Applied Semantics, Inc. 1999 Stock Option/Stock Issuance Plan, as amended



 Exhibit 10.03.1 
 APPLIED SEMANTICS, INC. 
 1999 STOCK OPTION/STOCK ISSUANCE PLAN 
 As amended on December 7, 2005 
 ARTICLE ONE 
 GENERAL PROVISIONS 
 I. PURPOSE OF THE PLAN 
 This 1999 Stock Option/Stock Issuance Plan is intended to promote the
interests of Applied Semantics, Inc. (previously, “Oingo, Inc.”), a California corporation, by providing eligible persons in the Corporation’s employ or service with the opportunity to acquire a proprietary interest, or otherwise
increase their proprietary interest, in the Corporation as an incentive for them to continue in such employ or service. 
 Capitalized terms
herein shall have the meanings assigned to such terms in the attached Appendix. 
 II. STRUCTURE OF THE PLAN 
 A. The Plan shall be divided into two (2) separate equity programs: 
 (i) the Option Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase
shares of Common Stock, and 
 (ii) the Stock Issuance Program under which eligible persons may, at the discretion of the Plan
Administrator, be issued shares of Common Stock directly, either through the immediate purchase of such shares or as a bonus for services rendered the Corporation (or any Parent or Subsidiary). 
 B. The provisions of Articles One and Four shall apply to both equity programs under the Plan and shall accordingly govern the interests of all persons
under the Plan. 
 III. ADMINISTRATION OF THE PLAN 
 A. The Plan shall be administered by the Board. However, any or all administrative functions otherwise exercisable by the Board may be delegated to the Committee. Members of the Committee shall serve for such period
of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time terminate the functions of the Committee and reassume all powers and authority previously delegated to the Committee.








 B. The Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to
establish such rules and regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue such interpretations of, the Plan and any outstanding options or stock issuances thereunder as it
may deem necessary or advisable. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any option grant or stock issuance thereunder. 
 IV. ELIGIBILITY 
 A. The persons
eligible to participate in the Plan are as follows: 
 (i) Employees, 
 (ii) non-employee members of the Board or the non-employee members of the board of directors of any Parent or Subsidiary, and 

(iii) consultants and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary). 
 B. The Plan Administrator shall have full authority to determine, (i) with respect to the grants made under the Option Grant Program, which eligible
persons are to receive such grants, the time or times when those grants are to be made, the number of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or a Non-Statutory Option, the time or
times when each option is to become exercisable, the vesting schedule (if any) applicable to the option shares and the maximum term for which the option is to remain outstanding, and (ii) with respect to stock issuances made under the Stock
Issuance Program, which eligible persons are to receive such issuances, the time or times when those issuances are to be made, the number of shares to be issued to each Participant, the vesting schedule (if any) applicable to the issued shares and
the consideration to be paid by the Participant for such shares. 
 C. The Plan Administrator shall have the absolute discretion either to
grant options in accordance with the Option Grant Program or to effect stock issuances in accordance with the Stock Issuance Program. 
 V. STOCK SUBJECT TO THE PLAN 
 A. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired
Common Stock. The maximum number of shares of Common Stock which may be issued over the term of the Plan shall not exceed 6,001,662 shares (taking into account the Corporation’s 2-for-1 stock split on February 15, 2001). 
 B. Shares of Common Stock subject to outstanding options shall be available for subsequent issuance under the Plan to the extent (i) the options
expire or terminate for any reason prior to exercise in full or (ii) the options are cancelled in accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and subsequently repurchased by the
Corporation, at the option exercise or direct issue price paid per share, pursuant to the Corporation’s repurchase rights under the Plan shall be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall
accordingly be available for reissuance through one or more subsequent option grants or direct stock issuances under the Plan. 
  

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 C. Should any change be made to the Common Stock by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum
number and/or class of securities issuable under the Plan and (ii) the number and/or class of securities and the exercise price per share in effect under each outstanding option in order to prevent the dilution or enlargement of benefits
thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of one or more outstanding shares of the Corporation’s
preferred stock into shares of Common Stock. 
  

