Document:

EX-10.5

Exhibit 10.5

ANCESTRY.COM INC.

2009 STOCK INCENTIVE PLAN

1. Purpose

     The purpose of the Ancentry.com Inc. 2009 Stock Incentive Plan (the “Plan”) is to advance the
interests of Ancestry.com Inc. (the “Company”) by stimulating the efforts of employees, officers,
non-employee directors and other service providers, in each case who are selected to be
participants, by heightening the desire of such persons to continue working toward and contributing
to the success and progress of the Company. The Plan supersedes the Generations Holding, Inc. 2008
Stock Purchase and Option Plan, MyFamily.com, Inc. 2004 Stock Plan, MyFamily.com, Inc. Executive
Stock Plan and MyFamily.com, Inc. 1998 Stock Plan with respect to future awards, and provides for
the potential grant of Incentive and Nonqualified Stock Options, Stock Appreciation Rights,
Restricted Stock and Restricted Stock Units, any of which may be performance-based, and for
Incentive Bonuses, which may be paid in cash or stock or a combination thereof, as determined by
the Administrator.

2. Definitions

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Administrator” means the Administrator of the Plan in accordance with Section 18.

     (b) “Award” means an Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation
Right, Restricted Stock, Restricted Stock Unit or Incentive Bonus granted to a Participant pursuant
to the provisions of the Plan, any of which the Administrator may structure to qualify in whole or
in part as a Performance Award.

     (c) “Award Agreement” means a written agreement or other instrument as may be approved from
time to time by the Administrator implementing the grant of each Award. An Agreement may be in the
form of an agreement to be executed by both the Participant and the Company (or an authorized
representative of the Company) or certificates, notices or similar instruments as approved by the
Administrator.

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

     (e) “Cause” means (unless otherwise expressly provided in the Award Agreement or another
contract, including an employment agreement):

     (1) fraud or dishonesty in connection with an individual’s employment or service, or
theft, misappropriation or embezzlement of the Company’s and/or any Company Affiliate’s
funds or other property;

     (2) conviction or indictment of an individual or the entering of a plea of nolo
contendere by the individual with respect to any felony, crime involving fraud or
misrepresentation, or any other crime (whether or not such felony or crime is connected

 

 

with his or her employment or service) the effect of which in the judgment of the Board
is likely to affect, materially and adversely, the Company and/or any Company Affiliate;

     (3) a material breach by an individual of his or her obligations under an employment
agreement (if any), or under a consulting agreement with the Company or a Company Affiliate;
or

     (4) the individual’s refusal to cooperate in any Company investigation.

     (f) “Change in Control” means (unless otherwise expressly provided in the Award Agreement or
another contract, including an employment agreement) any of the following:

     (1) An acquisition by any Person (excluding one or more Excluded Persons and any Person
who has beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) or a
pecuniary interest in (either comprising “ownership of”) more than 50% of the Common Stock
or voting securities entitled to then vote generally in the election of directors of the
Company (“Voting Stock”) as of July 20, 2009) of beneficial ownership or a pecuniary
interest in more than 50% of the Common Stock or Voting Stock, after giving effect to any
new issue in the case of an acquisition from the Company; or

     (2) Consummation of a merger, consolidation, or reorganization of the Company or of a
sale or other disposition of all or substantially all of the Company’s consolidated assets
as an entirety (collectively, a “Business Combination”), other than a Business Combination
(A) in which all or substantially all of the holders of Voting Stock hold or receive
directly or indirectly 50% or more of the voting stock of the entity resulting from the
Business Combination (or a parent company), and (B) after which no Person (other than any
one or more of the Excluded Persons) owns more than 50% of the voting stock of the resulting
entity (or a parent company) who did not own directly or indirectly at least that amount of
Voting Stock immediately before the Business Combination, and (C) after which one or more
Excluded Persons own an aggregate number of shares of the voting stock at least equal to the
aggregate number of shares of voting stock owned by any other Person who is not an Excluded
Person (except for any person described in and satisfying the conditions of Rule 13d-1(b)(1)
under the Exchange Act), if any, and who owns more than 50% of the voting stock.

     (3) During any period of two consecutive years, individuals who at the beginning of
such period constituted the Board and any new director (other than a director designated by
a person who has entered into an agreement or arrangement with the Company to effect a
transaction described in clause (1) or (2) of this definition) whose appointment, election,
or nomination for election was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of the period or
whose appointment, election or nomination for election was previously so approved, cease for
any reason to constitute a majority of the Board;

     (4) The complete liquidation or dissolution of the Company.

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     (g) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the
rulings and regulations issues thereunder.

     (h) “Committee” means a committee that may be designated by the Board as the committee to
administer the Plan.

     (i) “Common Stock” means the Company’s common stock, par value $0.001, subject to adjustment
as provided in Section 12.

     (j) “Company” means Ancestry.com Inc. (formerly known as Generations Holding, Inc.), a
Delaware corporation.

     (k) “Company Affiliate” means any person or entity that is a subsidiary of, or controlled
directly or indirectly by, Ancestry.com Inc. For the purposes of this definition, “control” means
the power to direct the management and policies of a person or entity, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise.

     (l) “Disability,” unless otherwise defined in a Participant’s employment agreement with the
Company (if any), means a physical or mental condition which is expected to render a Participant
materially unable to perform his or her usual duties, or any comparable duties, for the Company or
a Company Affiliate for a period of 90 consecutive days, as reasonably determined by the
Administrator.

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

     (n) “Excluded Person” means (1) the Company or any Company Affiliate; or (2) any employee
benefit plan of the Company.

     (o) “Fair Market Value” means, as of any given date, the closing sales price on such date
during normal trading hours (or, if there are no reported sales on such date, on the last date
prior to such date on which there were sales) of the Shares on the New York Stock Exchange
Composite Tape or, if not listed on such exchange, on any other national securities exchange on
which the Shares are listed or on NASDAQ, in any case, as reporting in such source as the Committee
shall select. If there is no regular public trading market for such Common Shares, the Fair Market
Value of the Shares shall be determined by the Committee in good faith and in compliance with
Section 409A of the Code.

     (p) “Incentive Bonus” means a bonus opportunity awarded under Section 9 pursuant to which a
Participant may become entitled to receive an amount based on satisfaction of such performance
criteria as are specified in the Award Agreement.

     (q) “Incentive Stock Option” means a stock option that is intended to qualify as an “incentive
stock option” within the meaning of Section 422 of the Code.

     (r) “Nonemployee Director” means each person who is, or is elected to be, a member of the
Board and who is not an employee of the Company or any Subsidiary.

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     (s) “Nonqualified Stock Option” means a stock option that is not intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code.

     (t) “Option” means an Incentive Stock Option and/or a Nonqualified Stock Option granted
pursuant to Section 6 of the Plan.

     (u) “Participant” means any individual described in Section 3 to whom Awards have been granted
from time to time by the Administrator and any authorized transferee of such individual.

     (v) “Performance Award” means an Award, the grant, issuance, retention, vesting or settlement
of which is subject to satisfaction of one or more performance criteria established pursuant to
Section 13.

     (w) “Person” means an association, a corporation, an individual, a partnership, a trust or any
other entity or organization, including a governmental entity and a “person” as that term is used
under Section 13(d) or 14 (d) of the Exchange Act.

     (x) “Plan” means the Ancestry.com Inc. 2009 Stock Incentive Plan as set forth herein and as
amended from time to time.

     (y) “Prior Plan” means the Generations Holding, Inc. 2008 Stock Purchase and Option Plan,
MyFamily.com, Inc. 2004 Stock Plan, MyFamily.com, Inc. Executive Stock Plan and MyFamily.com, Inc.
1998 Stock Plan.

     (z) “Restricted Stock” means Shares granted pursuant to Section 8 of the Plan.

     (aa) “Restricted Stock Unit” means an Award granted to a Participant pursuant to Section 8
pursuant to which Shares or cash in lieu thereof may be issued in the future.

     (bb) “Share” means a share of the Common Stock, subject to adjustment as provided in Section
12.

     (cc) “Stock Appreciation Right” means a right granted pursuant to Section 7 of the Plan that
entitles the Participant to receive, in cash or Shares or a combination thereof, as determined by
the Administrator, value equal to or otherwise based on the excess of (i) the market price of a
specified number of Shares at the time of exercise over (ii) the exercise price of the right, as
established by the Administrator on the date of grant.

