Document:

exv10w02

 

Exhibit 10.02

GLU MOBILE INC.

(formerly known as Sorrent, Inc.)

2001 SECOND AMENDED AND RESTATED

STOCK OPTION PLAN

Adopted on December 19, 2001

Amended on October 8, 20021

Amended on April 14, 20032

Amended on June 3, 20043

Amended on December 8, 20044

As Amended on February 24, 20055

As Amended on April 19, 20056

As Amended on September 12, 20057

As Amended on September 7, 20068

SECTION 1. ESTABLISHMENT AND PURPOSE.

The Board of Directors of the Company hereby adopts this 2001 Stock Option Plan (the “Plan” or this
“Plan”), subject to shareholder approval, for the following purposes: to attract and retain the
best available personnel for positions of substantial responsibility with the Company, to provide
additional incentive to Employees, Consultants and Outside Directors of the Company who render
Services to the Company and to promote the success of the Company’s business. Options granted
under this Plan may be ISOs or Nonstatutory Options, as determined by the Plan Administrator at the
time of grant of an Option and subject to the applicable provisions of Section 422 of the Code and
the regulations promulgated thereunder.

Capitalized terms are defined in Section 10 or in the context of their use throughout this Plan.

SECTION 2. ADMINISTRATION.

     (a) Plan Administrator. This Plan shall be administered by the Plan Administrator, which
shall be either the entire Board of Directors or an authorized Committee thereof, which shall have
such authority and be responsible for such functions as the Board of Directors may from time to
time assign to it. The Plan Administrator may delegate to certain officers of the Company or other
individuals limited authority to grant Options. After the date, if any, upon which the Company
becomes subject to the Exchange Act, this Plan will be administered in compliance with the
requirements of any applicable state, federal and foreign laws, including without limitation Rule
16b-3 of the Exchange Act and requirements relating to payment of performance-based compensation
under Section 162(m) of the Code.

 

			
	1	 	Increased pool from 1,440,000 to 2,500,000
shares of common stock with an additional 1,060,000 shares.
	 
	2	 	Increased pool from 2,500,000 to 5,744,922
shares of common stock with an additional 3,244,922 shares.
	 
	3	 	Increased pool from 5,744,922 to 6,744,922
shares of common stock with an additional 1,000,000 shares.
	 
	4	 	Increased pool from 6,744,922 to 7,244,922
shares of common stock with an additional 500,000 shares.
	 
	5	 	Increased pool from 7,244,922 to 7,544,922
shares of common stock with an additional 300,000 shares.
	 
	6	 	Increased pool from 7,544,922 to 9,244,922 shares of common
stock with an additional 1,700,000 shares.
	 
	7	 	Increased pool from 9,244,922 to 10,494,922 shares of common
stock with an additional 1,250,000 shares.
	 
	8	 	Increased pool from 10,494,922 to 13,494,922 shares of common
stock with an additional 3,000,000 shares.

 

 

     (b) Authority of the Plan Administrator. Subject to the provisions of this Plan, including
without limitation Section 7(a) below, the Plan Administrator shall have full authority and
discretion to take any actions it deems necessary or advisable for the administration of this Plan,
to interpret this Plan and to enact rules for its efficient administration. The Plan Administrator
shall have the authority, in its discretion, to determine which Employees, Consultants and Outside
Directors will receive an Option grant, the time or times when such grant shall be made, whether an
ISO or a Nonstatutory Option shall be granted, the number of Offered Shares that may be issued
under each Option, and such other matters as this Plan shall leave to the discretion or authority
of the Plan Administrator. In making such determinations, the Plan Administrator may take into
account the nature of the Services rendered by these individuals, their present and potential
contribution to the success of the Company, and such other factors as the Plan Administrator in its
discretion shall deem relevant. All decisions, interpretations and other actions of the Plan
Administrator shall be final and binding on all Optionees and all persons deriving their rights
from an Optionee.

SECTION 3. ELIGIBILITY.

     Employees, Consultants and Outside Directors who render Service to the Company (or any
Subsidiary of the Company) may be eligible for the grant of Options under this Plan. ISOs may only
be granted to Employees.

SECTION 4. SHARES SUBJECT TO PLAN.

     The Shares offered and issued pursuant to Options granted under this Plan shall be authorized
but unissued Shares. Subject to the provisions of this Section 4, the aggregate number of Shares
that may be either offered pursuant to unexercised Options granted and outstanding, or issued upon
exercise of Options, at any time under this Plan, shall not exceed 13,494,922 Shares (the “Share
Limitation”). For purposes of calculating the Share Limitation at any time, any Shares that had
been offered under Options that have expired or terminated, in whole or in part, as of a certain
date and any Shares that had been issued upon the exercise of Options but which the Company
subsequently reacquired on or before a certain date, shall (a) not be deemed to be Shares that are
either offered, outstanding or issued as of such date, and (b) again be available to be offered and
issued pursuant to Options granted under this Plan. The Company, during the term of this Plan,
shall at all times reserve and keep available out of its authorized capital sufficient Shares to
satisfy its obligations pursuant to outstanding Options, to the extent then currently exercisable
or capable of future exercise pursuant to the terms thereof and the requirements of this Plan.

SECTION 5. TERMS AND CONDITIONS OF OPTIONS.

     (a) Stock Option Agreement. Each grant of an Option under this Plan shall be evidenced by a
Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all
applicable terms and conditions of this Plan and may be subject to any other terms and conditions
that are not inconsistent with this Plan, as set forth in the applicable Stock Option Agreement
approved by the Plan Administrator for use in connection with such Option grant. The provisions of
the various Stock Option Agreements entered into under this Plan need not be identical.

 

 

     (b) Number of Shares. Each Stock Option Agreement shall specify the number of Offered Shares
that are subject to the Option.

     (c) ISO Treatment. Each Stock Option Agreement pursuant to which an Option is granted to an
Employee shall specify whether the Option is intended to be an ISO. In the absence of such express
specification, the Option shall be deemed to be a Nonstatutory Option. Notwithstanding any such
specification, (i) if the Plan Administrator confers any material additional benefit to the
Optionee who has been granted an Option specified as an ISO beyond the original terms of the
applicable Stock Option Agreement evidencing such an Option, including without limitation, by
accepting payment in any form of legal consideration for Offered Shares other than the forms of
payment originally set forth in the Stock Option Agreement as contemplated under Section 5(d)
below, the Optionee shall assume the risk that his or her Option may henceforth be treated as a
Nonstatutory Option; and (ii) to the extent that the aggregate Fair Market Value of the Shares with
respect to Options designated as ISOs are exercisable for the first time by any Optionee during any
calendar year (under all plans of the Company) exceeds the limit set forth in Code Section 422(d)
(currently $100,000), such excess Options shall be treated as Nonstatutory Options.

     (d) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price payable for
the Offered Shares upon exercise of the Option. The Exercise Price payable for Offered Shares
subject to an ISO shall not be less than 100% of the Fair Market Value of a Share as of the Grant
Date. The Exercise Price payable for Offered Shares subject to a Nonstatutory Option shall not be
less than 85% of the Fair Market Value of a Share as of the Grant Date. Notwithstanding the
foregoing, in the case of any Option granted to a 10% Holder, the Exercise Price payable for the
Offered Shares subject to such Option must be at least 110% of the Fair Market Value of a Share as
of the Grant Date. Subject to the preceding sentences, the Exercise Price payable for Offered
Shares subject to any Option shall be determined by the Plan Administrator in its discretion. The
aggregate Exercise Price payable for Offered Shares issued upon the exercise of any Option granted
under this Plan shall be paid to the Company in cash or cash equivalents or in such other form or
forms of legal consideration as may be acceptable to the Plan Administrator, in its discretion at
the time when such Shares are purchased, except as otherwise provided herein.

     (e) Withholding Taxes. As a condition to the exercise of an Option and the purchase of the
Offered Shares thereunder, the Optionee shall make such arrangements as the Plan Administrator may
require for the satisfaction of any federal, state, local or foreign withholding tax obligations
that may arise in connection with such exercise. The Optionee shall also make such arrangements as
the Plan Administrator may require for the satisfaction of any federal, state, local or foreign
withholding tax obligations that may arise in connection with the Transfer of any Offered Shares
acquired by exercising an Option.

     (f) Vesting, Exercise and Repurchase. Subject to the requirements of the California
Regulations described below, the Plan Administrator shall have the discretion to determine and
cause to be set forth in the applicable Stock Option Agreement, the date or dates and/or the event
or events upon which (a) any Option or portion thereof may be exercised for the first time, and (b)
any Offered Shares will be deemed “Vested” within the meaning set forth in

 

 

Section 5(f)(i) below. In the absence of such specification in a Stock Option Agreement, the
following rules shall apply:

     (i) Default Vesting Schedule. In addition to any other repurchase right that the
Company may have with respect to any Offered Shares, the Company shall have an assignable
right and option (the “Company Repurchase Option”) to repurchase such Offered Shares at a
price per Share equal to the Exercise Price, which shall be subject to appropriate
adjustments for any Recapitalization Event, payable in the form of cash or for cancellation
of indebtedness to the Company incurred by the Optionee in purchasing the Offered Shares, at
any time during the 90-day period that shall commence on the later of (a) the Optionee’s
Service Termination Date, or (b) if applicable, the last date that the Optionee purchases
any of the Offered Shares upon the exercise of the Option, provided that the Company
Repurchase Option shall lapse with respect to specified amounts of the total number of
Offered Shares originally offered under an Option (which Shares will then be deemed to be
“Vested”) as follows: one-quarter (1/4) of the total number of Offered Shares (rounded to
the nearest whole Share) subject to the Option shall become Vested as of the first
anniversary of the Vesting Start Date; and one-forty-eighth (1/48) of the total number of
Offered Shares (rounded to the nearest whole Share) subject to the Option shall become
Vested as of the last day of each calendar month following the first anniversary of the
Vesting Start Date, subject to the condition in the case of each such Vesting date that the
Optionee continues to provide Service as of such date.

     (ii) Default Exercise Schedule. Unless otherwise stated in the applicable Stock Option
Agreement, an Option may first be exercised as to the Offered Shares subject to the Option
as of, and only as of, the dates when those Shares first become Vested (as set forth in
Section 5(f)(i) above), such that as of the date when all of the Offered Shares subject to
the Option are fully Vested, the entire Option may be exercised.

Notwithstanding the above, in accordance with the California Regulations, the Plan Administrator
shall not grant an Option to an Employee other than an officer of the Company that would first
become exercisable and Vested at a rate that is slower than the following: 20% of the total number
of Offered Shares subject to the Option on and after the first anniversary of the Grant Date, and
an additional 20% of such Offered Shares subject to Option on or after each subsequent anniversary
of the Grant Date, such that the entire Option may be exercised and the Offered Shares shall become
Vested as of the fifth anniversary of the Grant Date, subject to the condition in each case that
the Optionee continues to provide Service.

     (g) Leaves of Absence. For purposes of this Plan, Service shall be deemed to continue while
the Optionee is on a bona fide leave of absence, if such leave was approved by the Company in
writing and either (x) the leave is for fewer than three months or (y) the Optionee’s return to
Service is guaranteed by statute or contract, or as otherwise provided by Company policy
as adopted from time to time.

     (h) Basic Term. Each Stock Option Agreement shall specify the maximum term of the Option,
provided that in no event may the maximum term exceed ten years commencing on the Grant
Date. In the case of an ISO granted to a 10% Holder, such ISO by its terms may not be exercised
after the date that is five years after the Grant Date. An Optionee may exercise all or

 

 

part of his or her Option at any time before the expiration of the term of such Option under
this Section 5(h) or Section 5(i) below, but only to the extent that the Offered Shares underlying
such Option have become Vested on or before the Optionee’s Service Termination Date (including, to
the extent applicable, as a result of such termination of Service).

     (i) Special Term. Each Stock Option Agreement shall expire as of the close of business for
the Company on the earliest of the following dates:

     (i) The expiration date of the Option term determined pursuant to Section 5(h) above;

     (ii) In the event an Optionee’s Service terminates as a result of a disability, the
date that is six months after the Optionee’s Service Termination Date;

     (iii) The date 12 months after the Optionee’s death, or such later date as the Plan
Administrator may determine;

     (iv) The date three months after the Optionee’s Service Termination Date resulting from
any reason other than Cause, disability or death; or

     (v) The Optionee’s Service Termination Date resulting from Cause, or such later date as
the Plan Administrator may determine (not to exceed 30 days).

In the event an Option expires pursuant to Section 5(i)(iii) above, all or part of the Option may
be exercised at any time before such expiration by the executors or administrators of the
Optionee’s estate or by any person who has acquired such Options directly from the Optionee by
beneficiary designation, bequest or inheritance, but only to the extent that the Offered Shares
underlying such Option had become Vested on or before the Optionee’s Service Termination Date
(including, to the extent applicable, as a result of such termination). In the event that an
Optionee dies after his or her Service Termination Date, but before the expiration of his or her
Option, all or part of such Option may be exercised (prior to expiration) by the executors or
administrators of the Optionee’s estate or by any person who has acquired such Options directly
from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that
the Offered Shares underlying such Option had become Vested on or before the Optionee’s Service
Termination Date (including, to the extent applicable, as a result of such termination).

     (j) No Rights as a Shareholder. An Optionee, or a transferee of an Optionee, shall have no
rights as a shareholder with respect to any Offered Shares until such person becomes entitled to
receive such Offered Shares by filing a notice of exercise and paying the Exercise Price pursuant
to the terms of such Option and this Plan.

     (k) Modification, Extension, Assumption and Termination of Options. Within the express
limitations of this Plan, the Plan Administrator may modify, extend, assume or terminate
outstanding Options or may accept the cancellation of outstanding Options in return for the grant
of new Options for the same or a different number of Offered Shares and at the same or a different
Exercise Price. The foregoing notwithstanding, no modification or termination of an Option shall,
without the consent of the Optionee, impair the Optionee’s rights

 

 

or increase the Optionee’s obligations under such Option, and no Option designated as an ISO
shall be subject to modification, renewal or extension without Optionee’s consent.

     (l) Restrictions on Transfer of Shares. Any Offered Shares issued upon exercise of an Option
shall be subject to such special forfeiture conditions, rights of repurchase (in addition to any
Company Repurchase Option), rights of first refusal and other Transfer restrictions as the Plan
Administrator may determine, consistent with the requirements of the California Regulations. Such
restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally.

     (m) Nontransferability. An Option may be exercised during the lifetime of the Optionee only
by the Optionee or by the Optionee’s guardian or legal representative. Subject to the preceding
sentence, Options granted under this Plan and the rights and privileges conferred thereby shall not
be Transferred, except upon the death of the Optionee by will or under the laws of descent or
distribution.

SECTION 6. ADJUSTMENT OF SHARES.

     (a) Changes in Capitalization. In connection with a Recapitalization Event, the Board of
Directors shall make appropriate adjustments to the number and kind of Offered Shares covered by
each outstanding Option under this Plan and such adjustments shall be final, binding and
conclusive, subject to any required action by the Company’s shareholders.

     (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of
the Company, the Board of Directors shall notify each Optionee a reasonable period of time prior to
such action so that each such Optionee will be given an opportunity to exercise the then
exercisable portion of such Options. To the extent it has not been previously exercised, each
outstanding Option will expire immediately prior to the consummation of such proposed action.

     (c) Change in Control Transaction. In the event of a Change in Control Transaction, the
Company shall endeavor to cause the Successor Entity (or its parent or Subsidiary) in such
transaction either to assume all of the outstanding Options at the consummation of such transaction
(the “Closing”), or to grant (or cause to be granted) in substitution thereof substantially
comparable options of such Successor Entity (or of its parent or its Subsidiary). If the Successor
Entity (or its parent or Subsidiary) is unwilling to either assume all such Options, or grant
substantially comparable options in substitution of all such Options, on terms that are acceptable
to the Company as determined by the Board of Directors in the exercise of its discretion, then the
Board of Directors may, at its discretion, deem (i) all or a portion of the total number of the
Offered Shares subject to Outstanding Options that would not otherwise be Vested as of the Closing
to be Vested immediately prior to the Closing, (ii) all or a portion of the total number of Offered
Shares subject to outstanding Options that would not otherwise be exercisable as of the Closing to
be exercisable immediately prior to Closing, and (iii) the Company will notify all Optionees
holding outstanding Options of the foregoing and give each such Optionee an opportunity to exercise
the then exercisable portion of such Options immediately prior to the Closing.

 

 

     (d) Reservation of Rights. Except as provided in this Section 6, except to the extent an
Optionee holds Shares issued upon exercise of an Option in accordance with the terms of
this Plan and such Optionee’s Stock Option Agreement, an Optionee shall have no rights by reason of
(i) any Recapitalization Event, (ii) the payment of any dividend or other distribution on
outstanding shares of the Company, or (iii) any other increase or decrease in the number of
authorized or issued shares of any class. In the event of any distribution to the Company’s
shareholders of securities of any other entity or other assets (other than dividends payable in
cash or shares of the Company) without receipt of consideration by the Company, the Plan
Administrator may, in its discretion, appropriately adjust the Exercise Price per Share covered by
each outstanding Option to reflect the effect of such distribution. Except as expressly provided
in Section 6(a) above, any issuance by the Company of shares, or securities convertible into
shares, shall not affect, and no adjustment by reason thereof shall be made with respect to, the
number of Offered Shares, or the Exercise Price thereof, subject to an Option. The grant of an
Option pursuant to this Plan shall not affect in any way the right or power of the Company to make
adjustments, reclassifications, reorganizations or changes of its capital or business structure, to
merge or consolidate or to dissolve, liquidate or Transfer all or any part of its business or
assets.

SECTION 7. SECURITIES LAW REQUIREMENTS.

     (a) General. Notwithstanding any other provision of this Plan, Options may be granted, and
Shares issued upon the exercise thereof by an Optionee, only after and on the condition that there
has been compliance with the Securities Act and all other applicable federal, state and foreign
securities laws. The Company will not be required to list, register or qualify any Option or
Offered Shares issued upon the exercise thereof upon any securities exchange, under the Securities
Act or any other applicable federal, state or foreign law or regulation, or with the Securities and
Exchange Commission or any state or foreign agency, or secure the consent or approval of any
governmental regulatory authority, except that if at any time the Board of Directors determines in
its discretion, that such listing, registration or qualification of the Option or Offered Shares
issued upon exercise thereof, or any consent or approval, is necessary or desirable as a condition
of or in connection with the exercise of an Option and the purchase of the Offered Shares issued
upon exercise thereof, then an Option may not be exercised, in whole or in part, unless and until
such listing, registration, qualification, consent or approval is effected or obtained free of any
conditions that are not acceptable to the Board of Directors, in its discretion. The Plan
Administrator shall adopt and enforce reasonable measures, including appropriate provisions within
each Stock Option Agreement entered into with an Optionee who is granted an Option under this Plan,
to ensure that no Offered Shares acquired upon the exercise of any Option are Transferred except in
full compliance with the Securities Act and all other applicable federal, state and foreign
securities laws and regulations.

     (b) Financial Reports. Prior to the earlier of an Initial Public Offering or the date on
which the Company is required to file its annual financial statements with the Securities and
Exchange Commission under the Exchange Act (or with any other applicable securities regulatory body
under applicable law), the Company annually will provide the Company’s financial statements (which
statements need not be audited) to Optionees under this Plan (except with respect to any Optionee
who is an Employee whose duties with the Company assure him access to equivalent information),
provided that the Plan Administrator may include reasonable

 

 

provisions in each Stock Option Agreement to protect the confidentiality of such information
against the wrongful use or disclosure by the recipient of such information.

SECTION 8. NO RETENTION RIGHTS.

Nothing in this Plan or in any right or Option granted under this Plan shall confer upon any
Optionee any right to continue in the Service of the Company (or any Subsidiary of the Company, as
the case may be) for any period of specific duration or interfere with or otherwise restrict in any
way the rights of the Company (or any Subsidiary of the Company, as the case may be) employing or
retaining the Optionee, which rights are hereby expressly reserved, to terminate his or her Service
at any time and for any reason, with or without cause.

SECTION 9. DURATION AND AMENDMENTS.

     (a) Term of the Plan. This Plan became effective when adopted by the Board of Directors on
December 19, 2001 and shall be approved by the Company’s shareholders within 12 months of such
adoption. The Plan shall terminate automatically ten years after its adoption by the Board of
Directors, and may be terminated on any earlier date pursuant to Section 9(b) below.

     (b) Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or
terminate this Plan at any time and for any reason; provided that any amendment of this
Plan that increases the Share Limitation set forth in Section 4, or that materially changes the
class of persons who are eligible for the grant of ISOs, shall be subject to the approval of the
Company’s shareholders. Except as required by applicable law or regulation (including the
requirements of any stock exchange or a national market system), shareholder approval shall not be
required for any other amendment of this Plan.

     (c) Effect of Amendment or Termination. No Shares shall be issued or sold by the Company
under this Plan after the termination thereof, except upon exercise of an Option granted prior to
such termination. The termination of this Plan, or any amendment thereof, shall not affect any
Share previously issued or any Option previously granted under this Plan.

     (d) Choice of Law. The internal laws of the State of California (irrespective of its choice
of law principles) will govern the validity of this Plan, the construction of its terms and the
interpretation of the rights and duties of the parties hereunder and under any Stock Option
Agreement. Any party may seek to enforce its rights under this Plan or any Stock Option Agreement
entered into under this Plan in any court of competent jurisdiction located within the judicial
district in which the Company has a regular place of business.

SECTION 10. DEFINITIONS.

     (a) “10% Holder” shall mean an individual or entity who owns more than 10% of the total
combined voting power of all classes of outstanding shares of the Company as determined by the
attribution rules of Section 424(d) of the Code.

 

 

     (b) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from
time to time acting directly or, to the extent permitted by applicable law, acting by delegation
through an authorized Committee.

     (c) “California Regulations” shall mean the regulations of the California Commissioner of
Corporations that must be complied with in order for the Options granted and Shares issued under
this Plan to qualify for the exemption provided under Section 25102(o) of the California Corporate
Securities Law of 1968, as amended.

     (d) “Cause” shall mean a determination by the Company that there exists grounds for a
termination of an Optionee’s Service based upon any of the following actions or events in which the
Optionee is believed to be culpable: the unauthorized use or disclosure of the confidential
information or trade secrets of the Company, conviction of a felony under the laws of the United
States or any state thereof, gross negligence, or any other misconduct as the Board of Directors or
officers of the Company may determine.

     (e) “Change in Control Transaction” shall mean the acquisition of all or substantially all of
the Company’s assets or the acquisition of the Company by another entity (the “Successor Entity”)
by means of merger or consolidation resulting in the exchange of the outstanding shares of the
Company for securities or consideration issued, or caused to be issued, by the Successor Entity in
which the holders of the capital shares of the Company then hold less than fifty percent (50%) of
the voting securities of the Successor Entity.

     (f) “Closing” shall have the meaning set forth in Section 6(c) above.

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

     (h) “Company Repurchase Option” shall have the meaning set forth in Section 5(f) above.

     (i) “Committee” shall mean a committee of the Board of Directors consisting of one or more
members of the Board of Directors.

     (j) “Company” shall mean Glu Mobile Inc., a corporation formed under the laws of the State of
California.

     (k) “Consultant” shall mean an individual or entity who performs Service as a consultant or
advisor, excluding Employees and Outside Directors.

     (l) “Donative Transfer” shall mean any voluntary Transfer by a transferor other than for value
or the payment of consideration to the transferor.

     (m) “Employee” shall mean any individual who is a common-law employee of the Company, and
includes any director who is such a common-law employee. The payment of a director’s fee to a
director shall not itself be enough to constitute employment of such director.

     (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

 

     (o) “Exercise Price” shall mean the amount for which one Share may be purchased upon exercise
of an Option, as specified by the Plan Administrator in the applicable Stock Option Agreement.

     (p) “Fair Market Value” shall mean, as of any date, the fair market value of Shares determined
as follows:

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

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

     (iii) In the absence of an established market for the Shares, the Fair Market Value
thereof shall be determined in good faith by the Plan Administrator in compliance with the
requirements of the California Regulations. Such determination shall be conclusive and
binding on all persons.

     (q) “Grant Date” shall mean, with respect to any Option granted under this Plan, the effective
date of such grant, which shall in no event be earlier than (a) the date such grant is approved by
the Plan Administrator, or (b) the Service Start Date, whichever is later.

     (r) “Initial Public Offering” shall mean the first listing of the shares of capital stock of
the Company on any established stock exchange or national market system imminently following the
declaration of effectiveness of a registration statement filed by the Company with the Securities
and Exchange Commission of the United States of America under the Securities Act, in connection
with a sale and issuance of such shares of capital stock in which the gross proceeds to the Company
from such transaction equals or exceeds $15,000,000.

     (s) “Involuntary Transfer” includes, without limitation, any of the following: (A) an
assignment for the benefit of creditors of the transferor; (B) a Transfer by operation of law; (C)
an execution of judgment against, or an acquisition of record or beneficial ownership, by a lender
or creditor; (D) a Transfer pursuant to any decree of divorce, dissolution or separate maintenance,
any property settlement, any separation agreement or any other agreement with a spouse (except for
bona fide estate planning purposes) under which any Shares are Transferred or awarded to the spouse
of the transferor or are required to be sold; or (E) a Transfer resulting from the filing by the
transferor of a petition for relief, or the filing of an involuntary petition against the
transferor, under the bankruptcy laws of the United States or of any other nation.

 

 

     (t) “ISO” shall mean an incentive stock option described in Section 422(b) of the Code.

     (u) “Nonstatutory Option” shall mean a stock option not described in Sections 422(b) or 423(b)
of the Code.

