Common use of Additional Incentive Clause in Contracts

Additional Incentive. Effective July 1st, 2007, Employee will receive two option grants, one to purchase three hundred and twenty five thousand (325,000) Membership Units of GigOptix, and a second to purchase One Million (1,000,000) Membership Units of GigOptix in accordance with the Company’s Equity incentive Plan. The exercise price of both grants is $0.10 per unit. Vesting on the options to purchase 325,000 Membership Units will be based on performance objectives as established by the GigOptix Management Board for the 2007 period and Fund raising performance for the 2008 period. This option grant will also include an extension of the 90 days exercise period after termination as defined by the plan to five (5) years in recognition of participation in the 2007 Management Board without compensation. Vesting on the option to purchase 1,000,000 Membership Units will be pro-rated based on monthly continuous service over four (4) years and the exercise period after termination will be the standard 90 days, unless Management Board will approve different period.