Document:

Exhibit 4.3

 

EXECUTION COPY

 

 

Q2 HOLDINGS, INC. (F/K/A CBG HOLDINGS, INC.)

 

SECOND AMENDED AND RESTATED VOTING AGREEMENT

 

March 1, 2013

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
SHARES
    	
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2.
    	
ELECTION   OF BOARDS OF DIRECTORS
    	
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3.
    	
INCREASE   IN AUTHORIZED CAPITAL STOCK
    	
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4.
    	
DRAG   ALONG RIGHTS
    	
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5.
    	
TERMINATION
    	
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6.
    	
ADDITIONAL   SHARES
    	
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7.
    	
RESTRICTIVE   LEGEND
    	
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8.
    	
MISCELLANEOUS
    	
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SECOND AMENDED AND RESTATED VOTING AGREEMENT

 

This Second Amended and Restated Voting Agreement (this “Agreement”) is made as of March 1, 2013 by and among Q2 Holdings, Inc. (f/k/a CBG Holdings, Inc.), a Delaware corporation (the “Company”), and the persons and entities listed on Exhibit A attached hereto (each an “Investor,” and collectively, the “Investors”) and all holders of Common Stock (as hereinafter defined) of the Company (each a “Common Holder” and together the “Common Holders”) listed on Exhibit B attached hereto, as such Exhibit B may be amended from time to time with no further action on the parties hereto to add subsequent holders of Common Stock of the Company.  The Investors and Common Holders are referred to herein collectively as the “Voting Parties.”

 

RECITALS

 

WHEREAS, the Company and certain of the Investors are parties to the First Amended and Restated Voting Agreement dated as of December 29, 2011 (the “Prior Agreement”);

 

WHEREAS, the Company has sold (i) shares of the Company’s Junior Convertible Preferred Stock, par value $0.0001 per share (the “Junior Preferred Stock”) pursuant to a Subscription Agreement, , (ii) shares of (the Company’s Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”), to certain Investors pursuant to the Series A Stock Purchase Agreement dated as of July 27, 2007 (the “Series A Purchase Agreement”) and (iii) shares of the Company’s Series B Convertible Preferred Stock, par value $0.0001 per share (the “Series B Preferred Stock”), to certain Investors pursuant to the Series B Stock Purchase Agreement dated as of December 29, 2011 (the “Series B Purchase Agreement”), and, in connection with this Agreement, the Company is selling shares of its Series C Convertible Preferred Stock par value $0.0001 per share (the “Series C Preferred Stock” and together with the Series A Preferred Stock and the Series B Preferred Stock, the “Senior Preferred Stock”), to certain Investors pursuant to the Series C Stock Purchase Agreement dated as of the date hereof (as amended or otherwise modified from time to time, the “Series C Purchase Agreement” and together with the Series A Purchase Agreement and Series B Purchase Agreement, the “Purchase Agreements”);

 

WHEREAS, pursuant to Section 8(l) of the Prior Agreement, the Prior Agreement may be amended by the written consent of (i) the Company, (ii) the holders of at least a majority of the Series A Preferred Stock, Series B Preferred Stock and Junior Preferred Stock then outstanding and held by the Investors, voting as a single class on an as converted basis, and (iii) the holders of at least a majority of the Common Stock held by the Common Holders, voting as a separate class;

 

WHEREAS, the undersigned represent (i) the Company, (ii) the holders of at least a majority of the Series A Preferred Stock, Series B Preferred Stock and Junior Preferred Stock then outstanding and held by the Investors, and (iii) the holders of at least a majority of the Common Stock held by the Common Holders; and

 

WHEREAS, as a condition to the Series C Purchase Agreement, the Voting Parties have agreed to enter into this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, and other consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:

 

 

1.                                      Shares.  During the term of this Agreement, the Voting Parties each agree to vote all shares of the Company’s voting securities now or hereafter owned by them, whether beneficially or otherwise, or as to which they have voting power (the “Shares”) in accordance with the provisions of this Agreement.  The holders of Senior Preferred Stock and Junior Preferred Stock will vote together with the holders of Common Stock and not as a separate class except as specifically provided herein, in the Charter (as such may be amended from time to time) or any of the agreements entered into in connection with the sale of the Senior Preferred Stock or as otherwise required by law.  Each share of Senior Preferred Stock and Junior Preferred Stock shall have a number of votes equal to the number of Common Stock then issuable upon conversion of such Senior Preferred Stock or Junior Preferred Stock, as applicable.

 

2.                                      Election of Boards of Directors.

 

(a)                                 Voting.  During the term of this Agreement, each Voting Party agrees to vote or caused to be voted all Shares in such manner as may be necessary to elect (and maintain in office) as members of the Company’s Board of Directors (the “Board”) the following individuals:

 

(i)                                     Three Senior Designees (as defined below);

 

(ii)                                  Three Common Designees (as defined below); and

 

(iii)                               One Mutual Designee (as defined below).

 

(b)                                 Designation of Directors.  The designees to the Board described above (each a “Designee”) shall be selected as follows:

 

(i)                                     Each “Senior Designee” shall be chosen by the holders of at least 75% of the sum of shares of (i) Senior Preferred Stock and (ii) shares of Common Stock owned by holders of Series C Preferred Stock (the “Selected Common Stock”), voting together as a single class on an as converted basis; provided, however, that (A) one Senior Designee shall be an outside independent director with expertise in the Company’s industry, (B) for so long as any of Adams Street Partners LLC, Adams Street Partners 2006 Direct Fund, L.P., Adams Street Partners 2007 Direct Fund, L.P., Adams Street Partners 2008 Direct Fund, L.P., Adams Street Partners 2009 Direct Fund, L.P., Adams Street Partners 2010 Direct Fund, L.P., and/or Adams Street Partners 2011 Direct Fund L.P. or any of their affiliated funds own any shares of the Senior Preferred Stock, one Senior Designee shall be designated by Adams Street Partners, LLC on behalf of such funds (together, “ASP”) (the “ASP Designee”), appointed solely in the discretion of ASP and (C) for so long as any of Battery Ventures IX, L.P., Battery Investment Partners IX, LLC or any of their affiliated funds own any shares of the Senior Preferred Stock, one Senior Designee shall be designated by Battery Ventures IX, LLC on behalf of such funds (together, “Battery”) (the “Battery Designee”), appointed solely in the discretion of Battery.

 

(ii)                                  The “Common Designees” shall be approved by the holders of a majority of the Common Stock of the Company, voting as a separate class; provided, however, that one of the Common Designees shall be the CEO Director and one of the Common Designees shall be an unaffiliated independent outside director.  The “CEO Director” shall be the Company’s Chief Executive Officer, provided that if for any reason the CEO Director shall cease to serve as the Chief Executive Officer of the Company, the Voting Parties shall promptly vote their respective Common Stock (i) to remove the former Chief Executive Officer from the Board if such person has not resigned as a member of the Company’s Board and (ii) to elect such person’s replacement as Chief Executive Officer of the Company as the new CEO Director.

 

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(iii)                               The “Mutual Designee” shall be approved by the holders of a majority of the outstanding shares of Common Stock and Senior Preferred Stock, voting together as a single class (on an as converted to common stock basis).

 

(c)                                  Current Designees.  For the purpose of this Agreement, the directors of the Company immediately following the Financing pursuant to the Series C Purchase Agreement shall be deemed to include the following Designees:

 

(i)                                     the Senior Designees shall initially be Jim Schaper, Jeffrey Diehl (serving as the ASP Designee) and Michael M. Brown (serving as the Battery Designee);

 

(ii)                                  the Common Designees shall initially be Jim Offerdahl, Charles Doyle, and R.H. “Hank” Seale, III (serving as the CEO Director); and

 

(iii)                               the Mutual Designee shall initially be Mike Maples, Sr.

 

(d)                                 Changes in Designees.  From time to time during the term of this Agreement, Investors who hold sufficient Shares to select a Designee pursuant to this Agreement may, in their sole discretion:

 

(i)                                     notify the Company in writing of an intention to remove from the Company’s Board any incumbent Designee who occupies a Board seat for which such Voting Parties are entitled to designate the Designee; or

 

(ii)                                  notify the Company in writing of an intention to select a new Designee for election to a Board seat for which such Voting Parties are entitled to designate the Designee (whether to replace a prior Designee or to fill a vacancy in such Board seat).

 

In the event of such an initiation of a removal or selection of a Designee under this section, the Company shall take commercially reasonable actions as are necessary to facilitate such removals or elections, including, without limitation, soliciting the votes of the appropriate stockholders, and the Voting Parties shall vote their Shares to cause: (a) the removal from the Company’s Board of the Designee or Designees so designated for removal, provided that no director elected pursuant to Sections 2(b)(i)(B) or 2(b)(i)(C) of this Agreement may be removed from office unless such removal is directed or approved by ASP or Battery, respectively; and (b) the election to the Company’s Board of any new Designee or Designees so designated, provided that any director elected pursuant to Sections 2(b)(i)(B) or 2(b)(i)(C) of this Agreement shall be designated by ASP or Battery, respectively.  To the extent permissible under the Delaware General Corporation Law, the Charter and the Company’s Bylaws, any vacancies created by the resignation, removal or death of a director elected pursuant to Sections 2(b)(i)(B) or 2(b)(i)(C) of this Agreement shall be filled pursuant to the provisions of such sections.

 

(e)                                  Size of Board.  During the term of this Agreement, and except pursuant to the Charter, each Voting Party agrees to vote all Shares to maintain the authorized number of members of the Board of the Company at seven (7) directors.

 

(f)                                   Committees.  So long as ASP owns any shares of Senior Preferred Stock, each authorized committee of the Board shall include the ASP Designee and so long as Battery owns any shares of Senior Preferred Stock, each authorized committee of the Board shall include the Battery Designee.

