Document:

EXHIBIT 4.3

 Exhibit 4.3 
  

  
  
 AMENDED AND RESTATED 
  
 SENIOR STOCKHOLDERS’ RIGHTS AGREEMENT 
  
  
 by and among 
  
 ADVERTISING.COM, INC. 
  
 AND 
  
 THE INVESTORS NAMED HEREIN 
  
  
 Dated as of June 23, 2000 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE I DEFINITIONS	  	2
	        Section 1.1.	  	Definitions.	  	2
	        Section 1.2	  	Additional Definitions.	  	6
		
	ARTICLE II PREEMPTIVE RIGHT	  	7
	        Section 2.1	  	Preemptive Right to Participate in Future Issuance of Equity Securities.	  	7
	        Section 2.2	  	Reserved Shares.	  	8
	        Section 2.3	  	Confidentiality.	  	9
		
	ARTICLE III STOCKHOLDER RESTRICTIONS	  	9
	        Section 3.1	  	Transfers Prohibited.	  	9
	        Section 3.2	  	Death of a Management Stockholder.	  	9
	        Section 3.3	  	Voluntary Transfers of Common Stock.	  	9
	        Section 3.4	  	Involuntary Transfers of Capital Stock.	  	10
	        Section 3.5	  	Purchase Price for Stock.	  	12
	        Section 3.6	  	Closing.	  	13
	        Section 3.7	  	Stock Covered.	  	14
	        Section 3.8	  	Ferber Transfer.	  	14
	        Section 3.9	  	Transfers to Competitors.	  	14
		
	ARTICLE IV REDEMPTION	  	15
	        Section 4.1	  	Reserved.	  	15
	        Section 4.2	  	Redemption of Series C Preferred.	  	15
	        Section 4.3	  	Redemption of Series E Preferred.	  	15
	        Section 4.4	  	Funds Insufficient to Effect Redemption.	  	16
		
	ARTICLE V RIGHT OF CO-SALE	  	16
		
	ARTICLE VI REGISTRATION RIGHTS	  	17
	        Section 6.1	  	Required Registrations.	  	17
	        Section 6.2	  	Limitations on Required Registration.	  	18
	        Section 6.3	  	Incidental (Piggyback) Registration.	  	19
	        Section 6.4	  	Limitations on Incidental Registration.	  	19
	        Section 6.5	  	Designation of Underwriter.	  	20
	        Section 6.6	  	Registration Procedures.	  	20
	        Section 6.7	  	Registration Expenses.	  	22
	        Section 6.8	  	Indemnification.	  	22
	        Section 6.9	  	Inclusion of Additional Shares in Required Registrations; Other Company Initiated Registrations.	  	25
	        Section 6.10	  	Rights Which May Be Granted to Other Persons.	  	25
	        Section 6.11	  	Rule 144 Requirements.	  	25
	        Section 6.12	  	Sale of Registrable Stock to Underwriter.	  	25
	        Section 6.13	  	Lockup Agreement.	  	26
	        Section 6.14	  	Transfer of Registration Rights.	  	26
	        Section 6.15	  	Effective Period of Registration.	  	26
	        Section 6.16	  	Changes in Preferred Stock or Common Stock.	  	26
		
	ARTICLE VII BOARD OF DIRECTORS	  	27

					
	        Section 7.1	  	Election of Directors.	  	27
	        Section 7.2	  	Vacancies.	  	27
		
	ARTICLE VIII COMPENSATION COMMITTEE	  	28
		
	ARTICLE IX MISCELLANEOUS	  	28
	        Section 9.1	  	Adjustments Affecting Registrable Securities.	  	28
	        Section 9.2	  	Specific Performance.	  	28
	        Section 9.3	  	Aggregation of Shares.	  	28
	        Section 9.4	  	Endorsement of Certificate.	  	28
	        Section 9.5	  	Term.	  	29
	        Section 9.6	  	Notices.	  	29
	        Section 9.7	  	Parties in Interest.	  	29
	        Section 9.8	  	Governing Law.	  	30
	        Section 9.9	  	Entire Agreement.	  	30
	        Section 9.10	  	Counterparts.	  	30
	        Section 9.11	  	Amendments.	  	30
	        Section 9.12	  	Severability.	  	30
	        Section 9.13	  	Titles and Subtitles.	  	30
	        Section 9.14	  	Pronouns.	  	30
	        Section 9.15	  	Amendment of Amended and Restated Stockholders’ Agreement.	  	31
	        Section 9.16	  	Senior Registration Rights Agreement.	  	31

 AMENDED AND RESTATED SENIOR STOCKHOLDERS’ RIGHTS AGREEMENT 
  
 THIS AMENDED AND RESTATED SENIOR STOCKHOLDERS’ RIGHTS AGREEMENT (this
“Agreement”) is dated as of June 23, 2000, and is by and among ADVERTISING.COM, INC., a Maryland corporation (formerly known as Teknosurf.com, Inc.) (the “Company”), each of the Investors listed on Schedule 1
attached hereto, each Additional Investor added to Schedule 1 after the date hereof who signs a Joinder to this Agreement, each of the Management Stockholders listed on Schedule 2 attached hereto, and each additional stockholder who
signs a joinder to this Agreement. The Investors, Additional Investors, Management Stockholders, and any other persons or entities (except the Company) becoming a party hereto or being bound by the provisions hereof are hereinafter sometimes
referred to collectively as “Stockholders”. 
  
 RECITALS 
  
 A. The Investors who hold
shares of Series C Convertible Preferred Stock, par value $.01 per share (“Series C Preferred”) are hereinafter referred to as “Series C Investors” and the Investors who hold Series E Convertible Preferred Stock,
par value $.01 per share (“Series E Preferred”), are hereinafter referred to as “Series E Investors.” Certain Investors hold both Series C Preferred and Series E Preferred and are included in the definitions of both
the Series C Investors and the Series E Investors. 
  
 B. The
Company, the Series C Investors, and the Management Stockholders entered into a Senior Stockholders’ Rights Agreement dated as of September 1, 1999 (the “Original Stockholders Agreement”) and in connection with the issuance and
sale of the Series E Preferred wish to amend and restate the Original Stockholders Agreement as set forth herein. 
  
 C. The Company and the Series E Investors are party to a Series E Convertible Preferred Stock Purchase Agreement dated as of June 23, 2000 (the
“Purchase Agreement”). A condition precedent to the obligations of the Company and the “Purchasers” (as that term is defined in the Purchase Agreement) under the Purchase Agreement is the execution and delivery of
this Agreement by the parties hereto. 
  
 D. On the date hereof,
(i) each Series C Investor owns that number of shares of the Company’s Series C Preferred as set forth opposite such Investor’s name in Schedule 1, (ii) each Series E Investor owns that number of shares of the Company’s Series
E Preferred, as set forth opposite such Investor’s name in Schedule 1, provided, however, that Schedule 1 hereto shall be amended from time to time to add “Additional Investors” (as that term is
defined in the Purchase Agreement) pursuant to the terms and conditions of the Purchase Agreement and purchasers or transferees of capital stock who execute and deliver a Joinder to this Agreement agreeing to be bound by the provisions hereof
(“Additional Investors”), and (iii) each Management Stockholder owns that number of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), set forth opposite such Management
Stockholder’s name in Schedule 2. 
  
 E. The Company
and the Stockholders desire, among other things, to ensure continuity and to perpetuate harmony in the Company’s management, policies and operations 
  

 and, to that end, wish to enter into this Agreement to provide certain rights and obligations among themselves.

  
 NOW, THEREFORE, in consideration of the premises and mutual
agreements, covenants and provisions herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  

	 	Section 1.1.	Definitions. 

  
 The following definitions shall be applicable to the terms set forth below as used in this Agreement: 
  
 “Additional Purchasers” shall have the
definition set forth in the Purchase Agreement. 
  
 “Additional Stockholder” shall mean any person who acquires by sale or transfer, in accordance with the terms of this Agreement, any Equity Securities and executes and delivers a Joinder to this Agreement agreeing to be
bound by the provisions hereof. 
  
 “Affiliate” shall mean, with respect to any Person, any other Person which directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person. 
  
 “Articles” shall mean the Company’s
Articles of Incorporation, as amended. 
  
 “Board” shall mean the Board of Directors of the Company. 
  
 “Blue Chip” shall mean Blue Chip Capital Fund III, an Ohio limited partnership. 
  
 “Business” shall mean the application of
information based analyses and technologies to the problem of intelligent Internet ad and content serving; maximizing the effective yield on traffic for both advertisers and Internet destinations with regard to advertising, e-commerce and content
placement; refining the use of the Internet as a direct marketing medium; developing and managing large data pools for the analytical processes; developing in house, or through external relationships, the ability to sell advertising, represent
Internet destinations and manage Internet traffic; developing ad and content networks, email, ezine and other Internet programs and destinations to provide Internet traffic; developing computer software and hardware products that deliver
individualized and/or targeted messages via the Internet; developing computer hardware and software products that track activities on Internet destinations as well as varied off-line media and systems; applying all products and services to a global
marketplace with local physical presence; leveraging the infrastructure and technology platform to run global advertising exchanges and networks; deploying advanced mathematical 
  

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 algorithms and heuristics to the administration of advertising and other similarly structured industrial
exchanges 
  
 “Capital Stock”
means the capital stock of the Company, including, without limitation, the Common Stock, the Series A Preferred, the Series B Preferred, the Series C Preferred, the Series D Preferred, and the Series E Preferred. 
  
 “Commission” shall mean the Securities and
Exchange Commission or any other federal agency at the time administering the federal securities laws. 
  
 “Company’s Notice” shall have the meaning set forth in Section 6.3 hereof. 
  
 “Compensation Committee” shall have the
meaning set forth in ARTICLE VIII hereof. 
  
 “Confidential Information” shall mean any non-public technical information, trade secrets, know-how, and any other proprietary or confidential information regarding the business affairs of the Company or any of its
respective Affiliates, employees, agents or assigns including, without limitation, any information concerning methods or business operations; information comprising the identity, lists or descriptions of any customers, potential customers or
referral sources; financial statements, cost reports or other financial information; contract proposals or bidding information; business plans and training and operations methods and manuals; personnel records; fee structure; and management systems,
policies or procedures, including related forms and manuals. Confidential Information shall not include any information (a) which is disclosed pursuant to subpoena or other legal process, (b) which has been publicly disclosed without breach of
applicable confidentiality restrictions, or (c) which is subsequently disclosed by any third party not in breach of a confidentiality agreement. 
  
 “Conversion Shares” shall mean any shares of Common Stock issued or issuable upon conversion of shares of a particular
series of Preferred Stock. 
  
 “Equity
Securities” shall have the meaning set forth in Section 2.1(a) hereof. 
  
 “Exempt Issuances” shall have the meaning set forth in Section 2.1(e) hereof. 
  
 “GAAP” shall mean generally accepted
accounting principles (as such principles are applied in the United States of America as of the date of the financial statement with respect to which the term is used), consistently applied. 
  
 “Grotech” shall mean Grotech Partners V,
L.P., a Delaware limited partnership. 
  
 “Initiating Holders” shall mean the holders of Series C Registrable Stock and/or the Series E Registrable Stock initially requesting registration of Series C Registrable Stock and/or the Series E Registrable Stock, as the
case may be, pursuant to Section 6.1(c) of this Agreement. 
  

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 “Joinder” shall mean a joinder to this Agreement in substantially the
form attached hereto as Exhibit A which, upon execution and delivery by an Additional Stockholder causes such Additional Stockholder to be bound by the provisions of this Agreement. 
  
 “Junior Preferred Stock” shall mean the
Series A Preferred, the Series B Preferred, and the Series D Preferred. 
  
 “Long-Form Registration Statement” shall mean a registration statement on Form S-1, Form S-2 or any similar form of registration statement adopted by the Commission from and after the date hereof.

  
 “Management Family Members”
shall mean, collectively, the spouse, parents, siblings, children, and grandchildren of a Management Stockholder. 
  
 “Management Stockholders” shall mean, collectively, Scott A. Ferber (“S. Ferber”), John B. Ferber
(“J. Ferber”), Stein Kretsinger, Thomas P. McMahon, and Michael Woosley (and, individually, a “Management Stockholder”). 
  
 “MCI” shall mean MCI/Worldcom Venture Fund. 
  
 “Minimum Series E Shares” shall mean 25% of the aggregate total Series E Preferred issued
pursuant to the Purchase Agreement or Series E Registrable Stock corresponding thereto. 
  
 “NEA” shall mean New Enterprise Associates VIII, a Delaware limited partnership, NEA Presidents Fund, L.P. a Delaware
limited partnership, and NEA Ventures 1999, a Delaware limited partnership collectively, or any one of them individually. 
  
 “Original Purchase Agreement” shall mean the Series C Convertible Preferred Stock Purchase Agreement dated as of
September 1, 1999 among the Company and the Series C Investors. 
  
 “Permitted Management Transfer” shall mean (a) a Transfer by a Management Stockholder of the shares of Capital Stock owned by such Management Stockholder as of the date of this Agreement to one or
more Management Family Members or a trust solely for the benefit of one or more Management Family Members; (b) a Transfer by a Management Stockholder (other than S. Ferber or J. Ferber) to another Management Stockholder, or (c) a Transfer by
J. Ferber or S. Ferber of up to ten percent (in the aggregate) of the shares of Capital Stock owned by J. Ferber or S. Ferber as of the date of the Agreement (adjusted for stock splits and similar changes in capitalization) to other Management
Stockholders in transactions approved by a majority of the entire Board; provided, however, that in the case of any Transfer described in clause (a) above, such Management Stockholder (or in the event of the death or incapacity of such
Management Stockholder, a Person acceptable to the Company) shall retain all voting rights related to such shares of Capital Stock and, in the case of a Transfer described in clause (a) or clause (c) above, prior to any such Transfer, each
transferee shall agree in writing, in a form satisfactory to the Company, that such transferee shall receive and hold such Capital Stock subject to the provisions of this Agreement, provided, however, that Capital Stock held by

  

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 such transferee shall be treated as if such transferring Management Stockholder continued to hold such
Capital Stock for the purposes of Section 3.4 hereof. 
  
 “Person” shall mean any individual, firm, corporation, partnership, limited liability company, trust, joint venture, governmental authority or other entity, and shall include any successor (by merger
or otherwise) of such entity. 
  
 “Preferred Stock” shall mean, collectively, the Senior Preferred Stock and the Junior Preferred Stock. 
  
 “Pro Rata Share” shall mean with respect to a particular Investor, that number of Equity Securities to be issued as
contemplated in Section 2.1(a) hereof necessary for such Investor to maintain their percentage interest in all Equity Securities calculated immediately prior to such issuance on a fully diluted basis. 
  
 “Qualified Initial Public Offering” or
“QIPO” shall mean a public offering of the Common Stock (other than a registration relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or a transaction
under Rule 145 of the Securities Act), with an aggregate offering price of not less than Twenty Million Dollars ($20,000,000) and a per-share price equating to at least 150% of the Series E Purchase Price, immediately preceding an initial public
offering. 
  
 “Register” The
terms “register,” “registered” and “registration” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act. 
  
 “Registrable Stock” mean, collectively, the
Series C Registrable Stock and the Series E Registrable Stock. 
  
 “Requesting Holders” shall have the meaning set forth in Section 6.1(c) hereof. 
  
 “Reserved Shares” shall mean shares of Common Stock reserved for issuance to directors, officers, employees, contractors
and consultants upon the exercise of outstanding or future stock options (including warrants) of the Company. 
  
 “Reuters” shall mean Reuters Holdings Switzerland SA. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended. 
  
 “Senior Preferred Stock” shall mean the
Series C Preferred and the Series E Preferred. 
  
 “Series A Preferred” means the Series A Non-Voting Convertible Preferred Stock, par value $0.01 per share, of the Company. 
  
 “Series B Preferred” means the Series B Non-Voting Convertible Preferred Stock, par value $0.01, of the Company.

  

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 “Series C Investors” shall mean the holders of Series C Preferred as set
forth on Schedule 1. 
  
 “Series C Preferred” shall have the meaning set forth in the Recitals hereto. 
  
 “Series C Purchase Price” shall mean Four Dollars and Thirty Cents ($4.30). 
  
 “Series C Registrable Stock” shall mean (i)
any Conversion Shares with respect to the Series C Preferred; (ii) any shares of Common Stock issued or issuable with respect to such Conversion Shares by reason of a stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization; and (iii) any other shares of Common Stock now held or hereafter acquired by a Series C Investor that are not attributable to the Series C Preferred. 
  
 “Series D Preferred” means the Series D
Non-Voting Convertible Preferred Stock, par value $0.01 per share, of the Company. 
  
 “Series E Investors” shall mean each purchaser of Series E Preferred pursuant to the Purchase Agreement, and Additional
Purchasers, as that term is defined in the Purchase Agreement. 
  
 “Series E Preferred” shall have the meaning set forth in the Recitals hereto. 
  
 “Series E Purchase Price” shall mean $29.50 per share. 
  
 “Series E Registrable Stock” shall mean (i) any Conversion Shares with respect to the
Series E Preferred; (ii) any shares of Common Stock issued or issuable with respect to such Conversion Shares by reason of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or
other reorganization; and (iii) any other shares of Common Stock now held or hereafter acquired by a Series E Investor that are not attributable to the Series E Preferred. 
  
 “Short-Form Registration Statement” shall mean a registration statement on Form S-3 or any
similar form of registration statement adopted by the Commission from and after the date hereof. 
  
 “Transfer” shall mean: as a noun, any voluntary or involuntary purchase, sale, gift, endorsement, assignment (including
an assignment of voting rights), transfer, pledge, encumbrance, hypothecation, exchange or other disposition by any means whatsoever, directly or indirectly, whether voluntary, involuntary, by operation of law or otherwise (including, without
limitation, any transfer pursuant to a divorce decree); and as a verb, any action or actions which result in such purchase, sale, gift, endorsement, assignment, transfer, pledge, encumbrance, hypothecation, exchange or other disposition. 

 

	 	Section 1.2	Additional Definitions. 

  
 In addition to the foregoing, capitalized terms used in this Agreement and not otherwise defined in this Article I shall have the meanings so given
to such terms herein. 
  

