Document:

Revised Form of Representative's Warrant Agmt. for National Securities Corp.

 Exhibit 4.6 
  

———————————————————————————————— 
  
 MARCHEX, INC. 
  
 AND 
  
 NATIONAL SECURITIES CORPORATION 
  
 REVISED FORM OF REPRESENTATIVE’S 
 WARRANT
AGREEMENT 
  
 DATED AS OF
                    , 2004 
  
 ———————————————————————————————— 
  
 REPRESENTATIVE’S WARRANT AGREEMENT dated as of
                , 2004 between MARCHEX, INC., a Delaware corporation (the “Company”) and NATIONAL SECURITIES CORPORATION (“National” or the
“Representative”). 
  
 W I T N E S S E T H: 

 
 WHEREAS, Representative has agreed pursuant to the underwriting agreement
(the “Underwriting Agreement”) dated as of the date hereof between the Company and Representative, to act as co-managing underwriter in connection with the Company’s proposed public offering (the “Public Offering”) of an
aggregate of 4,000,000 shares of the Company’s Class B common stock, par value $.01 per share (the “Class B Common Stock”) at an initial public offering price of
[            ] per share of Class B Common Stock, plus up to an additional 600,000 shares of Class B Common Stock pursuant to the Representative’s over-allotment option; and

  
 WHEREAS, the Company proposes to issue warrants (the
“Warrants”) to the managing underwriters exercisable for up to an aggregate of 120,000 shares of the Class B Common Stock of which the Representative shall receive warrants to purchase up to 60,000 shares of Class B Common Stock and
Sanders Morris Harris Inc., as the other co-managing underwriter and lead underwriter, shall receive warrants to purchase up to 60,000 shares of Class B Common Stock; and 
  
 WHEREAS, the Warrants issued pursuant to this Agreement are being issued by the Company to Representative, for its own
account or for the account of Representative’s designee (limited to officers, directors and employees of Representative, individually, “Representative’s Designee” and collectively, “Representative’s Designees”) on
the First Closing Date (as such term is defined in the Underwriting Agreement) in consideration for, and as part of Representative ‘s compensation in connection with, Representative acting as the representative pursuant to the Underwriting
Agreement; 

 NOW, THEREFORE, in consideration of the foregoing premises, the payment by the Representative to the
Company of an aggregate of fifty dollars ($50.00), the agreements herein set forth and other good and valuable consideration, hereby acknowledged, the parties hereto agree as follows: 
  
 1. Grant. Upon the successful closing of the Public Offering and the fulfillment of the terms of the Underwriting
Agreement by the Representative, the Representative and/or the Representative’s Designee (together, the “Holders” and each a “Holder”) is hereby granted the right to purchase, at any time from
                , 2005 (one (1) year from the First Closing Date (as such term is defined in the Underwriting Agreement) (the “Initial Exercise Date”)
until 5:30 P.M., New York time, on                 , 2009 (five (5) years from the First Closing Date (as such term is defined in the Underwriting Agreement) of
the registration statement and any supplement thereto, on Form SB-2, No. 333-111096) (the “Expiration Date”), up to an aggregate of 60,000 shares of Class B Common Stock at an initial exercise price (subject to adjustment as provided in
Section 8 hereof) (the “Shares”) of 130% of the Public Offering price per share (the “Initial Exercise Price”). Except as set forth herein, the shares of Class B Common Stock issuable upon exercise of the Warrants are in all
respects identical to the shares of Class B Common Stock being purchased by the Underwriters for resale to the public pursuant to the terms and provisions of the Underwriting Agreement. 
  
 2. Warrant Certificates. The warrant certificates (the “Warrant Certificates”) delivered and to be
delivered pursuant to this Agreement shall be in the form set forth in Exhibit A, attached hereto and made a part hereof, with such appropriate insertions, omissions, substitutions, and other variations as required or permitted by this Agreement.
This Warrant shall not entitle its Holder to any rights as a stockholder of the Company prior to the exercise of this Warrant. 
  
 3. Exercise of Warrant. 
  
 3.1 Method of Exercise. The Warrants initially are exercisable commencing on the Initial Exercise Date at the Initial Exercise Price (subject to
adjustment as provided in Section 8 hereof) set forth in Section 6 hereof payable by certified or official bank check in New York Clearing House funds, subject to adjustment as provided in Section 8 hereof. Upon surrender of a Warrant Certificate
with a Form of Election to Purchase duly executed (substantially in the form of Annex A to the Warrant Certificate), together with payment of the Exercise Price (as hereinafter defined) for the shares of Class B Common Stock purchased at the
Company’s principal executive offices in Seattle, Washington (presently located at 2101 Fourth Avenue, Suite 1980, Seattle, Washington 98121) the registered holder of a Warrant Certificate shall be entitled to receive a certificate or
certificates for the shares of Class B Common Stock so purchased. The purchase rights represented by each Warrant Certificate are exercisable at the option of the Holder thereof, in whole or in part (but not as to fractional shares of the Class B
Common Stock). The Warrants may be exercised to purchase all or part of the shares of Class B Common Stock. In the case of the purchase of less than all the shares of Class B Common Stock under any Warrant Certificate, the Company shall cancel said
Warrant Certificate upon the 
  

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 surrender thereof and shall execute and deliver a new Warrant Certificate of like tenor for the balance of the shares of
Class B Common Stock purchasable thereunder. 
  
 3.2 Exercise
by Surrender of Warrant. In addition to the method of payment set forth in Section 3.1 and in lieu of any cash payment required thereunder, the Holder(s) shall have the right, at any time and from time to time prior to the Expiration Date, to
exercise the Warrants in full or in part by surrendering the Warrant Certificate(s) representing a certain number of additional Warrants as payment of the aggregate Exercise Price for the shares of Class B Common Stock being acquired upon exercise
of the Warrants. The Warrants are exercisable pursuant to this Section 3.2 by surrender of the Warrant Certificate(s) with a Form of Election to Purchase duly executed (substantially in the form of Annex B to the Warrant Certificate) and surrender
of a certain number of Warrants in addition to those being exercised. The number of additional Warrants to be surrendered in payment of the aggregate Exercise Price for the Warrants being exercised shall be determined by multiplying the number of
Warrants to be exercised by the Exercise Price, and then dividing the product thereof by an amount equal to the Market Price (as defined below). Solely for the purposes of this paragraph, Market Price shall be calculated either (i) on the date on
which the Form of Election to Purchase attached hereto is deemed to have been sent to the Company pursuant to Section 13 hereof (“Notice Date”) or (ii) as the average of the Market Prices for each of the three (3) trading days preceding
the Notice Date, whichever of (i) or (ii) is greater. 
  
 3.3
Definition of Market Price. As used herein, the phrase “Market Price” at any date shall be deemed to be the last reported sale price, or, in case no such reported sale takes place on such day, the average of the last reported sale
prices for the last three (3) trading days, in either case as officially reported by the principal securities exchange on which the Class B Common Stock is listed or admitted to trading or by the Nasdaq National Market (“Nasdaq National
Market”) or by the National Association of Securities Dealers Automated Quotation System (“Nasdaq”), or, if the Class B Common Stock is not listed or admitted to trading on any national securities exchange or quoted by Nasdaq, the
average closing bid price as furnished by the National Association of Securities Dealers, Inc. (“NASD”) through Nasdaq or similar organization if Nasdaq is no longer reporting such information, or if the Class B Common Stock is not quoted
on Nasdaq, as determined in good faith by resolution of the members of the Board of Directors of the Company, based on the best information available to it. 
  
 4. Issuance of Certificates. Upon the exercise of the Warrants, the issuance of certificates for shares of Class B Common Stock shall be made
promptly (and in any event within five (5) business days thereafter) without charge to the Holder thereof including, without limitation, any stock transfer or similar tax which may be payable in respect of the issuance thereof, and such certificates
shall (subject to the provisions of Sections 5 and 7 hereof) be issued in the name of, or in such names as may be directed by, the Holder thereof; provided, however, that the Company shall not be required to pay any tax which may be payable in
respect of any transfer involved in the issuance and delivery of any such certificates in a name other than that of the Holder, and the Company shall not be required to issue or deliver such certificates unless or until the person or persons
requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 
  
  

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 The Warrant Certificates and the certificates representing the shares of Class B Common Stock issued upon
exercise thereof shall be executed on behalf of the Company by the manual or facsimile signature of the then Chairman of the Board of Directors or President of the Company, attested to by the manual or facsimile signature of the then Secretary of
the Company. Warrant Certificates shall be dated the date of execution by the Company upon initial issuance, division, exchange, substitution or transfer. Certificates representing the shares of Class B Common Stock shall be dated as of the Notice
Date (regardless of when executed or delivered). 
  
