Document:

2004 Stock Incentive Plan

 Exhibit 10.15 
  
  

  
 2004 Stock Incentive Plan 
  
 CallWave, Inc. 
  
 April 27, 2004 
  

 2004 STOCK INCENTIVE PLAN 
  
 THIS 2004 STOCK INCENTIVE PLAN is made and adopted by CALLWAVE, INC., a Delaware corporation, effective as of
April 27, 2004, for the purposes of enabling the Company to grant stock options to its employees and others providing services to the Company. 
  
 SECTION 1.    DEFINITIONS. For purposes of this Plan, the term: 
  
 1.1 “ADMINISTRATOR” means the Board or any of its Committees as shall be
administering the Plan in accordance with Section 8 of the Plan. 
  
 1.2 “ANNUAL INCREASE” shall have the meaning ascribed thereto in Section 3.1(b), below. 
  
 1.3 “APPLICABLE LAWS” means the federal and state laws relating to the administration of stock
option plans. 
  
 1.4 “BOARD”
means the Board of Directors of the Company. 
  
 1.5
“CODE” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 1.6 “COMMITTEE” means such Committee of the Board of Directors as the Board may constitute and appoint from time to time
to administer the Plan, pursuant to Section 8.1, below. 
  
 1.7 “COMMON STOCK” means shares of the common capital stock of the Company. 
  
 1.8 “COMPANY” means CALLWAVE, INC., a Delaware corporation. In addition, in the context of matters other than the
securities covered by this Plan, references to the “Company” shall mean and include CallWave, Inc., a Delaware corporation, and its Parent and Subsidiaries. 
  
 1.9 “DISABILITY” means total and permanent disability as defined in Section 22(e)(3) of the
Code. 
  
 1.10 “EXCHANGE
ACT” means the Securities Exchange Act of 1934, as amended. 
  
 1.11 “EXERCISE PRICE” means the amount due pursuant to Section 5.2(c), below, for the purchase of shares of Common Stock upon the exercise of Options granted
hereunder. 
  
 1.12 “FAIR
MARKET VALUE” means, as of any date: 
  
 (a) If the Stock is then listed on a national or regional securities exchange or market system or is regularly quoted by a recognized securities dealer, the closing sale price of a share of Stock (or the mean
of the closing bid and asked prices if the Stock is so quoted instead) as quoted on the Nasdaq National Market, the Nasdaq SmallCap Market or such other national or regional securities exchange or market system constituting the primary market for
the Stock, or by such recognized securities dealer, as reported in The Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities
exchange or market system or has been quoted by such securities dealer, the date on which the Fair Market Value is established shall be the last day on which the Stock was so traded or quoted prior to the relevant date, or such other appropriate day
as determined by the Board, in its discretion. 

 (b) If, on the relevant date, the Stock is not then listed on a national or regional securities
exchange or market system or regularly quoted by a recognized securities dealer, the Fair Market Value of a share of Stock shall be as determined in good faith by the Board. 
  
 (c) Notwithstanding the foregoing, the Fair Market Value of a share of Stock on the Effective Date shall be deemed to
be the public offering price set forth in the final prospectus filed with the Securities and Exchange Commission in connection with the Company’s initial public offering of the Stock. 
  
 1.13    “HOLDER”
means each individual to whom an Incentive Option or a Nonqualified Option is granted, or to whom shares of Restricted Stock are issued, under this Plan. 
  
 1.14    “INCENTIVE OPTIONS” means “incentive stock options,” as
defined in Section 422 of the Code. 
  
 1.15    “NONQUALIFIED OPTIONS” means all options granted under this Plan to acquire stock of the Company, its Parent, or any of its Subsidiaries, other than Incentive
Options. 
  
 1.16    “OPTION” shall mean each Incentive Option and Nonqualified Option permitted to be granted under this Plan. 
  
 1.17    “OPTION SHARES” shall mean the number of
shares for which an Option is granted under this Plan. 
  
 1.18    “PARENT” means a corporation as defined in Section 424(e) of the Code. 
  
 1.19    “PLAN” means this 2004 Stock Incentive Plan of the Company, as amended from time to
time. 
  
 1.20    “REPORTING PERSON” means a person who is required to file reports under Section 16(a) of the Exchange Act. 
  
 1.21    “RESTRICTED
STOCK” means shares of Common Stock which are issued by the Company pursuant to Section 7.1, below. 
  
 1.22    “RESTRICTED STOCKHOLDER” means the Holder to whom shares of Restricted
Stock are issued pursuant to this Plan. 
  
 1.23    “RESTRICTED STOCK AGREEMENT” means an agreement executed by a Restricted Stockholder and the Company as contemplated by Section 7.

  
 1.24    “RULE 16b-3” means Rule 16b-3 promulgated under the Exchange Act. 
  
 1.25    “SECTION 16(b)” means Section 16(b) of the Exchange Act. 
  
 1.26    “SUBSIDIARY” means each corporation as defined in Section 424(f) of the Code. 
  
 SECTION 2.    PURPOSE. This Plan is intended to provide incentives to enable officers and employees of the Company, its Parent, and its
Subsidiaries, and for other individuals providing services to or acting as directors of the Company, its Parent, or its Subsidiaries, to acquire or increase a proprietary interest in the Company, its Parent, or its Subsidiaries, and their success.
The Company intends that this purpose shall be 
  

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effected by the granting of Incentive Options and Nonqualified Options, and the issuance of shares of Restricted Stock, under the Plan. 
  
 SECTION 3.     STOCK 
  
 3.1    SHARES
SUBJECT TO PLAN.  
  
 (a) INITIAL RESERVATION. The Company hereby reserves and sets aside for the granting of Options and the issuance of Restricted Stock under the Plan one million seven hundred thousand (1,700,000)
shares of Common Stock, subject to adjustment as provided in Section 9, below. 
  
 (b) ANNUAL INCREASE. Such number of shares shall be increased on July 1, 2005 and each July 1 thereafter until and including July 1, 2014, by
the smallest of (a) five percent (50%) of the number of shares of Stock issued and outstanding on the immediately preceding June 30, (b) one million two hundred thousand (1,200,000) shares, or (c) such lesser number of shares determined by the
Board, and shall consist of authorized but unissued or reacquired shares of Stock, or any combination thereof (the “Annual Increase”). 
  
 (c) LIMIT ON RESTRICTED STOCK. In no event shall
more than one-third (1/3rd) of the shares reserved hereunder be issued as Restricted Stock pursuant to this Plan.

  
 3.2    DEEMED
TIMING OF GRANTS. Each Option granted and share of Restricted Stock issued hereunder shall be deemed to be granted or issued as of the end of the day on which granted or issued. 
  
 3.3    LAPSED OR
UNEXERCISED OPTIONS. Whenever any outstanding Option expires, is canceled or is otherwise terminated (other than by exercise), the shares of Common Stock allocable to the unexercised portion of such Option
automatically shall be deemed to be restored to the Plan and again shall be available for the granting of other Options and issuance of shares of Restricted Stock under the Plan. 
  
 3.4    UNVESTED SHARES OF
RESTRICTED STOCK REPURCHASED BY COMPANY. Whenever any unvested shares of Restricted Stock are repurchased by the Company, such repurchased
shares automatically shall be deemed to be restored to the Plan and again shall be available for the granting of other Options or issuance of shares of Restricted Stock under the Plan. 
  
 SECTION 4.    ELIGIBILITY 
  
 4.1    ELIGIBLE OPTIONEES. Incentive Options may be granted
only to employees of the Company, including members of the Board or the board of directors of the Parent or any Subsidiary who are also employees of the Company. Nonqualified Options may be granted to officers or other employees of the Company, to
members of the Board or the board of directors of the Parent or any Subsidiary whether or not employees of the Company, and to other individuals providing services to the Company. 
  
 4.2    LIMITATIONS ON INCENTIVE
OPTIONS. No Incentive Option shall be granted to an individual who, at the time the Incentive Option is granted, owns (including ownership attributed pursuant to Section 424(d) of the Code) more than 10% of the total combined
voting power of all classes of stock of the Company or a Parent or Subsidiary (a “greater-than-10% stockholder”), unless such Incentive Option provides that (i) the purchase price per share shall not be less than 110% of the
Fair Market Value of the Common Stock at the time such Incentive Option is granted, and (ii) such Incentive Option shall not be exercisable to any extent after the expiration of five (5) years from the date on which it is granted. The aggregate Fair
Market Value (determined at the time the Incentive Option is granted) of the Common Stock with respect to which Incentive Options are exercisable for the first time by any person during any calendar 
  

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 year under the Plan and under any other option plan of the Company (or any Parent or Subsidiary) shall not exceed
$100,000. Any Option granted in excess of the foregoing limitation shall be specifically designated as being a Nonqualified Option. 
  
 SECTION 5.    TERMS OF OPTIONS 
  
 5.1 OPTIONS TO BE GRANTED. Options granted under the Plan may be either
Incentive Options or Nonqualified Options. 
  
 5.2
MANDATORY TERMS. Each Option agreement shall contain such provisions as the Administrator from time to time determines to be appropriate. Option agreements need not be identical, but each Option agreement by
appropriate language shall include the substance of all of the following provisions. 
  