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 ARTICLE II 
 PREEMPTIVE RIGHT 
  

	 	Section 2.1	Preemptive Right to Participate in Future Issuance of Equity Securities. 

  
 (a) If the Company determines to issue any additional shares of its Capital Stock, or warrants, options,
rights or other securities convertible into, or exchangeable for, its Capital Stock (collectively, the “Equity Securities”) other than in Exempt Issuances (as defined in Section 2.1(e) below), from and after the date of this
Agreement for the purpose of financing its business, the Company shall first give each of the Investors the right to purchase their Pro Rata Share of such Equity Securities by delivering to them a written offer which shall state the price and other
terms and conditions of the proposed issuance. The Board shall fix the period of the offer, which shall be a minimum of 30 days. Each Investor shall have the right to assign any of the rights such Investor may have to purchase Equity Securities
under this Section 2.1 to any Affiliate of such Investor. 
  
 (b) An Investor may accept an offer only by giving written notice to the Company before the offer expires that such Investor has accepted the offer to purchase some or all of the securities offered (the
“Accepted Securities”); provided, however, that the maximum number or amount of securities each such Investor shall be entitled to purchase shall be equal to its Pro Rata Share based upon its percentage ownership of
Common Stock (on an as-converted basis). Notwithstanding the foregoing, any such Investor may, at the time it accepts the offer, subscribe to purchase any or all securities offered which may be available as a result of the rejection, or partial
rejection, of the offer by other such Investors (“Oversubscription Securities”). All Oversubscription Securities shall be allocated on a pro rata basis among those Investors subscribing to purchase them. If any such Investor
declines to purchase all or a part of such Investor’s Pro Rata Share of Oversubscription Securities, any remaining Oversubscription Securities shall be offered, in accordance with their respective Pro Rata Share, to those Investors electing to
purchase Oversubscription Securities. The sale of Oversubscription Securities shall continue pursuant to the process set forth in the immediately preceding sentence until all of the Equity Securities have been purchased by the Investors or until no
Investor desires to purchase any remaining Oversubscription Securities. 
  
 (c) Promptly following the expiration of the offer, the Company shall allocate the securities subscribed for among the Investors accepting or partially accepting the offer (the “Subscribing Holders”)
in the manner described in the immediately preceding paragraph and shall by written notice (the “Acceptance Notice”) advise all Subscribing Holders of the number or amount of securities allocated to each of the Subscribing Holders.
Within ten days following receipt of the Acceptance Notice, each of the Subscribing Holders shall deliver to the Company payment in full for the Accepted Securities purchased by it against delivery by the Company to each Subscribing Holder of a
certificate or certificates evidencing the Accepted Securities purchased by it. 
  
 (d) To the extent that the offer is not subscribed in full as a result of Section 2.1(a) through (c), then for a period of
180 days thereafter, the Company may issue and sell the 
  

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 unaccepted securities, or any of them, at the same price, and upon the other terms and conditions
specified in such offer, to any other Person or Persons. 
  
 (e) Notwithstanding the provisions of this Section 2.1, the Company shall not be required to first offer the Equity Securities to Stockholders pursuant to this Section 2.1 if in any of the following
issuances (each on “Exempt Issuance”): 
  
 (i) the issuance is pursuant to the conversion of any shares of Preferred Stock; 
  
 (ii) the Company proposes to issue Reserved Shares, or options (including warrants) to purchase Common Stock to its officers or employees,
directors, or officers or employees of any of its subsidiaries, or to outside consultants or contractors or service providers in connection with services performed for the Company, pursuant to stock purchase, option or compensation plans or other
arrangements approved by the Company’s Board; 
  
 (iii) the issuance is in connection with any stock split, stock dividend or recapitalization of the Company; 
  
 (iv) the issuance is pursuant to an underwritten public offering; 
  
 (v) the issuance is pursuant to a non-cash transaction approved by the Board with a lender, vendor, lessor,
or strategic partner with whom the Company has business relationships; or 
  
 (vi) the issuance is pursuant to any agreement, arrangement or plan approved by the Board in connection with an acquisition of or by the Company. 
  

	 	Section 2.2	Reserved Shares. 

  
 (a) The Reserved Shares shall be issued from time to time to directors, officers, employees, contractors and consultants of the Company
under such arrangements, contracts or plans as are recommended by the management of the Company and approved by the members of the Board of Directors, with regard to general employees, contractors and consultants, set in accordance with the
Company’s annual budget and compensation review and with regard to the officers and management, the Compensation Committee shall have to approve. 
  
 (b) Unless otherwise approved by the Board of Directors or the Compensation Committee (as the case may be), any such arrangements,
contracts or plans with respect to the Reserved Shares shall not provide for a vesting schedule at a rate in excess of twenty-five percent (25%) per annum from the date of issuance. Unless otherwise approved by the Compensation Committee or the
Board of Directors (as the case may be), holders of the Reserved Shares shall upon issuance thereof be required to execute the stockholders agreement then in effect. 
  

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	 	Section 2.3	Confidentiality. 

  
 Each Stockholder agrees on behalf of himself or itself and its employees, agents, Affiliates and assigns to treat and hold in confidence and not disclose
any Confidential Information that such Stockholder may have obtained from the Company or any Affiliate of the Company as a result of owning shares of Capital Stock or the performance of this Agreement so long as the Stockholder holds any shares of
Capital Stock and for a period of four (4) years thereafter. In the event that any Stockholder is requested or required (by oral question or written request for information or documents in any legal proceeding, interrogatory, subpoena, civil
investigative demand, or similar legal proceeding) to disclose any Confidential Information, such Stockholder shall notify the Company promptly of the request or requirement. 
  
 ARTICLE III 
 STOCKHOLDER RESTRICTIONS 
  

	 	Section 3.1	Transfers Prohibited. 

  
 At any time prior to the date when (i) Series C Investors, no longer own, in the aggregate, at least 50,000 shares of Series C Preferred or Series C
Registrable Stock, and (ii) the Series E Investors no longer own, in the aggregate, at least the Minimum Series E Shares, and except if made in accordance with the terms and conditions of this Agreement and pursuant to applicable securities laws, no
Transfer of shares of Capital Stock by any Stockholder, except as provided in the immediately following sentence, shall be valid and binding; provided, however, that the restrictions set forth in this Section 3.1 shall not apply
to any Permitted Management Transfer or any Transfer permitted by Section 3.8. Notwithstanding the foregoing, each Investor may Transfer any Capital Stock beneficially owned by it without restriction (except as provided by the Charter,
applicable securities laws and Section 3.9). The attempted Transfer of any shares of Capital Stock in violation of the provisions of this Agreement shall be null and void. 
  

	 	Section 3.2	Death of a Management Stockholder. 

  
 In the event of the death of a Management Stockholder (other than J. Ferber or S. Ferber, which event shall be covered in Section 3.8 below) (the
“Deceased Stockholder”), the Deceased Stockholder’s personal representative (the “Personal Representative”) may Transfer some or all of the shares of Capital Stock beneficially owned by the Deceased Stockholder
at the time of his death (the “Deceased Stockholder’s Shares”) to one or more other Stockholder(s) without first complying with the provisions of Section 3.4 of this Agreement. The Personal Representative shall not
otherwise Transfer the Deceased Stockholder’s Shares, except pursuant to the preceding sentence, without first complying with the provisions of this Agreement. 
  

	 	Section 3.3	Voluntary Transfers of Common Stock. 

  
 (a) At any time prior to the date when (i) Grotech, Enterprise, or Blue Chip no longer own, in the aggregate, at least 50,000 shares of
Series C Preferred or Series C Registrable Stock, and (ii) the Series E Investors no longer own, in the aggregate, at least the Minimum Series E Shares, and except as otherwise provided in this Agreement, including, but not limited to, Section
3.7, each Stockholder (other than the Investors), during his respective lifetime, agrees 
  

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 that he will notify the Investors and the Company in writing of any intended Transfer of any of his
respective shares of Capital Stock (the “Voluntary Transfer Stock”), stating the proposed price (the “Voluntary Price”) and the terms (the “Voluntary Terms”) of payment for the Stockholder’s
Voluntary Transfer Stock to be transferred (the “Voluntary Transfer Notice”). The Voluntary Transfer Notice shall constitute an offer by the Stockholder to the Investors and the Company to sell the Stockholder’s respective
Capital Stock at the Voluntary Price and on the Voluntary Terms. 
  
 (i) The Investors shall have the option, exercisable upon written notice to the Stockholder, for a period of thirty (30) days following receipt by the Investors of the Voluntary Transfer Notice, to acquire all or any
of the shares of the Voluntary Transfer Stock at the Voluntary Price and on the Voluntary Terms indicated in the Voluntary Transfer Notice. 
  
 (ii) If more than one Investor desires to purchase the Voluntary Transfer Stock, such remaining shares shall be purchased by them in such
proportions as they may agree. In the absence of agreement, such remaining shares shall be allocated to each Investor desiring to purchase such shares pro rata based on the number of shares of Series C Preferred, Series E Preferred and Registrable
Stock owned by such Investor, as calculated on an as converted basis. 
  
 (iii) To the extent that the Investors do not exercise their options to purchase all of the Voluntary Transfer Stock, the remaining Voluntary Transfer Stock shall be deemed to have been offered to the Company on the
same terms and conditions as those in Section 3(a)(i) for the Investors. 
  
 (iv) Any remaining Voluntary Transfer Stock not purchased by the Investors and/or the Company pursuant to this Section 3.3(a) may
be Transferred by the Stockholder for the Voluntary Price and on the Voluntary Terms pursuant to the Voluntary Transfer Notice, but only if the Stockholder first complies with the requirements of Article V below. 
  
 (v) If the Company or any Investor has actual knowledge of a
Voluntary Transfer by a Stockholder, the Company or the Investor, as applicable, shall give written notice to such effect to the Stockholder and to the other Investors, and giving such written notice shall constitute the Stockholder’s giving
written notice to the Company and to the Investors for purposes of this Section 3.3(a). 
  
 (b) Notwithstanding the foregoing, the terms of Section 3.3(a) shall not apply to any Permitted Management Transfer. 
  

	 	Section 3.4	Involuntary Transfers of Capital Stock. 

  
 If (a) any portion of a Stockholder’s shares of Capital Stock are attached or taken in execution; or (b) in the event of a Management
Stockholder’s death or incapacity (other than S. or J. Ferber which events are addressed in Section 3.8 below) and such Deceased Stockholder’s Personal Representative does not Transfer the Deceased’s Shares pursuant to
Section 3.2 above; or (c) in the event a Management Stockholder is no longer employed by the Company, for any 
  

 10 

 reason, other than death or incapacity (other than S. Ferber or J. Ferber), and the Company does not have
the right to repurchase the Capital Stock of such Management Stockholder pursuant to another agreement; or (d) if a Stockholder applies for the benefit of, or files a case under, any provision of the Federal bankruptcy law or any other law relating
to insolvency or relief of debtors; or (e) if a case or proceeding is brought against a Stockholder under any provision of the Federal bankruptcy law or any other law relating to insolvency or relief of debtors which is not dismissed within sixty
(60) days after the commencement thereof; or (f) if a Stockholder makes an assignment for the benefit of creditors; or (g) if any portion of a Stockholder’s shares of Capital Stock is made subject to a charging order, or is transferred pursuant
to a divorce decree (each such event shall be referred to as an “Involuntary Transfer”), such Stockholder or the Deceased Stockholder’s Personal Representative, as the case may be (the “Subject Stockholder”),
shall give immediate written notice of the Involuntary Transfer (the “Involuntary Notice”) to the Company and the Investors, and the Company and the Investors (until they cease to own (i) at least 50,000 shares of Series C Preferred
or Series C Registrable Stock in the case of the Series C Investors, or (ii) at least the Minimum Series E Shares in the case of the Series E Investors), shall have the option, as provided in Section 3.4(i) and (iii) hereof, to purchase any
or all of the shares of Capital Stock subject to the Involuntary Transfer (the “Involuntary Transfer Stock”) at the price and upon the terms provided in Section 3.5 in accordance with the provisions of this Section
3.4; provided, however, notwithstanding the foregoing, Section 3.4(ii) shall not apply to those instances set forth in (b) or (c) herein. 
  
 (i) The Company shall have the option, exercisable upon written notice to the Subject Stockholder, for a
period of thirty (30) days following receipt by the Company of the Involuntary Notice, to acquire all or any of the shares of the Involuntary Transfer Stock. 
  

(ii) Any such shares of the Involuntary Transfer Stock with respect to which the Company shall fail to timely exercise its option to
purchase pursuant to Section 3.4(i) hereof shall be deemed to have been offered to the Investors, who shall have the option, exercisable upon written notice to the Subject Stockholder, for a period of thirty (30) days following expiration of
the thirty (30) day period provided in Section 3.4(i) hereof, to purchase all or any of such remaining shares of the Involuntary Transfer Stock. If more than one Investor desires to purchase the Involuntary Transfer Stock, such remaining
shares shall be purchased by them in such proportions as they may agree. In the absence of agreement, such remaining shares shall be allocated to each Investor desiring to purchase such shares pro rata based on the number of shares of Series C
Preferred, Series E Preferred and Registrable Stock, owned by such Investor, as calculated on an as converted basis. 
  
 (iii) If the Company or any Investor has actual knowledge of an Involuntary Transfer by a Subject Stockholder, the Company or the
Investor, as applicable, shall give written notice to such effect to the Subject Stockholder and to the other Investors, and giving such written notice shall constitute the Subject Stockholder’s giving written notice to the Company and to the
Investors for purposes of this Section 3.4. 
  
 (iv) The Company and/or the Investors, as applicable, purchasing Involuntary Transfer Stock hereunder (collectively, the “Section 3.4 Purchasers”), shall settle with an assignee, trustee in bankruptcy, attaching court or
officer or successor in interest holding shares of the Involuntary Transfer Stock received in an Involuntary Transfer by taking any or all such 
  

 11 

 shares in execution and paying to them up to the purchase price for each share as provided in Section
3.5 hereof, but not exceeding the Subject Stockholder’s indebtedness and proper items of expense. The balance of the purchase price for such shares of Involuntary Transfer Stock shall be paid to the Subject Stockholder. 
  
 (v) Payment of Purchase Price. The full amount of the
purchase price for the Capital Stock as determined pursuant to Section 3.5 hereof shall be paid by certified check by the Section 3.4 Purchasers on the “Closing Date” (as that term is defined in Section 3.6 hereof).

  

	 	Section 3.5	Purchase Price for Stock. 

  
 (a) Purchase Price. In the event of an Involuntary Transfer, the purchase price for the shares of Capital Stock to be purchased as
the result of said Involuntary Transfer shall be the fair market value of the Capital Stock, as provided in Section 3.5(b) hereof, as of the date of the Involuntary Transfer. 
  
 (b) Fair Market Value. 
  
 (i) Agreement of Parties. For purposes of determining the fair market value of the Capital Stock sold
pursuant to Section 3.4(a) hereof, if the Section 3.4 Purchasers and the Subject Stockholder can agree in writing as to the purchase price for the Capital Stock to be sold as the result of an Involuntary Transfer, such agreed value shall be
the fair market value of said Capital Stock and shall be the purchase price of said Capital Stock for purposes of this Agreement. If no agreement on the fair market value of the Capital Stock to be sold pursuant to Section 3.4(a) hereof can
be reached within fifteen (15) days from the date upon which the last option period pursuant to which any Section 3.4 Purchaser elected to purchase such shares of Capital Stock has expired, then the fair market value of said Common Stock shall be
determined pursuant to Section 3.4(b)(ii) hereof. 
  
 (ii) Third Party Appraisal. If the fair market value for the Capital Stock to be sold hereunder is not agreed upon as provided in Section 3.5(b)(i) hereof within the period therein stated, then within
seven days thereafter, an appraiser or appraisers shall be jointly selected by the Subject Stockholder and the Section 3.4 Purchasers. If the Subject Stockholder and the Section 3.4 Purchasers are unable to reach an agreement as to an appraiser, the
provisions of Section 3.5(b)(iii) below shall apply. 
  
 The determination of such jointly selected appraiser or appraisers as to the “fair market value” of the Capital Stock to be sold by the Subject Stockholder and purchased by the Section 3.4 Purchasers shall be binding and
conclusive upon all parties. 
  
 For purposes of this Section
3.5(b)(ii), the “fair market value” of the Capital Stock shall be an amount equal to the “fair market value per share of Common Stock, on a fully-diluted basis (as appropriate)” multiplied by the number of shares of Common
Stock or Series A Preferred, Series B Preferred, Series C Preferred, Series D Preferred, or Series E Preferred, on an as converted basis, which are being sold and purchased hereunder, and the “fair market value per share of Common Stock”
shall be an amount equal to the fair market value of all of the shares of Common Stock on a fully-diluted basis as of the date of the Involuntary Transfer as determined 
  

 12 

 by appraisal pursuant to this Section 3.5(b)-(ii), divided by the total number of shares of Common Stock on a
fully-diluted basis as of such date. 
  
 (iii)
Additional Appraiser. If the Section 3.4 Purchasers and the Subject Stockholder do not agree upon the selection of an appraiser or appraisers, as provided in Section 3.5(b)(ii) hereof within the period therein stated, then, within five
days after the expiration of the seven day period provided for in Section 3.5(b)(ii) hereof, each of the Section 3.4 Purchasers and the Subject Stockholder shall deliver to the other a list of three appraisers, who will be nationally
recognized investment banks, and shall select one appraiser from the list delivered by the other by written notice to the other. If either party fails to deliver a list of appraisers or to select an appraiser from such list within said five-day
period, the other party may select an appraiser from its list and such appraiser shall serve as the sole appraiser. Each of the appraisers so selected shall, within fifteen days of being selected, determine the fair market value of the Common Stock.
If the lower of the two appraisals is at least ninety percent (90%) of the higher appraisal, then the fair market value of the Common Stock shall be equal to the average of the two appraisals. If the lower of the two appraisals is less than ninety
percent (90%) of the higher appraisal, then the two appraisers shall appoint a third appraiser within seven days after the end of said fifteen day period, and such third appraiser shall, within fifteen days of being selected, determine the fair
market value of the Common Stock. In such event, the fair market value of the Common Stock shall be equal to the average of all three appraisals. The determination of such appraisers shall be determinative of the fair market value of the Common
Stock for the purposes of this Agreement, and shall be binding, final and conclusive on all parties hereto. 
  
