Document:

Form of Long Term Incentive Plan Restricted Stock Agreement

 Exhibit 10.6 
 RED HAT, INC. 
 Red Hat, Inc. 2004 Long-Term Incentive Plan

 Restricted Stock Agreement 
 Cover Sheet 
 Red Hat, Inc., a Delaware corporation, hereby grants as of the date
below (the “Grant Date”) to the person named below (the “Participant”) and the Participant hereby accepts, the number of restricted shares (the “Restricted Stock”) listed below of the Company’s common stock, $.0001
par value per share, with a vesting start date (the “Vesting Start Date”) listed below, such grant to be on the terms and conditions specified in the Red Hat, Inc. 2004 Long-Term Incentive Plan and in the attached Exhibit A.

  

			
	 Participant Name:
	 	             **

		
	 Grant Date:
	 	             **

		
	 Vesting Start Date:
	 	             **

		
	 Number of Shares of Restricted Stock:
	 	
            **

IN WITNESS WHEREOF, the Company and the Participant have caused this instrument to be executed as of the Grant Date set forth above. 

 

							
	  
	 		 	RED HAT, INC.
	(Participant Signature)	 		 	1801 Varsity Drive
		 		 	Raleigh, North Carolina 27606
				
	  
	 		 	By:	 	  

	(Street Address)	 		 	Name:	 	
		 		 	Title:	 	
	  
	 		 		 	
	(City/State/Zip Code)	 		 		 	

 PLEASE RETURN ONE SIGNED COVER SHEET 

TO EMILY DEL TORO/ LEGAL DEPT. 
 CENTENNIAL CAMPUS 
 FAX NUMBER (919) 754-3715 

 EXHIBIT A 

RED HAT, INC. 
 Red Hat, Inc. 2004 Long-Term Incentive Plan 
 Restricted Stock Agreement

 Terms and Conditions 
 1. Grant under Red Hat, Inc. 2004 Long-Term Incentive Plan. The Restricted Stock is granted pursuant to and is subject to and governed by the Company’s 2004 Long-Term Incentive Plan
(the “Plan”) and, unless the context otherwise requires, terms used herein shall have the same meaning as in the Plan or shall be defined as on the cover sheet attached hereto. Determinations made in connection with the Restricted
Stock pursuant to the Plan shall be governed by the Plan as it exists on the Grant Date. 
 2. Vesting if Business
Relationship Continues. All of the shares of Restricted Stock initially shall be unvested shares. For so long as the Participant maintains continuous service to the Company or its subsidiaries or affiliates as an employee, officer, director
or consultant (a “Business Relationship”) throughout the period beginning on the Grant Date and ending on the vesting date set forth below, the Restricted Stock shall become vested according to the schedule set forth below, subject
to Section 3 hereof: 
  

			
	 Vesting Date
	  	 Number of Vested Shares

		
	One year from the Vesting Start Date (the “Anniversary Date”)	  	25% of the Restricted Stock
		
	On the last day of each subsequent three-month period following the Anniversary Date	  	6.25% of the Restricted Stock

 Until the Restricted Stock
vests, as provided in this Section and in Section 3, the Participant may not sell, assign, transfer, pledge, or otherwise dispose of the Restricted Stock. 
 3. Termination of Business Relationship. If the Participant’s Business Relationship is terminated for any reason, the shares of Restricted Stock that were not vested on the date of such
termination will be forfeited. The shares of Restricted Stock that are forfeited will be cancelled and returned to the Company. For purposes hereof, a Business Relationship shall not be considered as having terminated during any leave of absence if
such leave of absence has been approved in writing by the Company; in the event of such leave of absence, vesting of the Restricted Stock shall be suspended (and the period of the leave of absence shall be added to

  
 -1-

 
all vesting dates) unless otherwise determined by the Company. The vesting of the Restricted Stock shall not be affected by any change in the type of Business Relationship the Participant has
within or among the Company and its Subsidiaries or Affiliates so long as the Participant continuously maintains a Business Relationship. 
 4. Legend. Each certificate issued in respect of shares of Restricted Stock under the Agreement shall be registered in the Participant’s name and deposited by the Participant, together
with a stock power endorsed in blank, with the Company and shall bear the following (or a similar) legend: 
 “The
transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture) contained in an Agreement entered into between the registered owner and Red Hat, Inc.” 

