{"id":43551,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/restricted-stock-purchase-agreement-new-air-corp-and-david.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"restricted-stock-purchase-agreement-new-air-corp-and-david","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/planning\/restricted-stock-purchase-agreement-new-air-corp-and-david.html","title":{"rendered":"Restricted Stock Purchase Agreement &#8211; New Air Corp. and David Barger"},"content":{"rendered":"<pre>                               NEW AIR CORPORATION\n                       RESTRICTED STOCK PURCHASE AGREEMENT\n\n            AGREEMENT made as of this 18th day of September 1998, by and between\nNew Air Corporation, a Delaware corporation (the \"Corporation\"), and David\nBarger (the \"Purchaser\").\n\n            All capitalized terms in this Agreement shall have the meaning\nassigned to them in this Agreement or in the attached Appendix.\n\n      A. PURCHASE OF SHARES\n\n            1. PURCHASE. Purchaser hereby purchases 1,333 shares of Common Stock\n(the \"Purchased Shares\") at the purchase price of $25.96 per share (the\n\"Purchase Price\").\n\n            2. PAYMENT. Concurrently with the delivery of this Agreement to the\nCorporation, Purchaser shall pay the Purchase Price for the Purchased Shares in\ncash or cash equivalent and shall deliver a duly-executed blank Assignment\nSeparate from Certificate (in the form attached hereto as Exhibit I) with\nrespect to the Purchased Shares.\n\n            3. STOCKHOLDER RIGHTS. Until such time as the Corporation exercises\nthe Repurchase Right or the First Refusal Right, Purchaser (or any successor in\ninterest) shall have all stockholder rights (including voting, dividend and\nliquidation rights) with respect to the Purchased Shares, including the\nPurchased Shares held in escrow hereunder, subject, however, to the transfer\nrestrictions of Articles B and C.\n\n            4. DELIVERY OF CERTIFICATES. The certificates representing any\nPurchased Shares which are subject to the Repurchase Right shall be held in\nescrow in accordance with the provisions of this Agreement.\n\n      B. SECURITIES LAW COMPLIANCE\n\n            1. RESTRICTED SECURITIES. The Purchased Shares have not been\nregistered under the 1933 Act and are being issued to Purchaser in reliance upon\nthe exemption from such registration provided by Section 4(2) of the 1933 Act.\nPurchaser hereby confirms that Purchaser has been informed that the Purchased\nShares are restricted securities under the 1933 Act and may not be resold or\ntransferred unless the Purchased Shares are first registered under the Federal\nsecurities laws or unless an exemption from such registration is available.\nAccordingly, Purchaser hereby acknowledges that Purchaser is prepared to hold\nthe Purchased Shares for an indefinite period and that Purchaser is aware that\nSEC Rule 144 issued under the 1933 Act which exempts certain resales of\nunrestricted securities is not presently available to exempt the resale of the\nPurchased Shares from the registration requirements of the 1933 Act.\n\n\n            2. REPRESENTATIONS AND WARRANTIES OF PURCHASER. Purchaser hereby\nrepresents and warrants that:\n\n            (i) The Purchased Shares are being acquired for investment purposes\n      only for the Purchaser's own account, and not as a nominee or agent, and\n      not with a view to the resale or distribution of all or any part of the\n      Purchased Shares. Purchaser is prepared to hold the Purchased Shares for\n      an indefinite period and has no present intention of selling, granting any\n      participating interest in, or otherwise distributing any of the Purchased\n      Shares. Purchaser does not have any contract, undertaking, agreement or\n      arrangement with any person to sell, transfer or grant a participating\n      interest in, any of the Purchased Shares.\n\n            (ii) Purchaser has a preexisting personal or business relationship\n      with either the Corporation or certain Board members or officers of the\n      Corporation which is of a nature and duration sufficient to make Purchaser\n      aware of the character, business acumen and general business and financial\n      circumstances of the Corporation and\/or such Board members or officers. In\n      addition, Purchaser has been furnished with, and has had access to, such\n      information concerning the Corporation's business, management and\n      financial condition as he or she considers necessary or appropriate for\n      deciding whether to invest in the Purchased Shares, and Purchaser has had\n      an opportunity to ask questions and receive answers from the Corporation\n      regarding the terms and conditions of the issuance of the Purchased\n      Shares.\n\n            (iii) Purchaser is able to fend for him or herself in the\n      transactions contemplated by this Agreement, can bear the economic risk of\n      investment in the Purchased Shares and has such knowledge and experience\n      in financial or business matters to be capable of evaluating the merits\n      and risks of the investment in the Purchased Shares. Purchaser is fully\n      aware of: (i) the speculative nature of the investment in the Purchased\n      Shares; (ii) the financial risk involved; (iii) the lack of liquidity for\n      the Purchased Shares and (iv) the transfer restrictions and repurchase\n      rights applicable to the Purchased Shares.\n\n            3. DISPOSITION OF PURCHASED SHARES. Purchaser shall make no\ndisposition of the Purchased Shares (other than a Permitted Transfer) unless and\nuntil there is compliance with all of the following requirements:\n\n            (i) Purchaser shall have provided the Corporation with a written\n      summary of the terms and conditions of the proposed disposition.