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 ARTICLE TWO 
 OPTION GRANT PROGRAM 
 I. OPTION TERMS 
 Each option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided, however, that each such document shall
comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to such options. 
 A. Exercise Price. 
 1. The exercise price per share shall be fixed by the Plan Administrator in accordance with the following provisions: 
 (i) The exercise price per share shall not be less than eighty-five percent (85%) of the Fair Market Value per share of Common Stock on the option grant date. 
 (ii) If the person to whom the option is granted is a 10% Stockholder, then the exercise price per share shall not be less than one
hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date. 
 2. The exercise price shall
become immediately due upon exercise of the option and shall, subject to the provisions of Section I of Article Four and the documents evidencing the option, be payable in cash or check made payable to the Corporation. Should the Common Stock be
registered under Section 12 of the 1934 Act at the time the option is exercised, then the exercise price may also be paid as follows: 
 (i) in shares of Common Stock held for the requisite period necessary to avoid a charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, or

 (ii) to the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to
which the Optionee shall concurrently provide irrevocable instructions (A) to a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the
settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Corporation by reason of such exercise
and (B) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 
 Except to the extent such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date. 
  

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 B. Exercise and Term of Options. Each option shall be exercisable at such time or times,
during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option grant. However, no option shall have a term in excess of ten (10) years measured from the
option grant date. 
 C. Effect of Termination of Service. 
 1. The following provisions shall govern the exercise of any options held by the Optionee at the time of cessation of Service or death: 
 (i) Should the Optionee cease to remain in Service for any reason other than death, Disability or Misconduct, then the Optionee shall
have a period of three (3) months following the date of such cessation of Service during which to exercise each outstanding option held by such Optionee. 
 (ii) Should Optionee’s Service terminate by reason of Disability, then the Optionee shall have a period of twelve (12) months
following the date of such cessation of Service during which to exercise each outstanding option held by such Optionee. 
 (iii) If the Optionee dies while holding an outstanding option, then the personal representative of his or her estate or the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws of inheritance
or the Optionee’s designated beneficiary or beneficiaries of that option shall have a twelve (12)-month period following the date of the Optionee’s death to exercise such option. 
 (iv) Under no circumstances, however, shall any such option be exercisable after the specified expiration of the option term. 

(v) During the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of
vested shares for which the option is exercisable on the date of the Optionee’s cessation of Service. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and
cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee’s cessation of Service, terminate and cease to be outstanding with respect to any and all option
shares for which the option is not otherwise at the time exercisable or in which the Optionee is not otherwise at that time vested. 
 (vi) Should Optionee’s Service be terminated for Misconduct or should Optionee otherwise engage in Misconduct while holding one or more outstanding options under the Plan, then all those options shall terminate immediately and cease to
remain outstanding. 
 2. The Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any
time while the option remains outstanding, to: 
 (i) extend the period of time for which the option is to remain exercisable
following Optionee’s cessation of Service or death from the limited period otherwise in effect for that option to such greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option
term, and/or 
  

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 (ii) permit the option to be exercised, during the applicable post-Service exercise
period, not only with respect to the number of vested shares of Common Stock for which such option is exercisable at the time of the Optionee’s cessation of Service but also with respect to one or more additional installments in which the
Optionee would have vested under the option had the Optionee continued in Service. 
 D. Stockholder Rights. The holder of an
option shall have no stockholder rights with respect to the shares subject to the option until such person shall have exercised the option, paid the exercise price and become the recordholder of the purchased shares. 
 E. Unvested Shares. The Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common
Stock. Should the Optionee cease Service while holding such unvested shares, the Corporation shall have the right to repurchase, at the exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right
shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right. The
Plan Administrator may not impose a vesting schedule upon any option grant or the shares of Common Stock subject to that option which is more restrictive than twenty percent (20%) per year vesting, with the initial vesting to occur not later
than one (1) year after the option grant date. However, such limitation shall not be applicable to any option grants made to individuals who are officers of the Corporation, non-employee Board members or independent consultants. 
 F. First Refusal Rights. Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation
shall have the right of first refusal with respect to any proposed disposition by the Optionee (or any successor in interest) of any shares of Common Stock issued under the Plan. Such right of first refusal shall be exercisable in accordance with
the terms established by the Plan Administrator and set forth in the document evidencing such right. 
 G. Limited Transferability of
Options. An Incentive Stock Option shall be exercisable only by the Optionee during his or her lifetime and shall not be assignable or transferable other than by will or by the laws of inheritance following the Optionee’s death. A
Non-Statutory Option may be assigned in whole or in part during the Optionee’s lifetime to one or more members of the Optionee’s family or to a trust established exclusively for one or more such family members or to Optionee’s former
spouse, to the extent such assignment is in connection with the Optionee’s estate plan or pursuant to a domestic relations order. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the
Non-Statutory Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for the option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as
the Plan Administrator may deem appropriate. Notwithstanding the foregoing, the Optionee may also designate one or more persons as the beneficiary or beneficiaries of his or her outstanding options under the Plan, and those options shall, in
accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s death while holding those options. Such beneficiary or beneficiaries shall take the transferred options subject to all the
terms and conditions of the applicable agreement evidencing each such transferred option, including (without limitation) the limited time period during which the option may be exercised following the Optionee’s death. 
  