When the Restricted Stock vests, the Company shall redeliver to the Participant (or the Participant’s legal representatives, beneficiaries or heirs)
from the shares of Restricted Stock deposited with it the number of shares which have then vested. The Participant agrees that any resale of the shares of Restricted Stock received upon vesting shall be made in compliance with the registration
requirements of the Securities Act of 1933 or an applicable exemption therefrom, including without limitation the exemption provided by Rule 144 promulgated thereunder (or any successor rule). 

5. No Obligation to Continue Business Relationship. Neither the Plan, this Agreement, nor the grant of the Restricted Stock
imposes any obligation on the Company, its Subsidiaries or Affiliates to have a Business Relationship with the Participant. 

6. Rights as Stockholder. Except for the restrictions on transfer and vesting provisions in this Agreement, the Participant
shall have all of the rights of a stockholder of the Company with respect to the Restricted Stock including but not limited to the right to receive dividends paid on the Restricted Stock and the right to vote the Restricted Stock. 

7. Adjustments for Capital Changes. The Plan contains provisions covering the treatment of restricted stock in a number of
contingencies such as stock split and mergers. Provisions in the Plan for such adjustments are hereby made applicable hereunder and are incorporated herein by reference. 
 8. Change in Control. Provisions regarding a Change in Control are set forth on Appendix A. 
 9. Withholding. No Restricted Stock will be redelivered pursuant to the vesting thereof unless and until the Participant pays to the Company, or makes satisfactory provision to the Company
for payment of, any federal, state or local withholding taxes required by law to be held in respect of this Restricted Stock (the “Tax Amount”). The Participant hereby agrees that the Company may withhold from the Participant’s wages
or other remuneration the Tax Amount. At the discretion of the Company, the Tax Amount may be withheld in cash from such wages or from other remuneration, or in kind from the shares or other property otherwise

  
 -2-

 
deliverable to the Participant on vesting of this Restricted Stock. The Participant further agrees that, if the Company does not withhold an amount from the Participant’s wages or other
remuneration sufficient to satisfy the withholding obligation of the Company, the Participant agrees to indemnify the Company in full for the amount underwithheld and to make reimbursement on demand, in cash, for the amount underwithheld within
thirty (30) days after the vesting of the Restricted Stock that gives rise to the withholding obligation. The Participant has reviewed with the Participant’s own tax advisors the federal, state, local and foreign tax consequences of this
investment and the transactions contemplated by this Agreement. 
 The Participant is relying solely on such advisors and not on any statements
or representations of the Company or any of its agents. The Participant understands that the Participant (and not the Company) shall be responsible for the Participant’s own tax liability that may arise as a result of this investment or the
transactions contemplated by this Agreement. The Participant understands that it may be beneficial in many circumstances to elect to be taxed at the time the Restricted Stock is granted rather than when and as the Restricted Stock vests by filing an
election under Section 83(b) of the Code with the I.R.S. within 30 days from the date of grant. 
 10. Lock-up
Agreement. The Participant agrees that in the event that the Company effects an underwritten public offering of Shares registered under the Securities Act, the Restricted Stock may not be sold, offered for sale or otherwise disposed of,
directly or indirectly, without the prior written consent of the managing underwriter(s) of the offering, for such period of time after the execution of an underwriting agreement in connection with such offering that all of the Company’s then
directors and executive officers agree to be similarly bound. 
 11. Provision of Documentation to Participant. By
executing this Agreement the Participant acknowledges receipt of a copy of this Agreement (including the cover sheet) and a copy of the Plan. 
 12. Miscellaneous. 
 (a) Notices. All notices
hereunder shall be in writing and shall be deemed given when sent by certified or registered mail, postage prepaid, return receipt requested, if to the Participant, to the address set forth on the cover sheet or at the most recent address shown on
the records of the Company, and if to the Company, to the Company’s principal office, attention of the Corporate Secretary. 
 (b) Payment of Par Value. Participant shall pay $.0001 par value per share, in cash or other method acceptable to the Company, for each share of Restricted Stock subject to this Agreement.

 (c) Entire Agreement; Modification. This Agreement (including the cover sheet) and the Plan constitutes
the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject matter of this Agreement. This Agreement may be
modified, amended or rescinded only by a written agreement executed by both parties, except that if the Committee determines that the award terms could result in adverse tax consequences 

  
 -3-

 
to the Participant, the Committee may amend this Agreement without the consent of the Participant in order to minimize or eliminate such tax treatment. 

(d) Severability. The invalidity, illegality or unenforceability of any provision of this Agreement shall in no way
affect the validity, legality or enforceability of any other provision. 
 (e) Successors and Assigns.
This Agreement shall inure to the benefit of and be binding upon the heirs, legatees, distributees, executors and administrators of the Participant and the successors and assigns of the Company. 

