Document:

Employee Stock Purchase Plan

 Exhibit 10.19 
  
 TARANTELLA, INC. 
 EMPLOYEE STOCK
PURCHASE PLAN 
  
 The following constitute the provisions of the Employee
Stock Purchase Plan of Tarantella, Inc. 
  

	1.	 	Purpose. 

  
 The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company
through accumulated payroll deductions. It is the intention of the company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of the Plan,
accordingly, shall be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code. 
  

	2.	 	Definitions. 

  

	 	a)	 	“Board” shall mean the Board of Directors of the Company. 

  

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

  

	 	c)	 	“Common Stock” shall mean the Common Stock of the Company. 

  

	 	d)	 	“Company” shall mean Tarantella, Inc., a California corporation. 

  

	 	e)	 	“Compensation” shall include all base pay, overtime pay, bonus and commissions and shall exclude all other amounts. 

  

	 	f)	 	“Designated Subsidiaries” shall mean the Subsidiaries which have been designated by the Board from time to time in its sole discretion as eligible to participate in
the Plan. 

  

	 	g)	 	“Employee” shall mean any individual who is a regular employee of the Company for purposes of tax withholding under the Code whose customary employment with the
Company or any Designated Subsidiary regardless of the number of hours worked. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by
the Company. Where the period of leave exceeds ninety (90) days and the individual’s right to employment is not guaranteed either by statute or by contract, the employment relationship will be deemed to have terminated on the 91st day of such
leave. 

  

	 	h)	 	“Enrollment Date” shall mean the first day of each Offering Period. 

  

	 	i)	 	“Exercise Date” shall mean the last day of each Offering Period. 

  

	 	j)	 	“Fair Market Value” shall mean, as of any date, the value of Common Stock determined as follows: 

  

	 	i)	 	If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the National Market System of the National Association of
Securities Dealers, Inc. Automated Quotation (“Nasdaq”) System, its Fair Market Value shall be the closing sale price for the Common Stock (or the mean of the closing bid and asked prices, if no sales were reported), as quoted on such
exchange (or the exchange with the greatest volume of trading in Common Stock) or system on the date of such determination, as reported in The Wall Street Journal or such other source as the Board deems reliable, or; 

  

	 	ii)	 	If the Common Stock is quoted on the Nasdaq system (but not on the National Market System thereof) or is regularly quoted by a recognized securities dealer but selling prices are
not reported, its Fair Market Value shall be the mean of the closing bid and asked prices for the Common Stock on the date of such determination, as reported in The Wall Street Journal or such other source as the Board deems reliable, or;

  

	 	iii)	 	In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 

  

	 	iv)	 	For purposes of the Enrollment Date under the first Offering Period under the Plan, the Fair Market Value of the Common Stock shall be the Price to Public as set forth in the final
prospectus filed with the Securities and Exchange commission pursuant to Rule 424 under the Securities Act of 1933, as amended. 

  

	 	k)	 	“Offering Period” shall mean a period of approximately six (6) months, commencing on the first Trading Day on or after February 1 and terminating on the last
Trading Day in the period ending the following July 31, or commencing on the first Trading Day on or after August 1 and terminating on the last Trading Day in the period ending the following January 31, during which an option granted pursuant to the
Plan may be exercised. The duration, commencement and termination of Offering Periods may be changed pursuant to Section 4 of this Plan. 

  

	 	l)	 	“Purchase Price” shall mean an amount equal to 85% of the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is
lower. 

  

	 	m)	 	“Reserves” shall mean the number of shares of Common Stock covered by each option under the Plan which have not yet been exercised and the number of shares of
Common Stock which have been authorized for issuance under the Plan but not yet placed under option. 

  

	 	n)	 	“Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not
such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 

  

	 	o)	 	“Trading Day” shall mean a day on which national stock exchanges and the National Association of Securities Dealers Automated Quotation (Nasdaq) System are open for
trading. 

  

	3.	 	Eligibility. 

  

	 	a)	 	Any Employee (as defined in Section 2(g)), who shall be employed by the Company on a given Enrollment Date shall be eligible to participate in the Plan. 

  

	 	b)	 	Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan 

  

	 	i)	 	to the extent, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own
capital stock of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Subsidiary, or

  

	 	ii)	 	to the extent his or her rights to purchase stock under all employee stock purchase plans of the Company and its subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand
Dollars ($25,000) worth of stock (determined at the fair market value of the shares at the time such option is granted) for each calendar year in which such option is outstanding at any time. 

  

	4.	 	Offering Periods. 

  
 The Plan shall be implemented by consecutive Offering Periods with a new Offering Period commencing on the first Trading Day on or after February 1 and
August 1 each year, or on such other date as the Board shall determine, and continuing thereafter until terminated in accordance with Section 19 hereof. The Board shall have the power to change the duration, commencement and termination of Offering
Periods with respect to future offerings without shareholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected thereafter. 
  

	5.	 	Participation. 

  

	 	a)	 	An eligible Employee may become a participant in the Plan by completing a subscription agreement authorizing payroll deductions in the form of Exhibit A to this Plan and filing it
with the Company’s payroll office at least ten business days prior to the applicable Enrollment Date, however, a later date, prior to the applicable Enrollment Date may be established for all eligible Employees to enroll in a given Offering
Period. 

  

	 	b)	 	Payroll deductions for a participant shall commence on the first payroll following the enrollment Date and shall end on the last payroll in the Offering Period to which such
authorization is applicable, unless sooner terminated by the participant as provided in Section 10 hereof. 