 5.
Restriction on Transfer of Warrants. The Holder of a Warrant Certificate, by its acceptance thereof, covenants and agrees that the Warrants are being acquired as an investment and not with a view to the distribution thereof, and that the
Warrants may not be sold, transferred, assigned, hypothecated or otherwise disposed of, in whole or in part, pursuant to NASD Corporate Financing Rule 2710 (currently a period of one (1) year from the date hereof), except to Representative’s
Designees (each of which is hereinafter referred to as a “Transferee”), in which case such Transferee shall be entitled to receive a replacement Warrant Certificate in accordance with Section 9 hereof upon presentment of a properly
executed Form of Assignment in the form set forth on Annex C to the Warrant Certificate attached hereto and made a part hereof. The Holder of a Warrant Certificate, by its acceptance thereof, further covenants and agrees that this Warrant and the
Shares which may be issued upon exercise hereof are being acquired for investment, that the Holder has no present intention to resell or otherwise dispose of all or any part of this Warrant or any Shares, and that the Holder will not offer, sell or
otherwise dispose of all or any part of this Warrant or any Shares except under circumstances which will not result in a violation of the Securities Act of 1933, as amended (the “Act”). If the Company conducts any registered offering, the
Holder of the Warrant or any Shares shall not, without the prior written consent of the Company and the managing underwriter, if any, in such offering: (i) sell, transfer or otherwise dispose of, or agree to sell, transfer or otherwise dispose of
the Warrant or any of the Shares; (ii) sell, transfer or otherwise dispose of, or agree to sell, transfer or otherwise dispose of any right to purchase the Warrant or any of the Shares; or (iii) sell or grant, or agree to sell or grant, options,
rights or warrants with respect to the Warrant or any of the Shares. Such restrictions shall be effective for a period of time equal to the period during which the managing underwriter imposes such transfer restrictions on the Company’s
officers and directors; provided, that in no event shall the restricted period applicable to a Holder of this Warrant or Shares exceed one hundred eighty (180) days after effectiveness of the Company’s registration statement filed with the
United Stated Securities and Exchange Commission (the “Commission”) with respect to such offering. 
  
 In connection with the transfer or exercise of Warrants, the Transferee and Holder agree to execute any documents which may be reasonably required by
counsel to the Company to comply with the provisions of the Act and applicable state securities laws. 
  
 6. Exercise Price. 
  
 6.1 Initial and Adjusted Exercise Price. Except as otherwise provided in Section 8 hereof, the initial exercise price of each Warrant shall be the
Initial Exercise Price. The 
  

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 adjusted exercise price shall be the price which shall result from time to time from any and all adjustments of the
initial exercise price in accordance with the provisions of Section 8 hereof. 
  
 6.2 Exercise Price. The term “Exercise Price” herein shall mean the Initial Exercise Price or the adjusted exercise price, depending upon the context or unless otherwise specified. 
  
 7. Registration Rights. 
  
 7.1 Registration under the Securities Act of 1933. The Warrants and
the shares of Class B Common Stock issuable upon exercise of the Warrants (collectively, the “Warrant Securities”) have not been registered under the Act and the certificates representing the Warrant Securities or any other evidence
thereof shall bear the following legends: 
  
 The warrant
represented by this certificate and the other securities issued upon exercise thereof may not be offered or sold except pursuant to (i) an effective registration statement under the Securities Act of 1933 (the “Act”), (ii) to the extent
applicable, Rule 144 under such Act (or any similar rule under such Act relating to the disposition of securities), or (iii) an opinion of counsel, if such opinion shall be reasonably satisfactory to counsel to the issuer, that an exemption from
registration under such Act is available. 
  
 7.2 Piggyback
Registration. If, at any time commencing on the Initial Exercise Date and expiring on the Expiration Date, the Company proposes to register any of its securities under the Act (other than in connection with a merger or pursuant to Form S-4 or
Form S-8 or successor form thereto) it will give written notice by registered mail, at least thirty (30) days prior to the filing of each such registration statement, to the Holders of the Warrant Securities of its intention to do so; provided,
however, in accordance with the NASD rules and regulations, in no event shall the right contained in this Section 7.2 continue for more than seven (7) years from the date hereof. If any of the Holders of the Warrant Securities notify the Company
within twenty (20) days after mailing of any such notice of its or their desire to include any such securities in such proposed registration statement, the Company shall afford such Holders of the Warrant Securities the opportunity to have any such
Warrant Securities registered under such registration statement. In the event that the managing underwriter for said offering advises the Company in writing that in their opinion the number of securities requested to be included in such registration
exceeds the number which can be sold in such offering without causing a diminution in the offering price or otherwise adversely affecting the offering, the Company will include in such registration (a) FIRST, the securities the Company proposes to
sell, (b) SECOND, the total number of securities which in the opinion of such underwriter can be sold by holders of the Warrant Securities and the holders of securities with registration rights granted by the Company prior to the date hereof,
provided, however, if the number of shares to be included in the registration in accordance with the foregoing is less than the total number of shares which such holders have requested to be included, then the holders of such shares
who 
  

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 have requested registration shall participate in the registration pro rata based upon their total ownership of shares of
Class B Common Stock (giving effect to the conversion or exercise into Class B Common Stock of all securities convertible or exercisable thereinto) and if any such holder would thus be entitled to include more securities than such holder requested
to be registered, the excess shall be allocated among the other requesting holders pro rata in the manner described in this subsection (b), and (c) THIRD, other securities requested to be included in such registration. 
  
 Notwithstanding the provisions of this Section 7.2, the Company shall have
the right at any time after it shall have given written notice pursuant to this Section 7.2 (irrespective of whether a written request for inclusion of any such securities shall have been made) to elect not to file any such proposed registration
statement or to withdraw the same after the filing but prior to the effective date thereof. 
  
 7.3 Covenants of the Company with respect to Registration. 
  
 In connection with any registration under Section 7.2 hereof, the Company covenants and agrees as follows: 
  
 (a) The Company shall pay all costs (excluding fees and expenses of
Holder(s)’ counsel and any underwriting or selling commissions), fees and expenses in connection with all registration statements filed pursuant to Section 7.2 including, without limitation, the Company’s legal and accounting fees,
printing expenses, blue sky fees and expenses. 
  
 (b) The Company
will take all necessary action which may be required in qualifying or registering the Warrant Securities included in a registration statement for offering and sale under the securities or blue sky laws of such states as reasonably are requested by
the Holder(s), provided that the Company shall not be obligated to execute or file any general consent to service of process or to qualify as a foreign corporation to do business under the laws of any such jurisdiction. 
  
 (c) The Company shall indemnify the Holder(s) of the Warrant Securities to be
sold pursuant to any registration statement and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all
loss, claim, damage, expense or liability (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Act, the Exchange Act or otherwise,
arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify each of the Underwriters contained in Section 6 of the Underwriting Agreement and
to provide for just and equitable contribution as set forth in Section 6 of the Underwriting Agreement. 
  
 (d) The Holder(s) of the Warrant Securities to be sold pursuant to a registration statement, and their successors and assigns, shall severally, and not
jointly, indemnify the Company, its officers and directors and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against all loss, 
  

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 claim, damage, expense or liability (including all expenses reasonably incurred in investigating, preparing or defending
against any claim whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, for specific inclusion in such
registration statement to the same extent and with the same effect as the provisions contained in Section 6 of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company and to provide for just and equitable
contribution as set forth in the Underwriting Agreement. 
  
 (e)
Nothing contained in this Agreement shall be construed as requiring the Holder(s) to exercise their Warrants prior to the initial filing of any registration statement or the effectiveness thereof. 
  
 (f) The Company shall deliver promptly to each Holder participating in the
offering requesting the correspondence and memoranda described below and to the managing underwriters, copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the
Commission or its staff with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement
as it deems reasonably necessary to comply with applicable securities laws or rules of the NASD.  
  
 7.4 Obligations of Holders. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 7
hereof that each of the selling Holders shall: 
  
 (a) Furnish to
the Company such information regarding themselves, the Warrant Securities held by them, the intended method of sale or other disposition of such securities, the identity of and compensation to be paid to any underwriters proposed to be employed in
connection with such sale or other disposition, and such other information as may reasonably be required to effect the registration of their Warrant Securities. 
  

(b) Notify the Company, at any time when a prospectus relating to the Warrant Securities covered by a registration statement is required to be
delivered un the Act, of the happening of any event with respect to such selling Holder as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state
a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. 
  
 8. Adjustments to Exercise Price and Number of Securities. 
  

8.1 Subdivision and Combination. In case the Company shall at any time subdivide or combine the outstanding shares of Class B Common Stock, the
Exercise Price shall forthwith be proportionately decreased in the case of subdivision or increased in the case of combination. 
  

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 8.2 Stock Dividends and Distributions. In case the Company shall at any time after the date hereof
pay a dividend in, or make a distribution of, shares of Class B Common Stock or of the Company’s capital stock convertible into Class B Common Stock, the Exercise Price shall forthwith be proportionately decreased. An adjustment made pursuant
to this Section 8.2 shall be made as of the record date for the subject stock dividend or distribution. 
  