\n\n            (ii) Purchaser shall have complied with all requirements of this\n      Agreement applicable to the disposition of the Purchased Shares.\n\n            (iii) Purchaser shall have provided the Corporation with written\n      assurances, in form and substance satisfactory to the Corporation, that\n      (a) the proposed disposition does not require registration of the\n      Purchased Shares under \n\n\n                                       2\n\n\n      the 1933 Act or (b) all appropriate action necessary for compliance with\n      the registration requirements of the 1933 Act or any exemption from\n      registration available under the 1933 Act (including Rule 144) has been\n      taken.\n\n            The Corporation shall NOT be required (i) to transfer on its books\nany Purchased Shares which have been sold or transferred in violation of the\nprovisions of this Agreement OR (ii) to treat as the owner of the Purchased\nShares, or otherwise to accord voting, dividend or liquidation rights to, any\ntransferee to whom the Purchased Shares have been transferred in contravention\nof this Agreement.\n\n            4. RESTRICTIVE LEGENDS. The stock certificates for the Purchased\nShares shall be endorsed with one or more of the following restrictive legends\nand any legend required to be placed thereon by the applicable blue sky laws of\nany state:\n\n                  \"The shares represented by this certificate have not been\n      registered under the Securities Act of 1933. The shares may not be sold or\n      offered for sale in the absence of (a) an effective registration statement\n      for the shares under such Act, (b) a \"no action\" letter of the Securities\n      and Exchange Commission with respect to such sale or offer or (c)\n      satisfactory assurances to the Corporation that registration under such\n      Act is not required with respect to such sale or offer.\"\n\n                  \"The shares represented by this certificate are subject to\n      certain repurchase rights and rights of first refusal granted to the\n      Corporation and accordingly may not be sold, assigned, transferred,\n      encumbered, or in any manner disposed of except in conformity with the\n      terms of a written agreement dated September 18, 1998, between the\n      Corporation and the registered holder of the shares (or the predecessor in\n      interest to the shares). A copy of such agreement is maintained at the\n      Corporation's principal corporate offices.\"\n\n      C. TRANSFER RESTRICTIONS\n\n            1. RESTRICTION ON TRANSFER. Except for any Permitted Transfer,\nPurchaser shall not transfer, assign, encumber or otherwise dispose of any of\nthe Purchased Shares which are subject to the Repurchase Right. In addition,\nPurchased Shares which are released from the Repurchase Right shall not be\ntransferred, assigned, encumbered or otherwise disposed of in contravention of\nthe First Refusal Right or the Market Stand-Off.\n\n            2. TRANSFEREE OBLIGATIONS. Each person (other than the Corporation)\nto whom the Purchased Shares are transferred by means of a Permitted Transfer\nmust, as a condition precedent to the validity of such transfer, acknowledge in\nwriting to the Corporation that such person is bound by the provisions of this\nAgreement and that the transferred shares are subject to (i) the Repurchase\nRight, (ii) the First Refusal Right and (iii) the Market Stand-Off, to the same\nextent such shares would be so subject if retained by Purchaser.\n\n\n                                       3\n\n\n            3. MARKET STAND-OFF.\n\n                  (a) In connection with the Company's initial public offering\nof its equity securities pursuant to an effective registration statement filed\nunder the 1933 Act and in connection with any other underwritten public offering\nby the Corporation of its equity securities pursuant to an effective\nregistration statement filed under the 1933 Act during the period two years\nafter the effective date of such initial public offering, Owner shall not sell,\nmake any short sale of, loan, hypothecate, pledge, grant any option for the\npurchase of, or otherwise dispose or transfer for value or otherwise agree to\nengage in any of the foregoing transactions with respect to, any Purchased\nShares without the prior written consent of the Corporation or its underwriters.\nSuch restriction (the \"Market Stand-Off\") shall be in effect for such period of\ntime from and after the effective date of the final prospectus for the offering\nas may be requested by the Corporation or such underwriters. In no event,\nhowever, shall any single period exceed one hundred eighty (180) days from the\neffective date of any such public offering.\n\n                  (b) Owner shall be subject to the Market Stand-Off PROVIDED\nAND ONLY IF the officers and directors of the Corporation are also subject to\nsimilar restrictions.\n\n                  (c) Any new, substituted or additional securities which are by\nreason of any Recapitalization or Reorganization distributed with respect to the\nPurchased Shares shall be immediately subject to the Market Stand-Off, to the\nsame extent the Purchased Shares are at such time covered by such provisions.\n\n                  (d) In order to enforce the Market Stand-Off, the Corporation\nmay impose stop-transfer instructions with respect to the Purchased Shares until\nthe end of the applicable stand-off period.