EX-10.4.1



 




EXHIBIT
10.4.1





Synacor, Inc.




2006 Stock Plan




Adopted on December 5, 2006




 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page
	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	 
	 
	 	 	 	 
	SECTION 6. Terms And Conditions Of Options
	 	 	3	 
	(a) Stock Option Agreement
	 	 	3	 
	(b) Number of Shares
	 	 	3	 
	(c) Exercise Price
	 	 	3	 
	(d) Exercisability
	 	 	3	 
	(e) Term
	 	 	3	 
	(f) Restrictions on Transfer of Shares
	 	 	3	 
	(g) Transferability of Options
	 	 	3	 
	(h) Withholding Taxes
	 	 	4	 
	(i) No Rights as a Stockholder
	 	 	4	 
	(j) Modification, Extension and Assumption of Options
	 	 	4	 
	 
	 	 	 	 
	SECTION 7. Payment For Shares
	 	 	4	 
	(a) General Rule
	 	 	4	 
	(b) Services Rendered
	 	 	4	 
	(c) Promissory Note
	 	 	4	 
	(d) Surrender of Stock
	 	 	4	 
	(e) Exercise/Sale
	 	 	5	 
	(f) Other Forms of Payment
	 	 	5	 
	 
	 	 	 	 
	SECTION 8. Adjustment Of Shares
	 	 	5	 
	(a) General
	 	 	5	 
	(b) Mergers and Consolidations
	 	 	5	 






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	SECTION 9. Securities Law Requirements
	 	 	6	 
	 
	 	 	 	 
	SECTION 10. No Retention Rights
	 	 	6	 
	 
	 	 	 	 
	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	 






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Synacor, Inc. 2006 Stock Plan




SECTION 1. ESTABLISHMENT AND PURPOSE.




          The purpose of the Plan is to offer selected persons 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.




          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 Nonstatutory Options or the direct award or sale of Shares. Only Employees shall be
eligible for the grant of ISOs.




          (b) Ten-Percent Stockholders. A person 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. Not more than 695,147 Shares may be issued under the Plan (subject to
Subsection (b) below and Section 8). All of these Shares may be issued upon the exercise of ISOs.
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. Shares offered under the Plan may be authorized
but unissued Shares or treasury Shares.




          (b) Additional Shares. In the event that Shares previously issued under the Plan are
reacquired by the Company, such Shares shall be added to the number of Shares then available for
issuance under the Plan. In the event that an outstanding Option or other right for any reason
expires or is canceled, the Shares allocable to the unexercised portion of such Option or other
right shall be added to the number of Shares then available for issuance under the Plan.




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


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provide
for accelerated vesting in the event of the Purchaser’s death, disability or retirement 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 any
Option 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). Subject to the preceding sentence, the Exercise
Price 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) Exercisability. Each Stock Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable. No Option shall be exercisable unless the
Optionee (i) has delivered an executed copy of the Stock Option Agreement to the Company or (ii)
otherwise agrees to be bound by the terms of the Stock Option Agreement. The Board of Directors
shall determine the exercisability provisions of any Stock Option Agreement at its sole discretion.




          (e) 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.




          (f) 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.




          (g) Transferability of Options. An Option shall be transferable by the Optionee only by (i) a
beneficiary designation, (ii) a will or (iii) the laws of descent and distribution, except as
provided in the next sentence. If the applicable Stock Option Agreement so provides, a
Nonstatutory Option shall also be transferable by gift or domestic relations order


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to a Family
Member of the Optionee. An ISO may be exercised during the lifetime of the Optionee only by the
Optionee or by the Optionee’s guardian or legal representative.




          (h) 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.




          (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.




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) 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.




          (c) Promissory Note. At the discretion of the Board of Directors, all or a portion of the
Purchase Price or Exercise Price (as the case may be) of Shares issued under the Plan may be paid
with a full-recourse promissory note. 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.




          (d) Surrender of Stock . At the discretion of the Board of Directors, 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 as of the date when the Option is exercised.




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          (e) Exercise/Sale. To the extent that a Stock Option Agreement so provides, and if Stock is
publicly traded, all or part of the Exercise Price and any withholding taxes may be paid 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.




          (f) Other Forms of Payment. To the extent that a Stock Purchase Agreement or Stock Option
Agreement so provides, the Purchase Price or Exercise Price of Shares issued under the Plan may be
paid in any other form permitted by the Delaware General Corporation Law, as amended.