(f) Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the Delaware,
without giving effect to the principles of the conflicts of laws thereof. 

  
 -4-

 APPENDIX A 
 Notwithstanding anything contained herein to the contrary, if (i) this grant of Restricted Stock is continued, assumed, converted or substituted for immediately following the Change in Control and
(ii) within one year after a Change in Control the Participant’s Business Relationship is terminated by the Company or its successor without Good Cause or by the Participant for Good Reason, all of the Restricted Stock shall be vested.
Furthermore and notwithstanding anything contained herein to the contrary, if this grant of Restricted Stock is not continued, assumed, converted or substituted for immediately following the Change in Control, all of the Restricted Stock shall be
treated as vested immediately prior to the Change in Control. This grant of Restricted Stock shall be considered to be continued, assumed, converted or substituted for: 
  

	 	(A)	if there is no change in the number of outstanding Shares and the Change in Control does not result from the consummation of a merger, consolidation, statutory share
exchange, reorganization or similar form of corporate transaction, there are no changes to the terms and conditions of this grant that materially and adversely affect this grant; or 

 

	 	(B)	if there is a change in the number of outstanding Shares and/or the Change in Control does result from the consummation of a merger, consolidation, statutory share
exchange, reorganization or similar form of corporate transaction: 

  

	 	(1)	the number of shares of Restricted Stock is adjusted (x) if the Shares are exchanged solely for the common stock of the Parent Corporation or, if there is no
Parent Corporation, the Surviving Corporation (as such terms are defined in Appendix A) in a manner which is not materially less favorable than the adjustments made in such transaction to the other outstanding Shares, or (y) otherwise, based on
the ratio on the day immediately prior to the date of the Change in Control of the fair market value of one share of common stock of the Parent Corporation or, if there is no Parent Corporation, the Surviving Corporation, to the Fair Market Value of
one Share, 

  

	 	(2)	if applicable, the shares of Restricted Stock are converted into the common stock of the Parent Corporation or, if there is no Parent Corporation, the Surviving
Corporation (as such terms are defined below) and 

  

	 	(3)	there are no other changes to the terms and conditions of this grant that materially and adversely affect this grant. 

 For purposes of this Agreement: 
 “Change in Control” means the occurrence of any one of the following events: 
 (i) individuals who, on the Grant Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a
director subsequent to the initial public offering whose election or nomination for election was approved by a vote of at least a majority of the Directors then on the Board (either by a specific vote or by approval of the proxy statement of the
Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the
Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be an Incumbent
Director; 
 (ii) any “person” (as such term is defined in the Exchange Act and as used in Sections 13(d)(3) and
14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 35% or more of the combined voting power of the
Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided, however, that the event described in this paragraph (ii) shall not be deemed to be a
Change in Control by virtue of any of the following acquisitions: (A) by the Company or any subsidiary, (B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary, (C) by any
underwriter temporarily holding securities pursuant to an offering of such securities, (D) pursuant to a Non-Qualifying Transaction, as defined in paragraph 
 (iii), or (E) by any person of Voting Securities from the Company, if a majority of the Incumbent Board approves in advance the acquisition of beneficial ownership of 35% or more of Company Voting
Securities by such person; (iii) the consummation of a merger, consolidation, statutory share exchange, reorganization or similar form of corporate transaction involving the Company or any of its subsidiaries that requires the approval of the
Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) more than 40% of the total voting power
of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting
securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is
represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting
Securities among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or
becomes the beneficial owner, directly or indirectly, of 35% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving
Corporation) and (C) at least half of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent
Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be
deemed to be a “Non-Qualifying Transaction”); 

 (iv) the stockholders of the Company approve a plan of complete liquidation or dissolution
of the Company or the consummation of a sale of all or substantially all of the Company’s assets; or 
 (v) the occurrence
of any other event that the Board determines by a duly approved resolution constitutes a Change in Control. 
 Notwithstanding the foregoing, a
Change in Control shall not be deemed to occur solely because any person acquires beneficial ownership of more than 35% of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the
number of Company Voting Securities outstanding; provided, that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding
Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur. 