\n\n      D. REPURCHASE RIGHT\n\n            1. GRANT. The Corporation is hereby granted the right (the\n\"Repurchase Right\"), exercisable at any time during the sixty (60)-day period\nfollowing the date Purchaser ceases for any reason to remain in Service, to\nrepurchase at the Purchase Price any or all of the Purchased Shares in which\nPurchaser is not, at the time of his or her cessation of Service, vested in\naccordance with the provisions of the Vesting Schedule set forth in Paragraph\nD.3 or the special vesting acceleration provisions of Paragraph D.5 (such shares\nto be hereinafter referred to as the \"Unvested Shares\").\n\n            2. EXERCISE OF THE REPURCHASE RIGHT. The Repurchase Right shall be\nexercisable by written notice delivered to each Owner of the Unvested Shares\nprior to the expiration of the sixty (60)-day exercise period. The notice shall\nindicate the number of Unvested Shares to be repurchased and the date on which\nthe repurchase is to be effected, such date to be not more than thirty (30) days\nafter the date of such notice. The certificates representing the Unvested Shares\nto be repurchased shall be delivered to the Corporation on or before the close\nof business on the date specified for the repurchase. Concurrently with the\nreceipt of such stock certificates, the Corporation shall pay to Owner, in cash\nor cash equivalents \n\n\n                                       4\n\n\n(including the cancellation of any purchase-money indebtedness), an amount equal\nto the Purchase Price previously paid for the Unvested Shares which are to be\nrepurchased from Owner.\n\n            3. TERMINATION OF THE REPURCHASE RIGHT. The Repurchase Right shall\nterminate with respect to any Unvested Shares for which it is not timely\nexercised under Paragraph D.2. In addition, the Repurchase Right shall terminate\nand cease to be exercisable with respect to any and all Purchased Shares in\nwhich Purchaser vests in accordance with the following Vesting Schedule:\n\n                  Purchaser shall vest in the Purchased Shares, and the\n      Repurchase Right shall concurrently lapse with respect to those Purchased\n      Shares, in a series of five (5) successive equal annual installments upon\n      Purchaser's completion of each year of Service over the five (5) year\n      period measured from September 18, 1998.\n\n            All Purchased Shares as to which the Repurchase Right lapses shall,\nhowever, remain subject to (i) the First Refusal Right and (ii) the Market\nStand-Off.\n\n            4. RECAPITALIZATION. Any new, substituted or additional securities\nor other property (including cash paid other than as a regular cash dividend)\nwhich is by reason of any Recapitalization distributed with respect to the\nPurchased Shares shall be immediately subject to the Repurchase Right and any\nescrow requirements hereunder, but only to the extent the Purchased Shares are\nat the time covered by such right or escrow requirements. Appropriate\nadjustments to reflect such distribution shall be made to the number and\/or\nclass of Purchased Shares subject to this Agreement and to the price per share\nto be paid upon the exercise of the Repurchase Right in order to reflect the\neffect of any such Recapitalization upon the Corporation's capital structure;\nPROVIDED, however, that the aggregate purchase price shall remain the same.\n\n            5. SPECIAL ACCELERATION EVENTS.\n\n                  (a) The Repurchase Right shall automatically terminate in its\nentirety, and all the Purchased Shares shall vest in full, immediately prior to\nthe consummation of any Corporate Transaction.\n\n                  (b) The Repurchase Right shall automatically terminate in its\nentirety, and all Purchased Shares shall vest in full, immediately in the event\nthe Purchaser's employment with the Corporation or its affiliates is terminated\nby the Corporation without Cause.\n\n      E. RIGHT OF FIRST REFUSAL\n\n            1. GRANT. The Corporation is hereby granted the right of first\nrefusal (the \"First Refusal Right\"), exercisable in connection with any proposed\ntransfer of the Purchased Shares in which Purchaser has vested in accordance\nwith the provisions of Article D. For purposes of this \n\n\n                                       5\n\n\nArticle E, the term \"transfer\" shall include any sale, assignment, pledge,\nencumbrance or other disposition of the Purchased Shares intended to be made by\nOwner, but shall not include any Permitted Transfer.\n\n            2. NOTICE OF INTENDED DISPOSITION. In the event any Owner of\nPurchased Shares in which Purchaser has vested desires to accept a bona fide\nthird-party offer for the transfer of any or all of such shares (the Purchased\nShares subject to such offer to be hereinafter referred to as the \"Target\nShares\"), Owner shall promptly (i) deliver to the Corporation written notice\n(the \"Disposition Notice\") of the terms of the offer, including the purchase\nprice and the identity of the third-party offeror, and (ii) provide satisfactory\nproof that the disposition of the Target Shares to such third-party offeror\nwould not be in contravention of the provisions set forth in Articles B and C.\n\n            3. EXERCISE OF THE FIRST REFUSAL RIGHT. The Corporation shall, for a\nperiod of twenty-five (25) days following receipt of the Disposition Notice,\nhave the right to repurchase any or all of the Target Shares subject to the\nDisposition Notice upon the same terms as those specified therein or upon such\nother terms (not materially different from those specified in the Disposition\nNotice) to which Owner consents. Such right shall be exercisable by delivery of\nwritten notice (the \"Exercise Notice\") to Owner prior to the expiration of the\ntwenty-five (25)-day exercise period. If such right is exercised with respect to\nall the Target Shares, then the Corporation shall effect the repurchase of such\nshares, including payment of the purchase price, not more than five (5) business\ndays after delivery of the Exercise Notice; and at such time the certificates\nrepresenting the Target Shares shall be delivered to the Corporation.