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 combination or consolidation of the outstanding Stock into a lesser
number of Shares, a reclassification, or any other increase or decrease in the number of issued
shares of Stock effected without receipt of consideration by the Company, proportionate adjustments
shall automatically be made in each of (i) the number of Shares available for future grants under
Section 4, (ii) the number of Shares covered by each outstanding Option and (iii) the Exercise
Price under each outstanding Option. In the event of 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 recapitalization, a spin-off, or a similar occurrence, the Board of Directors
at its sole discretion may 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 Corporate
Transaction, all outstanding Shares acquired under the Plan and all outstanding Options shall be
subject to the agreement evidencing the Corporate Transaction, which does not have to provide that
all outstanding Options (or a portion thereof) be treated in an identical manner. Such agreement,
without the Optionees’ or Purchasers’ consent, may assign the Company’s right of repurchase with
respect to unvested and outstanding Shares to the Successor Corporation and such
assignment does not have to apply to the outstanding Shares in an identical manner. Such
agreement, without the Optionees’ consent, may provide for one or more of the following:





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




          (ii) The assumption of any such outstanding Options by the Successor
Corporation in a manner that complies with Section 424(a) of the Code (whether or
not such Options are ISOs). Assumption shall include a transaction in which the
Optionee would be entitled to receive upon exercise of the Option the same number
and kind of shares of stock or the same amount of property, cash or securities as
such Optionee would have been entitled to receive upon the occurrence of the
transaction if the Optionee had been, immediately prior to such



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transaction, the
holder of the number of Shares covered by the Option at such time, provided that if
such consideration received in the transaction is not solely common stock of the
Successor Corporation, the Company may, with the consent of the Successor
Corporation, provide for the consideration to be received upon exercise of the
Option to be solely common stock of the Successor Corporation equal to the Fair
Market Value of the per Share consideration received by holders of Stock in the
transaction.




          (iii) The substitution by the Successor Corporation of new options for any such
outstanding Options in a manner that complies with Section 424(a) of the Code
(whether or not such Options are ISOs).




          (iv) The cancellation of any such outstanding Options and a payment to the
Optionees equal to the excess of (A) the Fair Market Value of the Shares subject to
such Options (whether or not such Options are then exercisable or such Shares are
then vested) as of the closing date of such merger or consolidation over (B) their
Exercise Price. Such payment shall be made in the form of cash, cash equivalents,
or securities of the surviving corporation or its parent with a Fair Market Value
equal to the required amount. Such payment may be made in installments and may be
deferred until the date or dates when such Options would have become exercisable or
such Shares would have vested. Such payment may be subject to vesting based on the
Optionee’s continuing Service, provided that the vesting schedule shall not be less
favorable to the Optionee than the schedule under which such Options would have
become exercisable or such Shares would have vested. If the Exercise Price of the
Shares subject to such Options exceeds the Fair Market Value of such Shares, then
such Options may be cancelled without making a payment to the Optionees. For
purposes of this Paragraph (iv), the Fair Market Value of any security shall be
determined without regard to any vesting conditions that may apply to such security.



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.




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

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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. If
the stockholders fail to approve the Plan within 12 months after its adoption by the Board of
Directors, then any grants, exercises or sales that have already occurred under the Plan shall be
rescinded and no additional grants, exercises or sales shall thereafter be made under the Plan.
The Plan shall terminate automatically 10 years after the later of (i) the date when the Board of
Directors adopted the Plan or (ii) the date when the Board of Directors approved the most recent
increase in the number of Shares reserved under Section 4 that was also approved by the Company’s
stockholders. The Plan 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 shall be subject to the approval of the Company’s stockholders if it (i) increases the number
of Shares available for issuance under the Plan (except as provided in Section 8) or (ii)
materially changes the class of persons who are eligible for the grant of ISOs. Stockholder
approval shall not be required for any other amendment of the Plan. If the stockholders fail to
approve an increase in the number of Shares reserved under Section 4 within 12 months after its
adoption by the Board of Directors, then any grants, exercises or sales that have already occurred
in reliance on such increase shall be rescinded and no additional grants, exercises or sales shall
thereafter be made in reliance on such increase.




          (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 of Control” means a sale of all or substantially all of the Company’s assets, or
any merger or consolidation of the Company with or into another corporation other than a merger or
consolidation in which the holders of more than 50% of the shares of capital stock of the Company
outstanding immediately prior to such transaction continue to hold (either by the voting securities
remaining outstanding or by their being converted into voting securities of the surviving entity)
more than 50% of the total voting power represented by the voting securities of the Company, or
such surviving entity, outstanding immediately after such transaction.




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




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




          (e) “Company” shall mean Synacor, Inc., a Delaware corporation.




          (f) “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.




          (g) “Corporate Transaction” shall mean a sale of all or substantially all of the Company’s
assets, or a merger, consolidation or other capital reorganization of the Company with or into
another corporation and includes a Change of Control.




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




          (i) “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.




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




          (k) “Family Member” shall mean (i) any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships,
(ii) any person sharing the Optionee’s household (other than a tenant or employee), (iii) a trust
in which persons described in Clause (i) or (ii) have more than 50% of the beneficial interest,
(iv) a foundation in which persons described in Clause (i) or (ii) or the Optionee control the
management of assets and (v) any other entity in which persons described in Clause (i) or (ii) or
the Optionee own more than 50% of the voting interests.




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




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




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




          (o) “Optionee” shall mean a person who holds an Option.




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




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          (q) “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.




          (r) “Plan” shall mean this Synacor, Inc. 2006 Stock Plan.




          (s) “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.




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




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




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




          (w) “Stock” shall mean the Common Stock of the Company.




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




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




          (z) “Subsidiary” shall mean 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.




          (aa) “Successor Corporation” shall mean a successor corporation or a parent or subsidiary of
such successor corporation.





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