Document:

exv10w1

 

    Exhibit 10.1

 

    RESTRICTIVE
    COVENANT AND CONFIDENTIALITY AGREEMENT

 

    In exchange for the mutual promises and consideration set forth
    below, this Restrictive Covenant and Confidentiality Agreement
    (“Agreement”) is entered into by and between the
    Federal Home Loan Mortgage Corporation (“Freddie Mac”
    or “Company”) and Rob Mailloux
    (“Executive”), effective on the date the Executive
    assigns a personal signature to page 6 of this Agreement.

 

    I.     Definitions

 

    The following terms shall have the meanings indicated when used
    in this Agreement.

 

    A.     Competitor: The following
    entities, and their respective parents, successors,
    subsidiaries, and affiliates are competitors: (i) Fannie
    Mae (ii) all Federal Home Loan Banks (including the Office
    of Finance); and (iii) such other entities to which
    Executive and the Company may agree in writing from time-to-time.

 

    B.     Confidential Information:
    Information or materials in written, oral, magnetic, digital,
    computer, photographic, optical, electronic, or other form,
    whether now existing or developed or created during the period
    of Executive’s employment with Freddie Mac, that
    constitutes trade secrets
    and/or
    proprietary or confidential information. This information
    includes, but is not limited to: (i) all information marked
    Proprietary or Confidential; (ii) information concerning
    the components, capabilities, and attributes of Freddie
    Mac’s business plans, methods, and strategies;
    (iii) information relating to tactics, plans, or strategies
    concerning shareholders, investors, pricing, investment,
    marketing, sales, trading, funding, hedging, modeling, sales and
    risk management; (iv) financial or tax information and
    analyses, including but not limited to, information concerning
    Freddie Mac’s capital structure and tax or financial
    planning; (v) confidential information about Freddie
    Mac’s customers, borrowers, employees, or others;
    (vi) pricing and quoting information, policies, procedures,
    and practices; (vii) confidential customer lists;
    (viii) proprietary algorithms; (ix) confidential
    contract terms; (x) confidential information concerning
    Freddie Mac’s policies, procedures, and practices or the
    way in which Freddie Mac does business; (xi) proprietary or
    confidential data bases, including their structure and content;
    (xii) proprietary Freddie Mac business software, including
    its design, specifications and documentation;
    (xiii) information about Freddie Mac products, programs,
    and services which has not yet been made public;
    (xiv) confidential information about Freddie Mac’s
    dealings with third parties, including dealers, customers,
    vendors, and regulators;
    and/or
    (xv) confidential information belonging to third parties to
    which Executive received access in connection with
    Executive’s employment with Freddie Mac. Confidential
    Information does not include general skills, experience, or
    knowledge acquired in connection with Executive’s
    employment with Freddie Mac that otherwise are generally known
    to the public or within the industry or trade in which Freddie
    Mac operates.

 

    C.     Severance: Cash
    compensation paid pursuant to Freddie Mac’s Severance
    Policy.

 

    2

 

    D.     Severance Policy: Freddie
    Mac
    Policy 3-254.1
    (Severance — Officers), or any subsequent and
    superceding severance policy.

 

    II.     Non-Competition

 

    Executive recognizes that as a result of Executive’s
    employment with Freddie Mac, Executive has access to and
    knowledge of critically sensitive Confidential Information, the
    improper disclosure or use of which would result in grave
    competitive harm to Freddie Mac. Therefore, Executive agrees
    that neither during Executive’s employment with Freddie
    Mac, nor for the twelve (12) months immediately following
    termination of Executive’s employment for any reason, will
    Executive consider offers of employment from, seek or accept
    employment with, or otherwise directly or indirectly provide
    professional services to any Competitor, if the Executive will
    be rendering duties, responsibilities or services for the
    Competitor that are of the type and nature rendered or performed
    by you during the past two years of your employment with Freddie
    Mac. Executive acknowledges and agrees that this covenant has
    unique, substantial and immeasurable value to Freddie Mac, that
    Executive has sufficient skills to provide a livelihood for
    Executive while this covenant remains in force, and that this
    covenant will not interfere with Executive’s ability to
    work consistent with Executive’s experience, training and
    education. This non-competition covenant applies regardless of
    whether Executive’s employment is terminated by Executive,
    by Freddie Mac, or by a joint decision.

 

    III.     Non-Solicitation and
    Non-Recruitment

 

    During Executive’s employment with Freddie Mac and for a
    period of twelve (12) months after Executive’s
    termination date, Executive will not solicit or recruit, attempt
    to solicit or recruit or assist another in soliciting or
    recruiting any Freddie Mac managerial employee (including
    manager-level, Executive-level, or officer-level employee) with
    whom Executive worked, or any employee whom Executive directly
    or indirectly supervised at Freddie Mac, to leave the
    employee’s employment with Freddie Mac for purposes of
    employment or for the rendering of professional services. This
    prohibition against solicitation does not apply if Freddie Mac
    has notified the employee being solicited or recruited that
    his/her
    employment with the Company will be terminated pursuant to a
    corporate reorganization or
    reduction-in-force.

