wherein the holders of common stock of the
Company receive stock in another company (other than a subsidiary of the
Company), a merger of the Company with another company wherein there is a fifty
percent (50%) or greater change in the ownership of the common stock of the
Company as a result of such merger, or any other transaction in which the
Company (other than as the parent corporation) is consolidated for federal
income tax purposes or is eligible to be consolidated for federal income tax
purposes with another corporation; or

 

(iv)          in the
event that the common stock is traded on an established securities market, a
public announcement that any person has acquired or has the right to acquire
beneficial ownership of more than fifty percent (50%) of the then-outstanding
common stock and for this purpose the terms “person” and “beneficial ownership”
shall have the meanings provided in Section 13(d) of the Securities
and Exchange Act of 1934 or related rules promulgated by the Securities
and Exchange Commission, or the commencement of or public announcement of an
intention to make a tender offer or exchange offer for more than fifty percent
(50%) of the then outstanding Common Stock.

 

 

7.             Non-Solicitation and Non-Disclosure.

 

(a)           Non-Solicitation.  During the period commencing on the date of
this Agreement and continuing until the first anniversary of the date when the
Executive’s Employment terminated for any reason, the Executive shall not
directly or indirectly, personally or through others, solicit or attempt to
solicit (on the Executive’s own behalf or on behalf of any other person or
entity) the employment of any employee of the Company or any of the Company’s
affiliates.

 

(b)           Proprietary
Information.  As a condition of
employment, the Executive has previously entered into a Proprietary Information
and Inventions Agreement with the Company, attached to this Agreement as Exhibit A,
which is incorporated herein by reference.

 

8.             Successors.

 

(a)           Company’s
Successors.  This Agreement shall be
binding upon any successor (whether direct or indirect and whether by purchase,
lease, merger, consolidation, liquidation or otherwise) to all or substantially
all of the Company’s business and/or assets. 
For all purposes under this Agreement, the term “Company” shall
include any successor to the Company’s business and/or assets which becomes
bound by this Agreement.

 

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

 

9.             Miscellaneous Provisions.

 

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

 

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

 

(c)           Whole
Agreement.  No other agreements,
representations or understandings (whether oral or written) which are not
expressly set forth in this Agreement have been made or entered into by either
party with respect to the subject matter of this Agreement.  This Agreement and the Proprietary
Information and Inventions Agreement contain the entire understanding of the
parties with respect to the subject matter hereof.

 

(d)           Withholding
Taxes.  All payments made under this
Agreement shall be subject to reduction to reflect taxes or other charges
required to be withheld by law.

 

 

(e)           Choice
of Law.  The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of California (except provisions governing
the choice of law).

 

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

 

(g)           Arbitration.  Each party agrees that any and all disputes
which arise out of or relate to the Executive’s employment, the termination of
the Executive’s employment, or the terms of this Agreement shall be resolved through
final and binding arbitration.  Such
arbitration shall be in lieu of any trial before a judge and/or jury, and the
Executive and Company expressly waive all rights to have such disputes resolved
via trial before a judge and/or jury. 
Such disputes shall include, without limitation, claims for breach of
contract or of the covenant of good faith and fair dealing, claims of
discrimination, claims under any federal, state or local law or regulation now
in existence or hereinafter enacted and as amended from time to time concerning
in any way the subject of the Executive’s employment with the Company or its
termination.  The only claims not covered
by this Agreement to arbitrate disputes are: 
(i) claims for benefits under the unemployment insurance benefits; (ii) claims
for workers’ compensation benefits under any of the Company’s workers’
compensation insurance policy or fund; (iii) claims arising from or
relating to the non-competition provisions of this Agreement; and (iv) claims
concerning the validity, infringement, ownership, or enforceability of any
trade secret, patent right, copyright, trademark or any other intellectual
property right, and any claim pursuant to or under any existing
confidential/proprietary/trade secrets information and inventions agreement(s)
such as, but not limited to, the Proprietary Information and Inventions
Agreement.  With respect to such
disputes, they shall not be subject to arbitration; rather, they will be
resolved pursuant to applicable law.