 8.3 Adjustment in Number of Securities. Upon each adjustment of the Exercise Price pursuant to the provisions of this Section 8, the number of
Class B Common Stock issuable upon the exercise at the adjusted exercise price of each Warrant shall be adjusted to the nearest full amount by multiplying a number equal to the Exercise Price in effect immediately prior to such adjustment by the
number of Class B Common Stock issuable upon exercise of the Warrants immediately prior to such adjustment and dividing the product so obtained by the adjusted Exercise Price. 
  
 8.4 Definition of Class B Common Stock. For the purpose of this Agreement, the term “Class B Common Stock”
shall mean (i) the class of stock designated as Class B Common Stock in the Certificate of Incorporation of the Company as amended to date, or (ii) any other class of stock resulting from successive changes or reclassifications of such Class B
Common Stock consisting solely of changes in par value, or from par value to no par value, or from no par value to par value. 
  
 8.5 Merger or Consolidation. In case after the date hereof of any consolidation of the Company with, or merger of the Company with, or merger of
the Company into, another corporation (other than a consolidation or merger which does not result in any reclassification or change of the outstanding Class B Common Stock), the corporation formed by such consolidation or merger shall execute and
deliver to the Holder a supplemental warrant agreement providing that the holder of each Warrant then outstanding or to be outstanding shall have the right thereafter (until the expiration of such Warrant) to receive, upon exercise of such Warrant,
the kind and amount of shares of stock and other securities and property receivable upon such consolidation or merger, by a holder of the number of securities of the Company for which such Warrant might have been exercised immediately prior to such
consolidation, merger, sale or transfer. Such supplemental warrant agreement shall provide for adjustments which shall be identical to the adjustments provided in this Section 8. The above provision of this subsection shall similarly apply to
successive consolidations or mergers. 
  
 8.6 No Adjustment of
Exercise Price in Certain Cases. No adjustment of the Exercise Price shall be made if the amount of said adjustment shall be less than two cents (2) per Warrant Security, provided, however, that in such case any adjustment that would otherwise
be required then to be made shall be carried forward and shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment so carried forward, shall amount to at least two cents ($.02) per Warrant
Security. 
  
 9. Exchange and Replacement of Warrant
Certificates. 
  
 9.1 Exchange. Each Warrant
Certificate is exchangeable without expense, upon the surrender thereof by the registered Holder at the principal executive office of the Company, 
  

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 for a new Warrant Certificate of like tenor and date representing in the aggregate the right to purchase the same number
of Warrant Securities in such denominations as shall be designated by the Holder thereof at the time of such surrender. 
  
 9.2 Replacement. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of any Warrant
Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of the Warrants, if
mutilated, the Company will make and deliver a new Warrant Certificate of like tenor, in lieu thereof. 
  
 10. Limitation of Fractional Interests. The Company shall not be required to issue certificates representing fractions of shares of Class B Common
Stock upon the exercise of the Warrants, nor shall it be required to issue scrip or pay cash in lieu of fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up to the
nearest whole number of shares of Class B Common Stock or other securities, properties or rights. 
  
 11. Reservation and Listing of Securities. The Company shall at all times reserve and keep available out of its authorized shares of Class B Common
Stock, solely for the purpose of issuance upon the exercise of the Warrants, such number of shares of Class B Common Stock or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees
that, upon exercise of the Warrants and payment of the Exercise Price therefor, all shares of Class B Common Stock issuable upon such exercise shall be duly and validly issued, fully paid, non-assessable and not subject to the preemptive rights of
any stockholder. 
  
 12. Notices to Warrant Holders.
Nothing contained in this Agreement shall be construed as conferring upon the Holders the right to vote or to consent or to receive notice as a stockholder in respect of any meetings of stockholders for the election of directors or any other matter,
or as having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration of the Warrants and their exercise, any of the following events shall occur: 
  
 (a) the Company shall take a record of the holders of its shares of Class B
Common Stock for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings or capital surplus (in accordance with
applicable law), as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or 
  
 (b) the Company shall offer to all the holders of its Class B Common Stock any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor; or 
  

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 (c) a dissolution, liquidation or winding up of the Company (other than in connection with a
consolidation or merger) or a sale of all or substantially all of its property, assets and business as an entirety shall be proposed; 
  
 then, in any one or more of said events, the Company shall give written notice of such event at least fifteen (15) days prior to the date fixed as a record date or the
date of closing the transfer books for the determination of the stockholders entitled to such dividend, distribution, convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation,
winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the case may be. Failure to give such notice or any defect therein shall not affect the validity of any action taken in connection with the
declaration or payment of any such dividend, or the issuance of any convertible or exchangeable securities, or subscription rights, options or warrants, or any proposed dissolution, liquidation, winding up or sale. 
  
 13. Notices. 
  
 All notices, requests, consents and other communications hereunder shall be
in writing and shall be deemed to have been duly made and sent when delivered, or mailed by registered or certified mail, return receipt requested or by Federal Express or other recognized overnight courier: 
  
 (a) If to the registered Holder of the Warrants, to the address of such
Holder as shown on the books of the Company; or 
  
 (b) If to the
Company, to the address set forth in Section 3 hereof or to such other address as the Company may designate by notice to the Holders. 
  
 14. Supplements and Amendments. The Company and the Representative may from time to time supplement or amend this Agreement without the approval of
any Holders of Warrant Certificates (other than the Representative) in order to cure any ambiguity, to correct or supplement any provision contained herein which may be defective or inconsistent with any provisions herein, or to make any other
provisions in regard to matters or questions arising hereunder which the Company and the Representative may deem necessary or desirable and which the Company and the Representative deem shall not adversely affect the interests of the Holders of
Warrant Certificates. 
  
 15. Successors. All the covenants
and provisions of this Agreement shall be binding upon and inure to the benefit of the Company, the Holders and their respective successors and assigns hereunder. Neither the Warrants or the Shares may be sold, transferred, assigned or hypothecated
for a period of one (1) year from the date of this Warrant Agreement, except to Transferees. 
  
 16. Termination. This Agreement shall terminate at 5:30 P.M., New York time, on                 , 2009. Notwithstanding the
foregoing, this Agreement will terminate on any earlier date when all Warrants have been exercised. 
  

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 17. Governing Law; Submission to Jurisdiction. This Agreement and each Warrant Certificate issued
hereunder shall be governed by and construed in accordance with the internal substantive laws of the State of Washington without giving effect to the choice of law principles thereof. Each party hereby consents to the personal jurisdiction of the
State of Washington, acknowledges that venue is proper in any state or Federal court in the State of Washington, agrees that any action related to this Agreement must be brought in a state or Federal court in the State of Washington and waives any
objection that may exist, now or in the future, with respect to any of the foregoing. Each party (or their respective stockholders and affiliates) waives all right to trial by jury in any action, proceeding or counterclaim (whether based upon
contract, tort or otherwise) in any way arising out of or relating to this Agreement. In the event of litigation between the parties arising hereunder, the prevailing party shall be entitled to costs and reasonable attorney’s fees. 

 
 18. Entire Agreement; Modification. This Agreement (including the
Underwriting Agreement to the extent portions thereof are referred to herein) contains the entire understanding between the parties hereto with respect to the subject matter hereof and may not be modified or amended except by a writing duly signed
by the party against whom enforcement of the modification or amendment is sought. 
  
 19. Severability. If any provision of this Agreement shall be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision of this Agreement. 
  
 20. Captions. The caption headings of the Sections of this Agreement
are for convenience of reference only and are not intended, nor should they be construed as, a part of this Agreement and shall be given no substantive effect. 
  

21. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any person or corporation other than the Company and the
Representative and any other registered Holder(s) of the Warrant Securities any legal or equitable right, remedy or claim under this Agreement; and this Agreement shall be for the sole benefit of the Company and the Representative and any other
registered Holders of Warrant Securities. 
  
 22. No Limitation
on Corporate Action. No provisions of the Warrant and no right or option granted or conferred hereunder shall in any way limit, affect, or abridge the exercise by the Company of any of its corporate rights or powers to recapitalize, amend its
certificate of incorporation, reorganize or merge with or into another corporation, or to transfer all or any part of its property or assets, or the exercise of any other of its corporate rights and powers, provided such rights or powers as
exercised are not inconsistent with any other provision of this Agreement. 
  
 23. Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and such counterparts shall together constitute
but one and the same instrument. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as an instrument
under seal, as of the day and year first above written. 
  

					
	 MARCHEX, INC.

		
	By:	 	

	 	 	 Name:
	 	Russell C. Horowitz
	 	 	 Title:
	 	Chief Executive Officer

  
 Attest: 
  

			
	
	  
	

	 Name:
	 	Ethan A. Caldwell
	 Title:
	 	Secretary

  

					
	NATIONAL SECURITIES CORPORATION
		
	By:	 	

	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

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 EXHIBIT A 
  
 FORM OF WARRANT CERTIFICATE 
  

THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES ISSUABLE UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (i) AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE
REASONABLY SATISFACTORY TO COUNSEL FOR THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE. 
  