 (iv) Costs of Appraisals. All expenses incurred in the appraisal process shall be borne and paid equally by the Subject
Stockholder, on the one hand, and the Section 3.4 Purchasers on the other hand. The Section 3.4 Purchasers shall be severally and not jointly liable for its share of such costs based on the number of shares to be purchased by each. 
  

	 	Section 3.6	Closing. 

  
 The closing (the “Closing”) on the sale of any shares of Capital Stock sold pursuant to this Agreement shall be, unless otherwise agreed
to in writing by the purchasers of such shares and the seller of such shares or his or its personal or legal representative, or successor, as the case may be, held at the principal place of business of the Company thirty (30) days from the earlier
of (a) the date on which an option is exercised to purchase all of the shares of Capital Stock offered for sale pursuant to this Agreement or (b) if all of such shares of Capital Stock offered for sale are not purchased pursuant to this Agreement,
the date on which the last option period to purchase such offered shares of Capital Stock expires (collectively, the “Closing Date”); provided, however, that if an appraiser is appointed to determine the purchase price
pursuant to Section 3.5 hereof, then notwithstanding the foregoing to the contrary, the Closing shall take place on a date no later than ninety (90) days from the receipt by the seller (or his or its personal or legal representative, or
successor, as the case may be), on the one hand, and the purchaser(s), on the other hand, of the determination of the fair market value of the shares of Capital Stock or in accordance with the provisions of Section 3.5(b) hereof, if such
Closing Date would occur later than the Closing Date otherwise determined pursuant to this Section 3.6. At the Closing, the seller shall surrender the certificates representing the shares of Capital Stock to be transferred 
  

 13 

 and any documentation reasonably requested by the Company or the purchaser(s), as the case may be, to convey the Capital
Stock transferred, properly endorsed or executed for transfer. 
  

	 	Section 3.7	Stock Covered. 

  
 Except as otherwise provided in this Agreement, the provisions of this Article III shall apply to all shares of Capital Stock, now owned or which
may be issued hereafter to any of the Stockholders in consequence of any additional issuance, purchase, exchange or reclassification of shares of stock, corporate reorganization or any other form of recapitalization or consolidation or merger or
share split or share dividend, or which are acquired by a Stockholder in any other manner; provided, however, that the provisions of this Article III shall not apply to the Series C Preferred or to the Series E Preferred, to any
shares of Registrable Stock, or to any Transfer of shares of Capital Stock by an Investor; provided, further, however, that an Investor shall not Transfer any shares of Capital Stock to a Person whom the Company reasonably
believes is a competitor without first complying with Section 3.9 below. 
  

	 	Section 3.8	Ferber Transfer. 

  
 Notwithstanding anything to the contrary, upon the death or incapacity of either S. Ferber or J. Ferber (either a “Deceased Ferber”), the
personal representative(s) of the Deceased Ferber may transfer to one or more trusts, exclusively for the benefit of such Deceased Ferber’s spouse, parents, siblings, children, and grandchildren, all of his Capital Stock held by such Deceased
Ferber at the time of his death; provided, however, that (a) the surviving brother (S. Ferber or J. Ferber, as the case may be) retain all voting control for such shares (in the event neither brother survives, then all voting control
of either Deceased Ferber’s Capital Stock shall be held by a Person acceptable to the Investors), and (b) the Company and the Investors are granted a right of first refusal in accordance with the terms and conditions of Section 3.3
hereof on any subsequent Transfer to Persons other than the beneficiaries of such trust(s). 
  

	 	Section 3.9	Transfers to Competitors. 

  
 Except when Transferred in accordance with Section 4.1 below, in the event an Investor(s) proposes to Transfer its or his Capital Stock to a
Person, whom (a) the Company reasonably believes is a competitor, and (b) the Company can demonstrate to the Investor(s) that such Person is a competitor of the Company, then such transferring Investor(s) shall first comply with Section 3.3
above. A Person shall be considered a “competitor” if such Person is actively engaged in, or has evidenced an intention to enter into, the same Business as the Company, as determined by the Board in good faith. 
  

 14 

 ARTICLE IV 
 REDEMPTION 
  

	 	Section 4.1	Reserved. 

  

	 	Section 4.2	Redemption of Series C Preferred. 

  
 (a) Series C Redemption Option. On or after September 1, 2004, Investors holding at least sixty percent (60%) of the
then-outstanding Series C Preferred and Series C Registrable Stock shall have the option (the “Series C Redemption Option”) to require the Company to purchase all of the outstanding shares of Series C Preferred and Series C
Registrable Stock held by the Investors at such time (collectively, the “Series C Redemption Shares”) at the “Series C Redemption Price” (as that term is defined below). 
  
 (b) Exercise of Redemption Option; Closing. Should
the Investors desire to exercise the Series C Redemption Option, they shall so notify the Company in writing. The closing of the transactions described in this Section 4.2 shall be held at the principal offices of the Company within sixty
(60) days after the date on which the Company receives written notice of the exercise of the Series C Redemption Option. At such closing, the Company shall make payment for the Redemption Shares, and the Investors shall deliver the Series C
Redemption Shares, duly endorsed for transfer, to the Company. 
  
 (c) Series C Redemption Price. The per-share purchase price to be paid by the Company in connection with the purchase of the Redemption Shares pursuant to Section 4.2(a) above (the “Series C
Redemption Price”) shall equal the greater of: (i) the Series C Purchase Price, plus all accrued and unpaid dividends, and (ii) the fair market value of each share of Series C Preferred, as determined by appraisal in accordance with the
procedures set forth in Sections 3.5(b)(iii), (b)(iv), and (b)(v) above. 
  

	 	Section 4.3	Redemption of Series E Preferred. 

  
 (a) Series E Redemption Option. On or after September 1, 2004, Investors holding at least sixty-six and two-third percent (66-2/3%)
of the then-outstanding Series E Preferred and Series E Registrable Stock shall have the option (the “Series E Redemption Option”) to require the Company to purchase all of the outstanding shares of Series E Preferred and Series E
Registrable Stock held by the Investors at such time (collectively, the “Series E Redemption Shares”) at the “Series E Redemption Price” (as that term is defined below). 
  
 (b) Exercise of Redemption Option; Closing. Should
the Investors desire to exercise the Series E Redemption Option, they shall so notify the Company in writing. The closing of the transactions described in this Section 4.3 shall be held at the principal offices of the Company within sixty
(60) days after the date on which the Company receives written notice of the exercise of the Redemption Option. At such closing, the Company shall make payment for one third of the total Series E Redemption Price for the Series E Redemption Shares,
and the Investors shall deliver the Series E Redemption Shares, duly endorsed for transfer, to the Company. The balance of total Series E Redemption Price shall be paid in two equal installments on the first and second anniversaries, respectively,
of the redemption closing date. 
  

 15 

 (c) Series E Redemption Price. The per-share purchase price to be paid by the
Company in connection with the purchase of the Series E Redemption Shares pursuant to Section 4.3(a) above (the “Series E Redemption Price”) shall equal the greater of: (i) Series E Purchase Price, plus all accrued and unpaid
dividends, and (ii) the fair market value of each share of Series E Preferred, as determined by appraisal in accordance with the procedures set forth in Sections 3.5(b)(iii), (b)(iv), and (b)(v) above. 
  

	 	Section 4.4	Funds Insufficient to Effect Redemption. 

  
 If, at any time, the Corporation shall be required to redeem any shares of the Series C Preferred and Series E Preferred pursuant to
Sections 4.2 and 4.3 above, and the Corporation shall not have assets or funds legally available for the redemption of all the shares required to be redeemed, the Corporation shall redeem ratably from the holders of the Series C
Preferred and Series E Preferred such number of shares as it shall have funds legally available therefor and shall redeem the remainder of such shares on the practicable date(s) as assets or funds become legally available therefor. 
  
 ARTICLE V 
 RIGHT OF CO-SALE 
  
 Notwithstanding anything contained herein to the contrary, if at (i) any time any Stockholder or group of Stockholders proposes to enter into any transaction, or series of related transactions, involving the Transfer
of their Capital Stock and (ii) (x) at the time of such transfer, the Series C Investors own at least 50,000 shares of Series C Preferred or Series C Registrable Stock or (y) at the time of such transfer, the Series E Investors own at least the
Minimum Series E Shares, then the proposed transferor shall first comply with the provisions of Section 3.3 above. If all of the shares of Capital Stock proposed to be transferred are not acquired by the Investors and/or the Company pursuant
to Section 3.3 hereof, then the proposed transferor shall (i) give to each Investor written notice of the opportunity to sell or tender its Capital Stock in connection with such transactions at least fifteen days in advance of the sale or the
date that such tender is required (such written notice shall contain the material terms of the transactions) and (ii) require the proposed transferee to purchase from each of the Investors the same proportionate number of shares of Capital Stock as
the proposed transferee has agreed to purchase from the proposed transferor, at the same time and on the same terms and conditions (including price) applicable to the shares of Capital Stock to be sold by the proposed transferor to the proposed
transferee; provided, however, that, to the extent the proposed transferee is unwilling to purchase the Capital Stock of the electing Investors as calculated above, then the number of shares of Capital Stock of the electing Investors as so
calculated, and the number of shares of Capital Stock as otherwise to be sold by the proposed transferor, each shall be reduced proportionately to equal the total number of shares of Capital Stock to be purchased by the proposed transferee, who will
thereupon offer to purchase that number of shares of Capital Stock of the electing Investors as so calculated at the same time and on the same terms and conditions (including price) applicable to the shares of Capital Stock to be sold by the
proposed transferor, as recalculated herein. An Investor may exercise its right to participate in the sale by giving written notice to the proposed transferor within fifteen days after the date of receipt of the notice of the transaction delivered
under clause (i) above. Nothing contained in this Article V shall confer 
  

 16 

 upon any Investor a right to sell or tender Capital Stock owned by it to any proposed transferee in connection with any
transaction entered into by the Company for the purpose of raising additional capital, except as provided for in Section 2.1 above. 
  
 Anything herein to the contrary notwithstanding, the provisions of this Article V shall not apply: (i) to any Permitted Management Transfer; (ii)
to a Transfer of Capital Stock by an Investor; (iii) any time after a QIPO; (iv) any time after the redemption of all of the Series C Preferred or of all the Series E Preferred or (v) to any repurchase of shares of Capital Stock of the Company (A)
from officers, employees, directors, consultants or contractors of the Company which are subject to restricted stock agreements under which the Company has the option to repurchase such shares upon the occurrence of certain events, including,
without limitation, termination of employment or (B) from the Maryland Department of Business and Economic Development pursuant to a Stock Repurchase Agreement dated February 29, 2000. In the event of any such transfer, other than pursuant to
subsections (iii), (iv), (v) or (vi) above, the transferee of the Capital Stock shall hold the Capital Stock so acquired with all the rights conferred by, and subject to all the restrictions imposed by, this Agreement. 
  
 ARTICLE VI 
 REGISTRATION RIGHTS 
  

	 	Section 6.1	Required Registrations. 

  
 (a) Subject to the terms of this Article VI, if, at any time after a QIPO, the Investors, holding, in the aggregate, at least forty
percent (40%) of the Registrable Stock, propose to dispose of the Registrable Stock then outstanding which such holders in their good faith discretion determine would have an aggregate offering price of at least Five Million Dollars ($5,000,000),
then such holders may request in writing that the Company effect such registration, stating the number of shares of Registrable Stock to be disposed of and the intended method of disposition of such shares. 
  
 (b) If, at any time at which the Company is eligible to file
a registration statement on a Short-Form Registration Statement, holders of at least twenty-five percent (25%) of the Registrable Stock propose to dispose of shares of Registrable Stock which such holders in their good faith discretion determine
would have an anticipated aggregate offering price of at least Two Million Dollars ($2,000,000.00) pursuant to a Short-Form Registration Statement, then such holders may request in writing that the Company effect such registration on a Short-Form
Registration Statement, stating the number of shares of Registrable Stock to be disposed of and the intended method of disposition of such shares. 
  
 (c) Upon receipt of the request of the holders pursuant to Section 6.1(a) or 6.1(b) above (in the case of Section
6.1(a) or Section 6.1(b), hereinafter referred to as the “Initiating Holders”), the Company shall give prompt written notice thereof to all other holders of Registrable Stock. Subject to the provisions of Section
6.2 below, the Company shall with respect to Section 6.1(a) and Section 6.1(b), use its reasonable best efforts promptly to file with the Commission, the applicable registration statement to register under the Securities Act all
shares of Registrable Stock or the specified in the requests of the Initiating Holders and the 
  

 17 

 requests (stating the number of shares of Registrable Stock to be disposed of and the intended method of
disposition of such shares) of other holders of shares of Registrable Stock (the “Requesting Holders”) given within thirty (30) days after receipt of such notice from the Company. 
  
 (d) Registration rights hereunder shall terminate on the
earlier of (i) the fifth anniversary of a QIPO or (ii) with respect to any holder of registration rights, at such time as all Registrable Securities of such holder may be sold within a three month period pursuant to Rule 144 or a similar exemption
from Registration. 
  

	 	Section 6.2	Limitations on Required Registration. 

  
 (a) The Company shall not be required to prepare and file more than two Long-Form Registration Statements for which actually become or are
declared effective, at the request of the Initiating Holders pursuant to Section 6.1(a) hereof. Notwithstanding the foregoing, the Company’s obligation to prepare and file the Long-Form Registration Statements shall not be deemed satisfied
unless registration statements covering at least fifty percent (50%) (in the aggregate) of the outstanding shares of Registrable Stock shall have become effective and, if such method of disposition is a firm commitment underwritten public offering,
all such shares of Registrable Stock (i.e., shares covered by such registration statements) shall have been sold pursuant thereto. Nothing contained herein shall limit the Company’s obligation from time to time to prepare and file a Short-Form
Registration Statement requested by the Initiating Holders pursuant to Section 6.1(b) hereof; provided, however, that the Company shall not be required to prepare and file Short-Form Registration Statements requested by the
Initiating Holders pursuant to Section 6.1(b) hereof more frequently than once every six months. 
  
 (b) (i) Only Common Stock may be included in a registration, and, whenever a registration requested by Initiating Holders of Registrable
Stock is for a firm commitment underwritten offering, if the managing underwriter of the offering determines that the number of shares of Common Stock so included which are to be sold by the holders of Registrable Stock should be limited due to
market conditions, the holders (including both the Initiating Holders and the Requesting Holders) of Registrable Stock proposing to sell their shares of Registrable Stock in such underwriting and registration shall share pro rata in the available
portion of the registration in question, such sharing to be based upon the number of shares of Registrable Stock then held by the Initiating Holders and Requesting Holders, respectively. 
  
 (ii) If any holder of Registrable Stock disapproves of the terms of the underwriting, such holder may elect
to withdraw therefrom by written notice to the Company, the underwriter and the Initiating Holders. The Registrable Stock so withdrawn shall also be withdrawn from registration; provided, however, that, if by the withdrawal of such
Registrable Stock, a greater number of shares of Registrable Stock held by other holders of Registrable Stock may be included in such registration (up to the maximum of any limitation imposed by the managing underwriter), then the Company shall
offer to all holders of Registrable Stock who have included Registrable Stock in the registration the right to include additional Registrable Stock in the same proportion used in determining the limitation imposed by the provisions of this
Section 6.2(b). 
  

 18 

 (c) The Company shall not be required to prepare and file a registration statement
pursuant to Section 6.1 hereof which could become effective within 180 days following the effective date of any registration statement filed by the Company with the Commission pertaining to an public offering of securities for cash for the
account of the Company or the selling Stockholders if the Initiating Holders’ request for registration is received by the Company subsequent to such time as the Company in good faith gives written notice to the holders of Registrable Stock that
the Company is commencing to prepare a Company or Stockholder-initiated registration statement and the Company, in good faith, is actively employing all reasonable efforts to cause such registration statement to become effective. 
  
 (d) Notwithstanding the foregoing, if the Company shall
furnish to the Initiating Holders and Requesting Holders a certificate signed by the President of the Company stating that, in the good faith judgment of the Board, it would be seriously detrimental to the Company and its shareholders for such
registration statement to be filed and it is therefore essential to defer the filing of such registration statement, the Company shall have the right to defer such filing for a period of not more than 90 days after receipt of the request of the
Initiating Holders; provided, however, that the Company may not utilize this right more than once in any 12-month period. 
  

	 	Section 6.3	Incidental (Piggyback) Registration. 

  
 If the Company at any time proposes to register any of its securities for sale for its own account or for the account of any other Person
(other than a registration relating to (i) the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or a Rule 145 transaction, or a registration on any form which does not include substantially
the same information as would be required to be included in a registration statement covering the sale of Registrable Stock; or (ii) a registration pursuant to Section 6.1(a) or Section 6.1(b) above), it shall each such time give
written notice (the “Company’s Notice”), at its expense, to all holders of Registrable Stock and the Registrable Stock of its intention to do so at least 30 days prior to the filing of a registration statement with respect to
such registration with the Commission. If any holder of Registrable Stock desires to dispose of all or part of its Registrable Stock, it may request registration thereof in connection with the Company’s registration by delivering to the
Company, within 30 days after receipt of the Company’s Notice, written notice of such request (the “Investors’ Notice”) stating the number of shares of Registrable Stock to be disposed of and the intended method of
disposition of such shares by such holder or holders. The Company shall use its reasonable best efforts to cause all shares of Registrable Stock specified in the Investors’ Notice to be registered under the Securities Act so as to permit the
sale or other disposition (in accordance with the intended methods thereof as aforesaid) by such holder or holders of the shares so registered, subject, however, to the limitations set forth in Section 6.4 hereof. 
  

	 	Section 6.4	Limitations on Incidental Registration. 

  
 (a) If the registration of which the Company gives notice pursuant to Section 6.3 above is for the purpose of permitting a
disposition of securities by the Company pursuant to a firm commitment underwritten offering, the notice shall so state, and the Company shall have the right to limit the aggregate size of the offering or the number of shares to be included therein

  

 19 

 by the Stockholders if requested to do so in good faith by the managing underwriter of the offering and
only securities which are to be included in the underwriting may be included in the registration. 
  