     (dd) “Subsidiary” means any entity (other than the Company) in an unbroken chain of entities
beginning with the Company where each of the entities in the unbroken chain other than the last
entity owns stock or other equity possessing at least 50 percent or more of the total combined
voting power of all classes of stock or other equity in one of the other entities in the chain, and
if specifically determined by the Administrator in the context other than with respect to Incentive
Stock Options, may include an entity in which the Company has a significant ownership interest or
that is directly or indirectly controlled by the Company.

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     (ee) “Termination of Employment” means ceasing to serve as a full-time employee of the Company
and its Subsidiaries or, with respect to a Nonemployee Director or other service provider, ceasing
to serve as such for the Company and its Subsidiaries, except that with respect to all or any
Awards held by a Participant (i) the Administrator may determine, subject to Section 6(c), that an
approved leave of absence or approved employment on a less than full-time basis is not considered a
Termination of Employment, (ii) the Administrator may determine that a transition of employment to
service with a partnership, joint venture or corporation not meeting the requirements of a
Subsidiary in which the Company or a Subsidiary is a party is not considered a Termination of
Employment, (iii) service as a member of the Board or other service provider shall constitute
continued employment with respect to Awards granted to a Participant while he or she served as an
employee and (iv) service as an employee of the Company or a Subsidiary shall constitute continued
employment with respect to Awards granted to a Participant while he or she served as a member of
the Board or other service provider. The Administrator shall determine whether any corporate
transaction, such as a sale or spin-off of a division or subsidiary that employs a Participant,
shall be deemed to result in a Termination of Employment with the Company and its Subsidiaries for
purposes of any affected Participant’s Options, and the Administrator’s decision shall be final and
binding.

3. Eligibility

     Any person who is a current or prospective officer or employee of the Company or of any
Subsidiary shall be eligible for selection by the Administrator for the grant of Awards hereunder.
In addition, Nonemployee Directors and any other service providers who have been retained to
provide consulting, advisory or other services to the Company or to any Subsidiary shall be
eligible for the grant of Awards hereunder as determined by the Administrator. Options intending to
qualify as Incentive Stock Options may only be granted to employees of the Company or any corporate
Subsidiary within the meaning of the Code, as selected by the Administrator.

4. Effective Date and Termination of Plan

     This Plan was adopted by the Board as of July 20, 2009, and it will become effective (the
“Effective Date”) when it is approved by the Company’s stockholders. All Awards granted under this
Plan are subject to, and may not be exercised before, the approval of this Plan by the stockholders
prior to the first anniversary date of the adoption of the Plan, by the affirmative vote of the
holders of a majority of the outstanding Shares of the Company present, or represented by proxy,
and entitled to vote, at a meeting of the Company’s stockholders or by written consent in
accordance with the laws of the State of Delaware; provided that if such approval by the
stockholders of the Company is not forthcoming, all Awards previously granted under this Plan shall
be void. No Incentive Stock Option may be granted after the tenth (10th) anniversary of the
Effective Date. The Plan may be terminated at such earlier time as the Board may determine.
Termination of the Plan will not affect the rights and obligations of the Participants and the
Company arising under Awards theretofore granted and then in effect.

5. Shares Subject to the Plan and to Awards

     (a) Aggregate Limits. The aggregate number of Shares issuable pursuant to all Awards shall not
exceed the sum of (i) 5% of the number of Shares of Common Stock

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outstanding immediately after the consummation of the initial public offering of the Common
Stock by the Company, as increased on the first day of each fiscal year beginning in calendar year
2010 and thereafter by a number of Shares of Common Stock equal to 4% of the number of outstanding
Shares of Common Stock on the last day of the immediately preceding fiscal year, or such lesser
number of Shares of Common Stock prescribed by the Board of Directors with respect to a particular
calendar year, plus (ii) any Shares of Common Stock subject to outstanding awards under the
Generations Holding, Inc. 2008 Stock Purchase and Option Plan or any of the Company’s other stock
option or stock incentive plans that on or after the effective date of this Plan cease, for any
reason, to be subject to such awards (other than by reason of exercise or settlement of the awards
to the extent they are exercised for or settled in vested and nonforfeitable Shares of Common
Stock). Notwithstanding the foregoing, the aggregate number of Shares of Common Stock that may be
issued pursuant to the exercise of Incentive Stock Options granted under this Plan shall not exceed
5% of the number of Shares of Common Stock outstanding immediately after the consummation of the
initial public offering of the Common Stock by the Company, which number shall be calculated and
adjusted pursuant to Section 12 of this Plan only to the extent that such calculation or adjustment
will not affect the status of any option intended to qualify as an Incentive Stock Option under
Section 422 of the Code.

     (b) Adjustment. The aggregate number of Shares available for grant under this Plan and the
number of Shares subject to outstanding Awards shall be subject to adjustment as provided in this
Section 5 and in Section 12. The Shares issued pursuant to Awards granted under this Plan may be
shares that are authorized and unissued or shares that were reacquired by the Company, including
shares purchased in the open market.

     (c) Issuance of Shares. For purposes of Section 5(a), the aggregate number of Shares issued
under this Plan at any time shall equal only the number of Shares actually issued upon exercise or
settlement of an Award. Notwithstanding the foregoing, Shares subject to an Award under the Plan
may not again be made available for issuance under the Plan if such Shares are: (i) Shares that
were subject to a stock-settled Stock Appreciation Right and were not issued upon the net
settlement or net exercise of such Stock Appreciation Right, (ii) Shares used to pay the exercise
price of an Option, (iii) Shares delivered to or withheld by the Company to pay the withholding
taxes related to an Award, or (iv) Shares repurchased on the open market with the proceeds of an
Option exercise. Shares subject to Awards that have been canceled, expired, forfeited or otherwise
not issued under an Award and Shares subject to Awards settled in cash shall not count as Shares
issued under this Plan.

6. Options

     (a) Option Awards. Options may be granted at any time and from time to time prior to the
termination of the Plan to Participants as determined by the Administrator. No Participant shall
have any rights as a stockholder with respect to any Shares subject to an Option hereunder until
said Shares have been issued. Each Option shall be evidenced by an Award Agreement. Options granted
pursuant to the Plan need not be identical but each Option must contain and be subject to the terms
and conditions set forth below.

     (b) Price. The Administrator will establish the exercise price per Share under each Option,
which, in no event will be less than the Fair Market Value of the Shares on the date of

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grant; provided, however, that the exercise price per Share with respect to an Option that is
granted in connection with a merger or other acquisition as a substitute or replacement award for
options held by optionees of the acquired entity may be less than 100 percent of the market price
of the Shares on the date such Option is granted if such exercise price is based on a formula set
forth in the terms of the options held by such optionees or in the terms of the agreement providing
for such merger or other acquisition. The exercise price of any Option may be paid in Shares, cash
or a combination thereof, as determined by the Administrator, including an irrevocable commitment
by a broker to pay over such amount from a sale of the Shares issuable under an Option, the
delivery of previously owned Shares and withholding of Shares deliverable upon exercise.

     (c) Provisions Applicable to Options. The date on which Options become exercisable shall be
determined at the sole discretion of the Administrator and set forth in an Award Agreement. Unless
provided otherwise in the applicable Award Agreement, to the extent that the Administrator
determines that an approved leave of absence is not a Termination of Employment, the vesting period
and/or exercisability of an Option shall be adjusted by the Administrator during or to reflect the
effects of any period in which the Participant is on an approved leave of absence or is employed on
a less than full-time basis.

     (d) Term of Options and Termination of Employment. The Administrator shall establish the term
of each Option, which in no case shall exceed a period of ten (10) years from the date of grant.
Unless an Option earlier expires upon the expiration date established pursuant to the foregoing
sentence, upon the termination of the Participant’s employment, his or her rights to exercise an
Option then held shall be only as follows, unless the Administrator specifies otherwise:

     (1) Death. Upon the death of a Participant while in the employ of the Company or any
Subsidiary or while serving as a member of the Board, all of the Participant’s Options then
held shall be exercisable by his or her estate, heir or beneficiary at any time during the
one (1) year period commencing on the date of death. Any and all of the deceased
Participant’s Options that are not exercised during the one (1) year commencing on the date
of death shall terminate as of the end of such one (1) year period.