 THE TRANSFER OR EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS RESTRICTED IN ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN. 
  
 EXERCISABLE ON OR BEFORE 
 5:30 P.M., NEW YORK TIME,             , 2009 
  

			
	No. W-        	 	 Warrants to Purchase
 [            ] shares of Class B
 Common Stock

  
 WARRANT CERTIFICATE

  
 This Warrant Certificate certifies that [NATIONAL SECURITIES
CORPORATION], or registered assigns, is the registered holder of Warrants to purchase at any time from             , 2005 until 5:30 p.m. New York time on
            , 2009 (“Expiration Date”), up to [            ] fully-paid and non-assessable shares of
Class B Common Stock, $0.01 par value (“Class B Common Stock”), of MARCHEX, INC., a Delaware corporation (the “Company”), and [at the initial exercise price, subject to adjustment in certain events (the “Exercise
Price”), of $              per share] of Class B Common Stock upon surrender of this Warrant Certificate and payment of the Exercise Price at an office or agency of the
Company, but subject to the conditions set forth herein and in the warrant agreement dated as of             , 2004 between the Company and NATIONAL SECURITIES CORPORATION (the
“Warrant Agreement”). Payment of the Exercise Price shall be made by certified or official bank check in New York Clearing House funds payable to the order of the Company or by surrender of this Warrant Certificate. 
  
 No Warrant may be exercised after 5:30 p.m., New York time, on the Expiration
Date, at which time all Warrants evidenced hereby, unless exercised prior thereto, hereby shall thereafter be void. 
  
 The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants issued pursuant to the Warrant Agreement, which Warrant
Agreement is hereby 
  

 -13- 

 incorporated by reference in and made a part of this instrument and is hereby referred to for a description of the
rights, limitation of rights, obligations, duties and immunities thereunder of the Company and the holders (the words “holders” or “holder” meaning the registered holders or registered holder) of the Warrants. 
  
 The Warrant Agreement provides that upon the occurrence of certain events the
Exercise Price and the type and/or number of the Company’s securities issuable thereupon may, subject to certain conditions, be adjusted. In such event, the Company will, at the request of the holder, issue a new Warrant Certificate evidencing
the adjustment in the Exercise Price and the number and/or type of securities issuable upon the exercise of the Warrants; provided, however, that the failure of the Company to issue such new Warrant Certificates shall not in any way change, alter,
or otherwise impair, the rights of the holder as set forth in the Warrant Agreement. 
  
 Upon due presentment for registration of transfer of this Warrant Certificate at an office or agency of the Company, a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a
like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided herein and in the Warrant Agreement, without any charge except for any tax or other governmental charge
imposed in connection with such transfer. 
  
 Upon the exercise of
less than all of the Warrants evidenced by this Certificate, the Company shall forthwith issue to the holder hereof a new Warrant Certificate representing such number of unexercised Warrants. 
  
 The Company may deem and treat the registered holder(s) hereof as the
absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, and of any distribution to the holder(s) hereof, and for all other purposes,
and the Company shall not be affected by any notice to the contrary. 
  
 Neither the Warrants or the Shares may be sold, transferred, assigned or hypothecated pursuant to NASD Corporate Financing Rule 2710 (currently a period of one year from the date of this Warrant Certificate), except to one or more
Designees. 
  
 All terms used in this Warrant Certificate which
are defined in the Warrant Agreement shall have the meanings assigned to them in the Warrant Agreement. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 -14- 

 IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed under its
corporate seal. 
  
 Dated as of
            ,2004 
  

					
	 MARCHEX, INC.

		
	By:	 	

	 	 	 Name:
	 	Russell C. Horowitz
	 	 	 Title:
	 	Chief Executive Officer

 Attest: 
  

			
	
	  
	

	 Name:
	 	Ethan A. Caldwell
	 Title:
	 	Secretary

  

 -15- 

 Annex A to Warrant Certificate 
  
 FORM OF ELECTION TO PURCHASE PURSUANT TO SECTION 3.1 
  
 The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, to purchase:

  
              shares of Class B Common Stock; 
  
 and herewith tenders in payment for such securities a certified or official bank check payable in New York Clearing House Funds to the order of Marchex,
Inc. in the amount of $            , all in accordance with the terms of Section 3.1 of the Representative’s Warrant Agreement dated as of
            , 2004 between Marchex, Inc. and National Securities Corporation. The undersigned requests that a certificate for such securities be registered in the name of
             whose address is              and that such Certificate be delivered to
             whose address is             . 
  
 Dated:              
  

			
		
	Signature:	 	

	 	 	 (Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate.)
  

 (Insert Social Security or Other Identifying Number of
Holder)

  

 -16- 

 Annex B to Warrant Certificate 
  
 FORM OF ELECTION TO PURCHASE PURSUANT TO SECTION 3.2 
  
 The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, to purchase:

  
              shares of Class B Common Stock; 
  
 and herewith tenders in payment for such securities              Warrants all in accordance with the
terms of Section 3.2 of the Representative’s Warrant Agreement dated as of             , 2004 between Marchex, Inc. and National Securities Corporation. The undersigned requests
that a certificate for such securities be registered in the name of              whose address is              and
that such Certificate be delivered to              whose address is             . 
  
 Dated:
             
  

			
		
	Signature:	 	

	 	 	 (Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate.)
  

 (Insert Social Security or Other Identifying Number of
Holder)

  

 -17- 

 Annex C to Warrant Certificate 
  
 FORM OF ASSIGNMENT 
  
 (To be executed by the registered holder if such holder desires to transfer the Warrant Certificate to Representative’s Designee.) 
  
 FOR VALUE RECEIVED
                         hereby sells, assigns and transfers unto 
  
                                       
                                        
                                        
                                        
                                        
                    
 (Please print name and
address of transferee) 
  
 this Warrant Certificate, together with all right,
title and interest therein, and does hereby irrevocably constitute and appoint              Attorney, to transfer the within Warrant Certificate on the books of the within-named
Company, with full power of substitution. 
  
 Dated:              
  

			
		
	Signature:	 	

	 	 	 (Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate.)
  

 (Insert Social Security or Other Identifying Number of
Holder)

  

 -18-Form of Amended and Restated 2003 Stock Incentive Plan

  
 Exhibit 10.1

  
 MARCHEX, INC. 
  
 FORM OF AMENDED AND RESTATED 
  
 2003 STOCK INCENTIVE PLAN 
  

	1.	DEFINITIONS. 

  
 Unless otherwise specified or unless the context otherwise requires, the terms set forth on Schedule A, shall have the meanings used therein.

  

	2.	PURPOSES OF THE PLAN. 

  
 The Plan is intended to encourage ownership of Shares by Employees and by directors of and consultants to the Company, its Affiliates and Strategic
Partners in order to attract such people, to induce them to work for the benefit of the Company and its Affiliates and to provide incentive for them to promote the success of the Company and its Affiliates. The Plan provides for the granting of
ISOs, Non-Qualified Options and Stock Grants. 
  

	3.	SHARES SUBJECT TO THE PLAN. 

  
 (a) The total number of Shares which shall be reserved and available for Stock Rights pursuant to this Plan shall be 4,000,000, plus an annual increase to
be added on January 1st of each year equal to five percent (5.0 %) of the outstanding Common Stock (including for
this purpose any shares of Common Stock issuable upon conversion of any outstanding capital stock of the Company) on such date; provided, however, that notwithstanding the foregoing, the total number of shares of Common Stock for which Options
designated as ISOs may be granted under the Plan shall not exceed 8,000,000 shares, in each case subject to adjustment in accordance with Paragraph 16 hereof. Shares issued under the Plan may be authorized but unissued shares of Common Stock or
shares of Common Stock held in treasury. 
  
 (b) To the extent
that any Option shall lapse, terminate, expire or otherwise be cancelled without the issuance of Shares, or if the Company shall reacquire any Shares issued pursuant to a Stock Grant, the Shares shall be available for the granting of other Stock
Rights under the Plan. 
  
 (c) Shares issuable under the Plan may
be subject to such restrictions on transfer, repurchase rights or other restrictions as shall be determined by the Administrator. 
  