\n\n            Should the purchase price specified in the Disposition Notice be\npayable in property other than cash or evidences of indebtedness, the\nCorporation shall have the right to pay the purchase price in the form of cash\nequal in amount to the value of such property. If Owner and the Corporation\ncannot agree on such cash value within ten (10) days after the Corporation's\nreceipt of the Disposition Notice, the valuation shall be made by an appraiser\nof recognized standing selected by Owner and the Corporation or, if they cannot\nagree on an appraiser within twenty (20) days after the Corporation's receipt of\nthe Disposition Notice, each shall select an appraiser of recognized standing\nand the two (2) appraisers shall designate a third appraiser of recognized\nstanding, whose appraisal shall be determinative of such value. The cost of such\nappraisal shall be shared equally by Owner and the Corporation. The closing\nshall then be held on the LATER of (i) the fifth (5th) business day following\ndelivery of the Exercise Notice or (ii) the fifth (5th) business day after such\nvaluation shall have been made.\n\n            4. NON-EXERCISE OF THE FIRST REFUSAL RIGHT. In the event the\nExercise Notice is not given to Owner prior to the expiration of the twenty-five\n(25)-day exercise period, Owner shall have a period of thirty (30) days\nthereafter in which to sell or otherwise dispose of the Target Shares to the\nthird-party offeror identified in the Disposition Notice upon terms (including\nthe purchase price) no more favorable to such third-party offeror than those\nspecified in the Disposition Notice; PROVIDED, however, that any such sale or\ndisposition must not be effected in contravention of the provisions of Articles\nB and C. The third-party offeror shall acquire the Target Shares subject to the\nFirst Refusal Right and the provisions of Article B and Paragraph C.3. In the\nevent Owner does not effect such sale or disposition of the Target Shares \n\n\n                                       6\n\n\nwithin the specified thirty (30)-day period, the First Refusal Right shall\ncontinue to be applicable to any subsequent disposition of the Target Shares by\nOwner until such right lapses.\n\n            5. PARTIAL EXERCISE OF THE FIRST REFUSAL RIGHT. In the event the\nCorporation makes a timely exercise of the First Refusal Right with respect to a\nportion, but not all, of the Target Shares specified in the Disposition Notice,\nOwner shall have the option, exercisable by written notice to the Corporation\ndelivered within five (5) business days after Owner's receipt of the Exercise\nNotice, to effect the sale of the Target Shares pursuant to either of the\nfollowing alternatives:\n\n                        (i) sale or other disposition of all the Target Shares\n      to the third-party offeror identified in the Disposition Notice, but in\n      full compliance with the requirements of Paragraph E.4, as if the\n      Corporation did not exercise the First Refusal Right; or\n\n                        (ii) sale to the Corporation of the portion of the\n      Target Shares which the Corporation has elected to purchase, such sale to\n      be effected in substantial conformity with the provisions of Paragraph\n      E.3. The First Refusal Right shall continue to be applicable to any\n      subsequent disposition of the remaining Target Shares until such right\n      lapses.\n\n            Owner's failure to deliver timely notification to the Corporation\nshall be deemed to be an election by Owner to sell the Target Shares pursuant to\nalternative (i) above.\n\n            6. RECAPITALIZATION. Any new, substituted or additional securities\nor other property which is by reason of any Recapitalization distributed with\nrespect to the Purchased Shares shall be immediately subject to the First\nRefusal Right, but only to the extent the Purchased Shares are at the time\ncovered by such right.\n\n            7. LAPSE. The First Refusal Right shall lapse upon the EARLIEST to\noccur of (i) the first date on which shares of the Common Stock are held of\nrecord by more than five hundred (500) persons, (ii) a determination made by the\nBoard that a public market exists for the outstanding shares of Common Stock,\n(iii) a firm commitment underwritten public offering, pursuant to an effective\nregistration statement under the 1933 Act, covering the offer and sale of the\nCommon Stock or (iv) a Corporate Transaction. However, the Market Stand-Off\nshall continue to remain in full force and effect following the lapse of the\nFirst Refusal Right.\n\n      F. ESCROW.\n\n            1. DEPOSIT. Upon issuance, the certificates for the Purchased Shares\nwhich are subject to the Repurchase Right shall be deposited in escrow with the\nCorporation to be held in accordance with the provisions of this Article F. Each\ndeposited certificate shall be accompanied by a duly-executed Assignment\nSeparate from Certificate in the form of Exhibit I. The deposited certificates,\ntogether with any other assets or securities from time to time deposited with\nthe Corporation pursuant to the requirements of this Agreement, shall remain in\nescrow until such \n\n\n                                       7\n\n\ntime or times as the certificates (or other assets and securities) are to be\nreleased or otherwise surrendered for cancellation in accordance with Paragraph\nF.3. Upon delivery of the certificates (or other assets and securities) to the\nCorporation, Owner shall be issued a receipt acknowledging the number of\nPurchased Shares (or other assets and securities) delivered in escrow.