     If a Participant should die within ninety (90) days of his or her Termination of
Employment with the Company and its Subsidiaries, an Option shall be exercisable by his or
her estate, heir or beneficiary at any time during the one (1) year period commencing on the
date of termination, but only to the extent of the number of Shares as to which such Option
was exercisable as of the date of such termination. Any and all of the deceased
Participant’s Options that are not exercised during the one (1) year period commencing on
the date of termination shall terminate as of the end of such one (1) year period. A
Participant’s estate shall mean his or her legal representative or other person who so
acquires the right to exercise the Option by bequest or inheritance or by reason of the
death of the Participant.

     (2) Disability. Upon Termination of Employment as a result of a Participant’s
Disability, all of the Participant’s Options then held shall be exercisable during the one

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(1) year period commencing on the date of termination. Any and all Options that are not
exercised during the one (1) year period commencing on the date of termination shall
terminate as of the end of such one (1) year period.

     (3) Termination for Cause. Upon Termination of Employment for Cause, any and all
Options (vested and unvested) outstanding on the date of termination shall terminate
immediately upon such Termination of Employment for Cause.

     (4) Other Reasons. Upon the date of a termination of a Participant’s employment for any
reason other than those stated above in Sections 6(d)(1), (2) or (3) (d)(2) or as described
in Section 15, (A) to the extent that any Option is not exercisable as of such termination
date, such portion of the Option shall remain unexercisable and shall terminate as of such
date, and (B) to the extent that any Option is exercisable as of such termination date, such
portion of the Option shall expire on the earlier of (i) ninety (90) days following such
date and (ii) the expiration date of such Option.

     (e) Incentive Stock Options. Notwithstanding anything to the contrary in this Section 6, in
the case of the grant of an Option intending to qualify as an Incentive Stock Option: (i) if the
Participant owns stock possessing more than 10 percent of the combined voting power of all classes
of stock of the Company (a “10% Shareholder”), the exercise price of such Option must be at least
110 percent of the Fair Market Value of the Shares on the date of grant and the Option must expire
within a period of not more than five (5) years from the date of grant, and (ii) Termination of
Employment will occur when the person to whom an Award was granted ceases to be an employee (as
determined in accordance with Section 3401(c) of the Code and the regulations promulgated
thereunder) of the Company and its Subsidiaries. Notwithstanding anything in this Section 6 to the
contrary, options designated as Incentive Stock Options shall not be eligible for treatment under
the Code as Incentive Stock Options (and will be deemed to be Nonqualified Stock Options) to the
extent that either (a) the aggregate Fair Market Value of Shares (determined as of the time of
grant) with respect to which such Options are exercisable for the first time by the Participant
during any calendar year (under all plans of the Company and any Subsidiary) exceeds $100,000,
taking Options into account in the order in which they were granted, or (b) such Options otherwise
remain exercisable but are not exercised within three (3) months of Termination of Employment (or
such other period of time provided in Section 422 of the Code). If the requirements for an Option
to qualify for incentive stock option tax treatment are changed, this Section 6(e) shall be deemed
to be automatically amended to reflect such requirements.

7. Stock Appreciation Rights

     Stock Appreciation Rights may be granted to Participants from time to time either in tandem
with or as a component of other Awards granted under the Plan (“tandem SARs”) or not in conjunction
with other Awards (“freestanding SARs”) and may, but need not, relate to a specific Option granted
under Section 6. The provisions of Stock Appreciation Rights need not be the same with respect to
each grant or each recipient. Any Stock Appreciation Right granted in tandem with an Award may be
granted at the same time such Award is granted or at any time thereafter before exercise or
expiration of such Award. All freestanding SARs shall be granted subject to the same terms and
conditions applicable to Options as set forth in Section 6 and all

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tandem SARs shall have the same exercise price, vesting, exercisability, forfeiture and
termination provisions as the Award to which they relate. Subject to the provisions of Section 6
and the immediately preceding sentence, the Administrator may impose such other conditions or
restrictions on any Stock Appreciation Right as it shall deem appropriate. Stock Appreciation
Rights may be settled in Shares, cash or a combination thereof, as determined by the Administrator
and set forth in the applicable Award Agreement.

8. Restricted Stock and Restricted Stock Units

     (a) Restricted Stock and Restricted Stock Unit Awards. Restricted Stock and Restricted Stock
Units may be granted at any time and from time to time prior to the termination of the Plan to
Participants as determined by the Administrator. Restricted Stock is an award or issuance of Shares
the grant, issuance, retention, vesting and/or transferability of which is subject during specified
periods of time to such conditions (including continued employment or performance conditions) and
terms as the Administrator deems appropriate. Restricted Stock Units are Awards denominated in
units of Shares under which the issuance of Shares is subject to such conditions (including
continued employment or performance conditions) and terms as the Administrator deems appropriate.
Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement.
Unless determined otherwise by the Administrator, each Restricted Stock Unit will be equal to one
Share and will entitle a Participant to either the issuance of Shares or payment of an amount of
cash determined with reference to the value of Shares. To the extent determined by the
Administrator, Restricted Stock and Restricted Stock Units may be satisfied or settled in Shares,
cash or a combination thereof. Restricted Stock and Restricted Stock Units granted pursuant to the
Plan need not be identical but each grant of Restricted Stock and Restricted Stock Units must
contain and be subject to the terms and conditions set forth below.

     (b) Contents of Agreement. Each Award Agreement shall contain provisions regarding (i) the
number of Shares or Restricted Stock Units subject to such Award or a formula for determining such
number, (ii) the purchase price of the Shares, if any, and the means of payment, (iii) the
performance criteria, if any, and level of achievement versus these criteria that shall determine
the number of Shares or Restricted Stock Units granted, issued, retainable and/or vested, (iv) such
terms and conditions on the grant, issuance, vesting and/or forfeiture of the Shares or Restricted
Stock Units as may be determined from time to time by the Administrator, (v) the term of the
performance period, if any, as to which performance will be measured for determining the number of
such Shares or Restricted Stock Units, and (vi) restrictions on the transferability of the Shares
or Restricted Stock Units. Shares issued under a Restricted Stock Award may be issued in the name
of the Participant and held by the Participant or held by the Company, in each case as the
Administrator may provide.

     (c) Vesting and Performance Criteria. The grant, issuance, retention, vesting and/or
settlement of shares of Restricted Stock and Restricted Stock Units will occur when and in such
installments as the Administrator determines or under criteria the Administrator establishes, which
may include performance criteria.

     (d) Discretionary Adjustments and Limits. Subject to the limits imposed under Section 162(m)
of the Code for Awards that are intended to qualify as “performance-based

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compensation,” notwithstanding the satisfaction of any performance goals, the number of Shares
granted, issued, retainable and/or vested under an Award of Restricted Stock or Restricted Stock
Units on account of either financial performance or personal performance evaluations may, to the
extent specified in the Award Agreement, be reduced, but not increased, by the Administrator on the
basis of such further considerations as the Administrator shall determine.

     (e) Voting Rights. Unless otherwise determined by the Administrator, Participants holding
shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those
shares during the period of restriction. Participants shall have no voting rights with respect to
Shares underlying Restricted Stock Units unless and until such Shares are reflected as issued and
outstanding shares on the Company’s stock ledger.

     (f) Dividends and Distributions. Participants in whose name Restricted Stock is granted shall
be entitled to receive all dividends and other distributions paid with respect to those Shares,
unless determined otherwise by the Administrator. The Administrator will determine whether any such
dividends or distributions will be automatically reinvested in additional shares of Restricted
Stock and subject to the same restrictions on transferability as the Restricted Stock with respect
to which they were distributed or whether such dividends or distributions will be paid in cash.
Shares underlying Restricted Stock Units shall be entitled to dividends or dividend equivalents
only to the extent provided by the Administrator.

9. Incentive Bonuses

     (a) General. Each Incentive Bonus Award will confer upon the Participant the opportunity to
earn a future payment tied to the level of achievement with respect to one or more performance
criteria established for a performance period established by the Administrator.