 (a) EXPIRATION. Notwithstanding any other provision of the Plan or of any Option agreement to the contrary, each Option shall expire on the date specified in the Option agreement, which
date shall not be later than the tenth anniversary of the date on which the Option was granted (fifth anniversary in the case of an Incentive Option granted to a greater-than-10% stockholder). 
  
 (b) EXERCISE;
VESTING. Each Option shall be exercisable in full or in installments (which need not be equal) and at such times as designated by the Administrator. To the extent not exercised, installments shall
accumulate and be exercisable, in whole or in part, at any time after becoming exercisable, but not later than the date the Option expires. 
  
 (c) EXERCISE PRICE. The Exercise Price per share of the Common Stock under each Incentive Option shall be not
less than the Fair Market Value of the Common Stock on the date the Option is granted (110% of the Fair Market Value in the case of a greater-than-10% stockholder). The Exercise Price per share under Nonqualified Options shall be specified by the
Administrator at the time the Option is granted, and may be less than, equal to or greater than the Fair Market Value of the shares of Common Stock on the date such Nonqualified Option is granted. 
  
 (d) TRANSFERABILITY OF
OPTIONS. Options granted under the Plan and the rights and privileges conferred thereby may be transferred, assigned, pledged or hypothecated in any manner (whether by operation of law or otherwise) either (i) by will or by
applicable laws of descent and distribution, or (ii) with the prior written consent of the Administrator. Upon any attempt to so transfer, assign, or otherwise dispose of any Option under the Plan (or any right or privilege conferred hereby),
contrary to the provisions of the Plan, such Option shall thereupon terminate and become null and void. 
  
 (e) TERMINATION OF OPTION. 
  
 (i) DATE OF TERMINATION. Except as
otherwise expressly provided in the terms and conditions of the Option granted to an Optionee, Options granted hereunder shall terminate on the earliest to occur of: 
  
 (1) the date of expiration thereof; 
  
 (2) if the Holder is employed by, providing consulting services to or acting as a non-employee Director of
the Company and such employment, services or director status is terminated by the Company for “Cause”, as hereinafter defined, on the earlier of the date of expiration of the term of the Option or thirty (30) days after the date of such
termination; or 
  

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 (3) if the Holder is employed by, providing consulting services to or acting as a non-employee Director
of the Company and such employment, services or director status is terminated for any reason other than death, permanent disability or for Cause as aforesaid, on the earlier of the date of expiration of the term of the Option or three (3) months
following the date of such termination. 
  
 (ii)
EMPLOYMENT TERMS. Until the date on which the Option so expires or terminates, the Holder may exercise that portion of the Option which is exercisable at the time of termination of such relationship. An employment
relationship between the Company and the Holder shall be deemed to exist during any period during which the Holder is employed by the Company. Whether an authorized leave of absence or absence on military government service shall constitute
termination of the employment relationship between the Company and the Holder shall be determined by the Administrator at the time thereof, provided that, with respect to the Holder of any Option that is issued hereunder as an Incentive
Option, the employment of the Holder with the Company shall be deemed to terminate on the date specified in the Code with respect to holders of Incentive Options. 
  
 (iii) CAUSE. For purposes of this Section 5.2(e), the term “Cause” shall mean
(A) any material breach by the Holder of any agreement to which the Holder and the Company are both parties, (B) the commission by the Holder of any crime involving fraud, theft, or embezzlement in connection with the Holder’s employment with
the Company, (C) any act or omission to act by the Holder which may have a material and adverse effect on the Company’s business or on the Optionee’s ability to perform services for the Company, including, without limitation, the
conviction of, or please of guilty or nolocontendere to, a crime that is a felony in the jurisdiction in which committed, (D) any material misconduct or material neglect of duties by the Holder in connection with the business or
affairs of the Company or any affiliate of the Company, or (E) any other act or omission constituting “Cause” for termination of Holder’s employment or engagement by the Company under any employment or other service agreement between
such Holder and the Company. 
  
 (iv) DEATH
OR DISABILITY. Notwithstanding anything in this Plan or any Option agreement to the contrary, in the event of the death or permanent disability of any Holder while in an employment or other relationship with the
Company and before the date of expiration of such Option, such Option shall terminate on the earlier of such date of expiration or one hundred eighty (180) days following the date of such death or disability. After the death or disability of the
Optionee, his executor, representative, Administrator or any person or persons to whom his Option may be transferred by will or by laws of descent and distribution, shall have the right, at any time prior to such termination, to exercise the Option
to the extent the Holder was entitled to exercise such Option as of the date of his death or disability. 
  
 5.3 RIGHTS OF OPTIONEES. No Holder shall be deemed for any purpose to be the owner of any
shares of Common Stock subject to any Option unless and until (i) the Option shall have been exercised with respect to such shares pursuant to the terms thereof, and (ii) the Company shall have issued and delivered a certificate representing such
shares. Thereupon, the Holder shall have full voting, dividend and other ownership rights with respect to such shares of Common Stock, subject to any agreements entered into by the Holder in connection with the exercise of the Option and acquisition
of the shares. 
  
 5.4 CERTAIN
OPTIONAL TERMS. The Administrator may in its discretion provide, upon the grant of any Option hereunder, that the Option Shares issuable upon exercise of the Option shall be subject to the terms of a repurchase
agreement including any commercially reasonable terms, such as, without limitation, that the Company shall have the right from time to time to repurchase all or any number of shares purchased upon exercise of such Option. The repurchase price per
share payable by the Company shall be such amount or be determined in such a manner as is determined by the Administrator at the time the Option for the shares subject to repurchase was granted. The Administrator may also provide that the Company
shall have a right of 
  

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 first refusal with respect to the transfer or proposed transfer of any shares purchased upon exercise of an Option
granted hereunder. In the event the Administrator shall grant Options subject to the Company’s repurchase rights or rights of first refusal, the certificate or certificates representing the shares purchased pursuant to the exercise of such
Option shall carry a legend satisfactory to counsel for the Company referring to such rights. 
  
 SECTION 6.    METHOD OF EXERCISE; PAYMENT OF EXERCISE PRICE 
  
 6.1 MEANS OF EXERCISE. Any Option granted under the Plan may be exercised by the Holder in such
manner, and by delivering to the Company such instruments, documents, and other items, as the Administrator may specify from time to time. 
  
 6.2 PAYMENT OF EXERCISE PRICE. The Exercise Price shall be paid, with the
approval of the Administrator, as follows: 
  
 (a) in cash,
certified or bank check or postal money order payable to the order of the Company for an amount of the Exercise Price of such shares; 
  
 (b) the delivery of shares of Common Stock owned by the Optionee and with a Fair Market Value on the date of delivery equal to the applicable
Exercise Price of the Option, provided that the Company may not accept from any Holder under this Section 6.2(b) any shares of Company capital stock that were issued to such Holder under this Plan or any other option plan or employee stock
purchase plan sponsored by the Company, unless such Holder has held such shares for at least six (6) months as of the date on which they are delivered to the Company; 
  
 (c) the surrender of shares of Common Stock then issuable upon exercise of the Option having a Fair Market Value on
the date of exercise of the Option equal to the applicable Exercise Price of the Option; 
  
 (d) the delivery of a full recourse promissory note bearing interest (at no less than such rate as shall then preclude the imputation of interest under the Code) and payable upon such terms as may be prescribed
by the Administrator (provided that in no event shall the Company accept as consideration hereunder any promissory note from a Holder to whom the Company is precluded by law from making any loan, including but not limited to any Holder who is an
officer or director of the Company); 
  
 (e) any
combination of the foregoing types of consideration; and 
  
 (f) any other method permitted by law. 
  
 In the case of a
promissory note, the Administrator may prescribe the form of such note and the security to be given for such note. The Option may not be exercised by delivery of a promissory note or by a loan from the Company when or where such loan or other
extension of credit is prohibited by law. 
  
 6.3
DELIVERY OF CERTIFICATE. Promptly after receipt of such written notification and payment, the Company shall deliver to the Holder or other appropriate person certificates for the number of shares with
respect to which such Option has been exercised, issued in the Optionee’s name. 
  
 SECTION 7.    AWARD OF RESTRICTED STOCK 
  

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 7.1 AWARD OF RESTRICTED
STOCK. The Administrator may award Restricted Stock to such employees of, consultants to, and directors of the Company as the Administrator may select from time to time. 
  
 7.2 PURCHASE PRICE. The Purchase
Price per share of the Restricted Stock shall be specified by Administrator at the time the Option is granted, and may be less than, equal to or greater. 
  
 7.3 EXERCISE; VESTING. The Restricted Stock issued to any Holder may be fully vested on issuance or may vest
at such times as designated by the Administrator. 
  
 7.4
RESTRICTED STOCK AGREEMENT. Restricted Stock shall be issued only pursuant to a Restricted Stock Agreement, which shall be executed by the Restricted Stockholder and the Company and which shall
contain such terms and conditions as the Administrator shall determine consistent with this Plan. 
  
 7.5 RIGHTS AS STOCKHOLDERS. Upon delivery of the shares of Restricted Stock to the Restricted
Stockholder or to the escrow holder pursuant to Section 7.10, below, the Restricted Stockholder shall have, unless otherwise provided by the Administrator, all the rights of a stockholder with respect to said shares, subject to the
restrictions in the Restricted Stock Agreement, including the right to receive all dividends and other distributions (other than stock dividends, which shall be paid to the escrow holder for the benefit of the Restricted Stockholder) paid or made
with respect to the Restricted Stock. 
  