  

	6.	 	Payroll Deductions. 

  

	 	a)	 	At the time a participant files his or her subscription agreement, he or she shall elect to have payroll deductions made on each pay day during the Offering Period in an amount of
at least one percent (1%) and not exceeding ten percent (10%) of the Compensation which he or she receives on each pay day during the Offering Period, and the aggregate of such payroll deductions during the Offering Period shall not exceed ten
percent (10%) of the participant’s Compensation during said Offering Period. 

  

	 	b)	 	All payroll deductions made for a participant shall be credited to his or her account under the Plan and will be withheld in whole percentages only. A participant may not make any
additional payments into such account. 

  

	 	c)	 	A participant may discontinue his or her participation in the Plan as provided in Section 10 hereof, or may increase or decrease the rate of his or her payroll deductions during the
Offering Period by completing or filing with the Company a new subscription agreement authorizing a change in payroll deduction rate. The Board may, in its discretion, limit the number of participation rate changes during any Offering Period. The
change in rate shall be effective with the first full payroll period following five (5) business days after the Company’s receipt of the new subscription agreement unless the Company elects to process a given change in participation more
quickly. A participant’s subscription agreement shall remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof. 

  

	 	d)	 	Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant’s payroll deductions may be decreased
to 0% at such time during any Offering Period which is scheduled to end during the current calendar year (the “Current Offering Period”) that the aggregate of all payroll deductions which were previously used to purchase stock under the
Plan in a prior Offering Period which ended during that calendar year plus all payroll deductions accumulated with respect to the Current Offering Period equal $21,250. Payroll deductions shall recommence at the rate provided in such
participant’ s subscription agreement at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10 hereof. 

  

	 	e)	 	 At the time the option is exercised, in whole or in part, or at the time some or all of the Company’s Common Stock issued under the Plan is disposed of, the
participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but will
not be obligated 

  

	 	 
to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any
withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Employee. 

  

	7.	 	Grant of Option. 

  
 On the Enrollment Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on the
Exercise Date of such Offering Period (at the applicable Purchase Price) up to a number of shares of the Company’s Common Stock determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained
in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall an Employee be permitted to purchase during each Offering Period more than a number of Shares determined by dividing $12,500
by the Fair Market Value of a share of the Company’s Common Stock on the Enrollment Date (the “Number”), except that for purposes of the first Offering period under the Plan, the Number shall be calculated by dividing $25,000 by the
Fair Market Value of a share of the Company’s Common Stock on the Enrollment Date, and provided further that all such purchases shall be subject to the limitations set forth in Sections 3(b) and 12 hereof. Exercise of the option shall occur as
provided in Section 8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof, and shall expire on the last day of the Offering Period. 
  

	8.	 	Exercise of Option. 

  
 Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares will be exercised
automatically on the Exercise Date, and the maximum number of full shares subject to option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. No fractional shares
will be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in the participant’ s account for the subsequent Offering Period, subject to earlier
withdrawal by the participant as provided in Section 10 hereof. Any other moneys left over in a participant’s account after the Exercise Date shall be returned to the participant. During a participant’s lifetime, a participant’s
option to purchase shares hereunder is exercisable only by him or her. 
  

	9.	 	Delivery. 

  
 As promptly as practicable after each Exercise Date on which a purchase of shares occurs, the Company shall arrange the delivery to each participant, as
appropriate, of a certificate representing the shares purchased upon exercise of his or her option. 
  

	10.	 	Withdrawal; Termination of Employment. 

  

	 	a)	 	A participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time
by giving written notice to the Company in the form of Exhibit B to this Plan. All of the participant’s payroll deductions credited to his or her account will be paid to such participant promptly after receipt of notice of withdrawal and such
participant’s option for the Offering Period will be automatically terminated, and no further payroll deductions for the purchase of shares will be made during the Offering Period. If a participant withdraws from an Offering Period, payroll
deductions will not resume at the beginning of the succeeding Offering Period unless the participant delivers to the Company a new subscription agreement. 

  

	 	b)	 	Upon a participant’s ceasing to be an Employee (as defined in Section 2(g) hereof), for any reason he or she will be deemed to have elected to withdraw from the Plan and the
payroll deductions credited to such participant’ s account during the Offering Period but not yet used to exercise the option will be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto
under Section 14 hereof, and such participant’s option will be automatically terminated. 

  

	 	c)	 	A participant’s withdrawal from an Offering Period will not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the
Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws. 

  

	11.	 	Interest. 

  
 No interest shall accrue on the payroll deductions of a participant in the Plan. 
  

	12.	 	Stock. 

  

	 	a)	 	The maximum number of shares of the Company’s Common Stock which shall be made available for sale under the Plan shall be 5,250,000 shares, subject to adjustment upon changes
in capitalization of the Company as provided in Section 18 hereof. If on a given Exercise Date the number of shares with respect to which options are to be exercised exceeds the number of shares then available under the Plan, the Company shall make
a pro rata allocation of the shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable. 

  
 Notwithstanding the foregoing, at any such time as the offer and sale of securities pursuant to the Plan is subject to
compliance with Section 260.140.45 of Title 10 of the California Code of Regulations (“Section 260.140.45”), the total number of shares of Common Stock issuable upon the exercise of all outstanding options (together with options or
stock purchase rights outstanding under any other stock option plan of the Company) and the total number of shares provided for under any stock bonus or similar plan of the Company shall not exceed thirty percent (30%) (or such other higher
percentage limitation as may be approved by the shareholders of the Company pursuant to Section 260.140.45) of the then outstanding shares of the Company as calculated in accordance with the conditions and exclusions of Section 260.140.45

  

	 	b)	 	The participant will have no interest or voting right in shares covered by his option until such option has been exercised. 

