Document:

exv4w1

 

Exhibit 4.1

 

 

900Seconds, Inc.

(currently known as Bix.com, inc.)

2006 Stock Incentive Plan

Adopted by the Board on February 16, 2006

Approved by the Shareholders on February 16, 2006

 

 

 

 

TABLE OF CONTENTS

	 	 	 
	 	 	Page
	SECTION 1. PURPOSE
	 	1
	 
	 	 
	SECTION 2. DEFINITIONS
	 	1
	2.1 “Board”
	 	1
	2.2 “Change in Control”
	 	1
	2.3 “Code”
	 	2
	2.4 “Committee”
	 	2
	2.5 “Company”
	 	2
	2.6 “Consultant”
	 	2
	2.7 “Disability”
	 	2
	2.8 “Employee”
	 	2
	2.9 “Exchange Act”
	 	2
	2.10 “Exercise Price”
	 	2
	2.11 “Fair Market Value”
	 	2
	2.12 “ISO”
	 	2
	2.13 “NSO”
	 	2
	2.14 “Option”
	 	2
	2.15 “Optionee”
	 	2
	2.16 “Outside Director”
	 	3
	2.17 “Parent”
	 	3
	2.18 “Plan”
	 	3
	2.19 “Purchase Price”
	 	3
	2.20 “Purchaser”
	 	3
	2.21 “Restricted Share Agreement”
	 	3
	2.22 “Securities Act”
	 	3
	2.23 “Service”
	 	3
	2.24 “Share”
	 	3
	2.25 “Stock”
	 	3
	2.26 “Stock Option Agreement”
	 	3
	2.27 “Subsidiary”
	 	3
	2.28 “Ten-Percent Shareholder”
	 	4
	 
	 	 
	SECTION 3. ADMINISTRATION
	 	4
	3.1 General Rule
	 	4
	3.2 Board Authority and Responsibility
	 	4
	 
	 	 
	SECTION 4. ELIGIBILITY
	 	4
	4.1 General Rule
	 	4
	 
	 	 
	SECTION 5. STOCK SUBJECT TO PLAN
	 	4
	5.1 Share Limit
	 	4
	5.2 Additional Shares
	 	4

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	SECTION 6. RESTRICTED SHARES
	 	5
	6.1 Restricted Share Agreement
	 	5
	6.2 Duration of Offers and Nontransferability of Purchase Rights
	 	5
	6.3 Purchase Price
	 	5
	6.4 Repurchase Rights and Transfer Restrictions
	 	5
	 
	 	 
	SECTION 7. STOCK OPTIONS
	 	5
	7.1 Stock Option Agreement
	 	5
	7.2 Number of Shares; Kind of Option
	 	5
	7.3 Exercise Price
	 	5
	7.4 Term
	 	6
	7.5 Exercisability
	 	6
	7.6 Repurchase Rights and Transfer Restrictions
	 	6
	7.7 Transferability of Options
	 	7
	7.8 Exercise of Options on Termination of Service
	 	7
	7.9 No Rights as a Shareholder
	 	7
	7.10 Modification, Extension and Renewal of Options
	 	7
	 
	 	 
	SECTION 8. PAYMENT FOR SHARES
	 	7
	8.1 General
	 	7
	8.2 Surrender of Stock
	 	8
	8.3 Services Rendered
	 	8
	8.4 Promissory Notes
	 	8
	8.5 Exercise/Sale
	 	8
	8.6 Exercise/Pledge
	 	8
	8.7 Other Forms of Payment
	 	8
	 
	 	 
	SECTION 9. ADJUSTMENT OF SHARES
	 	8
	9.1 General
	 	8
	9.2 Dissolution or Liquidation
	 	9
	9.3 Mergers and Consolidations
	 	9
	9.4 Reservation of Rights
	 	9
	 
	 	 
	SECTION 10. REPURCHASE RIGHTS
	 	9
	10.1 Company’s Right To Repurchase Shares
	 	9
	 
	 	 
	SECTION 11. WITHHOLDING TAXES
	 	10
	11.1 General
	 	10
	11.2 Share Withholding
	 	10
	11.3 Cashless Exercise/Pledge
	 	10
	11.4 Other Forms of Payment
	 	10
	 
	 	 
	SECTION 12. SECURITIES LAW REQUIREMENTS
	 	10
	12.1 General
	 	10
	12.2 Voting and Dividend Rights
	 	11
	12.3 Financial Reports
	 	11
	 
	 	 
	SECTION 13. NO RETENTION RIGHTS
	 	11

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	SECTION 14. DURATION AND AMENDMENTS
	 	11
	14.1 Term of the Plan
	 	11
	14.2 Right to Amend or Terminate the Plan
	 	11
	14.3 Effect of Amendment or Termination
	 	11
	 
	 	 
	SECTION 15. EXECUTION
	 	12

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900SECONDS, INC.