 

Arbitration shall be
conducted in accordance with the National Rules for the Resolution of
Employment Disputes of the American Arbitration Association (“AAA Rules”), provided, however, that the arbitrator shall
allow the discovery authorized by California Code of Civil
Procedure section 1282, et seq., or any
other discovery required by applicable law in arbitration proceedings,
including, but not limited to, discovery available under the applicable state
and/or federal arbitration statutes. 
Also, to the extent that any of the AAA Rules or anything in this
arbitration section conflicts with any arbitration procedures required by
applicable law, the arbitration procedures required by applicable law shall
govern.

 

Arbitration will be
conducted in Santa Clara County, California or, if the Executive does not
reside within 100 miles of Santa Clara County at the time the dispute arises,
then the arbitration may take place in the largest metropolitan area within 50
miles of the Executive’s place of residence when the dispute arises.

 

During the course of the
arbitration, the Executive and the Company will each bear equally the
arbitrator’s fee and any other type of expense or cost of arbitration, unless
applicable law requires otherwise, and each shall bear their own respective
attorneys’ fees incurred in connection with the arbitration.  The arbitrator will not have authority to
award attorneys’ fees unless a statute or contract at issue in the dispute
authorizes the award of attorneys’ fees to the prevailing party. In such case,
the arbitrator shall have the authority to make an award of attorneys’ fees as
required or permitted by the applicable statute or contract.  If there is a dispute as to whether the
Executive or the Company is the prevailing party in the arbitration, the
arbitrator will decide this issue.

 

 

The arbitrator shall
issue a written award that sets forth the essential findings of fact and
conclusions of law on which the award is based. 
The arbitrator shall have the authority to award any relief authorized
by law in connection with the asserted claims or disputes.  The arbitrator’s award shall be subject to
correction, confirmation, or vacation, as provided by applicable law setting
forth the standard of judicial review of arbitration awards.  Judgment upon the arbitrator’s award may be
entered in any court having jurisdiction thereof.

 

(h)           No
Assignment.  This Agreement and all
rights and obligations of the Executive hereunder are personal to the Executive
and may not be transferred or assigned by the Executive at any time.  The Company may assign its rights under this
Agreement to any entity that assumes the Company’s obligations hereunder in
connection with any sale or transfer of all or a substantial portion of the
Company’s assets to such entity.

 

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

 

[The
remainder of this page intentionally left blank.]

 

 

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

 

 

	
   

  	
  Gil Laks

  
	
   

  	
   

  
	
   

  	
    /s/ Gil
  Laks

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALIGN TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Thomas
  M. Prescott

  	
   

  
	
   

  	
  By: Thomas M. Prescott

  
	
   

  	
  Title: President and
  CEO

  

 

 

EXHIBIT A

 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

(ATTACHED)

 

 

ALIGN
TECHNOLOGY, INC.

 

EMPLOYEE
PROPRIETARY INFORMATION

AND INVENTIONS AGREEMENT

 

In
consideration of my employment or continued employment by ALIGN
TECHNOLOGY, INC. (the “Company”), and
the compensation now and hereafter paid to me, I hereby agree as follows:

 

1.             PROPRIETARY INFORMATION.  At
all times during my employment and thereafter, I will hold in strictest
confidence and will not disclose, use, lecture upon or publish any of the
Company’s Proprietary Information (defined below), except as such disclosure,
use or publication may be required in connection with my work for the Company,
or unless an officer of the Company expressly authorizes such in writing.  “Proprietary Information”
shall mean any and all confidential and/or proprietary knowledge, data or
information of the Company, its affiliated entities, customers and suppliers,
including but not limited to information relating to products, processes,
know-how, designs, formulas, methods, developmental or experimental work,
improvements, discoveries, inventions, ideas, source and object codes, data,
programs, other works of authorship, and plans for research and development.  During my employment by the Company I will
not improperly use or disclose any confidential information or trade secrets,
if any, of any former employer or any other person to whom I have an obligation
of confidentiality, and I will not bring onto the premises of the Company any
unpublished documents or any property belonging to any former employer or any
other person to whom I have an obligation of confidentiality unless consented
to in writing by that former employer or person.