	4.	ADMINISTRATION OF THE PLAN. 

  
 (a) At the discretion of the Company’s Board of Directors, the Administrator of the Plan shall be either (i) by the full Board of Directors of the
Company or (ii) by a committee (the “Committee”) consisting of two or more members of the Company’s 

  

 1 

 
Board of Directors; provided, however, that (i) to the extent necessary in order to permit officers and directors of the Company to be exempt from the
provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended (the “1934 Act”) with respect to transactions pursuant to the Plan, each of such persons shall be a “non-employee director” within the meaning of Rule
16b-3 (“Rule 16b-3”) promulgated by the Securities and Exchange Commission under the 1934 Act and (ii) if such qualification is deemed necessary in order for the grant or exercise of awards made under the Plan to qualify for any tax or
other material benefit to participants of the Company under applicable regulations under Section 162(m) of the Code, each of such persons shall be an “outside director” (as defined in applicable regulations thereunder). In the event the
full Board of Directors is the Administrator of the Plan, references herein to the Committee shall be deemed to mean the full Board of Directors. The Board of Directors may from time to time appoint a member or members of the Committee in
substitution for or in addition to the member or members then in office and may fill vacancies on the Committee however caused. The Committee may choose one of its members as Chairman and shall hold meetings at such times and places as it shall deem
advisable. A majority of the members of the Committee shall constitute a quorum and any action may be taken by a majority of those present and voting at any meeting; provided however, that if the Committee consists of only two members, both members
shall be required to constitute a quorum and to act at a meeting or to approve actions in writing. 
  
 (b) Any action may also be taken without the necessity of a meeting by a written instrument signed by a majority of the Committee. The decision of the
Committee as to all questions of interpretation and application of the Plan shall be final, binding and conclusive on all persons. The Committee shall have the authority to adopt, amend and rescind such rules and regulations as, in its opinion, may
be advisable in the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Option Agreement or Stock Grant Agreement in the manner and to the extent it shall deem
expedient to carry the Plan into effect and shall be the sole and final judge of such expediency. No Committee member shall be liable for any action or determination made in good faith. 
  
 (c) Subject to the terms of the Plan, the Administrator is authorized to: 
  

	 	i.	Interpret the provisions of the Plan or of any Option or Stock Grant and to make all rules and determinations which it deems necessary or advisable for the administration of the
Plan; 

  

	 	ii.	Determine which persons shall be considered eligible Participants in the Plan and which of such eligible persons shall be granted Stock Rights; 

  

	 	iii.	Determine the number of Shares for which Stock Rights shall be granted; 

  

	 	iv.	 Specify the terms and conditions upon which Stock Rights may be granted, including, but not limited to, the time or times when Stock Rights may be granted, shall
become exercisable (including any acceleration of 

  

 2 

	 	 
exercisability), the duration of the exercise period, and the price of Shares subject to each Stock Right; and 

  

	 	v.	Authorize any officer to execute on behalf of the Company an Option Agreement or Stock Grant in connection with each Option or Stock Grant, as the case may be.

  
 Notwithstanding the foregoing, all such interpretations, rules,
determinations, terms and conditions shall be made and prescribed in the context of preserving the tax status under Section 422 of the Code of those Options which are designated as ISOs. Subject to the foregoing, the interpretation and construction
by the Administrator of any provisions of the Plan or of any Stock Right shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the Committee. 
  

	5.	ELIGIBILITY FOR PARTICIPATION. 

  
 The Administrator will, in its sole discretion, name the Participants in the Plan, provided, however, that each Participant must be a Employee, director
or consultant of the Company, an Affiliate, or of a Strategic Partner at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator may authorize the grant of a Stock Right to a person not then an Employee, director or
consultant of the Company or of an Affiliate; provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the delivery of the Agreement
evidencing such Stock Right. ISOs may be granted only to Employees. Non-Qualified Options and Stock Grants may be granted to any Employee, director or consultant of the Company, an Affiliate or Strategic Partner or any other eligible Participant.
The granting of any Stock Right to any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock Rights. 
  
 In determining the eligibility of an individual to be granted an Option or Stock Grant, as well as in determining the number
of Shares to be optioned or granted to any individual, the Administrator shall take into account the position and responsibilities of the individual being considered, the nature and value to the Company or an Affiliate of his or her service and
accomplishments, his or her present and potential contribution to the success of the Company or an Affiliate, and such other factors as the Committee may deem relevant. 
  
 No Option designated as an ISO shall be granted to any Employee of the Company or an Affiliate if such Employee owns,
immediately prior to the grant of an Option, stock representing more than 10% of the combined voting power of all classes of stock of the Company or an Affiliate, unless the purchase price for the stock under such Option shall be at least 110% of
its Fair Market Value at the time such Option is granted and the Option, by its terms, shall not be exercisable more than five (5) years from the date it is granted. In determining the stock ownership under this paragraph, the provisions of Section
424(d) of the Code shall be controlling. 
  

 3 

 Subject to the provisions hereof relating to adjustments upon changes in the shares of Common Stock, no
Employee shall be eligible to be granted Options covering more than 4,000,000 shares of Common Stock during any calendar year, except that this restriction shall not apply at any time prior to the date on which the Company lists any shares of its
securities on any securities exchange. The restriction contained in this paragraph shall also not apply until the earliest of: (1) the first material modification of the Plan (including any increase in the number of shares of Common Stock reserved
for issuance hereunder); (2) the issuance of all of the shares of Common Stock reserved for issuance under the Plan; (3) the expiration of the Plan; (4) the first meeting of stockholders at which Directors are to be elected that occurs after the
close of the third (3rd) calendar year following the calendar year in which occurred the first registration of an
equity security by the Company under Section 12 of the 1934 Act; or (5) such other date required by Section 162(m) of the Code. 
  

	6.	TERMS AND CONDITIONS OF OPTIONS. 

  
 Each Option shall be set forth in writing in an Option Agreement, duly executed on behalf of the Company and by the Participant to whom such Option is
granted. The Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without
limitation, subsequent approval by the stockholders of the Company of this Plan or any amendments thereto. 
  

	 	A.	Non-Qualified Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and
in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified Option: 

  

	 	a.	Option Price: Each Option Agreement shall state the option price (per Share) of the Shares covered by each Option, which option price shall be determined by the Administrator but
shall not be less than the par value per share of Common Stock. 

  

	 	b.	Each Option Agreement shall state the number of Shares to which it pertains; 

  

	 	c.	Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, and may provide that the Option rights
accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated goals or events; 

  

	 	d.	 Exercise of any Option may be conditioned upon the Participant’s execution of certain agreements in form satisfactory to the Administrator providing for
certain protections for the Company 

  

 4 

	 	 
and its stockholders including, without limitation, requirements that: 

  

	 	i.	The Participant’s or the Participant’s Survivors’ right to sell or transfer the Shares may be restricted; and 

  

	 	ii.	The Participant or the Participant’s Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting any
applicable restrictions; and 

  

	 	e.	No Employment Rights: The Plan does not confer upon any Participant any right with respect to continued employment nor shall any Option interfere with the Company’s right to
terminate the Participant’s employment with or without cause, at any time, for any reason or no reason at all. 

  

	 	B.	ISOs: Each Option intended to be an ISO shall be issued only to a Employee of the Company (and not any other person including a Employee of a Strategic Partner) and shall be
subject to the following terms and conditions and to such additional restrictions or changes as the Administrator determines are appropriate but that are not in conflict with Section 422 of the Code: 

  

	 	a.	Minimum standards: The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(A) above, except clause (a) thereunder.

  

	 	b.	Option Price: Immediately before the Option is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Section 424(d) of the Code:

  

	 	i.	Ten percent (10%) or less of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each Option
shall not be less than one hundred percent (100%) of the Fair Market Value per share of the Shares on the date of the grant of the Option as determined by the Administrator in accordance with Section 422 of the Code. 

  

	 	ii.	More than ten percent (10%) of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each
Option shall not be less than one hundred ten percent (110%) of the said Fair Market Value on the date of grant. 

  

 5 

	 	c.	Term of Option: For Participants who own: 

  

	 	i.	Ten percent (10%) or less of the total combined voting power of all classes of stock of the Company or an Affiliate, each Option shall terminate not more than ten (10) years from
the date of the grant or at such earlier time as the Option Agreement may provide. 

  

	 	ii.	More than ten percent (10%) of the total combined voting power of all classes of stock of the Company or an Affiliate, each Option shall terminate not more than five (5) years from
the date of the grant or at such earlier time as the Option Agreement may provide. 

  

	 	d.	Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of Options which may be exercisable in any calendar year (under this or any other ISO plan of the
Company or an Affiliate) so that the aggregate Fair Market Value (determined at the time each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar year does not exceed one
hundred thousand dollars ($100,000), provided that this subparagraph (d) shall have no force or effect if its inclusion in the Plan is not necessary for Options issued as ISOs to qualify as ISOs pursuant to Section 422(d) of the Code.

  

	 	e.	No Employment Rights: The Plan does not confer upon any Participant any right with respect to continued employment nor shall any Option interfere with the Company’s right to
terminate the Participant’s employment with or without cause, at any time, for any reason or no reason at all. 