 

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(g)                                  Compensation. The Company shall promptly reimburse each member of the Board (or any committee thereof) for all reasonable out-of-pocket expenses and costs incurred by such member in connection with attending each regular or special meeting of the Board (or any committee thereof).

 

3.                                      Increase in Authorized Capital Stock; Adjustment.  Each Voting Party also agrees to vote all of his, her or its Shares from time to time and at all times, in whatever manner shall be necessary (i) to authorize an increase in the authorized capital stock of the Company so that there will be sufficient shares of Common Stock available for conversion of all of the then outstanding shares of Senior Preferred Stock, including without limitation at any time that an adjustment to the Conversion Price (as defined in the Company’s Third Amended and Restated Certificate of Incorporation as such may be amended from time to time (the “Charter”)) of the Senior Preferred Stock is made pursuant to the Charter and (ii) if and to the extent an Indemnified Person (as defined in the Series C Purchase Agreement) shall become entitled to and elects an adjustment of the Conversion Price of the Series C Preferred Stock pursuant to Section 7.10(e) of the Series C Purchase Agreement, to amend the Charter to provide for such adjustment in form and substance reasonably acceptable to such Indemnified Person.

 

4.                                      Drag Along Rights.

 

(a)                                 In the event that (a) the Board, (b) the holders of at least a majority of the outstanding shares of Common Stock (voting as a separate class), (c) the holders of at least a majority of the outstanding shares of Senior Preferred Stock (voting together as single class on an as-converted basis) and (d) in the event of a Deemed Liquidation Event (as defined in the Charter) that would result in proceeds per share of Series C Preferred Stock that are less than 1.75 times the Series C Issue Price (as defined in the Charter), a majority of the outstanding shares of Series C Preferred Stock (voting as a separate class), approve a Deemed Liquidation Event, then each Investor hereby agrees with respect to all securities of the Company which it own(s) or otherwise exercises voting or dispositive authority:

 

(i)                                     to vote such Voting Parties’ shares in favor thereof, and otherwise consent and raise no objection to such transaction, including, executing a merger or acquisition agreement or similar arrangement, and waive any dissenters’ rights, appraisal rights or similar rights that such Investor may have in connection therewith; and/or

 

(ii)                                  to sell such Voting Parties’ shares, and take all necessary and desirable actions as directed by the Board in connection with the consummation of such transaction, including, to the extent applicable, executing a purchase agreement (including agreeing to indemnification provisions therein) and selling, exchanging or otherwise transferring all of such Investor’s shares of the Company’s capital stock (including securities convertible into or exercisable for Common Stock).

 

5.                                      Termination.  This Agreement shall terminate on the earlier of (a) the consummation by the Company of a bona fide, firm commitment underwritten public offering pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, covering the offer and sale of the Company’s Common Stock at a public offering; (b) (i) the written agreement of the Company, (ii) the holders of a majority of the shares of Common Stock then outstanding (voting as a separate class) and (iii) the holders of at least 75% of the sum of (A) the shares of Senior Preferred Stock and (B) Selected Common Stock, voting together as a single class on an as-converted basis; (c) the acquisition of the Company by another person or entity by means of any transaction or series of related transactions (including, without limitation, any stock sale, reorganization, merger, or consolidation), unless the Company’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the

 

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Corporation’s acquisition or sale or otherwise) hold at least 51% of the voting power of the surviving or acquiring entity; or (d) the effective time of any liquidation, winding up, or dissolution of the Company.

 

6.                                      Additional Shares.  In the event that subsequent to the date of this Agreement any shares or other securities (other than pursuant to a Sale of the Company) are issued on, or in exchange for, any of the Shares by reason of any stock dividend, stock split, consolidation of shares, reclassification or consolidation involving the Company, such shares or securities shall be deemed to be Shares for purposes of this Agreement.

 

7.                                      Restrictive Legend.  Each certificate representing any of the Shares subject to this Agreement shall be marked by the Company with a legend reading substantially as follows:

 

THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT ENTERED INTO BY THE HOLDER OF THESE SHARES AND THE COMPANY.  A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.  SUCH VOTING AGREEMENT IS BINDING ON CERTAIN TRANSFEREES OF THESE SHARES.

 

8.                                      Miscellaneous.

 

(a)                                 Certain Definitions.  Shares “held” by a Voting Party shall mean any Shares directly or indirectly owned (of record or beneficially) by such Voting Party or as to which such Voting Party has voting power.  “Vote” shall include any exercise of voting rights whether at an annual or special meeting or by written consent or in any other manner permitted by applicable law.

 

(b)                                 Notices.  All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand or by messenger addressed:

 

(i)                                     if to a Voting Party, at such Voting Party’s address, facsimile number or electronic mail address as shown in the Company’s records, as may be updated in accordance with the provisions hereof, or, until any such Voting Party so furnishes an address, facsimile number or electronic mail address to the Company, then to and at the address, facsimile number or electronic mail address of the last holder of the relevant Shares for which the Company has contact information in its records, and if to an Investor, with a copy to (i) McDermott Will & Emery, LLP, 227 West Monroe Street, Chicago, Illinois 60606, Attn:  Ryan D. Harris and (ii) Nixon Peabody, LLP, 100 Summer Street, Boston, MA 02110, Attn: Christopher P. Keefe, or

 

(ii)                                  if to the Company, one copy should be sent to 9430 Research Blvd., Suite 120, Austin, TX 78759, or at such other address as the Company shall have furnished to the Voting Party’s, with a copy to John J. Gilluly III, P.C., DLA Piper LLP (US), 401 Congress Avenue, Suite 2500,  Austin, Texas 78701.

 

With respect to any notice given by the Company under any provision of the Delaware General Corporation Law or the Company’s charter or bylaws, each party hereto agrees that such notice may be given by facsimile or by electronic mail.

 

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given when delivered if delivered personally, or, if sent by registered or certified mail, return receipt requested, postage prepaid, at the earlier of its receipt or five (5) days after the same

 

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has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid or, if sent by facsimile, upon confirmation of facsimile transfer or, if sent by electronic mail, upon confirmation of delivery when directed to the electronic mail address set forth on the Schedule of Investors, attached hereto as Exhibit A. In the event of any conflict between the Company’s books and records and this Agreement or any notice delivered hereunder, the Company’s books and records will control absent fraud or error.

 

(c)                                  Successors and Assigns.  The provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. The Company shall not permit the transfer of any Shares on its books or issue a new certificate representing any Shares unless and until the person to whom such security is to be transferred shall have executed an Adoption Agreement substantially in the form attached as Exhibit C, pursuant to which such person becomes a party to this Agreement and agrees to be bound by all the provisions hereof as if such person was a Voting Party hereunder.

 

(d)                                 Governing Law.  This Agreement shall be governed in all respects by the internal laws of the State of Delaware as applied to agreements entered into among Delaware residents to be performed entirely within Delaware, without regard to principles of conflicts of law.

 

(e)                                  Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and exhibits shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

 

(f)                                   Further Assurances.  Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement.

 

(g)                                  Entire Agreement.  This Agreement, the Charter, the Purchase Agreements and the other Transaction Agreements (as defined in the Series C Purchase Agreement) and the exhibits hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof. No party hereto shall be liable or bound to any other party hereto in any manner with regard to the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein or in the Charter, the Purchase Agreements, or other the Transaction Agreements.

 

(h)                                 Covenants of the Company. The Company agrees to use commercially reasonable efforts to ensure that the rights granted under this Agreement are effective and that the Voting Parties enjoy the benefits of this Agreement.  Such actions include, without limitation, the use of the Company’s commercially reasonable efforts to cause the nomination and election of the Directors as provided above.  The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be performed hereunder by the Company, but will at all times in good faith assist in the carrying out of the provisions of this Agreement and in the taking of all such actions as may be necessary or appropriate in order to protect the rights of the Voting Parties against impairment.

 

(i)                                     Manner of Voting; Grant of Proxy.  The voting of Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any other manner permitted by applicable law.  Each party hereby grants to the Secretary of the Company (other than with respect to Adams Street’s right to designate or remove directors as set forth in Sections 2(b)(i) or 2(d)), in the event

 

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that such party or parties fail to vote their Shares as required by this Agreement, a proxy coupled with an interest in all Shares beneficially owned by such party, which proxy is irrevocable until this Agreement terminates pursuant to its terms or is otherwise amended to remove such grant of proxy in accordance with this Agreement.

 

(j)                                    Not a Voting Trust.  This Agreement is not a voting trust governed by Section 218 of the Delaware General Corporation Law and should not be interpreted as such.

 

(k)                                 Specific Performance.  It is agreed and understood that monetary damages would not adequately compensate an injured party for the breach of this Agreement by any party, that this Agreement shall be specifically enforceable, and that any breach or threatened breach of this Agreement shall be the proper subject of a temporary or permanent injunction or restraining order. Further, each party hereto waives any claim or defense that there is an adequate remedy at law for such breach or threatened breach.