 

    IV.     Treatment of
    Confidential Information

 

    A.     Non-Disclosure. Executive
    recognizes that Freddie Mac is engaged in an extremely
    competitive business and that, in the course of performing
    Executive’s job duties, Executive will have access to and
    gain knowledge about Confidential Information. Executive further
    recognizes the importance of carefully protecting this
    Confidential Information in order for Freddie Mac to compete
    successfully. Therefore, Executive agrees that Executive will
    neither divulge Confidential Information to any persons,
    including to other Freddie Mac employees who do not have a
    Freddie Mac business-related need to know, nor make use of the
    Confidential Information for the Executive’s own benefit or
    for the benefit of anyone else other than Freddie Mac. Executive
    further agrees to take all reasonable precautions to prevent the
    disclosure of Confidential Information to unauthorized persons
    or entities, and to comply with all Company policies,
    procedures, and instructions regarding the treatment of such
    information.

 

    3

 

    B.     Return of Materials.
    Executive agrees that upon termination of Executive’s
    employment with Freddie Mac for any reason whatsoever, Executive
    will deliver to Executive’s immediate supervisor all
    tangible materials embodying Confidential Information,
    including, but not limited to, any documentation, records,
    listings, notes, files, data, sketches, memoranda, models,
    accounts, reference materials, samples, machine-readable media,
    computer disks, tapes, and equipment which in any way relate to
    Confidential Information, whether developed by Executive or not.
    Executive further agrees not to retain any copies of any
    materials embodying Confidential Information.

 

    C.     Post-Termination
    Obligations. Executive agrees that after the termination of
    Executive’s employment for any reason, Executive will not
    use in any way whatsoever, nor disclose any Confidential
    Information learned or obtained in connection with
    Executive’s employment with Freddie Mac without first
    obtaining the written permission of the Executive Vice President
    of Human Resources of Freddie Mac. Executive further agrees
    that, in order to assure the continued confidentiality of the
    Confidential Information, Freddie Mac may correspond with
    Executive’s future employers to advise them generally of
    Executive’s exposure to and knowledge of Confidential
    Information, and Executive’s obligations and
    responsibilities regarding the Confidential Information.
    Executive understands and agrees that any such contact may
    include a request for assurance and confirmation from such
    employer(s) that Executive will not disclose Confidential
    Information to such employer(s), nor will such
    employer(s)
    permit any use whatsoever of the Confidential Information. To
    enable Freddie Mac to monitor compliance with the obligations
    imposed by this Agreement, Executive further agrees to inform in
    writing Freddie Mac’s Executive Vice President of Human
    Resources of the identity of Executive’s subsequent
    employer(s)
    and Executive’s prospective job title and responsibilities
    prior to beginning employment. Executive agrees that this notice
    requirement shall remain in effect for twelve (12) months
    following the termination of Executive’s Freddie Mac
    employment.

 

    D.     Ability to Enforce Agreement
    and Assist Government Investigations. Nothing in this
    Agreement prohibits or otherwise restricts you from:
    (1) making any disclosure of information required by law;
    (2) assisting any regulatory or law enforcement agency or
    legislative body to the extent you maintain a legal right to do
    so notwithstanding this Agreement; (3) filing, testifying,
    participating in or otherwise assisting in a proceeding relating
    to the alleged violation of any federal, state, or local law,
    regulation, or rule, to the extent you maintain a legal right to
    do so notwithstanding this Agreement; or (4) filing,
    testifying, participating in or otherwise assisting the
    Securities and Exchange Commission or any other proper authority
    in a proceeding relating to allegations of fraud.

 

    V.     Consideration Given to
    Executive

 

    In exchange for agreeing to be bound by the terms, conditions,
    and restrictions stated in this Agreement, Freddie Mac will
    provide the Executive with the following consideration, each of
    which itself is adequate consideration for Executive’s
    agreement to be bound by the provisions of this Agreement:

 

    A.     Employment. Executive
    will be employed by Freddie Mac as Senior Vice
    President — Corporate Controller & Principal
    Accounting Officer.

 

    4

 

    B.     Severance. Executive
    acknowledges that under Freddie Mac’s Severance Policy,
    Executive may be eligible to receive Severance upon termination
    of employment, the duration of which is within the discretion of
    Freddie Mac. In the event the Executive’s employment is
    terminated and the circumstances of the termination qualify the
    Executive for Severance under the Severance Policy, then the
    Executive shall receive severance pay in accordance with the
    Severance Policy in effect at the time of termination. The
    payment of severance pursuant to the terms of the Severance
    Policy and of this paragraph is contingent on Freddie Mac
    receiving, prior to payment, any required approval from the
    Director of the Federal Housing Finance Agency
    (“FHFA”), including required approval under any
    applicable statutes and regulations. The Severance payment
    provided by this Paragraph V (B) is in place of, and
    not in addition to, Severance to which Executive would otherwise
    be entitled under any other agreement between Executive and
    Freddie Mac.

 

    VI.     Reservation of Rights

 

    Executive agrees that nothing in this Agreement constitutes a
    contract or commitment by Freddie Mac to continue
    Executive’s employment in any job position for any period
    of time, nor does anything in this Agreement limit in any way
    Freddie Mac’s right to terminate Executive’s
    employment at any time for any reason.

 

    VII.     Compliance with the Code of
    Conduct and Corporate Policies & Procedures

 

    As a Freddie Mac employee, Executive will be subject to Freddie
    Mac’s Code of Conduct (“Code”) and to Corporate
    Policy 3-206,
    Personal Securities Investments Policy (“Policy”)
    that, among other things, limit the investment activities of
    Freddie Mac employees. Executive agrees to fully comply with the
    Code and the Policy, copies of which are enclosed for
    Executive’s review.