     (b) Incentive Bonus Document. The terms of any Incentive Bonus will be set forth in an Award
Agreement. Each Award Agreement evidencing an Incentive Bonus shall contain provisions regarding
(i) the target and maximum amount payable to the Participant as an Incentive Bonus, (ii) the
performance criteria and level of achievement versus these criteria that shall determine the amount
of such payment, (iii) the term of the performance period as to which performance shall be measured
for determining the amount of any payment, (iv) the timing of any payment earned by virtue of
performance, (v) restrictions on the alienation or transfer of the Incentive Bonus prior to actual
payment, (vi) forfeiture provisions and (vii) such further terms and conditions, in each case not
inconsistent with this Plan as may be determined from time to time by the Administrator.

     (c) Performance Criteria. The Administrator shall establish the performance criteria and level
of achievement versus these criteria that shall determine the target and maximum amount payable
under an Incentive Bonus, which criteria may be based on financial performance and/or personal
performance evaluations. The Administrator may specify the percentage of the target Incentive Bonus
that is intended to satisfy the requirements for “performance-based compensation” under Section
162(m) of the Code.

     (d) Timing and Form of Payment. The Administrator shall determine the timing of payment of any
Incentive Bonus. Payment of the amount due under an Incentive Bonus may be

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made in cash or in Shares, as determined by the Administrator. The Administrator may provide
for or, subject to such terms and conditions as the Administrator may specify, may permit a
Participant to elect for the payment of any Incentive Bonus to be deferred to a specified date or
event.

     (e) Discretionary Adjustments. Notwithstanding satisfaction of any performance goals, the
amount paid under an Incentive Bonus on account of either financial performance or personal
performance evaluations may, to the extent specified in the Award Agreement, be reduced, but not
increased, by the Administrator on the basis of such further considerations as the Administrator
shall determine.

     (f) Subplans. Incentive Bonuses payable hereunder may be pursuant to one or more subplans.
Incentive Bonuses for 2009 shall be payable pursuant to the Ancestry.com Inc. 2009 Annual
Performance Incentive Program.

10. Deferral of Gains

     The Administrator may, in an Award Agreement or otherwise, provide for the deferred delivery
of Shares upon settlement, vesting or other events with respect to Restricted Stock or Restricted
Stock Units, or in payment or satisfaction of an Incentive Bonus. Notwithstanding anything herein
to the contrary, in no event will any deferral of the delivery of Shares or any other payment with
respect to any Award be allowed if the Administrator determines, in its sole discretion, that the
deferral would result in the imposition of the additional tax under Section 409A(a)(1)(B) of the
Code. No award shall provide for deferral of compensation that does not comply with Section 409A of
the Code, unless the Board, at the time of grant, specifically provides that the Award is not
intended to comply with Section 409A of the Code. The Company shall have no liability to a
Participant, or any other party, if an Award that is intended to be exempt from, or compliant with,
Section 409A of the Code is not so exempt or compliant or for any action taken by the Board.

11. Conditions and Restrictions Upon Securities Subject to Awards

     The Administrator may provide that the Shares issued upon exercise of an Option or Stock
Appreciation Right or otherwise subject to or issued under an Award shall be subject to such
further agreements, restrictions, conditions or limitations as the Administrator in its discretion
may specify prior to the exercise of such Option or Stock Appreciation Right or the grant, vesting
or settlement of such Award, including without limitation, conditions on vesting or
transferability, forfeiture or repurchase provisions and method of payment for the Shares issued
upon exercise, vesting or settlement of such Award (including the actual or constructive surrender
of Shares already owned by the Participant) or payment of taxes arising in connection with an
Award. Without limiting the foregoing, such restrictions may address the timing and manner of any
resales by the Participant or other subsequent transfers by the Participant of any Shares issued
under an Award, including without limitation (i) restrictions under an insider trading policy or
pursuant to applicable law, (ii) restrictions designed to delay and/or coordinate the timing and
manner of sales by Participant and holders of other Company equity compensation arrangements, (iii)
restrictions as to the use of a specified brokerage firm for such

11

 

resales or other transfers and (iv) provisions requiring Shares to be sold on the open market
or to the Company in order to satisfy tax withholding or other obligations.

12. Adjustment of and Changes in the Stock; Certain Transactions

     (a) In the event that any dividend or other distribution (whether in the form of cash, Shares,
other securities or other property, but excluding regular, quarterly and other periodic cash
dividends), stock split or a combination or consolidation of the outstanding Shares into a lesser
number of shares, is declared with respect to the Shares, the authorization limits under Sections
5(a) and 5(c) shall be increased or decreased proportionately, and the Shares then subject to each
Award shall be increased or decreased proportionately without any change in the aggregate purchase
price therefore. In the event the Shares shall be changed into or exchanged for a different number
or class of shares of stock or securities of the Company or of another corporation, whether through
recapitalization, reorganization, reclassification, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Shares or other securities of the Company, issuance of
warrants or other rights to purchase Shares or other securities of the Company, or any other
similar corporate transaction or event affects the Shares such that an equitable adjustment would
be required in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, then the authorization limits under Sections 5(a) and
5(c) shall be adjusted proportionately, and an equitable adjustment shall be made to each Share
subject to an Award such that no dilution or enlargement of the benefits or potential benefits
occurs. Each such Share then subject to each Award shall be adjusted to the number and class of
shares into which each outstanding Share shall be so exchanged such that no dilution or enlargement
of the benefits occurs, all without change in the aggregate purchase price for the Shares then
subject to each Award. Action by the Administrator pursuant to this Section 12(a) may include
adjustment to any or all of: (i) the number and type of Shares (or other securities or other
property) that thereafter may be made the subject of Awards or be delivered under the Plan; (ii)
the number and type of Shares (or other securities or other property) subject to outstanding
Awards; (iii) the purchase price or exercise price of a Share under any outstanding Award or the
measure to be used to determine the amount of the benefit payable on an Award; and (iv) any other
adjustments the Administrator determines to be equitable. No right to purchase fractional shares
shall result from any adjustment in Awards pursuant to this Section 12. In case of any such
adjustment, the Shares subject to the Award shall be rounded down to the nearest whole share. The
Company shall notify Participants holding Awards subject to any adjustments pursuant to this
Section 12(a) of such adjustment, but (whether or not notice is given) such adjustment shall be
effective and binding for all purposes of the Plan.

     (b) Unless otherwise expressly provided in the Award Agreement or another contract, including
an employment agreement, or under the terms of a transaction constituting a Change in Control, the
Administrator may provide for the acceleration of the vesting and, if applicable, exercisability of
any outstanding Award, or portion thereof, or the lapsing of any conditions of restrictions on or
the time for payment in respect of any outstanding Award, or portion thereof upon termination of
the Participant’s employment following a Change in Control. In addition, unless otherwise
expressly provided in the Award Agreement or another contract, including an employment agreement,
or under the terms of a transaction constituting a Change in Control, the Administrator may provide
that any or all of the following shall occur in connection with a

12

 

Change in Control: (a) the substitution for the Shares subject to any outstanding Award, or
portion thereof, stock or other securities of the surviving corporation or any successor
corporation to the Company, or a parent or subsidiary thereof, in which event the aggregate
purchase or exercise price, if any, of such Award, or portion thereof, shall remain the same, (b)
the conversion of any outstanding Award, or portion thereof, into a right to receive cash or other
property upon or following the consummation of the Change in Control in an amount equal to the
value of the consideration to be received by holders of Common Shares in connection with such
transaction for one Share, less the per share purchase or exercise price of such Award, if any,
multiplied by the number of Shares subject to such Award, or a portion thereof, (c) acceleration of
the vesting (and, as applicable, the exercisability) of any and/or all outstanding Awards, and/or
(d) the cancellation of any outstanding and unexercised Awards upon or following the consummation
of the Change in Control. Any actions or determinations of the Administrator pursuant to this
Section 12(b) may, but need not be uniform as to all outstanding Awards, and the Administrator may,
but need not treat all holders of outstanding Awards identically.