 

(l)                                     Amendment.  This Agreement may be amended or modified and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written consent executed by the Company, the holders of at least 75% of the sum of shares of (a) Senior Preferred Stock and (b) Selected Common Stock, voting together as a single class on an as converted basis, and the holders of at least a majority of the Junior Preferred Stock and Common Stock held by the Common Holders, voting together as a single class on an as converted basis.  Any amendment or waiver so effected shall be binding upon the Company and the Voting Parties and all of their respective successors and permitted assigns whether or not such a party, assignee or other stockholder entered into or approved such amendment or waiver.  Notwithstanding the foregoing, (x) this Agreement may not be amended or terminated and the observance of any term of this Agreement may not be waived with respect to any Investor without the written consent of such Investor to the extent such amendment, termination or waiver adversely affects such Investor in a manner different than other Investors, (y) the consent of a Voting Party shall not be required for any amendment or waiver if such amendment or waiver does not apply to such Voting Party and (z) Sections 2(b)(i)(B) and 2(b)(i)(C) shall not be amended without the written consent of ASP and Battery, respectively.  No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, construed as, a further or continuing waiver of any such term, condition or provision.  Notwithstanding the foregoing, Exhibit A and Exhibit B hereto may be amended from time to time with no further action on the part of the parties hereto to add subsequent holders of Common Stock and Preferred Stock (each a “New Party”), provided that such New Party shall have executed and delivered an Adoption Agreement substantially in the form attached hereto as Exhibit C.  Upon the execution and delivery of an Adoption Agreement by a New Party reasonably acceptable to the Company, such New Party shall be deemed to be a party hereto as if such New Party’s signature appeared on the signature pages hereto.  By their execution hereof or any Adoption Agreement, each of the parties hereto appoints the Company as its attorney-in-fact for the purpose of executing any Adoption Agreement which may be required to be delivered hereunder.

 

(m)                             No Waiver.  The failure or delay by a party to enforce any provision of this Agreement will not in any way be construed as a waiver of any such provision or prevent that party from thereafter enforcing any other provision of this Agreement. The rights granted both parties hereunder are cumulative and will not constitute a waiver of either party’s right to assert any other legal remedy available to it.

 

(n)                                 Jurisdiction and Venue.  Any action, suit or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall only be brought in any federal court or state court located in the

 

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State of Delaware, and each party consents to the exclusive jurisdiction and venue of such courts (and of the appropriate appellate courts therefrom) in any such action, suit or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such, action, suit or proceeding in any such court or that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.  Process in any such action, suit or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.

 

(o)           Attorney’s Fees.  In the event that any suit or action is instituted to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

 

(p)           Severability.  If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement, and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

 

(q)           Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Electronic and facsimile copies of signed signature pages will be deemed binding originals.

 

(r)            Adoption Agreement.  Each transferee or assignee of any Shares subject to this Agreement shall continue to be subject to the terms hereof, and, as a condition precedent to the Company’s recognizing such transfer, each transferee or assignee shall agree in writing to be subject to each of the terms of this Agreement by executing and delivering an Adoption Agreement substantially in the form attached hereto as Exhibit C.  Upon the execution and delivery of an Adoption Agreement by any transferee, such transferee shall be deemed to be a party hereto as if such transferee were the transferor and such transferee’s signature appeared on the signature pages of this Agreement and shall be deemed to be an Investor or Common Holder.  The Company shall not permit the transfer of the Shares subject to this Agreement on its books or issue a new certificate representing any such Shares unless and until such transferee shall have complied with the terms of this Section 7(r).  Each certificate representing the Shares subject to this Agreement if issued on or after the date of this Agreement shall be endorsed by the Company with the legend set forth in Section 7.

 

(s)            Consent of Spouse.  If any individual Voting Party is married on the date of this Agreement, such Voting Party’s spouse shall execute and deliver to the Company a consent of spouse in the form of Exhibit D hereto (“Consent of Spouse”), effective on the date hereof.  Notwithstanding the execution and delivery thereof, such consent shall not be deemed to confer or convey to the spouse any rights in such Voting Party s Shares that do not otherwise exist by operation of law or the agreement of the parties.  If any individual Voting Party should marry or remarry subsequent to the date of this Agreement, such Voting Party shall within thirty (30) days thereafter obtain his/her new spouse’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by causing such spouse to execute and deliver a Consent of Spouse acknowledging the restrictions and obligations contained in this Agreement and agreeing and consenting to the same.

 

Signature Pages Follow.

 

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IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
Q2 HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark Johnson
    
	
 
    	
 
    	
Mark   Johnson
    
	
 
    	
 
    	
Chief   Financial Officer
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
ADAMS STREET 2006 DIRECT FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
ASP 2006 DIRECT MANAGEMENT, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ADAMS STREET PARTNERS, LLC,
    
	
 
    	
 
    	
 
    	
Its managing member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey T. Diehl
    
	
 
    	
Name:
    	
Jeffrey T. Diehl
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ADAMS STREET 2007 DIRECT FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
ASP 2007 DIRECT MANAGEMENT, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ADAMS STREET PARTNERS, LLC,
    
	
 
    	
 
    	
 
    	
Its managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey T. Diehl
    
	
 
    	
Name:
    	
Jeffrey T. Diehl
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ADAMS STREET 2008 DIRECT FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
ASP 2008 DIRECT MANAGEMENT, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ADAMS STREET PARTNERS, LLC,
    
	
 
    	
 
    	
 
    	
Its managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey T. Diehl
    
	
 
    	
Name:
    	
Jeffrey T. Diehl
    
	
 
    	
Title:
    	
Partner
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
ADAMS STREET 2009 DIRECT FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
ASP 2009 DIRECT MANAGEMENT, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ADAMS STREET PARTNERS, LLC,
    
	
 
    	
 
    	
 
    	
Its managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey T. Diehl
    
	
 
    	
Name:
    	
Jeffrey T. Diehl
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ADAMS STREET 2010 DIRECT FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
ASP 2010 DIRECT MANAGEMENT, LLC,
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ADAMS STREET PARTNERS, LLC,
    
	
 
    	
 
    	
 
    	
Its managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey T. Diehl
    
	
 
    	
Name:
    	
Jeffrey T. Diehl
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ADAMS STREET 2011 DIRECT FUND LP
    
	
 
    	
 
    
	
 
    	
By:
    	
ASP 2011 DIRECT MANAGEMENT LP
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
ASP 2011 DIRECT MANAGEMENT LLC
    
	
 
    	
 
    	
Its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ADAMS STREET PARTNERS, LLC,
    
	
 
    	
 
    	
 
    	
Its managing member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeffrey T. Diehl
    
	
 
    	
Name:
    	
Jeffrey T. Diehl
    
	
 
    	
Title:
    	
Partner
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
BATTERY VENTURES IX, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
BATTERY PARTNERS IX, LLC
    
	
 
    	
 
    	
General Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Brown
    
	
 
    	
Name:
    	
Michael Brown
    
	
 
    	
Title:
    	
Member Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BATTERY INVESTMENT PARTNERS IX, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
BATTERY PARTNERS IX, LLC
    
	
 
    	
 
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Brown
    
	
 
    	
Name:
    	
Michael Brown
    
	
 
    	
Title:
    	
Member Manager
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
C&B CAPITAL II, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve B. Tye
    
	
 
    	
Name:
    	
Steve B. Tye
    
	
 
    	
Title:
    	
Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
C&B CAPITAL II (PF), L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve B. Tye
    
	
 
    	
Name:
    	
Steve B. Tye
    
	
 
    	
Title:
    	
Member
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
/s/ David H. Johnston
    
	
 
    	
David H. Johnston
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JOHNSTON 2007 EXEMPT TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David H. Johnston
    
	
 
    	
Name:
    	
David H. Johnston
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MOJO GIRLS 2007 EXEMPT TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David H. Johnston
    
	
 
    	
Name:
    	
David H. Johnston
    
	
 
    	
Title:
    	
Trustee
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
TEXAS INDEPENDENT BANCSHARES, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles T. Doyle
    
	
 
    	
Name:
    	
Charles T. Doyle
    
	
 
    	
Title:
    	
Chairman of the Board
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ David Nelson
    
	
 
    	
David Nelson
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Matt Flake
    
	
 
    	
Matt Flake
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Jim Offerdahl
    
	
 
    	
Jim Offerdahl
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Mark Maples
    
	
 
    	
Mark Maples, Sr.
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amended and Restated Voting Agreement as of the date first above written.

 

	
 
    	
COMMON HOLDER:
    
	
 
    	
 
    
	
 
    	
RHS Investments-I, L.P., by and through Seale, Inc. ,   a Texas corporation, its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ R.H. Seale
    
	
 
    	
Name:
    	
R.H. “Hank” Seale, III
    
	
 
    	
Title:
    	
President
    

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENT

 

 

SECOND AMENDED AND RESTATED VOTING AGREEMENT

SIGNATURE PAGE

 

If the Investor is an INDIVIDUAL, and if purchased as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY PROPERTY:

 

	
 
    	
 
    	
 
    	
 
    
	
Print   Name
    	
 
    	
 
    	
Social   Security Number
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Phone:
    	
 
    	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    	
Fax:
    	
 
    

 

OR:

 

If the Investor is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY COMPANY or TRUST:

 

	
 
    	
 
    	
 
    	
 
    
	
Name of   Entity
    	
 
    	
 
    	
Employer   Identification Number
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date
    	
 
    	
 
    	
State   of Organization
    
	
 
    	
 
    	
 
    
	
Signed   By:
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Phone:
    	
 
    	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    	
Fax:
    	
 
    
							

 

Q2 HOLDINGS, INC.

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED

VOTING AGREEMENTExhibit 10.2.1

 

Q2 HOLDINGS, INC.

2007 STOCK PLAN

 

1.                                      ESTABLISHMENT, PURPOSE AND TERM OF PLAN.

 

1.1                               Establishment.  Q2 Holdings, Inc. 2007 Stock Plan (the “Plan”) is hereby established effective as of July 27, 2007.

 

1.2                               Purpose.  The purpose of the Plan is to advance the interests of the Participating Company Group and its shareholders by providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating such persons to contribute to the growth and profitability of the Participating Company Group.

 

1.3                               Term of Plan.  The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the shares of Stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms of the Plan and the agreements evidencing Awards granted under the Plan have lapsed.  However, all Awards shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the date the Plan is duly approved by the shareholders of the Company.  The Company intends that the Plan comply with Section 409A of the Code (including any amendments or replacements of such section), and the Plan shall be so construed.