 7.6
RESTRICTION ON TRANSFER. Notwithstanding anything in this Plan or any Restricted Stock Agreement to the contrary, no Restricted Stockholder may sell or otherwise transfer, whether or not for
value, any of the Restricted Stock prior to the date on which the Restricted Stockholder is vested therein and all other applicable restrictions have terminated or expired. 
  
 7.7 ADDITIONAL RESTRICTIONS. All shares of Restricted Stock issued under this
Plan (including any shares of Common Stock and other securities issued with respect to the shares of Restricted Stock as a result of stock dividends, stock splits or similar changes in the capital structure of the Company) shall be subject to such
restrictions as the Administrator shall provide, which restrictions may include, without limitation, restrictions concerning voting rights, transferability of the Restricted Stock and restrictions based on duration of employment with or services to
the Company, Company performance and individual performance; provided that the Administrator may, on such terms and conditions as it may determine to be appropriate, remove any or all of such restrictions. The restrictions, if any, imposed by the
Administrator or the Board under this Section 7 need not be identical for all shares of Restricted Stock and the imposition of any restrictions with respect to any Restricted Stock shall not require the imposition of the same or any other
restrictions with respect to any other Restricted Stock. 
  
 7.8 REPURCHASE OF UNVESTED RESTRICTED STOCK. Each Restricted Stock Agreement shall provide that the Company shall have the right to repurchase the
unvested Restricted Stock upon a termination of employment, termination of directorship or termination of a consulting arrangement, as applicable, at such cash price per share at such price as the Administrator may determine to be appropriate.

  
 7.9 RIGHT OF
FIRST REFUSAL. In the discretion of the Administrator, the Restricted Stock Agreement may provide that the Company shall have a right of first refusal with respect to the Restricted Stock and a right to repurchase
the vested Restricted Stock upon a termination of the Restricted Stockholder’s employment with the Company, consulting arrangement with the Company, service on the Company’s Board, or such other events as the Administrator may deem
appropriate. 
  

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 7.10 ESCROW. The Secretary of the Company or such other escrow holder as the
Administrator may appoint shall retain physical custody of each certificate representing Restricted Stock until all of the restrictions imposed on the Restricted Stock expire or have been removed. 
  
 7.11 LEGEND. The Administrator shall cause a
legend or legends to be placed on certificates representing shares of Restricted Stock that are subject to restrictions under Restricted Stock Agreements, which legend or legends shall make appropriate reference to the applicable restrictions.

  
 SECTION 8.    ADMINISTRATION 
  
 8.1 APPOINTMENT AND
PROCEEDINGS OF ADMINISTRATOR. The Plan shall be administered by the Board or a Committee designated by the Board and consisting of at least two members of the Board, which committee shall be
constituted to satisfy Applicable Laws, including any requirements under Section 16(b) and Rule 16b-3. The Board may from time to time appoint members of the Committee in substitution for or in addition to members previously appointed, and may fill
vacancies, however caused, in the Committee. The Committee shall select one of its members as its chairman and shall hold its meetings at such times and places as it shall deem advisable. A majority of its members shall constitute a quorum, and all
actions of the Committee shall require the affirmative vote of a majority of its members. Any action may be taken by a written instrument signed by all of the members, and any action so taken shall be as fully effective as if it had been taken by a
vote of a majority of the members at a meeting duly called and held. 
  
 8.2 POWERS OF ADMINISTRATOR. 
  
 (a) POWERS. Subject to the provisions of this Plan, the Administrator shall have full and final authority to operate, manage and administer the Plan on behalf of the Company. This
authority includes, but is not limited to: 
  
 (i) grant
Options conditionally or unconditionally; 
  
 (ii) issue
Restricted Stock conditionally or unconditionally; 
  
 (iii)
prescribe the form or forms of the instruments evidencing Options granted and the Restricted Stock Agreements under this Plan; 
  
 (iv) interpret the Plan; 
  
 (v) provide regulations for the operation of the Plan, and otherwise to prescribe regulations for interpretation, management and administration of
the Plan; 
  
 (vi) delegate responsibility for Plan
operation, management and administration on such terms, consistent with the Plan, as the Administrator may establish; 
  
 (vii) delegate to other persons the responsibility for performing ministerial acts in furtherance of the Plan’s purpose; 
  
 (viii) engage the services of persons or organizations in furtherance
of the Plan’s purpose, including but not limited to banks, insurance companies, brokerage firms and consultants. 
  
 (ix) determine the number of shares subject to each Option; 
  

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 (x) the time or times at which Options shall be granted; 
  
 (xi) the Exercise Price for the shares subject to each Option;

  
 (xii) the time or times when each Option shall become
exercisable, the conditions under which exercise may be accelerated, and the duration of the exercise period; 
  
 (xiii) the price at which Restricted Stock shall be issued; 
  
 (xiv) whether, and at what price and on what terms, to re-price outstanding Options or to effect an exchange of
outstanding Options for new Options or other consideration; and 
  
 (xv) the time or times at which a Holder’s interest in Restricted Stock shall vest. 
  
 (b) INTERPRETATIONS. The interpretation and construction by the Administrator of any provisions of the Plan or of any Option
granted or Restricted Stock Agreement entered into hereunder and the exercise of any power delegated to the Administrator hereunder shall be final. No member of the Administrator shall be liable for any action or determination made in good faith
with respect to the Plan or any Option granted or Restricted Stock Agreement entered into hereunder. 
  
 SECTION 9.    ADJUSTMENT UPON CHANGES IN CAPITALIZATION 
  
 9.1 NO EFFECT OF OPTIONS UPON CERTAIN
CORPORATE TRANSACTIONS. The existence of outstanding Options or shares of Restricted Stock shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of its capital stock, or any issue of bonds, debentures, preferred
or prior preference stock ahead of or affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise. 
  
 9.2
ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE. Subject to any required action by the stockholders of the Company, in the event of any change in the
Company’s capital stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split,
split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than
stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Common Stock, appropriate adjustments shall be made in the number and class of shares subject to the Plan, the Annual Increase, each Option, the
Option exercise price of outstanding Options, and the repurchase price of any outstanding shares of Restricted Stock, in order to prevent dilution or enlargement of Holders’ rights under the Plan. For purposes of the foregoing, the conversion
of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.” Any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded down to the
nearest whole number, and in no event may the Option exercise price be decreased to an amount less than the par value, if any, of the Stock subject to the Option. The adjustments determined by the Board pursuant to this Section 4.2 shall be final,
binding and conclusive. 
  
 9.3 DISSOLUTION
OR LIQUIDATION. In the event of the proposed dissolution or liquidation of the Company, to the extent that any outstanding Option or Restricted Stock has not been previously exercised 
  

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 or become vested, the Option or Restricted Stock shall terminate and the Company shall have the right to repurchase the
unvested Restricted Stock immediately prior to the consummation of such proposed action. The Administrator may, in its sole discretion, (a) declare that any Option shall terminate as of a date fixed by the Administrator and may give each holder of
an outstanding Option the right to exercise the Option as to all or any part of the shares covered by the Option, including shares as to which the Option would not otherwise be exercisable, and (b) waive any vesting restrictions otherwise applicable
to the Restricted Stock. Any declaration or waiver made by the Administrator under this Section 9.4 shall be effective with respect to any Holder only if it is made in writing and written notice thereof is delivered to the Holder. 

 
 9.4 MERGER OR ASSET
SALE. 
  
 (a) CHANGE
OF CONTROL. For purposes of this Plan: 
  
 (i) An “Ownership Change Event” shall be deemed to have occurred if any of the following occurs with respect to the Company: (a) the direct or indirect sale or exchange in a single transaction
or a series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (b) a merger or consolidation in which the Company is a party; (c) the sale, exchange, or transfer of all or
substantially all of the assets of the Company; or (d) a liquidation or dissolution of the Company. 
  
 (ii) A “Change in Control” shall mean an Ownership Change Event or a series of related Ownership Change Events (collectively, the
“Transaction”) wherein the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the Company’s
voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in the case of a Transaction
described in Section 9.4(a)(i)(B), the surviving corporation, or a Transaction described in Section 9.4(a)(i)(C), the corporation or other business entity to which the assets of the Company were transferred (the
“Transferee”), as the case may be. For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or
other business entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities. The Board shall have the right to determine whether multiple sales or
exchanges of the voting securities of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive. 
  

(b) TREATMENT OF OPTIONS AND SHARES OF RESTRICTED STOCK. In the event of a Change in Control of the Company, all outstanding Options
shall terminate to the extent unexercised, and the Company shall have the right to repurchase all then-unvested shares of Restricted Stock unless the successor corporation or a parent or subsidiary of the successor corporation assumes such Options
and Restricted Stock or an equivalent option or stock right is substituted therefor by the successor corporation or a parent or subsidiary of the successor corporation. 
  