\n\n            2. RECAPITALIZATION. Any new, substituted or additional securities\nor other property which is by reason of any Recapitalization distributed with\nrespect to the Purchased Shares shall be immediately delivered to the\nCorporation to be held in escrow under this Article F, but only to the extent\nthe Purchased Shares are at the time subject to the escrow requirements\nhereunder. However, all regular cash dividends on the Purchased Shares (or other\nsecurities at the time held in escrow) shall be paid directly to Owner and shall\nnot be held in escrow.\n\n            3. RELEASE\/SURRENDER. The Purchased Shares, together with any other\nassets or securities held in escrow hereunder, shall be subject to the following\nterms relating to their release from escrow or their surrender to the\nCorporation for repurchase and cancellation:\n\n            (i) Should the Corporation elect to exercise the Repurchase Right\n      with respect to any Unvested Shares, then the escrowed certificates for\n      those Unvested Shares (together with any other assets or securities\n      attributable thereto) shall be surrendered to the Corporation concurrently\n      with the payment to Owner of an amount equal to the aggregate Exercise\n      Price for such Unvested Shares, and Owner shall cease to have any further\n      rights or claims with respect to such Unvested Shares (or other assets or\n      securities attributable thereto).\n\n            (ii) Should the Corporation elect to exercise the First Refusal\n      Right with respect to any Target Shares held at the time in escrow\n      hereunder, then the escrowed certificates for those Target Shares\n      (together with any other assets or securities attributable thereto) shall\n      be surrendered to the Corporation concurrently with the payment of the\n      Paragraph E.3 purchase price for such Target Shares to Owner, and Owner\n      shall cease to have any further rights or claims with respect to such\n      Target Shares (or other assets or securities attributable thereto).\n\n            (iii) Should the Corporation elect NOT to exercise the Repurchase\n      Right with respect to any Unvested Shares or the First Refusal Right with\n      respect to any Target Shares held at the time in escrow hereunder, then\n      the escrowed certificates for those shares (together with any other assets\n      or securities attributable thereto) shall be immediately released to\n      Owner.\n\n            (iv) As the Purchased Shares (or any other assets or securities\n      attributable thereto) vest in accordance with the Vesting Schedule, the\n      certificates for those vested shares (as well as all other vested assets\n      and securities) shall be released from escrow upon Owner's request, but\n      not more frequently than once every six (6) months.\n\n\n                                       8\n\n\n            (v) All Purchased Shares which vest (and any other vested assets and\n      securities attributable thereto) shall be released within thirty (30) days\n      after the EARLIER to occur of (a) Optionee's cessation of Service or (b)\n      the lapse of the First Refusal Right.\n\n            (vi) All Purchased Shares (or other assets or securities) released\n      from escrow shall nevertheless remain subject to (a) the First Refusal\n      Right, to the extent such right has not otherwise lapsed and (b) the\n      Market Stand-Off, until such restriction terminates.\n\n      G. SPECIAL TAX ELECTION\n\n            1. SECTION 83(b) ELECTION . Under Code Section 83, the excess of the\nFair Market Value of the Purchased Shares on the date any forfeiture\nrestrictions applicable to such shares lapse over the Purchase Price paid for\nsuch shares will be reportable as ordinary income on the lapse date. For this\npurpose, the term \"forfeiture restrictions\" includes the right of the\nCorporation to repurchase the Purchased Shares pursuant to the Repurchase Right.\nPurchaser may elect under Code Section 83(b) to be taxed at the time the\nPurchased Shares are acquired, rather than when and as such Purchased Shares\ncease to be subject to such forfeiture restrictions. Such election must be filed\nwith the Internal Revenue Service within thirty (30) days after the date of this\nAgreement. Even if the Fair Market Value of the Purchased Shares on the date of\nthis Agreement equals the Purchase Price paid (and thus no tax is payable), the\nelection must be made to avoid adverse tax consequences in the future. THE FORM\nFOR MAKING THIS ELECTION IS ATTACHED AS EXHIBIT II HERETO. PURCHASER UNDERSTANDS\nTHAT FAILURE TO MAKE THIS FILING WITHIN THE APPLICABLE THIRTY (30)-DAY PERIOD\nWILL RESULT IN THE RECOGNITION OF ORDINARY INCOME AS THE FORFEITURE RESTRICTIONS\nLAPSE.\n\n            2. FILING RESPONSIBILITY. PURCHASER ACKNOWLEDGES THAT IT IS\nPURCHASER'S SOLE RESPONSIBILITY, AND NOT THE CORPORATION'S, TO FILE A TIMELY\nELECTION UNDER CODE SECTION 83(b), EVEN IF PURCHASER REQUESTS THE CORPORATION OR\nITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER BEHALF.\n\n      H. GENERAL PROVISIONS\n\n            1. ASSIGNMENT. The Corporation may assign the Repurchase Right\nand\/or the First Refusal Right to any person or entity selected by the Board,\nincluding (without limitation) one or more stockholders of the Corporation.