 

2.                                      DEFINITIONS AND CONSTRUCTION.

 

2.1                               Definitions.  Whenever used herein, the following terms shall have their respective meanings set forth below:

 

(a)                                 “Affiliate” means (i) an entity, other than a Parent Corporation, that directly, or indirectly through one or more intermediary entities, controls the Company or (ii) an entity, other than a Subsidiary Corporation, that is controlled by the Company directly or indirectly through one or more intermediary entities.  For this purpose, the term “control” (including the term “controlled by”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the relevant entity, whether through the ownership of voting securities, by contract or otherwise; or shall have such other meaning assigned such term for the purposes of registration on Form S-8 under the Securities Act.

 

(b)                                 “Award” means an Option or Stock Purchase Right granted under the Plan.

 

(c)                                  “Board” means the Board of Directors of the Company.  If one or more Committees have been appointed by the Board to administer the Plan, “Board” also means such Committee(s).

 

(d)                                 “Cause” means, unless such term or an equivalent term is otherwise defined with respect to an Award by the Participant’s Option Agreement, Stock Purchase Agreement or written contract of employment or service, any of the following: (i) the Participant’s theft, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, or falsification of any Participating Company documents or records; (ii) the Participant’s material failure to abide by a Participating Company’s code of conduct or other policies (including, without limitation, policies relating to

 

1

 

confidentiality and reasonable workplace conduct); (iii) the Participant’s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of a Participating Company (including, without limitation, the Participant’s improper use or disclosure of a Participating Company’s confidential or proprietary information); (iv) any intentional act by the Participant which has a material detrimental effect on a Participating Company’s reputation or business; (v) the Participant’s repeated failure or inability to perform any reasonable assigned duties after written notice from a Participating Company of, and a reasonable opportunity to cure, such failure or inability; (vi) any material breach by the Participant of any employment or service agreement between the Participant and a Participating Company, which breach is not cured pursuant to the terms of such agreement; or (vii) the Participant’s conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs the Participant’s ability to perform his or her duties with a Participating Company.

 

(e)                                  “Change in Control” means, unless such term or an equivalent term is otherwise defined with respect to an Award by the Participant’s Option Agreement, Stock Purchase Agreement or written contract of employment or service, the occurrence of any of the following:

 

(i)                                     an Ownership Change Event or a series of related Ownership Change Events (collectively, a “Transaction”) in which the shareholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in the case of an Ownership Change Event described in Section 2.1(u)(iii), the entity to which the assets of the Company were transferred (the “Transferee”), as the case may be; or

 

(ii)                                  the liquidation or dissolution of the Company.

 

For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities.  The Board shall have the right to determine whether multiple sales or exchanges of the voting securities of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive.

 

(f)                                   “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder.

 

(g)                                  “Committee” means the compensation committee or other committee of the Board duly appointed to administer the Plan and having such powers as shall be specified by the Board.  Unless the powers of the Committee have been specifically limited, the Committee shall have all of the powers of the Board granted herein, including, without limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law.

 

(h)                                 “Company” means Q2 Holdings, Inc., a Delaware corporation, or any successor corporation thereto.

 

(i)                                     “Consultant” means a person engaged to provide consulting or advisory services (other than as an Employee or a Director) to a Participating Company, provided that the identity of such person, the nature of such services or the entity to which such services are provided would not preclude the Company from offering or selling securities to such person pursuant to the Plan in reliance

 

2

 

on either the exemption from registration provided by Rule 701 under the Securities Act or, if the Company is required to file reports pursuant to Section 13 or 15(d) of the Exchange Act, registration on a Form S-8 Registration Statement under the Securities Act.

 

(j)                                    “Director” means a member of the Board or of the board of directors of any other Participating Company.

 

(k)                                 “Disability” means the inability of the Participant, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of the Participant’s position with the Participating Company Group because of the sickness or injury of the Participant.

 

(l)                                     “Employee” means any person treated as an employee (including an Officer or a Director who is also treated as an employee) in the records of a Participating Company and, with respect to any Incentive Stock Option granted to such person, who is an employee for purposes of Section 422 of the Code; provided, however, that neither service as a Director nor payment of a director’s fee shall be sufficient to constitute employment for purposes of the Plan.  The Company shall determine in good faith and in the exercise of its discretion whether an individual has become or has ceased to be an Employee and the effective date of such individual’s employment or termination of employment, as the case may be.  For purposes of an individual’s rights, if any, under the terms of the Plan as of the time of the Company’s determination of whether or not the individual is an Employee, all such determinations by the Company shall be final, binding and conclusive as to such rights, if any, notwithstanding that the Company or any court of law or governmental agency subsequently makes a contrary determination as to such individual’s status as an Employee.

 

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

 

(n)                                 “Fair Market Value” means, as of any date, the value of a share of Stock or other property as determined by the Board, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following:

 

(i)                                     If, on such date, the Stock is listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be the closing price of a share of Stock (or the mean of the closing bid and asked prices of a share of Stock if the Stock is so quoted instead) as quoted on the Nasdaq National Market, The Nasdaq SmallCap Market or such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in The Wall Street Journal or such other source as the Company deems reliable.  If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Board, in its discretion.

 

(ii)                                  If, on such date, the Stock is not listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be as determined by the Board in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse, and subject to compliance with Section 409A of the Code. .

 

(o)                                 “Incentive Stock Option” means an Option intended to be (as set forth in the Option Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the Code.

 

3

 

(p)                                 “Insider” means an Officer, a Director of the Company or other person whose transactions in Stock are subject to Section 16 of the Exchange Act.

 

(q)                                 “Nonstatutory Stock Option” means an Option not intended to be (as set forth in the Option Agreement) or which does not qualify as an Incentive Stock Option.

 

(r)                                    “Officer” means any person designated by the Board as an officer of the Company.

 

(s)                                   “Option” means a right granted under Section 6 to purchase Stock pursuant to the terms and conditions of the Plan.  An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option.

 

(t)                                    “Option Agreement” means a written agreement between the Company and a Participant setting forth the terms, conditions and restrictions of the Option granted to the Participant and any shares acquired upon the exercise thereof.  An Option Agreement may consist of a form of “Notice of Grant of Stock Option” and a form of “Stock Option Agreement” incorporated therein by reference, or such other form or forms as the Board may approve from time to time.

 

(u)                                 “Ownership Change Event” means the occurrence of any of the following with respect to the Company:  (i) the direct or indirect sale or exchange in a single or series of related transactions by the shareholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company.

 

(v)                                 “Parent Corporation” means any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code.

 

(w)                               “Participant” means any eligible person who has been granted one or more Awards.

 

(x)                                 “Participating Company” means the Company or any Parent Corporation, Subsidiary Corporation or Affiliate.

 

(y)                                 “Participating Company Group” means, at any point in time, all entities collectively which are then Participating Companies.

 

(z)                                  “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or regulation.

 

(aa)                          “Securities Act” means the Securities Act of 1933, as amended.

 

(bb)                          “Service” means a Participant’s employment or service with the Participating Company Group, whether in the capacity of an Employee, a Director or a Consultant.  A Participant’s Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders Service to the Participating Company Group or a change in the Participating Company for which the Participant renders such Service, provided that there is no interruption or termination of the Participant’s Service.  Furthermore, a Participant’s Service shall not be deemed to have terminated if the Participant takes any military leave, sick leave, or other bona fide leave of absence approved by the Company; provided, however, that if any such leave exceeds ninety (90) days, on the one hundred eighty-first (181st) day following the commencement of such leave any Incentive

 

4

 

Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and instead shall be treated thereafter as a Nonstatutory Stock Option unless the Participant’s right to return to Service is guaranteed by statute or contract.  Notwithstanding the foregoing, unless otherwise designated by the Company or required by law, a leave of absence shall not be treated as Service for purposes of determining vesting under the Participant’s Option Agreement or Stock Purchase Agreement.  Except as otherwise provided by the Board, in its discretion, the Participant’s Service shall be deemed to have terminated either upon an actual termination of Service or upon the corporation for which the Participant performs Service ceasing to be a Participating Company.  Subject to the foregoing, the Company, in its discretion, shall determine whether the Participant’s Service has terminated and the effective date of and reason for such termination.

 

(cc)                            “Stock” means the common stock of the Company, as adjusted from time to time in accordance with Section 4.2.

 

(dd)                          “Stock Purchase Agreement” means a written agreement between the Company and a Participant setting forth the terms, conditions and restrictions of the Stock Purchase Right granted to the Participant and any shares acquired upon the exercise thereof.  A Stock Purchase Agreement may consist of a form of “Notice of Grant of Stock Purchase Right” and a form of “Stock Purchase Agreement” incorporated therein by reference, or such other form or forms as the Board may approve from time to time.

 

(ee)                            “Stock Purchase Right” means a right granted under Section 7 to purchase Stock pursuant to the terms and conditions of the Plan.

 

(ff)                              “Subsidiary Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code.

 

(gg)                            “Ten Percent Shareholder” means a person who, at the time an Award is granted to such person, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating Company (other than an Affiliate) within the meaning of Section 422(b)(6) of the Code.

 

2.2                               Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

 

3.                                      ADMINISTRATION.

 

3.1                               Administration by the Board.  The Plan shall be administered by the Board.  All questions of interpretation of the Plan or of any Award shall be determined by the Board, and such determinations shall be final and binding upon all persons having an interest in the Plan or such Award.

 

3.2                               Authority of Officers.  Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, determination or election.