2006 STOCK INCENTIVE PLAN

SECTION 1. PURPOSE.

     The Plan was adopted by the Board of Directors effective February 16, 2006. The purpose of
the Plan is to offer selected service providers the opportunity to acquire equity in the Company
through awards of Options (which may constitute incentive stock options or nonstatutory stock
options) and the award or sale of Shares.

     The award of Options and the award or sale of Shares under the Plan is intended to be exempt
from the securities qualification requirements of the California Corporations Code by satisfying
the exemption under section 25102(o) of the California Corporations Code. However, awards of
Options and the award or sale of Shares may be made in reliance upon other state securities law
exemptions. To the extent that such other exemptions are relied upon, the terms of this Plan which
are included only to comply with section 25102(o) shall be disregarded to the extent provided in
the Stock Option Agreement or Restricted Share Agreement.

SECTION 2. DEFINITIONS.

	2.1	 	“Board” shall mean the Board of Directors of the Company, as constituted from time to time.
	 
	2.2	 	“Change in Control” shall mean the occurrence of any of the following events:

	 	(a)	 	The consummation of a merger or consolidation of the Company with or into
another entity or any other corporate reorganization, if persons who were not
shareholders of the Company immediately prior to such merger, consolidation or other
reorganization own immediately after such merger, consolidation or other reorganization
fifty percent (50%) or more of the voting power of the outstanding securities of each
of (A) the continuing or surviving entity and (B) any direct or indirect parent
corporation of such continuing or surviving entity;
	 
	 	(b)	 	The consummation of the sale, transfer or other disposition of all or
substantially all of the Company’s assets or the shareholders of the Company approve a
plan of complete liquidation of the Company; or
	 
	 	(c)	 	Any “person” (as defined below) who, by the acquisition or aggregation of
securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the combined voting power of the Company’s then outstanding
securities ordinarily (and apart from rights accruing under special circumstances)
having the right to vote at elections of directors (the “Base Capital Stock”); except
that any change in the relative beneficial ownership of the Company’s securities by any
person resulting solely from a reduction in the

aggregate number of outstanding shares of Base Capital Stock, and any decrease
thereafter in such person’s ownership of securities, shall be disregarded until such

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person increases in any manner, directly or indirectly, such person’s beneficial
ownership of any securities of the Company.

For purposes of Section 2.2(c), the term “person” shall have the same meaning as when used in
sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary
holding securities under an employee benefit plan maintained by the Company or a Parent or
Subsidiary and (2) a corporation owned directly or indirectly by the shareholders of the Company in
substantially the same proportions as their ownership of the Stock.

Notwithstanding the foregoing, the term “Change in Control” shall not include a transaction the
sole purpose of which is (a) to change the state of the Company’s incorporation, (b) to form a
holding company that will be owned in substantially the same proportions by the persons who held
the Company’s securities immediately before such transaction; or (c) to make an initial public
offering of the Company’s Stock.

	2.3	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	2.4	 	“Committee” shall mean the committee designated by the Board, which is authorized to
administer the Plan, as described in Section 3 hereof.
	 
	2.5	 	“Company” shall mean 900Seconds, Inc., a California corporation.
	 
	2.6	 	“Consultant” shall mean a consultant or advisor who is not an Employee or Outside Director
and who performs bona fide services for the Company, a Parent or Subsidiary.
	 
	2.7	 	“Disability” shall mean a condition that renders an individual unable to engage in
substantial gainful activity by reason of any medically determinable physical or mental
impairment.
	 
	2.8	 	“Employee” shall mean any individual who is a common-law employee of the Company, a Parent or
a Subsidiary and who is an “employee” within the meaning of section 3401(c) of the Code and
regulations issued thereunder.
	 
	2.9	 	“Exchange Act” shall mean the U.S. Securities and Exchange Act of 1934, as amended.
	 
	2.10	 	“Exercise Price” shall mean the amount for which one Share may be purchased upon the exercise
of an Option, as specified in a Stock Option Agreement.
	 
	2.11	 	“Fair Market Value” means, with respect to a Share, the market price of one Share of Stock,
determined by the Board in good faith. Such determination shall be conclusive and binding on
all persons.
	 
	2.12	 	“ISO” shall mean an incentive stock option described in section 422(b) of the Code.
	 
	2.13	 	“NSO” shall mean a stock option that is not an ISO.
	 
	2.14	 	“Option” shall mean an ISO or NSO granted under the Plan and entitling the holder to purchase
Shares.
	 
	2.15	 	“Optionee” shall mean an individual or estate that holds an Option.

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	2.16	 	“Outside Director” shall mean a member of the Board of the Company, a Parent or a Subsidiary
who is not an Employee.
	 