 

    Executive further agrees to be bound by, and comply fully with,
    his/her
    obligations under the Personal Securities Investments Policy.
    Executive agrees to consult with Freddie Mac’s Chief
    Compliance Officer as soon as practical prior to beginning
    employment about any investments that Executive or a
    “covered household member,” as that term is defined in
    the Policy, may have that may be prohibited by the Policy.
    Executive also agrees to disclose prior to beginning employment
    any other matter or situation that may create a conflict of
    interest as such term is defined in the Code.

 

    In addition, prior to beginning employment, Executive agrees to
    disclose to Freddie Mac’s Human Resources Division the
    terms of any employment, confidentiality or stock grant
    agreements to which Executive may currently be subject that may
    affect Executive’s future employment or recruiting
    activities so that Freddie Mac may ensure that Executive’s
    employment by Freddie Mac and conduct as a Freddie Mac employee
    are not inconsistent with any of their terms.

 

    VIII.    Absence of Any Conflict of
    Interest

 

    Executive represents that Executive does not have any
    confidential information, trade secrets or other proprietary
    information that Executive obtained as the result of
    Executive’s employment

 

    5

 

    with another employer that Executive will be using in
    Executive’s position at Freddie Mac. Executive also
    represents that Executive is not subject to any employment,
    confidentiality or stock grant agreements, or any other
    restrictions or limitations imposed by a prior employer, which
    would affect Executive’s ability to perform the duties and
    responsibilities for Freddie Mac in the job position offered,
    and further represents that Executive has provided Freddie Mac
    with copies of any such agreements or limitations so that
    Freddie Mac can make an independent judgment that
    Executive’s employment with Freddie Mac is not inconsistent
    with any of its terms.

 

    IX.    Enforcement

 

    A.     Executive acknowledges that
    Executive may be subject to discipline, up to and including
    termination of employment, for Executive’s breach or threat
    of breach of any provision of this Agreement.

 

    B.     Executive agrees that
    irreparable injury will result to Freddie Mac’s business
    interests in the event of breach or threatened breach of this
    Agreement, the full extent of Freddie Mac’s damages will be
    impossible to ascertain, and monetary damages will not be an
    adequate remedy for Freddie Mac. Therefore, Executive agrees
    that in the event of a breach or threat of breach of any
    provision(s)
    of this Agreement, Freddie Mac, in addition to any other relief
    available, shall be entitled to temporary, preliminary, and
    permanent equitable relief to restrain any such breach or threat
    of breach by Executive and all persons acting for
    and/or in
    concert with Executive, without the necessity of posting bond or
    security, which Executive expressly waives.

 

    C.     Executive agrees that each of
    Executive’s obligations specified in this Agreement is a
    separate and independent covenant, and that all of
    Executive’s obligations set forth herein shall survive any
    termination, for any reason, of Executive’s Freddie Mac
    employment. To the extent that any provision of this Agreement
    is determined by a court of competent jurisdiction to be
    unenforceable because it is overbroad, that provision shall be
    limited and enforced to the extent permitted by applicable law.
    Should any provision of this Agreement be declared or determined
    by any court of competent jurisdiction to be unenforceable or
    invalid under applicable law, the validity of the remaining
    obligations will not be affected thereby and only the
    unenforceable or invalid obligation will be deemed not to be a
    part of this Agreement.

 

    D.     This Agreement is governed by,
    and will be construed in accordance with, the laws of the
    Commonwealth of Virginia, without regard to its or any other
    jurisdiction’s conflict-of-law provisions. Executive agrees
    that any action related to or arising out of this Agreement
    shall be brought exclusively in the United States District Court
    for the Eastern District of Virginia, and Executive hereby
    irrevocably consents to personal jurisdiction and venue in such
    court and to service of process by United States Mail or express
    courier service in any such action.

 

    E.     If any dispute(s) arise(s)
    between Freddie Mac and Executive with respect to any matter
    which is the subject of this Agreement, the prevailing party in
    such
    dispute(s)
    shall be entitled to recover from the other party all of its
    costs and expenses, including its reasonable attorneys’
    fees.

 

    Executive has been advised to discuss all aspects of this
    Agreement with Executive’s private attorney. Executive
    acknowledges that Executive has carefully read and understands
    the

 

    6

 

    terms and provisions of this Agreement and that they are
    reasonable. Executive signs this Agreement voluntarily and
    accepts all obligations contained in this Agreement in exchange
    for the consideration to be given to Executive as outlined
    above, which Executive acknowledges is adequate and
    satisfactory, and which Executive further acknowledges Freddie
    Mac is not otherwise obligated to provide to Executive. Neither
    Freddie Mac nor its agents, representatives, directors, officers
    or employees have made any representations to Executive
    concerning the terms or effects of this Agreement, other than
    those contained in this Agreement.

 

	 	 	 	 	 	 	 
	

    By:

	
 
	
/s/ Robert Mailloux
	
 
	
    Date:
	
 
	
4/16/10

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	

    Rob MaillouxExhibit 10.1

 

TR
AQ WIRELESS, INC.

 

AMENDED
AND RESTATED

1999
STOCK PLAN

 

 

ADOPTED
ON OCTOBER 20, 1999

AMENDED
JULY 17, 2003

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page No.