 (b) Whenever the number of shares which may be registered pursuant to Section 6.3 is limited by the provisions of Section
6.4(a) above, the holders of Registrable Stock shall have priority as to sales over the other holders of the Company’s securities, and the Company shall cause such other holders to withdraw their shares from such offering to the extent
necessary to allow all requesting holders of Registrable Stock to include all of the shares so requested to be included within such registration. Whenever the number of shares which may be registered pursuant to Section 6.3 is still limited
by the provisions of Section 6.4(a) above, after the withdrawal of the other holders of the Company’s securities, the Company shall have priority as to sales over the holders of Registrable Stock and each holder hereby agrees that it
shall withdraw its securities from such registration to the extent necessary to allow the Company to include all the shares which the Company desires to sell for its own account to be included within such registration; provided,
however, that in no event shall less than twenty-five percent (25%) of the Registrable Stock requested to be registered pursuant to this Section 6.4 be included in such registration. 
  

	 	Section 6.5	Designation of Underwriter. 

  
 In the case of any registration initiated by the Initiating Holders pursuant to the provisions of Section 6.1 hereof which is
proposed to be effected pursuant to a firm commitment underwriting and the Company shall have the right to designate the managing underwriter, after consulting with the Initiating Holders, and all holders of Registrable Stock participating in the
registration shall sell their shares only pursuant to such underwriting. 
  

	 	Section 6.6	Registration Procedures. 

  
 (a) If and when the Company is required by the provisions of this Agreement to use its reasonable best efforts to effect the registration
of shares of Registrable Stock, the Company shall: 
  
 (i) prepare and file with the Commission a registration statement (the form and substance of which shall be subject to the approval of (A) the holders of a majority of the Registrable Stock or (B) all of the Investor Directors (as defined
in Section 7.1 below) to be included in such registration) with respect to such shares and use its best efforts to cause such registration statement to become and remain effective for a period described in Section 6.15 hereof;

  
 (ii) prepare and file with the Commission
such amendments and supplements to such registration statement and the prospectuses used in connection therewith as may be necessary to keep such registration statement effective and current and to comply with the provisions of the Securities Act
with respect to the sale or other disposition of all shares covered by such registration statement, including such amendments and supplements as may be necessary to reflect the intended method of disposition from time to time of the holder or
holders 
  
  

 20 

 of Registrable Stock who have requested that any of their shares be sold or otherwise disposed of in
connection with the registration (collectively, the “Prospective Sellers”); 
  
 (iii) furnish to each Prospective Seller such number of copies of each prospectus, including preliminary prospectuses, in conformity with
the requirements of the Securities Act, and such other documents, as the Prospective Seller may reasonably request in order to facilitate the public sale or other disposition of the shares owned by it; 
  
 (iv) use its best efforts to register or qualify the shares
covered by such registration statement under such other securities or blue sky or other applicable laws of such jurisdictions as each Prospective Seller shall reasonably request to enable such seller to consummate the public sale or other
disposition of the shares owned by such seller, provided that the Company shall not be required in connection therewith or as an election thereto to qualify to do business or to file a general consent to service of process in any such jurisdiction;

  
 (v) upon written request, furnish to each
Prospective Seller a signed counterpart, addressed to the Prospective Sellers and their underwriters, if any, of: (A) an opinion of counsel for the Company, dated the effective date of the registration statement; and (B) a “comfort” letter
signed by the independent public accountants of the Company who have certified the Company’s financial statements included in the registration statement, covering substantially the same matters with respect to the registration statement (and
the prospectus included therein) and (in the case of the accountants’ “comfort” letter) with respect to the events subsequent to the date of the financial statements, as are customarily covered (at the time of such registration) in
the opinions of issuers’ counsel and in accountants’ letters delivered to the underwriters in connection with underwritten public offerings of securities; 
  
 (vi) cause all such Registrable Stock to be listed on each securities exchange or other securities trading
market on which similar securities issued by the Company are then listed; 
  
 (vii) provide a transfer agent and registrar for all such Registrable Stock not later than the effective date of such registration statement; 
  
 (viii) enter into such customary agreements (including an underwriting agreement) and take all such other
customary actions as the holders of a majority of the Registrable Stock being sold reasonably request in order to expedite or facilitate the disposition of such Registrable Stock; and 
  
 (ix) make available for inspection by any Prospective Seller, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors and employees to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with the preparation of such registration statement. 
  

 21 

 (b) Each Prospective Seller of Registrable Stock shall furnish to the Company such
information as the Company may reasonably require from the Prospective Seller for inclusion in the registration statement (and the prospectus included therein). 
  
 (c) The Prospective Sellers shall not (until further notice) effect sales of the shares covered by the
registration statement after receipt of facsimile or other written notice from the Company to suspend sales to permit the Company to correct or update a registration statement or prospectus. 
  

	 	Section 6.7	Registration Expenses. 

  
 The Company shall pay all “Registration Expenses” (as that term is defined below) relating to (i) two Long-Form Registration Statements
under Section 6.1(a) above, and (ii) all Short-Form Registration Statements under Section 6.1(b) above. All other Registration Expenses and all Selling Expenses shall be borne by the participating sellers (including the Company if it
shall be a participating seller) in proportion to the number of shares of Capital Stock sold by each, or in such other manner or proportion as the participating sellers (including the Company if it shall be a participating seller) may agree. For
purposes of this Section, the term “Registration Expenses” shall mean, collectively, all registration and filing fees, exchange listing fees, printing expenses, fees and disbursements of counsel for the Company and the fees and
expenses of one counsel for the holders of Registrable Stock selected by a majority of the holders of Registrable Stock, state Blue Sky fees and expenses, the expense of any special audits incident to or required by any such registration, and
reasonable expenses relating to all marketing and promotional efforts requested by the managing underwriter, but shall exclude Selling Expenses. As used herein, the term “Selling Expenses” shall mean, collectively, underwriting
discounts, selling commissions, brokerage fees, and the fees and expenses of counsel for each holder of Registrable Stock (other than the counsel selected to represent all holders of Registrable Stock). 
  

	 	Section 6.8	Indemnification. 

  
 (a) In the event of any registration of any of its securities under the Securities Act pursuant to this Agreement, the Company shall
indemnify and hold harmless each Prospective Seller, each underwriter (as defined in the Securities Act) and each controlling person of any Prospective Seller or underwriter, if any (within the meaning of the Securities Act), against any losses,
claims, damages or liabilities, joint or several (or actions in respect thereof), to which such Prospective Seller, underwriter or controlling person may be subject under the Securities Act, under any other statute or at common law, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement (or alleged untrue statement) of any material fact contained in any registration statement under which such securities
were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any summary prospectus issued in connection with any securities being registered, or any amendment or supplement thereto, or any other
document, (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any violation by the Company of the Securities Act or any blue sky
law, or any rule or regulation promulgated under the Securities Act or any blue sky law, or any other law, applicable to the Company in 
  

 22 

 connection with any such registration, qualification or compliance of any shares of Registrable Stock,
and shall reimburse each such Prospective Seller, underwriter or controlling person for any legal or other expenses reasonably incurred by such Prospective Seller, underwriter or controlling person in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable to any Prospective Seller, underwriter or controlling person in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon any such untrue statement or omission made in such registration statement, preliminary prospectus, summary prospectus, final prospectus, or amendment or supplement thereto, or any other document, in reliance
upon and in conformity with written information furnished to the Company by such Prospective Seller, underwriter or controlling person, respectively, specifically for use therein. The indemnity provided for herein shall remain in full force and
effect regardless of any investigation made by or on behalf of such Prospective Seller, underwriter or controlling person, and shall survive the transfer of such securities by such Prospective Seller. 
  
 (b) The Company may require, as a condition to including any
Registrable Stock of a Prospective Seller in any registration statement filed pursuant to Section 6.1 or Section 6.3, that the Company shall have received an undertaking satisfactory to it from such Prospective Seller, severally and
not jointly, to indemnify and hold harmless (in the same manner and to the same extent as set forth in Section 6.8(a)) the Company, each director of the Company, each officer of the Company who shall sign such registration statement and each
other person, if any, who controls the Company within the meaning of the Securities Act (except the indemnifying Prospective Seller, if such indemnifying Prospective Seller so controls the Company), with respect to (i) any untrue statement (or
alleged untrue statement) of any material fact contained in any registration statement under which such securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any summary prospectus
issued in connection with any securities being registered, or any amendment or supplement thereto, or any other document, (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, or (iii) any violation by the Prospective Seller of the Securities Act or any blue sky law, or any rule or regulation promulgated under the Securities Act or any blue sky law, or any other law, applicable to the
Company in connection with any such registration, qualification or compliance of any shares of Registrable Stock, in each case if such statement or omission was made in reliance on and in conformity with written information furnished to the Company
by such Prospective Seller specifically for use in preparing any such registration statement, preliminary prospectus, final prospectus, summary prospectus or amendment or supplement thereto, or in making any such filing or representation. Each
Prospective Seller hereunder shall promptly provide such indemnification upon request. The indemnity provided for herein shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party and shall
survive any transfer of the Registrable Stock held by the indemnifying party. In no event shall a Prospective Seller’s obligation to indemnify any Person hereunder exceed the net proceeds from the sale of the Prospective Seller’s
Registrable Stock in the offering. 
  
 (c) If the
indemnification provided for in Section 6.8(a) or Section 6.8(b) above is unavailable to an indemnified party in respect of any losses, claims, damages or liabilities referred to therein, then the indemnifying party, in lieu of
indemnifying such 
  

 23 

 indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as
a result of such losses, claims, damages or liabilities, in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified parties on the other in connection with the statements or
omissions or violations which resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified parties shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified parties, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
  
 The Company and the Stockholders agree that it would not be just and equitable if contribution pursuant to this Section 6.8(c) were
determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a result
of the losses, claims, damages and liabilities or actions in respect thereof referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6.8(c), no Prospective Seller shall be required to contribute any amount in excess of the net
proceeds from the sale of the Prospective Seller’s Registrable Stock in the Offering. No person guilty of fraudulent misrepresentations (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Company may require, as a condition to including any Registrable Stock of a Prospective Seller in any registration statement filed pursuant to Section 6.1 or Section
6.3, that the Company shall have received an undertaking satisfactory to it from such Prospective Seller of such Registrable Stock, severally and not jointly, to contribute to the amount paid or payable by an indemnified party hereunder as and
to the extent set forth in this Section 6.8(c), and each Prospective Seller hereunder shall promptly provide such undertaking upon request. 
  
 (d) Promptly after receipt by an indemnified party under Section 6.8(a) or Section 6.8(b) above of written notice of the
commencement of any action, such indemnified party promptly shall, if a claim in respect thereof is to be made under such Section, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying
party shall relieve it from any liability which it may have had to any indemnified party hereunder only to the extent that it has been prejudiced as a proximate result of such failure. In case any such action shall be brought against any indemnified
party, and it shall notify promptly the indemnifying party of the commencement thereof, the indemnifying party shall assume the defense thereof, with counsel satisfactory to such indemnified party (such approval not to be unreasonably withheld or
delayed); provided, however, that, if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or
other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses (in which case the
indemnifying party shall not have the 
  

 24 

 right to direct the defense of such action on behalf of the indemnified party or parties). Upon the
assumption by the indemnifying party of the defense of such action, and approval by the indemnified party of counsel, the indemnifying party shall not be liable to such indemnified party under this Section 6.8 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable
time, (ii) the indemnified party and its counsel do not actively and vigorously pursue the defense of such action, or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at the expense of the indemnifying
party. 
  

	 	Section 6.9	Inclusion of Additional Shares in Required Registrations; Other Company Initiated Registrations. 

  
 The Company shall not register securities for sale for its own account or for
the account of any other Person in any registration requested by the holders of Registrable Stock pursuant to Section 6.1 hereof unless permitted to do so by the written consent of the holders of at least 51% of the Registrable Stock as to
which registration has been requested. The Company may not cause any other registration of securities for sale for its own account or for the account of any other Person to become effective within 90 days after the effective date of any registration
requested by the holders of Registrable Stock pursuant to Section 6.1 hereof except pursuant to registrations on Form S-8 or Form S-4 or any successors thereto. 
  

	 	Section 6.10	Rights Which May Be Granted to Other Persons. 

  
 The Company shall not grant any Person registration rights which shall in any way whatsoever impair the priority of the registration rights granted to the
Investors in this Agreement without the prior consent of the holders of at least two-thirds of the Series C Preferred, the Series E Preferred or the Registrable Stock, as the case may be. 
  

	 	Section 6.11	Rule 144 Requirements. 

  
 Immediately after the date on which a registration statement filed by the Company under the Securities Act becomes effective, the Company shall undertake
to make publicly available, and available to the holders of Registrable Stock, such information as is necessary to enable the holders of Registrable Stock to make sales of Registrable Stock pursuant to Rule 144 of the Securities Act. The Company
shall furnish to any holder of Registrable Stock, upon request, a written statement executed by the Company as to the steps it has taken to comply with the current public information requirements of Rule 144. 
  

	 	Section 6.12	Sale of Registrable Stock to Underwriter. 

  
 Notwithstanding any provision of this Agreement to the contrary, in lieu of converting any shares of Preferred Stock prior to the filing of any
registration statement filed pursuant to this Agreement, the holder of such shares may sell such shares of Preferred Stock to the underwriters of the offering being registered upon the undertaking of such underwriters to convert the Preferred Stock
at the closing of the offering. The Company agrees to cause the Common Stock issuable on the conversion of the Preferred Stock to be issued within such time 
  

 25 

 period as will permit the underwriters to make and complete the distribution contemplated by the underwriting.

  

	 	Section 6.13	Lockup Agreement. 

  
 Each Stockholder hereby agrees that, in connection with the initial registration of the offering of any securities of the Company under the Securities Act
for the account of the Company, if so requested by the Company or any representative of the managing underwriter, such Stockholder shall enter into a lockup agreement requiring such Stockholder not to sell or otherwise transfer any securities of the
Company during the period specified by the Board at the request of the managing underwriter (the “Market Standoff Period”), which period shall not exceed 180 days following the effective date of a registration statement of the
Company filed under the Securities Act; provided, that the Market Standoff Period shall only continue for as long as (i) all Company directors and holders of three percent (3%) or more of the Capital Stock of the Company (on a fully diluted
basis) are subject to the same lockup agreement and (ii) if any party subject to a lockup is wholly or partially released therefrom, each party shall be similarly released to the same extent pro rata in accordance with such party’s holdings.
The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period. 
  

	 	Section 6.14	Transfer of Registration Rights. 

  
 The registration rights of any Investor under this Agreement may be transferred only to any transferee who acquires at least twenty percent (20%) of such
Investor’s Series C Registrable Stock or Series E Registrable Stock (as the case may be) (held as of the date of the initial issuance of the Series C Preferred or Series E Registrable Stock (as the case may be)) and to any Affiliate of such
Investor. 
  

	 	Section 6.15	Effective Period of Registration. 

  
 Once any registration effected by the Company pursuant to this Article VI becomes effective, the Company shall file all reports, financial
statements and other documents necessary to keep such registration statement current and the registration in effect until the earlier of (i) the sale of all securities offered for sale pursuant to the registration statement, or (ii) six months from
the effective date of the registration statement. 
  

	 	Section 6.16	Changes in Preferred Stock or Common Stock. 

  
 If, and as often as, there is any change in the Preferred Stock or Common Stock by way of a stock split, stock dividend, combination or reclassification,
or through a merger, consolidation, reorganization or recapitalization, or by any other means, appropriate adjustment shall be made in the provisions hereof so that the rights and privileges granted hereby shall continue with respect to the
Preferred Stock or Common Stock as so changed. 
  

 26 

 ARTICLE VII 
 BOARD OF DIRECTORS 
  

	 	Section 7.1	Election of Directors. 

  
 (a) The Company shall use its best efforts to ensure that meetings of the Board are held at least once every three months and to meet not
less than four times per year. The Board shall initially consist of seven members. 
  
 (b) Prior to a QIPO, the Stockholders agree that all shares held by them or their transferees shall be voted at each annual and special
meeting of the stockholders of the Company at which, and each action by written consent of the stockholders of the Company by which, members of the Board of Directors of the Company are to be elected, to elect to the Board: 
  
 (i) one nominee of Grotech; 
  
 (ii) one nominee of NEA; 
  
 (iii) one nominee of J. Ferber; 
  
 (iv) one nominee of S. Ferber, 
  
 (v) two nominees of S. Ferber and J. Ferber who shall be
reasonably acceptable to the Investor Directors; and 
  
 (vi) one nominee of Reuters so long as Reuters holds at least 25% of the Series E Preferred initially purchased by Reuters under the Purchase Agreement and, thereafter, one nominee of the Series E Investors for so long as they hold the
Minimum Series E Shares. 
  
 The Directors nominated by Grotech, NEA, and the
Series E Investors as contemplated in this Section 7.1 are referred to as the “Investor Directors.” 
  
 (c) Prior to a QIPO, each of Grotech, Blue Chip, NEA, Reuters and MCI shall have the right to designate an observer to attend the
Company’s Board of Directors, who shall be reasonably acceptable to the Ferber Directors and shall have no right to vote on any matter that comes before the Board of Directors. 
  
 (d) Prior to a QIPO, J. Ferber and S. Ferber shall have the right, acting together, to designate an observer
to attend the Company’s Board of Directors, who shall be reasonably acceptable to the Investor Directors and shall have no right to vote on any matter that comes before the Board of Directors. 
  

	 	Section 7.2	Vacancies. 

  
 In the event a vacancy shall occur for any reason in the Board, such vacancy shall be filled by an individual who shall be designated by the same
Stockholder that was entitled to designate the person to be replaced. 
  

 27 

 ARTICLE VIII 
 COMPENSATION COMMITTEE 
  
 So long as the Series C Investors hold, in the aggregate, at least 50,000 shares of Series C Preferred or Series C Registrable Stock, the Company shall establish and maintain a three person Compensation Committee of the Board (the
“Compensation Committee”) which shall be comprised of one nominee of Grotech, one nominee of NEA and one nominee of S. Ferber. No material increase in compensation or other remuneration, or additional compensation or other
remuneration, from the date hereof, shall be paid to, and no Capital Stock or option or warrant of the Company shall be issued to or granted to, any director, officer or management level employee, or any third party consultant or advisor to the
Company or any of its Subsidiaries, without the approval of the Compensation Committee. 
  