  

	 	c)	 	Shares to be delivered to a participant under the Plan will be registered in the name of the participant or in the name of the participant and his or her spouse.

  

	13.	 	Administration. 

  

	 	a)	 	Administrative Body. The Plan shall be administered by the Board or a committee of members of the Board appointed by the Board. The Board or its committee shall have full and
exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and determination made by the Board or its
committee shall, to the full extent permitted by law, be final and binding upon all parties. 

  

	 	b)	 	Members of the Board who are eligible Employees are permitted to participate in the Plan, provided that: 

  

	 	i)	 	Members of the Board who are eligible to participate in the Plan may not vote on any matter affecting the administration of the Plan or the grant of any option pursuant to the Plan.

  

	 	ii)	 	If a Committee is established to administer the Plan, no member of the Board who is eligible to participate in the Plan may be a member of the Committee. 

 

	 	c)	 	Rule 16b-3 Limitations. Notwithstanding the provisions of Subsection (a) of this Section 13, in the event that Rule 16b-3 promulgated under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), or any successor provision (“Rule 16b-3”) provides specific requirements for the administrators of plans of this type, the Plan shall be only administered by such a body and in such a manner
as shall comply with the applicable requirements of Rule 16b-3. 

  

	14.	 	Designation of Beneficiary. 

  

	 	a)	 	The beneficiary(ies) designated by the participant to take under the life insurance program of the Company, or a beneficiary chosen by a participant is written designation to the
Company of a beneficiary shall receive any shares and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash. In addition, the same beneficiary(ies) shall receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option.

  

	 	b)	 	Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary
validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or
relative is known to the Company, then to such other person as the Company may designate. 

  

	15.	 	Transferability. 

  
 Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the
Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 14 hereof) by the participant. Any such attempt at assignment, transfer, pledge or
other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 10 hereof. 
  

	16.	 	Use of Funds. 

  
 All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be
obligated to segregate such payroll deductions. 
  

	17.	 	Reports. 

  
 Individual accounts will be maintained for each participant in the Plan. Statements of account will be given to participating Employees at least annually,
which statements will set forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the remaining cash balance, if any. 
  

	18.	 	Adjustments Upon Changes in Capitalization. 

  

	 	a)	 	Changes in Capitalization. Subject to any required action by the shareholders of the Company, the Reserves as well as the price per share of Common Stock covered by each
option under the Plan which has not yet been exercised shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock in the event of a stock split, reverse stock split, stock dividend,
recapitalization, combination, reclassification or other distribution of the Common Stock without the receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to
have been “effected without receipt of consideration”. Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. 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 of Common Stock subject to an option.

  

	 	b)	 	Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Offering Period will terminate immediately prior to the consummation
of such proposed action, unless otherwise provided by the Board. 

  

	 	c)	 	Merger or Asset Sale. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation,
each option under the Plan shall be assumed or an equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless the Board determines, in the exercise of its sole discretion and
in lieu of such assumption or substitution, to shorten the Offering Period then in progress by setting a new Exercise Date (the “New Exercise Date”) or to cancel each outstanding right to purchase and refund all sums collected from
participants during the Offering Period then in progress. If the Board shortens the Offering Period then in progress in lieu of assumption or substitution in the event of a merger or sale of assets, the Board shall notify each participant in
writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for his option has been changed to the New Exercise Date and that his option will be exercised automatically on the New Exercise Date, unless prior to
such date he has withdrawn from the Offering Period as provided in Section 10 hereof. For purposes of this paragraph, an option granted under the Plan shall be deemed to be assumed if, following the sale of assets or merger, the option confers the
right to purchase, for each share of option stock subject to the option immediately prior to the sale of assets or merger, the consideration (whether stock, cash or other securities or property) received in the sale of assets or merger by holders of
Common Stock for each share of Common Stock held on the effective date of the transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common
Stock); provided, however, that if such consideration received in the sale of assets or merger was not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Board may, with the consent of the
successor corporation and the participant, provide for the consideration to be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in fair market value to the per share consideration
received by holders of Common Stock and the sale of assets or merger. 

  

	 	d)	 	The Board may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common Stock covered by
each outstanding option, in the event the Company effects one or more reorganizations, recapitalization, rights offerings or other increases or reductions of shares of its outstanding Common Stock, and in the event of the Company being consolidated
with or merged into any other corporation. 

  

	19.	 	Amendment or Termination. 

  

	 	a)	 	The Board of Directors of the Company may at any time and for any reason terminate or amend the Plan. Except as provided in Section 18 hereof, no such termination can affect options
previously granted, provided that an Offering Period may be terminated by the Board of Directors on any Exercise Date if the Board determines that the termination of the Plan is in the best interests of the Company and its shareholders. Except as
provided in Section 18 hereof, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant. To the extent necessary to comply with Rule 16b-3 or under Section 423 of the Code (or any
successor rule or provision or any other applicable law or regulation), the Company shall obtain shareholder approval in such a manner and to such a degree as required. 

  

	 	b)	 	Without shareholder consent and without regard to whether any participant rights may be considered to have been “adversely affected,” the Board (or its committee) shall be
entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll
withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or
procedures as the Board (or its committee) determines in its sole discretion advisable which are consistent with the Plan. 