\n\n            2. NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Agreement\nshall confer upon Purchaser any right to continue in Service for any period of\nspecific duration or interfere with or otherwise restrict in any way the rights\nof the Corporation (or any Parent or Subsidiary employing or retaining\nPurchaser) or of Purchaser, which rights are hereby expressly \n\n\n                                       9\n\n\nreserved by each, to terminate Purchaser's Service at any time for any reason,\nwith or without cause. If Purchaser and the Corporation have entered into an\nagreement with respect to Purchaser's rights to continue in Service, that\nagreement is set forth in a separate employment or consulting agreement with\nPurchaser.\n\n            3. NOTICES. Any notice required to be given under this Agreement\nshall be in writing and shall be deemed effective upon personal delivery or upon\ndeposit in the U.S. mail, registered or certified, postage prepaid and properly\naddressed to the party entitled to such notice at the address indicated below\nsuch party's signature line on this Agreement or at such other address as such\nparty may designate by ten (10) days advance written notice under this paragraph\nto all other parties to this Agreement.\n\n            4. NO WAIVER. The failure of the Corporation in any instance to\nexercise the Repurchase Right or the First Refusal Right shall not constitute a\nwaiver of any other repurchase rights and\/or rights of first refusal that may\nsubsequently arise under the provisions of this Agreement or any other agreement\nbetween the Corporation and Purchaser. No waiver of any breach or condition of\nthis Agreement shall be deemed to be a waiver of any other or subsequent breach\nor condition, whether of like or different nature.\n\n            5. CANCELLATION OF SHARES. If the Corporation shall make available,\nat the time and place and in the amount and form provided in this Agreement, the\nconsideration for the Purchased Shares to be repurchased in accordance with the\nprovisions of this Agreement, then from and after such time, the person from\nwhom such shares are to be repurchased shall no longer have any rights as a\nholder of such shares (other than the right to receive payment of such\nconsideration in accordance with this Agreement). Such shares shall be deemed\npurchased in accordance with the applicable provisions hereof, and the\nCorporation shall be deemed the owner and holder of such shares, whether or not\nthe certificates therefor have been delivered as required by this Agreement.\n\n      I. MISCELLANEOUS PROVISIONS\n\n            1. GOVERNING LAW. This Agreement shall be governed by, and construed\nin accordance with, the laws of the State of Delaware without resort to that\nState's conflict-of-laws rules.\n\n            2. PURCHASER UNDERTAKING. Purchaser hereby agrees to take whatever\nadditional action and execute whatever additional documents the Corporation may\ndeem necessary or advisable in order to carry out or effect one or more of the\nobligations or restrictions imposed on either Purchaser or the Purchased Shares\npursuant to the provisions of this Agreement.\n\n            3. AGREEMENT IS ENTIRE CONTRACT. This Agreement constitutes the\nentire contract between the parties hereto with regard to the subject matter\nhereof.\n\n\n                                       10\n\n\n            4. COUNTERPARTS. This Agreement may be executed in counterparts,\neach of which shall be deemed to be an original, but all of which together shall\nconstitute one and the same instrument.\n\n            5. SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall\ninure to the benefit of, and be binding upon, the Corporation and its successors\nand assigns and upon Purchaser, Purchaser's assigns and the legal\nrepresentatives, heirs and legatees of Purchaser's estate, whether or not any\nsuch person shall have become a party to this Agreement and have agreed in\nwriting to join herein and be bound by the terms hereof.\n\n\n                                       11\n\n\n            IN WITNESS WHEREOF, the parties have executed this Agreement on the\nday and year first indicated above.\n\n                               NEW AIR CORPORATION\n\n\n                               By:      \/s\/ David Neeleman\n                                        ----------------------------------------\n\n                               Title:   CEO\n                                        ----------------------------------------\n\n                               Address: \n                                        ----------------------------------------\n\n                                        ----------------------------------------\n\n                                        \/s\/ David Barger\n                                        ----------------------------------------\n                                        PURCHASER\n\n                                        NEW AIR \n\n                               Address: 711 Fourth Avenue, 14th floor\n                                        ----------------------------------------\n\n                                        New York, New York 10022\n                                        ----------------------------------------\n\n\n                                       12\n\n\n                             SPOUSAL ACKNOWLEDGMENT\n\n            The undersigned spouse of Purchaser has read and hereby approves the\nforegoing Restricted Stock Purchase Agreement. In consideration of the\nCorporation's granting Purchaser the right to acquire the Purchased Shares in\naccordance with the terms of such Agreement, the undersigned hereby agrees to be\nirrevocably bound by all the terms of such Agreement, including (without\nlimitation) the right of the Corporation (or its assigns) to purchase any\nPurchased Shares in which Purchaser is not vested at the time of his or her\ncessation of Service.