 ARTICLE IX 
 MISCELLANEOUS 
  

	 	Section 9.1	Adjustments Affecting Registrable Securities. 

  
 The Company shall not effect a stock split or combination of shares or take any other action, or permit any change to occur, with respect to its Capital
Stock that would adversely affect at such time the ability of the holders of Registrable Stock to include such Registrable Stock in a registration undertaken pursuant to this Agreement or which would adversely affect the marketability of such
Registrable Stock in any such registration. 
  

	 	Section 9.2	Specific Performance. 

  
 Inasmuch as the shares of the Company’s Capital Stock cannot be readily purchased or sold in the open market, irreparable damage would result in the
event that the provisions of this Agreement are not specifically enforced. Therefore, the rights to, or obligations of, the parties hereto shall be enforceable in a court of equity by a decree of specific performance and appropriate injunctive
relief may be applied for and granted in connection therewith. Such remedies, and all other remedies provided for in this Agreement, shall, however, be cumulative and not exclusive and shall be in addition to any other remedies which any party may
have under this Agreement or otherwise. 
  

	 	Section 9.3	Aggregation of Shares. 

  
 All of the Capital Stock held or acquired by Affiliates of the Investors shall be aggregated together for the purpose of determining the availability of
any rights under this Agreement. 
  

 28 

	 	Section 9.4	Endorsement of Certificate. 

  
 Upon the execution of this Agreement, each certificate for shares of Common Stock and Preferred Stock now registered or to be issued in the name of the
Stockholders shall be endorsed by the Secretary of the Company as follows: 
  
 “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE
AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE
BEEN SO REGISTERED UNDER THOSE ACTS OR IF EXEMPTIONS FROM REGISTRATION
ARE AVAILABLE. 
  
 THIS CERTIFICATE IS TRANSFERABLE ONLY UPON COMPLIANCE WITH THE PROVISIONS
OF THAT CERTAIN AMENDED AND RESTATED SENIOR STOCKHOLDERS’ RIGHTS AGREEMENT
DATED AS OF JUNE 23, 2000 BY AND AMONG ADVERTISING.COM, INC. AND EACH
OF THE STOCKHOLDERS NAMED THEREIN, A COPY OF WHICH IS ON FILE
IN THE OFFICE OF THE SECRETARY OF THE COMPANY AND IS AVAILABLE
UPON REQUEST OF ANY STOCKHOLDER WITHOUT CHARGE.” 
  

All certificates for any shares of Capital Stock hereinafter issued to the Stockholders shall bear the same endorsement, and this Agreement shall cover
all such stock. 
  

	 	Section 9.5	Term. 

  
 Notwithstanding anything contained herein to the contrary, this Agreement shall terminate, and all rights and obligations hereunder shall cease, upon the
earlier to occur of the termination of this Agreement as provided by applicable Maryland law or the occurrence of any of the following events: 
  
 (a) The written agreement of each of the then parties hereto; or 
  
 (b) The cessation of the Company’s business. 
  
 The provisions of Article II, Article III, Article IV,
and Article V above shall terminate and be of no further force and effect upon the completion of the QIPO. 
  

	 	Section 9.6	Notices. 

  
 All notices, offers, acceptances, requests and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered
or mailed by certified or registered mail to the Stockholders at their addresses on the Company records, and to the Company at the Company’s principal place of business. Any party hereto may change his or its address for notice by giving notice
thereof in the manner herein above provided. 
  

	 	Section 9.7	Parties in Interest. 

  
 All covenants and agreements contained in this Agreement, by or on behalf of any of the parties executing this Agreement shall bind such parties, and
shall bind and inure to the benefit of the respective successors and permitted assigns of the parties hereto whether so expressed or not; provided, however, that the foregoing shall not in and of itself permit the assignment of the rights and
obligations hereunder or thereunder. 
  
  

 29 

	 	Section 9.8	Governing Law. 

  
 This Agreement shall be governed by and construed in accordance with the internal laws of the State of Maryland, without giving effect to its conflicts of
laws provisions. The parties hereto agree and acknowledge that each party has retained counsel in connection with the negotiation and preparation of this Agreement and the Purchase Agreement and that any rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the foregoing agreements or any amendment, schedule or exhibits thereto. 
  

	 	Section 9.9	Entire Agreement. 

  
 This Agreement, together with the Purchase Agreement, including the Schedules and Exhibits hereto, constitutes the sole and entire agreement of the
parties hereto and supersedes all prior agreements and understandings, oral and written, including but not limited to the Original Stockholders Agreement, among the parties hereto with respect to the subject matter hereof. 
  

	 	Section 9.10	Counterparts. 

  
 This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument. 
  

	 	Section 9.11	Amendments. 

  
 This Agreement may not be amended or modified, and no provisions hereof may be waived, without the written consent of the Company, S. Ferber, J. Ferber,
and Investors holding at least 60% of the issued and outstanding of each of (a) the Series C Preferred or the Series C Registrable Stock and (b) the Series E Preferred or the Series E Registrable Stock, respectively. 
  

	 	Section 9.12	Severability. 

  
 Each provision of this Agreement shall be treated as a separate and independent clause, and the unenforceability of any one clause shall in no way impair
the enforceability of any of the other clauses herein. If one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable at law,
such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear. 
  

	 	Section 9.13	Titles and Subtitles. 

  
 The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting any term or provision
of this Agreement. 
  

	 	Section 9.14	Pronouns. 

  
 All pronouns used herein shall be deemed to refer to the masculine, feminine or neuter gender as the context requires. 
  

 30 

 Section 9.15 Amendment of Amended and Restated Stockholders’ Agreement. 
  
 By executing this Agreement, both J. Ferber and S. Ferber, holding more than
fifty-one percent (51%) of the issued and outstanding Common Stock of the Company, hereby agree that this Agreement constitutes an amendment to the Amended and Restated Stockholders Agreement dated May 19, 1999 by and among the Company, the
Management Stockholders, the Series A Holders, and the Series B Holders (the “Amended and Restated Agreement”) in such manner and form as to make this Agreement senior to the Amended and Restated Agreement and further, that any conflict in
the performance of the Company’s obligations or a Stockholder’s obligations herein with their respective obligations pursuant to the Amended and Restated Agreement, this Agreement shall prevail and govern the conduct of the Company and
such Stockholder(s). Subject to the foregoing, the Amended and Restated Agreement shall remain in full force and effect. 
  
 Section 9.16 Senior Registration Rights Agreement. 
  

By executing this Agreement, both J. Ferber and S. Ferber, holding more than fifty-one (51%) of the issued and outstanding Common Stock of the Company,
and the Company, agree that this Agreement constitutes and shall be deemed to be a “Senior Registration Rights Agreement” pursuant to Section 10.3 of that certain Piggyback Registration Rights Agreement, dated June 25, 1999,
by and between the Company and the holders of capital stock set forth therein (the “Piggyback Agreement”) and further, that any conflict in the performance of the Company’s obligations or a Stockholder’s obligations herein
with their respective obligations pursuant to the Piggyback Agreement, this Agreement shall prevail and govern the conduct of the Company and such Stockholder(s). Further, that S. Ferber, J. Ferber and the Company agree and covenant to take any and
all actions necessary to ensure compliance with and the enforcement of this Section 9.15. Subject to the foregoing, the Piggyback Agreement shall remain in full force and effect. 
  
 [Signature page follows] 
  
  

 31 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal as of the date first above
written. 
  

			
	COMPANY:
	
	 ADVERTISING.COM, INC., a Maryland corporation

		
	By:	 	 
	 	 	

	 	 	 Scott Ferber
 President

  

 Signature Page to the Amended and Restated Senior Stockholders’ Rights Agreement

			
	INVESTORS:
	
	REUTERS HOLDING SWITZERLAND SA
		
	By:	 	 
	 	 	

	 Name:
	 	

	 Title:
	 	

  

 Signature Page to the Amended and Restated Senior Stockholders’ Rights Agreement

			
	WPP DOTCOM HOLDINGS (TEN) LLC
		
	By:	 	 
	 	 	

	 Name:
	 	

	 Title:
	 	

  

 Signature Page to the Amended and Restated Senior Stockholders’ Rights Agreement

			
	MCI WORLDCOM VENTURE FUND, INC.
		
	By:	 	 
	 	 	

	 Name:
	 	

	 Title:
	 	

  

 Signature Page to the Amended and Restated Senior Stockholders’ Rights Agreement

			
	GROTECH PARTNERS V, L.P.,
		
	By:	 	 Grotech Partners V, LLC,
 General
Partner

		
	By:	 	 
	 	 	

	 	 	 Patrick Kerins
 Managing Director

  

 Signature Page to the Amended and Restated Senior Stockholders’ Rights Agreement

			
	NEW ENTERPRISE ASSOCIATES VIII, L.P.
		
	By:	 	NEA General Partners, L.P.
		
	By:	 	 
	 	 	

	 	 	 Nancy Dorman
 General Partner

  

 Signature Page to the Amended and Restated Senior Stockholders’ Rights Agreement

			
	BLUE CHIP CAPITAL FUND III
		
	By:	 	 Blue Chip Venture Company Ltd.

		
	By:	 	 
	 	 	

	 	 	 John C. McIlwraith
 General
Partner

  

 Signature Page to the Amended and Restated Senior Stockholders’ Rights Agreement

					
	CREDIT SUISSE FIRST BOSTON VENTURE FUND I, L.P.
		
	By:	 	 QBB Management I, L.L.C., its General Partner

		
	By:	 	 
	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	Member
	
	CREDIT SUISSE FIRST BOSTON TECHNOLOGY GROUP FUND II, L.P.
		
	By:	 	 Merchant Capital, Inc., its General Partner

		
	By:	 	 
	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	Director
	
	MERCHANT CAPITAL, INC.
		
	By:	 	 
	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	Director

  
 Signature
Page to the Amended and Restated Senior Stockholders’ Rights Agreement 

					
	CREDIT SUISSE FIRST BOSTON EQUITY PARTNERS, L.P.
		
	By:	 	Hemisphere Private Equity Partners, Ltd., its General Partner
		
	By:	 	 
	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	 
	
	CREDIT SUISSE FIRST BOSTON EQUITY PARTNERS (BERMUDA), L.P.
		
	By:	 	Hemisphere Private Equity Partners, Ltd., its General Partner
		
	By:	 	 
	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	 
	
	EMA PRIVATE EQUITY FUND 1999, L.P.
		
	By:	 	 Credit Suisse First Boston (Bermuda)
 Limited, its General Partner

		
	By:	 	 
	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	 

  
 Signature
Page to the Amended and Restated Senior Stockholders’ Rights Agreement 

					
	CREDIT SUISSE FIRST BOSTON U.S. EXECUTIVE ADVISORS, L.P.
		
	By:	 	Hemisphere Private Equity Partners, Ltd., its General Partner
		
	By:	 	 
	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	 
	
	CREDIT SUISSE FIRST BOSTON FINDERS AND SCREENERS, L.P.
		
	By:	 	Merchant Capital, Inc., its General Partner
		
	By:	 	 
	 	 	

	 	 	Name:	 	 
	 	 	Title:	 	 

  
 Signature
Page to the Amended and Restated Senior Stockholders’ Rights Agreement 

					
	HAMBRECHT & QUIST CALIFORNIA
		
	By:	 	 
	 	 	

	 	 	By:	 	Thomas Szymoniak
	 	 	Title:	 	 
	
	H&Q EMPLOYEE VENTURE FUND 2000, L.P.
		
	By:	 	H&Q Venture Management, L.L.C., its General Partner
		
	By:	 	 
	 	 	

	 	 	Name:	 	Thomas Szymoniak
	 	 	Title:	 	 
	
	ACCESS TECHNOLOGY PARTNERS, L.P.
		
	By:	 	Access Technology Management, L.L.C., its General Partner
		
	By:	 	H&Q Venture Management, L.L.C., its Managing Member
		
	By:	 	 
	 	 	

	 	 	Name:	 	Thomas Szymoniak
	 	 	Title:	 	 
	
	ACCESS TECHNOLOGY PARTNERS BROKERS FUND, L.P.
		
	By:	 	H&Q Venture Management, L.L.C., its General Partner
		
	By:	 	 
	 	 	

	 	 	Name:	 	Thomas Szymoniak
	 	 	Title:	 	 

  
 Signature
Page to the Amended and Restated Senior Stockholders’ Rights Agreement 

  

			
	ABS EMPLOYEES’ VENTURE FUND L.P.
		
	 	 	 
	 By:
	 	 
	 	 	

	 Name:
	 	 
	 	 	

	 Title:
	 	 
	 	 	

  
 Signature
Page to the Amended and Restated Senior Stockholders’ Rights Agreement 

	
	JOHN J. HARDIG
	
	 
	

	 

  
 Signature
Page to the Amended and Restated Senior Stockholders’ Rights Agreement 

	
	 EDWARD REID CURLEY

	
	 
	

	 

  
 Signature
Page to the Amended and Restated Senior Stockholders’ Rights Agreement 

	
	 FRANK BONSAL

	
	 
	

	 

  
 Signature
Page to the Amended and Restated Senior Stockholders’ Rights Agreement 

			
	MANAGEMENT STOCKHOLDERS
	
	

	Scott Ferber
	
	

	John Ferber
	
	

	Thomas P. McMahon
	
	

	Michael Woosley
	
	

	Stein Kretsinger

  

 Signature Page to the Amended and Restated Senior Stockholders’ Rights Agreement

 EXHIBIT A 
  
 JOINDER AGREEMENT 
  
 The undersigned (a “Joining Party”) hereby acknowledges and agrees to become party to and to succeed to all of the rights and obligations
of a “Stockholder” under the Amended and Restated Senior Stockholders Agreement dated June             , 2000 (the “Stockholders Agreement”), by and
among Advertising.com, Inc., a Maryland corporation and the Stockholders. Capitalized terms used but not defined herein shall have the meanings given such terms in the Stockholders Agreement. 
  
 Accordingly, the Joining Party hereby acknowledges, agrees and confirms that,
by its execution of this Joinder Agreement, the Joining Party will be deemed to be a party to the Stockholders Agreement and shall have all of the obligations of a “Stockholder” thereunder as if it had executed the Stockholders
Agreement. The Joining Party hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Stockholders Agreement. 
  
 IN WITNESS WHEREOF, the undersigned has executed this Joinder Agreement as of the date written below. 
  

									
	 Date:
                        
	 	 	 	STOCKHOLDER
				
	 	 	 	 	 	 	

					
	 	 	 	 	 	 	 Print Name:
	 	

  
 Number and Type 
 of Equity Securities: 
  
                      shares of Series E Preferred Stock 
  

 Schedule 1 
  
 INVESTORS 
  

							
	 Name and Address of Stockholder

	  	 Number of Shares of
Series C Preferred

	  	 Number of Shares of
Series E Preferred

	  	 Number of Shares of
Common Stock

	 Reuters Holding Switzerland SA
 153 Route de Thonon
 1245 Collogne-Bellerive
 Switzerland
	  	0	  	338,983	  	0
				
	 MCI Worldcom Venture Fund, Inc.
 1801 Pennsylvania Avenue, N.W.
 Washington, D.C. 20006
	  	0	  	254,237	  	0
				
	 WPP Dotcom Holdings (Ten) LLC
 277 Farm Street
 London W1X6D
 Attn: Eric Salama
	  	0	  	135,593	  	0
				
	 Grotech Partners V, L.P.
 9690 Deereco Road
 Timonium, Maryland 21093
 Attn: Patrick J. Kerins
	  	232,558	  	207,131	  	0
				
	 New Enterprise Associates VIII, L.P.
 1191 Freedom Drive
 One Fountain Square,
 Suite 580
 Reston, Virginia 20190
 Attn: Arthur J. Marks
	  	229,943	  	204,801	  	0
				
	 Blue Chip Capital Fund III
  
 110 Chiquita Center
 250 East Fifth Street
 Cincinnati, Ohio 45202
 Attn: Tim Schigel
	  	58,140	  	135,593	  	0

  

							
	 Name and Address of Stockholder

	  	 Number of Shares of
Series C Preferred

	  	 Number of Shares of
Series E Preferred

	  	 Number of Shares of
Common Stock

	 Credit Suisse First Boston Equity Partners, L.P.
 c/o CSFB Advisory Partners, L.L.C.
 11 Madison Avenue
 New York, NY 10010
 Attn: General Counsel
	  	0	  	34,740	  	0
				
	 Credit Suisse First Boston Equity Partners (Bermuda), L.P.
 c/o CSFB Advisory Partners, L.L.C.
 11 Madison Avenue
 New York, NY 10010
 Attn: General Counsel
	  	0	  	9,711	  	0
				
	 EMA Private Equity Fund 1999, L.P.
 c/o CSFB Advisory Partners, L.L.C.
 11 Madison Avenue
 New York, NY 10010
 Attn: General Counsel
	  	0	  	4,888	  	0
				
	 Credit Suisse First Boston U.S. Executive Advisors, L.P.
 c/o CSFB Advisory Partners, L.L.C.
 11 Madison Avenue
 New York, NY 10010
 Attn: General Counsel
	  	0	  	34	  	0
				
	 Credit Suisse First Boston Finders and Screeners, L.P.
 c/o CSFB Advisory Partners, L.L.C.
 11 Madison Avenue
 New York, NY 10010
 Attn: General Counsel
	  	0	  	1,966	  	0
				
	 Credit Suisse First Boston Venture Fund I, L.P.
 2400 Hanover Street
 Palo Alto, CA 94304
 Attn: Frank Quattrone
	  	0	  	10,072	  	0

  

							
	 Name and Address of Stockholder

	  	 Number of Shares of
Series C Preferred

	  	 Number of Shares of
Series E Preferred

	  	 Number of Shares of
Common Stock

	 Credit Suisse First Boston Technology Group Fund II, L.P.
 2400 Hanover Street
 Palo Alto, CA 94304
 Attn: Frank Quattrone
	  	0	  	3,193	  	0
				
	 Merchant Capital, Inc.
 2400 Hanover Street
 Palo Alto, CA 94304
 Attn: Frank Quattrone
	  	0	  	3,193	  	0
				
	 Hambrecht & Quist California
	  	0	  	2,848	  	0
				
	 Hambrecht & Quist California
	  	0	  	1,695	  	0
				
	 H&Q Employee Venture Fund 2000, L.P.
	  	0	  	1,695	  	0
				
	 Access Technology Partners, L.P.
	  	0	  	27,119	  	0
				
	 Access Technology Partners Brokers Fund, L.P.
	  	0	  	543	  	0
				
	 ABS Employees’ Venture Fund L.P.
	  	0	  	11,402	  	0
				
	 John J. Hardig
	  	0	  	1,017	  	0
				
	 Edward Reid Curley
	  	0	  	1,356	  	0
				
	 Frank Bonsal
 1119 St. Paul Street
 Baltimore, Maryland 21202
	  	58,140	  	 	  	0

  

 Schedule 2 
  
 MANAGEMENT STOCKHOLDERS 
  

			
	 Name and Address of Stockholder

	  	Number of Shares of
Common Stock

	 John B. Ferber
 c/o Advertising.com, Inc.
 1010 Hull Street, Suite 200
 Baltimore, Maryland 21230
	  	1,902,400
		
	 Scott A. Ferber
 c/o Advertising.com, Inc.
 1010 Hull Street, Suite 200
 Baltimore, Maryland 21230
	  	1,910,000
		
	 Thomas P. McMahon
 c/o Advertising.com, Inc.
 1010 Hull Street, Suite 200
 Baltimore, Maryland 21230
	  	10,000
		
	 Stein Kretsinger
 c/o Advertising.com, Inc.
 1010 Hull Street, Suite 200
 Baltimore, Maryland 21230
	  	108,800
		
	 Michael Woosley
 c/o Advertising.com, Inc.
 1010 Hull Street, Suite 200
 Baltimore, Maryland 21230
	  	8,800EXHIBIT 10.1

 Exhibit 10.1 
  
 ADVERTISING.COM, INC. 
  