  

	 	c)	 	The Plan shall be approved by the shareholders of the Company within twelve (12) months of the date of adoption thereof by the Board. In addition, an amendment to the Plan must be
approved by the shareholders of the Company within twelve (12) months of the adoption of such amendment if such amendment would authorize the sale of more shares than are then authorized for issuance under the Plan pursuant to Section 12 or would
change the definition of the corporations that may be designated by the Board as Designated Subsidiaries. 

  

	20.	 	Notices. 

  
 All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when
received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
  

	21.	 	Conditions Upon Issuance of Shares. 

  
 Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto
shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and
the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an option, the Company may require the person exercising such option to represent and
warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by
any of the aforementioned applicable provisions of law. 
  

	22.	 	Term of Plan. 

  
 The Plan shall become effective upon the earlier to occur of its adoption by the Board of Directors or its approval by the shareholders of the Company. It
shall continue in effect for a term of ten (10) years unless sooner terminated under Section 19 hereof. 
  

	23.	 	Additional Restrictions of Rule 16b-3. 

  
 The terms and conditions of options granted hereunder to, and the purchase of shares by, persons subject to Section 16 of the Exchange Act shall comply
with the applicable provisions of Rule 16b-3. This Plan shall be deemed to contain, and such options shall contain, and the shares issued upon exercise thereof shall be subject to, such additional conditions and restrictions as may be required by
Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 
  

	24.	 	Provision of Information. 

  
 At least annually, copies of the Company’s balance sheet and income statement for the just completed fiscal year shall be made available to each
participant in the Plan. The Company shall not be required to provide such information to key employees whose duties in connection with the Company assure them access to equivalent information.2004 Incentive Stock Option Plan and form of Incentive Stock Option Agreement

 Exhibit 10.20 
  
 2004 INCENTIVE STOCK OPTION PLAN 
  

	1.	 	Purposes of the Plan. The purposes of this Stock Option Plan are: 

  
 to attract and retain the best available personnel for positions of substantial responsibility, 
  
 to provide additional incentive to Employees and Consultants, and

  
 to promote the success of the Company’s business.

  
 Options granted under the Plan may be Incentive Stock Options
or Nonstatutory Stock Options, as determined by the Administrator at the time of grant. Stock Purchase Rights may also be granted under the Plan. 
  

	2.	 	Definitions. As used herein, the following definitions shall apply: 

  

	 	(a)	 	“Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance with Section 4 of the Plan. 

  

	 	(b)	 	“Applicable Laws” means the legal requirements relating to the administration of stock option plans under state corporate and securities laws and the Code.

  

	 	(c)	 	“Board” means the Board of Directors of the Company. 

  

	 	(d)	 	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	 	(e)	 	“Committee” means a Committee appointed by the Board in accordance with Section 4 of the Plan. 

  

	 	(f)	 	“Common Stock” means the Common Stock of the Company. 

  

	 	(g)	 	“Company” means Tarantella, Inc., a California corporation. 

  

	 	(h)	 	“Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services and who is compensated for such services,
provided that the term “Consultant” shall not include Directors who are paid only a director’s fee by the Company or who are not compensated by the Company for their services as Directors. 

  

	 	(i)	 	“Continuous Status as an Employee or Consultant” means that the employment or consulting relationship is not interrupted or terminated by the Company, any Parent or
Subsidiary. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of: (i) any leave of absence approved by the Company, including sick leave, military leave, or any other personal leave; provided, however,
that for purposes of Incentive Stock Options, any such leave may not exceed ninety (90) days, unless reemployment upon the expiration of such leave is guaranteed by contract (including certain Company policies) or statute or, if reemployment is not
so guaranteed, Continuous Status as an Employee or Consultant shall not be considered interrupted, but the Incentive Stock Option shall automatically be converted into a Nonstatutory Stock Option on the ninety-first (91st) day of such leave; or (ii)
transfers between locations of the Company or between the Company, its Parent, its Subsidiaries or its successor. 

  

	 	(j)	 	“Director” means a member of the Board. 

  

	 	(k)	 	“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 

  

	 	(l)	 	“Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. Neither service as a Director nor
payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 

  

	 	(m)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

  

	 	(n)	 	“Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 

  

	 	(i)	 	If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the National Market System of the National Association of
Securities Dealers, Inc. Automated Quotation (“NASDAQ”) System, the Fair Market Value of a Share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such system or
exchange (or the exchange with the greatest volume of trading in Common Stock) on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

  

	 	(ii)	 	If the Common Stock is quoted on the NASDAQ System (but not on the National Market System thereof) or is regularly quoted by a recognized securities dealer but selling prices are
not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination, as reported in The Wall Street Journal
or such other source as the Administrator deems reliable; 

  

	 	(iii)	 	In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator. 

  

	 	(o)	 	“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations
promulgated thereunder. 

  

	 	(p)	 	“Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 

  

	 	(q)	 	“Notice of Grant” means a written notice evidencing certain terms and conditions of an individual Option or Stock Purchase Right grant. The Notice of Grant is part
of the Option Agreement. 

  

	 	(r)	 	“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

  

	 	(s)	 	“Option” means a stock option granted pursuant to the Plan. 

  

	 	(t)	 	“Option Agreement” means a written agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The Option
Agreement is subject to the terms and conditions of the Plan. 

  

	 	(u)	 	“Option Exchange Program” means a program whereby outstanding options are surrendered in exchange for options with a lower exercise price. 

 

	 	(v)	 	“Optioned Stock” means the Common Stock subject to an Option or Stock Purchase Right. 

  

	 	(w)	 	“Optionee” means an Employee or Consultant who holds an outstanding Option or Stock Purchase Right. 