     (v) “Offered Shares” shall mean the Shares that are being offered to an Optionee, pursuant to
the Option granted to the Optionee, which may be acquired by the Optionee upon exercise of the
Option, pursuant to the terms and conditions of this Plan and the Stock Option Agreement evidencing
such Option, and includes such other securities and other property as may be distributed to the
holders of Shares, as an adjustment made upon a Recapitalization Event by the Board of Directors
pursuant to Section 6 of this Plan.

     (w) “Option” shall mean an ISO or Nonstatutory Option granted under this Plan and entitling
the holder to purchase Shares.

     (x) “Optionee” shall mean an individual who holds an Option.

     (y) “Outside Director” shall mean a member of the Board of Directors who is not an Employee.

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

     (aa) “Plan” shall mean this Glu Mobile Inc. 2001 Stock Option Plan.

     (bb) “Plan Administrator” shall mean the Board of Directors or an authorized Committee thereof
appointed pursuant to Section 2(a) of this Plan.

     (cc) “Recapitalization Event” shall mean an increase or decrease in the number of issued and
outstanding Shares resulting from a share split, reverse share split, share dividend, combination,
adjustment in conversion ratio, recapitalization or reclassification of the Shares, the declaration
of an extraordinary dividend, or any other increase or decrease in the number of issued and
outstanding Shares effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not be deemed
to have been “effected without receipt of consideration.”

     (dd) “Securities Act” shall mean the Securities Act of 1933, as amended.

     (ee) “Service” shall mean bona fide service to the Company (or any Subsidiary of the Company)
as an Employee, Outside Director or Consultant. For all purposes under this Plan, Service shall be
deemed to continue notwithstanding an individual’s change in status among the positions of
Employee, Outside Director and Consultant.

     (ff) “Service Start Date” shall mean the date on which an Optionee’s Service commences.

 

 

     (gg) “Service Termination Date” shall mean the last date on which an Optionee provides any
Service, as determined by the Plan Administrator in its discretion.

     (hh) “Share” shall mean a fully-paid and non-assessable share of the common stock of the
Company.

     (ii) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee
that contains the terms, conditions and restrictions pertaining to the Optionee’s Option.

     (jj) “Subsidiary” shall mean a “subsidiary corporation,” whether now or hereafter existing, as
defined in Section 424(f) of the Code, or any successor provision.

     (kk) “Successor Entity” shall have the meaning as set forth in Section 10(e) above.

     (ll) “Transfer” or “Transferred,” includes without limitation, a voluntary or involuntary
sale, loan, short-sale, assignment, transfer, conveyance, pledge, hypothecation, encumbrance,
disposal, loan, gift, execution, attachment or levy, including any Involuntary Transfer, Donative
Transfer or transfer by will or under the laws of descent and distribution.

     (mm) “Vesting” or “Vested” shall mean the lapse of the Company Repurchase Option as set forth
in Section 5(f) above,

     (nn) “Vesting Start Date” shall mean the date that is the earlier of: (a) the Option Grant
Date; and the Service Start Date.

 

 

THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE
THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER
APPLICABLE STATE LAW, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS
COUNSEL, THAT SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.

Stock Option Agreement

under the

sorrent, inc.

2001 Stock Option Plan

SECTION 1. GRANT OF OPTION.

     On the terms and conditions set forth in this Agreement, together with the Notice of Stock
Option Grant attached hereto as Exhibit A (the “Grant Notice”), the Company grants to the
Optionee as of the Grant Date the option to purchase at the Exercise Price the number of Offered
Shares, all as set forth in the Grant Notice. This Option is granted pursuant to the Sorrent, Inc.
2001 Stock Option Plan (the “Plan”), a copy of which the Optionee acknowledges having received,
reviewed and understood. The provisions of the Plan form a part of this Agreement. Capitalized
terms have the meanings set forth in the Plan, except as set forth in Section 14 of this Agreement.

SECTION 2. RIGHT TO EXERCISE.

     This Option may be exercised to purchase Offered Shares at any time before its expiration, but
only to the extent that this Option has become exercisable, in whole or in part, pursuant to the
exercise schedule set forth in the Grant Notice (or otherwise became exercisable as provided in the
Plan). Notwithstanding any other provision of this Agreement, no portion of this Option shall be
exercisable at any time prior to the approval of the Plan by the Company’s shareholders.

SECTION 3. NO TRANSFER OR ASSIGNMENT OF OPTION.

     Except as otherwise expressly provided in this Agreement or the Plan, this Option and the
rights and privileges conferred hereby shall not be Transferred, except upon the death of the
Optionee by will or under the laws of descent or distribution. As a condition to any Transfer of
this Option under this Agreement or the Plan, the transferee of this Option shall agree in writing
on a form prescribed by the Company to be bound by all provisions of this Agreement.

-1-

 

SECTION 4. EXERCISE PROCEDURES.

     (a) Notice of Exercise. The Optionee or (the Optionee’s representative if the Optionee is
deceased or incapacitated) may exercise this Option by giving written notice to the Company in the
form attached hereto as Exhibit B (the “Notice of Exercise”) in the manner provided as set
forth in Section 13(c). The Notice of Exercise shall specify the election to exercise this Option,
the number of Shares for which it is being exercised and the form of payment. The Notice of
Exercise shall be signed by the person exercising this Option. In the event that this Option is
being exercised by the representative of the Optionee, the notice shall be accompanied by proof
(satisfactory to the Company) of the representative’s right to exercise this Option. The Optionee
or the Optionee’s representative shall deliver to the Company, at the time of giving the notice,
payment in a form permissible under Section 5 for the full amount of the Purchase Price and any
other payment as required under this Agreement.

     (b) Issuance of Shares. Within 28 days after receipt of a proper Notice of Exercise, the
Company shall cause to be issued certificate(s) for the Option Shares as to which this Option has
been exercised, registered in the name of the person exercising this Option (or in the names of
such person and his or her spouse as community property or as joint tenants with right of
survivorship as may be set forth in the Notice of Exercise).

     (c) Escrow. For purposes of facilitating the enforcement of the restrictions on Transfer and
the Right of First Refusal with respect to Option Shares as set forth in the Plan and this
Agreement, upon exercise of this Option: (1) the Company shall deliver the certificate(s) for such
Option Shares to the Secretary of the Company (or his or her designee), and (2) the original Holder
(together with his or her spouse) shall execute such stock power (if required for Transfer, in
blank) with respect to such Option Shares (the “Stock Transfer Document”) to hold such
certificate(s) and Stock Transfer Document(s) in escrow and to take all such actions and to
effectuate all such Transfers and/or releases as are in accordance with the terms of the Plan and
this Agreement. Any new, substituted or additional Option Shares issued or issuable upon a
Recapitalization Event pursuant to Section 11 shall immediately be delivered to the Secretary of
the Company (or his or her designee) to be held in escrow. At any time in its reasonable
discretion, if the Company so requests, a Holder (together with his or her spouse, if any) shall
execute such additional Stock Transfer Document(s) with respect to such Option Shares held, or to
be held, in escrow pursuant to this Section 4(c), and deliver the same to the Secretary of the
Company (or his or her designee). All regular cash dividends on such Option Shares shall be paid
directly to the Holder and shall not be held in escrow. The Option Shares held in escrow hereunder
shall be (i) surrendered to the Company for repurchase and cancellation upon and to the extent of
the Company’s exercise of the Right of First Refusal or (ii) released to the Holder (together with
related Stock Transfer Document(s)) upon the Holder’s request to the extent the Option Shares are
no longer subject to the Right of First Refusal. The Optionee acknowledges that the Secretary of
the Company (or his or her designee) is so appointed as the escrow holder with the foregoing
authorities as a material inducement to the grant of this Option, that the appointment is coupled
with an interest, and that it accordingly will be irrevocable. The escrow holder will not be
liable to the Optionee or any other party for any actions or omissions unless the escrow holder is
grossly negligent relative thereto. The escrow holder may rely upon any letter, notice or other
document executed by any signature purported to be genuine.

-2-

 

     (d) Withholding Taxes. In the event that the Company determines that it is required to
withhold any tax as a result of the exercise of this Option, the Optionee, as a condition to the
exercise of this Option, shall make arrangements satisfactory to the Company to enable it to
satisfy all withholding requirements. The Optionee shall also make arrangements satisfactory to
the Company to enable it to satisfy any withholding requirements that may arise in connection with
the Transfer of Option Shares.

SECTION 5. PAYMENT FOR SHARES.

     (a) Cash. All or part of the Purchase Price may be paid in cash or cash equivalents.

     (b) Surrender of Shares. With the consent of the Plan Administrator, all or part of the
Purchase Price may be paid by the surrender of Shares that are already owned by the Optionee. Such
Shares shall be surrendered to the Company in good form for transfer and shall be valued at their
Fair Market Value (as determined by the Plan Administrator) on the date of exercise of this Option
which, together with any amount paid in another form permissible under this Section 5, is equal to
the Purchase Price.

SECTION 6. TERM AND EXPIRATION.

     Subject to the provisions in the Plan regarding an earlier expiration of this Option, this
Option shall expire no later than the expiration date set forth in the Grant Notice. The Option
shall in no event expire later than 10 years (or 5 years if the Optionee is a 10% Holder) after the
Grant Date.

SECTION 7. NO COMPANY REPURCHASE OPTION.

Notwithstanding any other repurchase rights that the Company may have with respect to any Shares,
the Option Shares shall not be subject to the Company Repurchase Option.

SECTION 8. RIGHT OF FIRST REFUSAL.

     (a) Right of First Refusal. In the event that either (i) the Holder proposes to Transfer any
Option Shares, or any interest in such Option Shares for value (a “Voluntary Transfer”), or (ii)
the Holder proposes a Donative Transfer of Option Shares, or any interest therein, or (iii) an
Involuntary Transfer of Option Shares, or any interest therein, occurs, the Company shall have a
right (but not an obligation) to repurchase all or a portion of such Option Shares (the “Right of
First Refusal”) in the manner and on such terms as are set forth in this Section 8. The Company’s
rights under this Section 8 shall be freely assignable, in whole or in part, and for the purposes
of this Section 8, “Company” shall mean the Company (as defined in the Plan) and any assignee of
the Company’s Right of First Refusal.

     (b) Notice of Transfer. Prior to a Voluntary Transfer or a Donative Transfer, the Holder shall
give a written Transfer Notice to the Company describing fully the terms of the proposed Transfer,
including the number of Option Shares proposed to be Transferred, the proposed Transfer price and
consideration (except in the case of a Donative Transfer), the name and address of the proposed
Transferee and proof satisfactory to the Company that the proposed Transfer will not violate any
applicable state, federal or foreign securities laws. The Transfer

-3-

 

Notice shall be signed both by the Holder and by the proposed Transferee and include a
statement by both parties stating that they intend to complete the Transfer on the terms described
in the Transfer Notice and that the Transferee agrees to be bound by all provisions of this
Agreement.

     (c) Voluntary Transfer. In connection with a proposed Voluntary Transfer, the Company shall
have the right to purchase all, and not less than all, of the Option Shares on the terms of the
proposal described in the Transfer Notice by delivery of a Notice of Exercise of the Right of First
Refusal to the Holder within 30 days after the date when the Transfer Notice was received by the
Company. If the Company fails to deliver a Notice of Exercise of the Right of First Refusal within
such 30 day period, the Holder may, not later than 90 days following receipt of the Transfer Notice
by the Company, conclude a Transfer of the Option Shares subject to the Transfer Notice on the
terms and conditions described in the Transfer Notice, provided that any such Transfer is made in
compliance with applicable state, federal and foreign securities laws and not in violation of any
other contractual restrictions to which the Holder is bound. Any proposed Transfer on terms and
conditions more favorable to the Transferee from those described in the Transfer Notice, as well as
any subsequent proposed Transfer by the Holder, shall again be subject to the Right of First
Refusal and shall require compliance with the procedures described in this Section 8. If the
Company exercises its Right of First Refusal, the Holder and the Company shall consummate the
Transfer of the Option Shares on the terms set forth in the Transfer Notice within 60 days after
the date when the Company received the Transfer Notice (or within such longer period as may have
been specified in the Transfer Notice). Payment shall be made in cash or cash equivalents, or such
other form or forms of legal consideration as may be acceptable to the Plan Administrator, in its
discretion, in the amount equal to the value of the consideration described in the Transfer Notice.

     (d) Involuntary and Donative Transfers. Upon the completion of an Involuntary Transfer or a
Donative Transfer of Option Shares, or any interest therein, the Holder shall give a notice (the
“Completed Transfer Notice”) to the Company signed by the Holder, which shall: (i) in the event of
an Involuntary Transfer, describe fully the facts and circumstances of the Involuntary Transfer,
including the number of Option Shares Transferred, the Transfer price and consideration, if any,
the name and address of the Transferee and proof satisfactory to the Company that the Involuntary
Transfer does not violate any applicable state, federal or foreign securities laws, or (ii) in the
event of a Donative Transfer, certify that the Donative Transfer has occurred in accordance with
the terms of the Transfer Notice described in Section 8(b) above. The Company shall have the right
to purchase all, and not less than all, of the Option Shares described in the Completed Transfer
Notice by delivery of a Notice of Exercise of the Right of First Refusal to the Transferee within
30 days after the date when the Completed Transfer Notice was received by the Company, provided
that the Company shall pay the Transferee a purchase price for the Option Shares in the amount
equal to the Fair Market Value of those Option Shares as of the effective date of such Involuntary
Transfer or Donative Transfer.

     (e) Nonrecognition of Transfer. The Company will have no obligation to record the Transfer of
any Option Shares on the Company’s books and records to the extent such Transfer does not comply
with the requirements of this Section 8.

-4-

 

     (f) Termination of Right of First Refusal. Any other provision of this Section 8
notwithstanding, if at any time the Option Shares become readily tradable following an Initial
Public Offering, the Company shall have no Right of First Refusal, and the Holder shall have no
obligation to comply with the procedures described in this Section 8.

     (g) Permitted Transfers. Neither the Optionee nor any subsequent Holder shall Transfer any
Option Shares except as set forth in this Section 8. Notwithstanding the foregoing, this Section 8
shall not apply to a Permitted Transfer, provided that in the event of a Permitted Transfer, and as
a condition to registering such Option Shares in the name of such Transferee in the Company’s stock
register or similar records, the Transferee shall agree in writing on a form prescribed by the
Company to be bound by all provisions of this Agreement. If the Holder Transfers any Option Shares
acquired under this Agreement, either under this Section 8(g) or after the Company has failed to
exercise the Right of First Refusal, then this Section 8 shall apply to the Transferee to the same
extent as to the Holder.

SECTION 9. COMPLIANCE WITH LAW

     Shares may be issued upon the exercise of this Option only after and on the condition that
there has been compliance with the Securities Act and all other applicable federal, state and
foreign securities laws. The Company will not be required to list, register or qualify such Shares
upon any securities exchange, under any applicable federal, state or foreign law or regulation, or
with the Securities and Exchange Commission or any state agency, or secure the consent or approval
of any governmental regulatory authority, except that if at any time the Board of Directors
determines in its discretion, that such listing, registration or qualification of such Shares, or
any consent or approval, is necessary or desirable as a condition of or in connection with the
exercise of this Option and the purchase of the Shares issued upon exercise hereof, then this
Option may not be exercised, in whole or in part, unless and until such listing, registration,
qualification, consent or approval is effected or obtained free of any conditions that are not
acceptable to the Board of Directors, in its discretion.

SECTION 10. ADDITIONAL RESTRICTIONS ON TRANSFER.

     (a) Securities Law Restrictions. Regardless of whether the offering and sale of Shares under
the Plan have been registered under the Securities Act or have been registered or qualified under
the securities laws of any state, the Company at its discretion may impose restrictions upon the
Transfer of such Shares (including the placement of appropriate legends on stock certificates or
the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions
are necessary or desirable in order to achieve compliance with the Securities Act, the securities
laws of any state or any other applicable law.

     (b) Market Stand-Off. In connection with any underwritten listing of the shares of capital
stock of the Company on any established stock exchange or national market system pursuant to an
effective registration statement filed under the Securities Act or any similar laws in a foreign
jurisdiction, including the Company’s Initial Public Offering, the Holder shall not directly or
indirectly Transfer any Option Shares or enter into any contract for the Transfer of any Option
Shares, or agree to engage in any of the foregoing transactions with respect to any Option Shares
without the prior written consent of the Company or its underwriters. Such restriction (the
“Market Stand-Off”) shall be in effect for such period of time following the date

-5-

 

of the final prospectus for the offering as may be requested by the Company or such
underwriters. The Market Stand-Off shall in any event terminate two (2) years after the date of
the Company’s Initial Public Offering. In order to enforce the Market Stand-Off, the Company may
impose stop-transfer instructions with respect to the Option Shares until the end of the applicable
stand-off period. The Company’s underwriters shall be beneficiaries of the agreement set forth in
this Section 10(b). This Section 10(b) shall not apply to the equity securities registered in an
Initial Public Offering.

     (c) Investment Intent. By accepting this Option and/or the Option Shares, the Optionee will
be deemed to represent, warrant and agree that, unless a registration statement is in effect with
respect to the offer and sale of such Option Shares, (i) neither this Option or the Option Shares
will be freely tradable and must be held indefinitely unless such Option and such Option Shares are
either registered under the Securities Act or an exemption from such registration is available;
(ii) the Company is under no obligation to register the Option or the Option Shares, (iii) upon
exercise of the Option, the Optionee will purchase any such Option Shares for his or her own
account and not with a view to distribution within the meaning of the Securities Act, other than as
may be effected in compliance with the Securities Act and the rules and regulations promulgated
thereunder; (iv) no one else will have any beneficial interest in the Option Shares; (v) the
Optionee has no present intention of Transferring the Option or Option Shares at any particular
time, and (vi) neither this Option nor the Option Shares have been registered or qualified under
the securities laws of any state and may only be offered and sold pursuant to an exception from the
registration or qualification under applicable state securities laws.

     (d) Legends. All certificates evidencing Option Shares shall bear the following legend:

“THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR
IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE
PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY
CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES. THE
SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT
TO THE HOLDER HEREOF WITHOUT CHARGE.”

     All certificates evidencing Option Shares shall bear the following legend (and such other
restrictive legends as are required or deemed advisable under the provisions of any applicable law)
unless such legend is not required in the opinion of the Company and its counsel to comply with the
requirements of applicable securities laws:

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER APPLICABLE STATE LAW, AND MAY NOT
BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS

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COUNSEL, THAT SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.”

     (e) Removal of Legends. If, in the opinion of the Company and its counsel, any legend placed
on a stock certificate representing Option Shares sold under this Agreement is no longer required,
the Holder shall be entitled to exchange such certificate for a certificate representing the same
number of Option Shares but without such legend.

     (f) Administration. Any determination by the Company and its counsel in connection with any
of the matters set forth in this Section 10 shall be conclusive and binding on the Optionee and all
other Holders or Transferees, or any other party claiming to derive rights by or through the
Optionee.

SECTION 11. RECAPITALIZATION EVENTS.

     In the event of any Recapitalization Event, the terms of this Option (including, without
limitation, the number and kind of Option Shares and the Exercise Price) shall be adjusted as set
forth in Section 6(a) of the Plan. Appropriate adjustments to reflect the distribution of such
securities or property shall be made to the number and kind of the Option Shares that are subject
to the Right of First Refusal.

SECTION 12. ISO PROVISIONS.

     (a) $100,000 Limitation. If this Option is designated as an ISO in the Grant Notice, then to
the extent (and only to the extent) that this Option otherwise would not be treated as an ISO by
reason of the $100,000 annual limitation under Section 422(d) of the Code, such portion of the
Option will be treated as a Nonstatutory Option.

     (b) Notice Concerning ISO Treatment. If this Option is designated as an ISO in the Grant
Notice, the Optionee acknowledges that this Option shall cease to qualify for favorable tax
treatment as an ISO to the extent it is exercised (i) more than three months after the date the
Optionee ceases to be an Employee for any reason other than death or Disability, (ii) more than 12
months after the date the Optionee ceases to be an Employee by reason of such Disability or (iii)
after the Optionee has been on a leave of absence from the Company for more than 90 days, unless
the Optionee’s reemployment rights with the Company are guaranteed by law or by contract.

SECTION 13. MISCELLANEOUS PROVISIONS.

     (a) Rights as a Shareholder. Neither the Optionee nor the Optionee’s representative shall
have any rights as a shareholder of the Company with respect to any Option Shares subject to this
Option until the Optionee or the Optionee’s representative becomes entitled to receive such Option
Shares by delivering a Notice of Exercise and paying the Purchase Price pursuant to Sections 4 and
5 above. If the Company exercises the Right of First Refusal in accordance with the terms and
conditions of Section 8 of this Agreement, then the Holder shall no longer have any rights as a
holder of such Option Shares purchased by the Company (other than the right to receive payment of
the consideration as set forth in Section 8). Such Option Shares shall be deemed to have been
repurchased in accordance with the applicable provisions hereof, whether

-7-

 

or not the certificate(s) or Stock Transfer Document(s) therefor have been delivered as
required by this Agreement.

     (b) No Retention Rights. Nothing in this Agreement or in the Plan shall confer upon the
Optionee any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Company or of the Optionee, which rights are hereby
expressly reserved by each, to terminate his or her Service at any time and for any reason, with or
without cause.

     (c) Notice. Any notice required by the terms of this Agreement shall be given in writing and
shall be deemed effective upon personal delivery or upon deposit with the United States Postal
Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed
to the Company at its principal executive office and to the Optionee at the address that he or she
most recently provided to the Company.

     (d) Specific Performance. Under those circumstances in which the Company chooses to timely
exercise its rights to purchase any Option Shares as provided herein, the Company will be entitled
to receive such Option Shares in specie in order to have the same available for future issuance
without dilution of the holdings of other shareholders of the Company. In consideration for this
Option and the Option Shares, the Optionee acknowledges and agrees that money damages will be
inadequate to compensate the Company and its shareholders if such a purchase is not completed as
contemplated hereunder or if the Optionee violates the confidentiality provisions in the Plan or
this Agreement, and that the Company will, in such case, be entitled to a decree of specific
performance of the terms hereof or to an injunction restraining such Optionee (or upon death such
Optionee’s personal representative) from violating this Plan or Agreement, in addition to any other
remedies that may be available to the Company at law or in equity.

     (e) Entire Agreement. This Agreement, the Grant Notice and the Plan, together with any
exhibits and schedules attached thereto, constitute the entire contract between the parties hereto
with regard to the subject matter hereof. They supersede any other agreements, representations or
understandings (whether oral or written and whether express or implied) which relate to the subject
matter hereof.

     (f) Choice of Law. The internal laws of the State of California (irrespective of its choice
of law principles) will govern the validity of this Agreement, the construction of its terms and
the interpretation of the rights and duties of the parties hereunder. Any party may seek to
enforce its rights under this Agreement in any court of competent jurisdiction located within the
judicial district in which the Company has a regular place of business.

     (g) Confidentiality. Pursuant to Section 7(b) of the Plan, the Company may provide the
Optionee with certain financial and other proprietary information of the Company. By virtue of
entering into this Agreement, the Optionee agrees (and to cause any investment advisers to whom the
Optionee proposes to make such information available to agree) to keep such information
confidential and not to use, disclose or copy such information for any purpose whatsoever other
than determining whether to exercise this Option. The Company deems such information to be the
valuable trade secrets of the Company, and in the event of any wrongful use, disclosure or other
breach of the obligation to maintain the confidentiality of such financial

-8-

 

and other proprietary information, the Company may seek to enforce all of its available legal
and equitable rights and remedies, and may notify local law enforcement officials that a criminal
misappropriation of the Company’s trade secrets has taken place.

SECTION 14. DEFINITIONS.

     (a) “Agreement” shall mean this Share Option Agreement between the Company and the undersigned
Optionee, together with the exhibits and attachments hereto, including without limitation the Grant
Notice between the Company and the undersigned Optionee.

     (b) “Completed Transfer Notice” shall have the meaning as set forth in Section 8(d) above.

     (c) “Disability” shall mean total and permanent disability within the meaning of Section
22(e)(3) of the Code.

     (d) “Grant Notice” shall have the meaning as set forth in Section 1 above.

     (e) “Holder” shall mean the registered holder of any Option Shares originally issued pursuant
to the exercise of this Option or in connection with any Recapitalization Event, including any
Transferee.

     (f) “Market Stand-Off” shall have the meaning as set forth in Section 10(b) above.

     (g) “Notice of Exercise” shall have the meaning as set forth in Section 4(a) above.

     (h) “Notice of Exercise of the Right of First Refusal” shall have the meaning as set forth in
Section 8(c) above.

     (i) “Optionee” for purposes of this Agreement shall mean the party named as such in this
Agreement and the Grant Notice (or the permitted transferee of this Option pursuant to Section 3
above).

     (j) “Option Shares” shall mean any Offered Shares originally issued upon the exercise of this
Option, together with any additional Shares or other securities or rights to acquire Shares or
other securities, issued or issuable by the Company in respect of such originally issued Offered
Shares, or subsequently issued Shares, or other securities, resulting from or arising out of a
Recapitalization Event.

     (k) “Permitted Transfer” shall mean (i) upon the death of a Holder, a Transfer by will or
under the laws of descent and distribution; or (ii) a Transfer by a Holder to his or her ancestors,
descendants or spouse (other than pursuant to a decree of divorce, dissolution or separate
maintenance, a property settlement, or a separation agreement or any similar agreement or
arrangement with a spouse, except for bona fide estate planning purposes), or to a trust,
partnership, limited liability company, custodianship or other fiduciary account for the benefit of
the Holder and/or such ancestors, descendants or spouse, including any Transfer in the form of a
distribution from any such trust, partnership, limited liability company, custodianship or other
fiduciary account to any of the foregoing permitted beneficial owners or beneficiaries thereof.