 1999 STOCK OPTION AND INCENTIVE PLAN 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page

	1.	 	 PURPOSE
	  	1
	2.	 	 DEFINITIONS
	  	1
	3.	 	 ADMINISTRATION OF THE PLAN
	  	4
	 	 	 3.1.
	 	 Board
	  	4
	 	 	 3.2.
	 	 Committee
	  	5
	 	 	 3.3.
	 	 Grants
	  	5
	 	 	 3.4.
	 	 No Liability
	  	6
	4.	 	 STOCK SUBJECT TO THE PLAN
	  	6
	5.	 	 EFFECTIVE DATE AND TERM OF THE PLAN
	  	6
	 	 	 5.1.
	 	 Effective Date
	  	6
	 	 	 5.2.
	 	 Term
	  	6
	6.	 	 OPTION GRANTS
	  	7
	 	 	 6.1.
	 	 Company or Subsidiary Employees; Service Providers
	  	7
	 	 	 6.2.
	 	 Successive Grants
	  	7
	7.	 	 LIMITATIONS ON GRANTS
	  	7
	 	 	 7.1.
	 	 Limitations on Incentive Stock Options
	  	7
	8.	 	 AWARD AGREEMENT
	  	7
	9.	 	 OPTION PRICE
	  	7
	10.	 	 VESTING, TERM AND EXERCISE OF OPTIONS
	  	8
	 	 	 10.1.
	 	 Vesting and Option Period
	  	8
	 	 	 10.2.
	 	 Term
	  	8
	 	 	 10.3.
	 	 Acceleration
	  	8
	 	 	 10.4.
	 	 Termination of Employment or Other Relationship
	  	9
	 	 	 10.5.
	 	 Rights in the Event of Death
	  	9
	 	 	 10.6.
	 	 Rights in the Event of Disability
	  	9
	 	 	 10.7.
	 	 Limitations on Exercise of Option
	  	10
	 	 	 10.8.
	 	 Method of Exercise
	  	10
	 	 	 10.9.
	 	 Delivery of Stock Certificates
	  	11
	11.	 	 TRANSFERABILITY OF OPTIONS; REPURCHASE RIGHTS
	  	11
	 	 	 11.1.
	 	 Transferability of Options
	  	11
	 	 	 11.2.
	 	 Family Transfers
	  	11
	 	 	 11.3.
	 	 Nontransferability of Shares
	  	11
	 	 	 11.4.
	 	 Repurchase Rights
	  	12
	 	 	 11.5.
	 	 Installment Payments
	  	13
	 	 	 11.6.
	 	 Publicly Traded Stock
	  	13
	 	 	 11.7.
	 	 Legend
	  	13
	12.	 	 RESTRICTED STOCK
	  	13
	 	 	 12.1.
	 	 Grant of Restricted Stock or Restricted Stock Units
	  	13
	 	 	 12.2.
	 	 Restrictions
	  	13

							
	 	 	 12.3.
	 	 Restricted Stock Certificates
	  	14
	 	 	 12.4.
	 	 Rights of Holders of Restricted Stock
	  	14
	 	 	 12.5.
	 	 Rights of Holders of Restricted Stock Units
	  	14
	 	 	 12.6.
	 	 Termination of Employment or Other Relationship
	  	15
	 	 	 12.7.
	 	 Rights in the Event of Death
	  	15
	 	 	 12.8.
	 	 Rights in the Event of Disability
	  	15
	 	 	 12.9.
	 	 Delivery of Stock and Payment Therefor
	  	16
	13.	 	 PARACHUTE LIMITATIONS
	  	16
	14.	 	 REQUIREMENTS OF LAW
	  	17
	 	 	 14.1.
	 	 General
	  	17
	 	 	 14.2.
	 	 Rule 16b-3
	  	17
	15.	 	 AMENDMENT AND TERMINATION OF THE PLAN
	  	18
	16.	 	 EFFECT OF CHANGES IN CAPITALIZATION
	  	18
	 	 	 16.1.
	 	 Changes in Stock
	  	18
	 	 	 16.2.
	 	 Reorganization in Which the Company Is the Surviving Entity and in Which No Change of Control Occurs
	  	19
	 	 	 16.3.
	 	 Reorganization, Sale of Assets or Sale of Stock Which Involves a Change of Control
	  	19
	 	 	 16.4.
	 	 Adjustments
	  	20
	 	 	 16.5.
	 	 No Limitations on Company
	  	20
	17.	 	 DISCLAIMER OF RIGHTS
	  	20
	18.	 	 NONEXCLUSIVITY OF THE PLAN
	  	20
	19.	 	 WITHHOLDING TAXES
	  	21
	20.	 	 CAPTIONS
	  	21
	21.	 	 OTHER PROVISIONS
	  	21
	22.	 	 NUMBER AND GENDER
	  	22
	23.	 	 SEVERABILITY
	  	22
	24.	 	 POOLING
	  	22
	25.	 	 GOVERNING LAW
	  	22

 ADVERTISING.COM, INC. 
 (formerly known as TeknoSurf.Com, Inc.) 
  
 1999 STOCK OPTION AND INCENTIVE PLAN 
  
 Advertising.com, Inc., formerly known as TeknoSurf.Com, Inc., a Maryland corporation (the “Company”), sets forth herein the terms of its 1999 Stock Option and Incentive Plan (the “Plan”) as
follows: 
  

	1.	PURPOSE 

  
 The Plan is intended to enhance the Company’s and its affiliates’ (as defined herein) ability to attract and retain highly qualified officers,
key employees, and other persons, and to motivate such officers, key employees, and other persons to serve the Company and its affiliates and to expend maximum effort to improve the business results and earnings of the Company, by providing to such
officers, key employees and other persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the Plan provides for the grant of stock options, restricted stock and
restricted stock units in accordance with the terms hereof. Stock options granted under the Plan may be non-qualified stock options or incentive stock options, as provided herein. 
  

	2.	DEFINITIONS 

  
 For purposes of interpreting the Plan and related documents (including Award Agreements), the following definitions shall apply: 
  
 2.1 “affiliate” of, or person “affiliated” with, a person
means any company or other trade or business that controls, is controlled by or is under common control with such person within the meaning of Rule 405 of Regulation C under the Securities Act. 
  
 2.2 “Award Agreement” means the stock option agreement, restricted
stock agreement, restricted stock unit agreement or other written agreement between the Company and an Optionee that evidences and sets out the terms and conditions of a Grant. 
  
 2.3 “Benefit Arrangement” shall have the meaning set forth in Section 13 hereof. 
  
 2.4 “Board” means the Board of Directors of the Company.

  

 -1- 

 2.5 “Change of Control” means (i) the dissolution or liquidation of the Company or a merger,
consolidation, or reorganization of the Company with one or more other entities in which the Company is not the surviving entity, (ii) a sale of substantially all of the assets of the Company to another entity, or (iii) any transaction (including
without limitation a merger or reorganization in which the Company is the surviving entity) which results in any person or entity (other than persons who are shareholders or affiliates of the Company at the time the Plan is approved by the
Company’s shareholders) owning 50% or more of the combined voting power of all classes of stock of the Company. 
  
 2.6 “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. 
  
 2.7 “Committee” means a committee of, and designated from time to
time by resolution of, the Board, which shall consist of no fewer than two members of the Board, none of whom shall be an officer or other salaried employee of the Company or any affiliate of the Company. 
  
 2.8 “Company” means Advertising.com, Inc. 
  
 2.9 “Effective Date” means February 15, 1999, the effective date
approved by the Board. 
  
 2.10 “Exchange Act” means the
Securities Exchange Act of 1934, as now in effect or as hereafter amended. 
  
 2.11 “Fair Market Value” means the value of a share of Stock, determined as follows: if on the Grant Date or other determination date the Stock is listed on an established national or regional stock
exchange, is admitted to quotation on the NASDAQ National Market, or is publicly traded on an established securities market, the Fair Market Value of a share of Stock shall be the closing price of the Stock on such exchange or in such market (the
highest such closing price if there is more than one such exchange or market) on the Grant Date or such other determination date (or if there is no such reported closing price, the Fair Market Value shall be the mean between the highest bid and
lowest asked prices or between the high and low sale prices on such trading day) or, if no sale of Stock is reported for such trading day, on the next preceding day on which any sale shall have been reported. If the Stock is not listed on such an
exchange, quoted on such system or traded on such a market, Fair Market Value shall be the value of the Stock as determined by the Board in good faith. 
  
 2.12 “Family Member” means a person who is a child, stepchild, grandchild, parent, stepparent, niece, nephew, mother-in-law, father-in-law,
son-in-law, 
  

 -2- 

 daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of the Optionee, any person sharing
the Optionee’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the Optionee) control the management of assets, and any
other entity in which these persons (or the Optionee) own more than fifty percent of the voting interests. 
  
 2.13 “Grant” means an award of an Option, Restricted Stock or Restricted Stock Units under the Plan. 
  
 2.14 “Grant Date” means, as determined by the Board or authorized
Committee, (1) the date as of which the Board or such Committee approves a Grant, (ii) the date on which the recipient of a Grant first becomes eligible to receive a Grant under Section 6 hereof, or (iii) such other date as may be
specified by the Board or such Committee. 
  
 2.15 “Incentive
Stock Option” means an “incentive stock option” within the meaning of Section 422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time. 
  
 2.16 “Option” means an option to purchase one or more shares of
Stock pursuant to the Plan. 
  
 2.17 “Option Period”
means the period during which Options may be exercised as set forth in Section 10 hereof. 
  
 2.18 “Option Price” means the purchase price for each share of Stock subject to an Option. 
  
 2.19 “Optionee” means a person who receives or holds an Option,
Restricted Stock or Restricted Stock Units under the Plan. 
  
 2.20 “Other Agreement” shall have the meaning set forth in Section 13 hereof. 
  
 2.21 “Plan” means this Advertising.com, Inc, 1999 Stock Option and Incentive Plan. 
  
 2.22 “Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange Act.

  
 2.23 “Restricted Period” means the period during
which Restricted Stock or Restricted Stock Units are subject to restrictions or conditions pursuant to Section 12.2 hereof. 
  

 -3- 

 2.24 “Restricted Stock” means shares of Stock, awarded to an Optionee pursuant to Section
12 hereof, that are subject to restrictions and to a risk of forfeiture. 
  
 2.25 “Restricted Stock Unit” means a unit awarded to an Optionee pursuant to Section 12 hereof, which represents a conditional right to receive a share of Stock in the future, and which is subject to
restrictions and to a risk of forfeiture. 
  
 2.26
“Securities Act” means the Securities Act of 1933, as now in effect or as hereafter amended. 
  
 2.27 “Service Provider” means a director, consultant or adviser to the Company, a manager of the Company’s properties or affairs, or other
similar service provider or affiliate of the Company, and employees of any of the foregoing, as such persons may be designated from time to time by the Board pursuant to Section 6 hereof. 
  
 2.28 “Stock” means the common stock, no par value per share, of the
Company. 
  
 2.29 “Subsidiary” means any
“subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code. 
  
 2.30 “Termination Date” means the date upon which an Option shall terminate or expire, as set forth in Section 10.2 hereof.

  

	3.	ADMINISTRATION OF THE PLAN 

  

	 	3.1.	Board. 

  
 The Board shall have such powers and authorities related to the administration of the Plan as are consistent with the Company’s certificate of
incorporation and by-laws and applicable law. The Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Grant or any Award Agreement, and shall have full power and
authority to take all such other actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan, any Grant or
any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the Board present at a meeting or by unanimous consent of the Board executed in writing in accordance with the Company’s
certificate of incorporation and by-laws and applicable law. The 
  

 -4- 

 interpretation and construction by the Board of any provision of the Plan, any Grant or any Award Agreement shall be
final and conclusive. 
  

	 	3.2.	Committee. 

  
 The Board from time to time may delegate to a Committee such powers and authorities related to the administration and implementation of the Plan, as set
forth in Section 3.1 above and in other applicable provisions, as the Board shall determine, consistent with the certificate of incorporation and by-laws of the Company and applicable law. In the event that the Plan, any Grant or any Award
Agreement entered into hereunder provides for any action to be taken by or determination to be made by the Board, such action may be taken by or such determination may be made by the Committee if the power and authority to do so has been delegated
to the Committee by the Board as provided for in this Section. Unless otherwise expressly determined by the Board, any such action or determination by the Committee shall be final, binding and conclusive. 
  

	 	3.3.	Grants. 

  
 Subject to the other terms and conditions of the Plan, the Board shall have full and final authority (i) to designate Optionees, (ii) to determine the
type or types of Grant to be made to an Optionee, (iii) to determine the number of shares of Stock to be subject to a Grant, (iv) to establish the terms and conditions of each Grant (including, but not limited to, the exercise price of any Option,
the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of a Grant or the shares of Stock subject thereto, and any terms or conditions that may be necessary
to qualify Options as Incentive Stock Options), (v) to prescribe the form of each Award Agreement evidencing a Grant, and (vi) to amend, modify, or supplement the terms of any outstanding Grant. Such authority specifically includes the authority, in
order to effectuate the purposes of the Plan but without amending the Plan, to modify Grants to eligible individuals who are foreign nationals or are individuals who are employed outside the United States to recognize differences in local law, tax
policy, or custom. As a condition to any Grant, the Board shall have the right, at its discretion, to require Optionees to return to the Company Grants previously awarded under the Plan. Subject to the terms and conditions of the Plan, any such
subsequent Grant shall be upon such terms and conditions as are specified by the Board at the time the new Grant is made. The Company may retain the right in an Award Agreement to cause a forfeiture of the gain realized by an Optionee on account of
actions taken by the Optionee in violation or breach of or in conflict with any non-competition agreement, any agreement prohibiting solicitation of employees or clients of the Company or any affiliate thereof or any confidentiality obligation with
respect to the Company or any affiliate thereof or otherwise in competition with the Company, to the extent specified in such Award Agreement applicable to the Optionee. Furthermore, the Company may annul a Grant if the 
  

 -5- 

 Optionee is an employee of the Company or an affiliate thereof and is terminated “for cause” as defined in the
applicable Award Agreement. The Board may permit or require the deferral of any award payment, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest or dividend equivalents,
including converting such credits into deferred Stock equivalents. 
  

	 	3.4.	No Liability. 

  
 No member of the Board or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Grant or
Award Agreement. 
  

	4.	STOCK SUBJECT TO THE PLAN 

  
 Subject to adjustment as provided in Section 16 hereof, the number of shares of Stock available for issuance under the Plan shall be 337,500. Stock
issued or to be issued under the Plan shall be authorized but unissued shares. If any shares covered by a Grant are not purchased or are forfeited, or if a Grant otherwise terminates without delivery of any Stock subject thereto, then the number of
shares of Stock counted against the aggregate number of shares available under the Plan with respect to such Grant shall, to the extent of any such forfeiture or termination, again be available for making Grants under the Plan. 
  

	5.	EFFECTIVE DATE AND TERM OF THE PLAN 

  

	 	5.1.	Effective Date. 

  
 The Plan shall be effective as of the Effective Date, subject to approval of the Plan within one year of the Effective Date, by a majority of the votes
cast on the proposal at a meeting of shareholders, provided that a quorum is present or by the written consent of the holders of a majority of the Company’s shares of Stock entitled to vote. Upon approval of the Plan by the shareholders of the
Company as set forth above, all Grants made under the Plan on or after the Effective Date shall be fully effective as if the shareholders of the Company had approved the Plan on the Effective Date. If the shareholders fail to approve the Plan within
one year after the Effective Date, any Grants made hereunder shall be null and void and of no effect. 
  

	 	5.2.	Term. 

  
 The Plan has no termination date; however, no Incentive Stock Option may be granted under the Plan on or after the tenth anniversary of the Effective Date. 
  

 -6- 

	6.	OPTION GRANTS 

  

	 	6.1.	Company or Subsidiary Employees; Service Providers. 

  
 Grants (including Grants of Incentive Stock Options) may be made under the Plan to any employee of, or Service Provider providing, or who has provided,
services to, the Company or any Subsidiary, including any such employee who is an officer or director of the Company or of any Subsidiary, as the Board shall determine and designate from time to time. 
  

	 	6.2.	Successive Grants. 

  
 An eligible person may receive more than one Grant, subject to such restrictions as are provided herein. 
  