  
	
   

  	
   

  
	
  SECTION 1. ESTABLISHMENT AND PURPOSE

  	
  1

  
	
   

  	
   

  
	
  SECTION 2. ADMINISTRATION

  	
  1

  
	
   

  	
   

  
	
  (a)

  	
  Committees
  of the Board of Directors

  	
  1

  
	
  (b)

  	
  Authority
  of the Board of Directors

  	
  1

  
	
   

  	
   

  
	
  SECTION 3. ELIGIBILITY

  	
  1

  
	
   

  	
   

  
	
  (a)

  	
  General
  Rule

  	
  1

  
	
  (b)

  	
  Ten-Percent
  Stockholders

  	
  1

  
	
   

  	
   

  
	
  SECTION 4. STOCK SUBJECT TO PLAN

  	
  2

  
	
   

  	
   

  
	
  (a)

  	
  Basic
  Limitation

  	
  2

  
	
  (b)

  	
  Additional
  Shares

  	
  2

  
	
   

  	
   

  
	
  SECTION 5. TERMS AND CONDITIONS OF AWARDS OR
  SALES

  	
  2

  
	
   

  	
   

  
	
  (a)

  	
  Stock
  Purchase Agreement

  	
  2

  
	
  (b)

  	
  Duration
  of Offers and Nontransferability of Rights

  	
  2

  
	
  (c)

  	
  Purchase
  Price

  	
  2

  
	
  (d)

  	
  Withholding
  Taxes

  	
  2

  
	
  (e)

  	
  Restrictions
  on Transfer of Shares

  	
  2

  
	
  (f)

  	
  Accelerated
  Vesting

  	
  3

  
	
   

  	
   

  
	
  SECTION 6. TERMS AND CONDITIONS OF OPTIONS

  	
  3

  
	
   

  	
   

  
	
  (a)

  	
  Stock
  Option Agreement

  	
  3

  
	
  (b)

  	
  Number
  of Shares

  	
  3

  
	
  (c)

  	
  Exercise
  Price

  	
  3

  
	
  (d)

  	
  Withholding
  Taxes

  	
  3

  
	
  (e)

  	
  Exercisability

  	
  3

  
	
  (f)

  	
  Accelerated
  Exercisability

  	
  4

  
	
  (g)

  	
  Term

  	
  4

  
	
  (h)

  	
  Nontransferability

  	
  4

  
	
  (i)

  	
  No
  Rights as a Stockholder

  	
  4

  
	
  (j)

  	
  Modification,
  Extension and Assumption of Options

  	
  4

  
	
  (k)

  	
  Restrictions
  on Transfer of Shares

  	
  4

  
	
  (l)

  	
  Accelerated
  Vesting

  	
  4

  
	
   

  	
   

  
	
  SECTION 7. PAYMENT FOR SHARES

  	
  5

  
	
   

  	
   

  
	
  (a)

  	
  General
  Rule

  	
  5

  

 

i

 

	
  (b)

  	
  Surrender
  of Stock

  	
  5

  
	
  (c)

  	
  Services
  Rendered

  	
  5

  
	
  (d)

  	
  Promissory
  Note

  	
  5

  
	
  (e)

  	
  Exercise/Sale

  	
  5

  
	
  (f)

  	
  Exercise/Pledge

  	
  5

  
	
   

  	
   

  
	
  SECTION 8. ADJUSTMENT OF SHARES

  	
  6

  
	
   

  	
   

  
	
  (a)

  	
  General

  	
  6

  
	
  (b)

  	
  Mergers
  and Consolidations

  	
  6

  
	
  (c)

  	
  Reservation
  of Rights

  	
  6

  
	
   

  	
   

  
	
  SECTION 9. SECURITIES LAW REQUIREMENTS

  	
  6

  
	
   

  	
   

  
	
  SECTION 10. NO RETENTION RIGHTS

  	
  7

  
	
   

  	
   

  
	
  SECTION 11. DURATION AND AMENDMENTS

  	
  7

  
	
   

  	
   

  
	
  (a)

  	
  Term
  of the Plan

  	
  7

  
	
  (b)

  	
  Right
  to Amend or Terminate the Plan

  	
  7

  
	
  (c)

  	
  Effect
  of Amendment or Termination

  	
  7

  
	
   

  	
   

  
	
  SECTION 12.
  DEFINITIONS

  	
  7

  

 

ii

 

TRAQ WIRELESS, INC.

AMENDED AND RESTATED 1999
STOCK PLAN

 

SECTION 1.  ESTABLISHMENT AND PURPOSE.

 

The purpose of the Plan is
to offer selected individuals an opportunity to acquire a proprietary interest
in the success of the Company, or to increase such interest, by purchasing
Shares of the Company’s Stock.  The Plan
provides both for the direct award or sale of Shares and for the grant of
Options to purchase Shares.  Options
granted under the Plan may include Nonstatutory Options as well as ISOs
intended to qualify under Section 422 of the Code.

 

Capitalized terms are
defined in Section 12.

 

SECTION 2.  ADMINISTRATION.

 

(a)           Committees of the Board of Directors.  The
Plan may be administered by one or more Committees.  Each Committee shall consist of one or more
members of the Board of Directors who have been appointed by the Board of
Directors.  Each Committee shall have
such authority and be responsible for such functions as the Board of Directors
has assigned to it.  If no Committee has
been appointed, the entire Board of Directors shall administer the Plan.  Any reference to the Board of Directors in
the Plan shall be construed as a reference to the Committee (if any) to whom
the Board of Directors has assigned a particular function.

 

(b)           Authority
of the Board of Directors.  Subject to the
provisions of the Plan, the Board of Directors shall have full authority and
discretion to take any actions it deems necessary or advisable for the
administration of the Plan.  All
decisions, interpretations and other actions of the Board of Directors shall be
final and binding on all Purchasers, all Optionees and all persons deriving
their rights from a Purchaser or Optionee.