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     (l) “Purchase Price” shall mean the Exercise Price multiplied by the number of Shares with
respect to which this Option is being exercised.

     (m) “Right of First Refusal” shall have the meaning as set forth in Section 8(a) of this
Agreement.

     (n) “Share Transfer Documents” shall have the meaning as set forth in Section 4(c) above.

     (o) “Transferee” shall mean any party to whom the Optionee, or any subsequent Holder, directly
or indirectly, Transfers any Option Shares originally acquired upon the exercise of this Option or
subsequently acquired in connection with any Recapitalization Event.

     (p) “Transfer Notice” shall mean the notice of a proposed Transfer of Shares described in
Section 8(b) of this Agreement.

     (q) “Voluntary Transfer” shall have the meaning as set forth in Section 8(a) of this
Agreement.

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By your signature and the signature of the Company’s representative below, you and the Company
agree that this Option is granted under and governed by the terms and conditions of this Agreement
(including the attached Grant Notice) and the Plan.

	 	 	 	 	 	 	 
	OPTIONEE	 	SORRENT, INC.
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:
	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	 

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THE OPTION GRANTED AND GOVERNED BY THIS AMENDMENT AND THE SHARES ISSUABLE UPON THE EXERCISE
THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER
APPLICABLE STATE LAW, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS
COUNSEL, THAT SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.

Amended And Restated

Stock Option Agreement

under the

sorrent, inc.

2001 Stock Option Plan

     THIS AMENDED AND RESTATED 2001 STOCK OPTION PLAN STOCK OPTION AGREEMENT (this
“Amendment”) is made and entered into as of
                    , 200___ by and between SORRENT, INC., a
California corporation (the “Company”), and                                          (“Optionee”).

W I T N E S S E T H

     WHEREAS, the Company and Optionee are each a party to the Stock Option Agreement dated as of
                    , 200___, (the “Agreement”) under the 2001 Stock Option Plan (the “Plan”) and the
Notice of Stock Option Grant attached as Exhibit A thereto (the “Grant Notice” and,
together with the Agreement, the “Original Option Agreement”).

     WHEREAS, the Company and Optionee have agreed to amend the Original Option Agreement to
provide Optionee the opportunity to purchase unvested shares of the Company’s Common Stock as set
forth in this Amendment.

     NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein and for
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto agree to amend and restated the Original Option Agreement in its entirety as
follows:

SECTION 1. GRANT OF OPTION.

     On the terms and conditions set forth in this Amendment, together with the Notice of Stock
Option Grant attached hereto as Exhibit A (the “Grant Notice”), the Company grants to the
Optionee as of the Grant Date the option to purchase at the Exercise Price the number of Offered
Shares, all as set forth in the Grant Notice. This Option is granted pursuant to the Plan, a copy
of which the Optionee acknowledges having received, reviewed and understood. The

-1-

 

provisions of the Plan form a part of this Amendment. Capitalized terms have the meanings set
forth in the Plan, except as set forth in Section 14 of this Amendment.

SECTION 2. RIGHT TO EXERCISE.

     This Option may be exercised to purchase Offered Shares at any time before its expiration.
Notwithstanding any other provision of this Amendment, no portion of this Option shall be
exercisable at any time prior to the approval of the Plan by the Company’s shareholders.

SECTION 3. NO TRANSFER OR ASSIGNMENT OF OPTION.

     Except as otherwise expressly provided in this Amendment or the Plan, this Option and the
rights and privileges conferred hereby shall not be Transferred, except upon the death of the
Optionee by will or under the laws of descent or distribution. As a condition to any Transfer of
this Option under this Amendment or the Plan, the transferee of this Option shall agree in writing
on a form prescribed by the Company to be bound by all provisions of this Amendment.

SECTION 4. EXERCISE PROCEDURES.

     (a) Notice of Exercise. The Optionee or (the Optionee’s representative if the Optionee is
deceased or incapacitated) may exercise this Option by giving written notice to the Company in the
form attached hereto as Exhibit B (the “Notice of Exercise”) in the manner provided as set
forth in Section 13(c). The Notice of Exercise shall specify the election to exercise this Option,
the number of Shares for which it is being exercised and the form of payment. The Notice of
Exercise shall be signed by the person exercising this Option. In the event that this Option is
being exercised by the representative of the Optionee, the notice shall be accompanied by proof
(satisfactory to the Company) of the representative’s right to exercise this Option. The Optionee
or the Optionee’s representative shall deliver to the Company, at the time of giving the notice,
payment in a form permissible under Section 5 for the full amount of the Purchase Price and any
other payment as required under this Amendment.

     (b) Issuance of Shares. Within 28 days after receipt of a proper Notice of Exercise, the
Company shall cause to be issued certificate(s) for the Option Shares as to which this Option has
been exercised, registered in the name of the person exercising this Option (or in the names of
such person and his or her spouse as community property or as joint tenants with right of
survivorship as may be set forth in the Notice of Exercise).

     (c) Escrow. For purposes of facilitating the enforcement of the restrictions on Transfer and
the Company Repurchase Option or Right of First Refusal with respect to Option Shares as set forth
in the Plan and this Amendment, upon exercise of this Option: (1) the Company shall deliver the
certificate(s) for such Option Shares to the Secretary of the Company (or his or her designee), and
(2) the original Holder (together with his or her spouse) shall execute such stock power (if
required for Transfer, in blank) with respect to such Option Shares (the “Stock Transfer Document”)
to hold such certificate(s) and Stock Transfer Document(s) in escrow and to take all such actions
and to effectuate all such Transfers and/or releases as are in accordance with the terms of the
Plan and this Amendment. Any new, substituted or additional Option Shares issued or issuable upon
a Recapitalization Event pursuant to Section 11 shall immediately be delivered to the Secretary of
the Company (or his or her designee) to be held in escrow. At

 

 

any time in its reasonable
discretion, if the Company so requests, a Holder (together with his or
her spouse, if any) shall execute such additional Stock Transfer Document(s) with respect to
such Option Shares held, or to be held, in escrow pursuant to this Section 4(c), and deliver the
same to the Secretary of the Company (or his or her designee). All regular cash dividends on such
Option Shares shall be paid directly to the Holder and shall not be held in escrow. The Option
Shares held in escrow hereunder shall be (i) surrendered to the Company for repurchase and
cancellation upon and to the extent of the Company’s exercise of the Company Repurchase Option or
Right of First Refusal or (ii) released to the Holder (together with related Stock Transfer
Document(s)) upon the Holder’s request to the extent the Option Shares are no longer subject to
either the Company Repurchase Option or the Right of First Refusal. The Optionee acknowledges that
the Secretary of the Company (or his or her designee) is so appointed as the escrow holder with the
foregoing authorities as a material inducement to the grant of this Option, that the appointment is
coupled with an interest, and that it accordingly will be irrevocable. The escrow holder will not
be liable to the Optionee or any other party for any actions or omissions unless the escrow holder
is grossly negligent relative thereto. The escrow holder may rely upon any letter, notice or other
document executed by any signature purported to be genuine.

     (d) Withholding Taxes. In the event that the Company determines that it is required to
withhold any tax as a result of the exercise of this Option, the Optionee, as a condition to the
exercise of this Option, shall make arrangements satisfactory to the Company to enable it to
satisfy all withholding requirements. The Optionee shall also make arrangements satisfactory to
the Company to enable it to satisfy any withholding requirements that may arise in connection with
the Vesting or Transfer of Option Shares.

SECTION 5. PAYMENT FOR SHARES.

     (a) Cash. All or part of the Purchase Price may be paid in cash or cash equivalents.

     (b) Surrender of Shares. With the consent of the Plan Administrator, all or part of the
Purchase Price may be paid by the surrender of Shares that are already owned by the Optionee. Such
Shares shall be surrendered to the Company in good form for transfer and shall be valued at their
Fair Market Value (as determined by the Plan Administrator) on the date of exercise of this Option
which, together with any amount paid in another form permissible under this Section 5, is equal to
the Purchase Price.

SECTION 6. TERM AND EXPIRATION.

     Subject to the provisions in the Plan regarding an earlier expiration of this Option, this
Option shall expire no later than the expiration date set forth in the Grant Notice. The Option
shall in no event expire later than 10 years (or 5 years if the Optionee is a 10% Holder) after the
Grant Date.

SECTION 7. COMPANY REPURCHASE OPTION.

     (a) Company Repurchase Option. In addition to any other repurchase right that the Company may
have with respect to any Shares, the Option Shares shall be subject to repurchase by the Company
pursuant to the Company Repurchase Option. The Company may exercise the Company Repurchase Option
to repurchase all Option Shares that have not Vested as of the date

 

 

the Company Repurchase Option
is exercised. The Company Repurchase Option shall be exercisable only within the period ending 90
days after the later of: (i) the Optionee’s Service
Termination Date, or (ii) if applicable, the last date that any Option Shares are purchased
upon the exercise of any portion of this Option. If the Company exercises the Company Repurchase
Option, it shall pay to the Holder a repurchase price per share equal to the Exercise Price (the
“Repurchase Price”), subject to any adjustment as provided in Section 11.

     (b) Exercise of Company Repurchase Option. The Company Repurchase Option shall be exercisable
only by written notice delivered to the Holder of the Option Shares prior to the expiration of the
period specified in Section 7(a). The notice shall set forth (a) the number of Option Shares to be
repurchased (and if any securities or other property other than Shares are being repurchased, a
reasonably detailed description thereof), (b) the Repurchase Price, both in aggregate amount and
the form of consideration thereof, and (c) the date on which the repurchase is to be effected. The
certificate(s) representing the Option Shares to be repurchased shall, prior to the close of
business on the date specified for the repurchase, be delivered to the Company from escrow and
properly endorsed (if necessary). The Company shall, concurrently with the receipt of such
certificate(s), pay to the Holder the Repurchase Price determined according to Section 7(a).
Payment shall be made in cash or cash equivalents, or the cancellation of purchase money
indebtedness for the Option Shares, in the discretion of the Plan Administrator. The Company
Repurchase Option shall be assignable as provided in Section 5(f) of the Plan, and for the purposes
of this Section 7, “Company” shall mean the Company (as defined in the Plan) and any assignee of
the Company’s Company Repurchase Option.

     (c) Certain Tax Matters. To the extent the Optionee exercises this Option at a time that the
Offered Shares are subject to the Company Repurchase Option, the Optionee acknowledges that a
variety of factors may affect the income tax liability of the Optionee or any subsequent Holder of
the Option Shares, including the following: As a general rule, under Section 83 of the Code, the
Holder of the Offered Shares will be taxed at ordinary income tax rates on the Fair Market Value of
the Offered Shares, less their Exercise Price, as of the date that any restrictions on transfer and
risks of forfeiture with respect to any of the Offered Shares lapse. Under this Amendment, the
Company Repurchase Option constitutes such a restriction on transfer and risk of forfeiture.
Therefore, as of the date that the Company Repurchase Option lapses with respect to any of the
Offered Shares (the “Repurchase Option Lapse Date”), the Holder may become subject to income
taxation on the amount of any appreciation in the value of such Shares. However, Section 83(b) of
the Code permits the Optionee to file an election with the Internal Revenue Service within 30 days
of the date such Offered Shares are purchased from the Company, whereby the Optionee elects to be
taxed on the Fair Value of the Offered Shares as of their date of purchase less the Exercise Price
paid for those Shares, rather than being taxed when the Company Repurchase Option lapses. This
means that if the Exercise Price paid for the Offered Shares is equal to the Fair Market Value of
the Offered Shares at the time of exercise and purchase, and the Offered Shares are subject to the
Company Repurchase Option, the election may be desirable in order to avoid taxation of future
appreciation at ordinary income tax rates. Optionee acknowledges that his or her failure to file
this election in a timely manner may result in recognition of ordinary taxable income by the
Optionee as of the Repurchase Option Lapse Date, in an amount equal to the appreciation (or
unrealized gain) on the Offered Shares (measured as of the Repurchase Option Lapse Date) relative
to the Exercise Price paid for such Shares. In addition, Optionee further acknowledges that if the
Offered Shares decline in value

 

 

after he or she exercises this Option, and if he or she has timely
filed an 83(b) election with respect to the Offered Shares, then any loss is only deductible as a
capital loss upon the disposition of the Offered Shares. Moreover, if the Offered Shares are later
repurchased by the
Company (or its assignee) at a loss, the Optionee will not be entitled to any tax refund or
tax deduction. OPTIONEE ACKNOWLEDGES THAT HE OR SHE IS NOT RELYING ON THE COMPANY FOR TAX ADVICE
WITH RESPECT TO THESE MATTERS, THAT IT IS HIS OR HER SOLE AND EXCLUSIVE RESPONSIBILITY TO DETERMINE
WHETHER TO FILE ANY ELECTION UNDER SECTION 83(b) OF THE CODE, AND THAT THE COMPANY SHALL BEAR NO
RESPONSIBILITY WHATSOEVER FOR THAT FILING, INCLUDING THE TIMELINESS OF THAT FILING. Optionee
agrees to promptly deliver to the Company a copy of any tax election relating to the treatment of
the Offered Shares under the Code.

SECTION 8. RIGHT OF FIRST REFUSAL.

     (a) Right of First Refusal. In the event that either (i) the Holder proposes to Transfer any
Option Shares, or any interest in such Option Shares for value (a “Voluntary Transfer”), or (ii)
the Holder proposes a Donative Transfer of Option Shares, or any interest therein, or (iii) an
Involuntary Transfer of Option Shares, or any interest therein, occurs, the Company shall have a
right (but not an obligation) to repurchase all or a portion of such Option Shares (the “Right of
First Refusal”) in the manner and on such terms as are set forth in this Section 8. The Company’s
rights under this Section 8 shall be freely assignable, in whole or in part, and for the purposes
of this Section 8, “Company” shall mean the Company (as defined in the Plan) and any assignee of
the Company’s Right of First Refusal.

     (b) Notice of Transfer. Prior to a Voluntary Transfer or a Donative Transfer, the Holder shall
give a written Transfer Notice to the Company describing fully the terms of the proposed Transfer,
including the number of Option Shares proposed to be Transferred, the proposed Transfer price and
consideration (except in the case of a Donative Transfer), the name and address of the proposed
Transferee and proof satisfactory to the Company that the proposed Transfer will not violate any
applicable state, federal or foreign securities laws. The Transfer Notice shall be signed both by
the Holder and by the proposed Transferee and include a statement by both parties stating that they
intend to complete the Transfer on the terms described in the Transfer Notice and that the
Transferee agrees to be bound by all provisions of this Amendment.

     (c) Voluntary Transfer. In connection with a proposed Voluntary Transfer, the Company shall
have the right to purchase all, and not less than all, of the Option Shares on the terms of the
proposal described in the Transfer Notice by delivery of a Notice of Exercise of the Right of First
Refusal to the Holder within 30 days after the date when the Transfer Notice was received by the
Company. If the Company fails to deliver a Notice of Exercise of the Right of First Refusal within
such 30 day period, the Holder may, not later than 90 days following receipt of the Transfer Notice
by the Company, conclude a Transfer of the Option Shares subject to the Transfer Notice on the
terms and conditions described in the Transfer Notice, provided that any such Transfer is made in
compliance with applicable state, federal and foreign securities laws and not in violation of any
other contractual restrictions to which the Holder is bound. Any proposed Transfer on terms and
conditions more favorable to the Transferee from those

 

 

described in the Transfer Notice, as well as
any subsequent proposed Transfer by the Holder, shall again be subject to the Right of First
Refusal and shall require compliance with the procedures described in this Section 8. If the
Company exercises its Right of First Refusal, the Holder and the Company shall consummate the
Transfer of the Option Shares on the terms set
forth in the Transfer Notice within 60 days after the date when the Company received the
Transfer Notice (or within such longer period as may have been specified in the Transfer Notice).
Payment shall be made in cash or cash equivalents, or such other form or forms of legal
consideration as may be acceptable to the Plan Administrator, in its discretion, in the amount
equal to the value of the consideration described in the Transfer Notice.

     (d) Involuntary and Donative Transfers. Upon the completion of an Involuntary Transfer or a
Donative Transfer of Option Shares, or any interest therein, the Holder shall give a notice (the
“Completed Transfer Notice”) to the Company signed by the Holder, which shall: (i) in the event of
an Involuntary Transfer, describe fully the facts and circumstances of the Involuntary Transfer,
including the number of Option Shares Transferred, the Transfer price and consideration, if any,
the name and address of the Transferee and proof satisfactory to the Company that the Involuntary
Transfer does not violate any applicable state, federal or foreign securities laws, or (ii) in the
event of a Donative Transfer, certify that the Donative Transfer has occurred in accordance with
the terms of the Transfer Notice described in Section 8(b) above. The Company shall have the right
to purchase all, and not less than all, of the Option Shares described in the Completed Transfer
Notice by delivery of a Notice of Exercise of the Right of First Refusal to the Transferee within
30 days after the date when the Completed Transfer Notice was received by the Company, provided
that the Company shall pay the Transferee a purchase price for the Option Shares in the amount
equal to the Fair Market Value of those Option Shares as of the effective date of such Involuntary
Transfer or Donative Transfer, except that in the case of Option Shares that have not Vested, the
purchase price shall be equal to the lesser of the actual Purchase Price that was paid upon the
exercise of this Option to acquire such Option Shares or the Fair Market Value of those Option
Shares as of the effective date of such Involuntary Transfer or Donative Transfer.

     (e) Nonrecognition of Transfer. The Company will have no obligation to record the Transfer of
any Option Shares on the Company’s books and records to the extent such Transfer does not comply
with the requirements of this Section 8.

     (f) Termination of Right of First Refusal. Any other provision of this Section 8
notwithstanding, if at any time the Option Shares become readily tradable following an Initial
Public Offering, the Company shall have no Right of First Refusal, and the Holder shall have no
obligation to comply with the procedures described in this Section 8.

     (g) Permitted Transfers. Neither the Optionee nor any subsequent Holder shall Transfer any
Option Shares except as set forth in this Section 8. Notwithstanding the foregoing, this Section 8
shall not apply to a Permitted Transfer, provided that in the event of a Permitted Transfer, and as
a condition to registering such Option Shares in the name of such Transferee in the Company’s stock
register or similar records, the Transferee shall agree in writing on a form prescribed by the
Company to be bound by all provisions of this Amendment. If the Holder Transfers any Option Shares
acquired under this Amendment, either under this Section 8(g) or

 

 

after the Company has failed to
exercise the Right of First Refusal, then this Section 8 shall apply to the Transferee to the same
extent as to the Holder.

SECTION 9. COMPLIANCE WITH LAW

     Shares may be issued upon the exercise of this Option only after and on the condition that
there has been compliance with the Securities Act and all other applicable federal, state and
foreign securities laws. The Company will not be required to list, register or qualify such
Shares upon any securities exchange, under any applicable federal, state or foreign law or
regulation, or with the Securities and Exchange Commission or any state agency, or secure the
consent or approval of any governmental regulatory authority, except that if at any time the Board
of Directors determines in its discretion, that such listing, registration or qualification of such
Shares, or any consent or approval, is necessary or desirable as a condition of or in connection
with the exercise of this Option and the purchase of the Shares issued upon exercise hereof, then
this Option may not be exercised, in whole or in part, unless and until such listing, registration,
qualification, consent or approval is effected or obtained free of any conditions that are not
acceptable to the Board of Directors, in its discretion.

SECTION 10. ADDITIONAL RESTRICTIONS ON TRANSFER.

     (a) Securities Law Restrictions. Regardless of whether the offering and sale of Shares under
the Plan have been registered under the Securities Act or have been registered or qualified under
the securities laws of any state, the Company at its discretion may impose restrictions upon the
Transfer of such Shares (including the placement of appropriate legends on stock certificates or
the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions
are necessary or desirable in order to achieve compliance with the Securities Act, the securities
laws of any state or any other applicable law.

     (b) Market Stand-Off. In connection with any underwritten listing of the shares of capital
stock of the Company on any established stock exchange or national market system pursuant to an
effective registration statement filed under the Securities Act or any similar laws in a foreign
jurisdiction, including the Company’s Initial Public Offering, the Holder shall not directly or
indirectly Transfer any Option Shares or enter into any contract for the Transfer of any Option
Shares, or agree to engage in any of the foregoing transactions with respect to any Option Shares
without the prior written consent of the Company or its underwriters. Such restriction (the
“Market Stand-Off”) shall be in effect for such period of time following the date of the final
prospectus for the offering as may be requested by the Company or such underwriters. The Market
Stand-Off shall in any event terminate two (2) years after the date of the Company’s Initial Public
Offering. In order to enforce the Market Stand-Off, the Company may impose stop-transfer
instructions with respect to the Option Shares until the end of the applicable stand-off period.
The Company’s underwriters shall be beneficiaries of the agreement set forth in this Section 10(b).
This Section 10(b) shall not apply to the equity securities registered in an Initial Public
Offering.

     (c) Investment Intent. By accepting this Option and/or the Option Shares, the Optionee will
be deemed to represent, warrant and agree that, unless a registration statement is in effect with
respect to the offer and sale of such Option Shares, (i) neither this Option or the Option Shares
will be freely tradable and must be held indefinitely unless such Option and such Option

 

 

Shares are
either registered under the Securities Act or an exemption from such registration is available;
(ii) the Company is under no obligation to register the Option or the Option Shares, (iii) upon
exercise of the Option, the Optionee will purchase any such Option Shares for his or her own
account and not with a view to distribution within the meaning of the Securities Act, other than as
may be effected in compliance with the Securities Act and the rules and regulations promulgated
thereunder; (iv) no one else will have any beneficial interest in the Option Shares; (v) the
Optionee has no present intention of Transferring the Option or Option Shares at any
particular time, and (vi) neither this Option nor the Option Shares have been registered or
qualified under the securities laws of any state and may only be offered and sold pursuant to an
exception from the registration or qualification under applicable state securities laws.

     (d) Legends. All certificates evidencing Option Shares shall bear the following legend:

“THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR
IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE
PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY
CERTAIN RIGHTS OF REPURCHASE AND RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER
OF THE SHARES. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A
COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.”

     All certificates evidencing Option Shares shall bear the following legend (and such other
restrictive legends as are required or deemed advisable under the provisions of any applicable law)
unless such legend is not required in the opinion of the Company and its counsel to comply with the
requirements of applicable securities laws:

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER APPLICABLE STATE LAW, AND MAY NOT
BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS
COUNSEL, THAT SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.”

     (e) Removal of Legends. If, in the opinion of the Company and its counsel, any legend placed
on a stock certificate representing Option Shares sold under this Amendment is no longer required,
the Holder shall be entitled to exchange such certificate for a certificate representing the same
number of Option Shares but without such legend.

     (f) Administration. Any determination by the Company and its counsel in connection with any
of the matters set forth in this Section 10 shall be conclusive and binding on the Optionee and all
other Holders or Transferees, or any other party claiming to derive rights by or through the
Optionee.

 

 

SECTION 11. RECAPITALIZATION EVENTS.

     In the event of any Recapitalization Event, the terms of this Option (including, without
limitation, the number and kind of Option Shares and the Exercise Price) shall be adjusted as set
forth in Section 6(a) of the Plan. Appropriate adjustments to reflect the distribution of such
securities or property shall be made to the number and kind of the Option Shares that are subject
to the Company Repurchase Option and Right of First Refusal. Appropriate adjustments shall
also be made to the Repurchase Price per share to be paid upon the exercise of the Company
Repurchase Option in order to reflect any change in the Company’s outstanding securities effected
without receipt of consideration therefor; provided that the aggregate Repurchase Price payable for
the Option Shares that are subject to the Company Repurchase Option shall remain the same.

SECTION 12. ISO PROVISIONS.

     (a) $100,000 Limitation. If this Option is designated as an ISO in the Grant Notice, then to
the extent (and only to the extent) that this Option otherwise would not be treated as an ISO by
reason of the $100,000 annual limitation under Section 422(d) of the Code, such portion of the
Option will be treated as a Nonstatutory Option.

     (b) Notice Concerning ISO Treatment. If this Option is designated as an ISO in the Grant
Notice, the Optionee acknowledges that this Option shall cease to qualify for favorable tax
treatment as an ISO to the extent it is exercised (i) more than three months after the date the
Optionee ceases to be an Employee for any reason other than death or Disability, (ii) more than 12
months after the date the Optionee ceases to be an Employee by reason of such Disability or (iii)
after the Optionee has been on a leave of absence from the Company for more than 90 days, unless
the Optionee’s reemployment rights with the Company are guaranteed by law or by contract.

SECTION 13. MISCELLANEOUS PROVISIONS.

     (a) Rights as a Shareholder. Neither the Optionee nor the Optionee’s representative shall
have any rights as a shareholder of the Company with respect to any Option Shares subject to this
Option until the Optionee or the Optionee’s representative becomes entitled to receive such Option
Shares by delivering a Notice of Exercise and paying the Purchase Price pursuant to Sections 4 and
5 above. If the Company exercises the Company Repurchase Option or Right of First Refusal in
accordance with the terms and conditions of Section 7 and Section 8 of this Amendment,
respectively, then the Holder shall no longer have any rights as a holder of such Option Shares
purchased by the Company (other than the right to receive payment of the consideration as set forth
in Section 7 and Section 8, respectively). Such Option Shares shall be deemed to have been
repurchased in accordance with the applicable provisions hereof, whether or not the certificate(s)
or Stock Transfer Document(s) therefor have been delivered as required by this Amendment.

     (b) No Retention Rights. Nothing in this Amendment or in the Plan shall confer upon the
Optionee any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Company or of the
Optionee, which rights are

 

 

hereby
expressly reserved by each, to terminate his or her Service at any time and for any reason, with or
without cause.