“Good Cause” means conduct involving one or more of the following: 

(i) the conviction of Participant, or plea of nolo contendere by the Participant to, a felony or misdemeanor involving moral
turpitude; 
 (ii) the indictment of the Participant for a felony or misdemeanor involving moral turpitude under the federal
securities laws; 
 (iii) the willful misconduct or gross negligence by Participant resulting in material harm to the Company;

 (iv) fraud, embezzlement, theft or dishonesty by Participant against the Company or any subsidiary, or willful violation
by Participant of a policy or procedure of the Company, resulting in any case in material harm to the Company; or 

(v) the Participant’s material breach of any term of any agreement with the Company, including, without limitation, any
violation of confidentiality and/or non-competition agreements. 
 “Good Reason” means: 

(i) a reduction by the Company or its successor of more than 10% in Participant’s rate of annual base salary as in effect
immediately prior to such Change in Control; 
 (ii) a reduction by the Company or its successor of more than 10% of the
Participant’s individual annual target or bonus opportunity, except under circumstances where the Company or its successor implement changes to the bonus structure of similarly situated employees, including but not limited to changes to the
bonus structure designed to integrate the Company’s personnel with other personnel of the Surviving Corporation; 

 (iii) a significant and substantial reduction by the Company or its successor of the
Participant’s responsibilities and authority, as compared with the Participant’s responsibilities and authority in effect immediately prior to the Change in Control; or 

(iv) any requirement of the Company that Participant be based anywhere more than fifty (50) miles from Participant’s primary
office location at the time of the Change in Control.Form of Non-Qualified Stock Option Agreement

 Exhibit 10.7 
 EXHIBIT A 
 RED HAT, INC. 

Non-Qualified Stock Option Agreement 
 Terms and Conditions 
 1. Grant Under Red Hat, Inc. 1999 Stock
Option and Incentive Plan. This option is granted pursuant to and is governed by the Company’s 1999 Stock Option and Incentive Plan (the “Plan”) and, unless the context otherwise requires, terms used herein shall have
the same meaning as in the Plan. Determinations made in connection with this option pursuant to the Plan shall be governed by the Plan as it exists on the Grant Date. 
 2. Grant as Non-Qualified Stock Option. This option is a non-qualified stock option and is not intended to qualify as an incentive stock option under Section 422 of the Internal Revenue
Code of 1986, as amended, and the regulations thereunder (the “Code”). 
 3. Vesting of Option if
Business Relationship Continues. All of the option shares initially shall be unvested shares. For so long as the Optionee maintains a continuous service to the Company as an employee, officer, director or consultant (a “Business
Relationship”) the option shares shall become vested according to the schedule set forth below and the Optionee may exercise this option as to any vested shares: 

 

							
	 Vesting Date
	 	  	 	 Number or Vested Shares
	 	 
				
	One year from the Vesting Start Date	 	-	 	25% of the Option Shares	 	
				
	On the first day of each subsequent three month period following one year from the Vesting Start Date	 	-	 	6.25% of the Option Shares	 	

 Notwithstanding the foregoing, the Board may, in its discretion, accelerate the date that any
installment of this option becomes exercisable. The foregoing rights are cumulative and (subject to Sections 4 or 5 hereof if the Optionee ceases to have a Business Relationship with the Company) may be exercised only before the date which is ten
years from the date of this option grant. 
 4. Termination of Business Relationship. 

(a.) Termination Other Than for Cause. If the Optionee ceases to maintain a Business Relationship with the
Company, other than by reason of death or disability as defined in Section 5 or termination for Cause as defined in Section 4(c), no further installments of this option shall become exercisable, and this option shall expire (may no longer
be exercised) after the passage of three months from the termination of the Optionee’s Business Relationship, but in no event later than the scheduled expiration date. For purposes hereof, a Business Relationship shall not be considered as
having terminated during any leave of absence if such leave of absence has been approved in writing by the Company and if such written approval contractually obligates the Company to continue the Business Relationship of the Optionee after the
approved period of absence; in the event of such an approved leave of absence, vesting of this option shall be suspended (and the period of the leave of absence shall be added to all vesting dates) unless otherwise provided in the Company’s
written approval of the leave of absence. This option shall not be affected by any change in the type of Business Relationship the Optionee has within or among the Company and its Subsidiaries so long as the Optionee continuously maintains a
Business Relationship with the Company or any Subsidiary. 