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 H. Advance Election to Exercise Option. An Optionee may make an election which will require
an Option, or any portion thereof, to the extent such Option (1) was granted prior to August 19, 2004, (2) was unvested as of December 31, 2004 and (3) was not exercised prior to December 31, 2005, to be exercised in
whole, or in part, pursuant to an election authorized by this Section H. 
 1. Calendar Year Election. An Optionee may make an
election to exercise an Option, or any portion thereof, in any calendar year after the calendar year in which the Optionee makes such election, provided, however, that the calendar year selected is not after the expiration of the Option pursuant to
its term as specified in Section B above. 
 2. Short Term Deferral Election. An Optionee may make an election to exercise an
Option, or any portion thereof, by March 15th of the calendar year after the calendar year in which such
Option, or portion thereof, vests. 
 3. Automatic Exercise of Options. Once made, the Optionee may not accelerate the year of
exercise specified in any election made pursuant to this Section H, and the Option, or portion thereof, must be exercised in the elected period. If the Option, or any portion thereof, is not exercised by the Optionee prior to the end of the
applicable period specified by any election, then the Option shall be exercised, or cancelled as applicable, automatically on the “Automatic Exercise Date” (described in this Section H(3)). The Automatic Exercise Date for Options subject
to a Calendar Year Election shall be the last trading day on or prior to December 31st of the applicable
calendar year. The Automatic Exercise Date for Options subject to a Short Term Deferral Election shall be the last trading day on or prior to March 15th of the year following the year in which such Option vested. Only those Options which are
“in-the-money” on the Automatic Exercise Date will be exercised pursuant to the Optionee’s election and this Section H(3). Any Option which is not “in-the-money” on the applicable Automatic Exercise Date will (1) not be
automatically exercised and (2) terminate automatically, as of such applicable Automatic Exercise Date. An Option will be considered “in-the-money” for purposes of this Section H(3) if it has an exercise price which is less than the
Fair Market Value of a share of Stock on the applicable Automatic Exercise Date. This automatic exercise shall be done pursuant to the cashless exercise procedure authorized by the terms of the Plan and all of the Shares covered by the applicable
Option shall be sold and a portion of the cash proceeds from such sale shall be remitted to the Corporation in an amount necessary to pay the applicable exercise price of such Options and the Optionee’s associated tax withholding obligation.
The net cash remaining after this automatic exercise shall be deposited to the Optionee’s brokerage account maintained by the Corporation’s stock plan administrator. 
 4. Impact of Termination of Service Provider Status on Elections. Notwithstanding the foregoing, in the event of the Optionee’s
termination of employment with the Corporation prior to the exercise of any Option pursuant to an election made under this Section H, then the Optionee’s election shall be automatically cancelled as of the date of such Optionee’s
termination of employment. 
 5. Post-Termination Exercise Period for Options Subjected to Cancelled Elections. Any Option, or
portion thereof, which again becomes exercisable as a result of the automatic cancellation of an exercise election pursuant to Section H(4), shall thereafter be exercisable and remain outstanding only to the extent authorized by its original terms
and conditions as of the date of the automatic cancellation of the election, provided, however, that as a condition to making any such election under this Section H, the Optionee must acknowledge and agree that in the event any such Option, or
portion thereof, is not exercised by the Optionee (if applicable under its terms) by, as applicable, December 31st of the year of the automatic cancellation of this election (with respect to any Calendar Year Election) or by March 15th of
the year after such Options vested (with respect to any Short Term Deferral Election), the Optionee understands and acknowledges that such Option, or portion thereof, will be forfeited. 
  