 

SECTION 3.  ELIGIBILITY.

 

(a)           General Rule.  Only
Employees, Outside Directors and Consultants shall be eligible for the grant of
Options or the direct award or sale of Shares. 
Only Employees shall be eligible for the grant of ISOs.

 

(b)           Ten-Percent
Stockholders.  An individual
who owns more than 10% of the total combined voting power of all classes of
outstanding stock of the Company, its Parent or any of its Subsidiaries shall
not be eligible for the grant of an ISO unless (i) the Exercise Price is
at least 110% of the Fair Market Value of a Share on the date of grant and (ii) such
ISO by its terms is not exercisable after the expiration of five years from the
date of grant.  For purposes of this
Subsection (b), in determining stock ownership, the attribution rules of Section 424(d) of
the Code shall be applied.

 

 

SECTION 4.  STOCK SUBJECT TO PLAN.

 

(a)           Basic Limitation.  Shares
offered under the Plan may be authorized but unissued Shares or treasury
Shares.  The aggregate number of Shares
that may be issued under the Plan (upon exercise of Options or other rights to
acquire Shares) shall not exceed 5,168,858 Shares, subject to adjustment
pursuant to Section 8. The number of Shares that are subject to Options or
other rights outstanding at any time under the Plan shall not exceed the number
of Shares that then remain available for issuance under the Plan.  The Company, during the term of the Plan,
shall at all times reserve and keep available sufficient Shares to satisfy the
requirements of the Plan.

 

(b)           Additional
Shares.  In the event that any outstanding Option
or other right for any reason expires or is canceled or otherwise terminated,
the Shares allocable to the unexercised portion of such Option or other right
shall again be available for the purposes of the Plan.  In the event that Shares issued under the
Plan are reacquired by the Company pursuant to any forfeiture provision, right
of repurchase or right of first refusal, such Shares shall again be available
for the purposes of the Plan, except that the aggregate number of Shares which
may be issued upon the exercise of ISOs shall in no event exceed 5,168,858
Shares (subject to adjustment pursuant to Section 8).

 

SECTION 5.  TERMS AND CONDITIONS OF AWARDS OR SALES.

 

(a)           Stock Purchase Agreement.  Each
award or sale of Shares under the Plan (other than upon exercise of an Option)
shall be evidenced by a Stock Purchase Agreement between the Purchaser and the
Company.  Such award or sale shall be
subject to all applicable terms and conditions of the Plan and may be subject
to any other terms and conditions which are not inconsistent with the Plan and
which the Board of Directors deems appropriate for inclusion in a Stock
Purchase Agreement.  The provisions of
the various Stock Purchase Agreements entered into under the Plan need not be
identical.

 

(b)           Duration
of Offers and Nontransferability of Rights.  Any right to acquire Shares
under the Plan (other than an Option) shall automatically expire if not
exercised by the Purchaser within 30 days after the grant of such right was
communicated to the Purchaser by the Company. Such right shall not be
transferable and shall be exercisable only by the Purchaser to whom such right
was granted.

 

(c)           Purchase
Price.  The Purchase
Price of Shares to be offered under the Plan, if newly issued, shall not be
less than the par value of such Shares. 
Subject to the preceding sentence, the Purchase Price shall be
determined by the Board of Directors at its sole discretion.  The Purchase Price shall be payable in a form
described in Section 7.

 

(d)           Withholding
Taxes.  As a
condition to the purchase of Shares, the Purchaser shall make such arrangements
as the Board of Directors may require for the satisfaction of any federal,
state, local or foreign withholding tax obligations that may arise in
connection with such purchase.

 

(e)           Restrictions on Transfer of
Shares.  Any Shares awarded or sold
under the Plan shall be subject to such special forfeiture conditions, rights
of repurchase, rights of first refusal and other transfer restrictions as the
Board of Directors may determine.  Such
restrictions shall be set

 

2

 

forth in the applicable Stock
Purchase Agreement and shall apply in addition to any restrictions that may
apply to holders of Shares generally.

 

(f)            Accelerated
Vesting.  Unless the
applicable Stock Purchase Agreement provides otherwise, any right to repurchase
a Purchaser’s Shares at the original Purchase Price (if any) upon termination
of the Purchaser’s Service shall lapse and all of such Shares shall become vested
if (i) the Company is subject to a Change in Control before the Purchaser’s
Service terminates and (ii) the repurchase right is not assigned to the
entity that employs the Purchaser immediately after the Change in Control or to
its parent or subsidiary.  Further, the
Company’s right to repurchase any and all of a Purchaser’s Shares shall lapse
in the event (i) the Company is subject to a Change in Control and (ii) such
Purchaser is subject to an Involuntary Termination within 12 months following
such Change in Control.  A Stock Purchase
Agreement may also provide for accelerated vesting in the event of the Optionee’s
death or disability or other events.

 

SECTION 6.  TERMS AND CONDITIONS OF OPTIONS.

 

(a)           Stock Option Agreement.  Each
grant of an Option under the Plan shall be evidenced by a Stock Option
Agreement between the Optionee and the Company. 
Such Option shall be subject to all applicable terms and conditions of
the Plan and may be subject to any other terms and conditions which are not
inconsistent with the Plan and which the Board of Directors deems appropriate
for inclusion in a Stock Option Agreement. 
The provisions of the various Stock Option Agreements entered into under
the Plan need not be identical.