     (c) Notice. Any notice required by the terms of this Amendment shall be given in writing and
shall be deemed effective upon personal delivery or upon deposit with the United States Postal
Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed
to the Company at its principal executive office and to the Optionee at the address that he or she
most recently provided to the Company.

     (d) Specific Performance. Under those circumstances in which the Company chooses to timely
exercise its rights to purchase any Option Shares as provided herein, the Company will be entitled
to receive such Option Shares in specie in order to have the same available for future issuance
without dilution of the holdings of other shareholders of the Company. In consideration for this
Option and the Option Shares, the Optionee acknowledges and agrees that money damages will be
inadequate to compensate the Company and its shareholders if such a purchase is not completed as
contemplated hereunder or if the Optionee violates the confidentiality provisions in the Plan or
this Amendment, and that the Company will, in such case, be entitled to a decree of specific
performance of the terms hereof or to an injunction restraining such Optionee (or upon death such
Optionee’s personal representative) from violating this Plan or Amendment, in addition to any other
remedies that may be available to the Company at law or in equity.

     (e) Entire Agreement. This Amendment, the Grant Notice and the Plan, together with any
exhibits and schedules attached thereto, constitute the entire contract between the parties hereto
with regard to the subject matter hereof. They supersede and replace the Original Option Agreement
and any other agreements, representations or understandings (whether oral or written and whether
express or implied) which relate to the subject matter hereof.

     (f) Choice of Law. The internal laws of the State of California (irrespective of its choice
of law principles) will govern the validity of this Amendment, the construction of its terms and
the interpretation of the rights and duties of the parties hereunder. Any party may seek to
enforce its rights under this Amendment in any court of competent jurisdiction located within the
judicial district in which the Company has a regular place of business.

     (g) Confidentiality. Pursuant to Section 7(b) of the Plan, the Company may provide the
Optionee with certain financial and other proprietary information of the Company. By virtue of
entering into this Amendment, the Optionee agrees (and to cause any investment advisers to whom the
Optionee proposes to make such information available to agree) to keep such information
confidential and not to use, disclose or copy such information for any purpose whatsoever other
than determining whether to exercise this Option. The Company deems such information to be the
valuable trade secrets of the Company, and in the event of any wrongful use, disclosure or other
breach of the obligation to maintain the confidentiality of such financial and other proprietary
information, the Company may seek to enforce all of its available legal and equitable rights and
remedies, and may notify local law enforcement officials that a criminal misappropriation of the
Company’s trade secrets has taken place.

 

 

SECTION 14. DEFINITIONS.

     (a) “Completed Transfer Notice” shall have the meaning as set forth in Section 8(d) above.

     (b) “Disability” shall mean total and permanent disability within the meaning of Section
22(e)(3) of the Code.

     (c) “Grant Notice” shall have the meaning as set forth in Section 1 above.

     (d) “Holder” shall mean the registered holder of any Option Shares originally issued pursuant
to the exercise of this Option or in connection with any Recapitalization Event, including any
Transferee.

     (e) “Market Stand-Off” shall have the meaning as set forth in Section 10(b) above.

     (f) “Notice of Exercise” shall have the meaning as set forth in Section 4(a) above.

     (g) “Notice of Exercise of the Right of First Refusal” shall have the meaning as set forth in
Section 8(c) above.

     (h) “Optionee” for purposes of this Amendment shall mean the party named as such in this
Amendment and the Grant Notice (or the permitted transferee of this Option pursuant to Section 3
above).

     (i) “Option Shares” shall mean any Offered Shares originally issued upon the exercise of this
Option, together with any additional Shares or other securities or rights to acquire Shares or
other securities, issued or issuable by the Company in respect of such originally issued Offered
Shares, or subsequently issued Shares, or other securities, resulting from or arising out of a
Recapitalization Event.

     (j) “Permitted Transfer” shall mean (i) upon the death of a Holder, a Transfer by will or
under the laws of descent and distribution; or (ii) a Transfer by a Holder to his or her ancestors,
descendants or spouse (other than pursuant to a decree of divorce, dissolution or separate
maintenance, a property settlement, or a separation agreement or any similar agreement or
arrangement with a spouse, except for bona fide estate planning purposes), or to a trust,
partnership, limited liability company, custodianship or other fiduciary account for the benefit of
the Holder and/or such ancestors, descendants or spouse, including any Transfer in the form of a
distribution from any such trust, partnership, limited liability company, custodianship or other
fiduciary account to any of the foregoing permitted beneficial owners or beneficiaries thereof.

     (k) “Purchase Price” shall mean the Exercise Price multiplied by the number of Shares with
respect to which this Option is being exercised.

     (l) “Repurchase Price” shall have the meaning as set forth in Section 7(a) above.

     (m) “Right of First Refusal” shall have the meaning as set forth in Section 8(a) of this
Amendment.

 

 

     (n) “Share Transfer Documents” shall have the meaning as set forth in Section 4(c) above.

     (o) “Transferee” shall mean any party to whom the Optionee, or any subsequent Holder, directly
or indirectly, Transfers any Option Shares originally acquired upon the exercise of this Option or
subsequently acquired in connection with any Recapitalization Event.

     (p) “Transfer Notice” shall mean the notice of a proposed Transfer of Shares described in
Section 8(b) of this Amendment.

     (q) “Voluntary Transfer” shall have the meaning as set forth in Section 8(a) of this
Amendment.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

By your signature and the signature of the Company’s representative below, you and the Company
agree that the Option is granted under and governed by the terms and conditions of this Amendment
(including the attached Grant Notice) and the Plan.

	 	 	 	 	 	 	 	 	 
	OPTIONEE	 	SORRENT, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	[signature]
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

-13-

 

THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE
THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER
APPLICABLE STATE LAW, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS
COUNSEL, THAT SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.

Stock Option Agreement

under the

Glu Mobile inc.

2001 Second Amended and Restated

Stock Option Plan

SECTION 1. GRANT OF OPTION.

     On the terms and conditions set forth in this Stock Option Agreement, together with the Notice
of Stock Option Grant (the “Grant Notice”), to which this agreement is attached, the Company grants
to the Optionee (the party to whom the Grant Notice is addressed) as of the Grant Date the option
to purchase at the Exercise Price the number of Offered Shares, all as set forth in the Grant
Notice. This Option is granted pursuant to the Glu Mobile Inc. 2001 Second Amended and Restated
Stock Option Plan (the “Plan”), a copy of which the Optionee acknowledges having received, reviewed
and understood. The provisions of the Plan form a part of this Agreement. Capitalized terms have
the meanings set forth in the Plan, except as set forth in Section 14 of this Agreement.

SECTION 2. RIGHT TO EXERCISE.

     This Option may be exercised to purchase Offered Shares at any time before its expiration.
Notwithstanding any other provision of this Agreement, no portion of this Option shall be
exercisable at any time prior to the approval of the Plan by the Company’s shareholders.

SECTION 3. NO TRANSFER OR ASSIGNMENT OF OPTION.

     Except as otherwise expressly provided in this Agreement or the Plan, this Option and the
rights and privileges conferred hereby shall not be Transferred, except upon the death of the
Optionee by will or under the laws of descent or distribution. As a condition to any Transfer of
this Option under this Agreement or the Plan, the transferee of this Option shall agree in writing
on a form prescribed by the Company to be bound by all provisions of this Agreement.

 

 

SECTION 4. EXERCISE PROCEDURES.

     (a) Notice of Exercise. The Optionee or (the Optionee’s representative if the Optionee is
deceased or incapacitated) may exercise this Option by giving written notice to the Company in the
form attached hereto as Exhibit A (the “Notice of Exercise”) in the manner provided as set
forth in Section 13(c). The Notice of Exercise shall specify the election to exercise this Option,
the number of Shares for which it is being exercised and the form of payment. The Notice of
Exercise shall be signed by the person exercising this Option. In the event that this Option is
being exercised by the representative of the Optionee, the notice shall be accompanied by proof
(satisfactory to the Company) of the representative’s right to exercise this Option. The Optionee
or the Optionee’s representative shall deliver to the Company, at the time of giving the notice,
payment in a form permissible under Section 5 for the full amount of the Purchase Price and any
other payment as required under this Agreement.

     (b) Issuance of Shares. Within 28 days after receipt of a proper Notice of Exercise, the
Company shall cause to be issued certificate(s) for the Option Shares as to which this Option has
been exercised, registered in the name of the person exercising this Option (or in the names of
such person and his or her spouse as community property or as joint tenants with right of
survivorship as may be set forth in the Notice of Exercise).

     (c) Escrow. For purposes of facilitating the enforcement of the restrictions on Transfer and
the Right of First Refusal with respect to Option Shares as set forth in the Plan and this
Agreement, upon exercise of this Option: (1) the Company shall deliver the certificate(s) for such
Option Shares to the Secretary of the Company (or his or her designee), and (2) the original Holder
(together with his or her spouse) shall execute such stock power (if required for Transfer, in
blank) with respect to such Option Shares (the “Stock Transfer Document”) to hold such
certificate(s) and Stock Transfer Document(s) in escrow and to take all such actions and to
effectuate all such Transfers and/or releases as are in accordance with the terms of the Plan and
this Agreement. Any new, substituted or additional Option Shares issued or issuable upon a
Recapitalization Event pursuant to Section 11 shall immediately be delivered to the Secretary of
the Company (or his or her designee) to be held in escrow. At any time in its reasonable
discretion, if the Company so requests, a Holder (together with his or her spouse, if any) shall
execute such additional Stock Transfer Document(s) with respect to such Option Shares held, or to
be held, in escrow pursuant to this Section 4(c), and deliver the same to the Secretary of the
Company (or his or her designee). All regular cash dividends on such Option Shares shall be paid
directly to the Holder and shall not be held in escrow. The Option Shares held in escrow hereunder
shall be (i) surrendered to the Company for repurchase and cancellation upon and to the extent of
the Company’s exercise of the Right of First Refusal or (ii) released to the Holder (together with
related Stock Transfer Document(s)) upon the Holder’s request to the extent the Option Shares are
no longer subject to the Right of First Refusal. The Optionee acknowledges that the Secretary of
the Company (or his or her designee) is so appointed as the escrow holder with the foregoing
authorities as a material inducement to the grant of this Option, that the appointment is coupled
with an interest, and that it accordingly will be irrevocable. The escrow holder will not be
liable to the Optionee or any other party for any actions or omissions unless the escrow holder is
grossly negligent relative thereto. The escrow holder may rely upon any letter, notice or other
document executed by any signature purported to be genuine.

 

 

     (d) Withholding Taxes. In the event that the Company determines that it is required to
withhold any tax as a result of the exercise of this Option, the Optionee, as a condition to the
exercise of this Option, shall make arrangements satisfactory to the Company to enable it to
satisfy all withholding requirements. The Optionee shall also make arrangements satisfactory to
the Company to enable it to satisfy any withholding requirements that may arise in connection with
the Transfer of Option Shares.

SECTION 5. PAYMENT FOR SHARES.

     (a) Cash. All or part of the Purchase Price may be paid in cash or cash equivalents.

     (b) Surrender of Shares. With the consent of the Plan Administrator, all or part of the
Purchase Price may be paid by the surrender of Shares that are already owned by the Optionee. Such
Shares shall be surrendered to the Company in good form for transfer and shall be valued at their
Fair Market Value (as determined by the Plan Administrator) on the date of exercise of this Option
which, together with any amount paid in another form permissible under this Section 5, is equal to
the Purchase Price.

SECTION 6. TERM AND EXPIRATION.

     Subject to the provisions in the Plan regarding an earlier expiration of this Option, this
Option shall expire no later than the expiration date set forth in the Grant Notice. The Option
shall in no event expire later than 10 years (or 5 years if the Optionee is a 10% Holder) after the
Grant Date.

SECTION 7. COMPANY REPURCHASE OPTION.

     (a) Company Repurchase Option. In addition to any other repurchase right that the Company may
have with respect to any Shares, the Option Shares shall be subject to repurchase by the Company
pursuant to the Company Repurchase Option. The Company may exercise the Company Repurchase Option
to repurchase all Option Shares that have not Vested as of the date the Company Repurchase Option
is exercised. The Company Repurchase Option shall be exercisable only within the period ending 90
days after the later of: (i) the Optionee’s Service Termination Date, or (ii) if applicable, the
last date that any Option Shares are purchased upon the exercise of any portion of this Option. If
the Company exercises the Company Repurchase Option, it shall pay to the Holder a repurchase price
per share equal to the Exercise Price (the “Repurchase Price”), subject to any adjustment as
provided in Section 11.

     (b) Exercise of Company Repurchase Option. The Company Repurchase Option shall be exercisable
only by written notice delivered to the Holder of the Option Shares prior to the expiration of the
period specified in Section 7(a). The notice shall set forth (a) the number of Option Shares to be
repurchased (and if any securities or other property other than Shares are being repurchased, a
reasonably detailed description thereof), (b) the Repurchase Price, both in aggregate amount and
the form of consideration thereof, and (c) the date on which the repurchase is to be effected. The
certificate(s) representing the Option Shares to be repurchased shall, prior to the close of
business on the date specified for the repurchase, be delivered to the Company from escrow and
properly endorsed (if necessary). The Company shall, concurrently with the receipt of such
certificate(s), pay to the Holder the Repurchase Price determined according to

 

 

Section 7(a). Payment shall be made in cash or cash equivalents, or the cancellation of
purchase money indebtedness for the Option Shares, in the discretion of the Plan Administrator.
The Company Repurchase Option shall be assignable as provided in Section 5(f) of the Plan, and for
the purposes of this Section 7, “Company” shall mean the Company (as defined in the Plan) and any
assignee of the Company’s Company Repurchase Option.

     (c) Certain Tax Matters. To the extent the Optionee exercises this Option at a time that the
Offered Shares are subject to the Company Repurchase Option, the Optionee acknowledges that a
variety of factors may affect the income tax liability of the Optionee or any subsequent Holder of
the Option Shares, including the following: As a general rule, under Section 83 of the Code, the
Holder of the Offered Shares will be taxed at ordinary income tax rates on the Fair Market Value of
the Offered Shares, less their Exercise Price, as of the date that any restrictions on transfer and
risks of forfeiture with respect to any of the Offered Shares lapse. Under this Agreement, the
Company Repurchase Option constitutes such a restriction on transfer and risk of forfeiture.
Therefore, as of the date that the Company Repurchase Option lapses with respect to any of the
Offered Shares (the “Repurchase Option Lapse Date”), the Holder may become subject to income
taxation on the amount of any appreciation in the value of such Shares. However, Section 83(b) of
the Code permits the Optionee to file an election with the Internal Revenue Service within 30 days
of the date such Offered Shares are purchased from the Company, whereby the Optionee elects to be
taxed on the Fair Value of the Offered Shares as of their date of purchase less the Exercise Price
paid for those Shares, rather than being taxed when the Company Repurchase Option lapses. This
means that if the Exercise Price paid for the Offered Shares is equal to the Fair Market Value of
the Offered Shares at the time of exercise and purchase, and the Offered Shares are subject to the
Company Repurchase Option, the election may be desirable in order to avoid taxation of future
appreciation at ordinary income tax rates. Optionee acknowledges that his or her failure to file
this election in a timely manner may result in recognition of ordinary taxable income by the
Optionee as of the Repurchase Option Lapse Date, in an amount equal to the appreciation (or
unrealized gain) on the Offered Shares (measured as of the Repurchase Option Lapse Date) relative
to the Exercise Price paid for such Shares. In addition, Optionee further acknowledges that if the
Offered Shares decline in value after he or she exercises this Option, and if he or she has timely
filed an 83(b) election with respect to the Offered Shares, then any loss is only deductible as a
capital loss upon the disposition of the Offered Shares. Moreover, if the Offered Shares are later
repurchased by the Company (or its assignee) at a loss, the Optionee will not be entitled to any
tax refund or tax deduction. OPTIONEE ACKNOWLEDGES THAT HE OR SHE IS NOT RELYING ON THE COMPANY
FOR TAX ADVICE WITH RESPECT TO THESE MATTERS, THAT IT IS HIS OR HER SOLE AND EXCLUSIVE
RESPONSIBILITY TO DETERMINE WHETHER TO FILE ANY ELECTION UNDER SECTION 83(b) OF THE CODE, AND THAT
THE COMPANY SHALL BEAR NO RESPONSIBILITY WHATSOEVER FOR THAT FILING, INCLUDING THE TIMELINESS OF
THAT FILING. Optionee agrees to promptly deliver to the Company a copy of any tax election
relating to the treatment of the Offered Shares under the Code.

SECTION 8. RIGHT OF FIRST REFUSAL.

     (a) Right of First Refusal. In the event that either (i) the Holder proposes to Transfer any
Option Shares, or any interest in such Option Shares for value (a “Voluntary Transfer”), or

 

 

(ii) the Holder proposes a Donative Transfer of Option Shares, or any interest therein, or
(iii) an Involuntary Transfer of Option Shares, or any interest therein, occurs, the Company shall
have a right (but not an obligation) to repurchase all or a portion of such Option Shares (the
“Right of First Refusal”) in the manner and on such terms as are set forth in this Section 8. The
Company’s rights under this Section 8 shall be freely assignable, in whole or in part, and for the
purposes of this Section 8, “Company” shall mean the Company (as defined in the Plan) and any
assignee of the Company’s Right of First Refusal.

     (b) Notice of Transfer. Prior to a Voluntary Transfer or a Donative Transfer, the Holder shall
give a written Transfer Notice to the Company describing fully the terms of the proposed Transfer,
including the number of Option Shares proposed to be Transferred, the proposed Transfer price and
consideration (except in the case of a Donative Transfer), the name and address of the proposed
Transferee and proof satisfactory to the Company that the proposed Transfer will not violate any
applicable state, federal or foreign securities laws. The Transfer Notice shall be signed both by
the Holder and by the proposed Transferee and include a statement by both parties stating that they
intend to complete the Transfer on the terms described in the Transfer Notice and that the
Transferee agrees to be bound by all provisions of this Agreement.

     (c) Voluntary Transfer. In connection with a proposed Voluntary Transfer, the Company shall
have the right to purchase all, and not less than all, of the Option Shares on the terms of the
proposal described in the Transfer Notice by delivery of a Notice of Exercise of the Right of First
Refusal to the Holder within 30 days after the date when the Transfer Notice was received by the
Company. If the Company fails to deliver a Notice of Exercise of the Right of First Refusal within
such 30 day period, the Holder may, not later than 90 days following receipt of the Transfer Notice
by the Company, conclude a Transfer of the Option Shares subject to the Transfer Notice on the
terms and conditions described in the Transfer Notice, provided that any such Transfer is made in
compliance with applicable state, federal and foreign securities laws and not in violation of any
other contractual restrictions to which the Holder is bound. Any proposed Transfer on terms and
conditions more favorable to the Transferee from those described in the Transfer Notice, as well as
any subsequent proposed Transfer by the Holder, shall again be subject to the Right of First
Refusal and shall require compliance with the procedures described in this Section 8. If the
Company exercises its Right of First Refusal, the Holder and the Company shall consummate the
Transfer of the Option Shares on the terms set forth in the Transfer Notice within 60 days after
the date when the Company received the Transfer Notice (or within such longer period as may have
been specified in the Transfer Notice). Payment shall be made in cash or cash equivalents, or such
other form or forms of legal consideration as may be acceptable to the Plan Administrator, in its
discretion, in the amount equal to the value of the consideration described in the Transfer Notice.

     (d) Involuntary and Donative Transfers. Upon the completion of an Involuntary Transfer or a
Donative Transfer of Option Shares, or any interest therein, the Holder shall give a notice (the
“Completed Transfer Notice”) to the Company signed by the Holder, which shall: (i) in the event of
an Involuntary Transfer, describe fully the facts and circumstances of the Involuntary Transfer,
including the number of Option Shares Transferred, the Transfer price and consideration, if any,
the name and address of the Transferee and proof satisfactory to the Company that the Involuntary
Transfer does not violate any applicable state, federal or foreign

 

 

securities laws, or (ii) in the event of a Donative Transfer, certify that the Donative
Transfer has occurred in accordance with the terms of the Transfer Notice described in Section 8(b)
above. The Company shall have the right to purchase all, and not less than all, of the Option
Shares described in the Completed Transfer Notice by delivery of a Notice of Exercise of the Right
of First Refusal to the Transferee within 30 days after the date when the Completed Transfer Notice
was received by the Company, provided that the Company shall pay the Transferee a purchase price
for the Option Shares in the amount equal to the Fair Market Value of those Option Shares as of the
effective date of such Involuntary Transfer or Donative Transfer.

     (e) Nonrecognition of Transfer. The Company will have no obligation to record the Transfer of
any Option Shares on the Company’s books and records to the extent such Transfer does not comply
with the requirements of this Section 8.

     (f) Termination of Right of First Refusal. Any other provision of this Section 8
notwithstanding, if at any time the Option Shares become readily tradable following an Initial
Public Offering, the Company shall have no Right of First Refusal, and the Holder shall have no
obligation to comply with the procedures described in this Section 8.

     (g) Permitted Transfers. Neither the Optionee nor any subsequent Holder shall Transfer any
Option Shares except as set forth in this Section 8. Notwithstanding the foregoing, this Section 8
shall not apply to a Permitted Transfer, provided that in the event of a Permitted Transfer, and as
a condition to registering such Option Shares in the name of such Transferee in the Company’s stock
register or similar records, the Transferee shall agree in writing on a form prescribed by the
Company to be bound by all provisions of this Agreement. If the Holder Transfers any Option Shares
acquired under this Agreement, either under this Section 8(g) or after the Company has failed to
exercise the Right of First Refusal, then this Section 8 shall apply to the Transferee to the same
extent as to the Holder.

SECTION 9. COMPLIANCE WITH LAW

     Shares may be issued upon the exercise of this Option only after and on the condition that
there has been compliance with the Securities Act and all other applicable federal, state and
foreign securities laws. The Company will not be required to list, register or qualify such Shares
upon any securities exchange, under any applicable federal, state or foreign law or regulation, or
with the Securities and Exchange Commission or any state agency, or secure the consent or approval
of any governmental regulatory authority, except that if at any time the Board of Directors
determines in its discretion, that such listing, registration or qualification of such Shares, or
any consent or approval, is necessary or desirable as a condition of or in connection with the
exercise of this Option and the purchase of the Shares issued upon exercise hereof, then this
Option may not be exercised, in whole or in part, unless and until such listing, registration,
qualification, consent or approval is effected or obtained free of any conditions that are not
acceptable to the Board of Directors, in its discretion.

SECTION 10. ADDITIONAL RESTRICTIONS ON TRANSFER.

     (a) Securities Law Restrictions. Regardless of whether the offering and sale of Shares under
the Plan have been registered under the Securities Act or have been registered or qualified under
the securities laws of any state, the Company at its discretion may impose restrictions upon

 

 

the Transfer of such Shares (including the placement of appropriate legends on stock
certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company,
such restrictions are necessary or desirable in order to achieve compliance with the Securities
Act, the securities laws of any state or any other applicable law.

     (b) Market Stand-Off. In connection with any underwritten listing of the shares of capital
stock of the Company on any established stock exchange or national market system pursuant to an
effective registration statement filed under the Securities Act or any similar laws in a foreign
jurisdiction, including the Company’s Initial Public Offering, the Holder shall not directly or
indirectly Transfer any Option Shares or enter into any contract for the Transfer of any Option
Shares, or agree to engage in any of the foregoing transactions with respect to any Option Shares
without the prior written consent of the Company or its underwriters. Such restriction (the
“Market Stand-Off”) shall be in effect for such period of time following the date of the final
prospectus for the offering as may be requested by the Company or such underwriters. The Market
Stand-Off shall in any event terminate two (2) years after the date of the Company’s Initial Public
Offering. In order to enforce the Market Stand-Off, the Company may impose stop-transfer
instructions with respect to the Option Shares until the end of the applicable stand-off period.
The Company’s underwriters shall be beneficiaries of the agreement set forth in this Section 10(b).
This Section 10(b) shall not apply to the equity securities registered in an Initial Public
Offering.

     (c) Investment Intent. By accepting this Option and/or the Option Shares, the Optionee will
be deemed to represent, warrant and agree that, unless a registration statement is in effect with
respect to the offer and sale of such Option Shares, (i) neither this Option or the Option Shares
will be freely tradable and must be held indefinitely unless such Option and such Option Shares are
either registered under the Securities Act or an exemption from such registration is available;
(ii) the Company is under no obligation to register the Option or the Option Shares, (iii) upon
exercise of the Option, the Optionee will purchase any such Option Shares for his or her own
account and not with a view to distribution within the meaning of the Securities Act, other than as
may be effected in compliance with the Securities Act and the rules and regulations promulgated
thereunder; (iv) no one else will have any beneficial interest in the Option Shares; (v) the
Optionee has no present intention of Transferring the Option or Option Shares at any particular
time, and (vi) neither this Option nor the Option Shares have been registered or qualified under
the securities laws of any state and may only be offered and sold pursuant to an exception from the
registration or qualification under applicable state securities laws.

     (d) Legends. All certificates evidencing Option Shares shall bear the following legend:

“THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR
IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE
PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY
CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES. THE
SECRETARY OF THE COMPANY

 

 

WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF
WITHOUT CHARGE.”

     All certificates evidencing Option Shares shall bear the following legend (and such other
restrictive legends as are required or deemed advisable under the provisions of any applicable law)
unless such legend is not required in the opinion of the Company and its counsel to comply with the
requirements of applicable securities laws:

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER APPLICABLE STATE LAW, AND MAY NOT
BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS
COUNSEL, THAT SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.”

     (e) Removal of Legends. If, in the opinion of the Company and its counsel, any legend placed
on a stock certificate representing Option Shares sold under this Agreement is no longer required,
the Holder shall be entitled to exchange such certificate for a certificate representing the same
number of Option Shares but without such legend.