	7.	LIMITATIONS ON GRANTS 

  

	 	7.1.	Limitations on Incentive Stock Options. 

  
 An Option shall constitute an Incentive Stock Option only (i) if the Optionee of such Option is an employee of the Company or any Subsidiary of the
Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the shares of Stock with respect to which all Incentive
Stock Options held by such Optionee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Optionee’s employer and its affiliates) does not exceed $100,000. This limitation shall be applied by
taking Options into account in the order in which they were granted. 
  

	8.	AWARD AGREEMENT 

  
 Each Grant pursuant to the Plan shall be evidenced by an Award Agreement, in such form or forms as the Board shall from time to time determine. Award
Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan. Each Award Agreement evidencing a Grant of Options shall specify whether such Options are intended to be
non-qualified stock options or Incentive Stock Options, and in the absence of such specification such options shall be deemed non-qualified stock options. 
  

	9.	OPTION PRICE 

  
 The Option Price of each Option shall be fixed by the Board and stated in the Award Agreement evidencing such Option. The Option Price shall be the Fair
Market Value on the Grant Date of a share of Stock; provided, however, that in the 
  

 -7- 

 event that an Optionee would otherwise be ineligible to receive an Incentive Stock Option by reason of the provisions of
Sections 422(b)(6) and 424(d) of the Code (relating to ownership of more than ten percent of the Company’s outstanding shares of Stock), the Option Price of an Option granted to such Optionee that is intended to be an Incentive Stock Option
shall be not less than the greater of the par value or 110 percent of the Fair Market Value of a share of Stock on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a share of Stock. 
  

	10.	VESTING, TERM AND EXERCISE OF OPTIONS 

  
 10.1. Vesting and Option Period. 
  
 Subject to Sections 10.2 and 16.3 hereof, each Option granted under the Plan shall become exercisable at such times and under such
conditions as shall be determined by the Board and stated in the Award Agreement. For purposes of this Section 10.1, fractional numbers of shares of Stock subject to an Option shall be rounded down to the next nearest whole
number. The period during which any Option shall be exercisable shall constitute the “Option Period” with respect to such Option. 
  
 10.2. Term. 
  
 Each Option granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten years
from the date such Option is granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as may be fixed by the Board and stated in the Award Agreement relating to such Option; provided, however,
that in the event that the Optionee would otherwise be ineligible to receive an Incentive Stock Option by reason of the provisions of Sections 422(b)(6) and 424(d) of the Code (relating to ownership of more than ten percent of the outstanding shares
of Stock), an Option granted to such Optionee that is intended to be an Incentive Stock Option shall not be exercisable after the expiration of five years from its Grant Date. 
  
 10.3. Acceleration. 
  
 Any limitation on the exercise of an Option contained in any Award Agreement may be rescinded, modified or waived by the Board, in its sole discretion, at
any time and from time to time after the Grant Date of such Option, so as to accelerate the time at which the Option may be exercised. Notwithstanding any other provision of the Plan, no Option shall be exercisable in whole or in part prior to the
date the Plan is approved by the shareholders of the Company as provided in Section 5.1 hereof. 
  

 -8- 

 10.4. Termination of Employment or Other Relationship. 
  
 Unless otherwise provided by the Board, upon the termination of an
Optionee’s employment or other relationship with the Company other than by reason of death or “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code), any Option or portion thereof held by such Optionee
that has not vested in accordance with the provisions of Section 10.1 hereof shall terminate immediately, and any Option or portion thereof that has vested in accordance with the provisions of Section 10.1 hereof but has
not been exercised shall terminate at the close of business on the 90th day following the Optionee’s termination of employment or other relationship (or, if such 90th day is a Saturday, Sunday or holiday, at the close of business on the next
preceding day that is not a Saturday, Sunday or holiday). Upon termination of an Option or portion thereof, the Optionee shall have no further right to purchase shares of Stock pursuant to such Option or portion thereof. Whether a termination of
employment or other relationship shall have occurred for purposes of the Plan shall be determined by the Board, which determination shall be final and conclusive. For purposes of the Plan, a termination of employment, service or other relationship
shall not be deemed to occur if the Optionee is immediately thereafter a director of the Company. 
  
 10.5. Rights in the Event of Death. 
  
 Unless otherwise provided by the Board, if an Optionee dies while employed by or providing services to the Company, all Options granted to such Optionee
shall fully vest on the date of death, and the executors or administrators or legatees or distributees of such Optionee’s estate shall have the right, at any time within one year after the date of such Optionee’s death and prior to
termination of the Option pursuant to Section 10.2 above, to exercise any Option held by such Optionee at the date of such Optionee’s death. 
  

10.6. Rights in the Event of Disability. 
  
 Unless otherwise provided by the Board, if an Optionee’s employment or other relationship with the Company is terminated by reason of the
“permanent and total disability” (within the meaning of Section 22(e)(3) of the Code) of such Optionee, such Optionee’s Options shall continue to vest, and shall be exercisable to the extent that they are vested, for a period of one
year after such termination of employment or service, subject to earlier termination of the Option as provided in Section 10.2 above. Whether a termination of employment or service is to be considered by reason of “permanent and
total disability” for purposes of the Plan shall be determined by the Board, which determination shall be final and conclusive. 
  

 -9- 

 10.7. Limitations on Exercise of Option. 
  
 Notwithstanding any other provision of the Plan, in no event may any Option
be exercised, in whole or in part, prior to the date the Plan is approved by the shareholders of the Company as provided herein, or after ten years following the date upon which the Option is granted, or after the occurrence of an event referred to
in Section 16 hereof which results in termination of the Option. 
  
 10.8. Method of Exercise. 
  
 An Option that is exercisable may be exercised by the Optionee’s delivery to the Company of written notice of exercise on any business day, at the Company’s principal office, addressed to the attention of the Board. Such notice
shall specify the number of shares of Stock with respect to which the Option is being exercised and shall be accompanied by payment in full of the Option Price of the shares for which the Option is being exercised. The minimum number of shares of
Stock with respect to which an Option may be exercised, in whole or in part, at any time shall be the lesser of (i) 100 shares or such lesser number set forth in the applicable Award Agreement and (ii) the maximum number of shares available for
purchase under the Option at the time of exercise. Payment of the Option Price for the shares purchased pursuant to the exercise of an Option shall be made (i) in cash or in cash equivalents acceptable to the Company; (ii) to the extent permitted by
law and at the Board’s discretion, through the tender to the Company of shares of Stock, which shares, if acquired from the Company, shall have been held for at least six months at the time of tender and which shall be valued, for purposes of
determining the extent to which the Option Price has been paid thereby, at their Fair Market Value on the date of exercise; or (iii) to the extent permitted by law and at the Board’s discretion, by a combination of the methods described in (i)
and (ii). The Board may provide, by inclusion of appropriate language in an Award Agreement, that payment in full of the Option Price need not accompany the written notice of exercise provided that the notice of exercise directs that the certificate
or certificates for the shares of Stock for which the Option is exercised be delivered to a licensed broker acceptable to the Company as the agent for the individual exercising the Option and, at the time such certificate or certificates are
delivered, the broker tenders to the Company cash (or cash equivalents acceptable to the Company) equal to the Option Price for the shares of Stock purchased pursuant to the exercise of the Option plus the amount (if any) of federal and/or other
taxes which the Company may in its judgment, be required to withhold with respect to the exercise of the Option. An attempt to exercise any Option granted hereunder other than as set forth above shall be invalid and of no force and effect. Unless
otherwise stated in the applicable Award Agreement, an individual holding or exercising an Option shall have none of the rights of a shareholder (for example, the right to receive cash or dividend payments or distributions attributable to the
subject shares of Stock or to direct the voting of the subject shares of Stock) until the shares of Stock covered thereby are fully paid and issued to such individual. 
  

 -10- 

 Except as provided in Section 16 hereof, no adjustment shall be made for dividends, distributions or other
rights for which the record date is prior to the date of such issuance. 
  
 10.9. Delivery of Stock Certificates. 
  
 Promptly after the exercise of an Option by an Optionee and the payment in full of the Option Price, such Optionee shall be entitled to the issuance of a stock certificate or certificates evidencing such
Optionee’s ownership of the shares of Stock subject to the Option. 
  

	11.	TRANSFERABILITY OF OPTIONS; REPURCHASE RIGHTS 

  
 11.1. Transferability of Options 
  
 Except as provided in Section 11.2, during the lifetime of an Optionee, only the Optionee (or, in the event of legal incapacity or
incompetency, the Optionee’s guardian or legal representative) may exercise an Option. Except as provided in Section 11.2, no Option shall be assignable or transferable by the Optionee to whom it is granted, other than by
will or the laws of descent and distribution. 
  
 11.2. Family
Transfers. 
  
 If authorized in the applicable Award
Agreement, a Optionee may transfer, not for value, all or part of an Option which is not an Incentive Option to any Family Member. For the purpose of this Section 11.2, a “not for value” transfer is a transfer which is
(i) a gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family Members (or the Optionee) in
exchange for an interest in that entity. Following a transfer under this Section 11.2, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. Subsequent
transfers of transferred Options are prohibited except to Family Members of the original Optionee in accordance with this Section 11.2, or by will or the laws of descent and distribution. The events of termination of employment
or other relationship of Section 10.4 hereof shall continue to be applied with respect to the original Optionee, following which the Option shall be exercisable by the transferee only to the extent, and for the periods specified in
Sections 10.4, 10.5 or 10.6. 
  
 11.3. Nontransferability of Shares 
  
 Subject to
Section 11.6 below, an Optionee (or such other individual who is entitled to exercise an Option) shall not sell, pledge, assign, gift, transfer, or otherwise dispose of any shares of Stock acquired pursuant to an Option to any person or
entity without first offering such shares to the Company for purchase on the same terms and conditions as those offered the proposed transferee. The 
  

 -11- 

 Company may assign its right of first refusal under this Section 11.3 in whole or in part, to (1) any
holder of stock or other securities of the Company (a “Stockholder”), (2) any affiliate or (3) any other person or entity that the Board of Directors of the Company determines has a sufficient relationship with or interest in the Company.
The Company shall give reasonable written notice to the Optionee of any such assignment of its rights. The restrictions of this Section 11.3 apply to any person to whom Stock that was originally acquired pursuant to an Option is sold,
pledged, assigned, bequeathed, gifted, transferred or otherwise disposed of, without regard to the number of such subsequent transferees or the manner in which they acquire the Stock, but the restrictions of this Section 11.3 do not apply to
a transfer of Stock that occurs as a result of the death of the Optionee or of any subsequent transferee (but shall apply to the executor, the administrator or personal representative, the estate, and the legatees, beneficiaries and assigns
thereof). 
  
 11.4. Repurchase Rights. 
  
 Subject to Section 11.6 below, upon the termination of an
Optionee’s employment or other relationship with the Company or an affiliate (whether as an employee, a director, an independent contractor providing services to the Company, a Subsidiary or an affiliate, or otherwise), the Company shall have
the right, for a period of up to twelve months following such termination, to repurchase any or all of the shares acquired by the individual pursuant to this Plan under an Option (including shares that were previously transferred pursuant to
Sections 11.1, 11.2 or 11.3 above, unless otherwise specified in the Award Agreement), at a price equal to the fair market value of such shares on the date of termination. Upon the exercise of an Option following
termination of an Optionee’s employment or other relationship with the Company or an affiliate (whether as an employee, a director, an independent contractor providing services to the Company, a Subsidiary or any affiliate, or otherwise), the
Company shall have the right, for a period of up to twelve months following such exercise, to repurchase any or all such shares of Stock acquired by the Optionee pursuant to such exercise of such Option at a price that is equal to the fair market
value of such shares (including shares that were previously transferred pursuant to Sections 11.1, 11.2 or 11.3 above) on the date of exercise (or at such other price or the fair market value on such other date as shall
have been specified by the Board at the time of grant and set out in the appropriate Award Agreement with respect to the grant). In the event that the Company determines that it cannot or will not exercise its rights to purchase Stock under this
Section 11.4 and the applicable Award Agreement, in whole or in part, the Company may assign its rights, in whole or in part, to (1) any Stockholder (2) any affiliate or (3) any other person or entity that the Board of Directors of the
Company determines has a sufficient relationship with or interest in the Company. The Company shall give reasonable written notice to the individual of any assignment of its rights. 
  

 -12- 

 11.5. Installment Payments 
  
 In the case of any purchase of Stock or an Option under this Section 11, the Company or its permitted assignee
may pay the Optionee, transferee of the Option or other registered owner of the Stock the purchase price in three or fewer annual installments. Interest shall be credited on the installments at the applicable federal rate (as determined for purposes
of Section 1274 of the Code) in effect on the date on which the purchase is made. The Company or its permitted assignee shall pay at least one-third of the total purchase price each year, plus interest on the unpaid balance, with the first payment
being made on or before the 60th day after the purchase. 
  
 11.6. Publicly Traded Stock 
  
 If the
Stock is listed on an established national or regional stock exchange or is admitted to quotation on the National Association of Securities Dealers Automated Quotation System, or is publicly traded in an established securities market, the foregoing
transfer restrictions of Sections 11.3 and 11.4 shall terminate as of the first date that the Stock is so listed, quoted or publicly traded. 
  
 11.7. Legend 
  
 In order to enforce the restrictions imposed upon shares of Stock under this Plan or as provided in an Award Agreement, the Board may cause a legend or
legends to be placed on any certificate representing shares issued pursuant to this Plan that complies with the applicable securities laws and regulations and makes appropriate reference to the restrictions imposed under it. 
  

	12.	RESTRICTED STOCK 

  
 12.1. Grant of Restricted Stock or Restricted Stock Units. 
  
 The Board may from time to time grant Restricted Stock or Restricted Stock Units to persons eligible to receive Grants under
Section 6 hereof, subject to such restrictions, conditions and other terms as the Board may determine. 
  
 12.2. Restrictions. 
  
 At the time a Grant of Restricted Stock or Restricted Stock Units is made, the Board shall establish a period of time (the “Restricted Period”)
applicable to such Restricted Stock or Restricted Stock Units. Each Grant of Restricted Stock or Restricted Stock Units may be subject to a different Restricted Period. The Board may, in its sole discretion, at the time a Grant of Restricted Stock
or Restricted Stock Units is made, prescribe restrictions in addition to or other than the expiration of the Restricted Period, including the satisfaction of corporate or 
  

 -13- 

 individual performance objectives, which may be applicable to all or any portion of the Restricted Stock or Restricted
Stock Units. Such performance objectives shall be established in writing by the Board prior to the ninetieth day of the year in which the Grant is made and while the outcome is substantially uncertain. Performance objectives shall be based on a
number of factors including, but not limited to, Stock price, market share, sales, earnings per share, return on equity or costs. Performance objectives may include positive results, maintaining the status quo or limiting economic losses. Subject to
the second sentence of this Section 12.2, the Board also may, in its sole discretion, shorten or terminate the Restricted Period or waive any other restrictions applicable to all or a portion of the Restricted Stock or Restricted Stock
Units. Neither Restricted Stock nor Restricted Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other restrictions prescribed by the Board
with respect to such Restricted Stock or Restricted Stock Units. 
  
 12.3. Restricted Stock Certificates. 
  
 The
Company shall issue, in the name of each Optionee to whom Restricted Stock has been granted, stock certificates representing the total number of shares of Restricted Stock granted to the Optionee, as soon as reasonably practicable after the Grant
Date. The Secretary of the Company shall hold such certificates for the Optionee’s benefit until such time as the Restricted Stock is forfeited to the Company, or the restrictions lapse. 
  
 12.4. Rights of Holders of Restricted Stock. 
  
 Unless the Board otherwise provides in an Award Agreement, holders of
Restricted Stock shall have the right to vote such Stock and the right to receive any dividends declared or paid with respect to such Stock. The Board may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock,
which may or may not be subject to the same vesting conditions and restrictions applicable to such Restricted Stock. All distributions, if any, received by an Optionee with respect to Restricted Stock as a result of any stock split, stock dividend,
combination of shares, or other similar transaction shall be subject to the restrictions applicable to the original Grant. 
  
 12.5. Rights of Holders of Restricted Stock Units. 
  
 Unless the Board otherwise provides in an Award Agreement, holders of Restricted Stock Units shall have no rights as stockholders of the Company. The
Board may provide in an Award Agreement evidencing a Grant of Restricted Stock Units that the holder of such Restricted Stock Units shall be entitled to receive, upon the Company’s payment of a cash dividend on its outstanding Stock, a cash
payment for each Restricted Stock Unit held equal to the per-share dividend paid on the Stock. Such Award Agreement may also provide that such cash payment 
  

 -14- 

 will be deemed reinvested in additional Restricted Stock Units at a price per unit equal to the Fair Market Value of a
share of Stock on the date that such dividend is paid. 
  
 12.6. Termination of Employment or Other Relationship. 
  
 Unless otherwise provided by the Board, upon the termination of an Optionee’s employment or other relationship with the Company or an affiliate other than by reason of death or “permanent and total disability” (within the
meaning of Section 22(e)(3) of the Code), any shares of Restricted Stock or Restricted Stock Units held by such Optionee that have not vested, or with respect to which all applicable restrictions and conditions have not lapsed, shall immediately be
deemed forfeited. Upon forfeiture of Restricted Stock or Restricted Stock Units, the Optionee shall have no further rights with respect to such Grant, including but not limited to any right to vote Restricted Stock or any right to receive dividends
with respect to shares of Restricted Stock or Restricted Stock Units. Whether a termination of employment or other relationship shall have occurred for purposes of the Plan shall be determined by the Board, which determination shall be final and
conclusive. For purposes of the Plan, a termination of employment, service or other relationship shall not be deemed to occur if the Optionee is immediately thereafter a director of the Company. 
  
 12.7. Rights in the Event of Death. 
  
 Unless otherwise provided by the Board, if an Optionee dies while employed by
the Company or an affiliate, all Restricted Stock or Restricted Stock Units granted to such Optionee shall fully vest on the date of death, and the shares of Stock represented thereby shall be deliverable in accordance with the terms of the Plan to
the executors, administrators, legatees or distributees of the Optionee’s estate. 
  