\n\n\n                                                              n\/a\n                                                --------------------------------\n                                                PURCHASER'S SPOUSE\n\n                                       Address: _______________________________\n\n                                                _______________________________\n\n\n                                    EXHIBIT I\n\n                      ASSIGNMENT SEPARATE FROM CERTIFICATE\n\n            FOR VALUE RECEIVED ____________ hereby sell(s), assign(s) and\ntransfer(s) unto New Air Corporation (the \"Corporation\"), ______________ (_____)\nshares of the Common Stock of the Corporation standing in his or her name on the\nbooks of the Corporation represented by Certificate No. _______________ herewith\nand do(es) hereby irrevocably constitute and appoint _________________ Attorney\nto transfer the said stock on the books of the Corporation with full power of\nsubstitution in the premises.\n\nDated: ___________\n\n\n                                        Signature \/s\/ David Barger\n                                                 -------------------------------\n\nINSTRUCTION: Please do not fill in any blanks other than the signature line.\nPlease sign exactly as you would like your name to appear on the issued stock\ncertificate. The purpose of this assignment is to enable the Corporation to\nexercise the Repurchase Right without requiring additional signatures on the\npart of Purchaser.\n\n\n\n                                   EXHIBIT II\n\n                           SECTION 83(b) TAX ELECTION\n\n\n\n                           SECTION 83(b) TAX ELECTION\n\nThis statement is being made under Section 83(b) of the Internal Revenue Code,\npursuant to Treas. Reg. Section 1.83-2.\n\n(1)   The taxpayer who performed the services is:\n\n      Name:\n      Address:\n      Taxpayer Ident. No.:\n\n(2)   The property with respect to which the election is being made is\n      ______________ shares of the common stock of New Air Corporation.\n\n(3)   The property was issued on September 18, 1998.\n\n(4)   The taxable year in which the election is being made is the calendar year\n      1998.\n\n(5)   The property is subject to a repurchase right pursuant to which the issuer\n      has the right to acquire the property at the original purchase price if\n      for any reason taxpayer's service with the issuer terminates. The issuer's\n      repurchase right lapses in a series of annual installments over a five\n      (5)-year period ending on September 18, 2003.\n\n(6)   The fair market value at the time of transfer (determined without regard\n      to any restriction other than a restriction which by its terms will never\n      lapse) is $25.96 per share.\n\n(7)   The amount paid for such property is $25.96 per share.\n\n(8)   A copy of this statement was furnished to New Air Corporation for whom\n      taxpayer rendered the services underlying the transfer of property.\n\n(9)   This statement is executed on September __, 1998.\n\n\n__________________________________      ________________________________________\nSpouse (if any)                          Taxpayer\n\nTHIS ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE CENTER WITH WHICH\nTAXPAYER FILES HIS OR HER FEDERAL INCOME TAX RETURNS AND MUST BE MADE WITHIN\nTHIRTY (30) DAYS AFTER THE EXECUTION DATE OF THE RESTRICTED STOCK PURCHASE\nAGREEMENT. THIS FILING SHOULD BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN\nRECEIPT REQUESTED. PURCHASER MUST RETAIN TWO (2) COPIES OF THE COMPLETED FORM\nFOR FILING WITH HIS OR HER FEDERAL AND STATE TAX RETURNS FOR THE CURRENT TAX\nYEAR AND AN ADDITIONAL COPY FOR HIS OR HER RECORDS.\n\n\n\n                                    APPENDIX\n\n        The following definitions shall be in effect under the Agreement:\n\n      A. AGREEMENT shall mean this Restricted Stock Purchase Agreement.\n\n      B. BOARD shall mean the Corporation's Board of Directors.\n\n      C. CAUSE shall mean\n\n                        (i) the conviction or plea of nolo contendere of\n      Purchaser of any felony or any crime involving moral turpitude or\n      dishonesty;\n\n                        (ii) participation by Purchaser in a fraud or act of\n      dishonesty against the Corporation which adversely affects the Corporation\n      in a material way;\n\n                        (iii) willful breach by Purchaser of the Corporation's\n      policies which adversely affects the Corporation in a material way;\n\n                        (iv) Purchaser's causing intentional damage to the\n      Corporation's property or business;\n\n                        (v) conduct by Purchaser which constitutes gross\n      insubordination or incompetence;\n\n                        (vi) habitual neglect by Purchaser of his duties with\n      the Corporation; or\n\n                        (vii) conduct by Purchaser which demonstrates gross\n      unfitness to serve including alcoholism or substance abuse;\n\nPROVIDED THAT the action or conduct described in clauses (iii), (v) and (vii)\nabove will constitute \"Cause\" only if such action or conduct continues after the\nCorporation has provided Purchaser with written notice thereof and a reasonable\nopportunity (to be not less than 30 days nor more than 60 days) to the cure the\nsame.\n\n      D. CODE shall mean the Internal Revenue Code of 1986, as amended.