 (b) Termination for Cause. If the Business Relationship of the
Optionee is terminated for Cause (as defined in Section 4 (c)), this option shall expire (that is, may no longer be exercised) upon the Optionee’s receipt of written notice of such termination and shall thereafter not be exercisable to any
extent whatsoever. 
 (c) Definition of Cause. “Cause” shall mean conduct
involving one or more of the following: (i) the substantial and continuing failure of the Optionee, after notice thereof, to render services to the Company in accordance with the terms or requirements of his or her Business Relationship;
(ii) disloyalty, gross negligence, willful misconduct, dishonesty, fraud or breach of fiduciary duty to the Company; (iii) deliberate disregard of the rules or policies of the Company, or breach of an employment or other agreement with the
Company, which results in direct or indirect loss, damage or injury to the Company; (iv) the unauthorized disclosure of any trade secret or confidential information of the Company; or (v) the commission of an act which constitutes unfair
competition with the Company or which induces any customer or supplier to breach a contract with the Company. 
 5. Death:
Disability. 
 (a) Death. If the Optionee dies while maintaining a Business Relationship
with the Company, this option may be exercised, to the extent otherwise exercisable on the date of his or her death, by the Optionee’s estate, personal representative or beneficiary to whom this option has been transferred pursuant to
Section 10, only at any time within 180 days after the date of death, but not later than the scheduled expiration date. 
 (b) Disability. If the Optionee’s Business Relationship with the Company is terminated by reason of his or her disability, this option may be exercised, to the extent otherwise
exercisable on the date of cessation of the Business Relationship, only at any time within 180 days after such cessation of the Business Relationship, but not later than the scheduled expiration date. For purposes hereof,
“disability” means “permanent and total disability” as defined in Section 22(e)(3) of the Code. 
 6. Partial Exercise. This option may be exercised in part at any time and from time to time within the above limits except that this option may not be exercised for a fraction of a share.

 7. Payment of Exercise Price. 

(a) Payment Options. The exercise price shall be paid by one or any combination of the following forms of
payment that are applicable to this option: 
  

	 	(i)	in cash, or by check payable to the order of the Company; or 

  

	 	(ii)	delivery of an irrevocable and unconditional undertaking, satisfactory in form and substance to the Company, by a creditworthy broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or delivery by the Optionee to the Company of a copy of irrevocable and unconditional instructions, satisfactory in form and substance to the Company, to a creditworthy broker to deliver promptly to the
Company cash or a check sufficient to pay the exercise price; or 

  

	 	(iii)	subject to Section 7(b) below, if the Common Stock is then traded on a national securities exchange or on the Nasdaq National Market (or successor trading system),
by delivery of shares of Common Stock having a fair market value equal as of the date of exercise to the option price; or 

 In the case of (iii) above, fair market value as of the date of exercise shall be determined as of the last business day for which such prices or quotes are available prior to the date of exercise
and shall mean 

  
 2 

 
(x) the last reported sale price (on that date) of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a
national securities exchange; or (y) the last reported sale price (on that date) of the Common Stock on the Nasdaq National Market (or successor trading system), if the Common Stock is not then traded on a national securities exchange.

 (b) Limitations on Payment by Delivery of Common Stock. If Section 7(a)(iii) is applicable,
and if the Optionee delivers Common Stock held by the Optionee (“Old Stock”) to the Company in full or partial payment of the exercise price and the Old Stock so delivered is subject to restrictions or limitations imposed by
agreement between the Optionee and the Company, an equivalent number of Option Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the extent that the Optionee paid for the Option Shares by delivery of Old
Stock, in addition to any restrictions or limitations imposed by this Agreement. Notwithstanding the foregoing, the Optionee may not pay any part of the exercise price hereof by transferring Common Stock to the Company unless such Common Stock has
been owned by the Optionee free of any substantial risk of forfeiture for at least six months. 
 8. Securities Laws
Restrictions on Resale. Until registered under the Securities Act of 1933, as amended, or any successor statute (the “Securities Act”), the Option Shares will be of an illiquid nature and will be deemed to be “restricted
securities” for purposes of the Securities Act. Accordingly, such shares must be sold in compliance with the registration requirements of the Securities Act or an exemption therefrom. Unless the Option Shares have been registered under the
Securities Act, each certificate evidencing any of the Option Shares shall bear a legend substantially as follows: 
 “The
shares represented by this certificate are subject to restrictions on transfer and may not be sold, exchanged transferred pledged, hypothecated or other-wise disposed of except in accordance with and subject to all the terms and conditions of a
certain Stock Option Agreement, a copy of which the Company will furnish to the holder of this certificate upon request and without charge.” 
 9. Method of Exercising Option. Subject to the terms and conditions of this Agreement, this option may be exercised by written notice to the Company at its principal executive office, or to
such transfer agent as the Company shall designate Such notice shall state the election to exercise this option and the number of Option Shares for which it is being exercised and shall be signed by the person or persons so exercising this option.
Such notice shall be accompanied by payment of the full purchase price of such shares, and the Company shall deliver a certificate or certificates representing such shares as soon as practicable after the notice shall be received. Such certificate
or certificates shall be registered in the name of the person or persons so exercising this option (or if this option shall be exercised by the Optionee and if the Optionee shall so request in the notice exercising this option, shall be registered
in the name of the Optionee and another person jointly, with right of survivorship). In the event this option shall be exercised, pursuant to Section 5 hereof, by any person or persons other than the Optionee, such notice shall be accompanied
by appropriate proof of the right of such person or persons to exercise this option. 
 10. Option Not
Transferable. This option is not transferable or assignable except by will or by the laws of descent and distribution. During the Optionee’s lifetime only the Optionee can exercise this option. 