  

	 	(x)	 	“Parent” means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code. 

  

	 	(y)	 	“Plan” means this 2004 Incentive Stock Option Plan. 

  

	 	(z)	 	“Restricted Stock” means shares of Common Stock acquired pursuant to a grant of Stock Purchase Rights under Section 11 below. 

  

	 	(aa)	 	“Restricted Stock Purchase Agreement” means a written agreement between the Company and the Optionee evidencing the terms and restrictions applying to stock
purchased under a Stock Purchase Right. The Restricted Stock Purchase Agreement is subject to the terms and conditions of the Plan and the Notice of Grant. 

  

	 	(bb)	 	“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.

  

	 	(cc)	 	“Share” means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan. 

  

	 	(dd)	 	“Stock Purchase Right” means the right to purchase Common Stock pursuant to Section 11 of the Plan, as evidenced by a Notice of Grant. 

  

	 	(ee)	 	“Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 

  

	3.	 	Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares which may be optioned and sold under the Plan is
21,513,665 Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. However, should the Company reacquire Shares which were issued pursuant to the exercise of an Option or Stock Purchase Right, such Shares shall not become
available for future grant under the Plan. 

  
 If
an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated); provided, however, that Shares that have actually been issued under the Plan, whether upon exercise of an Option or Right, shall not be returned to the Plan and shall not become
available for future distribution under the Plan, except that if Shares of Restricted Stock are repurchased by the Company at their original purchase price, and the original purchaser of such Shares did not receive any benefits of ownership of such
Shares, such Shares shall become available for future grant under the Plan. For purposes of the preceding sentence, voting rights shall not be considered a benefit of Share ownership. 
  
 Notwithstanding the foregoing, at any such time as the offer and sale of securities pursuant to the Plan is subject to
compliance with Section 260.140.45 of Title 10 of the California Code of Regulations (“Section 260.140.45”), the total number of shares of Common Stock issuable upon the exercise of all outstanding Options or Stock Purchase Rights
(together with options or stock purchase rights outstanding under any other stock option plan of the Company) and the total number of shares provided for under any stock bonus or similar plan of the Company shall not exceed thirty percent (30%) (or
such other higher percentage limitation as may be approved by the shareholders of the Company pursuant to Section 260.140.45) of the then outstanding shares of the Company as calculated in accordance with the conditions and exclusions of Section
260.140.45. 
  

	4.	 	Administration of the Plan. 

  

	 	(a)	 	Administration. The Plan shall be administered by the Board, a Committee appointed by the Board or their designees, which Committee and designees shall be constituted to
comply with Applicable Laws. 

  

	 	(b)	 	Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee or
by either to their designees, the Administrator shall have the authority, in its discretion: 

  

	 	(i)	 	to determine the Fair Market Value of the Common Stock, in accordance with Section 2(n) of the Plan; 

  

	 	(ii)	 	to select the Consultants and Employees to whom Options and Stock Purchase Rights may be granted hereunder; 

  

	 	(iii)	 	to determine whether and to what extent Options and Stock Purchase Rights or any combination thereof, are granted hereunder; 

  

	 	(iv)	 	to determine the number of shares of Common Stock to be covered by each Option and Stock Purchase Right granted hereunder; 

  

	 	(v)	 	to approve forms of agreement for use under the Plan; 

  

	 	(vi)	 	to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder. Such terms and conditions include, but are not limited to, the
exercise price, the time or times when Options or Stock Purchase Rights may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any
Option or Stock Purchase Right or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 

  

	 	(vii)	 	to construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 

  

	 	(viii)	 	to prescribe, amend and rescind rules and regulations relating to the Plan; 

  

	 	(ix)	 	to modify or amend each Option or Stock Purchase Right (subject to Section 15(c) of the Plan); 

  

	 	(x)	 	to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option or Stock Purchase Right previously granted by the Administrator;

  

	 	(xi)	 	to institute an Option Exchange Program; 

  

	 	(xii)	 	to determine the terms and restrictions applicable to Options and Stock Purchase Rights and any Restricted Stock; and 

  

	 	(xiii)	 	to make all other determinations deemed necessary or advisable for administering the Plan. 

  

	 	(c)	 	Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations shall be final and binding on all Optionees and any other
holders of Options or Stock Purchase Rights. 

  

	5.	 	Eligibility. Nonstatutory Stock Options and Stock Purchase Rights may be granted to Employees, Directors and Consultants. Incentive Stock Options may be granted only to
Employees. If otherwise eligible, an Employee or Consultant who has been granted an Option or Stock Purchase Right may be granted additional Options or Stock Purchase Rights. 

  

	6.	 	Limitations. 

  

	 	(a)	 	Each Option shall be designated in the Notice of Grant as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designations, to the extent
that the aggregate Fair Market Value: 

  

	 	(i)	 	of Shares subject to an Optionee’s incentive stock options granted by the Company, any Parent or Subsidiary, which (ii) become exercisable for the first time during any
calendar year (under all plans of the Company or any Parent or Subsidiary) 

  

	 	(ii)	 	exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), incentive stock options shall be taken into account in the
order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the time of grant. 

  

	 	(b)	 	Neither the Plan nor any Option or Stock Purchase Right shall confer upon an Optionee any right with respect to continuing the Optionee’s employment or consulting relationship
with the Company, nor shall they interfere in any way with the Optionee’s right or the Company’s right to terminate such employment or consulting relationship at any time, with or without cause. 