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 6. Terms and Conditions of Exercise Elections. Any election made pursuant to this Section
H must be made in a manner and pursuant to the terms and conditions approved by the Corporation, and in no event may elections be made after any date authorized by requirements relating to the administration of stock option plans under U.S. state
corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted (hereinafter “Applicable Law”). In order for an election to become effective, the
Optionee must provide the Corporation with an executed election, on a form approved by the Corporation, pursuant to the applicable procedures established by the Corporation. The Corporation reserves, at any and all times, the right, in the
Corporation’s sole and absolute discretion, (A) to decline to approve or (B) to terminate or amend any program or procedures for authorizing any Optionee to make such election to exercise Options pursuant to this Section H, provided
however, that any valid election made by an Optionee prior to the date of the Corporation’s termination or amendment of such a program or procedures shall remain effective. 
 7. Cancellation of Elections. Notwithstanding any other provision of the Plan or any applicable valid election entered into by any
Optionee pursuant to this Section H, in the event that a change in Applicable Law occurs prior to the exercise of Options under any election, and such change in Applicable Law results in (1) the revocation of the unfavorable tax impacts
required by Section 409A of the Code or (2) the postponement or delay in the effective date of Section 409A of the Code (as determined in the sole discretion of the Corporation), then with respect to any such Option, all elections
made by Optionee’s under this Section H shall be either automatically revoked and rescinded to the extent authorized by such change in the Applicable Law or, with the consent of the Optionee amended to comply with such changes in Applicable
Law. The determination of the impact of any changes in Applicable Law to this Section H, and the procedures to implement such changes, shall be made in the sole and absolute discretion of the Corporation. 
 II. INCENTIVE OPTIONS 
 The terms
specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically
designated as Non-Statutory Options shall not be subject to the terms of this Section II. 
 A. Eligibility. Incentive Options
may only be granted to Employees. 
 B. Exercise Price. The exercise price per share shall not be less than one hundred percent
(100%) of the Fair Market Value per share of Common Stock on the option grant date. 
 C. Dollar Limitation. The aggregate
Fair Market Value of the shares of Common Stock (determined as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary)
may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become
exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted. 
  

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 D. 10% Stockholder. If any Employee to whom an Incentive Option is granted is a 10%
Stockholder, then the option term shall not exceed five (5) years measured from the option grant date. 
 III. CORPORATE TRANSACTION

 A. The shares subject to each option outstanding under the Plan at the time of a Corporate Transaction shall automatically vest in full
so that each such option shall, immediately prior to the effective date of the Corporate Transaction, become exercisable for all of the shares of Common Stock at the time subject to that option and may be exercised for any or all of those shares as
fully-vested shares of Common Stock. However, the shares subject to an outstanding option shall not vest on such an accelerated basis if and to the extent: (i) such option is assumed by the successor corporation (or parent thereof) in
the Corporate Transaction and any repurchase rights of the Corporation with respect to the unvested option shares are concurrently assigned to such successor corporation (or parent thereof) or (ii) such option is to be replaced with a cash
incentive program of the successor corporation which preserves the spread existing on the unvested option shares at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to
those unvested option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Plan Administrator at the time of the option grant. 
 B. All outstanding repurchase rights shall also terminate automatically, and the shares of Common Stock subject to those terminated rights shall
immediately vest in full, in the event of any Corporate Transaction, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) in connection with such Corporate Transaction or (ii) such
accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 
 C.
Immediately following the consummation of the Corporate Transaction, all outstanding options shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof). 
 D. Each option which is assumed in connection with a Corporate Transaction shall be appropriately adjusted, immediately after such Corporate Transaction,
to apply to the number and class of securities which would have been issuable to the Optionee in consummation of such Corporate Transaction, had the option been exercised immediately prior to such Corporate Transaction. Appropriate adjustments shall
also be made to (i) the number and class of securities available for issuance under the Plan following the consummation of such Corporate Transaction and (ii) the exercise price payable per share under each outstanding option,
provided the aggregate exercise price payable for such securities shall remain the same. To the extent the actual holders of the Corporation’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of
the Corporate Transaction, the successor corporation may, in connection with the assumption of the outstanding options under this Plan, substitute one or more shares of its own common stock with a fair market value equivalent to the cash
consideration paid per share of Common Stock in such Corporate Transaction. 
 E. The Plan Administrator shall have the discretion,
exercisable either at the time the option is granted or at any time while the option remains outstanding, to structure one or more options so that those options shall automatically accelerate and vest in full (and any repurchase rights of the
Corporation with respect to the unvested shares subject to those options shall immediately terminate) upon the occurrence of a Corporate Transaction, whether or not those options are to be assumed in the Corporate Transaction. 
  