 

3.3                               Powers of the Board.  In addition to any other powers set forth in the Plan and subject to the provisions of the Plan, the Board shall have the full and final power and authority, in its discretion:

 

5

 

(a)                                 to determine the persons to whom, and the time or times at which, Awards shall be granted and the number of shares of Stock to be subject to each Award;

 

(b)                                 to designate Options as Incentive Stock Options or Nonstatutory Stock Options;

 

(c)                                  to determine the Fair Market Value of shares of Stock or other property;

 

(d)                                 to determine the terms, conditions and restrictions applicable to each Award (which need not be identical) and any shares acquired upon the exercise thereof, including, without limitation, (i) the exercise price of the Award, (ii) the method of payment for shares purchased upon the exercise of the Award, (iii) the method for satisfaction of any tax withholding obligation arising in connection with the Award or such shares, including by the withholding or delivery of shares of stock, (iv) the timing, terms and conditions of the exercisability of the Award or the vesting of any shares acquired upon the exercise thereof, (v) the time of the expiration of the Award, (vi) the effect of the Participant’s termination of Service on any of the foregoing, and (vii) all other terms, conditions and restrictions applicable to the Award or such shares not inconsistent with the terms of the Plan;

 

(e)                                  to approve one or more forms of Option Agreement and Stock Purchase Agreement;

 

(f)                                   to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any shares acquired upon the exercise thereof;

 

(g)                                  to accelerate, continue, extend or defer the exercisability of any Award or the vesting of any shares acquired upon the exercise thereof, including with respect to the period following a Participant’s termination of Service;

 

(h)                                 to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt supplements to, or alternative versions of, the Plan, including, without limitation, as the Board deems necessary or desirable to comply with the laws of, or to accommodate the tax policy or custom of, foreign jurisdictions whose citizens may be granted Awards; and

 

(i)                                     to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Option Agreement or Stock Purchase Agreement and to make all other determinations and take such other actions with respect to the Plan or any Award as the Board may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law.

 

3.4                               Administration with Respect to Insiders.  With respect to participation by Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with the requirements, if any, of Rule 16b-3.

 

3.5                               Indemnification.  In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of the Participating Company Group, members of the Board and any officers or employees of the Participating Company Group to whom authority to act for the Board or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement

 

6

 

is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same.

 

4.                                      SHARES SUBJECT TO PLAN.

 

4.1                               Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be 2,238,159 (after giving effect to the reverse three to one Common Stock split on July 27, 2007) which shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof.  If an outstanding Award for any reason expires or is terminated or canceled or if shares of Stock are acquired upon the exercise of an Award subject to a Company repurchase option and are repurchased by the Company at the Participant’s exercise or purchase price, the shares of Stock allocable to the unexercised portion of such Award or such repurchased shares of Stock shall again be available for issuance under the Plan.  However, except as adjusted pursuant to Section 4.2, in no event shall more than three million (3,000,000) shares of Stock be available for issuance pursuant to the exercise of Incentive Stock Options (the “ISO Share Limit”).

 

4.2                               Adjustments for Changes in Capital Structure.  Subject to any required action by the shareholders of the Company, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the shareholders of the Company in a form other than Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate adjustments shall be made in the number and class of shares subject to the Plan and to any outstanding Awards, in the ISO Share Limit set forth in Section 4.1, and in the exercise or purchase price per share of any outstanding Awards in order to prevent dilution or enlargement of Participants’ rights under the Plan.  For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.”  Any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded down to the nearest whole number, and in no event may the exercise price of any Award be decreased to an amount less than the par value, if any, of the stock subject to the Award.  Such adjustments shall be determined by the Board, and its determination shall be final, binding and conclusive.

 

5.                                      ELIGIBILITY AND OPTION LIMITATIONS.

 

5.1                               Persons Eligible for Awards.  Awards may be granted only to Employees, Consultants and Directors of a Participating Company.  Eligible persons may be granted more than one (1) Award.  However, eligibility in accordance with this Section 5.1 shall not entitle any person to be granted an Award, or, having been granted an Award, to be granted an additional Award.

 

5.2                               Option Grant Restrictions.  An Incentive Stock Option may be granted only to a person who is an Employee on the effective date of grant of the Option to such person.  Any person who is not an Employee on the effective date of the grant of an Option to such person may be granted only a Nonstatutory Stock Option.

 

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5.3                               Fair Market Value Limitation.  To the extent that options designated as Incentive Stock Options (granted under all stock plans of the Participating Company Group, including the Plan) become exercisable by a Participant for the first time during any calendar year for stock having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portions of such options which exceed such amount shall be treated as Nonstatutory Stock Options.  For purposes of this Section 5.3, options designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of stock shall be determined as of the time the option with respect to such stock is granted.  If the Code is amended to provide for a different limitation from that set forth in this Section 5.3, such different limitation shall be deemed incorporated herein effective as of the date and with respect to such Options as required or permitted by such amendment to the Code.  If an Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set forth in this Section 5.3, the Participant may designate which portion of such Option the Participant is exercising.  In the absence of such designation, the Participant shall be deemed to have exercised the Incentive Stock Option portion of the Option first.  Separate certificates representing each such portion shall be issued upon the exercise of the Option.

 

6.                                      TERMS AND CONDITIONS OF OPTIONS.

 

Options shall be evidenced by Option Agreements specifying the number of shares of Stock covered thereby, in such form as the Board shall from time to time establish.  No Option or purported Option shall be a valid and binding obligation of the Company unless evidenced by a fully executed Option Agreement.  Option Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:

 

6.1                               Exercise Price.  The exercise price for each Option shall be established in the discretion of the Board, subject to compliance with Section 409A of the Code; provided, however, that (a) the exercise price per share shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the Option and (b) no Option granted to a Ten Percent Shareholder shall have an exercise price per share less than one hundred ten percent (110%) of the Fair Market Value of a share of Stock on the effective date of grant of the Option.  Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than the minimum exercise price set forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of Section 424(a) of the Code.

 

6.2                               Exercisability and Term of Options.  Options shall be exercisable at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Board and set forth in the Option Agreement evidencing such Option; provided, however, that (a) no Option shall be exercisable after the expiration of ten (10) years after the effective date of grant of such Option, (b) no Incentive Stock Option granted to a Ten Percent Shareholder shall be exercisable after the expiration of five (5) years after the effective date of grant of such Option, and (c) with the exception of an Option granted to an Officer, a Director or a Consultant, no Option shall become exercisable at a rate less than twenty percent (20%) per year over a period of five (5) years from the effective date of grant of such Option, subject to the Participant’s continued Service.  Subject to the foregoing, unless otherwise specified by the Board in the grant of an Option, any Option granted hereunder shall terminate ten (10) years after the effective date of grant of the Option, unless earlier terminated in accordance with its provisions.

 

6.3                               Payment of Exercise Price.

 

(a)                                 Forms of Consideration Authorized.  Except as otherwise provided below, payment of the exercise price for the number of shares of Stock being purchased pursuant to any

 

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Option shall be made (i) in cash, by check or cash equivalent, (ii) by tender to the Company, or attestation to the ownership, of shares of Stock owned by the Participant having a Fair Market Value not less than the exercise price, (iii) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System) (a “Cashless Exercise”), (iv) by such other consideration as may be approved by the Board from time to time to the extent permitted by applicable law, or (v) by any combination thereof.  The Board may at any time or from time to time, by approval of or by amendment to the standard forms of Option Agreement described in Section 8, or by other means, grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration.

 

(b)                                 Limitations on Forms of Consideration.

 

(i)                                     Tender of Stock.  Notwithstanding the foregoing, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock.  Unless otherwise provided by the Board, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the Participant for more than six (6) months (and were not used for another Option exercise by attestation during such period) or were not acquired, directly or indirectly, from the Company.

 

(ii)                                  Cashless Exercise.  The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise.

 

6.4                               Effect of Termination of Service.

 

(a)                                 Option Exercisability.  Subject to earlier termination of the Option as otherwise provided herein and unless otherwise provided by the Board in the grant of an Option and set forth in the Option Agreement, an Option shall be exercisable after a Participant’s termination of Service only during the applicable time period determined in accordance with this Section 6.4 and thereafter shall terminate:

 

(i)                                     Disability.  If the Participant’s Service terminates because of the Disability of the Participant, the Option, to the extent unexercised and exercisable on the date on which the Participant’s Service terminated, may be exercised by the Participant (or the Participant’s guardian or legal representative) at any time prior to the expiration of twelve (12) months after the date on which the Participant’s Service terminated, but in any event no later than the date of expiration of the Option’s term as set forth in the Option Agreement evidencing such Option (the “Option Expiration Date”).

 

(ii)                                  Death.  If the Participant’s Service terminates because of the death of the Participant, the Option, to the extent unexercised and exercisable on the date on which the Participant’s Service terminated, may be exercised by the Participant’s legal representative or other person who acquired the right to exercise the Option by reason of the Participant’s death at any time prior to the expiration of twelve (12) months after the date on which the Participant’s Service terminated, but in any event no later than the Option Expiration Date.  The Participant’s Service shall be deemed to have terminated on account of death if the Participant dies within three (3) months (or such longer period of time as determined by the Board, in its discretion) after the Participant’s termination of Service.

 

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(iii)                               Termination for Cause.  Notwithstanding any other provision of the Plan to the contrary, if the Participant’s Service with the Participating Company Group is terminated for Cause, the Option shall terminate and cease to be exercisable immediately upon such termination of Service.

 

(iv)                              Other Termination of Service.  If the Participant’s Service terminates for any reason, except Disability, death or Cause, the Option, to the extent unexercised and exercisable by the Participant on the date on which the Participant’s Service terminated, may be exercised by the Participant at any time prior to the expiration of three (3) months after the date on which the Participant’s Service terminated, but in any event no later than the Option Expiration Date.

 

(b)                                 Extension if Exercise Prevented by Law.  Notwithstanding the foregoing other than termination for Cause, if the exercise of an Option within the applicable time periods set forth in Section 6.4(a) is prevented by the provisions of Section 11 below, the Option shall remain exercisable until three (3) months (or such longer period of time as determined by the Board, in its discretion) after the date the Participant is notified by the Company that the Option is exercisable, but in any event no later than the Option Expiration Date.