 

2.             Assignment of Inventions.

 

2.1.         Proprietary Rights.  The term “Proprietary Rights”
shall mean all trade secret, patent, copyright, mask work and other
intellectual property rights throughout the world.

 

2.2.         Inventions. The term
“Inventions” shall mean all trade secrets, inventions, mask works, ideas,
processes, formulas, source and object codes, data, programs, other works of
authorship, know-how, improvements, discoveries, developments, designs and
techniques.

 

2.3.         Prior Inventions. I
have set forth on Exhibit B (Previous Inventions) attached hereto a
complete list of all Inventions that I have, alone or jointly with others, made
prior to the commencement of my employment with the Company that I consider to
be my property or the property of third parties and that I wish to have excluded
from the scope of this Agreement (collectively referred to as “Prior Inventions”). 
If no such disclosure is attached, I represent that there are no Prior
Inventions.  If, in the course of my
employment with the Company, I incorporate a Prior Invention into a Company
product, process or machine, the Company is hereby granted and shall have a
nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with
rights to sublicense through multiple tiers of sublicensees) to make, have
made, modify, use and sell such Prior Invention.  Notwithstanding the foregoing, I agree that I
will not incorporate, or permit to be incorporated, Prior Inventions in any
Company Inventions without the Company’s prior written consent.

 

2.4.         Assignment of Inventions.  Subject to Section 2.6 and
except for those Inventions which I can prove qualify fully under the
provisions of California Labor Code 2870 (as set forth in Exhibit A),
I hereby assign and agree to assign in the future (when any such Inventions or
Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all my right, title and interest in and
to any and all Inventions (and all Proprietary Rights with respect
thereto).  I will, at the Company’s
request, promptly execute a written assignment to the Company of any such
Company Invention, and I will preserve any such Invention as part of the
Proprietary Information of the Company (the “Company
Inventions”).

 

2.5.         Obligation to Keep Company Informed.  I will promptly and fully
disclose in writing to the Company all Inventions during my employment and for
one (1) year after my employment, including any that may be covered by Section 2870.  I agree to assist in every proper way and to
execute those documents and take such acts as are reasonably requested by the
Company to obtain,

 

 

sustain and from time to
time enforce patents, copyrights and other rights and protections relating to
Inventions in the United States or any other country.

 

2.6.         Government or Third Party.  I also agree to assign all my
right, title and interest in and to any particular Company Invention to a third
party, including without limitation the United States, as directed by the
Company.

 

3.             NO CONFLICTING OBLIGATION.  I REPRESENT that my performance of all the terms of this
Agreement and as an employee of the Company does not and will not breach any
agreement to keep in confidence information acquired by me in confidence or in
trust prior to my employment by the Company. 
I have not entered into, and I agree I will not enter into, any
agreement either written or oral in conflict herewith.

 

4.             RETURN OF COMPANY DOCUMENTS.  Upon
termination of my employment with the Company for any reason whatsoever,
voluntarily or involuntarily, and at any earlier time the Company requests, I
will deliver to the person designated by the Company all originals and copies
of all documents and other property of the Company in my possession, under my
control or to which I may have access.  I
will not reproduce or appropriate for my own use, or for the use of others, any
property, Proprietary Information or Company Inventions.

 

5.             LEGAL AND EQUITABLE REMEDIES. 
Because my services are personal and unique and because I may have
access to and become acquainted with the Proprietary Information of the
Company, the Company shall have the right to enforce this Agreement and any of
its provisions by injunction, specific performance or other equitable relief,
without bond and without prejudice to any other rights and remedies that the
Company may have for a breach of this Agreement.

 

6.             NOTICES.  Any
notices required or permitted hereunder shall be given to the appropriate party
at the address specified below or at such other address as the party shall
specify in writing.  Such notice shall be
deemed given upon personal delivery to the appropriate address or if sent by
certified or registered mail, three (3) days after the date of mailing.