 (i) In the event that the successor corporation refuses to assume or substitute for the Options or Restricted Stock
rights, (i) the holder of an Option shall have the right to exercise the Option as to all of the shares covered by the Option, including shares as to which it would not otherwise be exercisable, and (ii) any restrictions applicable to the Restricted
Stock shall be waived. If an Option is exercisable in lieu of assumption or substitution by the successor corporation, the Administrator shall notify the Holder of such event and the Option shall be fully exercisable for a period of fifteen (15)
days from the date of such notice and the unexercised portion of the Option shall terminate upon the expiration of such period. 
  

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 (ii) For the purposes of this Section 9.4 the Option or Restricted Stock shall be
considered assumed if, following the merger or sale of assets, the Option or Restricted Stock confers the right to purchase or receive the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets
by holders of Common Stock for each share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided that
if such consideration received in the merger or sale of assets was not solely common stock of the successor corporation or its parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received
upon the exercise of the Option or Restricted Stock to be solely common stock of the successor corporation or its parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets.

  
 9.5 DETERMINATION OF
ADJUSTMENTS. Adjustments under this Section 9 shall be determined by the Administrator and such determinations shall be conclusive. No fractional shares of Common Stock shall be issued under the Plan on account of any
adjustment specified above. 
  
 9.6 NO
ADJUSTMENT IN CERTAIN CASES. Except as hereinbefore expressly provided, the issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any
class, for cash or property or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock then subject to outstanding Options. 
  
 SECTION 10.    NON-EXCLUSIVITY OF THE PLAN; NON-UNIFORM DETERMINATIONS. Neither the adoption of the Plan
by the Board nor the approval of the Plan by the stockholders of the Company shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including without limitation
the granting of stock Options otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. The Administrator’s determinations under the Plan need not be uniform and may be made by it
selectively among persons who receive or are eligible to receive Options or Restricted Stock under the Plan (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Administrator shall be entitled,
among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Option and Restricted Stock Agreements, as to (i) the persons to receive Options and Restricted Stock under the Plan, (ii) the terms
and provisions of Options and Restricted Stock, and (iii) the exercise by the Administrator of its discretion in respect of the exercise of Options and vesting of Restricted Stock pursuant to the terms of the Plan. 
  
 SECTION 11.    GOVERNMENT REGULATIONS AND WITHHOLDING 

 
 11.1 GOVERNMENT AND
OTHER REGULATIONS. The obligation of the Company to sell and deliver shares of Common Stock with respect to Options granted under the Plan shall be subject to all Applicable Laws, rules and regulations, including
all applicable federal and state securities laws, and the obtaining of all such approvals by government agencies as may be deemed necessary or appropriate by the Administrator. The Company shall not be obligated to take any other affirmative action
in order to cause the exercise of an Option or the issuance of Option Shares or Restricted Stock to comply with any law or regulation of any governmental authority. 
  
 11.2 WITHHOLDING. Whenever under the Plan shares are to be delivered upon exercise of an Option
or the award of Restricted Stock, the Company shall be entitled to require as a condition of delivery that the Holder remit an amount sufficient to satisfy all federal, state and other governmental withholding tax 
  

 11 

 requirements related thereto. If the Company permits exercise of an Option or the issuance of Restricted Stock and
thereafter discovers that withholding taxes are due from the Holder in an amount in excess of the amount theretofore deposited with the Company by such Holder, then the Company shall be entitled to withhold all stock certificates for the shares
underlying such Option and Restricted Stock until such Holder deposits such amount with the Company. 
  
 SECTION 12.    MISCELLANEOUS 
  
 12.1 GOVERNING LAW. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be fully performed
in the State of Delaware 
  
 12.2
AMENDMENT AND TERMINATION OF THE PLAN. 
  
 (a) AMENDMENT AND TERMINATION. The Board may at any time amend, alter,
suspend or terminate the Plan. 
  
 (b)
SHAREHOLDER APPROVAL. The Company shall obtain shareholder approval of any Plan amendment to the extent necessary and desirable to comply with Section 422 of the Code (or any
successor rule or statute) or other Applicable Law, including the requirements of any exchange or quotation system on which the Common Stock is listed or quoted. Such shareholder approval, if required, shall be obtained in such a manner and to such
a degree as is required by the Applicable Law. 
  
 (c)
EFFECT OF AMENDMENT OR TERMINATION. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any
Holder, unless mutually agreed otherwise between the Holder and the Administrator, which agreement must be in writing and signed by the Holder and the Company. 
  

12.3 NO ASSURANCES OF EMPLOYMENT. Neither the adoption of this Plan, the
granting of any Option or the award of any Restricted Stock, nor the execution of an Option or Restricted Stock Agreement with any Holder is intended or shall be construed as either (a) conferring on any individual any right to remain employed by,
continue to consult with, or be a director of the Company, its Parent or any Subsidiary for any specified term, or (b) limiting in any way the right, power and authority of the Company, its Parent or any Subsidiary to terminate the employment or
other service engagement of such person or the status of such person as a director at any time either with or without cause. 
  
 12.4 DISCLAIMER. Nothing in this Plan or any Agreement entered into with respect to any Option
or Restricted Stock, nor any action taken by the Company, the Administrator, or any member, officer, director or employee of either the Company or the Administrator, shall be, or shall be deemed to be, legal or tax advice to any Holder with respect
to any matter, including, but not limited to, the application of, or the Holder’s compliance with, any of the provisions of Section 16(b), Rule 16b-3 or any other Rule promulgated under Section 16(b). Each Holder shall be responsible for
obtaining such legal and tax advice as the Holder deems necessary in connection with their acceptance and exercise of any Option or Restricted Stock granted or awarded under this Plan. 
  
 12.5 SHAREHOLDER APPROVAL AND TERM OF
PLAN. The term of this Plan shall begin as April 27, 2004, and unless sooner terminated by the Board in its sole and absolute discretion, the Plan shall expire on March 31, 2014. No Option or
Restricted Stock may be granted or issued under the Plan after March 31, 2014. The Plan shall be submitted for approval by the shareholders of the Company, which approval must occur on or prior to April 27, 2005. In the event such shareholder
approval is not obtained on or before April 27, 2005, this Plan shall continue in full force and effect but shall permit the grant of only Nonqualified 
  

 12 

 Options and any Incentive Options granted on or before April 27, 2005, shall remain outstanding, but automatically shall
be deemed to be Nonqualified Stock Options. 
  
  
 [Signatures appear on the following page.] 
  

 13 

 IN WITNESS WHEREOF, the undersigned has executed this 2004 Stock Incentive Plan, effective as of
the date set forth above. 
  

			
	CALLWAVE, INC., a Delaware corporation
		
	 By:
	 	

	 	 	David F. Hofstatter, Chief Executive Officer
		
	 By
	 	

	 	 	David Trandal, Secretary

  

 142004 Employee Stock Purchase Plan

 EXHIBIT 10.16 
  

  
 CALLWAVE, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  

  
 APRIL 27, 2004

  
  

 CALLWAVE, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE
PLAN 
  
 1. ESTABLISHMENT,
PURPOSE, AND TERM OF PLAN 
  
 1.1 ESTABLISHMENT. The CallWave, Inc. 2004 Employee Stock Purchase Plan (the
“Plan”) is hereby established effective as of the effective date of the initial registration by the Company of its Stock under Section 12 of the Securities Exchange Act of 1934, as amended (the
“Effective Date”). 
  
 1.2
PURPOSE. The purpose of the Plan is to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward Eligible Employees of the Participating
Company Group and by motivating such persons to contribute to the growth and profitability of the Participating Company Group. The Plan provides such Eligible Employees with an opportunity to acquire a proprietary interest in the Company through the
purchase of Stock. The Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code (including any amendments or replacements of such section), and the Plan shall be so construed. 
  
 1.3 TERM OF
PLAN. The Plan shall continue in effect until its termination by the Board. 
  
 2. DEFINITIONS AND CONSTRUCTION 
  
 2.1 DEFINITIONS. Any term not expressly defined in the Plan but
defined for purposes of Section 423 of the Code shall have the same definition herein. Whenever used herein, the following terms shall have their respective meanings set forth below: 
  
 (a) “Board” means the Board of Directors of the Company. If one or more Committees have been
appointed by the Board to administer the Plan, “Board” also means each such Committee. 
  
 (b) “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder.

  
 (c) “Committee” means the
Compensation Committee or other committee of the Board duly appointed to administer the Plan and having such powers as specified by the Board. Unless the powers of the Committee have been specifically limited, the Committee shall have all of the
powers of the Board granted herein, including, without limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 
  
 (d) “Company” means CallWave, Inc., a Delaware
corporation, or any successor corporation thereto. 
  
 (e)
“Compensation” means, with respect to any Offering Period, base wages or salary, overtime, bonuses, commissions, shift differentials, payments for paid time off, payments in lieu of notice, and compensation deferred under
any program or plan, including, without limitation, pursuant to Section 401(k) or Section 125 of the Code. Compensation shall be limited to amounts actually payable in cash or deferred during the Offering Period. Compensation shall not include
moving allowances, payments pursuant to a severance agreement, termination pay, relocation payments, sign-on bonuses, any amounts directly or indirectly paid pursuant to the Plan or any other stock purchase or stock option plan, or any other
compensation not included above. 
  
 (f)
“Effective Date” has the meaning ascribed thereto in Section 1.1, above. 
  