13. Performance-Based Compensation

     The Administrator may establish performance criteria and level of achievement versus such
criteria that shall determine the number of Shares to be granted, retained, vested, issued or
issuable under or in settlement of or the amount payable pursuant to an Award. In addition, the
Administrator may specify that an Award or a portion of an Award is intended to satisfy the
requirements for “performance-based compensation” under Section 162(m) of the Code. The
Administrator shall certify the extent to which any performance criteria has been satisfied, and
the amount payable as a result thereof, prior to payment, settlement or vesting of any Award that
is intended to satisfy the requirements for “performance-based compensation” under Section 162(m)
of the Code. Notwithstanding satisfaction of any performance goals, the number of Shares issued
under or the amount paid under an award may, to the extent specified in the Award Agreement, be
reduced, but not increased, by the Administrator on the basis of such further considerations as the
Administrator in its sole discretion shall determine.

14. Transferability

     No Award may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
by a Participant other than by will or the laws of descent and distribution, and each Option or
Stock Appreciation Right shall be exercisable only by the Participant during his or her lifetime.
Notwithstanding the foregoing, to the extent permitted by the Administrator, the person to whom an
Award is initially granted (the “Grantee”) may transfer an Award to any “family member” of the
Grantee (as such term is defined in Section 1(a)(5) of the General Instructions to Form S-8 under
the Securities Act of 1933, as amended (“Form S-8”)), to trusts solely for the benefit of such
family members and to partnerships in which such family members and/or trusts are the only
partners; provided that, (i) as a condition thereof, the transferor and the transferee must execute
a written agreement containing such terms as specified by the Administrator, and (ii) the transfer
is pursuant to a gift or a domestic relations order to the extent permitted under the General
Instructions to Form S-8. Except to the extent specified otherwise in the agreement the
Administrator provides for the Grantee and transferee to execute, all vesting, exercisability and
forfeiture provisions that are conditioned on the Grantee’s continued employment, performance

13

 

or service shall continue to be determined with reference to the Grantee’s employment,
performance or service (and not to the status of the transferee) after any transfer of an Award
pursuant to this Section 14, and the responsibility to pay any taxes in connection with an Award
shall remain with the Grantee notwithstanding any transfer other than by will or intestate
succession. Any attempted sale, transfer, pledge, assignment, alienation or hypothecation of an
Award by a Participant in violation of this Section 14 shall result in forfeiture of such Award.

15. Suspension or Termination of Awards

     Except as otherwise provided by the Administrator, if at any time (including after a notice of
exercise has been delivered or an award has vested) the Chief Executive Officer or any other person
designated by the Administrator (each such person, an “Authorized Officer”) reasonably believes
that a Participant may have committed any act constituting Cause for termination of employment, or
a violation of any non-competition covenant, the Authorized Officer, Administrator or the Board may
suspend the Participant’s rights to exercise any Option, to vest in an Award, and/or to receive
payment for or receive Shares in settlement of an Award pending a determination of whether such an
act has been committed.

     If the Administrator or an Authorized Officer determines a Participant has committed any act
constituting Cause for termination of employment or a violation of any non-competition covenant,
then except as otherwise provided by the Administrator, (i) neither the Participant nor his or her
estate nor transferee shall be entitled to exercise any Option or Stock Appreciation Right
whatsoever, vest in or have the restrictions on an Award lapse, or otherwise receive payment of an
Award, (ii) the Participant will forfeit all outstanding Awards and (iii) the Participant may be
required, at the Administrator’s sole discretion, to return and/or repay to the Company any then
unvested Shares previously issued under the Plan. In making such determination, the Administrator
or an Authorized Officer shall give the Participant an opportunity to appear and present evidence
on his or her behalf at a hearing before the Administrator or its designee or an opportunity to
submit written comments, documents, information and arguments to be considered by the
Administrator.

16. Compliance with Laws and Regulations

     This Plan, the grant, issuance, vesting, exercise and settlement of Awards thereunder, and the
obligation of the Company to sell, issue or deliver Shares under such Awards, shall be subject to
all applicable foreign, federal, state and local laws, rules and regulations, stock exchange rules
and regulations, and to such approvals by any governmental or regulatory agency as may be required.
The Company shall not be required to register in a Participant’s name or deliver any Shares prior
to the completion of any registration or qualification of such shares under any foreign, federal,
state or local law or any ruling or regulation of any government body which the Administrator shall
determine to be necessary or advisable. To the extent the Company is unable to or the Administrator
deems it infeasible to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any
Shares hereunder, the Company and its Subsidiaries shall be relieved of any liability with respect
to the failure to issue or sell such Shares as to which such requisite authority shall not have
been obtained. No Option shall be exercisable and no Shares shall be issued and/or transferable
under any other Award unless a

14

 

registration statement with respect to the Shares underlying such Option is effective and
current or the Company has determined that such registration is unnecessary.

     In the event an Award is granted to or held by a Participant who is employed or providing
services outside the United States, the Administrator may, in its sole discretion, modify the
provisions of the Plan or of such Award as they pertain to such individual to comply with
applicable foreign law or to recognize differences in local law, currency or tax policy. The
Administrator may also impose conditions on the grant, issuance, exercise, vesting, settlement or
retention of Awards in order to comply with such foreign law and/or to minimize the Company’s
obligations with respect to tax equalization for Participants employed outside their home country.

17. Withholding

     To the extent required by applicable federal, state, local or foreign law, a Participant shall
be required to satisfy, in a manner satisfactory to the Company, any withholding tax obligations
that arise by reason of an Option exercise, disposition of Shares issued under an Incentive Stock
Option, the vesting of or settlement of an Award, an election pursuant to Section 83(b) of the Code
or otherwise with respect to an Award. To the extent a Participant makes an election under Section
83(b) of the Code, within ten (10) days of filing such election with the Internal Revenue Service,
the Participant must notify the Company in writing of such election. The Company and its
Subsidiaries shall not be required to issue Shares, make any payment or to recognize the transfer
or disposition of Shares until all such obligations are satisfied. The Administrator may provide
for or permit these obligations to be satisfied through the mandatory or elective sale of Shares
and/or by having the Company withhold a portion of the Shares that otherwise would be issued to him
or her upon exercise of the Option or the vesting or settlement of an Award, or by tendering Shares
previously acquired.

18. Administration of the Plan

     (a) Administrator of the Plan. The Plan shall be administered by the Administrator who shall
be the Compensation Committee of the Board or, in the absence of a Compensation Committee, the
Board itself. Any power of the Administrator may also be exercised by the Board, except to the
extent that the grant or exercise of such authority would cause any Award or transaction to become
subject to (or lose an exemption under) the short-swing profit recovery provisions of Section 16 of
the Securities Exchange Act of 1934 or cause an Award designated as a Performance Award not to
qualify for treatment as performance-based compensation under Section 162(m) of the Code. To the
extent that any permitted action taken by the Board conflicts with action taken by the
Administrator, the Board action shall control. The Compensation Committee may by resolution
authorize one or more officers of the Company to perform any or all things that the Administrator
is authorized and empowered to do or perform under the Plan, and for all purposes under this Plan,
such officer or officers shall be treated as the Administrator; provided, however, that the
resolution so authorizing such officer or officers shall specify the total number of Awards (if
any) such officer or officers may award pursuant to such delegated authority, and any such Award
shall be subject to the form of Option agreement theretofore approved by the Compensation
Committee. No such officer shall designate himself or herself as a recipient of any Awards granted
under authority delegated to such officer. The Compensation

15

 

Committee hereby designates the Secretary of the Company and the head of the Company’s human
resource function to assist the Administrator in the administration of the Plan and execute
agreements evidencing Awards made under this Plan or other documents entered into under this Plan
on behalf of the Administrator or the Company. In addition, the Compensation Committee may delegate
any or all aspects of the day-to-day administration of the Plan to one or more officers or
employees of the Company or any Subsidiary, and/or to one or more agents.