     (f) Administration. Any determination by the Company and its counsel in connection with any
of the matters set forth in this Section 10 shall be conclusive and binding on the Optionee and all
other Holders or Transferees, or any other party claiming to derive rights by or through the
Optionee.

SECTION 11. RECAPITALIZATION EVENTS.

     In the event of any Recapitalization Event, the terms of this Option (including, without
limitation, the number and kind of Option Shares and the Exercise Price) shall be adjusted as set
forth in Section 6(a) of the Plan. Appropriate adjustments to reflect the distribution of such
securities or property shall be made to the number and kind of the Option Shares that are subject
to the Right of First Refusal.

SECTION 12. ISO PROVISIONS.

     (a) $100,000 Limitation. If this Option is designated as an ISO in the Grant Notice, then to
the extent (and only to the extent) that this Option otherwise would not be treated as an ISO by
reason of the $100,000 annual limitation under Section 422(d) of the Code, such portion of the
Option will be treated as a Nonstatutory Option.

     (b) Notice Concerning ISO Treatment. If this Option is designated as an ISO in the Grant
Notice, the Optionee acknowledges that this Option shall cease to qualify for favorable tax
treatment as an ISO to the extent it is exercised (i) more than three months after the date the
Optionee ceases to be an Employee for any reason other than death or Disability, (ii) more than 12
months after the date the Optionee ceases to be an Employee by reason of such Disability or (iii)
after the Optionee has been on a leave of absence from the Company for more than 90 days,

 

 

unless the Optionee’s reemployment rights with the Company are guaranteed by law or by
contract.

SECTION 13. MISCELLANEOUS PROVISIONS.

     (a) Rights as a Shareholder. Neither the Optionee nor the Optionee’s representative shall
have any rights as a shareholder of the Company with respect to any Option Shares subject to this
Option until the Optionee or the Optionee’s representative becomes entitled to receive such Option
Shares by delivering a Notice of Exercise and paying the Purchase Price pursuant to Sections 4 and
5 above. If the Company exercises the Right of First Refusal in accordance with the terms and
conditions of Section 8 of this Agreement, then the Holder shall no longer have any rights as a
holder of such Option Shares purchased by the Company (other than the right to receive payment of
the consideration as set forth in Section 8). Such Option Shares shall be deemed to have been
repurchased in accordance with the applicable provisions hereof, whether or not the certificate(s)
or Stock Transfer Document(s) therefor have been delivered as required by this Agreement.

     (b) No Retention Rights. Nothing in this Agreement or in the Plan shall confer upon the
Optionee any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Company or of the Optionee, which rights are hereby
expressly reserved by each, to terminate his or her Service at any time and for any reason, with or
without cause.

     (c) Notice. Any notice required by the terms of this Agreement shall be given in writing and
shall be deemed effective upon personal delivery or upon deposit with the United States Postal
Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed
to the Company at its principal executive office and to the Optionee at the address that he or she
most recently provided to the Company.

     (d) Specific Performance. Under those circumstances in which the Company chooses to timely
exercise its rights to purchase any Option Shares as provided herein, the Company will be entitled
to receive such Option Shares in specie in order to have the same available for future issuance
without dilution of the holdings of other shareholders of the Company. In consideration for this
Option and the Option Shares, the Optionee acknowledges and agrees that money damages will be
inadequate to compensate the Company and its shareholders if such a purchase is not completed as
contemplated hereunder or if the Optionee violates the confidentiality provisions in the Plan or
this Agreement, and that the Company will, in such case, be entitled to a decree of specific
performance of the terms hereof or to an injunction restraining such Optionee (or upon death such
Optionee’s personal representative) from violating this Plan or Agreement, in addition to any other
remedies that may be available to the Company at law or in equity.

     (e) Entire Agreement. This Agreement, the Grant Notice and the Plan, together with any
exhibits and schedules attached thereto, constitute the entire contract between the parties hereto
with regard to the subject matter hereof. They supersede any other agreements, representations or
understandings (whether oral or written and whether express or implied) which relate to the subject
matter hereof.

 

 

     (f) Choice of Law. The internal laws of the State of California (irrespective of its choice
of law principles) will govern the validity of this Agreement, the construction of its terms and
the interpretation of the rights and duties of the parties hereunder. Any party may seek to
enforce its rights under this Agreement in any court of competent jurisdiction located within the
judicial district in which the Company has a regular place of business.

     (g) Confidentiality. Pursuant to Section 7(b) of the Plan, the Company may provide the
Optionee with certain financial and other proprietary information of the Company. By virtue of
entering into this Agreement, the Optionee agrees (and to cause any investment advisers to whom the
Optionee proposes to make such information available to agree) to keep such information
confidential and not to use, disclose or copy such information for any purpose whatsoever other
than determining whether to exercise this Option. The Company deems such information to be the
valuable trade secrets of the Company, and in the event of any wrongful use, disclosure or other
breach of the obligation to maintain the confidentiality of such financial and other proprietary
information, the Company may seek to enforce all of its available legal and equitable rights and
remedies, and may notify local law enforcement officials that a criminal misappropriation of the
Company’s trade secrets has taken place.

     (h) Hold Harmless. Optionee hereby acknowledges and agrees that the determination of
“fair market value” for purposes of Section 409A and other sections of the Code for a
privately-held corporation with illiquid shares is necessarily uncertain at the time of grant
of this Option and the determination of whether the exercise price per share of this Option is
at a discount from such “fair market value” and the size of any such discount has been made in
good faith by the Company and any person or persons retained by the Company to determine or
assist in determining such “fair market value” (whether compensated or not for such service).
Therefore, Optionee freely acknowledges and agrees to hold the Company and all such persons
(including, without limitation, Directors, Consultants, and Employees and any advisors or other
parties related or retained by the foregoing or the Company) harmless from any liability
Optionee may have under Section 409A of the Code or any other section of the Code due to the
determination of such “fair market value” to the maximum extent permitted by applicable law.

SECTION 14. DEFINITIONS.

     (a) “Agreement” shall mean the Grant Notice between the Company and the Optionee together with
this Stock Option Agreement between the Company and the Optionee, together with the exhibits and
attachments hereto.

     (b) “Completed Transfer Notice” shall have the meaning as set forth in Section 8(d) above.

     (c) “Disability” shall mean total and permanent disability within the meaning of Section
22(e)(3) of the Code.

     (d) “Grant Notice” shall have the meaning as set forth in Section 1 above.

 

 

     (e) “Holder” shall mean the registered holder of any Option Shares originally issued pursuant
to the exercise of this Option or in connection with any Recapitalization Event, including any
Transferee.

     (f) “Market Stand-Off” shall have the meaning as set forth in Section 10(b) above.

     (g) “Notice of Exercise” shall have the meaning as set forth in Section 4(a) above.

     (h) “Notice of Exercise of the Right of First Refusal” shall have the meaning as set forth in
Section 8(c) above.

     (i) “Optionee” for purposes of this Agreement shall mean the party named as such in this
Agreement and the Grant Notice (or the permitted transferee of this Option pursuant to Section 3
above).

     (j) “Option Shares” shall mean any Offered Shares originally issued upon the exercise of this
Option, together with any additional Shares or other securities or rights to acquire Shares or
other securities, issued or issuable by the Company in respect of such originally issued Offered
Shares, or subsequently issued Shares, or other securities, resulting from or arising out of a
Recapitalization Event.

     (k) “Permitted Transfer” shall mean (i) upon the death of a Holder, a Transfer by will or
under the laws of descent and distribution; or (ii) a Transfer by a Holder to his or her ancestors,
descendants or spouse (other than pursuant to a decree of divorce, dissolution or separate
maintenance, a property settlement, or a separation agreement or any similar agreement or
arrangement with a spouse, except for bona fide estate planning purposes), or to a trust,
partnership, limited liability company, custodianship or other fiduciary account for the benefit of
the Holder and/or such ancestors, descendants or spouse, including any Transfer in the form of a
distribution from any such trust, partnership, limited liability company, custodianship or other
fiduciary account to any of the foregoing permitted beneficial owners or beneficiaries thereof.

     (l) “Purchase Price” shall mean the Exercise Price multiplied by the number of Shares with
respect to which this Option is being exercised.

     (m) “Right of First Refusal” shall have the meaning as set forth in Section 8(a) of this
Agreement.

     (n) “Share Transfer Documents” shall have the meaning as set forth in Section 4(c) above.

     (o) “Transferee” shall mean any party to whom the Optionee, or any subsequent Holder, directly
or indirectly, Transfers any Option Shares originally acquired upon the exercise of this Option or
subsequently acquired in connection with any Recapitalization Event.

     (p) “Transfer Notice” shall mean the notice of a proposed Transfer of Shares described in
Section 8(b) of this Agreement.

     (q) “Voluntary Transfer” shall have the meaning as set forth in Section 8(a) of this
Agreement.

 

 

THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE THEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER
APPLICABLE STATE LAW, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS
COUNSEL, THAT SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.

Stock Option Agreement

under the

Glu Mobile inc.

2001 Second Amended and Restated

Stock Option Plan

SECTION 1. GRANT OF OPTION.

     On the terms and conditions set forth in this Stock Option Agreement, together with the Notice
of Stock Option Grant (the “Grant Notice”), to which this agreement is attached, the Company grants
to the Optionee (the party to whom the Grant Notice is addressed) as of the Grant Date the option
to purchase at the Exercise Price the number of Offered Shares, all as set forth in the Grant
Notice. This Option is granted pursuant to the Glu Mobile Inc. 2001 Second Amended and Restated
Stock Option Plan (the “Plan”), a copy of which the Optionee acknowledges having received, reviewed
and understood. The provisions of the Plan form a part of this Agreement. Capitalized terms have
the meanings set forth in the Plan, except as set forth in Section 14 of this Agreement.

SECTION 2. RIGHT TO EXERCISE.

     This Option may be exercised to purchase Offered Shares at any time before its expiration, but
only to the extent that this Option has become vested, in whole or in part, pursuant to the vesting
schedule set forth in the Grant Notice (or otherwise became exercisable as provided in the Plan).
Notwithstanding any other provision of this Agreement, no portion of this Option shall be
exercisable at any time prior to the approval of the Plan by the Company’s shareholders.

SECTION 3. NO TRANSFER OR ASSIGNMENT OF OPTION.

     Except as otherwise expressly provided in this Agreement or the Plan, this Option and the
rights and privileges conferred hereby shall not be Transferred, except upon the death of the
Optionee by will or under the laws of descent or distribution. As a condition to any Transfer of
this Option under this Agreement or the Plan, the transferee of this Option shall agree in writing
on a form prescribed by the Company to be bound by all provisions of this Agreement.

 

 

SECTION 4. EXERCISE PROCEDURES.

     (a) Notice of Exercise. The Optionee or (the Optionee’s representative if the Optionee is
deceased or incapacitated) may exercise this Option by giving written notice to the Company in the
form attached hereto as Exhibit A, or in such other form as may be approved by the Plan
Administrator from time to time (the “Notice of Exercise”), which may set forth, amongst other
things, any representations, warranties and agreements required by the Company to comply with
applicable securities laws. The Notice of Exercise shall be delivered to the Company in the
manner provided as set forth in Section 13(c). The Notice of Exercise shall specify the election
to exercise this Option, the number of Shares for which it is being exercised and the form of
payment. The Notice of Exercise shall be signed by the person exercising this Option. In the
event that this Option is being exercised by the representative of the Optionee, the notice shall
be accompanied by proof (satisfactory to the Company) of the representative’s right to exercise
this Option. The Optionee or the Optionee’s representative shall deliver to the Company, at the
time of giving the notice, payment in a form permissible under Section 5 for the full amount of
the Purchase Price and any other payment as required under this Agreement.

     (b) Issuance of Shares. Within 28 days after receipt of a proper Notice of Exercise, the
Company shall cause to be issued certificate(s) for the Option Shares as to which this Option has
been exercised, registered in the name of the person exercising this Option (or in the names of
such person and his or her spouse as community property or as joint tenants with right of
survivorship as may be set forth in the Notice of Exercise).

     (c) Escrow. For purposes of facilitating the enforcement of the restrictions on Transfer and
the Right of First Refusal with respect to Option Shares as set forth in the Plan and this
Agreement, upon exercise of this Option: (1) the Company shall deliver the certificate(s) for such
Option Shares to the Secretary of the Company (or his or her designee), and (2) the original
Holder (together with his or her spouse) shall execute such two copies of a blank Stock Power and
Assignment Separate from Stock Certificate in the form of Exhibit B attached hereto with
respect to such Option Shares (the “Stock Transfer Document”) and deliver such certificate(s) and
Stock Transfer Document(s) to the Company for the Company to hold in escrow to enable the Company
to take all actions necessary to effectuate any Transfers and/or releases as are in accordance
with the terms of the Plan and this Agreement. Any new, substituted or additional Option Shares
issued or issuable upon a Recapitalization Event pursuant to Section 11 shall immediately be
delivered to the Secretary of the Company (or his or her designee) to be held in escrow. At any
time in its reasonable discretion, if the Company so requests, a Holder (together with his or her
spouse, if any) shall execute such additional Stock Transfer Document(s) with respect to such
Option Shares held, or to be held, in escrow pursuant to this Section 4(c), and deliver the same
to the Secretary of the Company (or his or her designee). All regular cash dividends on such
Option Shares shall be paid directly to the Holder and shall not be held in escrow. The Option
Shares held in escrow hereunder shall be (i) surrendered to the Company for repurchase and
cancellation upon and to the extent of the Company’s exercise of the Right of First Refusal or
(ii) released to the Holder (together with related Stock Transfer Document(s)) upon the Holder’s
request to the extent the Option Shares are no longer subject to the Right of First Refusal. The
Optionee acknowledges that the Secretary of the Company (or his or her designee) is so appointed
as the escrow holder with the foregoing authorities as a material inducement to the grant of this
Option, that the appointment

 

 

is coupled with an interest, and that it accordingly will be irrevocable. The escrow holder
will not be liable to the Optionee or any other party for any actions or omissions unless the
escrow holder is grossly negligent relative thereto. The escrow holder may rely upon any letter,
notice or other document executed by any signature purported to be genuine.

     (d) Withholding Taxes. In the event that the Company determines that it is required to
withhold any tax as a result of the exercise of this Option, the Optionee, as a condition to the
exercise of this Option, shall make arrangements satisfactory to the Company to enable it to
satisfy all withholding requirements. The Optionee shall also make arrangements satisfactory to
the Company to enable it to satisfy any withholding requirements that may arise in connection with
the Transfer of Option Shares.

SECTION 5. PAYMENT FOR SHARES.

     (a) Cash. All or part of the Purchase Price may be paid in cash or cash equivalents.

     (b) Surrender of Shares. With the consent of the Plan Administrator, all or part of the
Purchase Price may be paid by the surrender of Shares that are already owned by the Optionee.
Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at
their Fair Market Value (as determined by the Plan Administrator) on the date of exercise of this
Option which, together with any amount paid in another form permissible under this Section 5, is
equal to the Purchase Price.

SECTION 6. TERM AND EXPIRATION.

     Subject to the provisions in the Plan regarding an earlier expiration of this Option, this
Option shall expire no later than the expiration date set forth in the Grant Notice. The Option
shall in no event expire later than 10 years (or 5 years if the Optionee is a 10% Holder) after the
Grant Date.

SECTION 7. NO COMPANY REPURCHASE OPTION.

Notwithstanding any other repurchase rights that the Company may have with respect to any Shares,
the Option Shares shall not be subject to the Company Repurchase Option.

SECTION 8. RIGHT OF FIRST REFUSAL.

     (a) Right of First Refusal. In the event that either (i) the Holder proposes to Transfer any
Option Shares, or any interest in such Option Shares for value (a “Voluntary Transfer”), or (ii)
the Holder proposes a Donative Transfer of Option Shares, or any interest therein, or (iii) an
Involuntary Transfer of Option Shares, or any interest therein, occurs, the Company shall have a
right (but not an obligation) to repurchase all or a portion of such Option Shares (the “Right of
First Refusal”) in the manner and on such terms as are set forth in this Section 8. The Company’s
rights under this Section 8 shall be freely assignable, in whole or in part, and for the purposes
of this Section 8, “Company” shall mean the Company (as defined in the Plan) and any assignee of
the Company’s Right of First Refusal.

 

 

     (b) Notice
of Transfer. Prior to a Voluntary Transfer or a Donative Transfer, the Holder
shall give a written Transfer Notice to the Company describing fully the terms of the proposed
Transfer, including the number of Option Shares proposed to be Transferred, the proposed Transfer
price and consideration (except in the case of a Donative Transfer), the name and address of the
proposed Transferee and proof satisfactory to the Company that the proposed Transfer will not
violate any applicable state, federal or foreign securities laws. The Transfer Notice shall be
signed both by the Holder and by the proposed Transferee and include a statement by both parties
stating that they intend to complete the Transfer on the terms described in the Transfer Notice
and that the Transferee agrees to be bound by all provisions of this Agreement.

     (c) Voluntary
Transfer. In connection with a proposed Voluntary Transfer, the Company shall
have the right to purchase all, and not less than all, of the Option Shares on the terms of the
proposal described in the Transfer Notice by delivery of a Notice of Exercise of the Right of
First Refusal to the Holder within 30 days after the date when the Transfer Notice was received by
the Company. If the Company fails to deliver a Notice of Exercise of the Right of First Refusal
within such 30 day period, the Holder may, not later than 90 days following receipt of the
Transfer Notice by the Company, conclude a Transfer of the Option Shares subject to the Transfer
Notice on the terms and conditions described in the Transfer Notice, provided that any such
Transfer is made in compliance with applicable state, federal and foreign securities laws and not
in violation of any other contractual restrictions to which the Holder is bound. Any proposed
Transfer on terms and conditions more favorable to the Transferee from those described in the
Transfer Notice, as well as any subsequent proposed Transfer by the Holder, shall again be subject
to the Right of First Refusal and shall require compliance with the procedures described in this
Section 8. If the Company exercises its Right of First Refusal, the Holder and the Company shall
consummate the Transfer of the Option Shares on the terms set forth in the Transfer Notice within
60 days after the date when the Company received the Transfer Notice (or within such longer period
as may have been specified in the Transfer Notice). Payment shall be made in cash or cash
equivalents, or such other form or forms of legal consideration as may be acceptable to the Plan
Administrator, in its discretion, in the amount equal to the value of the consideration described
in the Transfer Notice.

     (d) Involuntary and Donative Transfers. Upon the completion of an Involuntary Transfer or a
Donative Transfer of Option Shares, or any interest therein, the Holder shall give a notice (the
“Completed Transfer Notice”) to the Company signed by the Holder, which shall: (i) in the event of
an Involuntary Transfer, describe fully the facts and circumstances of the Involuntary Transfer,
including the number of Option Shares Transferred, the Transfer price and consideration, if any,
the name and address of the Transferee and proof satisfactory to the Company that the Involuntary
Transfer does not violate any applicable state, federal or foreign securities laws, or (ii) in the
event of a Donative Transfer, certify that the Donative Transfer has occurred in accordance with
the terms of the Transfer Notice described in Section 8(b) above. The Company shall have the
right to purchase all, and not less than all, of the Option Shares described in the Completed
Transfer Notice by delivery of a Notice of Exercise of the Right of First Refusal to the
Transferee within 30 days after the date when the Completed Transfer Notice was received by the
Company, provided that the Company shall pay the Transferee a

 

 

purchase price for the Option Shares in the amount equal to the Fair Market Value of those
Option Shares as of the effective date of such Involuntary Transfer or Donative Transfer.

     (e) Nonrecognition of Transfer. The Company will have no obligation to record the Transfer
of any Option Shares on the Company’s books and records to the extent such Transfer does not
comply with the requirements of this Section 8.

     (f) Termination of Right of First Refusal. Any other provision of this Section 8
notwithstanding, if at any time the Option Shares become readily tradable following an Initial
Public Offering, the Company shall have no Right of First Refusal, and the Holder shall have no
obligation to comply with the procedures described in this Section 8.

     (g) Permitted Transfers. Neither the Optionee nor any subsequent Holder shall Transfer any
Option Shares except as set forth in this Section 8. Notwithstanding the foregoing, this Section
8 shall not apply to a Permitted Transfer, provided that in the event of a Permitted Transfer, and
as a condition to registering such Option Shares in the name of such Transferee in the Company’s
stock register or similar records, the Transferee shall agree in writing on a form prescribed by
the Company to be bound by all provisions of this Agreement. If the Holder Transfers any Option
Shares acquired under this Agreement, either under this Section 8(g) or after the Company has
failed to exercise the Right of First Refusal, then this Section 8 shall apply to the Transferee
to the same extent as to the Holder.

SECTION 9. COMPLIANCE WITH LAW

     Although the Plan is intended to be a written compensatory benefit plan within the meaning of
Rule 701 promulgated under the Securities Act, this Option may be made pursuant to any applicable
exemption to registration including Rule 701, Section 4(2) of the Securities Act, Regulation D
promulgated under the Securities Act of 1933 and/or Regulation S promulgated under the Securities
Act of 1933. Shares may be issued upon the exercise of this Option only after and on the condition
that there has been compliance with the Securities Act and all other applicable federal, state and
foreign securities laws. The Company will not be required to list, register or qualify such Shares
upon any securities exchange, under any applicable federal, state or foreign law or regulation, or
with the Securities and Exchange Commission or any state agency, or secure the consent or approval
of any governmental regulatory authority, except that if at any time the Board of Directors
determines in its discretion, that such listing, registration or qualification of such Shares, or
any consent or approval, is necessary or desirable as a condition of or in connection with the
exercise of this Option and the purchase of the Shares issued upon exercise hereof, then this
Option may not be exercised, in whole or in part, unless and until such listing, registration,
qualification, consent or approval is effected or obtained free of any conditions that are not
acceptable to the Board of Directors, in its discretion.

SECTION 10. ADDITIONAL RESTRICTIONS ON TRANSFER.

     (a) Securities Law Restrictions. Regardless of whether the offering and sale of Shares under
the Plan have been registered under the Securities Act or have been registered or qualified under
the securities laws of any state, the Company at its discretion may impose restrictions upon the
Transfer of such Shares (including the placement of appropriate legends on stock certificates or
the imposition of stop-transfer instructions) if, in the judgment of the

 

 

Company, such restrictions are necessary or desirable in order to achieve compliance with the
Securities Act, the securities laws of any state or any other applicable law.

     (b) Market Stand-Off. In connection with any underwritten listing of the shares of capital
stock of the Company on any established stock exchange or national market system pursuant to an
effective registration statement filed under the Securities Act or any similar laws in a foreign
jurisdiction, including the Company’s Initial Public Offering, the Holder shall not directly or
indirectly Transfer any Option Shares or enter into any contract for the Transfer of any Option
Shares, or agree to engage in any of the foregoing transactions with respect to any Option Shares
without the prior written consent of the Company or its underwriters. Such restriction (the
“Market Stand-Off”) shall be in effect for such period of time following the date of the final
prospectus for the offering as may be requested by the Company or such underwriters. The Market
Stand-Off shall in any event terminate two (2) years after the date of the Company’s Initial
Public Offering. In order to enforce the Market Stand-Off, the Company may impose stop-transfer
instructions with respect to the Option Shares until the end of the applicable stand-off period.
The Company’s underwriters shall be beneficiaries of the agreement set forth in this Section
10(b). This Section 10(b) shall not apply to the equity securities registered in an Initial
Public Offering.

     (c) Investment Intent. By accepting this Option and/or the Option Shares, the Optionee will
be deemed to represent, warrant and agree that, unless a registration statement is in effect with
respect to the offer and sale of such Option Shares, (i) neither this Option or the Option Shares
will be freely tradable and must be held indefinitely unless such Option and such Option Shares
are either registered under the Securities Act or an exemption from such registration is
available; (ii) the Company is under no obligation to register the Option or the Option Shares,
(iii) upon exercise of the Option, the Optionee will purchase any such Option Shares for his or
her own account and not with a view to distribution within the meaning of the Securities Act,
other than as may be effected in compliance with the Securities Act and the rules and regulations
promulgated thereunder; (iv) no one else will have any beneficial interest in the Option Shares;
(v) the Optionee has no present intention of Transferring the Option or Option Shares at any
particular time, and (vi) neither this Option nor the Option Shares have been registered or
qualified under the securities laws of any state and may only be offered and sold pursuant to an
exception from the registration or qualification under applicable state securities laws.

     (d) Non US Residents and Persons.

               If the Optionee is resident outside the United States (including its territories and
possessions, any of the several States of the United States and the District of Columbia) and the
Optionee is not a U.S. Person as defined in Rule 902(k) of Regulation S under the Securities Act,
the Optionee hereby represents and warrants to the Company, and shall represent and warrant to the
Company in the event that the Optionee elects to exercise the Option, that the grant of the Option
and the offer and sale of any Option Shares to the Optionee was made in an offshore transaction (as
defined in Rule 902(h) of Regulation S), no directed selling efforts (as defined in Rule 902(c) of
Regulation S) were made in the United States, and the Optionee is not acquiring the Option or the
Option Shares for the account or benefit of any U.S. Person and:

 

 

               (i) will not offer or sell any of the foregoing securities (or create or maintain any
derivative position equivalent thereto) in the United States, to or for the account or benefit of a
U.S. Person or other than in accordance with Regulation S; and

               (ii) will, after the expiration of the applicable restricted period under Regulation S, offer,
sell, pledge or otherwise transfer any Option Shares (or create or maintain any derivative position
equivalent thereto) only pursuant to registration under the Securities Act or any available
exemption therefrom and, in any case, in accordance with applicable securities laws.

(e) Legends. All certificates evidencing Option Shares shall bear the following legend:

“THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR
IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE
PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY
CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES. THE
SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT
TO THE HOLDER HEREOF WITHOUT CHARGE.”