 (g) “Eligible Employee” means an Employee who meets the requirements set
forth in Section 5 for eligibility to participate in the Plan. 
  
 (h) “Employee” means a person treated as an employee of a Participating Company for purposes of Section 423 of the Code. A Participant shall be deemed to have ceased to be an Employee upon the sooner of an
actual termination of employment, or the corporation employing the Participant ceasing to be a Participating Company. For purposes of the Plan, an individual shall not be deemed to have ceased to be an Employee while on any military leave, sick
leave, or other bona fide leave of absence approved by the Company of ninety (90) days or less. If an individual’s leave of absence exceeds ninety (90) days, the individual shall be deemed to have ceased to be an Employee on the ninety-first
(91st) day of such leave unless the individual’s right to reemployment with the Participating Company Group is guaranteed either by statute or by contract. 
  

(i) “Fair Market Value” means, as of any date: 
  
 (i) If the Stock is then listed on a national or regional securities exchange or market system or is regularly
quoted by a recognized securities dealer, the closing sale price of a share of Stock (or the mean of the closing bid and asked prices if the Stock is so quoted instead) as quoted on the Nasdaq National Market, the Nasdaq SmallCap Market or such
other national or regional securities exchange or market system constituting the primary market for the Stock, or by such recognized securities dealer, as reported in The Wall Street Journal or such other source as the Company deems reliable.
If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system or has been quoted by such securities dealer, the date on which the Fair Market Value is established shall be the last day on
which the Stock was so traded or quoted prior to the relevant date, or such other appropriate day as determined by the Board, in its discretion. 
  
 (ii) If, on the relevant date, the Stock is not then listed on a national or regional securities exchange or market system or regularly quoted by
a recognized securities dealer, the Fair Market Value of a share of Stock shall be as determined in good faith by the Board. 
  
 (iii) Notwithstanding the foregoing, the Fair Market Value of a share of Stock on the Effective Date shall be deemed to be the public offering
price set forth in the final prospectus filed with the Securities and Exchange Commission in connection with the Company’s initial public offering of the Stock. 
  
 (j) “Initial Offering Period” means the Offering Period commencing on the Effective Date of
the Plan, as established pursuant to Section 6. 
  
 (k)
“Initial Offering Period Cash Exercise Notice” means a written notice in such form as specified by the Company, which states a Participant’s election to exercise, as of the next Purchase Date, a Purchase Right
granted to such Participant with respect to the Initial Offering Period. 
  
 (l) “Offering” means an offering of Stock as provided in Section 6. 
  
 (m) “Offering Date” means, for any Offering, the first day of the Offering Period. 
  
 (n) “Offering Period” means an Offering Period
established in accordance with Section 6. 
  
 (o)
“Parent Corporation” means any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code. 
  
 (p) “Participant” means an Eligible Employee who has become a participant in an Offering
Period in accordance with Section 7 and remains a participant in accordance with the Plan. 
  

 2 

 (q) “Participating Company” means the Company and any Parent Corporation
or Subsidiary Corporation designated by the Board as a corporation the Employees of which may, if Eligible Employees, participate in the Plan. The Board shall have the sole and absolute discretion to determine from time to time which Parent
Corporation or Subsidiary Corporations shall be Participating Companies. 
  
 (r) “Participating Company Group” means, at any point in time, the Company and all other corporations collectively which are then Participating Companies. 
  
 (s) “Purchase Date” means, for any Offering
Period, the last day of such Period, or, if so determined by the Board, the last day of each Purchase Period occurring within an Offering Period. 
  
 (t) “Purchase Period” means a Purchase Period established in accordance with Section 6. 
  
 (u) “Purchase Price” means the price at which
a share of Stock may be purchased under the Plan, as determined in accordance with Section 9. 
  
 (v) “Purchase Right” means an option granted to a Participant pursuant to the Plan to purchase shares of Stock as provided in
Section 8, which the Participant may or may not exercise during the Offering Period in which such option is outstanding. 
  
 (w) “Registration Date” means the effective date of the initial registration on Form S-8 of shares of Stock issuable
pursuant to the Plan. 
  
 (x)
“Stock” means the common stock of the Company, as adjusted from time to time in accordance with Section 4.2. 
  
 (y) “Subscription Agreement” means a written agreement in such form as may be specified by the Company from time to time,
stating an Employee’s election to participate in the Plan and authorizing payroll deductions under the Plan from the Employee’s Compensation. 
  
 (z) “Subscription Date” means the last business day prior to the Offering Date of an Offering Period or such earlier date
as the Company shall establish. 
  
 (aa)
“Subsidiary Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
  
 2.2 CONSTRUCTION. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term
“or” is not intended to be exclusive, unless the context clearly requires otherwise. 
  
 3. ADMINISTRATION 
  
 3.1 ADMINISTRATION BY THE BOARD. The Plan shall be administered by the Board. All questions of interpretation of
the Plan, of any form of agreement or other document employed by the Company in the administration of the Plan, or of any Purchase Right shall be determined by the Board, and such determinations shall be final, binding and conclusive upon all
persons having an interest in the Plan or the Purchase Right, unless fraudulent or made in bad faith. Subject to the provisions of the Plan, the Board shall determine all of the relevant terms and conditions of Purchase Rights; provided,
however, that all Participants granted Purchase Rights pursuant to an Offering shall have the same rights and privileges within the meaning of Section 423(b)(5) of the Code. Any and all actions, decisions and determinations taken or made by the
Board in the exercise of its discretion pursuant to the Plan or any agreement thereunder (other than determining questions of interpretation pursuant to this sentence of this Section 3.1) shall be final, binding and conclusive upon all persons
having an interest therein. All expenses incurred in connection with the administration of the Plan shall be paid by the Company. 
  

 3 

 3.2 AUTHORITY OF
OFFICERS. Any officer of the Company shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election that is the responsibility of or
that is allocated to the Company herein, provided that the officer has apparent authority with respect to such matter, right, obligation, determination or election. 
  
 3.3 POLICIES AND PROCEDURES ESTABLISHED
BY THE COMPANY. Without regard to whether any Participant’s Purchase Right may be considered adversely affected, the Company may, from time to time, consistent with
the Plan and the requirements of Section 423 of the Code, establish, change or terminate such rules, guidelines, policies, procedures, limitations, or adjustments as deemed advisable by the Company, in its discretion, for the proper administration
of the Plan, including, without limitation, (a) a minimum payroll deduction amount required for participation in an Offering, (b) a limitation on the frequency or number of changes permitted in the rate of payroll deduction during an Offering, (c)
an exchange ratio applicable to amounts withheld in a currency other than United States dollars, (d) a payroll deduction greater than or less than the amount designated by a Participant in order to adjust for the Company’s delay or mistake in
processing a Subscription Agreement or in otherwise effecting a Participant’s election under the Plan or as advisable to comply with the requirements of Section 423 of the Code, and (e) determination of the date and manner by which the Fair
Market Value of a share of Stock is determined for purposes of administration of the Plan. All such actions by the Company shall be taken consistent with the requirement under Section 423(b)(5) of the Code that all Participants granted Purchase
Rights pursuant to an Offering shall have the same rights and privileges within the meaning of such section. 
  
 3.4 INDEMNIFICATION. In addition to such other rights of indemnification as they may have as
members of the Board or officers or employees of the Participating Company Group, members of the Board and any officers or employees of the Participating Company Group to whom authority to act for the Board or the Company is delegated shall be
indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they
or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by
independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such
person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing,
the opportunity at its own expense to handle and defend the same. 
  
 4.
SHARES SUBJECT TO PLAN 
  
 4.1 MAXIMUM NUMBER OF SHARES ISSUABLE. Subject to adjustment as provided in Section 4.2, the
maximum aggregate number of shares of Stock that may be issued under the Plan shall (a) be one hundred twenty thousand (120,000), increased on July 1, 2005 and each July 1 thereafter until and including July 1, 2014 (the “Annual
Increase”) by that number of shares so that the number of shares that may be issued under the Plan is equal to the smallest of (i) eighty-five hundredths percent (0.85%) of the number of shares of Stock issued and outstanding on the
immediately preceding June 30, (ii) one hundred twenty thousand (120,000) shares, or (iii) such lesser number of shares determined by the Board, and (b) consist of authorized but unissued or reacquired shares of Stock, or any combination thereof. If
an outstanding Purchase Right for any reason expires or is terminated or canceled, the shares of Stock allocable to the unexercised portion of that Purchase Right shall again be available for issuance under the Plan. 
  
 4.2 ADJUSTMENTS FOR
CHANGES IN CAPITAL STRUCTURE. Subject to any required action by the stockholders of the Company, in the event of any change in the Stock effected without
receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of
shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than 
  

 4 

 Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock,
appropriate adjustments shall be made in the number and class of shares subject to the Plan, the Annual Increase, the limit on the shares which may be purchased by any Participant during an Offering (as described in Sections 8.1 and 8.2), each
Purchase Right, and the Purchase Price in order to prevent dilution or enlargement of Participants’ rights under the Plan. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as
“effected without receipt of consideration by the Company.” Any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded down to the nearest whole number, and in no event may the Purchase Price be
decreased to an amount less than the par value, if any, of the Stock subject to the Purchase Right. The adjustments determined by the Board pursuant to this Section 4.2 shall be final, binding and conclusive. 
  