 

(c)                                  Extension if Participant Subject to Section 16(b).  Notwithstanding the foregoing other than termination for Cause, if a sale within the applicable time periods set forth in Section 6.4(a) of shares acquired upon the exercise of the Option would subject the Participant to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a sale of such shares by the Participant would no longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day after the Participant’s termination of Service, or (iii) the Option Expiration Date.

 

6.5                               Transferability of Options.  During the lifetime of the Participant, an Option shall be exercisable only by the Participant or the Participant’s guardian or legal representative.  No Option shall be assignable or transferable by the Participant, except by will or by the laws of descent and distribution.  Notwithstanding the foregoing, to the extent permitted by the Board, in its discretion, and set forth in the Option Agreement evidencing such Option, a Nonstatutory Stock Option shall be assignable or transferable subject to the applicable limitations, if any, described in Rule 701 under the Securities Act, and the General Instructions to Form S-8 Registration Statement under the Securities Act.

 

7.                                      TERMS AND CONDITIONS OF STOCK PURCHASE RIGHTS.

 

Stock Purchase Rights shall be evidenced by Stock Purchase Agreements, specifying the number of shares of Stock covered thereby, in such form as the Board shall from time to time establish.  No Stock Purchase Right or purported Stock Purchase Right shall be a valid and binding obligation of the Company unless evidenced by a fully executed Stock Purchase Agreement.  Stock Purchase Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:

 

7.1                               Purchase Price.  The purchase price under each Stock Purchase Right shall be established by the Board; provided, however, that (a) the purchase price per share shall be at least eighty-five percent (85%) of the Fair Market Value of a share of Stock either on the effective date of grant of the Stock Purchase Right or on the date on which the purchase is consummated and (b) the purchase price per share under a Stock Purchase Right granted to a Ten Percent Shareholder shall be at least one hundred percent (100%) of the Fair Market Value of a share of Stock either on the effective date of grant of the Stock Purchase Right or on the date on which the purchase is consummated.

 

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7.2                               Purchase Period.  A Stock Purchase Right shall be exercisable within a period established by the Board, which shall in no event exceed thirty (30) days from the effective date of the grant of the Stock Purchase Right.

 

7.3                               Payment of Purchase Price.  Except as otherwise provided below, payment of the purchase price for the number of shares of Stock being purchased pursuant to any Stock Purchase Right shall be made (a) in cash, by check, or cash equivalent, (b) in the form of the Participant’s past service rendered to a Participating Company or for its benefit having a value not less than the aggregate purchase price of the shares being acquired, (c) by such other consideration as may be approved by the Board from time to time to the extent permitted by applicable law, or (d) by any combination thereof.  The Board may at any time or from time to time, by adoption of or by amendment to the standard form of Stock Purchase Agreement described in Section 8, or by other means, grant Stock Purchase Rights which do not permit all of the foregoing forms of consideration to be used in payment of the purchase price or which otherwise restrict one or more forms of consideration.

 

7.4                               Vesting and Restrictions on Transfer.  Shares issued pursuant to any Stock Purchase Right may or may not be made subject to vesting conditioned upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria (the “Vesting Conditions”) as shall be established by the Board and set forth in the Stock Purchase Agreement evidencing such Award.  During any period (the “Restriction Period”) in which shares acquired pursuant to a Stock Purchase Right remain subject to Vesting Conditions, such shares may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of other than pursuant to an Ownership Change Event or as provided in Section 7.5.  Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions.

 

7.5                               Effect of Termination of Service.  Unless otherwise provided by the Board in the grant of a Stock Purchase Right and set forth in the Stock Purchase Agreement, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including the Participant’s death or disability), then the Company shall have the option to repurchase for the purchase price paid by the Participant any shares acquired by the Participant pursuant to a Stock Purchase Right which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service; provided, however, that with the exception of shares acquired pursuant to a Stock Purchase Right by an Officer, a Director or a Consultant, the Company’s repurchase option must lapse at the rate of at least twenty percent (20%) of the shares per year over the period of five (5) years from the effective date of grant of the Stock Purchase Right (without regard to the date on which the Stock Purchase Right was exercised) and the repurchase option must be exercised, if at all, for cash or cancellation of purchase money indebtedness for the shares within ninety (90) days following the Participant’s termination of Service.  The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company.

 

7.6                               Nontransferability of Stock Purchase Rights.  Rights to acquire shares of Stock pursuant to a Stock Purchase Right may not be assigned or transferred in any manner except by will or the laws of descent and distribution, and, during the lifetime of the Participant, shall be exercisable only by the Participant.

 

8.                                      STANDARD FORMS OF AGREEMENTS.

 

8.1                               Option Agreement.  Unless otherwise provided by the Board at the time the Option is granted, an Option shall comply with and be subject to the terms and conditions set forth in the

 

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form of Option Agreement approved by the Board concurrently with its adoption of the Plan and as amended from time to time.

 

8.2                               Stock Purchase Agreement.  Unless otherwise provided by the Board at the time the Stock Purchase Right is granted, a Stock Purchase Right shall be subject to the terms and conditions set forth in the form of Stock Purchase Agreement approved by the Board concurrently with its adoption of the Plan and as amended from time to time.

 

8.3                               Authority to Vary Terms.  The Board shall have the authority from time to time to vary the terms of any standard form of agreement described in this Section 8 either in connection with the grant or amendment of an individual Award or in connection with the authorization of a new standard form or forms; provided, however, that the terms and conditions of any such new, revised or amended standard form or forms of agreement are not inconsistent with the terms of the Plan.

 

9.                                      CHANGE IN CONTROL.

 

9.1                               Effect of Change in Control on Options.

 

(a)                                 Accelerated Vesting.  Notwithstanding any other provision of the Plan to the contrary, the Board, in its sole discretion, may provide in any Award Agreement or, in the event of a Change in Control, may take such actions as it deems appropriate to provide for the acceleration of the exercisability and vesting in connection with such Change in Control of any or all outstanding Options and shares acquired upon the exercise of such Options, subject to compliance with Section 409A of the Code.

 

(b)                                 Assumption or Substitution of Options.  In the event of a Change in Control, the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), may, without the consent of any Participant, either assume or continue the Company’s rights and obligations under outstanding Options or substitute for outstanding Options substantially equivalent options for the Acquiror’s stock.  Any Options which are neither assumed or continued by the Acquiror in connection with the Change in Control nor exercised as of the time of consummation of the Change in Control shall terminate and cease to be outstanding effective as of the time of consummation of the Change in Control.  Notwithstanding the foregoing, shares acquired upon exercise of an Option prior to the Change in Control and any consideration received pursuant to the Change in Control with respect to such shares shall continue to be subject to all applicable provisions of the Option Agreement evidencing such Option except as otherwise provided in such Option Agreement.

 

(c)                                  Cash-Out of Options.  The Board may, in its sole discretion and without the consent of any Participant, determine that, upon the occurrence of a Change in Control, each or any Option outstanding immediately prior to the Change in Control shall be canceled in exchange for a payment with respect to each vested share (and each unvested share, if so determined by the Board) of Stock subject to such canceled Option in (i) cash, (ii) stock of the Company or of a corporation or other business entity a party to the Change in Control, or (iii) other property which, in any such case, shall be in an amount having a Fair Market Value equal to the Fair Market Value of the consideration to be paid per share of Stock in the Change in Control over the exercise price per share under such Option (the “Spread”).  In the event such determination is made by the Board, the Spread (reduced by applicable withholding taxes, if any) shall be paid to Participants in respect of their canceled Options as soon as practicable following the date of the Change in Control and in respect of the unvested portion of their canceled Options in accordance with the vesting schedule applicable to such Options as in effect prior to the Change in Control.

 

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9.2                               Effect of Change in Control on Stock Purchase Right.  In the event of a Change in Control, the Acquiror, may, without the consent of any Participant, either assume or continue the Company’s rights and obligations under outstanding Stock Purchase Rights or substitute for outstanding Stock Purchase Rights substantially equivalent purchase rights for the Acquiror’s stock.  Any Stock Purchase Rights which are neither assumed or continued by the Acquiror in connection with the Change in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the time of consummation of the Change in Control.  Notwithstanding the foregoing, shares acquired upon exercise of a Stock Purchase Right prior to the Change in Control and any consideration received pursuant to the Change in Control with respect to such shares shall continue to be subject to all applicable provisions of the Stock Purchase Agreement evidencing such Stock Purchase Right except as otherwise provided in such Stock Purchase Agreement.

 

9.3                               Federal Excise Tax Under Section 4999 of the Code.

 

(a)                                 Excess Parachute Payment.  In the event that any acceleration of vesting pursuant to an Award and any other payment or benefit received or to be received by a Participant would subject the Participant to any excise tax pursuant to Section 4999 of the Code due to the characterization of such acceleration of vesting, payment or benefit as an “excess parachute payment” under Section 280G of the Code, the Participant may elect, in his or her sole discretion, to reduce the amount of any acceleration of vesting called for under the Award in order to avoid such characterization.

 

(b)                                 Determination by Independent Accountants.  To aid the Participant in making any election called for under Section 9.3(a), no later than the date of the occurrence of any event that might reasonably be anticipated to result in an “excess parachute payment” to the Participant as described in Section 9.3(a), the Company shall request a determination in writing by independent public accountants selected by the Company (the “Accountants”).  As soon as practicable thereafter, the Accountants shall determine and report to the Company and the Participant the amount of such acceleration of vesting, payments and benefits which would produce the greatest after-tax benefit to the Participant.  For the purposes of such determination, the Accountants may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and the Participant shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make their required determination.  The Company shall bear all fees and expenses the Accountants may reasonably charge in connection with their services contemplated by this Section 9.3(b).