 

(b)           Number
of Shares.  Each Stock Option
Agreement shall specify the number of Shares that are subject to the Option and
shall provide for the adjustment of such number in accordance with Section 8.  The Stock Option Agreement shall also specify
whether the Option is an ISO or a Nonstatutory Option.

 

(c)           Exercise
Price.  Each Stock
Option Agreement shall specify the Exercise Price.  The Exercise Price of an ISO shall not be
less than 100% of the Fair Market Value of a Share on the date of grant, and a
higher percentage may be required by Section 3(b).  The Exercise Price of a Nonstatutory Option
to purchase newly issued Shares shall not be less than the par value of such
Shares.  Subject to the preceding two
sentences, the Exercise Price under an Option shall be determined by the Board
of Directors at its sole discretion.  The
Exercise Price shall be payable in a form described in Section 7.

 

(d)           Withholding
Taxes.  As a condition
to the exercise of an Option, the Optionee shall make such arrangements as the
Board of Directors may require for the satisfaction of any federal, state,
local or foreign withholding tax obligations that may arise in connection with
such exercise. The Optionee shall also make such arrangements as the Board of
Directors may require for the satisfaction of any federal, state, local or
foreign withholding tax obligations that may arise in connection with the
disposition of Shares acquired by exercising an Option.

 

(e)           Exercisability.  Each Stock Option Agreement shall specify the
date when all or any installment of the Option is to become exercisable.  The exercisability provisions of a Stock
Option Agreement shall be determined by the Board of Directors at its sole
discretion.

 

3

 

(f)            Accelerated
Exercisability. 
Unless the applicable Stock Option Agreement provides otherwise, all of
an Optionee’s Options shall become exercisable in full if (i) the Company
is subject to a Change in Control before the Optionee’s Service terminates, (ii) such
Options do not remain outstanding, (iii) such Options are not assumed by
the surviving corporation or its parent and (iv) the surviving corporation
or its parent does not substitute options with substantially the same terms for
such Options.  A Stock Option Agreement
may also provide for accelerated exercisability in the event of the Optionee’s
death, disability or retirement or other events.

 

(g)           Basic
Term.  The Stock Option
Agreement shall specify the term of the Option. 
The  term shall not exceed 10
years from the date of grant, and in the case of an ISO a shorter term may be
required by Section 3(b).  Subject
to the preceding sentence, the Board of Directors at its sole discretion shall
determine when an Option is to expire.  A
Stock Option Agreement may provide for expiration prior to the end of its term
in the event of the termination of the Optionee’s Service or death.

 

(h)           Nontransferability.  No Option shall be
transferable by the Optionee other than by beneficiary designation, will or the
laws of descent and distribution.  An
Option may be exercised during the lifetime of the Optionee only by the
Optionee or by the Optionee’s guardian or legal representative.  No Option or interest therein may be
transferred, assigned, pledged or hypothecated by the Optionee during the
Optionee’s lifetime, whether by operation of law or otherwise, or be made
subject to execution, attachment or similar process.

 

(i)            No
Rights as a Stockholder.  An Optionee, or
a transferee of an Optionee, shall have no rights as a stockholder with respect
to any Shares covered by the Optionee’s Option until such person becomes
entitled to receive such Shares by filing a notice of exercise and paying the
Exercise Price pursuant to the terms of such Option.

 

(j)            Modification,
Extension and Assumption of Options. 
Within the limitations of the Plan, the Board of Directors may modify,
extend or assume outstanding Options or may accept the cancellation of
outstanding Options (whether granted by the Company or another issuer) in
return for the grant of new Options for the same or a different number of
Shares and at the same or a different Exercise Price.  The foregoing notwithstanding, no
modification of an Option shall, without the consent of the Optionee, impair
the Optionee’s rights or increase the Optionee’s obligations under such Option.

 

(k)           Restrictions
on Transfer of Shares.  Any Shares
issued upon exercise of an Option shall be subject to such special forfeiture
conditions, rights of repurchase, rights of first refusal and other transfer
restrictions as the Board of Directors may determine.  Such restrictions shall be set forth in the
applicable Stock Option Agreement and shall apply in addition to any
restrictions that may apply to holders of Shares generally.

 

(l)            Accelerated
Vesting.  Unless the
applicable Stock Option Agreement provides otherwise, any right to repurchase
an Optionee’s Shares at the original Exercise Price upon termination of the
Optionee’s Service shall lapse and all of such Shares shall become vested if (i) the
Company is subject to a Change in Control before the Optionee’s Service
terminates and (ii) the repurchase right is not assigned to the entity
that employs the Optionee immediately after the Change in Control or to its
parent or subsidiary.  Further, the
Company’s right to repurchase

 

4

 

any and all of an Optionee’s
Shares shall lapse in the event (i) the Company is subject to a Change in
Control and (ii) such Optionee is subject to an Involuntary Termination
within 12 months following such Change in Control.  A Stock Option Agreement may also provide for
accelerated vesting in the event of the Optionee’s death or disability or other
events.

 

SECTION 7.  PAYMENT FOR SHARES.

 

(a)           General
Rule.  The entire
Purchase Price or Exercise Price of Shares issued under the Plan shall be
payable in cash or cash equivalents at the time when such Shares are purchased,
except as otherwise provided in this Section 7.