 5. ELIGIBILITY 
  
 5.1 EMPLOYEES ELIGIBLE
TO PARTICIPATE. Each Employee of a Participating Company is eligible to participate in the Plan and shall be deemed an Eligible Employee, except the following: 
  
 (a) Any Employee who is customarily employed by the Participating
Company for twenty (20) hours or less per week; or 
  
 (b)
Any Employee who is customarily employed by the Participating Company for not more than five (5) months in any calendar year. 
  
 5.2 EXCLUSION OF CERTAIN STOCKHOLDERS.
Notwithstanding any provision of the Plan to the contrary, no Employee shall be treated as an Eligible Employee and granted a Purchase Right under the Plan if, immediately after such grant, the Employee would own stock of the Company or of any
Parent Corporation or Subsidiary Corporation possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of such corporation, as determined in accordance with Section 423(b)(3) of the Code. For purposes
of this Section 5.2, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of such Employee. 
  
 5.3 DETERMINATION BY COMPANY. The Company shall determine in good
faith and in the exercise of its discretion whether an individual has become or has ceased to be an Employee or an Eligible Employee and the effective date of such individual’s attainment or termination of such status, as the case may be. For
purposes of an individual’s participation in or other rights, if any, under the Plan as of the time of the Company’s determination, all such determinations by the Company shall be final, binding and conclusive. 
  
 6. OFFERINGS. The Plan initially shall be implemented on and
after the Effective Date by sequential Offerings of approximately six (6) months’ duration or such other duration as the Board shall determine (individually, an “Offering Period”); provided, however, subject to
the following sentence hereof, that the first Offering Period (the “Initial Offering Period”) shall commence on the Effective Date and end on the last day of the calendar month immediately preceding the six-month anniversary
of the Effective Date. Notwithstanding the foregoing, the Board may establish additional or alternative sequential or overlapping Offering Periods, a different duration for one or more Offering Periods or different commencing or ending dates for
such Offering Periods; provided, however, that no Offering Period may have a duration exceeding twenty-seven (27) months. If the Board shall so determine in its discretion, each Offering Period may consist of two (2) or more consecutive
purchase periods having such duration as the Board shall specify (individually, a “Purchase Period”), and the last day of each such Purchase Period shall be a Purchase Date. If the first or last day of an Offering Period or a
Purchase Period is not a day on which the principal exchange or quotation service on which the Company’s Common Stock is traded is open for trading, the Company shall specify the trading day that will be deemed the first or last day, as the
case may be, of the Offering Period or Purchase Period. 
  

 5 

 7. PARTICIPATION IN THE PLAN. 
  
 7.1 COMMENCEMENT OF
PARTICIPATION. An Eligible Employee may become a Participant in an Offering Period by delivering a properly completed Subscription Agreement to the office designated by the Company not later than the close of
business for such office on the Subscription Date established by the Company for that Offering Period. An Eligible Employee who does not deliver a properly completed Subscription Agreement to the Company’s designated office on or before the
Subscription Date for an Offering Period shall not participate in the Plan for that Offering Period. An Employee who becomes an Eligible Employee after the Offering Date of an Offering Period shall not be eligible to participate in that Offering
Period but may participate in any subsequent Offering Period provided the Employee is still an Eligible Employee as of the Offering Date of such subsequent Offering Period. 
  
 7.2 CONTINUED PARTICIPATION. 
  
 (a) GENERALLY. A
Participant shall automatically participate in the next Offering Period commencing immediately after the Purchase Date of each Offering Period in which the Participant participates provided that the Participant remains an Eligible Employee on the
Offering Date of the new Offering Period and has neither (a) withdrawn from the Plan pursuant to Section 12.1 nor (b) terminated employment as provided in Section 13. A Participant who may automatically participate in a subsequent Offering Period,
as provided in this Section, is not required to deliver any additional Subscription Agreement for the subsequent Offering Period in order to continue participation in the Plan. However, a Participant may deliver a new Subscription Agreement for a
subsequent Offering Period in accordance with the procedures set forth in Section 7.1 if the Participant desires to change any of the elections contained in the Participant’s then effective Subscription Agreement. 
  
 (b) PARTICIPATION FOLLOWING
INITIAL OFFERING PERIOD. Notwithstanding Section 7.2(a), an Eligible Employee who was enrolled in the Initial Offering Period and who wishes to participate in an Offering
Period which begins after the Initial Offering Period shall deliver a Subscription Agreement in accordance with Section 7.1 no earlier than the Registration Date and no later than the Subscription Date for such Offering Period. 
  
 8. RIGHT TO PURCHASE SHARES

  
 8.1 GRANT OF
PURCHASE RIGHT. Except as otherwise provided below (including in this Section 8.1 and in Section 10.1, below), on the Offering Date of each Offering Period, each Participant in such
Offering Period shall be granted automatically a Purchase Right consisting of an option to purchase that number of whole shares of Stock determined by dividing Twelve Thousand Five Hundred Dollars ($12,500) by the Fair Market Value of a share of
Stock on such Offering Date. The Board may, in its discretion and prior to the Offering Date of any Offering Period, (a) change the method of, or any of the foregoing factors in, determining the number of shares of Stock subject to Purchase Rights
to be granted on such Offering Date or (b) specify a maximum aggregate number of shares that may be purchased by all Participants in an Offering or on any Purchase Date within an Offering Period. No Purchase Right shall be granted on an Offering
Date to any person who is not, on such Offering Date, an Eligible Employee. 
  
 8.2 PRO RATA ADJUSTMENT OF PURCHASE RIGHT. If the Board establishes an Offering
Period of any duration other than six months, then the dollar amount in Section 8.1 shall be determined by multiplying $2,083.33 by the number of months (rounded up to the nearest whole month) in the Offering Period and rounded down to the nearest
whole dollar. 
  
 8.3 CALENDAR
YEAR PURCHASE LIMITATION. Notwithstanding any provision of the Plan to the contrary, no Participant shall be granted a Purchase Right which permits his or her right to
purchase shares of Stock under the Plan to accrue at a rate which, when aggregated with such Participant’s rights to purchase shares under all other employee stock purchase plans of a Participating Company intended to meet the requirements of
Section 423 of the Code, exceeds Twenty-Five Thousand Dollars ($25,000) in Fair Market Value (or such other limit, if any, as may be imposed by the Code) for each calendar year in which such Purchase Right is outstanding at any time. For purposes of
the preceding sentence, the Fair 
  

 6 

 Market Value of shares purchased during a given Offering Period shall be determined as of the Offering Date for such
Offering Period. The limitation described in this Section shall be applied in conformance with applicable regulations under Section 423(b)(8) of the Code. 
  
 9. PURCHASE PRICE. Subject to adjustment as provided below or in Section 22 and unless otherwise provided by
the Board, the Purchase Price at which each share of Stock may be acquired in an Offering Period upon the exercise of all or any portion of a Purchase Right shall be established by the Board; provided, however, that the Purchase Price on each
Purchase Date shall not be less than eighty-five percent (85%) of the lesser of (a) the Fair Market Value of a share of Stock on the Offering Date of the Offering Period or (b) the Fair Market Value of a share of Stock on the Purchase Date.
Notwithstanding the foregoing, in the event that (i) the stockholders of the Company approve an amendment to the Plan to increase the maximum aggregate number of shares of Stock issuable under the Plan in accordance with Section 4.1, (ii) all or any
portion of such additional shares of Stock (the “Additional Shares”) are to be issued pursuant to an Offering Period in progress at the time of such stockholder approval and (iii) the Fair Market value per share of Stock on
the date of such stockholder approval (the “Approval Date”) is greater than the Fair Market value per share of Stock on the Offering Date of such Offering Period, then, the Board may, in its
discretion and without the consent of any Participant, adjust the Purchase Price for such Offering Period to be an amount equal to not less than eighty-five percent (85%) of the lesser of (a) the Fair Market Value of a share of Stock on the Approval
Date or (b) the Fair Market Value of a share of Stock on the Purchase Date. 
  
 10. ACCUMULATION OF PURCHASE PRICE THROUGH PAYROLL DEDUCTIONS. Except as provided in Section 11.1(b) with respect to the
Initial Offering Period, shares of Stock acquired pursuant to the exercise of all or any portion of a Purchase Right may be paid for only by means of payroll deductions from the Participant’s Compensation accumulated during the Offering Period
for which such Purchase Right was granted, subject to the following: 
  
 10.1 AMOUNT OF PAYROLL DEDUCTIONS. Except as otherwise provided herein, the amount to be deducted under the Plan from a
Participant’s Compensation on each pay day during an Offering Period shall be determined by the Participant’s Subscription Agreement. The Subscription Agreement shall set forth the percentage of the Participant’s Compensation to be
deducted on each pay day during an Offering Period in whole percentages of not less than one percent (1%) (except as a result of an election pursuant to Section 10.3 to stop payroll deductions effective following the first pay day during an
Offering) or more than fifteen percent (15%). The Board may change the foregoing limits on payroll deductions effective as of any Offering Date. 
  