  

	 	(c)	 	The following limitations shall apply to grants of Options and Stock Purchase Rights to Officers: 

  

	 	(i)	 	no Officer shall be granted in any fiscal year of the Company, Options and Stock Purchase Rights to purchase more than the number of shares issuable under the Plan; and

  

	 	(ii)	 	over the remaining term of the Plan, no Officer shall be granted Options and Stock Purchase Rights to purchase more than the number of shares issuable under the Plan.

  
 The foregoing limitations set forth in this
Section 6(c) are intended to satisfy the requirements applicable to Options and Stock Purchase Rights intended to qualify as “performance-based compensation” (within the meaning of Section 162(m) of the Code). In the event the
Administrator determines that such limitations are not required to qualify Options and Stock Purchase Rights as performance-based compensation, the Administrator may modify or eliminate such limitations. 
  

	7.	 	Term of Plan. The Plan became effective upon its adoption by the Board of Directors on October 28,1993. It shall continue in effect for a term of ten (10) years unless
terminated earlier under Section 15 of the Plan. 

  

	8.	 	Term of Option. The term of each Option shall be stated in the Notice of Grant; provided, however, that the term of an Option shall be ten (10) years from the date of grant
or such shorter term as may be provided in the Notice of Grant. Moreover, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Notice of Grant.

  

	9.	 	Option Exercise Price and Consideration. 

  

	 	(a)	 	Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator, subject to the following:

  

	 	(i)	 	In the case of an Incentive Stock Option 

  

	 	(A)	granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 

  

	 	(B)	granted to any Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 

  

	 	(ii)	 	In the case of a Nonstatutory Stock Option 

  

	 	(A)	granted to an Employee, Consultant or Director who, at the time the Nonstatutory Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of
all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 

  

	 	(B)	granted to any Employee, Consultant or Director, the per Share exercise price shall be no less than 85% of the Fair Market Value per Share on the date of grant.

  

	 	(iii)	 	Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value on the date of grant pursuant to a merger or other
corporate transaction. 

  

	 	(b)	 	Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any
conditions which must be satisfied before the Option may be exercised. In so doing, the Administrator may specify that an Option may not be exercised until the completion of a service period. Notwithstanding the foregoing, with the exception of an
Option granted to an Officer, a Director or a Consultant, no Option shall become exercisable at a rate less than twenty percent (20%) per year over a period of five (5) years from the effective date of grant of such Option, subject to the
Optionee’s continued employment or service. 

  

	 	(c)	 	Form of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an
Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant. Such consideration may consist entirely of: 

  

	 	(i)	 	cash; 

  

	 	(ii)	 	check; 

  

	 	(iii)	 	promissory note; 

  

	 	(iv)	 	surrender of other Shares which (i) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six (6) months on the date of surrender,
and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares; or 

  

	 	(v)	 	delivery of Optionee’s promissory note (the “Note”) in the form attached hereto as Exhibit C, in the amount of the aggregate Exercise Price of the Exercised Shares
together with the execution and delivery by the Optionee of the Security Agreement attached hereto as Exhibit B. The Note shall bear interest at a rate no less than the “applicable federal rate” prescribed under the Code and its
regulations at time of purchase, and shall be secured by a pledge of the Shares purchased by the Note pursuant to the Security Agreement; 

  

	 	(vi)	 	consideration to be received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 

  

	 	(iv)	 	any combination of the foregoing methods of payment; or 

  

	 	(v)	 	such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 

  

	10.	 	Exercise of Option. 

  

	 	(a)	 	Procedure for Exercise; Rights as a Shareholder. Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such
conditions as determined by the Administrator and set forth in the Option Agreement. 

  
 An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed exercised when the Company receives: (i) written notice of exercise (in accordance with the Option Agreement) from the person
entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option
Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the stock certificate evidencing such Shares is
issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the stock certificate is issued, except as provided in Section 13 of the Plan. 
  
 Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option,
by the number of Shares as to which the Option is exercised. 
  

	 	(b)	 	Termination of Employment or Consulting Relationship. In the event that an Optionee’s Continuous Status as an Employee or Consultant terminates (but not in the event of
a change of status from Employee to Consultant (in which case an Employee’s Incentive Stock Option shall automatically convert to a Nonstatutory Stock Option on the ninety-first (91st) day following such change of status) or from Consultant to
Employee), other than upon the Optionee’s death or Disability, the Optionee may exercise his or her Option, for at least thirty (30) days from the date of termination (or such longer period of time as is determined by the Administrator) and
only to the extent that the Optionee was entitled to exercise it at the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant). In the case of an Incentive Stock Option, the
Administrator shall determine such period of time (in no event to exceed three (3) months from the date of termination) when the Option is granted. If, at the date of termination, the Optionee is not entitled to exercise his or her entire Option,
the Shares covered by the unexercisable portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan. 

  

	 	(c)	 	Disability of Optionee. Notwithstanding the provisions of Section 10(b) above, in the event of termination of an Optionee’s Continuous Status as an Employee or
Consultant as a result of his Disability, Optionee may, but only within such period of time as is determined by the Administrator, of at least six (6) months (with such period of time in the case of an Incentive Stock Option not exceeding twelve
(12) months) from the date of such termination (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent otherwise entitled to exercise it at the date of such
termination. To the extent that Optionee was not entitled to exercise the Option at the date of termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate.