 

10.                               TAX WITHHOLDING.

 

10.1                        Tax Withholding in General.  The Company shall have the right to deduct from any and all payments made under the Plan, or to require the Participant, through payroll withholding, cash payment or otherwise, including by means of a Cashless Exercise of an Option, to make adequate provision for, the federal, state, local and foreign taxes, if any, required by law to be withheld by the Participating Company Group with respect to an Award or the shares acquired pursuant thereto.  The Company shall have no obligation to deliver shares of Stock or to release shares of Stock from an escrow established pursuant to an Option Agreement or Stock Purchase Agreement until the Participating Company Group’s tax withholding obligations have been satisfied by the Participant.

 

10.2                        Withholding in Shares.  The Company shall have the right, but not the obligation, to deduct from the shares of Stock issuable to a Participant upon the exercise of an Award, or to accept from the Participant the tender of, a number of whole shares of Stock having a Fair Market Value, as determined by the Company, equal to all or any part of the tax withholding obligations of the Participating Company Group.  The Fair Market Value of any shares of Stock withheld or tendered to

 

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satisfy any such tax withholding obligations shall not exceed the amount determined by the applicable minimum statutory withholding rates.

 

11.                               COMPLIANCE WITH SECURITIES LAW.

 

The grant of Awards and the issuance of shares of Stock upon exercise of Awards shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities.  Awards may not be exercised if the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed.  In addition, no Award may be exercised unless (a) a registration statement under the Securities Act shall at the time of exercise of the Award be in effect with respect to the shares issuable upon exercise of the Award or (b) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the Award may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained.  As a condition to the exercise of any Award, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.

 

12.                               AMENDMENT OR TERMINATION OF PLAN.

 

The Board may amend, suspend or terminate the Plan at any time.  However, subject to changes in applicable law, regulations or rules that would permit otherwise, without the approval of the Company’s shareholders, there shall be (a) no increase in the maximum aggregate number of shares of Stock that may be issued under the Plan (except by operation of the provisions of Section 4.2), (b) no change in the class of persons eligible to receive Incentive Stock Options, and (c) no other amendment of the Plan that would require approval of the Company’s shareholders under any applicable law, regulation or rule, including the rules of any stock exchange or market system upon which the Stock may then be listed.  No amendment, suspension or termination of the Plan shall affect any then outstanding Award unless expressly provided by the Board. Except as provided by the next sentence, no amendment, suspension or termination of the Plan may adversely affect any then outstanding Award without the consent of the Participant.  Notwithstanding any other provision of the Plan to the contrary, the Board may, in its sole and absolute discretion and without the consent of any participant, amend the Plan or any Award agreement, to take effect retroactively or otherwise, as it deems necessary or advisable for the purpose of conforming the Plan or such Award agreement to any present or future law, regulation or rule applicable to the Plan, including, but not limited to, Section 409A of the Code.

 

13.                               MISCELLANEOUS PROVISIONS.

 

13.1                        Repurchase Rights.  Shares issued under the Plan may be subject to a right of first refusal, one or more repurchase options, or other conditions and restrictions as determined by the Board in its discretion at the time the Award is granted.  The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company.  Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock

 

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acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions.

 

13.2                        Provision of Information. At least annually, copies of the Company’s balance sheet and income statement for the just completed fiscal year shall be made available to each Participant and purchaser of shares of Stock upon the exercise of an Award.  The Company shall not be required to provide such information to key employees whose duties in connection with the Company assure them access to equivalent information.  Furthermore, the Company shall deliver to each Participant such disclosures as are required in accordance with Rule 701 under the Securities Act.

 

13.3                        Shareholder Approval.  The Plan or any increase in the maximum aggregate number of shares of Stock issuable thereunder as provided in Section 4.1 (the “Authorized Shares”) shall be approved by a majority of the outstanding securities of the Company entitled to vote within twelve (12) months before or after the date of adoption thereof by the Board.  Awards granted prior to security holder approval of the Plan or in excess of the Authorized Shares previously approved by the security holders shall become exercisable no earlier than the date of security holder approval of the Plan or such increase in the Authorized Shares, as the case may be.

 

IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies that the foregoing sets forth the Q2 Holdings, Inc. 2007 Stock Plan as duly adopted by the Board on July 27, 2007.

 

	
 
    	
 
    
	
 
    	
/s/   R.H. Seale
    
	
 
    	
R.H.   “Hank” Seale, III
    
	
 
    	
Secretary
    

 

15

 

AMENDMENT TO THE

CBG HOLDINGS, INC.

2007 STOCK PLAN

 

This Amendment (this “Amendment”) to the CBG Holdings, Inc. (the “Company”) 2007 Stock Plan, attached hereto as Exhibit A (the “Existing Plan”), is effective as of October 26, 2007 (the “Effective Date”).  Capitalized terms not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Existing Plan.

 

RECITALS

 

A.                                    Pursuant to the powers vested in the Board in Section 12 of the Existing Plan, the Company wishes to amend Section 4.1 therein to reflect certain changes in the maximum number of shares of Stock issuable under the Plan.

 

B.                                    The Board duly approved and adopted this Amendment on October 26, 2007.

 

C.                                    The Company’s stockholders duly approved and adopted this Amendment on October 29, 2007.

 

AMENDMENT TO THE EXISTING PLAN

 

In consideration of the recitals referenced above and effective upon the Effective Date, Section 4.1 of the Existing Plan is hereby deleted in its entirety and the following is hereby inserted in lieu thereof:

 

“Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be two million three hundred thousand six hundred thirty-nine (2,300,639) (after giving effect to the reverse three to one Common Stock split on July 27, 2007) which shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof.  If an outstanding Award for any reason expires or is terminated or canceled or if shares of Stock are acquired upon the exercise of an Award subject to a Company repurchase option and are repurchased by the Company at the Participant’s exercise or purchase price, the shares of Stock allocable to the unexercised portion of such Award or such repurchased shares of Stock shall again be available for issuance under the Plan.  However, except as adjusted pursuant to Section 4.2, in no event shall more than three million (3,000,000) shares of Stock be available for issuance pursuant to the exercise of Incentive Stock Options (the “ISO Share Limit”).”

 

Signature page follows.

 

 

IN WITNESS WHEREOF, the undersigned officer of the Company certifies that this Amendment was duly adopted by the Board and the Company’s stockholders as of the respective dates set forth above.  The Company hereby executes the Amendment as of the Effective Date.

 

 

	
 
    	
CBG HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   R. H. Seale
    
	
 
    	
 
    	
R.   H. “Hank” Seale, III
    
	
 
    	
 
    	
Chief   Executive Officer and President
    

 

SIGNATURE PAGE TO AMENDMENT TO CBG HOLDINGS, INC. 2007 STOCK PLAN

 

 

SECOND AMENDMENT TO THE

CBG HOLDINGS, INC.

2007 STOCK PLAN

 

This Second Amendment (this “Amendment”) to the CBG Holdings, Inc. (the “Company”) 2007 Stock Plan, attached hereto as Exhibit A (the “Existing Plan”), is effective as of February 17, 2009 (the “Effective Date”).  Capitalized terms not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Existing Plan.

 

RECITALS

 

A.                                    The Existing Plan was amended on October 26, 2007.

 

B.                                    On June 27, 2007, the Company acquired 100% of the outstanding stock of Q2 Software, Inc. (“Q2”) and Cardinal Software, Inc. (“Cardinal”) and assumed all outstanding options under the Q2 Software, Inc. 2005 Stock Plan and Cardinal Software, Inc. 2005 Stock Option Plan (the “Mergers”);

 

C.                                    The options of Cardinal and Q2 assumed by CBG in the Mergers, in accordance with the terms and conversion rates of the respective Mergers were exercisable for an aggregate of 1,546,332 shares of Common Stock of the Company (the “Assumed Options”);

 

D.                                    In connection with the Mergers, the Company adopted the CBG Holdings, Inc. 2007 Stock Plan (the “Plan”) with 2,238,159 shares reserved under the Plan (which was soon thereafter increased to 2,300,639 shares) and believed that the Assumed Options would be assumed into the Plan and such shares would be additive to the initial share reserve under the Plan;

 

E.                                     Pursuant to the powers vested in the Board in Section 12 of the Existing Plan, the Company wishes to further amend Section 4.1 therein to clarify that the Assumed Options were assumed by the Company into the Plan and increase the Company’s common stock share reserve under the Plan and the ISO Share Limit (as define below) to specifically include the number of Assumed Options;

 

F.                                      Pursuant to the powers vested in the Board in Section 12 of the Existing Plan, the Company also wishes to further amend Section 4.1 therein to increase the number of shares the Company may issue pursuant to the Plan and the ISO Share Limit by an additional 1,000,000 shares;

 

G.                                    The Board duly approved and adopted this Amendment on December 12, 2008 and on February 17, 2009.

 

H.                                   The Company’s stockholders duly approved and adopted this Amendment on February 17, 2009.

 

AMENDMENT TO THE EXISTING PLAN

 

In consideration of the recitals referenced above and effective upon the Effective Date, Section 4.1 of the Existing Plan is hereby deleted in its entirety and the following is hereby inserted in lieu thereof:

 

 

“Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be four million eight hundred forty-six thousand nine hundred seventy-one (4,846,971) which shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof.  If an outstanding Award for any reason expires or is terminated or canceled or if shares of Stock are acquired upon the exercise of an Award subject to a Company repurchase option and are repurchased by the Company at the Participant’s exercise or purchase price, the shares of Stock allocable to the unexercised portion of such Award or such repurchased shares of Stock shall again be available for issuance under the Plan.  However, except as adjusted pursuant to Section 4.2, in no event shall more than four million eight hundred forty-six thousand nine hundred seventy-one (4,846,971) shares of Stock be available for issuance pursuant to the exercise of Incentive Stock Options (the “ISO Share Limit”).”