     (b) Powers of Administrator. Subject to the express provisions of this Plan, the Administrator
shall be authorized and empowered to do all things that it determines to be necessary or
appropriate in connection with the administration of this Plan, including, without limitation: (i)
to prescribe, amend and rescind rules and regulations relating to this Plan and to define terms not
otherwise defined herein; (ii) to determine which persons are Participants, to which of such
Participants, if any, Awards shall be granted hereunder and the timing of any such Awards; (iii) to
grant Awards to Participants and determine the terms and conditions thereof, including the number
of Shares subject to Awards and the exercise or purchase price of such Shares and the circumstances
under which Awards become exercisable or vested or are forfeited or expire, which terms may but
need not be conditioned upon the passage of time, continued employment, the satisfaction of
performance criteria, the occurrence of certain events (including a Change in Control), or other
factors; (iv) to establish and verify the extent of satisfaction of any performance goals or other
conditions applicable to the grant, issuance, exercisability, vesting and/or ability to retain any
Award; (v) to prescribe and amend the terms of the agreements or other documents evidencing Awards
made under this Plan (which need not be identical) and the terms of or form of any document or
notice required to be delivered to the Company by Participants under this Plan; (vi) to determine
the extent to which adjustments are required pursuant to Section 12; (vii) to interpret and
construe this Plan, any rules and regulations under this Plan and the terms and conditions of any
Award granted hereunder, and to make exceptions to any such provisions if the Administrator, in
good faith, determines that it is necessary to do so in light of extraordinary circumstances and
for the benefit of the Company; (viii) to approve corrections in the documentation or
administration of any Award; (ix) to reduce the exercise price of any Option or Stock Appreciation
Right to the Fair Market Value of the Shares at the time of the reduction if the Fair Market Value
of the Shares covered by that Option or Stock Appreciation Right has declined since the date it was
granted, either directly or through cancellation and regrant of the Option or Stock Appreciation
Right; (x) to exchange Options and Stock Appreciation Rights for other Awards; (xi) to cause the
Company to purchase outstanding Options and Stock Appreciation Rights for cash or other
consideration; (xii) to require or permit Participant elections and/or consents under this Plan to
be made by means of such electronic media as the Administrator may prescribe; and (xiii) to make
all other determinations deemed necessary or advisable for the administration of this Plan. The
Administrator may, in its sole and absolute discretion, without amendment to the Plan, waive or
amend the operation of Plan provisions respecting exercise after termination of employment or
service to the Company or a Company Affiliate and, except as otherwise provided herein, adjust any
of the terms of any Award. The Administrator may also (A) accelerate the date on which any Award
granted under the Plan becomes exercisable or (B) accelerate the vesting date or waive or adjust
any condition imposed hereunder with respect to the vesting or exercisability of an Award, provided
that the Administrator, in good faith, determines that such acceleration, waiver or other
adjustment is necessary or desirable in light of extraordinary circumstances.

16

 

     (c) Determinations by the Administrator. All decisions, determinations and interpretations by
the Administrator regarding the Plan, any rules and regulations under the Plan and the terms and
conditions of or operation of any Award granted hereunder, shall be final and binding on all
Participants, beneficiaries, heirs, assigns or other persons holding or claiming rights under the
Plan or any Award. The Administrator shall consider such factors as it deems relevant, in its sole
and absolute discretion, to making such decisions, determinations and interpretations including,
without limitation, the recommendations or advice of any officer or other employee of the Company
and such attorneys, consultants and accountants as it may select.

     (d) Subsidiary Awards. In the case of a grant of an Award to any Participant employed by a
Subsidiary, such grant may, if the Administrator so directs, be implemented by the Company issuing
any subject Shares to the Subsidiary, for such lawful consideration as the Administrator may
determine, upon the condition or understanding that the Subsidiary will transfer the Shares to the
Participant in accordance with the terms of the Award specified by the Administrator pursuant to
the provisions of the Plan. Notwithstanding any other provision hereof, such Award may be issued by
and in the name of the Subsidiary and shall be deemed granted on such date as the Administrator
shall determine.

19. Amendment of the Plan or Awards

     The Board may amend, alter or discontinue this Plan and the Administrator may amend or alter
any agreement or other document evidencing an Award made under this Plan but, except as provided
pursuant to the provisions of Section 12, no such amendment shall, without the approval of the
stockholders of the Company:

     (a) increase the maximum number of Shares for which Awards may be granted under this Plan;

     (b) reduce the price at which Options may be granted below the price provided for in Section
6(b);

     (c) change the class of persons eligible to be Participants; or

     (d) otherwise amend the Plan in any manner requiring stockholder approval by law or under
stock exchange listing requirements.

     No amendment or alteration to the Plan or an Award or Award Agreement shall be made which
would impair the rights of the holder of an Award, without such holder’s consent, provided that no
such consent shall be required if the Administrator determines in its sole discretion and prior to
the date of any Change in Control that such amendment or alteration either is required or advisable
in order for the Company, the Plan or the Award to satisfy any law or regulation or to meet the
requirements of or avoid adverse financial accounting consequences under any accounting standard.

20. No Liability of Company

     The Company and any Subsidiary or affiliate which is in existence or hereafter comes into
existence shall not be liable to a Participant or any other person as to: (i) the non-issuance or

17

 

sale of Shares as to which the Company has been unable to obtain from any regulatory body
having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any Shares hereunder; and (ii) any tax consequence expected, but not realized,
by any Participant or other person due to the receipt, exercise or settlement of any Award granted
hereunder.

21. Non-Exclusivity of Plan

     Neither the adoption of this Plan by the Board nor the submission of this Plan to the
stockholders of the Company for approval shall be construed as creating any limitations on the
power of the Board or the Administrator to adopt such other incentive arrangements as either may
deem desirable, including without limitation, the granting of restricted stock or stock options
otherwise than under this Plan or an arrangement not intended to qualify under Code Section 162(m),
and such arrangements may be either generally applicable or applicable only in specific cases.

22. Governing Law

     This Plan and any agreements or other documents hereunder shall be interpreted and construed
in accordance with the laws of Delaware and applicable federal law. Any reference in this Plan or
in the agreement or other document evidencing any Awards to a provision of law or to a rule or
regulation shall be deemed to include any successor law, rule or regulation of similar effect or
applicability.

23. No Right to Employment, Reelection or Continued Service

     Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right
of the Company, its Subsidiaries and/or its affiliates to terminate any Participant’s employment,
service on the Board or service for the Company at any time or for any reason not prohibited by
law, nor shall this Plan or an Award itself confer upon any Participant any right to continue his
or her employment or service for any specified period of time. Neither an Award nor any benefits
arising under this Plan shall constitute an employment contract with the Company, any Subsidiary
and/or its affiliates. Subject to Sections 4 and 19, this Plan and the benefits hereunder may be
terminated at any time in the sole and exclusive discretion of the Board without giving rise to any
liability on the part of the Company, its Subsidiaries and/or its affiliates.

24. Unfunded Plan

     The Plan is intended to be an unfunded plan. Participants are and shall at all times be
general creditors of the Company with respect to their Awards. If the Administrator or the Company
chooses to set aside funds in a trust or otherwise for the payment of Awards under the Plan, such
funds shall at all times be subject to the claims of the creditors of the Company in the event of
its bankruptcy or insolvency.

18EX-10.6

Exhibit 10.6

MYFAMILY.COM, INC.

1998 STOCK PLAN

STOCK OPTION AGREEMENT

     Unless otherwise defined herein, the terms defined in the 1998 Stock Plan (the “Plan”) shall
have the same defined meanings in this Stock Option Agreement (this “Option Agreement”).

I. NOTICE OF STOCK OPTION GRANT

     «FirstName» «LastName»

     «Address»

     «City», «State» «Zip»

     The undersigned Optionee has been granted an Option to purchase Common Stock of the Company,
subject to the terms and conditions of the Plan and this Option Agreement, as follows:

	 	 	 	 	 
	 

	 	Grant Number
	 	«Grant_No»
	 
	 	 	 	 
	 

	 	Date of Grant
	 	«GrantDate»
	 
	 	 	 	 
	 

	 	Vesting Commencement Date
	 	«VestingDate»
	 
	 	 	 	 
	 

	 	Exercise Price per Share
	 	$.xx
	 
	 	 	 	 
	 

	 	Total Number of Shares Granted
	 	«Shares»
	 
	 	 	 	 
	 

	 	Total Exercise Price
	 	«TotalExercisePrice»
	 
	 	 	 	 
	 

	 	Type of Option:
	 	þ Incentive Stock Option
	 
	 	 	 	 
	 

	 	 	 	o Nonstatutory Stock Option
	 
	 	 	 	 
	 

	 	Term/Expiration Date:
	 	«ExpirationDate»

     Vesting Schedule:

     This Option shall be exercisable, in whole or in part, according to the following vesting
schedule:

     25% of the Shares subject to the Option shall vest twelve months after the Vesting
Commencement Date, and 1/48 of the Shares subject to the Option shall vest each month thereafter,
subject to Optionee’s continuing to be a Service Provider on such dates.