  

	 	(d)	 	Death of Optionee. In the event of the death of an Optionee: 

  

	 	(i)	 	during the term of the Option who is at the time of his or her death an Employee or Consultant of the Company and who shall have been in Continuous Status as an Employee or
Consultant since the date of grant of the Option, the Option may be exercised by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance until the term of the option, or such shorter period
as is set forth in the option agreement, expires, and the Option shall be treated for exercise purposes as if the Optionee had continued living and had remained in Continuous Status as an Employee or Consultant for six (6) months after the date of
death; or 

  

	 	(ii)	 	after the termination of an Optionee’s Continuous Status as an Employee or Consultant, the Option may be exercised by the Optionee’s estate or by a person who acquired the
right to exercise the Option by bequest or inheritance until the term of the option, or such shorter period as is set forth in the option agreement, expires, and the Option shall be treated for exercise purposes as if the Optionee had continued
living and had remained in Continuous Status as an Employee or Consultant through the date of Optionee’s death; and 

  

	 	(iii)	 	if an Option is not exercised within the time specified herein, the Option shall terminate. 

  

	 	(e)	 	Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares, an Option previously granted, based on such terms and conditions as the
Administrator shall establish and communicate to the Optionee at the time that such offer is made. 

  

	11.	 	Stock Purchase Rights. 

  

	 	(a)	 	Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of
the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing, by means of a Notice of Grant, of the terms, conditions and restrictions related to the offer, including
the number of Shares that the offeree shall be entitled to purchase, the price to be paid, and the time within which the offeree must accept such offer, which shall in no event exceed six (6) months from the date upon which the Administrator made
the determination to grant the Stock Purchase Right. The offer shall be accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the Administrator. 

  

	 	(b)	 	 Purchase Price. The purchase price under each Stock Purchase Right will be established by the Board; provided, however, that (i) that the purchase price per
share shall be at least eighty-five percent (85%) of the Fair Market Value of a share of Common Stock either on the effective date of 

  

	 	 
grant of the Stock Purchase Right or on the date on which the purchase is consummated and (ii) the purchase price per share under a Stock Purchase Right
granted to any person who owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary shall be at least 100% of the Fair Market Value of a share of Common Stock either on
the effective date of grant of the Stock Purchase Right or on the date on which the purchase is consummated. 

  

	 	(c)	 	Repurchase Option. Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option exercisable upon the
voluntary or involuntary termination of the purchaser’s employment with the Company for any reason (including death or Disability). The purchase price for Shares repurchased pursuant to the Restricted Stock purchase agreement shall be the
original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at a rate determined by the Administrator; provided, however, that with the exception of
shares acquired pursuant to a Stock Purchase Right by an Officer, Director, or Consultant, the Company’s repurchase option must lapse at the rate of at least twenty percent (20%) of the shares per year over the period of five (5) years from the
effective date of grant of the Stock Purchase Right (without regard to the date on which Stock Purchase Right was exercised) and the repurchase option must be exercised, if at all, for cash or cancellation of money indebtedness for the shares within
ninety (90) days following termination of employment or service. 

  

	 	(d)	 	Other Provisions. The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the
Administrator in its sole discretion. In addition, the provisions of Restricted Stock Purchase Agreements need not be the same with respect to each purchaser. 

  

	 	(e)	 	Rights as a Shareholder. Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to those of a shareholder, and shall be a shareholder when
his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised,
except as provided in Section 13 of the Plan. 

  

	12.	 	Non-Transferability of Options and Stock Purchase Rights. An Option or Stock Purchase Right may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in
any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 

  

	13.	 	Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset Sale or Change of Control. 

  

	 	(a)	 	Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Option and
Stock Purchase Right, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options or Stock Purchase Rights have yet been granted or which have been returned to the Plan upon cancellation
or expiration of an Option or Stock Purchase Right, as well as the price per share of Common Stock covered by each such outstanding Option or Stock Purchase Right, shall be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock in the event of a stock split, reverse stock split, stock dividend, recapitalization, combination, reclassification or other distribution of the Common Stock without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be
final, binding and conclusive. 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 of Common Stock subject to an Option or Stock Purchase Right. 

  

	 	(b)	 	Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, to the extent that an Option or Stock Purchase Right has not been
previously exercised, it will terminate immediately prior to the consummation of such proposed action. The Board may, in the exercise of its sole discretion in such instances, declare that any Option or Stock Purchase Right shall terminate as of a
date fixed by the Board and give each Optionee the right to exercise his or her Option or Stock Purchase Right as to all or any part of the Optioned Stock, including Shares as to which the Option or Stock Purchase Right would not otherwise be
exercisable. 

  

	 	(c)	 	Merger or Asset Sale. Subject to the provisions of paragraph (d) hereof, in the event of a merger of the Company with or into another corporation, or the sale of
substantially all of the assets of the Company, each outstanding Option and Stock Purchase Right shall be assumed or an equivalent option or right shall be substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation does not agree to assume the Option or Stock Purchase Right or to substitute an equivalent option or right, the Administrator shall, in lieu of such assumption or substitution, provide for the
Optionee to have the right to exercise the Option or Stock Purchase Right as to all or a portion of the Optioned Stock, including Shares as to which it would not otherwise be exercisable. If the Administrator makes an Option or Stock Purchase Right
exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee that the Option or Stock Purchase Right shall be fully exercisable for a period of fifteen (15) days from the
date of such notice, and the Option or Stock Purchase Right will terminate upon the expiration of such period. For the purposes of this paragraph, the Option or Stock Purchase Right shall be considered assumed if, following the merger or sale of
assets, the option or right confers the right to purchase, for each Share of Optioned Stock subject to the Option or Stock Purchase Right immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities
or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of
a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets was not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon the exercise of the Option or Stock Purchase Right, for each Share of Optioned Stock subject to the Option or Stock Purchase Right, to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 