 10.2 COMMENCEMENT OF PAYROLL DEDUCTIONS. Payroll
deductions shall commence on the first pay day following the Offering Date and shall continue to the end of the Offering Period unless sooner altered or terminated as provided herein; provided, however, that with respect to the Initial
Offering Period, payroll deductions shall commence as soon as practicable following the Company’s receipt of the Participant’s Subscription Agreement (delivered no earlier than the Registration Date), if any. 
  
 10.3 ELECTION TO
CHANGE OR STOP PAYROLL DEDUCTIONS. During an Offering Period, a Participant may elect to increase or decrease the rate of or to stop
deductions from his or her Compensation by delivering to the Company’s designated office an amended Subscription Agreement authorizing such change on or before the “Change Notice Date.” The “Change Notice
Date” shall be a date prior to the beginning of the first pay period for which such election is to be effective as established by the Company from time to time and announced to the Participants. A Participant who elects,
effective following the first pay day of an Offering Period, to decrease the rate of his or her payroll deductions to zero percent (0%) shall nevertheless remain a Participant in the current Offering Period unless such Participant withdraws from the
Plan as provided in Section 12.1. 
  
 10.4
ADMINISTRATIVE SUSPENSION OF PAYROLL DEDUCTIONS. The Company may, in its sole discretion, suspend a Participant’s payroll
deductions under the Plan as the Company deems advisable to avoid accumulating payroll deductions in excess of the amount that could reasonably be anticipated to purchase the maximum number of shares of Stock permitted (a) under the
Participant’s Purchase Right or 
  

 7 

 (b) during a calendar year under the limit set forth in Section 8.3. Unless the Participant has either withdrawn from the
Plan as provided in Section 12.1 or has ceased to be an Eligible Employee, payroll deductions shall be resumed at the rate specified in the Participant’s then effective Subscription Agreement either (i) at the beginning of the next Offering
Period if the reason for suspension was clause (a) in the preceding sentence or (ii) at the beginning of the next Offering Period having a first Purchase Date that falls within the subsequent calendar year if the reason for suspension was clause (b)
in the preceding sentence. 
  
 10.5
PARTICIPANT ACCOUNTS. Individual bookkeeping accounts shall be maintained for each Participant. All payroll deductions from a Participant’s Compensation (and other amounts
received from the Participant in the Initial Offering Period) shall be credited to such Participant’s Plan account and shall be deposited with the general funds of the Company. All such amounts received or held by the Company may be used by the
Company for any corporate purpose. 
  
 10.6
NO INTEREST PAID. Interest shall not be paid on sums deducted from a Participant’s Compensation pursuant to the Plan or otherwise credited to the
Participant’s Plan account. 
  
 11. EXERCISE
OF PURCHASE RIGHT 
  
 11.1 GENERALLY 
  
 (a) EXERCISE. Except as provided in Section 11.1(b), on each Purchase Date of an Offering Period, each Participant who has not withdrawn from the Plan and whose participation in the Offering has
not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the exercise of the Participant’s Purchase Right the number of whole shares of Stock determined by dividing (a) the total amount of the
Participant’s payroll deductions accumulated in the Participant’s Plan account during the Offering Period and not previously applied toward the purchase of Stock by (b) the Purchase Price. However, in no event shall the number of shares
purchased by the Participant during an Offering Period exceed the number of shares subject to the Participant’s Purchase Right. No shares of Stock shall be purchased on a Purchase Date on behalf of a Participant whose participation in the
Offering or the Plan has terminated before such Purchase Date. 
  
 (b) PURCHASE IN INITIAL OFFERING PERIOD. Notwithstanding Section 11.1(a), on the Purchase Date of the Initial Offering
Period, each Participant who has not withdrawn from the Plan and whose participation in such Offering has not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the exercise of the Participant’s Purchase
Right (i) a number of whole shares of Stock determined in accordance with Section 11.1(a) to the extent of the total amount of the Participant’s payroll deductions accumulated in the Participant’s Plan account during the Initial Offering
Period, if any, and not previously applied toward the purchase of Stock and (ii) such additional shares of Stock (not exceeding in the aggregate the Participant’s Purchase Right) as determined in accordance with an Initial Offering Period Cash
Exercise Notice delivered to the office designated by the Company no earlier than the Registration Date and not later than the close of business for such office on the business day immediately preceding the Purchase Date or such earlier date as the
Company shall establish, accompanied by payment in cash or by check of the Purchase Price for such additional shares. However, in no event shall the number of shares purchased by a Participant during the Initial Offering Period exceed the number of
shares subject to the Participant’s Purchase Right. In addition, if a Participant delivers a Subscription Agreement to the Company after the Registration Date, the Participant may not elect to exercise a Purchase Right pursuant to an Initial
Offering Period Cash Exercise Notice in an amount which, when aggregated with payroll deductions pursuant to such Subscription Agreement, exceeds fifteen percent (15%) of the Participant’s Compensation during the Initial Offering Period. The
Company shall refund to the Participant in accordance with Section 11.4 any excess Purchase Price payment received from the Participant. 
  
 11.2 PRO RATA ALLOCATION OF Shares. If the number of shares of Stock
which might be purchased by all Participants on a Purchase Date exceeds the number of shares of Stock available in the Plan as provided in Section 4.1 or the maximum aggregate number of shares of Stock that may be purchased on such Purchase Date
pursuant to a limit established by the Board pursuant to Section 8.1, the 
  

 8 

 Company shall make a pro rata allocation of the shares available in as uniform a manner as practicable and as the Company
determines to be equitable. Any fractional share resulting from such pro rata allocation to any Participant shall be disregarded. 
  
 11.3 DELIVERY OF CERTIFICATES. As soon as practicable after each
Purchase Date, the Company shall arrange the delivery to each Participant of a certificate representing the shares acquired by the Participant on such Purchase Date; provided that the Company may deliver such shares to a broker designated by the
Company that will hold such shares for the benefit of the Participant. Shares to be delivered to a Participant under the Plan shall be registered in the name of the Participant, or, if requested by the Participant, in the name of the Participant and
his or her spouse, or, if applicable, in the names of the heirs of the Participant. 
  
 11.4 RETURN OF CASH BALANCE. Any cash balance remaining in a Participant’s Plan account following any
Purchase Date shall be refunded to the Participant as soon as practicable after such Purchase Date. However, if the cash balance to be returned to a Participant pursuant to the preceding sentence is less than the amount that would have been
necessary to purchase an additional whole share of Stock on such Purchase Date, the Company may retain the cash balance in the Participant’s Plan account to be applied toward the purchase of shares of Stock in the subsequent Offering Period.

  
 11.5 TAX
WITHHOLDING. At the time a Participant’s Purchase Right is exercised, in whole or in part, or at the time a Participant disposes of some or all of the shares of Stock he or she acquires under the
Plan, the Participant shall make adequate provision for the federal, state, local and foreign tax withholding obligations, if any, of the Participating Company Group which arise upon exercise of the Purchase Right or upon such disposition of shares,
respectively. The Participating Company Group may, but shall not be obligated to, withhold from the Participant’s compensation the amount necessary to meet such withholding obligations. 
  
 11.6 EXPIRATION OF
PURCHASE RIGHT. Any portion of a Participant’s Purchase Right remaining unexercised after the end of the Offering Period to which the Purchase Right relates shall expire immediately
upon the end of the Offering Period. 
  
 11.7
PROVISION OF REPORTS AND STOCKHOLDER INFORMATION TO PARTICIPANTS. Each Participant who
has exercised all or part of his or her Purchase Right shall receive, as soon as practicable after the Purchase Date, a report of such Participant’s Plan account setting forth the total amount credited to his or her Plan account prior to such
exercise, the number of shares of Stock purchased, the Purchase Price for such shares, the date of purchase and the cash balance, if any, remaining immediately after such purchase that is to be refunded or retained in the Participant’s Plan
account pursuant to Section 11.4. The report required by this Section may be delivered in such form and by such means, including by electronic transmission, as the Company may determine. In addition, each Participant shall be provided information
concerning the Company equivalent to that information provided generally to the Company’s common stockholders. 
  
 12. VOLUNTARY WITHDRAWAL FROM THE PLAN 
  
 12.1 WITHDRAWAL. A Participant
may withdraw from the Plan by signing and delivering to the Company’s designated office a written notice of withdrawal on a form provided by the Company for this purpose. Such withdrawal may be elected at any time prior to the end of an
Offering Period; provided, however, that if a Participant withdraws from the Plan after a Purchase Date, the withdrawal shall not affect shares of Stock acquired by the Participant on such Purchase Date. A Participant who voluntarily
withdraws from the Plan is prohibited from resuming participation in the Plan in the same Offering from which he or she withdrew, but may participate in any subsequent Offering by again satisfying the requirements of Sections 5 and 7.1. The Company
may impose, from time to time, a requirement that the notice of withdrawal from the Plan be on file with the Company’s designated office for a reasonable period prior to the effectiveness of the Participant’s withdrawal. 
  

 9 

 12.2 RETURN OF PAYROLL
DEDUCTIONS. Upon a Participant’s voluntary withdrawal from the Plan pursuant to Section 12.1, the Participant’s accumulated Plan account balance which has not been applied toward the purchase
of shares of Stock shall be refunded to the Participant as soon as practicable after the withdrawal, without the payment of any interest, and the Participant’s interest in the Plan and the Offering shall terminate. Such amounts to be refunded
in accordance with this Section may not be applied to any other Offering under the Plan. 
  