  

	7.	TERMS AND CONDITIONS OF STOCK GRANTS. 

  
 Each offer of a Stock Grant to a Participant shall state the date prior to which the Stock Grant must be accepted by the Participant, and the principal
terms of each Stock Grant shall be set forth in a Stock Grant Agreement, duly executed by the Company and the Participant. The Stock Grant Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the
Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards: 
  

	 	(a)	 Each Stock Grant Agreement shall state the purchase price (per share), if any, of the Shares covered by each Stock Grant, which purchase price 

  

 6 

	 	 
shall be determined by the Administrator but shall not be less than the par value on the date of the grant of the Stock Grant; 

 

	 	(b)	Each Stock Grant Agreement shall state the number of Shares to which the Stock Grant pertains; 

  

	 	(c)	Each Stock Grant Agreement shall include the terms of any right of the Company to reacquire the Shares subject to the Stock Grant, including the time and events upon which such
rights shall accrue and the purchase price therefor, if any; and 

  

	 	(d)	The Plan does not confer upon any Participant any right with respect to continued employment nor shall any Stock Grant interfere with the Company’s right to terminate the
Participant’s employment with or without cause, at any time, for any reason or no reason at all. 

  

	8.	EXERCISE OF OPTIONS AND ISSUE OF SHARES. 

  
 To the extent that the right to purchase Shares under an Option has accrued and is in effect, an Option (or any part or installment thereof) shall be
exercised by giving written notice to the Company at its principal executive office, together with payment of the full purchase price in accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance
with any other condition(s) set forth in the Option Agreement. Such written notice shall be signed by the person exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any
representation required by the Plan or the Option Agreement. 
  
 Each Option granted under the Plan shall, subject to the other provisions of this Plan, be exercisable at such time or times and during such period as shall be set forth in the Option Agreement. 
  
 To the extent that an Option to purchase shares is not exercised by a
Participant when it becomes initially exercisable, it shall not expire but shall be carried forward and shall be exercisable, on a cumulative basis, until the expiration of the exercise period. No partial exercise may be made for less than 100 full
shares of Common Stock. 
  
 Payment of the purchase price for the
Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, and so long as there is no adverse tax or accounting impact to the Company, through
delivery of shares of Common Stock owned by the Participant for at least six (6) months and having a Fair Market Value equal as of the date of the exercise to the cash exercise price of the Option, or (c) at the discretion of the Administrator, by
delivery of the grantee’s personal recourse note bearing interest at a fair market interest rate in accordance with applicable accounting practice for such note, or at 100% of the applicable Federal rate (“AFR”), as defined in Section
1274(d) of the 

  

 7 

 
Code, if the AFR is greater than a fair market interest rate, or (d) at the discretion of the Administrator, by any combination of (a), (b) and (c) above.

  
 When an Option is exercised, the Company shall then reasonably
promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that the
issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which requires or makes it desirable for the Company to
take any action with respect to the Shares prior to their issuance. The Shares shall, upon delivery, be evidenced by an appropriate certificate or certificates for fully paid, non-assessable Shares. 
  
 The Administrator shall have the right to accelerate the date of exercise of
any installment of any Option; provided that the Administrator shall not accelerate the exercise date of any installment of any Option granted as an ISO (and not previously converted into a Non-Qualified Option pursuant to Paragraph 26) if such
acceleration would violate any vesting limitation contained in Section 422(d) of the Code. 
  
 The Administrator may, in its discretion, amend any term or condition of an outstanding Option provided (i) such amendment is permitted by the Plan, (ii) any such amendment shall be made only with the consent
of the Participant to whom the Option was granted, or in the event of the death of the Participant, the Participant’s Survivors, if the amendment is adverse to the Participant, and (iii) any such amendment of any ISO shall be made only after
the Administrator, after consulting the counsel for the Company, determines whether such amendment would constitute a “modification” of any Option which is an ISO (as that term is defined in Section 424(h) of the Code) or would cause any
adverse tax consequences for the holder of such ISO. 
  

	9.	ACCEPTANCE OF STOCK GRANT AND ISSUE OF SHARES. 

  
 A Stock Grant (or any part or installment thereof) shall be accepted by executing the Stock Grant Agreement and delivering it to the Company at its
principal office, together with payment of the full purchase price, if any, in accordance with this Paragraph for the Shares as to which such Stock Grant is being accepted, and upon compliance with any other conditions set forth in the Stock Grant
Agreement. Payment of the purchase price for the Shares as to which such Stock Grant is being accepted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator and only so long as there is no
adverse tax or accounting impact to the Company, through delivery of shares of Common Stock owned by the Participant for at least six (6) months and having a fair market value equal as of the date of acceptance of the Stock Grant to the purchase
price of the Stock Grant determined in good faith by the Administrator, or (c) at the discretion of the Administrator, by delivery of the grantee’s personal recourse note bearing interest at a fair market interest rate in accordance with
applicable accounting practice for such note, or at 100% of the applicable Federal rate (“AFR”), as defined in Section 1274(d) of the Code, if the AFR is greater than a fair 

  

 8 

 
market interest rate, or (d) at the discretion of the Administrator, by any combination of (a), (b) and (c) above. 
  
 The Company shall then reasonably promptly (as determined in paragraph 8
above) deliver the Shares as to which such Stock Grant was accepted to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set forth in the Stock Grant Agreement. 
  
 The Administrator may, in its discretion, amend any term or condition
of an outstanding Stock Grant or Stock Grant Agreement provided (i) such amendment is permitted by the Plan, and (ii) any such amendment shall be made only with the consent of the Participant to whom the Stock Grant was made, if the amendment is
adverse to the Participant. 
  

	10.	RIGHTS AS A STOCKHOLDER. 

  
 No Participant to whom a Stock Right has been granted shall have rights as a stockholder with respect to any Shares covered by such Stock Right, except
after: (a) due exercise of the Option or acceptance of the Stock Grant in compliance with the terms of the Stock Right and tender of the full purchase price, if any, for the Shares being purchased pursuant to such exercise or acceptance; and (b)
registration of the Shares in the Company’s share register in the name of the Participant. 
  

	11.	ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS. 

  
 By its terms, a Stock Right granted to a Participant shall not be assignable or transferable by the Participant other than (i) by will or by the laws of
descent and distribution, except that an optionee may transfer Stock Rights that are not ISOs granted under the Plan to the Participant’s spouse or children or to a trust or partnership for the benefit of the Participant or Participant’s
spouse or children, or (ii) as otherwise determined by the Administrator and set forth in the applicable Option Agreement or Stock Grant Agreement. The designation of a beneficiary of a Stock Right by a Participant shall not be deemed a transfer
prohibited by this Paragraph. Except as provided above, a Stock Right shall only be exercisable or may only be accepted, during the Participant’s lifetime, by such Participant (or by his or her legal representative) and shall not be assigned,
pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any Stock Right granted under the Plan shall be null and void and without effect upon the bankruptcy
of the Participant to whom the Stock Right is granted, or upon any attempted transfer, assignment, pledge, hypothecation or other disposition except as herein provided, including without limitation any disposition, attachment, divorce, trustee
process or similar process, whether legal or equitable upon such Stock Right. 
  

 9 

	12.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE. 

  
 A. Termination Other Than Due to Disability or Death. Except as otherwise provided in the pertinent Option Agreement, in the event of a termination
of service (whether as an Employee, director or consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply: 
  

	 	a.	A Participant who ceases to be an Employee, director or consultant of the Company or of an Affiliate (for any reason other than termination due to Disability or death for which
events there are special rules in Subparagraphs B and C, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of service, but only within such term as the
Administrator has designated in the pertinent Option Agreement. 

  

	 	b.	Except as provided in elsewhere in this Paragraph, in no event may an Option Agreement provide, if an Option is intended to be an ISO, that the time for exercise be later than three
(3) months after the Participant’s termination of employment. 

  

	 	c.	The provisions of this Paragraph, and not the provisions of subparagraph B or C, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of
employment, director status or consultancy, provided, however, in the case of a Participant’s Disability or death within three (3) months after the termination of employment, director status or consultancy, the Participant or the
Participant’s Survivors may exercise the Option within one (1) year after the date of the Participant’s termination of employment, but in no event after the date of expiration of the term of the Option. 

  

	 	d.	A Participant to whom an Option has been granted under the Plan who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other
than a Disability), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy
with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide. 

  

	 	e.	Except as required by law or as set forth in the pertinent Option Agreement, Options granted under the Plan shall not be affected by any change of a Participant’s status within
or among the Company and any Affiliates, so long as the Participant continues to be an Employee, director or consultant of the Company or any Affiliate. 

  

 10 

 B. Termination for Disability. Except as otherwise provided in the pertinent Option Agreement, a
Participant who ceases to be an Employee, director or consultant of the Company or of an Affiliate by reason of Disability may exercise any Option granted to such Participant: 
  

	 	a.	To the extent exercisable but not exercised on the date of Disability; and 

  

	 	b.	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion of any additional rights as would have accrued had the Participant not become
Disabled prior to the end of the accrual period which next ends following the date of Disability. The proration shall be based upon the number of days of such accrual period prior to the date of Disability. 