 

 

     Termination Period:

     This Option shall be exercisable until the earliest to occur of (a) the Term/Expiration Date
as provided above, (b) the date that is one year after Optionee ceases to be a Service Provider if
due to Optionee’s death or Disability, (c) the date that is three months after Optionee ceases to
be a Service Provider for any reason other than Optionee’s death or Disability, and (d) the third
anniversary of the closing of an initial public offering of the common stock of the Company.

II. AGREEMENT

     1. Grant of Option. The Plan Administrator of the Company hereby grants to the
Optionee named in the Notice of Stock Option Grant (the “Optionee”), an option (the “Option”) to
purchase the number of Shares set forth in the Notice of Stock Option Grant, at the exercise price
per Share set forth in the Notice of Stock Option Grant (the “Exercise Price”), and subject to the
terms and conditions of the Plan, which is incorporated herein by reference. Subject to Section
14(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and this
Option Agreement, the terms and conditions of the Plan shall prevail.

          If designated in the Notice of Stock Option Grant as an Incentive Stock Option (“ISO”), this
Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code.
Nevertheless, to the extent that it exceeds the $100,000 rule of Code Section 422(d), this Option
shall be treated as a Nonstatutory Stock Option (“NSO”).

     2. Exercise of Option.

          (a) Right to Exercise. This Option shall be exercisable during its term in accordance
with the Vesting Schedule set out in the Notice of Stock Option Grant and with the applicable
provisions of the Plan and this Option Agreement.

          (b) Method of Exercise. This Option shall be exercisable by delivery of an exercise
notice in the form attached as Exhibit A (the “Exercise Notice”) which shall state the
election to exercise the Option, the number of Shares with respect to which the Option is being
exercised, and such other representations and agreements as may be required by the Company. The
Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised
Shares. This Option shall be deemed to be exercised upon receipt by the Company of such fully
executed Exercise Notice accompanied by the aggregate Exercise Price.

          No Shares shall be issued pursuant to the exercise of an Option unless such issuance and such
exercise complies with Applicable Laws. Assuming such compliance, for income tax purposes the
Shares shall be considered transferred to the Optionee on the date on which the Option is exercised
with respect to such Shares.

     3. Optionee’s Representations. In the event the Shares have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”), at the time this Option is
exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or
any portion of this Option, deliver to the Company his or her Investment Representation Statement
in the form attached hereto as Exhibit B.

2

 

     4. Lock-Up Period. Optionee hereby agrees that, if so requested by the Company or any
representative of the underwriters (the “Managing Underwriter”) in connection with any registration
of the offering of any securities of the Company under the Securities Act, Optionee shall not sell
or otherwise transfer any Shares or other securities of the Company during the 180-day period (or
such other period as may be requested in writing by the Managing Underwriter and agreed to in
writing by the Company) (the “Market Standoff Period”) following the effective date of a
registration statement of the Company filed under the Securities Act. Such restriction shall apply
only to the first registration statement of the Company to become effective under the Securities
Act that includes securities to be sold on behalf of the Company to the public in an underwritten
public offering under the Securities Act. The Company may impose stop-transfer instructions with
respect to securities subject to the foregoing restrictions until the end of such Market Standoff
Period.

     5. Method of Payment. Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:

          (a) cash or check;

          (b) consideration received by the Company under a formal cashless exercise program adopted by
the Company in connection with the Plan; or

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

     6. Restrictions on Exercise. This Option may not be exercised until such time as the
Plan has been approved by the shareholders of the Company, or if the issuance of such Shares upon
such exercise or the method of payment of consideration for such shares would constitute a
violation of any Applicable Law.

     7. Non-Transferability of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by Optionee. The terms of the Plan and this Option Agreement shall be
binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

     8. Term of Option. This Option may be exercised only within the term set out in the
Notice of Grant, and may be exercised during such term only in accordance with the Plan and the
terms of this Option.

     9. Tax Consequences. Set forth below is a brief summary as of the date of this Option
of some of the federal tax consequences of exercise of this Option and disposition of the Shares.
THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

          (a) Exercise of NSO. There may be a regular federal income tax liability upon the
exercise of an NSO. The Optionee will be treated as having received compensation

3

 

income (taxable
at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares
on the date of exercise over the Exercise Price. If Optionee is an Employee or a former Employee,
the Company will be required to withhold from Optionee’s compensation or collect from Optionee and
pay to the applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of exercise.

          (b) Exercise of ISO. If this Option qualifies as an ISO, there will be no regular
federal income tax liability upon the exercise of the Option, although the excess, if any, of the
Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as
an adjustment to the alternative minimum tax for federal tax purposes and may subject the Optionee
to the alternative minimum tax in the year of exercise.

          (c) Disposition of Shares. In the case of an NSO, if Shares are held for at least one
year, any gain realized on disposition of the Shares will be treated as long-term capital gain for
federal income tax purposes. In the case of an ISO, if Shares transferred pursuant to the Option
are held for at least one year after exercise and of at least two years after the Date of Grant,
any gain realized on disposition of the Shares will also be treated as long-term capital gain for
federal income tax purposes. If Shares purchased under an ISO are disposed of within one year
after exercise or two years after the Date of Grant, any gain realized on such disposition will be
treated as compensation income (taxable at ordinary income tax rates) to the extent of the
difference between the Exercise Price and the lesser of (1) the Fair Market Value of the Shares on
the date of exercise, or (2) the sale price of the Shares. Any additional gain will be taxed as
capital gain, short-term or long-term depending on the period that the ISO Shares were held.

          (d) Notice of Disqualifying Disposition of ISO Shares. If the Option granted to
Optionee herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares
acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of
Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify
the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income
tax withholding by the Company on the compensation income recognized by the Optionee.

     10. Entire Agreement; Governing Law. The Plan is incorporated herein by reference.
The Plan and this Option Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and
supersede in their entirety all prior undertakings and agreements of the Company and Optionee
with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s
interest except by means of a writing signed by the Company and Optionee. This agreement is
governed by the internal substantive laws but not the choice of law rules of Delaware.

     11. No Guarantee of Continued Service. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE
PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION
OR ACQUIRING SHARES HEREUNDER). OPTIONEE

4

 

FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE
TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD,
FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE
COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
WITHOUT CAUSE.

     Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar
with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms
and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Option and fully understands
all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final
all decisions or interpretations of the Administrator upon any questions arising under the Plan or
this Option. Optionee further agrees to notify the Company upon any change in the residence
address indicated below.

	 	 	 
	OPTIONEE

	 	MYFAMILY.COM, INC.
	 
	 	 
	 
	 	 
	 

	 	 
	Signature

	 	By
	 
	 	 
	«FirstName» «LastName»
	 	 
	 

	 	 
	Print Name

	 	Title
	 
	 	 
	«Address»
	 	 
	«City», «State» «Zip»
	 	 
	Residence Address
	 	 

5

 

EXHIBIT A

1998 STOCK PLAN

EXERCISE NOTICE

MyFamily.com, Inc.

360 W. 4800 N.

Provo, UT 84604

Attention: Chief Financial Officer

     1. Exercise of Option. Effective as of today,________, ___, the undersigned
(“Optionee”) hereby elects to exercise Optionee’s option to purchase ________ shares of the Common
Stock (the “Shares”) of MyFamily.com, Inc. (the “Company”) under and pursuant to the 1998 Stock
Plan (the “Plan”) and the Stock Option Agreement dated ________, ___ (the “Option Agreement”).

     2. Delivery of Payment. Purchaser herewith delivers to the Company the full purchase
price of the Shares, as set forth in the Option Agreement.

     3. Representations of Optionee. Optionee acknowledges that Optionee has received,
read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their
terms and conditions.

     4. Rights as Shareholder. Until the issuance of the Shares (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Shares shall
be issued to the Optionee as soon as practicable after the Option is exercised. No adjustment
shall be made for a dividend or other right for which the record date is prior to the date of
issuance except as provided in Section 12 of the Plan.

     5. Company’s Right of First Refusal. Before any Shares held by Optionee or any
transferee (either being sometimes referred to herein as the “Holder”) may be sold or otherwise
transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall
have a right of first refusal to purchase the Shares on the terms and conditions set forth in this
[missing text in original] (the “Right of First Refusal”).