 13. TERMINATION OF EMPLOYMENT OR ELIGIBILITY. Upon a Participant’s ceasing, prior to a Purchase Date, to be an Employee of
the Participating Company Group for any reason, including retirement, disability or death, or upon the failure of a Participant to remain an Eligible Employee, the Participant’s participation in the Plan shall terminate immediately. In such
event, the Participant’s Plan account balance which has not been applied toward the purchase of shares shall, as soon as practicable, be returned to the Participant or, in the case of the Participant’s death, to the Participant’s
beneficiary designated in accordance with Section 20, if any, or legal representative, and all of the Participant’s rights under the Plan shall terminate. Interest shall not be paid on sums returned pursuant to this Section 13. A Participant
whose participation has been so terminated may again become eligible to participate in the Plan by satisfying the requirements of Sections 5 and 7.1. 
  
 14. CHANGE IN CONTROL 
  
 14.1 DEFINITIONS. 
  
 (a) An “Ownership Change Event” shall be deemed to have occurred
if any of the following occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the
Company; (ii) a merger or consolidation in which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company; or (iv) a liquidation or dissolution of the Company. 
  
 (b) A “Change in
Control” shall mean an Ownership Change Event or a series of related Ownership Change Events (collectively, the “Transaction”) wherein the stockholders of the Company
immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately before the Transaction, direct or indirect
beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in the case of a Transaction described in Section 14.1(a)(ii), the surviving corporation, or a
Transaction described in Section 14.1(a)(iii), the corporation or other business entity to which the assets of the Company were transferred (the “Transferee”), as the case may be. For purposes of the preceding sentence,
indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either
directly or through one or more subsidiary corporations or other business entities. The Board shall have the right to determine whether multiple sales or exchanges of the voting securities of the Company or multiple Ownership Change Events are
related, and its determination shall be final, binding and conclusive. 
  
 14.2 EFFECT OF CHANGE IN CONTROL ON PURCHASE RIGHTS. In the event of a Change
in Control, the surviving, continuing, successor, or purchasing corporation or parent thereof, as the case may be (the “Acquiring Corporation”), may, without the consent of any Participant, assume
the Company’s rights and obligations under the Plan. If the Acquiring Corporation elects not to assume the Company’s rights and obligations under the Plan, the Purchase Date of the then current Offering Period shall be accelerated to a
date before the date of the Change in Control specified by the Board, but the number of shares of Stock subject to outstanding Purchase Rights shall not be adjusted. All Purchase Rights which are neither assumed by the Acquiring Corporation in
connection with the Change in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the date of the Change in Control. 
  

 10 

 15. NONTRANSERABILITY OF PURCHASE RIGHTS.
Neither payroll deductions or other amounts credited to a Participant’s Plan account nor a Participant’s Purchase Right may be assigned, transferred, pledged or otherwise disposed of in any manner other than as provided by the Plan or
by will or the laws of descent and distribution. (A beneficiary designation pursuant to Section 20 shall not be treated as a disposition for this purpose.) Any such attempted assignment, transfer, pledge or other disposition shall be without effect,
except that the Company may treat such act as an election to withdraw from the Plan as provided in Section 12.1. A Purchase Right shall be exercisable during the lifetime of the Participant only by the Participant. 
  
 16. COMPLIANCE WITH SECURITIES
LAW. The issuance of shares under the Plan shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities. A Purchase Right may not be exercised if the issuance of
shares upon such exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any securities exchange or market system upon which the Stock may then be listed.
In addition, no Purchase Right may be exercised unless (a) a registration statement under the Securities Act of 1933, as amended, shall at the time of exercise of the Purchase Right be in effect with respect to the shares issuable upon exercise of
the Purchase Right, or (b) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the Purchase Right may be issued in accordance with the terms of an applicable exemption from the registration requirements of said Act.
The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares under the Plan shall relieve the
Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of a Purchase Right, the Company may require the Participant to satisfy
any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation, and to make any representation or warranty with respect thereto as may be requested by the Company. 
  
 17. RIGHTS AS A
STOCKHOLDER AND EMPLOYEE. A Participant shall have no rights as a stockholder by virtue of the Participant’s participation in the Plan until the date of the issuance of the shares
purchased pursuant to the exercise of the Participant’s Purchase Right (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends,
distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in Section 4.2. Nothing herein shall confer upon a Participant any right to continue in the employ of the Participating Company
Group or interfere in any way with any right of the Participating Company Group to terminate the Participant’s employment at any time. 
  
 18. LEGENDS. The Company may at any time place legends or other identifying symbols referencing any applicable federal, state
or foreign securities law restrictions or any provision convenient in the administration of the Plan on some or all of the certificates representing shares of Stock issued under the Plan. The Participant shall, at the request of the Company,
promptly present to the Company any and all certificates representing shares acquired pursuant to a Purchase Right in the possession of the Participant in order to carry out the provisions of this Section. Unless otherwise specified by the Company,
legends placed on such certificates may include but shall not be limited to the following: 
  

	
	“THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION
TO THE REGISTERED HOLDER UPON THE PURCHASE OF SHARES UNDER AN EMPLOYEE
STOCK PURCHASE PLAN AS DEFINED IN
SECTION 423 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED. THE TRANSFER AGENT FOR THE SHARES EVIDENCED
HEREBY SHALL NOTIFY THE CORPORATION IMMEDIATELY OF ANY TRANSFER OF THE
SHARES BY THE REGISTERED HOLDER HEREOF. THE REGISTERED HOLDER
SHALL
HOLD ALL SHARES PURCHASED UNDER THE PLAN IN THE REGISTERED HOLDER’S
NAME (AND NOT IN THE NAME OF ANY NOMINEE).”

  
 19.
NOTIFICATION OF DISPOSITION OF SHARES. The Company may require the Participant to give the Company prompt notice of any disposition of shares
acquired by exercise of a Purchase Right. The 
  

 11 

 Company may require that until such time as a Participant disposes of shares acquired upon exercise of a Purchase Right,
the Participant shall hold all such shares in the Participant’s name (or, if elected by the Participant, in the name of the Participant and his or her spouse but not in the name of any nominee) until the later of two years after the date of
grant of such Purchase Right or one year after the date of exercise of such Purchase Right. The Company may direct that the certificates evidencing shares acquired by exercise of a Purchase Right refer to such requirement to give prompt notice of
disposition. 
  
 20. DESIGNATION OF
BENEFICIARY 
  
 20.1
DESIGNATION PROCEDURE. Subject to local laws and procedures, a Participant may file a written designation of a beneficiary who is to receive (a) shares and cash, if any, from the Participant’s Plan
account if the Participant dies subsequent to a Purchase Date but prior to delivery to the Participant of such shares and cash or (b) cash, if any, from the Participant’s Plan account if the Participant dies prior to the exercise of the
Participant’s Purchase Right. If a married Participant designates a beneficiary other than the Participant’s spouse, the effectiveness of such designation may be subject to the consent of the Participant’s spouse. A Participant may
change his or her beneficiary designation at any time by written notice to the Company. 
  
 20.2 ABSENCE OF BENEFICIARY DESIGNATION. If a Participant dies without an effective designation pursuant to
Section 20.1 of a beneficiary who is living at the time of the Participant’s death, the Company shall deliver any shares or cash credited to the Participant’s Plan account to the Participant’s legal representative. 
  
 21. NOTICE. All notices or other communications
by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

  
 22. AMENDMENT OR
TERMINATION OF PLAN. The Board may at any time amend, suspend or terminate the Plan, except that (a) no such amendment, suspension or termination shall affect Purchase Rights previously
granted under the Plan unless expressly provided by the Board and (b) no such amendment, suspension or termination may adversely affect a Purchase Right previously granted under the Plan without the consent of the Participant, except to the extent
permitted by the Plan or as may be necessary to qualify the Plan as an employee stock purchase plan pursuant to Section 423 of the Code or to comply with any applicable law, regulation or rule. In addition, an amendment to the Plan must be approved
by the stockholders of the Company within twelve (12) months of the adoption of such amendment if such amendment would authorize the sale of more shares than are then authorized for issuance under the Plan or would change the definition of the
corporations that may be designated by the Board as Participating Companies. Notwithstanding the foregoing, in the event that the Board determines that continuation of the Plan or an Offering would result in unfavorable financial accounting
consequences to the Company as a result of a change after the Effective Date in the generally accepted accounting principles applicable to the Plan, the Board may, in its discretion and without the consent of any Participant, including with respect
to an Offering Period then in progress: (i) terminate the Plan or any Offering Period, (ii) accelerate the Purchase Date of any Offering Period, (iii) reduce the discount applicable in determining the Purchase Price of any Offering Period, (iv)
reduce the maximum number of shares of Stock that may be purchased in any Offering Period or (v) take any combination of the foregoing actions. 
  

 12 

 IN WITNESS WHEREOF, the Company has
adopted the foregoing Plan, effective as of the date set forth above. 
  

	
	 CALLWAVE, INC., a Delaware corporation
  
  
  
 By    /s/ David F. Hofstatter
         David F. Hofstatter, President

  

 13

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