     All certificates evidencing Option Shares shall bear the following legend (and such other
restrictive legends as are required or deemed advisable under the provisions of any applicable law)
unless such legend is not required in the opinion of the Company and its counsel to comply with the
requirements of applicable securities laws:

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER APPLICABLE STATE LAW, AND MAY NOT
BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS
COUNSEL, THAT SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.”

     If the Company and its counsel deem it to be advisable, in lieu of the legend set forth
directly above, certificates evidencing the Option Shares shall bear the legend set forth below
(and such other restrictive legends as are required or deemed advisable under the provisions of any
applicable law):

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION, AND THE COMPANY DOES NOT INTEND TO REGISTER THEM. PRIOR TO THE
FIRST ANNIVERSARY OF THE ORIGINAL ISSUANCE OF THE SHARES BY THE COMPANY, THE SHARES
MAY

 

 

NOT BE OFFERED OR SOLD (INCLUDING OPENING A SHORT POSITION IN SUCH SECURITIES) IN
THE UNITED STATES OR TO U.S. PERSONS AS DEFINED BY RULE 902(k) ADOPTED UNDER THE
ACT, OTHER THAN TO DISTRIBUTORS, UNLESS THE SHARES ARE REGISTERED UNDER THE ACT, OR
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT IS AVAILABLE. PURCHASERS
OF SHARES PRIOR TO PRIOR TO THE FIRST ANNIVERSARY OF THE ORIGINAL ISSUANCE OF THE
SHARES BY THE COMPANY, MAY RESELL SUCH SECURITIES ONLY PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE ACT OR OTHERWISE IN ACCORDANCE WITH THE PROVISIONS OF
REGULATION S OF THE ACT, OR IN TRANSACTIONS EFFECTED OUTSIDE OF THE UNITED STATES
PROVIDED THEY DO NOT SOLICIT (AND NO ONE ACTING ON THEIR BEHALF SOLICITS) PURCHASERS
IN THE UNITED STATES OR OTHERWISE ENGAGE(S) IN SELLING EFFORTS IN THE UNITED STATES
AND PROVIDED THAT HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE
CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT. A HOLDER OF THE SECURITIES WHO IS A
DISTRIBUTOR, DEALER, SUB UNDERWRITER OR OTHER SECURITIES PROFESSIONAL, IN ADDITION,
CANNOT PRIOR TO PRIOR TO THE FIRST ANNIVERSARY OF THE ORIGINAL ISSUANCE OF THE
SHARES BY THE COMPANY RESELL THE SECURITIES TO A U.S. PERSON AS DEFINED BY RULE
902(k) OF REGULATION S UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT OR AN
EXEMPTION FROM REGISTRATION UNDER THE ACT IS AVAILABLE OUTSIDE OF THE UNITED STATES
PROVIDED THEY DO NOT SOLICIT (AND NO ONE ACTING ON THEIR BEHALF SOLICITS) PURCHASERS
IN THE UNITED STATES.

     (f) Removal of Legends. If, in the opinion of the Company and its counsel, any legend placed
on a stock certificate representing Option Shares sold under this Agreement is no longer required,
the Holder shall be entitled to exchange such certificate for a certificate representing the same
number of Option Shares but without such legend.

     (g) Administration. Any determination by the Company and its counsel in connection with any
of the matters set forth in this Section 10 shall be conclusive and binding on the Optionee and
all other Holders or Transferees, or any other party claiming to derive rights by or through the
Optionee.

SECTION 11. RECAPITALIZATION EVENTS.

     In the event of any Recapitalization Event, the terms of this Option (including, without
limitation, the number and kind of Option Shares and the Exercise Price) shall be adjusted as set
forth in Section 6(a) of the Plan. Appropriate adjustments to reflect the distribution of such
securities or property shall be made to the number and kind of the Option Shares that are subject
to the Right of First Refusal.

 

 

SECTION 12. ISO PROVISIONS.

     (a) $100,000 Limitation. If this Option is designated as an ISO in the Grant Notice, then to
the extent (and only to the extent) that this Option otherwise would not be treated as an ISO by
reason of the $100,000 annual limitation under Section 422(d) of the Code, such portion of the
Option will be treated as a Nonstatutory Option.

     (b) Notice Concerning ISO Treatment. If this Option is designated as an ISO in the Grant
Notice, the Optionee acknowledges that this Option shall cease to qualify for favorable tax
treatment as an ISO to the extent it is exercised (i) more than three months after the date the
Optionee ceases to be an Employee for any reason other than death or Disability, (ii) more than 12
months after the date the Optionee ceases to be an Employee by reason of such Disability or (iii)
after the Optionee has been on a leave of absence from the Company for more than 90 days, unless
the Optionee’s reemployment rights with the Company are guaranteed by law or by contract.

SECTION 13. MISCELLANEOUS PROVISIONS.

     (a) Rights as a Shareholder. Neither the Optionee nor the Optionee’s representative shall
have any rights as a shareholder of the Company with respect to any Option Shares subject to this
Option until the Optionee or the Optionee’s representative becomes entitled to receive such Option
Shares by delivering a Notice of Exercise and paying the Purchase Price pursuant to Sections 4 and
5 above. If the Company exercises the Right of First Refusal in accordance with the terms and
conditions of Section 8 of this Agreement, then the Holder shall no longer have any rights as a
holder of such Option Shares purchased by the Company (other than the right to receive payment of
the consideration as set forth in Section 8). Such Option Shares shall be deemed to have been
repurchased in accordance with the applicable provisions hereof, whether or not the certificate(s)
or Stock Transfer Document(s) therefor have been delivered as required by this Agreement.

     (b) No Retention Rights. Nothing in this Agreement or in the Plan shall confer upon the
Optionee any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Company or of the Optionee, which rights are
hereby expressly reserved by each, to terminate his or her Service at any time and for any reason,
with or without cause.

     (c) Notice. Any notice required by the terms of this Agreement shall be given in writing and
shall be deemed effective upon personal delivery or upon deposit with the United States Postal
Service, by registered or certified mail, with postage and fees prepaid. Notice shall be
addressed to the Company at its principal executive office and to the Optionee at the address that
he or she most recently provided to the Company.

     (d) Specific Performance. Under those circumstances in which the Company chooses to timely
exercise its rights to purchase any Option Shares as provided herein, the Company will be entitled
to receive such Option Shares in specie in order to have the same available for future issuance
without dilution of the holdings of other shareholders of the Company. In consideration for this
Option and the Option Shares, the Optionee acknowledges and agrees that money damages will be
inadequate to compensate the Company and its shareholders if such a

 

 

purchase is not completed as contemplated hereunder or if the Optionee violates the
confidentiality provisions in the Plan or this Agreement, and that the Company will, in such case,
be entitled to a decree of specific performance of the terms hereof or to an injunction
restraining such Optionee (or upon death such Optionee’s personal representative) from violating
this Plan or Agreement, in addition to any other remedies that may be available to the Company at
law or in equity.

     (e) Entire Agreement. This Agreement, the Grant Notice and the Plan, together with any
exhibits and schedules attached thereto, constitute the entire contract between the parties hereto
with regard to the subject matter hereof. They supersede any other agreements, representations or
understandings (whether oral or written and whether express or implied) which relate to the
subject matter hereof.

     (f) Choice of Law. The internal laws of the State of California (irrespective of its choice
of law principles) will govern the validity of this Agreement, the construction of its terms and
the interpretation of the rights and duties of the parties hereunder. Any party may seek to
enforce its rights under this Agreement in any court of competent jurisdiction located within the
judicial district in which the Company has a regular place of business.

     (g) Confidentiality. Pursuant to Section 7(b) of the Plan, the Company may provide the
Optionee with certain financial and other proprietary information of the Company. By virtue of
entering into this Agreement, the Optionee agrees (and to cause any investment advisers to whom
the Optionee proposes to make such information available to agree) to keep such information
confidential and not to use, disclose or copy such information for any purpose whatsoever other
than determining whether to exercise this Option. The Company deems such information to be the
valuable trade secrets of the Company, and in the event of any wrongful use, disclosure or other
breach of the obligation to maintain the confidentiality of such financial and other proprietary
information, the Company may seek to enforce all of its available legal and equitable rights and
remedies, and may notify local law enforcement officials that a criminal misappropriation of the
Company’s trade secrets has taken place.

     (h) Hold Harmless. Optionee hereby acknowledges and agrees that the determination of
“fair market value” for purposes of Section 409A and other sections of the Code for a
privately-held corporation with illiquid shares is necessarily uncertain at the time of grant
of this Option and the determination of whether the exercise price per share of this Option is
at a discount from such “fair market value” and the size of any such discount has been made in
good faith by the Company and any person or persons retained by the Company to determine or
assist in determining such “fair market value” (whether compensated or not for such service).
Therefore, Optionee freely acknowledges and agrees to hold the Company and all such persons
(including, without limitation, Directors, Consultants, and Employees and any advisors or other
parties related or retained by the foregoing or the Company) harmless from any liability
Optionee may have under Section 409A of the Code or any other section of the Code due to the
determination of such “fair market value” to the maximum extent permitted by applicable law.

 

 

SECTION 14. DEFINITIONS.

     (a) “Agreement” shall mean the Grant Notice between the Company and the Optionee together
with this Stock Option Agreement between the Company and the Optionee, together with the exhibits
and attachments hereto.

     (b) “Completed Transfer Notice” shall have the meaning as set forth in Section 8(d) above.

     (c) “Disability” shall mean total and permanent disability within the meaning of Section
22(e)(3) of the Code.

     (d) “Grant Notice” shall have the meaning as set forth in Section 1 above.

     (e) “Holder” shall mean the registered holder of any Option Shares originally issued pursuant
to the exercise of this Option or in connection with any Recapitalization Event, including any
Transferee.

     (f) “Market Stand-Off” shall have the meaning as set forth in Section 10(b) above.

     (g) “Notice of Exercise” shall have the meaning as set forth in Section 4(a) above.

     (h) “Notice of Exercise of the Right of First Refusal” shall have the meaning as set forth in
Section 8(c) above.

     (i) “Optionee” for purposes of this Agreement shall mean the party named as such in this
Agreement and the Grant Notice (or the permitted transferee of this Option pursuant to Section 3
above).

     (j) “Option Shares” shall mean any Offered Shares originally issued upon the exercise of this
Option, together with any additional Shares or other securities or rights to acquire Shares or
other securities, issued or issuable by the Company in respect of such originally issued Offered
Shares, or subsequently issued Shares, or other securities, resulting from or arising out of a
Recapitalization Event.

     (k) “Permitted Transfer” shall mean (i) upon the death of a Holder, a Transfer by will or
under the laws of descent and distribution; or (ii) a Transfer by a Holder to his or her
ancestors, descendants or spouse (other than pursuant to a decree of divorce, dissolution or
separate maintenance, a property settlement, or a separation agreement or any similar agreement or
arrangement with a spouse, except for bona fide estate planning purposes), or to a trust,
partnership, limited liability company, custodianship or other fiduciary account for the benefit
of the Holder and/or such ancestors, descendants or spouse, including any Transfer in the form of
a distribution from any such trust, partnership, limited liability company, custodianship or other
fiduciary account to any of the foregoing permitted beneficial owners or beneficiaries thereof.

     (l) “Purchase Price” shall mean the Exercise Price multiplied by the number of Shares with
respect to which this Option is being exercised.

 

 

     (m) “Right of First Refusal” shall have the meaning as set forth in Section 8(a) of this
Agreement.

     (n) “Share Transfer Documents” shall have the meaning as set forth in Section 4(c) above.

     (o) “Transferee” shall mean any party to whom the Optionee, or any subsequent Holder,
directly or indirectly, Transfers any Option Shares originally acquired upon the exercise of this
Option or subsequently acquired in connection with any Recapitalization Event.

     (p) “Transfer Notice” shall mean the notice of a proposed Transfer of Shares described in
Section 8(b) of this Agreement.

     (q) “Voluntary Transfer” shall have the meaning as set forth in Section 8(a) of this
Agreement.

 

 

Stock Power And Assignment

Separate From Stock Certificate

FOR VALUE RECEIVED and pursuant to the Stock Option Agreement under the 2001 Second Amended and
Restated Stock Option Plan, (the “Agreement”), the undersigned hereby sells, assigns and transfers
unto                                                             ,
                    
shares of the Common Stock of Glu Mobile Inc., a
California corporation (the “Company”), standing in the undersigned’s name on the books of the
Company represented by Certificate No(s). ___ delivered herewith, and does hereby irrevocably
constitute and appoint the Secretary of the Company as the undersigned’s attorney-in-fact, with
full power of substitution, to transfer said stock on the books of the Company. THIS
ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY
EXHIBITS THERETO.

	 	 	 	 	 	 	 
	Dated:

	 	 

	 	  
	 	  
	 
	 	 	 	 	 	 
	 

	 	 	 	PURCHASER
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

(Signature)
	 	  
	 
	 	 	 	 	 	 
	 

	 	 	 	 

(Please Print Name)
	 	  
	 
	 	 	 	 	 	 
	 

	 	 	 	 

(Spouse’s Signature, if any)
	 	  
	 
	 	 	 	 	 	 
	 

	 	 	 	 

(Please Print Spouse’s Name)
	 	  

Instructions to Purchaser: Please do not fill in any blanks other than the signature line.
The purpose of this Stock Power and Assignment is to enable the Company to acquire the shares
pursuant to its “Repurchase Option,” if any, and “Right of First Refusal” set forth in the Exercise
Agreement without requiring additional signatures on the part of the Purchaser or Purchaser’s
Spouse.

 

 

 

	 	 	 
	 

	 	Glu Mobile Inc.
	 

	 	ID: 91-2143667
	Notice of Grant of Stock Options

and Option Agreement

	 	1800 Gateway Dr., Suite 200

San Mateo, CA 94404

 

	 	 	 	 	 
	Employee

	 	Option Number:
	 	00000XXX
	Street

	 	Plan:
	 	2001 
	City, State United States Zip

	 	ID:
	 	000-00-0000 

 

Effective xx/xx/200X, you (the “Optionee”) have been granted a(n) Incentive Stock Option to buy x
shares of Glu Mobile Inc. (the Company) stock at x per share.

The total option price of the shares granted is $x.00

Shares in each period will become fully vested and exercisable on the date shown.

	 	 	 	 	 	 	 
	Shares	 	Vest Type	 	Full Vest	 	Expiration
	XXXX

	 	On Vest Date
	 	mm/dd/yyyy
	 	mm/dd/yyyy
	XXXX

	 	On Vest Date
	 	mm/dd/yyyy
	 	mm/dd/yyyy
	XXXX

	 	Monthly
	 	mm/dd/yyyy
	 	mm/dd/yyyy

 

By your signature and the Company’s signature below, you and the Company agree that these options
are granted under and governed by the terms and conditions of the Company’s Stock Option Plan as
amended and the Option Agreement, all of which are attached and made a part of this document.

 

	 	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	Glu Mobile Inc.

	 	Date
	 
	 	 
	 
	 	 
	 

	 	 
	Name

	 	Date

 

Notice of Stock Option Exercise

Glu Mobile inc.

2001 Second Amended and Restated Stock Option Plan

     The undersigned Optionee hereby elects to exercise the Optionee’s Option to purchase common
stock of Glu Mobile Inc., a California corporation (the “Company”), pursuant to the Company’s 2001
Second Amended and Restated Stock Option Plan (the “Plan”) and the related Stock Option Agreement
entered into between the Optionee named below and the Company pursuant the Plan, as detailed below
(the “Agreement”). Capitalized terms not otherwise defined in this document shall have the
meanings set forth in the Plan and the Agreement.

Optionee Information

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 

	 	 	 	 	 
	Social Security Number:
	 	 	 	 
	 

	 	 

	 	 

Option Information

	 	 	 	 	 
	Grant Date:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Exercise Price per Share:

	 	$
 

	 	 

	 	 	 	 	 
	Total number of Offered Shares subject to the Option:
	 	 	 	 
	 

	 	 

	 	 

Exercise Information

	 	 	 	 	 
	Date of Exercise:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Number of Offered Shares for which the Option is being exercised now (“Purchased Shares”):
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Total Purchase Price for the Purchased Shares:

	 	$
 

	 	 

Form of payment enclosed [check all that apply]:

	 	 	 	 	 	 	 
	 	 	o	 	Check for $________.___ made payable to the Company.
	 
	 	 	 	 	 	 
	 	 	o	 	Any other form of payment that the Plan Administrator has approved.
	 
	 	 	 	 	 	 
	 

	 	 
	 	Specify:	 	 
	 

	 	 	 	 	 	 

Optionee acknowledges that the Company may need to make arrangements for the satisfaction of any
federal, state, local or foreign withholding tax obligations in connection with the exercise of
this Option or the disposition of the Purchased Shares, and Optionee agrees to comply with the
instructions made by the Plan Administrator to satisfy the above-referenced withholding tax
obligations. The Optionee also acknowledges that the Purchased Shares have not been registered
under the Securities Act of 1933 or qualified under applicable state law and may not be Transferred
except (a) in compliance with the terms of the Agreement, which grants certain rights of repurchase
and/or rights of first refusal to the Company upon an attempted Transfer of the Purchased Shares,
and (b) with an effective registration statement filed under the Securities Act or any similar laws
in a foreign jurisdiction or an opinion of counsel, satisfactory to the Company and its counsel,
that registration and/or qualification of such Purchased Shares are not required.

 

 

A copy of the Grant Notice from which this Option is being exercised is attached to this Notice of
Stock Option Exercise. If Optionee is married, the Consent of Spouse set forth below must be
completed by Optionee’s spouse.

The Optionee understands and agrees that the certificate(s) for Purchased Shares will be held in
escrow by the Secretary of the Company in accordance with Section 4(c) of the Agreement.
Photocopies of the certificate(s) for the Purchased Shares should be sent to the following address:

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 	 	Optionee Signature:
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Print Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Dated:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Signature of Optionee’s representative (if Optionee
is deceased or incapacitated):
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	Print Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Dated:	 	 
	 

	 	 	 	 

***********************************************

CONSENT OF SPOUSE

     I acknowledge that I have read the foregoing Notice of Stock Option Exercise, along with the
Agreement and the Plan referenced herein, and that I know the contents of such documents. I am
aware that by its provisions any interest I may have in the Company, as community property or
otherwise, may be sold or otherwise transferred on the occurrence of certain events. I hereby
consent to such sale or transfer, approve of the provisions of the Agreement and agree that any
interest I may have in the Company is subject to the provisions of the Agreement and that I will
take no action at any time to hinder the operation of the Agreement with respect to the sale or
transfer of any such interest.

     I acknowledge that I have been given an opportunity to consult an attorney. I have either
consulted with an attorney or I have voluntarily decided not to consult with an attorney regarding
my rights under the Agreement. I realize that the Company is relying upon my consent in entering
into the Agreement.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Spouse Signature:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Print Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Dated:exv10w25

 

Exhibit 10.25

 

SORRENT, INC.

SERIES D PREFERRED STOCK PURCHASE AGREEMENT

April 25, 2005

 

 

 

SORRENT, INC.

SERIES D PREFERRED STOCK PURCHASE AGREEMENT

     THIS SERIES D PREFERRED STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of April 25,
2005, by and among Sorrent, Inc., a California corporation (the “Company”), and the purchasers of
the Company’s Series D Preferred Stock (individually, the “Purchaser” and collectively, the
“Purchasers”) identified on the Schedule of Purchasers attached hereto as Exhibit A (the
“Schedule of Purchasers”).

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual promises and covenants herein, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. Authorization and Sale of Series D Preferred Stock.

          1.1 Authorization of Series D Preferred Stock. The Company has authorized the sale and
issuance to the Purchasers a total of 8,305,642 shares (the “Shares”) of its Series D Preferred
Stock (the “Series D Preferred”) at a per share purchase price of $3.01 (the “Per Share Price”),
having the rights, preferences, privileges and restrictions as set forth in the Amended and
Restated Articles of Incorporation of the Company (the “Restated Articles”), substantially in the
form attached hereto as Exhibit B.

          1.2 Sale and Issuance of Series D Preferred. Subject to the terms and conditions hereof, the
Company will issue and sell to each Purchaser, and each Purchaser, severally and not jointly, will
buy from the Company, the number of Shares specified opposite the name of such Purchaser in the
column designated “Number of Shares” at the aggregate purchase price specified opposite the name of
such Purchaser in the column designated “Purchase Price” on the Schedule of Purchasers. The
Company’s agreement with each Purchaser is a separate agreement, and the sale of the Shares to each
Purchaser is a separate sale.

          1.3 Use of Proceeds from Sale of Stock. The net proceeds from the sale of the Shares issued
by the Company shall be used for general corporate purposes, including working capital.

     2. Closing Date; Delivery. 

          2.1 Closing.

          (a) The initial closing of the purchase and sale of the Shares hereunder (the “Initial
Closing”) shall be held at the offices of Fenwick & West LLP, Silicon Valley Center, 801 California
Street, Mountain View, California 94041, on April 25, 2005, at 10:00 a.m., local time, concurrently
with the execution of this Agreement or at such other date, time and place upon which the Company
and the Purchasers identified underneath the heading Initial Closing on the Schedule of Purchasers
(the “Initial Purchasers”) shall mutually agree. The date of the Initial Closing shall hereinafter
be referred to as the “Initial Closing Date.”

 

 

          (b) A subsequent closing of the purchase and sale of the Shares hereunder (the “Subsequent
Closing”) shall be held at the offices of Fenwick & West LLP, Silicon Valley Center, 801 California
Street, Mountain View, California 94041, such date, time and place upon which the Company and the
Purchasers purchasing Shares at the Subsequent Closing (the “Subsequent Purchasers”) shall mutually
agree. The date of the Subsequent Closing shall hereinafter be referred to as the “Subsequent
Closing Date”.

          The “Closing” shall hereinafter refer to both the Initial Closing and the Subsequent Closing,
and the “Closing Date” shall hereinafter refer to both the Initial Closing Date and the Subsequent
Closing Date.

          2.2 Delivery and Payment.

          (a) At the Initial Closing, the Company shall deliver to each Initial Purchaser a certificate
or certificates representing the number of Shares set forth opposite the name of such Initial
Purchaser in the column designated “Number of Shares” on the Schedule of Purchasers, against
delivery to the Company by such Initial Purchaser at the Initial Closing of (a) executed
counterparts of this Agreement, the Amended and Restated Investors’ Rights Agreement dated as of
the date hereof by and among the Company and the Investors (as defined therein), including the
Purchasers, the form of which is attached hereto as Exhibit C (the “Investors’ Rights
Agreement”), the Amended and Restated Right of First Refusal and Co-Sale Agreement dated as of the
date hereof by and among the Company, the Shareholders (as defined therein) and the Investors (as
defined therein), including the Purchasers, the form of which is attached hereto as Exhibit
D (the “Co-Sale Agreement”), the Amended and Restated Voting Agreement dated as of the date
hereof by and among the Company, the Shareholders and the Investors (as defined therein), including
the Purchasers, the form of which is attached hereto as Exhibit E (the “Voting Agreement”
and, together with this Agreement, the Investors’ Rights Agreement and the Co-Sale Agreement, the
“Investment Agreements”); and (b) payment of the purchase price therefor, by (i) check payable to
the Company, (ii) wire transfer made pursuant to the Company’s instructions, (iii) cancellation of
indebtedness of the Company to such Initial Purchaser, or (iv) any combination of the foregoing, in
the amount set forth opposite the name of such Initial Purchaser in the column designated “Purchase
Price” on the Schedule of Purchasers.

          (b) At the Subsequent Closing, the Company shall deliver to the Subsequent Purchasers a
certificate or certificates representing the number of Shares set forth opposite the name of such
Subsequent Purchaser in the column designated “Number of Shares” on the Schedule of Purchasers,
underneath the heading Subsequent Closing, against delivery to the Company by the Subsequent
Purchaser at the Subsequent Closing of (a) executed counterparts of this Agreement and each of the
Investment Agreements; and (b) payment of the purchase price therefor, by (i) check payable to the
Company, (ii) wire transfer made pursuant to the Company’s instructions, (iii) cancellation of
indebtedness of the Company to the Subsequent Purchasers, or (iv) any combination of the foregoing,
in the amount set forth opposite the name of the Subsequent Purchasers in the column designated
“Purchase Price” on the Schedule of Purchasers, underneath the heading Subsequent Closing.

     3. Representations and Warranties of the Company. Except as set forth on Exhibit F
attached hereto (which schedule is referred to from time to time hereinafter as the “Disclosure

-2-

 

Schedule”), the Company represents and warrants to the Purchasers that the following items are
true and correct immediately prior to the Initial Closing and the Subsequent Closing, provided,
however, that items that speak specifically “as of the Initial Closing” or “as of the Subsequent
Closing” shall be true and correct as of the Initial Closing or the Subsequent Closing, as the case
may be:

          3.1 Organization, Good Standing and Qualification. The Company has been duly incorporated and
organized, and is validly existing in good standing, under the laws of the State of California.
The Company is not qualified to conduct business as a foreign corporation in any jurisdiction, and
such qualification is not currently required in any jurisdiction in which the failure to do so
would have a material adverse effect on the Company. The Company has the corporate power and
authority to enter into and perform the Investment Agreements and any other agreement to which the
Company is a party, the execution and delivery of which is contemplated hereby, to sell and issue
the Shares hereunder, to issue the Common Stock of the Company issuable upon conversion of the
Shares (the “Conversion Stock”), and to own and operate its properties and assets and to carry on
its business as currently conducted and as presently proposed to be conducted.