  
 A Disabled Participant may exercise such rights only within the period ending
one (1) year after the date of the Participant’s termination of employment, directorship or consultancy, as the case may be, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a
later date if the Participant had not become Disabled and had continued to be an Employee, director or consultant or, if earlier, within the originally prescribed term of the Option. 
  
 C. Termination Due to Death. Except as otherwise provided in the pertinent Option Agreement, in the event of the
death of a Participant while the Participant is an Employee, director or consultant of the Company or of an Affiliate, such Option may be exercised by the Participant’s Survivors: 
  

	 	a.	To the extent exercisable but not exercised on the date of death; and 

  

	 	b.	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion of any additional rights which would have accrued had the Participant not died
prior to the end of the accrual period which next ends following the date of death. The proration shall be based upon the number of days of such accrual period prior to the Participant’s death. 

  
 If the Participant’s Survivors wish to exercise the Option, they must
take all necessary steps to exercise the Option within one (1) year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or
she had not died and had continued to be an Employee, director or consultant or, if earlier, within the originally prescribed term of the Option. 
  

	13.	EFFECT OF TERMINATION OF SERVICE ON STOCK GRANTS. 

  
 A. General. In the event of a termination of service (whether as an Employee, director or consultant) with the Company or an Affiliate for any
reason before the Participant has accepted the offer of, and complied with all purchase or acquisition 

  

 11 

 
requirements under, a Stock Grant in accordance with its terms, such offer of a Stock Grant shall terminate. 
  
 For purposes of this Paragraph 13, a Participant to whom a Stock Grant has
been offered under the Plan who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other than a “Disability”), or who is on leave of absence for any purpose, shall not, during the
period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly
provide. 
  
 In addition, for purposes of this Paragraph 13, any
change of employment or other service within or among the Company and any Affiliates shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an Employee, director or consultant
of the Company or any Affiliate. 
  
 Except as otherwise provided
in the pertinent Stock Grant Agreement, in the event of a termination of service (whether as an Employee, director or consultant), other than due to Disability or death for which events there are special rules in subparagraphs B and C, the Company
shall have the right to repurchase all unvested Shares at the original purchase price. 
  
 B. Termination Due to Disability. Except as otherwise provided in the pertinent Stock Grant Agreement, if a Participant ceases to be an Employee, director or consultant of the Company or of an Affiliate by
reason of Disability, the Company and shall have the right to purchase all unvested Shares at the original purchase price, to the extent such rights of repurchase are to lapse periodically after the date of Disability, such rights of repurchase
shall lapse on a pro rata portion of the Shares subject to such Stock Grant as would have lapsed had the Participant not become Disabled prior to the end of the vesting period which next ends following the date of Disability. The proration shall be
based upon the number of days of such vesting period prior to the date of Disability. 
  
 C. Termination Due to Death. Except as otherwise provided in the pertinent Stock Grant Agreement in the event of the death of a Participant while the Participant is an Employee, director or consultant of the
Company or of an Affiliate, the Company shall have the right to repurchase unvested Shares at the original purchase price. To the extent such rights of repurchase are to lapse periodically after the date of death, such rights of repurchase shall
lapse on a pro rata portion of the Shares subject to such Stock Grant as would have lapsed had the Participant not died prior to the end of the vesting period following the date of death. The proration shall be based upon the number of days of such
vesting period prior to the Participant’s death. 
  

	14.	PURCHASE FOR INVESTMENT. 

  
 Unless the offering and sale of the Shares to be issued upon the particular exercise or acceptance of a Stock Right shall have been effectively registered
under the Securities 

  

 12 

 
Act of 1933, as now in force or hereafter amended (the “1933 Act”), the Company shall be under no obligation to issue the Shares covered by such
exercise unless and until the following conditions have been fulfilled: 
  

	 	a.	The person(s) who exercise(s) or accept(s) such Stock Right shall warrant to the Company, prior to the receipt of such Shares, that such person(s) are acquiring such Shares for
their own respective accounts, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the following legend
which shall be endorsed upon the certificate(s) evidencing their Shares issued pursuant to such exercise or such grant: 

  
 “The shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person,
including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an
exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.” 
  

	 	b.	At the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular exercise or acceptance in
compliance with the 1933 Act without registration thereunder. 

  
 In the event that the Company shall deem it necessary or desirable to register under the 1933 Act or other applicable statutes any Shares with respect to which a Stock Right shall have been exercised, or to qualify
any such Shares for exemption from the 1933 Act or other applicable statutes, then the Company may take such action and may require from each Participant such information in writing for use in any registration statement, supplementary registration
statement, prospectus, preliminary prospectus or offering circular as is reasonably necessary for such purpose and may require reasonable indemnity to the Company and its officers and directors from such holder against all losses, claims, damages
and liabilities arising from such use of the information so furnished and caused by any untrue statement of any materials fact therein or caused by the omission to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances under which they were made. 
  

	15.	DISSOLUTION OR LIQUIDATION OF THE COMPANY. 

  
 Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all Stock
Grants which 

  

 13 

 
have not been accepted will terminate and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have
not otherwise terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior to such dissolution or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is
exercisable or subject to acceptance as of the date immediately prior to such dissolution or liquidation. 
  

	16.	ADJUSTMENTS. 

  
 Upon the occurrence of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall be
adjusted as hereinafter provided, unless otherwise specifically provided in the pertinent Option Agreement or Stock Grant Agreement: 
  
 A. Stock Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares
or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with
respect to such shares of Common Stock, the number of shares of Common Stock deliverable upon the exercise or acceptance of such Stock Right shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made in
the purchase price per share to reflect such events. 
  
 B.
Consolidations or Mergers. If the Company is to be consolidated with or acquired by another entity in a merger, consolidation, private sale or sale of all or substantially all of the Company’s assets or otherwise (an
“Acquisition”), the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”), shall, as to outstanding Options, either (i) make appropriate provision for the
continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Acquisition or securities
of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that all Options must be exercised (to the extent then exercisable after taking into account any applicable acceleration of vesting) at the end of which
period the Options shall terminate; or (iii) terminate all Options in exchange for a cash payment equal to the excess of the Fair Market Value of the Shares subject to such Options (to the extent then exercisable after taking into account any
applicable application of vesting) over the exercise price thereof. 
  
 With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall either (i) make appropriate provisions for the continuation of such Stock Grants by substituting on an equitable basis for the Shares then subject to
such Stock Grants either the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Acquisition or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide
that all Stock 

  

 14 

 
Grants must be accepted (to the extent then subject to acceptance) within a specified number of days of the date of such notice, at the end of which period
the offer of the Stock Grants shall terminate; or (iii) terminate all Stock Grants in exchange for a cash payment equal to the excess of the Fair Market Value of the Shares subject to such Stock Grants over the purchase price thereof, if any. In
addition, in the event of an Acquisition, the Administrator may waive any or all Company repurchase rights with respect to outstanding Stock Grants. 
  
 C. Recapitalization or Reorganization. In the event of a recapitalization or reorganization of the Company (other than a transaction described in
Subparagraph B above) pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising or accepting a Stock Right shall be entitled to receive, for
the purchase price, if any, paid upon such exercise or acceptance, the securities which would have been received if such Stock Right had been exercised or accepted prior to such recapitalization or reorganization. 
  
 D. Modification of ISOs. Notwithstanding the foregoing, any
adjustments made pursuant to Subparagraph A, B or C with respect to ISOs shall be made only after the Administrator, after consulting with counsel for the Company, determines whether such adjustments would constitute a “modification” of
such ISOs (as that term is defined in Section 424(h) of the Code) or would cause any adverse tax consequences for the holders of such ISOs. If the Administrator determines that such adjustments made with respect to ISOs would constitute a
modification of such ISOs, it may refrain from making such adjustments, unless the holder of an ISO specifically requests in writing that such adjustment be made and such writing indicates that the holder has full knowledge of the consequences of
such “modification” on his or her income tax treatment with respect to the ISO. 
  

	17.	ISSUANCES OF SECURITIES. 

  
 Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any
class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in
property (including without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right. 
  

	18.	FRACTIONAL SHARES. 

  
 No fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional
shares equal to the Fair Market Value thereof. 
  

 15 

	19.	CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs. 

  
 The Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such
Participant’s ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the Participant is an Employee of the Company
or an Affiliate at the time of such conversion. Such actions may include, but not be limited to, extending the exercise period or reducing the exercise price of the appropriate installments of such Options. At the time of such conversion, the
Administrator (with the consent of the Participant) may impose such conditions on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such conditions shall not be inconsistent with
this Plan. Nothing in the Plan shall be deemed to give any Participant the right to have such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator takes appropriate
action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such conversion. 
  