 

7.             EMPLOYMENT.  I
agree and understand that nothing in this Agreement shall confer any right with
respect to continuation of employment by the Company, nor shall it interfere in
any way with my right or the Company’s right to terminate my employment at any
time, with or without cause.

 

GENERAL PROVISIONS.  This
Agreement will be governed by and construed according to the laws of the State
of California, as such laws are applied to agreements entered into and to be
performed entirely within California between California residents.  In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect the other provisions of this Agreement, and
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. 
This Agreement will be binding upon my heirs, executors, administrators
and other legal representatives and will be for the benefit of the Company, its
successors, and its assigns.  The provisions
of this Agreement shall survive the termination of my employment and the
assignment of this Agreement by the Company to any successor in interest or
other assignee.  No waiver by the Company
of any breach of this Agreement shall be a waiver of any preceding or
succeeding breach.  No waiver by the
Company of any right under this Agreement shall be construed as a waiver of any
other right.  The obligations pursuant to
Sections 1 and 2 of this Agreement shall apply to any time during which I was
previously employed, or am in the future employed, by the Company as a
consultant if no other agreement governs nondisclosure and assignment of
inventions during such period.  This
Agreement is the final, complete and exclusive agreement of the parties with respect
to the subject matter hereof and supersedes and merges all prior discussions
between us.  No modification of or
amendment to this Agreement, nor any waiver of any rights under this Agreement,
will be effective unless in writing and signed by the party to be charged.  Any subsequent change or changes in my
duties, salary or compensation will not affect the validity or scope of this
Agreement.

 

12

 

This Agreement shall be
effective as of the first day of my employment with the Company.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND AGREED TO:

  ALIGN TECHNOLOGY, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
											

 

13

 

EXHIBIT A

 

LIMITED EXCLUSION NOTIFICATION

 

THIS IS TO NOTIFY you in
accordance with Section 2872 of the California Labor Code that the
foregoing Agreement between you and the Company does not require you to assign
or offer to assign to the Company any invention that you developed entirely on
your own time without using the Company’s equipment, supplies, facilities or
trade secret information except for those inventions that either:

 

1.             Relate
at the time of conception or reduction to practice of the invention to the
Company’s business, or actual or demonstrably anticipated research or
development of the Company;

 

2.             Result
from any work performed by you for the Company.

 

To the extent a provision in the foregoing Agreement
purports to require you to assign an invention otherwise excluded from the
preceding paragraph, the provision is against the public policy of this state
and is unenforceable.

 

This limited
exclusion does not apply to any patent or invention covered by a contract
between the Company and the United States or any of its agencies requiring full
title to such patent or invention to be in the United States.

 

I ACKNOWLEDGE RECEIPT of a copy
of this notification.

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  (PRINTED NAME OF EMPLOYEE)

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
  WITNESSED BY:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (PRINTED NAME OF REPRESENTATIVE)

  	
   

  
						

 

A-1

 

EXHIBIT B

 

	
  TO:

  	
  ALIGN TECHNOLOGY, INC.

  
	
   

  	
   

  
	
  FROM:

  	
   

  	
   

  
	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  
	
   

  	
   

  
	
  SUBJECT:

  	
  Previous Inventions

  
				

 

 

1.             Except
as listed in Section 2 below, the following is a complete list of all
inventions or improvements relevant to the subject matter of my employment by ALIGN TECHNOLOGY, INC. (the “Company”)
that have been made or conceived or first reduced to practice by me alone or
jointly with others prior to my engagement by the Company:

 

	
  o

  	
   

  	
  No inventions or improvements.

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  See below:

  

 

 

 

o         Additional sheets
attached.

 

2.             Due
to a prior confidentiality agreement, I cannot complete the disclosure under Section 1
above with respect to inventions or improvements generally listed below, the
proprietary rights and duty of confidentiality with respect to which I owe to
the following party(ies):

 

	
  Invention
  or Improvement

  	
   

  	
  Party(ies)

  	
   

  	
  Relationship

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

o         Additional sheets
attached.

 

2

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