          3.2 Capitalization. The authorized and issued capital stock of the Company will, upon filing
of the Restated Articles, consist of: (i) 68,500,000 shares of Common Stock authorized, of which
14,779,024 shares are issued and outstanding; (ii) 6,940,096 shares of Series A Preferred Stock
authorized, all of which are issued and outstanding, (iii) 8,962,036 shares of Series B Preferred
Stock authorized, of which 8,593,750 are issued and outstanding, (iv) 12,046,016 shares of Series C
Preferred authorized, all of which are issued and outstanding, and (v) 8,600,000 shares of Series D
Preferred authorized, of which no shares are issued and outstanding as of the Initial Closing. All
issued and outstanding shares of Common Stock have been duly authorized and validly issued, and are
fully paid and non-assessable and have been issued in compliance with all applicable state and
federal laws concerning the issuance of securities. The Company has issued and outstanding
warrants to purchase an aggregate of 368,286 shares of Series B Preferred and 60,000 shares of
Common Stock. The Company has adopted and reserved 9,244,922 shares of Common Stock under its
Second Amended and Restated 2001 Stock Option Plan (the “Plan”) as of the date hereof, of which (i)
options to purchase 5,098,698 shares of Common Stock have been granted and are currently
outstanding as of the date hereof and (ii) 2,182,916 shares of Common Stock have been issued under
the Plan and are currently outstanding. The holders of record of the presently issued and
outstanding Common Stock immediately prior to the Closing are set forth in the Disclosure Schedule.
Except as described in this Section 3.2 on the Disclosure Schedule, there are no options, rights,
warrants or convertible securities to purchase or acquire from the Company any of its shares of
capital stock. The rights, preferences, privileges and restrictions of the Common Stock and of the
Preferred Stock are as stated in the Restated Articles. Each outstanding series of Preferred Stock
is convertible into Common Stock on a one-for-one basis as of the date hereof and the consummation
of the transactions contemplated hereunder will not result in any anti-dilution adjustment or other
similar adjustment to the outstanding shares of Preferred Stock. Except as set forth in the
Investors’ Rights Agreement, the Co-Sale Agreement and the Voting Agreement, no holder of shares of
Common Stock or any other security of the Company or any other person is entitled to any preemptive
right, right of first refusal or similar right as a result of the issuance of the securities or
otherwise, or any voting trust, agreement or arrangement among any of the

-3-

 

holders of voting stock of the Company affecting the exercise of the voting rights of such
stock. Except as set forth on the Schedule of Exceptions, all options granted and Common Stock
issued vest as follows: twenty-five percent (25%) of the shares vest one (1) year following the
vesting commencement date, with the remaining seventy-five percent (75%) vesting in equal monthly
installments over the next three (3) years. No stock plan, stock purchase, stock option or other
agreement or understanding between the Company and any holder of any equity securities or rights to
purchase equity securities provides for acceleration or other changes in the vesting arrangements
of such agreement or understanding. All outstanding shares of Common Stock and Preferred Stock,
and all shares of Common Stock and Preferred Stock issuable upon the exercise or conversion of
outstanding options, warrants or other exercisable or convertible securities are subject to a
market standoff or “lockup” agreement of not less than 180 days following the Company’s initial
public offering.

          3.3 Subsidiaries. The Company does not presently own or control, directly or indirectly, any
interest in any other corporation, partnership, trust, joint venture, association or other entity.

          3.4 Due Authorization. All corporate action on the part of the Company’s directors and
shareholders necessary for the authorization, execution, delivery of, and the performance of all
obligations of the Company under the Investment Agreements have been taken or will be taken prior
to the Closing, and the Investment Agreements will constitute, valid and legally binding
obligations of the Company, enforceable in accordance with their respective terms, except as may be
limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, or other laws of general application relating to or affecting the enforcement of
creditors’ rights generally, (b) the effect of rules of law governing the availability of specific
performance, injunctive relief, or other equitable remedies, and (c) and other equitable remedies
and limitations of public policy as applied to Section 5.7 of the Investors’ Rights Agreement.

          3.5 Valid Issuance of Securities.

          (a) The Shares, when issued, sold and delivered in accordance with the terms of this Agreement
for the consideration expressed herein and therein, will be duly and validly issued, fully paid,
and nonassessable, and will be free of restrictions on transfer other than restrictions on transfer
under applicable state and federal securities laws and under the Investment Agreements. The issued
and outstanding shares of the Company’s Common Stock, Series A Preferred Stock, Series B Preferred
Stock, Series C Preferred Stock and Common Stock issuable upon conversion of the Series A Preferred
Stock, Series B Preferred Stock and Series C Preferred Stock, are duly and validly issued, fully
paid, and nonassessable. The Conversion Stock has been duly and validly reserved for issuance and,
upon issuance, will be duly and validly issued, fully paid, and nonassessable and will be free of
restrictions on transfer other than restrictions on transfer under applicable state and federal
securities laws.

          (b) Based in part on the representations made by the Purchasers in Section 4 hereof, the offer
and sale of the Shares in accordance with this Agreement and the issuance of the Conversion Stock
issuable upon conversion of the Shares, are exempt from the registration and

-4-

 

prospectus delivery requirements of the Securities Act of 1933, as amended (the “Securities
Act”) and applicable state securities laws. The issued and outstanding shares of the Company’s
Common Stock, Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and
Common Stock issuable upon conversion of the Series A Preferred Stock, Series B Preferred Stock and
Series C Preferred Stock, were issued and will be issued pursuant to exemptions from the
registration and prospectus delivery requirements of the Securities Act and applicable state
securities laws.

          3.6 Governmental Consents. No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, state or local governmental
authority is required on the part of the Company in order to enable the Company to execute, deliver
and perform its obligations under the Investment Agreements, except for such
qualifications or filings under applicable securities laws as may be required in connection with
the transactions contemplated by this Agreement. All such qualifications and filings will, in the
case of qualifications, be effective on the Initial Closing or the Subsequent Closing, as
appropriate, and will, in the case of filings, be made within the time prescribed by law.

          3.7 Litigation. There is no action, suit, proceeding or investigation pending or, to the
Company’s knowledge, currently threatened against the Company that questions the validity of the
Investment Agreements, or the right of the Company to enter into such agreements, or to consummate
the transactions contemplated hereby or thereby, or that might result, either individually or in
the aggregate, in any material adverse changes in the assets, condition or affairs of the Company,
financially or otherwise, when taken as a whole, or any change in the current equity ownership of
the Company. The foregoing includes, without limitation, actions, suits, proceedings or
investigations pending or threatened involving the prior employment of any of the Company’s
employees, their use in connection with the Company’s business of any information or techniques
allegedly proprietary to any of their former employers, or their obligations under any agreements
with prior employers. The Company is not a party or subject to the provisions of any order, writ,
injunction, judgment or decree of any court or government agency or instrumentality. There is no
action, suit, proceeding or investigation by the Company currently pending or that the Company
intends to initiate.

          3.8 Proprietary Information and Inventions Agreement. Each present and former officer,
employee and consultant of the Company has entered into and executed a Proprietary Information and
Inventions Agreement in the form made available to the Purchasers. The Company, after reasonable
investigation, is not aware that any of its officers, employees or consultants is in violation of
the Proprietary Information and Inventions Agreement entered into by such officer, employee or
consultant and the Company, and no such present or former officer, employee or consultant has
excluded works or inventions from such officer’s, employee’s or consultant’s Proprietary
Information and Inventions Agreement. The Company, to the best of its knowledge, does not know of
the impending resignation or termination of any employment of any officer.

          3.9 Status of Proprietary Assets. To the best of its knowledge with respect to patents,
inventions, trademarks, service marks and trade names only, the Company has title and ownership of,
or all necessary rights with respect to, all patents, inventions, trademarks, service marks, trade
names, works of authorship (including software), copyrights, confidential

-5-

 

information, trade secrets, and other non-patentable proprietary rights and processes that the
Company reasonably believes are necessary for its business as now conducted and as proposed to be
conducted (“Intellectual Property”), and without infringement of any patent rights or infringement
or misappropriation of other intellectual property rights of others. Except as set forth in
Section 3.9 of the Disclosure Schedule, there are no outstanding options, licenses or agreements of
any kind relating to the Intellectual Property, nor is the Company bound by or a party to any
options, licenses or agreements of any kind with respect to the inventions, patents, trademarks,
service marks, trade names, works of authorship (including software), copyrights, trade secrets,
information, proprietary rights or processes of any other person or entity, excluding any licenses
for off-the-shelf software. The Company has not received any communications alleging that the
Company has violated or, by conducting its business as currently conducted and as proposed to be
conducted, would violate any patents, trademarks, service marks, trade names, copyrights or trade
secret rights or other proprietary rights of any other person or entity, nor is the Company aware
of any basis therefor. Set forth in Section 3.9 of the Disclosure Schedule is a list of the
Company’s patents, patent applications, copyrights, copyright applications, trademarks and
trademark applications. The Company, after reasonable investigation, is not aware that any of its
employees is obligated under any contract (including licenses, covenants or commitments of any
nature) or other agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would interfere with his or her duties for the Company or that would
conflict with the Company’s business as currently conducted and as proposed to be conducted.
Neither the execution nor delivery of this Agreement, nor the carrying on of the Company’s business
by the employees of the Company, nor the conduct of the Company’s business as proposed, will, to
the Company’s knowledge after reasonable investigation, conflict with or result in a breach of the
terms, conditions or provisions of, or constitute a default under, any contract, covenant or
instrument under which any of such employees is now obligated. The Company does not believe it is
or will be necessary to utilize any inventions of any of its employees (or people it currently
intends to hire) made prior to or outside the scope of their employment by the Company. The
Company is not subject to any “open source” or “copyleft” obligations or otherwise required to make
any public disclosure or general availability of source code either used or developed by the
Company.

          3.10 Compliance with Law and Documents. The Company is not in material violation of: (a) any
term of its Articles of Incorporation, as amended, or Bylaws; (b) any term or provision of any
mortgage, indebtedness, indenture, contract, agreement, instrument, judgment or decree; and (c) any
order, statute, rule or regulation applicable to the Company. The execution, delivery and
performance of the Investment Agreements and the consummation of the transactions contemplated
hereby and thereby will not result in any such violation or default, or be in conflict with or
result in a violation or breach of, with or without the passage of time and the giving of notice,
any judgment, order or decree of any court or arbitrator to which the Company is a party or is
subject, any agreement or contract of the Company, or, to the Company’s knowledge, a violation of
any statute, law, regulation or order, or an event which results in the creation of any lien,
charge or encumbrance upon any asset of the Company.

          3.11 Related-Party Transactions. There are no agreements, understandings or proposed
transactions between the Company and any of its employees, officers, directors, affiliates, or any
affiliate thereof. No employee, officer or director of the Company or member of his or her
immediate family is indebted to the Company, nor is the Company indebted (or

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committed to make loans or extend or guarantee credit) to any of them. To the best of the
Company’s knowledge, none of such persons has any direct or indirect ownership in any firm or
corporation with which the Company is affiliated or with which the Company has a business
relationship, or any firm or corporation that competes with the Company, except that employees,
officers or directors of the Company and members of their immediate families may own stock in (but
not exceeding two percent of the outstanding capital stock of) any publicly traded company that may
compete with the Company. No employee, officer or director or any member of their immediate
families is, directly or indirectly, interested in any material contract with the Company. The
Company is not a guarantor or indemnitor of any indebtedness of any other person, firm, or
corporation.

          3.12 Permits. The Company has obtained all franchises, permits, licenses and any similar
authority necessary for the conduct of its business as now being conducted by it, the lack of which
could materially and adversely affect the business, properties, prospects or financial condition of
the Company and believes it can obtain, without undue burden or expense, any similar authority for
the conduct of its business as planned to be conducted. The Company is not in default in any
material respect under any of such franchises, permits, licenses or other similar authority.

          3.13 Registration Rights and Other Shareholder Rights. Except as set forth in the Investors’
Rights Agreement, the Company is not under any obligation to register under the Securities Act any
of its currently outstanding securities or any securities issuable upon exercise or conversion of
its currently outstanding securities nor is the Company obligated to register or qualify any such
securities under the securities laws of any state of the United States. Except for the Voting
Agreement, the Company is not a party to any voting or similar agreements related to the Company’s
securities which are presently outstanding or that may hereafter be issued.

          3.14 Title to Property and Assets. The properties and assets the Company owns are owned by
the Company free and clear of all mortgages, deeds of trust, liens, encumbrances and security
interests except for statutory liens for the payment of current taxes that are not yet delinquent
and liens, encumbrances and security interests which arise in the ordinary course of business and
which do not affect material properties and assets of the Company. With respect to the property
and assets it leases, the Company is in compliance with such leases and, to its knowledge, holds a
valid leasehold interest free of any liens, claims or encumbrances.

          3.15 Financial Statements. The Company has delivered to each Purchaser its unaudited
financial statements (balance sheet and statements of income and cash flows) as at and for the
twelve-month period ended December 31, 2004, and its unaudited financial statements (balance sheet
and statements of income and cash flows) as at and for the two-month period ended February 28, 2005
(collectively, the “Financial Statements”). The unaudited Financial Statements are complete and
correct in all material respects, and fairly present the financial condition and operating results
of the Company as of February 28, 2005 (the “Statement Date”). The audited Financial Statements
fairly present the financial condition and operating results of the Company as of the dates, and
for the periods, indicated therein and have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis

-7-

 

throughout the periods indicated and with each other. Except as disclosed in the Financial
Statements, the Company is not a guarantor or indemnitor of any indebtedness of any other person,
firm or corporation. The Company maintains and will continue to maintain a standard system of
accounting established and administered in accordance with generally accepted accounting
principles.

          3.16 Tax Returns, Payments and Elections. The Company has filed all tax returns and reports
required by law to be filed by the Company. These returns and reports are true and correct in all
material respects. The Company has paid all taxes and other assessments due. The provision for
taxes of the Company is adequate for taxes due or accrued as of the date thereof. The Company has
not elected pursuant to the Internal Revenue Code of 1986, as amended (the “Code”), to be treated
as an S corporation, nor has it made any other elections pursuant to the Code (other than elections
which relate solely to methods of accounting, depreciation or amortization) which would have a
material adverse effect on the Company, its financial condition, its business as presently
conducted or proposed to be conducted or any of its material properties or material assets. The
Company has never had a tax deficiency or tax audit and the Company has made all withholdings or
collections for all taxes, including, without limitation, federal and state income taxes, Federal
Insurance Contribution Act taxes and federal and state unemployment taxes, of its employees. The
Company is not and has not been delinquent in the payment of any tax, assessment or governmental
charge. The Company has never had any tax deficiency proposed or assessed against it and has not
executed any waiver of any statute of limitations on the assessment or collection of any tax or
governmental charge which had a material adverse effect on the financial condition and business
prospect of the Company. None of the Company’s federal income tax returns nor any state income or
franchise tax returns have ever been audited by governmental authorities.

          3.17 Absence of Material Liabilities. The Company has no liabilities, obligations or
indebtedness (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to
become due) except: (i) those fully described and listed on the Financial Statements and
Disclosure Schedule; and (ii) those incurred by the Company in the ordinary course of its business
since its inception and which do not in the aggregate exceed fifty thousand dollars ($50,000),
which, in both cases, individually or in the aggregate, are not material to the financial condition
or operating results of the Company.

          3.18 Contracts. Except as set forth in this Agreement, and as disclosed in the Disclosure
Schedule, the Company has no currently existing contract, obligation, agreement, plan, arrangement,
commitment or the like (written or oral) of any material nature, including, without limitation, the
following:

               (i) employment, bonus, pension, profit sharing, deferred compensation, stock bonus,
retirement, stock option, stock purchase, phantom stock or similar plans, including agreements
evidencing rights to purchase securities of the Company and agreements among the Company’s
shareholders and the Company;

               (ii) loan agreements, notes, indentures or instruments relating to or evidencing indebtedness
for borrowed money, or mortgaging, pledging or granting or creating a lien or security interest or
other encumbrance on any of the Company’s property or any

-8-

 

agreement or instrument evidencing any guaranty by the Company of payment or performance by
any other person;

               (iii) agreements with dealers, sales representatives, brokers or other distributors,
advertisers or sales agencies;

               (iv) agreements with any labor union or collective bargaining organization or other labor
agreements;

               (v) any contract or series of contracts with the same person for the furnishing or purchase of
machinery, equipment, goods or services, including, without limitation, agreements with equipment
lessors, processors, subcontractors, consultants and developers;

               (vi) licenses of any patent, copyright, trade secret or other proprietary right to or from the
Company;

               (vii) any joint venture contract or arrangement or other agreement involving a sharing of
profits or expenses or pursuant to which the Company has granted rights to manufacture, produce,
assemble, license, market or sell its products to any other person or that affects the Company’s
exclusive rights to develop, manufacture, assemble, distribute and sell its products and services;

               (viii) agreements limiting the ability of the Company to compete in any line of business or in
any geographic area or with any person;

               (ix) agreements providing for disposition of the business, assets or shares of capital stock
of the Company (other than provided for herein), agreements of merger or consolidation to which the
Company is a party or letters of intent with respect to any of the foregoing;

               (x) letters of intent or agreements with respect to the acquisition of the business, assets or
shares of any other business;

               (xi) agreements for the purchase of material fixed assets or for the purchase of materials,
supplies or equipment in excess of normal operating requirements;

               (xii) agreements granting any preemptive right, right of first refusal or similar right to any
person;

               (xiii) agreements obligating the Company to pay any royalty or similar charge for use or
exploitation of any tangible or intangible property;

               (xiv) covenants not to compete or other restriction on the Company’s ability to conduct its
business or engage in any other activity; and

               (xv) other agreements not made in the ordinary course of business that are material to the
Company; the Company has complied with all the material provisions of all

-9-

 

said contracts, obligations, agreements, plans, arrangements and commitments set forth in the
Disclosure Schedule and is not in default in any material respect thereunder.

          3.19 Minute Books. The minute books of the Company provided to the Purchasers contain a
complete summary of all meetings of directors and shareholders since the time of incorporation and
reflect all transactions referred to in such minutes accurately in all material respects.

          3.20 Section 83(b) Elections. To the best of the Company’s knowledge, all individuals who
have purchased unvested shares of the Company’s Common Stock have timely filed elections under
Section 83(b) of the Internal Revenue Code and any analogous provisions of applicable state tax
laws.

          3.21 Labor Agreements and Actions; Employee Compensation. The Company is not bound by or
subject to (and none of its assets or properties is bound by or subject to) any written or oral,
express or implied, contract, commitment or arrangement with any labor union, and no labor union
has requested or, to the Company’s knowledge, has sought to represent any of the employees,
representatives or agents of the Company. There is no strike or other labor dispute involving the
Company pending, or to the Company’s knowledge, threatened, that could have a material adverse
effect on the assets, properties, financial condition, operating results, or business of the
Company (as such business is presently conducted and as it is proposed to be conducted), nor is the
Company aware of any labor organization activity involving its employees. The Company is not aware
that any officer or key employee, or that any group of key employees, intends to terminate their
employment with the Company, nor does the Company have a present intention to terminate the
employment of any of the foregoing. The employment of each officer and employee of the Company is
terminable at the will of the Company. To its knowledge, the Company has complied in all material
respects with all applicable state and federal equal employment opportunity and other laws related
to employment. The Company is not a party to or bound by any currently effective employment
contract, deferred compensation agreement, bonus plan, incentive plan, profit sharing plan,
retirement agreement, or other employee compensation agreement.

          3.22 Obligations of Management. Each officer and key employee of the Company is currently
devoting substantially all of his or her business time to the conduct of the business of the
Company. The Company is not aware that any officer or key employee of the Company is planning to
work less than full time at the Company in the future. No officer or key employee is currently
working or, to the Company’s knowledge, plans to work for a competitive enterprise, whether or not
such officer or key employee is or will be compensated by such enterprise.

          3.23 Changes. Since the Statement Date there has not been:

               (a) any change in the assets, liabilities, financial condition or operating results of the
Company from that reflected in the Financial Statements, except changes in the ordinary course of
business that have not been and are not reasonably expected to be, in the aggregate, materially
adverse;

-10-

 

               (b) any damage, destruction or loss, whether or not covered by insurance, materially and
adversely affecting the assets, properties, financial condition, operating results, prospects or
business of the Company (as such business is presently conducted and as it is proposed to be
conducted);

               (c) any waiver by the Company of a valuable right or of a material debt owed to it;

               (d) any satisfaction or discharge of any lien, claim or encumbrance or payment of any
obligation by the Company, except in the ordinary course of business and that is not material to
the assets, properties, financial condition, operating results or business of the Company (as such
business is presently conducted and as it is proposed to be conducted);

               (e) any material change or amendment to a material contract or arrangement by which the
Company or any of its assets or properties is bound or subject;

               (f) any material change in any compensation arrangement or agreement with any employee,
officer, director or shareholder;

               (g) any sale, assignment or transfer of any patents, trademarks, copyrights, trade secrets or
other intangible assets;

               (h) any resignation or termination of employment of any key officer of the Company; and the
Company, to its knowledge, does not know of the impending resignation or termination of employment
of any such officer;

               (i) receipt of notice that there has been a loss of, or material order cancellation by, any
major customer of the Company;

               (j) any mortgage, pledge, transfer of a security interest in, or lien, created by the Company,
with respect to any of its material properties or assets, except liens for taxes not yet due or
payable;

               (k) any loans or guarantees made by the Company to or for the benefit of its employees,
officers or directors, or any members of their immediate families, other than travel advances and
other advances made in the ordinary course of its business;

               (l) any declaration, setting aside or payment or other distribution in respect of any of the
Company’s capital stock, or any direct or indirect redemption, purchase or other acquisition of any
of such stock by the Company;

               (m) to the Company’s knowledge, any change in any material agreement or other event or
condition of any character that might materially and adversely affect the assets, properties,
financial condition, operating results or business of the Company (as such business is presently
conducted and as it is proposed to be conducted); or

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               (n) any agreement or commitment by the Company to do any of the things described in this
Section 3.23.

          3.24 Disclosure. The Company has provided the Purchasers with all the information that the
Purchasers have requested for deciding whether to purchase the Shares hereunder and all information
that the Company believes is reasonably necessary to enable the Purchasers to make such a decision.
No representation, warranty or statement by the Company in this Agreement, or any exhibit,
schedule, statement or certificate furnished to the Purchasers pursuant to this Agreement or to be
furnished to the Purchasers at the Initial Closing or the Subsequent Closing, when read as a whole,
contains any untrue statement of a material fact or omits to state a material fact necessary to
make the statements made herein, in light of the circumstances under which they were made, not
misleading, except that with respect to any financial projections delivered to the Purchaser, the
Company represents only that such financial projections were prepared in good faith and the Company
believes there is a reasonable basis for such financial projections.

          3.25 Small Business Concern. The Company is a “Small Business Concern” as that term is
defined in the Small Business Investment Act of 1958, as amended, and in the regulations of the
Small Business Administration promulgated thereunder.

     4. Representations and Warranties of the Purchasers. Each Purchaser hereby severally
represents and warrants to the Company as follows:

          4.1 Investment Intent; Blue Sky. The Purchaser is acquiring the Shares and the underlying
Conversion Stock for investment for its own account, not as a nominee or agent, and not with a view
to, or for resale in connection with, any distribution thereof. The Purchaser understands that the
issuance of the Shares and the underlying Conversion Stock has not been, and will not be,
registered under the Securities Act by reason of a specific exemption from the registration
provisions of the Securities Act, the availability of which depends upon, among other things, the
bona fide nature of the Purchaser’s investment intent and the accuracy of the Purchaser’s
representations as expressed herein. The Purchaser’s address set forth on the Schedule of
Purchasers represents the Purchaser’s true and correct state of domicile, upon which the Company
may rely for the purpose of complying with applicable “blue sky” laws.

          4.2 Rule 144. The Purchaser acknowledges that the Shares and the underlying Conversion Stock
must be held indefinitely unless subsequently registered under the Securities Act or unless an
exemption from such registration is available. It is aware of the provisions of Rule 144
promulgated under the Securities Act (“Rule 144”) which permit the limited resale of shares
purchased in a private placement subject to the satisfaction of certain conditions, including,
among other things, the existence of a public market for such shares, the availability of certain
current public information about the Company, the resale occurring not less than one (1) year after
a party has purchased and paid for the security to be sold, the sale being effected through a
“brokers transaction” or in a transaction directly with a “market maker,” and the number of shares
being sold during any three (3) month period not exceeding limitations specified in Rule 144.

          4.3 No Public Market. The Purchaser understands that no public market now

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exists for any of the securities issued by the Company and that the Company has made no
assurances that a public market will ever exist for the Company’s securities.

          4.4 Restrictions on Transfer, Restrictive Legends. The Purchaser understands that the
transfer of the Shares and the Conversion Stock is restricted by applicable state and federal
securities laws and by provisions of the Investors’ Rights Agreement, and that the certificates
representing the Shares and the Conversion Stock will be imprinted with legends substantially in
the form set forth in the Investors’ Rights Agreement.

          4.5 Access to Information. The Purchaser has had an opportunity to discuss the Company’s
business, management and financial affairs with the Company’s management and has had the
opportunity to review the Company’s financial statements. The Purchaser has also had an
opportunity to ask questions of officers of the Company, which questions, if asked, were answered
to the Purchaser’s satisfaction. The foregoing, however, does not limit or modify the
representations and warranties of the Company in Section 3 of this Agreement or the right of the
Purchasers to rely thereon.

          4.6 Investment Experience. The Purchaser understands that the purchase of the Shares involves
substantial risk. The Purchaser (a) has experience as an investor in securities of companies in
the development stage and acknowledges that the Purchaser is able to fend for itself or himself,
can bear the economic risk of the Purchaser’s investment in the Shares and has such knowledge and
experience in financial or business matters that the Purchaser is capable of evaluating the merits
and risks of this investment in the Shares and protecting its own interests in connection with this
investment, and/or (b) has a pre-existing personal or business relationship with the Company and
certain of its officers, directors or controlling persons of a nature and duration that enables the
Purchaser to be aware of the character, business acumen and financial circumstances of such
persons.