          (a) Notice of Proposed Transfer. The Holder of the Shares shall deliver to the
Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to sell or
otherwise transfer such Shares; (ii) the name of each proposed purchaser or other transferee
(“Proposed Transferee”); (iii) the number of Shares to be transferred to each Proposed Transferee;
and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer
the Shares (the “Offered Price”), and the Holder shall offer the Shares at the Offered Price to the
Company or its assignee(s).

 

 

          (b) Exercise of Right of First Refusal. At any time within thirty (30) days after
receipt of the Notice, the Company and/or its assignee(s) may, by giving written notice to the
Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to
any one or more of the Proposed Transferees, at the purchase price determined in accordance with
subsection (c) below.

          (c) Purchase Price. The purchase price (“Purchase Price”) for the Shares purchased by
the Company or its assignee(s) under this Section shall be the Offered Price. If the Offered Price
includes consideration other than cash, the cash equivalent value of the non-cash consideration
shall be determined by the Board of Directors of the Company in good faith.

          (d) Payment. Payment of the Purchase Price shall be made, at the option of the
Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any
outstanding indebtedness of the Holder
to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any
combination thereof within 30 days after receipt of the Notice or in the manner and at the times
set forth in the Notice.

          (e) Holder’s Right to Transfer. If all of the Shares proposed in the Notice to be
transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s)
as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that
Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other
transfer is consummated within 120 days after the date of the Notice, that any such sale or other
transfer is effected in accordance with any applicable securities laws and that the Proposed
Transferee agrees in writing that the provisions of this Section shall continue to apply to the
Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, a new Notice shall be given to the
Company, and the Company and/or its assignees shall again be offered the Right of First Refusal
before any Shares held by the Holder may be sold or otherwise transferred.

          (f) Exception for Certain Family Transfers. Anything to the contrary contained in
this Section notwithstanding, the transfer of any or all of the Shares during the Optionee’s
lifetime or on the Optionee’s death by will or intestacy to the Optionee’s immediate family or a
trust for the benefit of the Optionee’s immediate family shall be exempt from the provisions of
this Section. “Immediate Family” as used herein shall mean spouse, lineal descendant or
antecedent, father, mother, brother or sister. In such case, the transferee or other recipient
shall receive and hold the Shares so transferred subject to the provisions of this Section, and
there shall be no further transfer of such Shares except in accordance with the terms of this
Section.

          (g) Termination of Right of First Refusal. The Right of First Refusal shall terminate
as to any Shares upon the first sale of Common Stock of the Company to the general public pursuant
to a registration statement filed with and declared effective by the Securities and Exchange
Commission under the Securities Act of 1933, as amended.

     6. Tax Consultation. Optionee understands that Optionee may suffer adverse tax
consequences as a result of Optionee’s purchase or disposition of the Shares. Optionee represents
that Optionee has consulted with any tax consultants Optionee deems advisable in

2

 

connection with
the purchase or disposition of the Shares and that Optionee is not relying on the Company for any
tax advice.

     7. Restrictive Legends and Stop-Transfer Orders.

          (a) Legends. Optionee understands and agrees that the Company shall cause the legends
set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s)
evidencing ownership of the Shares together with any other legends that may be required by the
Company or by state or federal securities laws:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) AND MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
REGISTERED UNDER THE ACT OR, IN THE OPINION OF COMPANY COUNSEL SATISFACTORY
TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR
ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND
THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE
PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF
FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

          (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with
the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions
to its transfer agent, if any, and that, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

          (c) Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Exercise Notice or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred.

     8. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this Exercise Notice shall inure to the
benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
herein set forth, this Exercise Notice shall be binding upon Optionee and his or her heirs,
executors, administrators, successors and assigns.

3

 

     9. Interpretation. Any dispute regarding the interpretation of this Exercise Notice
shall be submitted by Optionee or by the Company forthwith to the Administrator which shall review
such dispute at its next regular meeting. The resolution of such a dispute by the Administrator
shall be final and binding on all parties.

     10. Governing Law; Severability. This Exercise Notice is governed by the internal
substantive laws but not the choice of law rules, of Delaware.

     11. Entire Agreement. The Plan and Option Agreement are incorporated herein by
reference. This Exercise Notice, the Plan, the Option Agreement and the Investment Representation
Statement constitute the entire agreement of the parties with respect to the subject matter hereof
and supersede in their entirety all prior undertakings and agreements of the Company and Optionee
with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s
interest except by means of a writing signed by the Company and Optionee.

	 	 	 
	Submitted by:

	 	Accepted by:
	 
	 	 
	OPTIONEE

	 	MYFAMILY.COM, INC.
	 
	 	 
	 
	 	 
	 

	 	 
	Signature

	 	By
	 
	 	 
	«FirstName» «LastName»
	 	 
	 

	 	 
	Print Name

	 	Name and Title
	 
	 	 
	Address:

	 	Address:
	 

	 	 
	 
	 	 
	«Address»

«City», «State» «Zip»

	 	360 W. 4800 N.

Provo, UT 84604
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Date Received

4

 

EXHIBIT B

INVESTMENT REPRESENTATION STATEMENT

	 	 	 
	OPTIONEE:

	 	«FirstName» «LastName»
	 
	 	 
	COMPANY:

	 	MYFAMILY.COM, INC.
	 
	 	 
	SECURITY:

	 	COMMON STOCK

AMOUNT:

DATE:

     In connection with the purchase of the above-listed Securities, the undersigned Optionee
represents to the Company the following:

     (a) Optionee is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and knowledgeable decision
to acquire the Securities. Optionee is acquiring these Securities for investment for Optionee’s
own account only and not with a view to, or for resale in connection with, any “distribution”
thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

     (b) Optionee acknowledges and understands that the Securities constitute “restricted
securities” under the Securities Act and have not been registered under the Securities Act in
reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the
bona fide nature of Optionee’s investment intent as expressed herein. In this connection, Optionee
understands that, in the view of the Securities and Exchange Commission, the statutory basis for
such exemption may be unavailable if Optionee’s representation was predicated solely upon a present
intention to hold these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the market price of the
Securities, or for a period of one year or any other fixed period in the future. Optionee further
understands that the Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available. Optionee further
acknowledges and understands that the Company is under no obligation to register the Securities.
Optionee understands that the certificate evidencing the Securities will be imprinted with a legend
which prohibits the transfer of the Securities unless they are registered or such registration is
not required in the opinion of counsel satisfactory to the Company, and any other legend required
under applicable state securities laws.

     (c) Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under
the Securities Act, which, in substance, permit limited public resale of “restricted securities”
acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions. Rule 701 provides that if the issuer

 

 

qualifies under Rule 701
at the time of the grant of the Option to the Optionee, the exercise will be exempt from
registration under the Securities Act. In the event the Company becomes subject to the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days
thereafter (or such longer period as any market stand-off agreement may require) the Securities
exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions
specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited
“broker’s transaction” or in transactions directly with a market maker (as said term is defined
under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability
of certain public information about the Company, (3) the amount of Securities being sold during any
three-month period not exceeding the limitations specified in Rule 144(e), and (4) the timely
filing of a Form 144, if applicable.

     In the event that the Company does not qualify under Rule 701 at the time of grant of the
Option, then the Securities may be resold in certain limited circumstances subject to the
provisions of Rule 144, which requires the resale to occur not less than one year after the later
of the date the Securities were sold by the Company or the date the Securities were sold by an
affiliate of the Company, within the meaning of Rule 144; and, in the case of
acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently holds
the Securities less than two years, the satisfaction of the conditions set forth in sections (1),
(2), (3) and (4) of the paragraph immediately above.

          (d) Optionee further understands that in the event all of the applicable requirements of Rule
701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A,
or some other registration exemption will be required; and that, notwithstanding the fact that
Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has
expressed its opinion that persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden
of proof in establishing that an exemption from registration is available for such offers or sales,
and that such persons and their respective brokers who participate in such transactions do so at
their own risk. Optionee understands that no assurances can be given that any such other
registration exemption will be available in such event.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Signature of Optionee:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	,	 	 	 
	 	 	 	 	 	 	 

2

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