 

(b)           Surrender
of Stock.  To the extent
that a Stock Option Agreement so provides, all or any part of the Exercise
Price may be paid by surrendering, or attesting to the ownership of, Shares
that are already owned by the Optionee. 
Such Shares shall be surrendered to the Company in good form for
transfer and shall be valued at their Fair Market Value on the date when the
Option is exercised.  The Optionee shall
not surrender, or attest to the ownership of, Shares in payment of the Exercise
Price if such action would cause the  Company
to recognize compensation expense (or additional compensation expense) with
respect to the Option for financial reporting purposes.

 

(c)           Services
Rendered.  At the
discretion of the Board of Directors, Shares may be awarded under the Plan in
consideration of services rendered to the Company, a Parent or a Subsidiary
prior to the award.

 

(d)           Promissory
Note.  To the extent
that a Stock Option Agreement or Stock Purchase Agreement so provides, all or a
portion of the Exercise Price or Purchase Price (as the case may be) of Shares
issued under the Plan may be paid with a full-recourse promissory note.  However, the par value of the Shares, if
newly issued, shall be paid in cash or cash equivalents.  The Shares shall be pledged as security for
payment of the principal amount of the promissory note and interest
thereon.  The interest rate payable under
the terms of the promissory note shall not be less than the minimum rate (if
any) required to avoid the imputation of additional interest under the
Code.  Subject to the foregoing, the
Board of Directors (at its sole discretion) shall specify the term, interest
rate, amortization requirements (if any) and other provisions of such note.

 

(e)           Exercise/Sale.  To the extent that a Stock
Option Agreement so provides, and if Stock is publicly traded, payment may be
made all or in part by the delivery (on a form prescribed by the Company) of an
irrevocable direction to a securities broker approved by the Company to sell
Shares and to deliver all or part of the sales proceeds to the Company in
payment of all or part of the Exercise Price and any withholding taxes.

 

(f)            Exercise/Pledge.  To the extent that a Stock
Option Agreement so provides, and if Stock is publicly traded, payment may be
made all or in part by the delivery (on a form prescribed by the Company) of an
irrevocable direction to pledge Shares to a securities broker or lender
approved by the Company, as security for a loan, and to deliver all or part of
the loan proceeds to the Company in payment of all or part of the Exercise
Price and any withholding taxes.

 

5

 

SECTION 8.  ADJUSTMENT OF SHARES.

 

(a)           General.  In
the event of a subdivision of the outstanding Stock, a declaration of a
dividend payable in Shares, a declaration of an extraordinary dividend payable
in a form other than Shares in an amount that has a material effect on the Fair
Market Value of the Stock, a combination or consolidation of the outstanding
Stock into a lesser number of Shares, a recapitalization, a spin-off, a
reclassification or a similar occurrence, the Board of Directors shall make
appropriate adjustments in one or more of (i) the number of Shares
available for future grants under Section 4, (ii) the number of
Shares covered by each outstanding Option or (iii) the Exercise Price
under each outstanding Option.

 

(b)           Mergers
and Consolidations.  In the event
that the Company is a party to a merger or consolidation, outstanding Options
shall be subject to the agreement of merger or consolidation.  Such agreement, without the Optionees’
consent, may provide for:

 

(i)            The continuation of such outstanding
Options by the Company (if the Company is the surviving corporation);

 

(ii)           The assumption of the Plan and such
outstanding Options by the surviving corporation or its parent;

 

(iii)          The substitution by the surviving corporation
or its parent of options with substantially the same terms for such outstanding
Options; or

 

(iv)          The cancellation of such outstanding
Options without payment of any consideration.

 

(c)           Reservation
of Rights.  Except as
provided in this Section 8, an Optionee or Purchaser shall have no rights
by reason of (i) any subdivision or consolidation of shares of stock of
any class, (ii) the payment of any dividend or (iii) any other
increase or decrease in the number of shares of stock of any class.  Any issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any
class, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or Exercise Price of Shares subject to an Option.  The grant of an Option pursuant to the Plan
shall not affect in any way the right or power of the Company to make
adjustments, reclassifications, reorganizations or changes of its capital or
business structure, to merge or consolidate or to dissolve, liquidate, sell or
transfer all or any part of its business or assets.

 

SECTION 9.  SECURITIES LAW REQUIREMENTS.

 

Shares shall not be issued
under the Plan unless the issuance and delivery of such Shares comply with (or
are exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the rules and
regulations promulgated thereunder, state securities laws and regulations, and
the regulations of any stock exchange or other securities market on which the
Company’s securities may then be traded.

 

6

 

SECTION 10.  NO RETENTION RIGHTS.

 

Nothing in the Plan or in
any right or Option granted under the Plan shall confer upon the Purchaser or
Optionee any right to continue in Service for any period of specific duration
or interfere with or otherwise restrict in any way the rights of the Company
(or any Parent or Subsidiary employing or retaining the Purchaser or Optionee)
or of the Purchaser or Optionee, which rights are hereby expressly reserved by
each, to terminate his or her Service at any time and for any reason, with or
without cause.

 

SECTION 11.  DURATION AND AMENDMENTS.

 

(a)           Term of the Plan.  The
Plan, as set forth herein, shall become effective on the date of its adoption
by the Board of Directors, subject to the approval of the Company’s
stockholders.  In the event that the
stockholders fail to approve the Plan within 12 months after its adoption by
the Board of Directors, any grants of Options or sales or awards of Shares that
have already occurred shall be rescinded, and no additional grants, sales or
awards shall be made thereafter under the Plan. 
The Plan shall terminate automatically 10 years after its adoption by
the Board of Directors and may be terminated on any earlier date pursuant to
Subsection (b) below.