 

Signature page follows.

 

 

IN WITNESS WHEREOF, the undersigned officer of the Company certifies that this Amendment was duly adopted by the Board and the Company’s stockholders as of the respective dates set forth above.  The Company hereby executes the Amendment as of the Effective Date.

 

 

	
 
    	
CBG HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   R. H. Seale
    
	
 
    	
 
    	
R.   H. “Hank” Seale, III
    
	
 
    	
 
    	
Chief   Executive Officer and President
    

 

SIGNATURE PAGE TO SECOND AMENDMENT TO CBG HOLDINGS, INC. 2007 STOCK PLAN

 

 

THIRD AMENDMENT TO THE

CBG HOLDINGS, INC.

2007 STOCK PLAN

 

This Third Amendment (this “Amendment”) to the 2007 Stock Plan, as amended, attached hereto as Exhibit A (the “Existing Plan”) of CBG Holdings, Inc. (the “Corporation”), is effective as of November 17, 2011 (the “Effective Date”).  Capitalized terms not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Existing Plan.

 

RECITALS

 

A.                                    Pursuant to the powers vested in the Board in Section 12 of the Existing Plan, the Corporation wishes to amend Section 4.1 therein to reflect certain changes in the maximum number of shares of Stock issuable under the Plan.

 

B.                                    The Board duly approved and adopted this Amendment on July 13, 2011.

 

C.                                    The Corporation’s stockholders duly approved and adopted this Amendment on November 17, 2011.

 

AMENDMENT TO THE EXISTING PLAN

 

In consideration of the recitals referenced above and effective upon the Effective Date, Section 4.1 of the Existing Plan is hereby deleted in its entirety and the following is hereby inserted in lieu thereof:

 

“Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be six million four hundred twenty-eight thousand four hundred thirty-three (6,428,433) which shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof.  If an outstanding Award for any reason expires or is terminated or canceled or if shares of Stock are acquired upon the exercise of an Award subject to a Company repurchase option and are repurchased by the Company at the Participant’s exercise or purchase price, the shares of Stock allocable to the unexercised portion of such Award or such repurchased shares of Stock shall again be available for issuance under the Plan.  However, except as adjusted pursuant to Section 4.2, in no event shall more than six million four hundred twenty-eight thousand four hundred thirty-three (6,428,433) shares of Stock be available for issuance pursuant to the exercise of Incentive Stock Options (the “ISO Share Limit”).”

 

Signature page follows.

 

 

IN WITNESS WHEREOF, the undersigned officer of the Corporation certifies that this Amendment was duly adopted by the Board and the Corporation’s stockholders as of the respective dates set forth above.  The Corporation hereby executes the Amendment as of the Effective Date.

 

 

	
 
    	
CBG HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   R. H. Seale
    
	
 
    	
 
    	
R.   H. “Hank” Seale, III
    
	
 
    	
 
    	
Chief   Executive Officer and President
    

 

 

FOURTH AMENDMENT TO THE

CBG HOLDINGS, INC.

2007 STOCK PLAN

 

This Fourth Amendment (this “Amendment”) to the 2007 Stock Plan, as amended, attached hereto as Exhibit A (the “Existing Plan”) of CBG Holdings, Inc. (the “Corporation”), is effective as of February 8, 2012 (the “Effective Date”).  Capitalized terms not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Existing Plan.

 

RECITALS

 

A.                                    Pursuant to the powers vested in the Board in Section 12 of the Existing Plan, the Corporation wishes to amend Section 4.1 therein to reflect certain changes in the maximum number of shares of Stock issuable under the Plan and amend Section 9.1 to allow for immediate vesting of options issued to the Corporation’s directors on or after the Effective Date upon a change in control of the Corporation.

 

B.                                    The Board duly approved and adopted this Amendment on February 8, 2012.

 

C.                                    The requisite stockholders duly approved and adopted this Amendment on February 8, 2012.

 

AMENDMENTS TO THE EXISTING PLAN

 

In consideration of the recitals referenced above and effective upon the Effective Date, Section 4.1 of the Existing Plan is hereby deleted in its entirety and the following is hereby inserted in lieu thereof:

 

“Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be seven million six hundred seventy-eight thousand four hundred thirty-three (7,678,433) which shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof.  If an outstanding Award for any reason expires or is terminated or canceled or if shares of Stock are acquired upon the exercise of an Award subject to a Company repurchase option and are repurchased by the Company at the Participant’s exercise or purchase price, the shares of Stock allocable to the unexercised portion of such Award or such repurchased shares of Stock shall again be available for issuance under the Plan.  However, except as adjusted pursuant to Section 4.2, in no event shall more than seven million six hundred seventy-eight thousand four hundred thirty-three (7,678,433) shares of Stock be available for issuance pursuant to the exercise of Incentive Stock Options (the “ISO Share Limit”).”

 

In consideration of the recitals referenced above and effective upon the Effective Date, shall be added to the end of Section 9.1(a):

 

“Notwithstanding any other provision set forth in this Section 9.1, any Option granted to a member of the Board on or after February 8, 2012 shall become fully vested and exercisable the day immediately prior to, but contingent upon, a Change in Control.”

 

Signature page follows.

 

 

IN WITNESS WHEREOF, the undersigned officer of the Corporation certifies that this Amendment was duly adopted by the Board and the Corporation’s stockholders as of the respective dates set forth above.  The Corporation hereby executes the Amendment as of the Effective Date.

 

 

	
 
    	
CBG HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   R. H. Seale
    
	
 
    	
 
    	
R.   H. “Hank” Seale, III
    
	
 
    	
 
    	
Chief   Executive Officer and President
    

 

[Signature Page to Fourth Amendment to the CBG Holdings, Inc. 2007 Stock Plan]

 

 

FIFTH AMENDMENT TO THE

CBG HOLDINGS, INC.

2007 STOCK PLAN

 

This Fifth Amendment (this “Amendment”) to the 2007 Stock Plan, as amended, attached hereto as Exhibit A (the “Existing Plan”) of CBG Holdings, Inc. (the “Corporation”), is effective as of February 28, 2013 (the “Effective Date”).  Capitalized terms not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Existing Plan.

 

RECITALS

 

A.                                    Pursuant to the powers vested in the Board in Section 12 of the Existing Plan, the Corporation wishes to amend Section 1.1 therein to change the name of the Plan from the “CBG Holdings, Inc. 2007 Stock Plan” to the “Q2 Holdings, Inc. 2007 Stock Plan.”

 

B.                                    The Board duly approved and adopted this Amendment on February 28, 2013.

 

C.                                    The requisite stockholders duly approved and adopted this Amendment on February 28, 2013.

 

AMENDMENTS TO THE EXISTING PLAN

 

In consideration of the recitals referenced above and effective upon the Effective Date, Section 1.1 of the Existing Plan is hereby deleted in its entirety and the following is hereby inserted in lieu thereof:

 

Establishment.  Q2 Holdings, Inc. 2007 Stock Plan (the “Plan”) is hereby established effective as of July 27, 2007.

 

Signature page follows.

 

 

IN WITNESS WHEREOF, the undersigned officer of the Corporation certifies that this Amendment was duly adopted by the Board and the Corporation’s stockholders as of the respective dates set forth above.  The Corporation hereby executes the Amendment as of the Effective Date.

 

 

	
 
    	
Q2 HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Barry Benton
    
	
 
    	
 
    	
Barry   Benton
    
	
 
    	
 
    	
Assistant   Secretary
    

 

 

SIXTH AMENDMENT TO THE

Q2 HOLDINGS, INC.

2007 STOCK PLAN

 

This Sixth Amendment (this “Amendment”) to the 2007 Stock Plan, as amended, attached hereto as Exhibit A (the “Existing Plan”) of Q2 Holdings, Inc. (the “Corporation”), is effective as of December 11, 2013 (the “Effective Date”).  Capitalized terms not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Existing Plan.

 

RECITALS

 

A.                                    Pursuant to the powers vested in the Board in Section 12 of the Existing Plan, the Corporation wishes to amend Section 4.1 therein to reflect certain changes in the maximum number of shares of Stock issuable under the Plan.

 

B.                                    The Board duly approved and adopted this Amendment on December 11, 2013.

 

C.                                    The requisite stockholders duly approved and adopted this Amendment on December 11, 2013.

 

AMENDMENTS TO THE EXISTING PLAN

 

In consideration of the recitals referenced above and effective upon the Effective Date, Section 4.1 of the Existing Plan is hereby deleted in its entirety and the following is hereby inserted in lieu thereof:

 

“Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be seven million nine hundred twenty-eight thousand four hundred thirty-three (7,928,433) which shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof.  If an outstanding Award for any reason expires or is terminated or canceled or if shares of Stock are acquired upon the exercise of an Award subject to a Company repurchase option and are repurchased by the Company at the Participant’s exercise or purchase price, the shares of Stock allocable to the unexercised portion of such Award or such repurchased shares of Stock shall again be available for issuance under the Plan.  However, except as adjusted pursuant to Section 4.2, in no event shall more than seven million nine hundred twenty-eight thousand four hundred thirty-three (7,928,433) shares of Stock be available for issuance pursuant to the exercise of Incentive Stock Options (the “ISO Share Limit”).”

 

Signature page follows.

 

 

IN WITNESS WHEREOF, the undersigned officer of the Corporation certifies that this Amendment was duly adopted by the Board and the Corporation’s stockholders as of the respective dates set forth above.  The Corporation hereby executes the Amendment as of the Effective Date.

 

 

	
 
    	
Q2 HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Matt Flake
    
	
 
    	
 
    	
Matt   Flake
    
	
 
    	
 
    	
Chief   Executive Officer and President

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