          4.7 Authorization. The Purchaser has the full power and authority to execute, deliver and
perform the Investment Agreements and to purchase and pay for the Shares and the Conversion Stock.
The Investment Agreements, when executed and delivered by the Purchaser, shall constitute valid and
binding obligations of the Purchaser, enforceable in accordance with their terms, subject to laws
of general application relating to bankruptcy, insolvency and the relief of debtors and other laws
of general application affecting the enforcement of creditors’ rights generally, rules of law
governing specific performance, injunctive relief and other equitable remedies and limitations of
public policy as applied to Section 5.7 of the Investors’ Rights Agreement.

          4.8 Purchaser Counsel. The Purchaser acknowledges that such Purchaser has had the opportunity
to review the Investment Agreements, the exhibits and the schedules attached hereto and thereto,
and the transactions contemplated by this Agreement, with its own legal counsel.

          4.9 Limited Operating History. The Purchaser acknowledges that the Company is a new business
with a limited operating history.

          4.10 Accredited Investor. The Purchaser is an “accredited investor” as

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defined by Rule 501(a) of Regulation D under the Securities Act.

          5. Conditions to Closing of the Purchasers. Each Purchaser’s obligation to purchase
the Shares is, unless waived by the Purchaser, subject to the fulfillment of the following
conditions as of the Initial Closing Date, in the case of the Initial Purchasers, or the Subsequent
Closing Date, in the case of the Subsequent Purchasers:

          5.1 Representations and Warranties Correct. The representations and warranties made by the
Company in Section 3 above shall be true and correct in all respects as of the Initial Closing and
the Subsequent Closing; provided, however, that representations and warranties that speak
specifically “as of the Initial Closing” or “as of the Subsequent Closing” shall be true and
correct as of the Initial Closing or the Subsequent Closing, as the case may be.

          5.2 Covenants. All covenants, agreements and conditions contained in this Agreement to be
performed or complied with by the Company on or prior to the Closing Date shall have been performed
or complied with in all respects.

          5.3 Blue Sky. The Company shall have obtained all necessary “blue sky” law permits and
qualifications, or shall have the availability of exemptions therefrom, required by any state for
the offer and sale of the Shares and the underlying Conversion Stock.

          5.4 Board of Directors. As of the Initial Closing Date, the Board of Directors of the Company
shall be comprised of L. Gregory Ballard, Stewart Alsop, Daniel Skaff, Richard Moran, Jon
Callaghan, Amy Francetic, Sharon Wienbar and Hany Nada, elected in accordance with the terms of the
Voting Agreement.

          5.5 Bylaws. The Bylaws of the Company shall provide that the Board of Directors of the
Company shall consist of eight (8) persons.

          5.6 Authorizations. All authorizations, approvals or permits, if any, of any governmental
authority or regulatory body that are required in connection with the lawful issuance and sale of
the Shares pursuant to this Agreement shall have been duly obtained and shall be effective as of
the Closing.

          5.7 Restated Articles of Incorporation. The Restated Articles shall have been filed in the
office of the Secretary of State of the State of California prior to the Initial Closing.

          5.8 Investors’ Rights Agreement. The Company, the Initial Purchasers and the requisite
parties to the Prior Agreement (as such term is defined therein) shall have executed and delivered
the Investors’ Rights Agreement as of the Initial Closing Date and the Subsequent Purchasers shall
have executed and delivered the Investors’ Rights Agreement as of the Subsequent Closing Date.

          5.9 Right of First Refusal and Co-Sale Agreement. The Company, the Initial Purchasers and the
requisite parties to the Prior Agreement (as such term is defined therein) shall have executed and
delivered the Co-Sale Agreement as of the Initial Closing Date and the Subsequent Purchasers shall
have executed and delivered the Co-Sale Agreement as of the Subsequent Closing Date.

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          5.10 Voting Agreement. The Company, the Initial Purchasers and the requisite parties to the
Prior Agreement (as such term is defined therein) shall have executed and delivered the Voting
Agreement as of the Initial Closing Date and the Subsequent Purchasers shall have executed and
delivered the Voting Agreement as of the Subsequent Closing Date.

          5.11 Legal Opinion. At the Initial Closing, the Initial Purchasers shall have received from
Fenwick & West LLP, legal counsel to the Company, a legal opinion dated as of the Initial Closing
Date, substantially in the form attached hereto as Exhibit G. At the Subsequent Closing,
the Subsequent Purchasers shall have received from Fenwick & West LLP, legal counsel to the
Company, a legal opinion dated as of the Subsequent Closing Date, substantially in the form
attached hereto as Exhibit G.

          5.12 Indemnification Agreement. The Company and each of the members of the Company’s Board of
Directors shall each have entered into an Indemnification Agreement, substantially in the form
attached hereto as Exhibit H.

          5.13 Compliance Certificate. The President of the Company shall have delivered to the
Purchasers at the Closing a certificate stating that the conditions specified in Sections 5.1 and
5.2 have been fulfilled and stating that there shall have been no adverse change in the business,
affairs, operations, properties, assets or condition of the Company since the Statement Date.

          5.14 Non-Disclosure Agreements. All current employees and consultants shall have entered into
a standard non-disclosure and assignment of inventions agreements in form and substance reasonably
acceptable to Purchasers.

          5.15 Proceedings and Documents. All corporate and other proceedings in connection with the
transactions contemplated at the Closing and all documents incident thereto shall be reasonably
satisfactory in form and substance to Purchasers’ counsel, and the Purchasers shall have received
all such counterpart original and certified or other copies of such documents as they may
reasonably request. This shall include, without limitation, certification by the Company’s
Secretary regarding the Company’s Restated Articles and Bylaws and Board of Director and
shareholder resolutions relating to this transaction.

          5.16 Secretary’s Certificate. Purchasers shall have received from the Company’s Secretary, a
certificate having attached thereto (i) the Company’s Restated Articles as in effect at the time of
the Closing, (ii) the Company’s Bylaws as in effect at the time of the Closing, (iii) resolutions
approved by the Board of Directors authorizing the transactions contemplated hereby, (iv)
resolutions approved by the Company’s shareholders authorizing the filing of the Restated Articles,
and (v) good standing certificates (including tax good standing) with respect to the Company from
the applicable authority(ies) in California, dated a recent date before the Closing.

          5.17 Macrospace Voting Agreement. The Company and the requisite parties to the Macrospace
Voting Agreement (as such term is defined therein) shall have executed and delivered the Amendment
to the Voting Agreement as of the Initial Closing Date in the form attached hereto as Exhibit
I.

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     6. Conditions to Closing of the Company. The Company’s obligation to sell and issue
the Shares is, unless waived in writing by the Company, subject to the fulfillment as of the
Initial Closing Date or the Subsequent Closing Date, as appropriate, of the following conditions:

          6.1 Representations and Warranties Correct. The representations made in Section 4 above by
the Purchasers shall be true and correct in all material respects as of the Initial Closing Date or
the Subsequent Closing Date, as appropriate.

          6.2 Covenants. All covenants, agreements, and conditions contained in this Agreement to be
performed or complied with by the Initial Purchasers on or prior to the Initial Closing Date or by
the Subsequent Purchasers on or prior to the Subsequent Closing Date.

          6.3 Blue Sky. The Company shall have obtained all necessary “blue sky” law permits and
qualifications, or have the availability of exemptions therefrom, required by any state for the
offer and sale of the Shares and the underlying Conversion Stock.

          6.4 Legal Matters. All approvals of the Company’s Board of Directors and shareholders
necessary for performance of the transactions contemplated by this Agreement shall have been
obtained, and all material matters of a legal nature which pertain to this Agreement and the
transactions contemplated hereby shall have been reasonably approved by counsel to the Company.

          6.5 Payment of Purchase Price. At the Initial Closing Date, each Initial Purchaser shall have
delivered to the Company the purchase price for such Initial Purchaser’s Shares in the amount set
forth opposite such Purchaser’s name on the Schedule of Purchasers, and where the purchase price or
a portion of thereof is to be paid by the cancellation of indebtedness, such Initial Purchaser
shall have delivered the original instrument evidencing such indebtedness. At the Subsequent
Closing Date, each Subsequent Purchaser shall have delivered to the Company the purchase price for
such Subsequent Purchaser’s Shares in the amount set forth opposite such Subsequent Purchaser’s
name on the Schedule of Purchasers, and where the purchase price or a portion of thereof is to be
paid by the cancellation of indebtedness, such Subsequent Purchaser shall have delivered the
original instrument evidencing such indebtedness.

          6.6 Restated Articles of Incorporation. The Restated Articles shall have been filed in the
office of the Secretary of State of the State of California.

          6.7 Investors’ Rights Agreement. The Company, the Initial Purchasers and the requisite
parties to the Prior Agreement (as such term is defined therein) shall have executed and delivered
the Investors’ Rights Agreement as of the Initial Closing Date and the Subsequent Purchasers shall
have executed and delivered the Investors’ Rights Agreement as of the Subsequent Closing Date.

          6.8 Right of First Refusal and Co-Sale Agreement. The Company, the Initial Purchasers and the
requisite parties to the Prior Agreement (as such term is defined therein) shall have executed and
delivered the Co-Sale Agreement as of the Initial Closing Date and the Subsequent Purchasers shall
have executed and delivered the Co-Sale Agreement as of the Subsequent Closing Date.

-16-

 

          6.9 Voting Agreement. The Company, the Initial Purchasers and the requisite parties to the
Prior Agreement (as such term is defined therein) shall have executed and delivered the Voting
Agreement as of the Initial Closing Date and the Subsequent Purchasers shall have executed and
delivered the Voting Agreement as of the Subsequent Closing Date.

          6.10 Authorizations. All authorizations, approvals or permits, if any, of any governmental
authority or regulatory body that are required in connection with the lawful issuance and sale of
the Shares pursuant to this Agreement shall have been duly obtained and shall be effective as of
the Closing.

     7. Covenants of the Company.

          7.1 Vesting of Employee Options. Options granted to employees of the Company after the
Closing Date under the Company’s approved equity incentive plan shall vest, subject to the option
holder’s continued employment with or service to the Company, on terms no more favorable than
twenty-five percent (25%) after twelve (12) months and on an equal monthly basis over the
subsequent thirty-six (36) months or on an equal annual basis over the subsequent three (3) years,
as approved by the Company’s Board of Directors. Any unvested shares acquired by employees shall
be subject to a repurchase option by the Company exercisable at the original purchase price of such
options (the “Repurchase Option”). The Repurchase Option shall provide that upon termination of
the employment of the shareholder, with or without cause, the Company or its assignee (to the
extent permissible under applicable securities law qualification) may repurchase such unvested
shares at the lesser of the original purchase price of any shares subject to the Repurchase Option
or the fair market value of any such shares.

          7.2 Prompt Payment of Taxes, etc. The Company will promptly pay and discharge, or cause to be
paid and discharged, when due and payable, all lawful taxes, assessments and governmental charges
or levies imposed upon the income, profits, property or business of the Company or any subsidiary;
provided, however, that any such tax, assessment, charge or levy need not be paid if the validity
thereof shall currently be contested in good faith by appropriate proceedings and if the Company
shall have set aside on its books adequate reserves with respect thereto, and provided further,
that the Company will pay all such taxes, assessments, charges or levies forthwith upon the
commencement of proceedings to foreclose any lien which may have attached as security therefor.

          7.3 Insurance. The Company will keep its assets and those of its subsidiaries, if any, which
are of an insurable character insured by financially sound and reputable insurers against loss or
damage by fire, explosion and other risks customarily insured against by companies in the Company’s
line of business, in amounts reasonably sufficient to allow it to replace any of its properties
which might be damaged or destroyed. The Company will maintain with financially sound and
reputable insurers, insurance against other hazards and risks and liability to persons and property
to the extent and in the manner customary for companies in similar businesses similarly situated.

          7.4 Accounts and Records. The Company will keep true records and books of account in which
full, true and correct entries will be made of all dealings or transactions in

-17-

 

relation to its business and affairs in accordance with generally accepted accounting
principles applied on a consistent basis.

          7.5 Subsequent Sales. Each of the Subsequent Purchasers, if any, shall be either (i) Time
Warner, Inc., or any of its affiliates, subsidiaries, or designees, (ii) Fox Entertainment Group,
Inc., or any of its affiliates, subsidiaries, or designees, or (iii) any other purchaser reasonably
approved by the holders of more than sixty-five percent (65%) of the Shares sold at the Initial
Closing. After the Subsequent Closing, the Company shall not sell or issue any shares of Series D
Preferred other than in a sale or issuance to the Purchasers, made pro rata in proportion to the
number of Shares purchased hereunder by the Purchasers, or pursuant to an amendment to this
Agreement, provided such amendment is approved by the holders of more than seventy-two percent
(72%) of the Shares sold under this Agreement or such number of shares of Conversion Stock, or any
combination thereof.

          7.6 Termination of Covenants. The covenants of the Company set forth in above in this Section
7 shall terminate in all respects on the date of the closing of a firm commitment underwritten
initial public offering pursuant to an effective registration statement under the Securities Act,
covering the offer and sale of the Company’s Common Stock, or at such time as the Company is
required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as
amended, whichever shall occur first.

     8. Miscellaneous.

          8.1 Survival of Warranties. The warranties, representations and covenants of the Company and
Purchasers contained in or made pursuant to this Agreement shall survive the execution and delivery
of this Agreement and the Closing and shall in no way be affected by any investigation of the
subject matter thereof made by or on behalf of the Purchasers or the Company.

          8.2 Successors and Assigns. Except as otherwise provided herein, the terms and conditions of
this Agreement shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties (including transferees of any securities). Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or liabilities under or by
reason of this Agreement, except as expressly provided in this Agreement.

          8.3 Finder’s Fee. Each party represents that it neither is nor will be obligated for any
finders’ fee or commission in connection with this transaction. Each Purchaser agrees to indemnify
and to hold harmless the Company from any liability for any commission or compensation in the
nature of a finders’ fee (and the costs and expenses of defending against such liability or
asserted liability) for which such Purchaser or any of its officers, partners, employees, or
representatives is responsible.

          The Company agrees to indemnify and hold harmless each Purchaser from any liability for any
commission or compensation in the nature of a finders’ fee (and the costs and expenses of defending
against such liability or asserted liability) for which the Company or any of its officers,
employees or representatives is responsible.

-18-

 

          8.4 Governing Law. This Agreement shall be governed in all respects by the laws of the State
of California as such laws are applied to agreements between or among California residents entered
into and to be performed entirely within California.

          8.5 Entire Agreement; Amendment. This Agreement (including all exhibits hereto), the
Investors’ Rights Agreement, the Co-Sale Agreement, the Voting Agreement and the other documents
delivered pursuant hereto constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof and thereof. This Agreement and any term hereof may be
amended, waived, discharged or terminated by a written instrument signed by the Company and holders
of more than seventy-two percent (72%) of the Shares sold under this Agreement or such number of
shares of Conversion Stock, or any combination thereof.

          8.6 Notices, etc. All notices and other communications required or permitted hereunder shall
be effective upon receipt, shall be in writing and shall be mailed by registered or certified mail,
postage prepaid, or otherwise delivered by facsimile transmission, by hand or by messenger,
addressed:

          (a) if to a Purchaser, to the address or fax number listed after such Purchaser’s name on the
Schedule of Purchasers attached hereto as Exhibit A or at such other address as such
Purchaser shall have furnished to the Company, with a copy to:

Pillsbury Winthrop Shaw Pittman LLP

2475 Hanover Street

Palo Alto, CA 94304-1114

Attn: Allison Leopold Tilley, Esq.

Fax: (650) 233-4545

	 	(b)	 	if to the Company, to:

Sorrent, Inc.

1800 Gateway Drive, Suite 200

San Mateo, CA 94404

Attn: President

Fax: (650) 571-5698

or at such other address as the Company shall have furnished to the Purchasers, with a copy to:

Fenwick & West LLP

Silicon Valley Center

801 California St.

Mountain View, California 94041

Attn: Mark Stevens, Esq.

Fax: (650) 938-5200

Each such notice or other communication shall for all purposes of this Agreement be treated as
effective or having been given when received if delivered personally or by messenger, if sent by

-19-

 

facsimile, the first business day after the date of confirmation that the facsimile has been
successfully transmitted to the facsimile number for the party notified, or, if sent by mail, at
the earlier of its receipt or seventy-two (72) hours after the same has been deposited in a
regularly maintained receptacle for deposit of United States mail, addressed and mailed as
aforesaid.

          8.7 Delays or Omissions. Except as expressly provided herein, no delay or omission to
exercise any right, power or remedy accruing to any party hereto upon any breach or default of
another party hereto under this Agreement shall impair any such right, power or remedy of such
party, nor shall it be construed to be a waiver of any such breach or default or an acquiescence
therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part
of any party of any breach or default under this Agreement, or any waiver on the part of any party
hereto, of any provisions or conditions of this Agreement, must be in writing and shall be
effective only to the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any party hereto, shall be alternative and not
cumulative.

          8.8 Rights; Severability. Unless otherwise expressly provided herein, the rights of each
Purchaser hereunder are several rights and are not rights jointly held with any of the other
Purchasers.

          8.9 California Corporate Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF
THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF
CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS THE SALE OF SECURITIES IS
EXEMPT FROM THE QUALIFICATION BY SECTION 25100, 25102, OR 25105 OF THE CORPORATIONS CODE OF THE
STATE OF CALIFORNIA. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON
SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

          8.10 Expenses. At the Initial Closing, the Company will pay the reasonable fees and expenses,
including legal fees, incurred by Granite Global Ventures II L.P. in connection with this
Agreement, up to a maximum of $35,000, subject to the delivery of invoices therefor.

          8.11 Attorneys’ Fees. If any legal action is necessary to enforce or interpret the terms of
this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and
necessary disbursements in addition to any other relief to which such party may be entitled.

          8.12 Severability. In the event any provision of this Agreement becomes or is declared by a
court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue
in full force and effect, with such provision being replaced with an enforceable provision closest
in intent and economic effect to the severed provision; provided, however, that

-20-

 

no such severability shall be effective if it materially changes the economic benefit of any
party to this Agreement.

          8.13 Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.

          8.14 Conflicts of Interest. Each Purchaser and the Company is aware that Fenwick & West LLP
(“F&W”) may have an investment in certain of the Purchasers or may have previously performed and
may continue to perform certain legal services for certain of the Purchasers in matters unrelated
to F&W’s representation of the Company. In connection with its Purchaser representation, F&W may
have obtained confidential information of such Purchasers that could be material to F&W’s
representation of the Company in connection with negotiation, execution and performance of this
Agreement. By signing this Agreement, each Purchaser and the Company hereby acknowledges that the
terms of this Agreement were negotiated between the Purchasers and the Company and are fair and
reasonable and waives any potential conflict of interest arising out of such representation or such
possession of confidential information. Each Purchaser and the Company further represents that it
has had the opportunity to be, or has been, represented by independent counsel in giving the
waivers contained in this Section 8.14.

          8.15 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be an original, and all of which together shall constitute one instrument.

          8.16 Exculpation Among Purchasers. Each Purchaser acknowledges that it is not relying upon
any person, firm, or corporation, other than the Company and its officers and directors, in making
its investment or decision to invest in the Company. Each Purchaser agrees that no Purchaser nor
the respective controlling persons, officers, directors, partners, agents, or employees of any
Purchaser shall be liable to any other Purchaser for any action heretofore or hereafter taken or
omitted to be taken by any of them in connection with the Shares and Conversion Stock.

[SIGNATURE PAGE TO FOLLOW]

-21-

 

     IN WITNESS WHEREOF, the parties have executed this agreement as of the day and year set forth
in the heading hereof.

	 	 	 	 	 	 	 
	 	 	SORRENT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ L. Gregory Ballard 	 	 
	 

	 	 	 	 

L. Gregory Ballard,
	 	 
	 

	 	Its:
	 	President and Chief Executive Officer	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	1800 Gateway Drive, Suite 200
	 	 
	 

	 	 	 	San Mateo, CA 94404	 	 

SIGNATURE PAGE TO SERIES D PURCHASE AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	PURCHASERS:	 	 
	 
	 	 	 	 	 	 
	 	 	GRANITE GLOBAL VENTURES II L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Granite Global Ventures II L.L.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Hany Nada 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	Hany Nada 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	Managing Director	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	c/o Granite Global Ventures
	 	 
	 

	 	 	 	2494 Sand Hill Road	 	 
	 

	 	 	 	Suite 100	 	 
	 

	 	 	 	Menlo Park, CA 94025	 	 
	 

	 	Fax:
	 	(650) 475-2151	 	 

	 	 	 	 	 	 	 
	 	 	GGV II ENTREPRENEURS FUND L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Granite Global Ventures II L.L.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Hany Nada 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	Hany Nada 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	Managing Director	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	c/o Granite Global Ventures
	 	 
	 

	 	 	 	2494 Sand Hill Road	 	 
	 

	 	 	 	Suite 100	 	 
	 

	 	 	 	Menlo Park, CA 94025	 	 
	 

	 	Fax:
	 	(650) 475-2151	 	 

SIGNATURE PAGE TO SERIES D PURCHASE AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	NEW ENTERPRISE ASSOCIATES 10, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	NEA Partners 10, L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Eugene A. Trainor III 	 	 
	 

	 	 	 	 

Eugene A. Trainor III, General Partner
	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	2490 Sand Hill Road
	 	 
	 

	 	 	 	Menlo Park, CA 94025	 	 
	 

	 	 	 	Attn: Stewart Alsop	 	 
	 

	 	Fax:
	 	(650) 854-9397	 	 

SIGNATURE PAGE TO SERIES D PURCHASE AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	BAVP, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	BA Venture Partners VI, LLC	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Sharon Wienbar 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	Sharon Wienbar 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	Member 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:
	 	950 Tower Lane, Suite 700
	 	 
	 

	 	 	 	Foster City, CA 94404	 	 
	 

	 	 	 	Attn: Sharon Wienbar	 	 
	 

	 	Fax:
	 	(650) 378-6040	 	 

SIGNATURE
PAGE TO SERIES D PURCHASE AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	SIENNA LIMITED PARTNERSHIP III, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Sienna Associates III, L.L.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Daniel L. Skaff 	 	 
	 

	 	 	 	 

Daniel L. Skaff, Managing Member
	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	2330 Marinship Way, Suite 130
	 	 
	 

	 	 	 	Sausalito, CA 94965	 	 
	 

	 	 	 	Attn: Daniel Skaff	 	 
	 

	 	Fax:
	 	(415) 339-2808	 	 

SIGNATURE PAGE TO SERIES D PURCHASE AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	JAFCO AMERICA TECHNOLOGY FUND III, LP	 	 
	 	 	JAFCO AMERICA TECHNOLOGY CAYMAN FUND III, LP	 	 
	 	 	JAFCO USIT FUND III, LP	 	 
	 	 	JAFCO AMERICA TECHNOLOGY AFFILIATES FUND III, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Barry J. Schiffman 	 	 
	 

	 	 	 	 

Barry J. Schiffman
	 	 
	 

	 	 	 	Managing Member	 	 
	 

	 	 	 	JAV Management Associates III, L.L.C.	 	 
	 

	 	 	 	Its General Partner	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	300 Hamilton Avenue Top Floor
	 	 
	 

	 	 	 	Palo Alto, CA 94301	 	 
	 

	 	 	 	Attn: Jon Callaghan	 	 
	 

	 	Fax:
	 	(650) 328-2818	 	 

	 	 	 	 	 	 	 
	 	 	GLOBESPAN CAPITAL PARTNERS IV, L.P.	 	 
	 	 	GCP IV AFFILIATES FUND, L.P.	 	 
	 	 	JAFCO GLOBESPAN USIT IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Globespan Management Associates IV, L.P., its	 	 
	 

	 	 	 	sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Globespan Management Associates IV, LLC, its	 	 
	 

	 	 	 	sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Barry J. Schiffman 	 	 
	 

	 	 	 	 

Barry J. Schiffman
	 	 
	 

	 	 	 	Member	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	300 Hamilton Avenue Top Floor
	 	 
	 

	 	 	 	Palo Alto, CA 94301	 	 
	 

	 	 	 	Attn: Jon Callaghan	 	 
	 

	 	Fax:
	 	(650) 328-2818	 	 

SIGNATURE PAGE TO SERIES D PURCHASE AGREEMENT

 

 

	 	 	 	 	 	 	 
	 	 	GLOBESPAN CAPITAL PARTNERS (CAYMAN) IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Globespan Management Associates (Cayman) IV,	 	 
	 

	 	 	 	L.P., its sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Globespan Management Associates IV, LLC, its	 	 
	 

	 	 	 	sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Barry J. Schiffman 	 	 
	 

	 	 	 	 

Barry J. Schiffman
	 	 
	 

	 	 	 	Member	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	300 Hamilton Avenue Top Floor
	 	 
	 

	 	 	 	Palo Alto, CA 94301	 	 
	 

	 	 	 	Attn: Jon Callaghan	 	 
	 

	 	Fax:
	 	(650) 328-2818	 	 

	 	 	 	 	 	 	 
	 	 	GLOBESPAN CAPITAL PARTNERS IV GmbH & Co. KG	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Globespan Management Associates IV, GmbH	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Barry J. Schiffman 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:
	 	Barry J. Schiffman	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	Managing Director 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	Address:
	 	300 Hamilton Avenue Top Floor
	 	 
	 

	 	 	 	Palo Alto, CA 94301	 	 
	 

	 	 	 	Attn: Jon Callaghan	 	 
	 

	 	Fax:
	 	(650) 328-2818	 	 

SIGNATURE PAGE TO SERIES D PURCHASE AGREEMENT

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