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 F. The Plan Administrator shall also have full power and authority, exercisable either at the time the
option is granted or at any time while the option remains outstanding, to structure such option so that the shares subject to that option will automatically vest on an accelerated basis should the Optionee’s Service terminate by reason of an
Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the effective date of any Corporate Transaction in which the option is assumed and the repurchase rights applicable to those shares do not
otherwise terminate. Any option so accelerated shall remain exercisable for the fully-vested option shares until the expiration or sooner termination of the option term. In addition, the Plan Administrator may provide that one or more of the
Corporation’s outstanding repurchase rights with respect to shares held by the Optionee at the time of such Involuntary Termination shall immediately terminate on an accelerated basis, and the shares subject to those terminated rights shall
accordingly vest at that time. 
 G. The portion of any Incentive Option accelerated in connection with a Corporate Transaction shall remain
exercisable as an Incentive Option only to the extent the applicable One Hundred Thousand Dollar limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a
Non-Statutory Option under the Federal tax laws. 
 H. The grant of options under the Plan shall in no way affect the right of the
Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 IV. CANCELLATION AND REGRANT OF OPTIONS 
 The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the affected option holders, the cancellation of any or all outstanding options under the Plan and to grant in substitution
therefor new options covering the same or different number of shares of Common Stock but with an exercise price per share based on the Fair Market Value per share of Common Stock on the new option grant date. 
  

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 ARTICLE THREE 
 STOCK ISSUANCE PROGRAM 
 I. STOCK ISSUANCE TERMS 
 Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each
such stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. 
 A. Purchase
Price. 
 1. The purchase price per share shall be fixed by the Plan Administrator but shall not be less than eighty-five percent
(85%) of the Fair Market Value per share of Common Stock on the issue date. However, the purchase price per share of Common Stock issued to a 10% Stockholder shall not be less than one hundred and ten percent (110%) of such Fair Market
Value. 
 2. Subject to the provisions of Section I of Article Four, shares of Common Stock may be issued under the Stock Issuance Program
for any of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance: 
 (i) cash or check made payable to the Corporation, or 
 (ii) past services rendered to the Corporation (or any
Parent or Subsidiary). 
 B. Vesting Provisions. 
 1. Shares of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and immediately vested upon issuance or may vest in one or more installments over the
Participant’s period of Service or upon attainment of specified performance objectives. However, the Plan Administrator may not impose a vesting schedule upon any stock issuance effected under the Stock Issuance Program which is more
restrictive than twenty percent (20%) per year vesting, with initial vesting to occur not later than one (1) year after the issuance date. Such limitation shall not apply to any Common Stock issuances made to the officers of the
Corporation, non-employee Board members or independent consultants. 
 2. Any new, substituted or additional securities or other property
(including money paid other than as a regular cash dividend) which the Participant may have the right to receive with respect to the Participant’s unvested shares of Common Stock by reason of any stock dividend, stock split, recapitalization,
combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration shall be issued subject to (i) the same vesting requirements applicable to the
Participant’s unvested shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate. 
 3. The Participant shall have full stockholder rights with respect to any shares of Common Stock issued to the Participant under the Stock Issuance Program, whether or not the Participant’s interest in those shares is vested.
Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such shares. 
  

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 4. Should the Participant cease to remain in Service while holding one or more unvested shares of Common
Stock issued under the Stock Issuance Program or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall be immediately surrendered to the Corporation for
cancellation, and the Participant shall have no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash or cash equivalent (including the
Participant’s purchase-money indebtedness), the Corporation shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance of any outstanding purchase-money note of the
Participant attributable to such surrendered shares. 
 5. The Plan Administrator may in its discretion waive the surrender and cancellation
of one or more unvested shares of Common Stock (or other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable to those shares. Such waiver shall result in the immediate vesting of the
Participant’s interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation of Service or the attainment or non-attainment of the
applicable performance objectives. 
 6. First Refusal Rights. Until such time as the Common Stock is first registered under
Section 12 of the 1934 Act, the Corporation shall have the right of first refusal with respect to any proposed disposition by the Participant (or any successor in interest) of any shares of Common Stock issued under the Stock Issuance Program.
Such right of first refusal shall be exercisable in accordance with the terms established by the Plan Administrator and set forth in the document evidencing such right. 
 II. CORPORATE TRANSACTION 
 A. Upon the occurrence of a Corporate Transaction, all outstanding
repurchase rights under the Stock Issuance Program shall terminate automatically, and the shares of Common Stock subject to those terminated rights shall immediately vest in full, except to the extent: (i) those repurchase rights are assigned
to the successor corporation (or parent thereof) in connection with such Corporate Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued.