 

(b)           Right
to Amend or Terminate the Plan. 
The Board of Directors may amend, suspend or terminate the Plan at any
time and for any reason; provided, however, that any amendment of the Plan
which increases the number of Shares available for issuance under the Plan
(except as provided in Section 8), or which materially changes the class
of persons who are eligible for the grant of ISOs, shall be subject to the
approval of the Company’s stockholders. 
Stockholder approval shall not be required for any other amendment of
the Plan.

 

(c)           Effect
of Amendment or Termination.  No Shares shall
be issued or sold under the Plan after the termination thereof,  except upon exercise of an Option granted prior
to  such termination.  The termination of the Plan, or any amendment
thereof, shall not affect any Share previously issued or any Option previously
granted under the Plan.

 

SECTION 12.  DEFINITIONS.

 

(a)           “Board of Directors” shall
mean the Board of Directors of the Company, as constituted from time to time.

 

(b)           “Change in Control”
shall mean:

 

(i)            The consummation of a merger or
consolidation of the Company with or into another entity or any other corporate
reorganization, if persons who were not stockholders of the Company immediately
prior to such merger, consolidation or other reorganization own immediately
after such merger, consolidation or other reorganization 50% or more of the
voting power of the outstanding securities of each of (A) the continuing
or surviving entity and (B) any direct or indirect parent corporation of
such continuing or surviving entity; or

 

7

 

(ii)           The sale, transfer or other
disposition of all or substantially all of the Company’s assets.

 

A transaction shall not
constitute a Change in Control if its sole purpose is to change the state of
the Company’s incorporation or to create a holding company that will be owned
in substantially the same proportions by the persons who held the Company’s
securities immediately before such transaction.

 

(b)           “Code” shall mean the Internal
Revenue Code of 1986, as amended.

 

(c)           “Committee” shall mean a committee of the Board
of Directors, as described in Section 2(a).

 

(d)           “Company” shall mean Traq Wireless, Inc.,
a Delaware corporation.

 

(e)           “Consultant” shall mean a person who performs bona
fide services for the Company, a Parent or a Subsidiary as a consultant or
advisor, excluding Employees and Outside Directors.

 

(f)            “Employee” shall mean any individual who is a
common-law employee of the Company, a Parent or a Subsidiary.

 

(g)           “Exercise Price” shall mean the amount for which one
Share may be purchased upon exercise of an Option, as specified by the Board of
Directors in the applicable Stock Option Agreement.

 

(h)           “Fair Market Value” shall mean the fair market value of a
Share, as determined by the Board of Directors in good faith.  Such determination shall be conclusive and
binding on all persons.

 

(i)            “ISO” shall mean an employee incentive stock
option described in Section 422(b) of the Code.

 

(j)            “Involuntary Termination” shall mean the termination of the
Optionee’s or Purchaser’s Service by reason of:

 

(i)            The involuntary discharge of the
Optionee or Purchaser by the Company (or the Parent or Subsidiary employing him
or her) for reasons other than Cause; or

 

(ii)           The voluntary resignation of the
Optionee or Purchaser following (A) a change in his or her position with
the Company (or the Parent or Subsidiary employing him or her) that materially
reduces his or her level of authority or responsibility, (B) receipt of
notice that his or her principal workplace will be relocated more than 50 miles
or (C) a reduction in his or her compensation (including base salary and
participation in bonus or incentive programs based on corporate performance) by
more than 10%.

 

8

 

(k)           “Nonstatutory Option” shall mean a
stock option not described in Sections 422(b) or 423(b) of the Code.

 

(l)            “Option” shall mean an ISO or Nonstatutory Option granted under
the Plan and entitling the holder to purchase Shares.

 

(m)          “Optionee” shall mean an individual who holds an
Option.

 

(n)           “Outside Director” shall mean a member of the Board of
Directors who is not an Employee.

 

(o)           “Parent” shall mean any corporation (other
than the Company) in an unbroken chain of corporations ending with the Company,
if each of the corporations other than the Company owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.  A
corporation that attains the status of a Parent on a date after the adoption of
the Plan shall be considered a Parent commencing as of such date.

 

(p)           “Plan” shall mean this Traq Wireless, Inc.
1999 Stock Plan.

 

(q)           “Purchase Price” shall mean the consideration for
which one Share may be acquired under the Plan (other than upon exercise of an
Option), as specified by the Board of Directors.

 

(r)            “Purchaser” shall mean an individual to whom the
Board of Directors has offered the right to acquire Shares under the Plan
(other than upon exercise of an Option).

 

(s)            “Service” shall mean service as an Employee,
Outside Director or Consultant.

 

(t)            “Share” shall mean one share of Stock, as
adjusted in accordance with Section 8 (if applicable).

 

(u)           “Stock” shall mean the Common Stock of the
Company, with a par value of $0.001 per Share.

 

(v)           “Stock Option Agreement” shall mean the agreement between the
Company and an Optionee which contains the terms, conditions and restrictions
pertaining to the Optionee’s Option.

 

(w)          “Stock Purchase Agreement” shall mean the agreement between the
Company and a Purchaser who acquires Shares under the Plan which contains the
terms, conditions and restrictions pertaining to the acquisition of such
Shares.

 

(x)           “Subsidiary” means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company, if
each of the corporations other than the last corporation in the unbroken chain
owns stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.  A corporation that attains the status of a
Subsidiary on a date after the adoption of the Plan shall be considered a
Subsidiary commencing as of such date.

 

9

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