\n\n      E. COMMON STOCK shall mean the Corporation's common stock.\n\n      F. CORPORATE TRANSACTION shall mean any of the following transactions:\n\n                        (i) a merger, consolidation or reorganization in which\n      the Corporation is a party in which the stockholders of the Corporation\n      before such \n\n\n                                      A-1\n\n\n      merger, consolidation or reorganization do not retain at least a majority\n      of the total combined voting power of the Corporation's (or any successor\n      corporation's) outstanding securities after such transaction, or\n\n                        (ii) the direct or indirect sale or exchange by the\n      Corporation's stockholders of the Company of securities representing more\n      than fifty percent (50%) of the total combined voting power of the\n      Corporation's outstanding securities, or\n\n                        (iii) the sale, transfer or other disposition of all or\n      substantially all of the Corporation's assets.\n\n      G. CORPORATION shall mean New Air Corporation, a Delaware corporation, and\nany successor corporation to all or substantially all of the assets or voting\nstock of New Air Corporation.\n\n      H. DISPOSITION NOTICE shall have the meaning assigned to such term in\nParagraph E.2.\n\n      I. EXERCISE NOTICE shall have the meaning assigned to such term in\nParagraph E.3.\n\n      J. FAIR MARKET VALUE of a share of Common Stock on any relevant date,\nprior to the initial public offering of the Common Stock, shall be determined by\nthe Board after taking into account such factors as it shall deem appropriate.\n\n      K. FIRST REFUSAL RIGHT shall mean the right granted to the Corporation in\naccordance with Article E.\n\n      L. MARKET STAND-OFF shall mean the market stand-off restriction specified\nin Paragraph C.3.\n\n      M. 1933 ACT shall mean the Securities Act of 1933, as amended.\n\n      N. OWNER shall mean Purchaser and all subsequent holders of the Purchased\nShares who derive their chain of ownership through a Permitted Transfer from\nPurchaser.\n\n      O. PARENT shall mean any corporation (other than the Corporation) in an\nunbroken chain of corporations ending with the Corporation, provided each\ncorporation in the unbroken chain (other than the Corporation) owns, at the time\nof the determination, stock possessing fifty percent (50%) or more of the total\ncombined voting power of all classes of stock in one of the other corporations\nin such chain.\n\n      P. PERMITTED TRANSFER shall mean (i) a gratuitous transfer of the\nPurchased Shares, PROVIDED AND ONLY IF Purchaser obtains the Corporation's prior\nwritten consent to such transfer, (ii) a transfer of title to the Purchased\nShares effected pursuant to Purchaser's will or the laws of intestate succession\nfollowing Purchaser's death or (iii) a transfer to the Corporation in pledge as\nsecurity for any purchase-money indebtedness incurred by Purchaser in connection\nwith the acquisition of the Purchased Shares.\n\n\n                                      A-2\n\n\n      Q. PURCHASE PRICE shall have the meaning assigned to such term in\nParagraph A.1.\n\n      R. PURCHASED SHARES shall have the meaning assigned to such term in\nParagraph A.1.\n\n      S. PURCHASER shall mean the person to whom shares are issued under this\nAgreement.\n\n      T. RECAPITALIZATION shall mean any stock split, stock dividend,\nrecapitalization, combination of shares, exchange of shares or other change\naffecting the Corporation's outstanding Common Stock as a class without the\nCorporation's receipt of consideration.\n\n      U. REPURCHASE RIGHT shall mean the right granted to the Corporation in\naccordance with Article D.\n\n      V. SEC shall mean the Securities and Exchange Commission.\n\n      W. SERVICE shall mean the Purchaser's performance of services for the\nCorporation (or any Parent or Subsidiary) in the capacity of an employee,\nsubject to the control and direction of the employer entity as to both the work\nto be performed and the manner and method of performance.\n\n      X. SUBSIDIARY shall mean any corporation (other than the Corporation) in\nan unbroken chain of corporations beginning with the Corporation, provided each\ncorporation (other than the last corporation) in the unbroken chain owns, at the\ntime of the determination, stock possessing fifty percent (50%) or more of the\ntotal combined voting power of all classes of stock in one of the other\ncorporations in such chain.\n\n      Y. TARGET SHARES shall have the meaning assigned to such term in Paragraph\nE.2.\n\n      Z. VESTING SCHEDULE shall mean the vesting schedule specified in Paragraph\nD.3 pursuant to which Purchaser is to vest in the Purchased Shares in a series\nof installments over the Purchaser's period of Service.\n\n      AA. UNVESTED SHARES shall have the meaning assigned to such term in\nParagraph D.1.\n\n\n                                      A-3\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7939],"corporate_contracts_industries":[9521],"corporate_contracts_types":[9622,9627],"class_list":["post-43551","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-jetblue-airways-corp","corporate_contracts_industries-transportation__air","corporate_contracts_types-planning","corporate_contracts_types-planning__purchase"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/43551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=43551"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=43551"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=43551"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=43551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}