 B. The Plan Administrator shall have the discretionary authority, exercisable either at the time the unvested shares are issued or any
time while the Corporation’s repurchase rights with respect to those shares remain outstanding, to provide that those rights shall automatically terminate on an accelerated basis, and the shares of Common Stock subject to those terminated
rights shall immediately vest, in the event the Participant’s Service should subsequently terminate by reason of an Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the effective date of any
Corporate Transaction in which those repurchase rights are assigned to the successor corporation (or parent thereof). 
 III. SHARE
ESCROW/LEGENDS 
 Unvested shares may, in the Plan Administrator’s discretion, be held in escrow by the Corporation until the
Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested shares. 
  

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 ARTICLE FOUR 
 MISCELLANEOUS 
 I. FINANCING 
 The Plan Administrator may permit any Optionee or Participant to pay the option exercise price under the Option Grant Program or the purchase price for
shares issued under the Stock Issuance Program by delivering a full-recourse, interest bearing promissory note payable in one or more installments and secured by the purchased shares. However, any promissory note delivered by a consultant must be
secured by collateral in addition to the purchased shares of Common Stock. In no event may the maximum credit available to the Optionee or Participant exceed the sum of (i) the aggregate option exercise price or purchase price payable for the
purchased shares plus (ii) any Federal, state and local income and employment tax liability incurred by the Optionee or the Participant in connection with the option exercise or share purchase. 
 II. EFFECTIVE DATE AND TERM OF PLAN 
 A. The Plan shall become effective when adopted by the Board, but no option granted under the Plan may be exercised, and no shares shall be issued under the Plan, until the Plan is approved by the Corporation’s stockholders. If such
stockholder approval is not obtained within twelve (12) months after the date of the Board’s adoption of the Plan, then all options previously granted under the Plan shall terminate and cease to be outstanding, and no further options shall
be granted and no shares shall be issued under the Plan. Subject to such limitation, the Plan Administrator may grant options and issue shares under the Plan at any time after the effective date of the Plan and before the date fixed herein for
termination of the Plan. 
 B. The Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured
from the date the Plan is adopted by the Board, (ii) the date on which all shares available for issuance under the Plan shall have been issued as vested shares or (iii) the termination of all outstanding options in connection with a
Corporate Transaction. All options and unvested stock issuances outstanding at the time of a clause (i) termination event shall continue to have full force and effect in accordance with the provisions of the documents evidencing those options
or issuances. 
 III. AMENDMENT OF THE PLAN 
 A. The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall adversely affect the rights and obligations with
respect to options or unvested stock issuances at the time outstanding under the Plan unless the Optionee or the Participant consents to such amendment or modification. In addition, certain amendments may require stockholder approval pursuant to
applicable laws and regulations. 
 B. Options may be granted under the Option Grant Program and shares may be issued under the Stock
Issuance Program which are in each instance in excess of the number of shares of Common Stock then available for issuance under the Plan, provided any excess shares actually issued under those programs shall be held in escrow until there is obtained
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) months after the date the first 

 