 12.8. Rights in the Event of Disability. 
  
 Unless otherwise provided by the Board, if an Optionee’s employment or other relationship with the Company or an affiliate is terminated by reason of the “permanent and total disability” (within the
meaning of Section 22(e)(3) of the Code) of such Optionee, such Optionee’s Restricted Stock or Restricted Stock Units shall continue to vest in accordance with the applicable Award Agreement for a period of one year after such termination of
employment or service, subject to the earlier forfeiture of such Restricted Stock or Restricted Stock Units in accordance with the terms of the applicable Award Agreement. Whether a termination of employment or service is to be considered by reason
of “permanent and total disability” for purposes of the Plan shall be determined by the Board, which determination shall be final and conclusive. 
  

 -15- 

 12.9. Delivery of Stock and Payment Therefor. 
  
 Upon the expiration or termination of the Restricted Period and the
satisfaction of any other conditions prescribed by the Board, the restrictions applicable to shares of Restricted Stock or Restricted Stock Units shall lapse, and, upon payment by the Optionee to the Company, in cash or by check, of the greater of
(i) the aggregate par value of the shares of Stock represented by such Restricted Stock or Restricted Stock Units or (ii) the purchase price, if any, specified in the Award agreement relating to such Restricted Stock or Restricted Stock Units, a
stock certificate for such shares shall be delivered, free of all such restrictions, to the Optionee or the Optionee’s beneficiary or estate, as the case may be. 
  

	13.	PARACHUTE LIMITATIONS 

  
 Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by an Optionee
with the Company or any Subsidiary, except an agreement, contract, or understanding hereafter entered into that expressly modifies or excludes application of this paragraph (an “Other Agreement”), and notwithstanding any formal or informal
plan or other arrangement for the direct or indirect provision of compensation to the Optionee (including groups or classes of participants or beneficiaries of which the Optionee is a member), whether or not such compensation is deferred, is in
cash, or is in the form of a benefit to or for the Optionee (a “Benefit Arrangement”), if the Optionee is a “disqualified individual,” as defined in Section 280G(c) of the Code, any Option, Restricted Stock or Restricted Stock
Unit held by that Optionee and any right to receive any payment or other benefit under this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other
rights, payments, or benefits to or for the Optionee under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Optionee under this Plan to be considered a “parachute payment” within the
meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Optionee from the Company under this
Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Optionee without causing any such payment or benefit to be considered a Parachute Payment. In the event that the
receipt of any such right to exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights, payments, or benefits to or for the Optionee under any Other Agreement or any Benefit Arrangement would cause the Optionee to
be considered to have received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount received by the Optionee as described in clause (ii) of the preceding sentence, then the Optionee shall have the right,
in the Optionee’s sole discretion, to designate those rights, payments, or benefits under this Plan, any 
  

 -16- 

 Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or
benefit to the Optionee under this Plan be deemed to be a Parachute Payment. 
  

	14.	REQUIREMENTS OF LAW 

  
 14.1. General. 
  
 The Company shall not be required to sell or issue any shares of Stock under any Grant if the sale or issuance of such shares would constitute a violation
by the Optionee, any other individual exercising a right emanating from such Grant, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or
regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any shares subject to a Grant upon any securities exchange or under any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the Optionee or any other individual exercising an Option pursuant to such Grant unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Grant. Specifically, in
connection with the Securities Act, upon the exercise of any right emanating from such Grant or the delivery of any shares of Restricted Stock or Stock underlying Restricted Stock Units, unless a registration statement under such Act is in effect
with respect to the shares of Stock covered by such Grant, the Company shall not be required to sell or issue such shares unless the Board has received evidence satisfactory to it that the Optionee or any other individual exercising an Option may
acquire such shares pursuant to an exemption from registration under the Securities Act. Any determination in this connection by the Board shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any
securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or the issuance of shares of Stock pursuant to the Plan to comply with any law or
regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option shall not be exercisable until the shares of Stock covered by such Option are registered or are exempt from registration, the
exercise of such Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 
  
 14.2. Rule 16b-3. 
  
 During any time when the Company has a class of equity security registered
under Section 12 of the Exchange Act, it is the intent of the Company that Grants 
  

 -17- 

 pursuant to the Plan and the exercise of Options granted hereunder will qualify for the exemption provided by Rule 16b-3
under the Exchange Act. To the extent that any provision of the Plan or action by the Board does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and
shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features
of, the revised exemption or its replacement. 
  

	15.	AMENDMENT AND TERMINATION OF THE PLAN 

  
 The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any shares of Stock as to which Grants have not been made;
provided, however, that the Board shall not, without approval of the Company’s shareholders, amend the Plan such that it does not comply with the Code. Except as permitted under this Section 15 or Section 16 hereof,
no amendment, suspension, or termination of the Plan shall, without the consent of the Optionee, alter or impair rights or obligations under any Grant theretofore awarded under the Plan. 
  

	16.	EFFECT OF CHANGES IN CAPITALIZATION 

  
 16.1. Changes in Stock. 
  
 If the number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a different number or kind
of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other
increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which Grants of Options, Restricted Stock and Restricted Stock Units may be made
under the Plan shall be adjusted proportionately and accordingly by the Company. In addition, the number and kind of shares for which Grants are outstanding shall be adjusted proportionately and accordingly so that the proportionate interest of the
Optionee immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options shall not change the aggregate Option Price payable with respect to shares that are
subject to the unexercised portion of an Option outstanding but shall include a corresponding proportionate adjustment in the Option Price per share. The conversion of any convertible securities of the Company shall not be treated as an increase in
shares effected without receipt of consideration. 
  

 -18- 

 16.2. Reorganization in Which the Company Is the Surviving Entity and in Which No Change of Control
Occurs. 
  
 Subject to Section 16.3 hereof, if the
Company shall be the surviving entity in any reorganization, merger, or consolidation of the Company with one or more other entities and in which no Change in Control occurs, any Option theretofore granted pursuant to the Plan shall pertain to and
apply to the securities to which a holder of the number of shares of Stock subject to such Option would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the
Option Price per share so that the aggregate Option Price thereafter shall be the same as the aggregate Option Price of the shares remaining subject to the Option immediately prior to such reorganization, merger, or consolidation. Subject to any
contrary language in an Award Agreement evidencing a Grant of Restricted Stock, any restrictions applicable to such Restricted Stock shall apply as well to any replacement shares received by the Optionee as a result of the reorganization, merger or
consolidation. 
  
 16.3. Reorganization, Sale of Assets or Sale
of Stock Which Involves a Change of Control. 
  
 Subject to
the exceptions set forth in the last sentence of this Section 16.3, (i) upon the occurrence of a Change of Control, all outstanding shares of Restricted Stock and Restricted Stock Units shall be deemed to have vested, and all restrictions and
conditions applicable to such shares of Restricted Stock and Restricted Stock Units shall be deemed to have lapsed, immediately prior to the occurrence of such Change of Control, and (ii) fifteen days prior to the scheduled consummation of a Change
of Control, all Options outstanding hereunder shall become immediately exercisable and shall remain exercisable for a period of fifteen days. Any exercise of an Option during such fifteen-day period shall be conditioned upon the consummation of the
event and shall be effective only immediately before the consummation of the event. Upon consummation of any Change of Control, the Plan and all outstanding but unexercised Options shall terminate. The Board shall send written notice of an event
that will result in such a termination to all individuals who hold Options not later than the time at which the Company gives notice thereof to its shareholders. This Section 16.3 shall not apply to any Change of Control to the extent
that (A) provision is made in writing in connection with such Change of Control for the continuation of the Plan or the assumption of the Options, Restricted Stock and Restricted Stock Units theretofore granted, or for the substitution for such
Options, Restricted Stock and Restricted Stock Units of new options, restricted stock and restricted stock units covering the stock of a successor entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kinds of
shares or units and exercise prices, in which event the Plan and Options, Restricted Stock and Restricted Stock Units theretofore granted shall continue in the manner and under the terms so provided or (B) a majority of the full 
  

 -19- 

 Board determines that such Change of Control shall not trigger application of the provisions of this Section 16.3
subject to Section 24. 
  
 16.4. Adjustments.

  
 Adjustments under this Section 16 related to shares
of Stock or securities of the Company shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions
resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. 
  
 16.5. No Limitations on Company. 
  
 The making of Grants pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications,
reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets. 
  

	17.	DISCLAIMER OF RIGHTS 

  
 No provision in the Plan or in any Grant or Award Agreement shall be construed to confer upon any individual the right to remain in the employ or service
of the Company or any affiliate, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any time, or to terminate any
employment or other relationship between any individual and the Company. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Grant awarded under the Plan shall be
affected by any change of duties or position of the Optionee, so long as such Optionee continues to be a director, officer, consultant or employee of the Company. The obligation of the Company to pay any benefits pursuant to this Plan shall be
interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party
trustee or otherwise hold any amounts in trust or escrow for payment to any participant or beneficiary under the terms of the Plan. No Optionee shall have any of the rights of a shareholder with respect to the shares of Stock subject to an Option
except to the extent the certificates for such shares of Stock shall have been issued upon the exercise of the Option. 
  

	18.	NONEXCLUSIVITY OF THE PLAN 

  
 Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the Company for approval shall be construed as creating any

  

 -20- 

 limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements (which
arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Board in its discretion determines desirable, including, without limitation, the
granting of stock options otherwise than under the Plan. 
  

	19.	WITHHOLDING TAXES 

  
 The Company or a Subsidiary, as the case may be, shall have the right to deduct from payments of any kind otherwise due to an Optionee any Federal, state,
or local taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to Restricted Stock or Restricted Stock Units or upon the issuance of any shares of Stock upon the exercise of an
Option. At the time of such vesting, lapse, or exercise, the Optionee shall pay to the Company or the Subsidiary, as the case may be, any amount that the Company or the Subsidiary may reasonably determine to be necessary to satisfy such withholding
obligation. Subject to the prior approval of the Company or the Subsidiary, which may be withheld by the Company or the Subsidiary, as the case may be, in its sole discretion, the Optionee may elect to satisfy such obligations, in whole or in part,
(i) by causing the Company or the Subsidiary to withhold shares of Stock otherwise issuable to the Optionee or (ii) by delivering to the Company or the Subsidiary shares of Stock already owned by the Optionee. The shares of Stock so delivered or
withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company or the Subsidiary as of the date
that the amount of tax to be withheld is to be determined. An Optionee who has made an election pursuant to this Section 19 may satisfy his or her withholding obligation only with shares of Stock that are not subject to any repurchase,
forfeiture, unfulfilled vesting, or other similar requirements. 
  

	20.	CAPTIONS 

  
 The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the
Plan or such Award Agreement. 
  

	21.	OTHER PROVISIONS 

  
 Each Grant awarded under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Board, in its
sole discretion. 
  

 -21- 

	22.	NUMBER AND GENDER 

  
 With respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as
the context requires. 
  

	23.	SEVERABILITY 

  
 If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the
remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 
  

	24.	POOLING 

  
 In the event any provision of the Plan or the Award Agreement would prevent the use of pooling of interests accounting in a corporate transaction
involving the Company and such transaction is contingent upon pooling of interests accounting, then that provision shall be deemed amended or revoked to the extent required to preserve such pooling of interests. The Company may require in an Award
Agreement that an Optionee who receives a Grant under the Plan shall, upon advice from the Company, take (or refrain from taking, as appropriate) all actions necessary or desirable to ensure that pooling of interests accounting is available.

  

	25.	GOVERNING LAW 

  
 The validity and construction of this Plan and the instruments evidencing the Grants awarded hereunder shall be governed by the laws of the State of
Maryland (excluding the choice of law rules thereof). 
  
 *        *        * 
  
 The Plan was duly adopted and approved by the Board of Directors of the Company as of the          day of
                , 1999. 
  

	
	
	 /s/            

	

  
 The Plan was
duly approved by the shareholders of the Company on the day          of
                    , 1999. 
  

	
	
	 /s/            

	

  

 -22- 

 TEKNOSURF.COM, INC. 
  
 AMENDMENT NO. 1 
 TO THE 
 TEKNOSURF.COM, INC. 
 1999 STOCK OPTION AND INCENTIVE PLAN 
 (the “Amendment No. 1”) 
  
 TeknoSurf.Com, Inc. (the “Corporation”) hereby amends the terms of
the TeknoSurf.Com, Inc. 1999 Stock Option and Incentive Plan (the “Plan”) as follows: 
  

	1.	A new Section 26 is hereby added: 

  
 Section 26 — Provisions for California Optionees 
  
 Notwithstanding the foregoing sections, any Grant made under the Plan to an Optionee who is a resident of the state of
California on the Grant Date shall be subject to the following additional terms and conditions: 
  

	 	A.	For the purpose of Grants which are not Incentive Stock Options, Fair Market Value shall be determined in a manner not inconsistent with Section 260.140.50 of the California Code of
Regulations or any successor statute. 

  

	 	B.	Grants may not be made under the Plan to Optionees after February 15, 2009. 

  

	 	C.	An Option granted under the Plan to an Optionee who is a person who owns stock possessing more than ten percent of the combined voting power of all classes of stock of the Company
or its parent or its Subsidiary corporations shall have an Option Price of at least 110% of the Fair Market Value of a share of Stock on the Grant Date. 

  

	 	D.	Any Option granted under the Plan to an Optionee who is not an officer, director, or consultant of the Company or its affiliates shall become exercisable at a rate of at least
twenty percent (20%) of the shares of Stock subject to such Grant per year for a period of five years from the Grant Date; provided, that, such Option shall be subject to such reasonable forfeiture conditions as the Board may choose to
impose and which are not inconsistent with Section 260.140.41 of the California Code of Regulations or any successor statute. 

	 	E.	The Company shall deliver to the Optionee financial statements on an annual basis regarding the Company. The financial statements so provided shall comply with Section 260.140.46 of
the California Code of Regulations or any successor statute, but need not comply with Section 260.613 of the California Code of Regulations or any successor statute. 

  

	 	F.	Any transfer of an Option granted under the Plan authorized by the Board in an Award Agreement must comply with Section 260.140.41(d) of the California Code of Regulations or any
successor statute. 

  

	 	G.	A Grant of Restricted Stock or Restricted Stock Units shall not be transferable other than by will or the laws of descent and distribution. 

  

	 	H.	Unless an Optionee’s employment is terminated for cause as defined by applicable law, the Optionee shall have the right to exercise an Option, prior to the termination of the
Option in accordance with Section 10.2 and only to the extent that the Optionee was entitled to exercise such Option on the date employment terminates, as follows: (i) at least six (6) months from the date of termination if the termination was
caused by the Optionee’s death or Disability, and (ii) at least thirty (30) days from the date of termination if termination was caused by other than death or Disability of the Optionee. 

  

	 	I.	The purchase price for a Grant of Restricted Stock or Restricted Stock Units shall be at least 85% of the Fair Market Value of the Stock on the Grant Date and at least 100% of the
Fair Market Value of Stock on the Grant Date in the case of a person who owns stock possessing more than ten percent of the combined voting power of all classes of stock of the Company or its parent or its Subsidiary corporations.

  

	 	J.	At no time shall the total number of shares of Stock issuable upon exercise of all outstanding Options and the total number of shares provided for under any stock bonus or similar
plan of the Company exceed the applicable percentage as calculated in accordance with the conditions and exclusions of Section 260.140.45 of the California Code of Regulations or any successor statute. 

  

 2 

	2.	In all other respects the Plan is hereby confirmed and ratified. 

  
 * * * 
  
 This Amendment No. 1 was duly adopted and approved by the Board of Directors of the Corporation on August     , 1999.

  

	
	
	 
	

	Thomas P. McMahon
	Secretary

  
  

 3 

 TEKNOSURF.COM, INC. 
  
 AMENDMENT NO. 2 
 TO THE 
 TEKNOSURF.COM, INC. 
 1999 STOCK OPTION AND INCENTIVE PLAN 
 (the “Amendment No. 2”) 
  
 TeknoSurf.Com, Inc. (the “Corporation”) hereby amends the terms of
the TeknoSurf.Com, Inc. 1999 Stock Option and Incentive Plan (the “Plan”) as follows: 
  

	1.	Section 4 is hereby amended to increase the total number of shares of Stock available for issuance under the Plan from 1,350,000 (post-split) to 2,150,000. 

 

	2.	In all other respects the Plan is hereby confirmed and ratified. 

  
 * * * 
  
 This Amendment No. 2 was duly adopted and approved by the Board of Directors of the Corporation on November 8, 1999. 
  

	
	
	 
	

	Thomas P. McMahon
	Secretary

 ADVERTISING.COM, INC. 
  
 AMENDMENT NO. 3 
 TO THE 
 ADVERTISING.COM, INC. 
 1999 STOCK OPTION AND INCENTIVE PLAN 
 (the “Amendment No. 3”) 
  
 Advertising.com, Inc., formerly known as TeknoSurf.Com, Inc. (the
“Corporation”) hereby amends the terms of the Advertising.com, Inc. 1999 Stock Option and Incentive Plan (the “Plan”) as follows: 
  

	1.	Section 4 is hereby amended to increase the total number of shares of Stock available for issuance under the Plan from 2,150,000 to 2,550,000. 

  

	2.	In all other respects the Plan is hereby confirmed and ratified. 

  
 * * * 
  
 This Amendment No. 3 was duly adopted and approved by the Board of Directors of the Corporation on June 27, 2000. 
  

	
	
	 
	

	 Thomas P. McMahon
 Secretary

 ADVERTISING.COM, INC. 
  
 AMENDMENT NO. 4 
 TO THE 
 ADVERTISING.COM, INC. 
 1999 STOCK OPTION AND INCENTIVE PLAN 
 (the “Amendment No. 4”) 
  
 Advertising.com, Inc., formerly known as TeknoSurf.Com, Inc. (the
“Corporation”) hereby amends the terms of the Advertising.com, Inc. 1999 Stock Option and Incentive Plan (the “Plan”) as follows: 
  

	1.	Section 4 is hereby amended to increase the total number of shares of Stock available for issuance under the Plan from 2,550,000 to 3,050,000. 

  

	2.	In all other respects the Plan is hereby confirmed and ratified. 

  
 *      *      * 
  
 This Amendment No. 4 was duly adopted and approved by the Board of Directors of the Corporation on July 5, 2001. 

 

	
	
	 
	

	 Thomas P. McMahon
 Secretary

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