	20.	WITHHOLDING. 

  
 In the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings or
other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary, wages or other remuneration in connection with the exercise or acceptance of a Stock Right or in connection with a
Disqualifying Disposition (as defined in Paragraph 21) or upon the lapsing of any right of repurchase, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance in cash to the Company, or
to any Affiliate of the Company which employs or employed the Participant, the amount of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock or a promissory note, is authorized
by the Administrator (and permitted by law). For purposes hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner provided in Paragraph 1 above, as of the most recent practicable
date prior to the date of exercise and shall not exceed the minimum amount required by law to be withheld. If the fair market value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to
advance the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise of an Option for less than the then Fair Market Value on the Participant’s payment of such additional
withholding. 
  

	21.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION. 

  
 Each Employee who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any
shares acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is any 

  

 16 

 
disposition (including any sale) of such shares before the later of (a) two (2) years after the date the Employee was granted the ISO, or (b) one (1) year
after the date the Employee acquired Shares by exercising the ISO. If the Employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter. 
  

	22.	TERMINATION OF THE PLAN. 

  
 The Plan will terminate on, the date which is ten (10) years from the earlier of the date of its adoption and the date of its approval by the stockholders
of the Company. The Plan may be terminated at an earlier date by vote of the Administrator or by the Requisite Stockholder Vote (as defined herein) provided, however, that any such earlier termination shall not affect any Option Agreements or Stock
Grant Agreements executed prior to the effective date of such termination. 
  

	23.	AMENDMENT OF THE PLAN AND AGREEMENTS. 

  
 The Plan may be amended by the Administrator, including, without limitation, to the extent necessary to qualify any or all outstanding Stock Rights
granted under the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock options under Section 422 of the Code, and to the extent
necessary to qualify the shares issuable upon exercise or acceptance of any outstanding Stock Rights granted, or Stock Rights to be granted, under the Plan for listing on any national securities exchange or quotation in any national automated
quotation system of securities dealers. Any amendment approved by the Administrator which the Administrator determines is of a scope that requires stockholder approval shall be subject to obtaining the Requisite Stockholder Vote (as defined herein);
provided, however, that the Administrator may not, without obtaining the Requisite Stockholder Vote, increase the maximum number of shares for which Stock Rights may be granted (except by operation of Sections 3 and 16 above) or change the
designation of the class of persons eligible to receive ISOs under the Plan. Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously granted to him
or her. With the consent of the Participant affected, the Administrator may amend outstanding Option Agreements and Stock Grant Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In the
discretion of the Administrator, outstanding Option Agreements and Stock Grant Agreements may be amended by the Administrator in a manner which is not adverse to the Participant. 
  

	24.	EMPLOYMENT OR OTHER RELATIONSHIP. 

  
 Nothing in this Plan or any Option Agreement or Stock Grant Agreement shall be deemed to prevent the Company or an Affiliate from terminating the
employment, consultancy or director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any 

  

 17 

 
Participant a right to be retained in employment or other service by the Company or any Affiliate for any period of time. 
  

	25.	RESTRICTION ON ISSUE OF SHARES. 

  
 (a) Notwithstanding the provisions of Paragraph 8, the Company may delay the issuance of Shares covered by the exercise of an option and the delivery of a
certificate for such Shares until the delivery or distribution of any shares issued under this Plan complies with all applicable laws (including without limitation, the 1933 Act), and with the applicable rules of any stock exchange upon which the
shares of the Company are listed or traded. 
  
 (b) It is intended
that all exercises of options shall be effective, and the Company shall use its best efforts to bring about compliance with all applicable legal and regulatory requirements within a reasonable time, except that the Company shall be under no
obligation to qualify Shares or to cause a registration statement or a post-effective amendment to any registration statement to be prepared for the purpose of covering the issue of Shares in respect of which any option may be exercised, except as
otherwise agreed to by the Company in writing. 
  

	26.	COMPLIANCE WITH RULE 16B-3. 

  
 It is intended that the provisions of the Plan and any Stock Right granted hereunder to a person subject to the reporting requirements of Section 16(a) of
the 1934 Act shall comply in all respects with the terms and conditions of Rule 16b-3, or any successor provisions. Any agreement granting Stock Rights shall contain such provisions as are necessary or appropriate to assure such compliance. To the
extent that any provision hereof is found not to be in compliance with such Rule 16b-3, such provision shall be deemed to be modified so as to be in compliance with such Rule 16b-3, or if such modification is not possible, shall be deemed to be null
and void, as it relates to a recipient subject to Section 16(a) of the 1934 Act. 
  

	27.	RESERVATION OF STOCK. 

  
 The Company shall at all times during the term of the Plan reserve and keep available such number of Shares as will be sufficient to satisfy the
requirements of the Plan and shall pay all fees and expenses necessarily incurred by the Company in connection therewith. 
  

 18 

	28.	NOTICES. 

  
 Any communication or notice required or permitted to be given under the Plan shall be in writing, and mailed by registered or certified mail or delivered
by hand, if to the Company, to its principal place of business, attention: General Counsel, and, if to a Participant, to the address as appearing on the records of the Company. 
  

	29.	GOVERNING LAW. 

  
 This Plan shall be construed and enforced in accordance with the internal substantive laws of The State of Delaware. 
  

	30.	APPROVAL OF STOCKHOLDERS. 

  
 The Plan shall be subject to approval by the vote of the stockholders holding shares representing at least a majority of the voting power of the
outstanding shares (on a fully diluted basis) of the Company present, or represented, and entitled to vote at a duly held stockholders’ meeting, or by written consent of the stockholders as provided for under applicable state law (the
“Requisite Stockholder Vote”), within twelve (12) months after the adoption of the Plan by the Board of Directors and shall take effect as of the date of adoption by the Board of Directors upon such approval. The Committee may not grant
Stock Rights under the Plan prior to such approval. 
  

 19 

 SCHEDULE A 
  
 TO 2003 AMENDED AND RESTATED STOCK INCENTIVE PLAN 
  
 DEFINITIONS 
  
 “Administrator” means the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means
the Committee. 
  
 “Affiliate” means a corporation which, for
purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect. 
  
 “Board of Directors” means the Board of Directors of the Company. 
  
 “Code” means the United States Internal Revenue Code of 1986, as amended, and all rules and regulations promulgated thereunder by the regulatory agencies
with authority thereunder. 
  
 “Committee” means the committee of
the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan. 
  
 “Common Stock” means shares of the Company’s Class B Common Stock, $.01 par value per share. 
  
 “Company” means Marchex, Inc., a Delaware corporation. 
  
 “Disability” or “Disabled” means permanent and total
disability as defined in Section 22(e)(3) of the Code. The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement
between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination
shall be paid for by the Company. 
  
 “Employee” means an
employee of the Company, an Affiliate or a Strategic Partner (including, without limitation, an employee who is also serving as an officer or director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted
one or more Stock Rights under the Plan. 
  
 “Fair Market Value”
of a Share of Common Stock means: 
  
 (1) If the Common Stock is
listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or last price of the Common Stock on the composite tape or other comparable reporting system
for the trading day immediately preceding the applicable date; 
  

 20 

 (2) If the Common Stock is not traded on a national securities exchange but is traded on the
over-the-counter market, if sales prices are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked
price for the Common Stock at the close of trading in the over-the-counter market for the trading day on which Common Stock was traded immediately preceding the applicable date; and 
  
 (3) If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such
value as the Administrator, in good faith, shall determine. 
  
 “ISO” means an option meant to qualify as an incentive stock option under Section 422 of the Code. 
  
 “Non-Qualified Option” means an option which is not intended to qualify as an ISO. 
  
 “Option” means an ISO or Non-Qualified Option granted under the Plan. 
  
 “Option Agreement” means an agreement between the Company and a Participant
delivered pursuant to the Plan, in such form as the Administrator shall approve. 
  
 “Participant” means a Employee, director or consultant of the Company or its Affiliates to whom one or more Stock Rights are granted under the Plan and who are eligible to participate in this Plan under Paragraph 2. As used
herein, “Participant” shall include “Participant’s Survivors” where the context requires. 
  
 “Plan” means this Marchex, Inc. 2003 Amended and Restated Stock Incentive Plan. 
  
 “Shares” means shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares
of capital stock into which the Shares are changed or for which they are exchanged within the provisions of the Plan. 
  
 “Stock Grant” means a grant by the Company of Shares under the Plan also means the grant by the Company of a right to purchase Shares under a restricted
stock purchase arrangement on terms that the Administrator deems appropriate. 
  
 “Stock Grant Agreement” means an agreement between the Company and a Participant delivered pursuant to the Plan, in such form as the Administrator shall approve. 
  
 “Stock Right” means a right to Shares of the Company granted pursuant to the Plan under a ISO, a Non-Qualified Option or a
Stock Grant. 
  

 21 

 “Strategic Partners” means any contractor, joint venture partner or other entity having a relationship
with the Company, which relationship the Administrator, at its discretion, determines will promote the success of the Company. 
  
 “Survivors” means a deceased Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock
Right by will or by the laws of descent and distribution. 
  

 22

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