11. No Obligation to Exercise Option. The grant and acceptance of this option imposes no obligation on the Optionee to
exercise it. 
 12. No Obligation to Continue Business Relationship. Neither the Plan, this Agreement, nor the
grant of this option imposes any obligation on the Company to have a Business Relationship with the Optionee. 
 13. No
Rights as Stockholder until Exercise. The Optionee shall have no rights as a stockholder with respect to the Option Shares until such time as the Optionee has exercised this option by delivering a notice of exercise and has paid in full the
purchase price for the shares so exercised in accordance with Section 9. Except as is 

  
 3 

 
expressly provided in the Plan with respect to certain changes in the capitalization of the Company, no adjustment shall be made for dividends or similar rights for which the record date is prior
to such date of exercise. 
 14. Capital Changes and Business Successions. The Plan contains provisions covering
the treatment of options in a number of contingencies such as stock split and mergers. Provisions in the Plan for adjustment with respect to stock subject to options and the related provisions with respect to successors to the business of the
Company are hereby made applicable hereunder and are incorporated herein by reference. 
 15. Withholding. If the
Company in its discretion determines that it is obligated by law to withhold from the Employee any tax or any other amount in connection with the exercise of this option, or in connection with the transfer of, or the lapse of restrictions on any
Common Stock or other property acquired pursuant to this option, the Employee hereby agrees that the Company may withhold from the Employee’ s wages or other remuneration the appropriate amount. At the discretion of the Company, the amount
required to be withheld may be withheld in cash from such wages or other remuneration or in kind from the Common Stock or other property otherwise deliverable to the Employee on exercise of this option. The Employee further agrees that, if the
Company does not withhold an amount from the Employee’s wages or other remuneration sufficient to satisfy the withholding obligation of the Company the Employee agrees to indemnify the Company in full for the amount underwithheld and to make
reimbursement on demand in cash for the amount underwithheld within thirty (30) days after the exercise of the option that gives rise to the withholding obligation. 
 16. Lock-up Agreement. The Optionee agrees that in the event that the Company effects an underwritten public offering of Common Stock registered under the Securities Act, the Option Shares
may not be sold, offered for sale or otherwise disposed of directly or indirectly, without the prior written consent of the managing underwriter(s) of the offering, for such period of time after the execution of an underwriting agreement in
connection with such offering that all of the Company’s then directors and executive officers agree to be similarly bound. 

17. Provision of Documentation to Optionee. By signing this Agreement the Optionee acknowledges receipt of a copy of this
Agreement and a copy of the Plan. 
 18. Miscellaneous. 

(a) Notices. All notices hereunder shall be in writing and shall be deemed given when sent by certified or
registered mail postage prepaid, return receipt requested, if to the Optionee, to the address set forth below or at the address shown on the records of the Company, and if to the Company, to the Company’s principal executive offices, attention
of the Corporate Secretary. 
 (b) Entire Agreement; Modification. This Agreement and the Plan
constitutes the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject matter of this Agreement. This
Agreement may be modified, amended or rescinded only by a written agreement executed by both parties. 
 (c)
Fractional Shares. If this option becomes exercisable for a fraction of a share because of the adjustment provisions contained in the Plan, such fraction shall be rounded down to the nearest whole share. 

(d) Severability. The invalidity, illegality or unenforceability of any provision of this Agreement shall in
no way affect the validity, legality or enforceability of any other provision. 
 (e) Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth in Section 10 hereof. 

  
 4 

 (f) Governing Law. This Agreement shall be governed by and
interpreted in accordance with the laws of the Delaware without giving effect to the principles of the conflicts of laws thereof. 

  
 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]