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 such excess grants or issuances are made, then (i) any unexercised options granted on the basis of such excess
shares shall terminate and cease to be outstanding and (ii) the Corporation shall promptly refund to the Optionees and the Participants the exercise or purchase price paid for any excess shares issued under the Plan and held in escrow, together
with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding. 
 IV. USE OF PROCEEDS 
 Any cash
proceeds received by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 
 V. WITHHOLDING 
 The Corporation’s obligation to deliver shares of Common Stock upon the exercise of any options granted
under the Plan or upon the issuance or vesting of any shares issued under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements. 
 VI. REGULATORY APPROVALS 
 The
implementation of the Plan, the granting of any options under the Plan and the issuance of any shares of Common Stock (i) upon the exercise of any option or (ii) under the Stock Issuance Program shall be subject to the Corporation’s
procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the options granted under it and the shares of Common Stock issued pursuant to it. 
 VII. NO EMPLOYMENT OR SERVICE RIGHTS 
 Nothing in the Plan shall confer upon the Optionee or the Participant 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 Corporation (or any Parent or
Subsidiary employing or retaining such person) or of the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate such person’s Service at any time for any reason, with or without cause. 
 VIII. FINANCIAL REPORTS 
 The
Corporation shall deliver a balance sheet and an income statement at least annually to each individual holding an outstanding option under the Plan, unless such individual is a key Employee whose duties in connection with the Corporation (or any
Parent or Subsidiary) assure such individual access to equivalent information. 
  

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 APPENDIX 
 The following definitions shall be in effect under the Plan: 
 A. Board shall mean the
Corporation’s Board of Directors. 
 B. Code shall mean the Internal Revenue Code of 1986, as amended. 
 C. Committee shall mean a committee of two (2) or more Board members appointed by the Board to exercise one or more administrative
functions under the Plan. 
 D. Common Stock shall mean the Corporation’s common stock. 
 E. Corporate Transaction shall mean either of the following stockholder-approved transactions to which the Corporation is a party:

 (i) a merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 
 (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s assets in complete liquidation or
dissolution of the Corporation. 
 F. Corporation shall mean Applied Semantics, Inc. (previously, “Oingo, Inc.”), a
California corporation, and any successor corporation to all or substantially all of the assets or voting stock of Applied Semantics, Inc. which shall by appropriate action adopt the Plan. 
 G. Disability shall mean the inability of the Optionee or the Participant to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment and shall be determined by the Plan Administrator on the basis of such medical evidence as the Plan Administrator deems warranted under the circumstances. 
 H. Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the control and
direction of the employer entity as to both the work to be performed and the manner and method of performance. 
 I. Exercise
Date shall mean the date on which the Corporation shall have received written notice of the option exercise. 
 J. Fair Market
Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions: 
 (i) If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of 







 Common Stock on the date in question, as such price is reported by the National Association of Securities
Dealers on the Nasdaq National Market. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 (ii) If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing
selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on
such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
 (iii) If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair
Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 
 K. Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 
 L.
Involuntary Termination shall mean the termination of the Service of any individual which occurs by reason of: 
 (i) such individual’s involuntary dismissal or discharge by the Corporation for reasons other than Misconduct, or 
 (ii) such individual’s voluntary resignation following (A) a change in his or her position with the Corporation which materially reduces his or her duties and responsibilities or the level of management to which he or she reports,
(B) a reduction in his or her level of compensation (including base salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of
such individual’s place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected without the individual’s consent. 
 M. Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any unauthorized
use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by such person adversely affecting the business or affairs of the Corporation (or any
Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Corporation (or any Parent or Subsidiary) may consider as grounds for the dismissal or discharge of any
Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary). 
 N. 1934 Act shall
mean the Securities Exchange Act of 1934, as amended. 
  

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 O. Non-Statutory Option shall mean an option not intended to satisfy the requirements of
Code Section 422. 
 P. Option Grant Program shall mean the option grant program in effect under the Plan. 
 Q. Optionee shall mean any person to whom an option is granted under the Plan. 
 R. Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation,
provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
 S. Participant shall mean any person who is issued shares of Common Stock under the Stock
Issuance Program. 
 T. Plan shall mean the Corporation’s 1999 Stock Option/Stock Issuance Plan, as set forth in this
document. 
 U. Plan Administrator shall mean either the Board or the Committee acting in its capacity as administrator of the
Plan. 
 V. Service shall mean the provision of services to the Corporation (or any Parent or Subsidiary) by a person in the
capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant. 
 W. Stock Exchange shall mean either the American Stock Exchange or the New York Stock Exchange. 
 X. Stock Issuance Agreement shall mean the agreement entered into by the Corporation and the Participant at the time of issuance of shares
of Common Stock under the Stock Issuance Program. 
 Y. Stock Issuance Program shall mean the stock issuance program in effect
under the Plan. 
 Z. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations
beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain. 
 AA. 10% Stockholder shall mean the owner of stock (as
determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary). 
  

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