  

	 	(d)	 	Change in Control. In the event of a “Change in Control” of the Company, as defined in paragraph (e) below, then the following acceleration and valuation provisions
shall apply: 

  

	 	(i)	 	Except as otherwise determined by the Administrator, in its discretion, prior to or after the occurrence of a Change in Control, any Options and Stock Purchase Rights outstanding on
the date such Change in Control is determined to have occurred that are not yet exercisable and vested on such date shall become fully exercisable and vested; 

  

	 	(ii)	 	Except as otherwise determined by the Administrator, in its discretion, prior to or after the occurrence of a Change in Control, all outstanding Options and Stock Purchase Rights,
to the extent they are exercisable and vested (including Options and Stock Purchase Rights that shall become exercisable and vested pursuant to subparagraph (i) above), shall be terminated in exchange for a cash payment equal to the Change in
Control Price, (reduced by the exercise price applicable to such Options or Stock Purchase Rights). These cash proceeds shall be paid to the Optionee or, in the event of death of an Optionee prior to payment, to the estate of the Optionee or to a
person who acquired the right to exercise the Option or Stock Purchase Right by bequest or inheritance. 

  

	 	(e)	 	Definition of “Change in Control”. For purposes of this Section 13, a “Change in Control” means the happening of any of the following:

  

	 	(i)	 	When any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, a Subsidiary or a Company employee benefit plan, including
any trustee of such plan acting as trustee) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than twenty-five percent (25%) of
the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors; or 

  

	 	(ii)	 	A merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least seventy-five percent (75%) of the total voting power represented by the voting
securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approve an agreement for the sale or disposition by the Company of all or substantially all the
Company’s assets; or 

  

	 	(iii)	 	A change in the composition of the Board of Directors of the Company occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent
Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date the Plan is approved by the stockholders, or (B) are elected, or nominated for election, to the Board of Directors of the
Company with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy
contest relating to the election of directors to the Company). 

  

	 	(f)	 	Change in Control Price. For purposes of this Section 13, “Change in Control Price” shall be, as determined by the Board, (i) the highest Fair Market Value of a
Share within the 60 day period immediately preceding the date of determination of the Change in Control Price by the Board (the “60-Day Period”), or (ii) the highest price paid or offered per Share, as determined by the Board, in any bona
fide transaction or bona fide offer related to the Change in Control of the Company, at any time within the 60-Day Period, or (iii) some lower price as the Board, in its discretion, determines to be a reasonable estimate of the fair market value of
a Share. 

  

	14.	 	Date of Grant. The date of grant of an Option or Stock Purchase Right shall be, for all purposes, the date on which the Administrator makes the determination granting such
Option or Stock Purchase Right, or such other later date as is determined by the Administrator. Notice of the determination shall be provided to each Optionee within a reasonable time after the date of such grant. 

  

	15.	 	Amendment and Termination of the Plan. 

  

	 	(a)	 	Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 

  

	 	(b)	 	Shareholder Approval. The Company shall obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply with Rule 16b-3 or with Section 422
of the Code (or any successor rule or statute or other applicable law, rule or regulation, including the requirements of any exchange or quotation system on which the Common Stock is listed or quoted). Such shareholder approval, if required, shall
be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation. 

  

 Any increase in the maximum aggregate number of shares of Common Stock issuable hereunder as provided in
Section 3 (the “Authorized Shares”) shall be approved by the majority of the outstanding securities of the Company entitled to vote within twelve (12) months before or after the date of adoption thereof by the Board. Options
or Stock Purchase Rights granted prior to shareholder approval of the Plan or in excess of the Authorized Shares previously approved by the shareholders shall become exercisable no earlier than the date of shareholder approval of the Plan or such
increase in the Authorized Shares, as the case may be. 
  

	 	(c)	 	Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise
between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. 

  

	16.	 	Conditions Upon Issuance of Shares. 

  

	 	(a)	 	Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option or Stock Purchase Right unless the exercise of such Option or Stock Purchase Right and the
issuance and delivery of such Shares shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, Applicable Laws, and
the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

  

	 	(b)	 	Investment Representations. As a condition to the exercise of an Option or Stock Purchase Right, the Company may require the person exercising such Option or Stock Purchase
Right to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required. 

  

	17.	 	Liability of Company. 

  

	 	(a)	 	Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

  

	 	(b)	 	Grants Exceeding Allotted Shares. If the Optioned Stock covered by an Option or Stock Purchase Right exceeds, as of the date of grant, the number of Shares which may be
issued under the Plan without additional shareholder approval, such Option or Stock Purchase Right shall be void with respect to such excess Optioned Stock, unless shareholder approval of an amendment sufficiently increasing the number of Shares
subject to the Plan is timely obtained in accordance with Section 15(b) of the Plan. 

  

	18.	 	Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan. 

  

	19.	 	Shareholder Approval. Continuance of the Plan shall be subject to approval by the shareholders of the Company within twelve (12) months before or after the date the Plan is
adopted. Such shareholder approval shall be obtained in the manner and to the degree required under applicable federal and state law. 

  

	20.	 	Provision of Information. At least annually, copies of the Company’s balance sheet and income statement for the just completed fiscal year shall be made available to
each Optionee and purchaser of shares of Common Stock upon the exercise of an Option or Stock Purchase Right. The Company shall not be required to provide such information to key employees whose duties in connection with the Company assure them
access to equivalent information.

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