	2.17	 	“Parent” shall mean any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company owns
stock possessing fifty percent (50%) or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain. A corporation that attains the
status of a Parent on a date after the adoption of the Plan shall be considered a Parent
commencing as of such date.
	 
	2.18	 	“Plan” shall mean the 900Seconds, Inc. 2006 Stock Incentive Plan.
	 
	2.19	 	“Purchase Price” shall mean the consideration for which one Share may be acquired under the
Plan (other than upon exercise of an Option).
	 
	2.20	 	“Purchaser” shall mean a person to whom the Board has offered the right to acquire Shares under the Plan
(other than upon exercise of an Option).
	 
	2.21	 	“Restricted Share Agreement” shall mean the agreement between the Company and a Purchaser who
acquires Shares under the Plan that contains the terms, conditions and restrictions pertaining
to the acquisition of such Shares.
	 
	2.22	 	“Securities Act” shall mean the U.S. Securities Act of 1933, as amended.
	 
	2.23	 	“Service” shall mean service as an Employee, a Consultant or an Outside Director, subject to
such further limitations as may be set forth in the applicable Stock Option Agreement or
Restricted Share Agreement. Service shall be deemed to continue during a bona fide leave of
absence approved by the Company in writing if and to the extent that continued crediting of
Service for purposes of the Plan is expressly required by the terms of such leave or by
applicable law, as determined by the Company. However, for purposes of determining whether an
Option is entitled to ISO status, and to the extent required under the Code, an Employee’s
employment will be treated as terminating ninety (90) days after such Employee went on leave,
unless such Employee’s right to return to active work is guaranteed by law or by a contract or
such Employee immediately returns to active work. The Company determines which leaves count
toward Service, and when Service terminates for all purposes under the Plan.
	 
	2.24	 	“Share” shall mean one share of Stock, as adjusted in accordance with Section 9 (if
applicable).
	 
	2.25	 	“Stock” shall mean the common stock of the Company.
	 
	2.26	 	“Stock Option Agreement” shall mean the agreement between the Company and an Optionee which
contains the terms, conditions and restrictions pertaining to the Optionee’s Option.
	 
	2.27	 	“Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of

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	 	 	the total combined voting power of all classes of stock in one of the other corporations in such
chain. A corporation that attains the status of a Subsidiary on a date after the adoption of
the Plan shall be considered a Subsidiary commencing as of such date.
	 
	2.28	 	“Ten-Percent Shareholder” means an individual who owns more than ten percent (10%) of the
total combined voting power of all classes of outstanding stock of the Company, its Parent or
any of its Subsidiaries. In determining stock ownership for purposes of this Section 2.28,
the attribution rules of section 424(d) of the Code shall be applied.

SECTION 3. ADMINISTRATION.

	3.1	 	General Rule. The Plan shall be administered by the Board. However, the Board may delegate
any or all administrative functions under the Plan otherwise exercisable by the Board to one
or more Committees. Each Committee shall consist of at least two directors of the Board who
have been appointed by the Board. Each Committee shall have the authority and be responsible
for such functions as the Board has assigned to it. If a Committee has been appointed, any
reference to the Board in the Plan shall be construed as a reference to the Committee to whom
the Board has assigned a particular function.
	 
	3.2	 	Board Authority and Responsibility. Subject to the provisions of the Plan, the Board shall
have full authority and discretion to take any actions it deems necessary or advisable for the
administration of the Plan. All decisions, interpretations and any other actions of the Board
with respect to the Plan shall be final and binding on all persons deriving rights under the
Plan.

SECTION 4. ELIGIBILITY.

	4.1	 	General Rule. Only Employees shall be eligible for the grant of ISOs. Only Employees,
Consultants and Outside Directors shall be eligible for the grant of NSOs or the award or sale
of Shares.

SECTION 5. STOCK SUBJECT TO PLAN.

	5.1	 	Share Limit. Subject to Sections 5.2 and 9, the aggregate number of Shares which may be
issued under the Plan shall not exceed 3,639,676 Shares. The number of Shares which are
subject to Options or other rights outstanding at any time shall not exceed the number of
Shares which then remain available for issuance under the Plan. The Company, during the term
of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the
requirements of the Plan. Shares offered under the Plan may be authorized but unissued
Shares.
	 
	5.2	 	Additional Shares. In the event that any outstanding Option or other right expires or is
canceled for any reason, the Shares allocable to the unexercised portion of such Option or
other right shall remain available for issuance pursuant to the
Plan. If a Share previously issued under
the Plan is reacquired by the Company
pursuant to a forfeiture provision, right
of repurchase or right of first refusal,
then such Share shall again become
available for issuance under the Plan.

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SECTION 6. RESTRICTED SHARES.

	6.1	 	Restricted Share Agreement. Each award or sale of Shares under the Plan (other than upon
exercise of an Option) shall be evidenced by a Restricted Share Agreement between the
Purchaser and the Company. Such award or sale shall be subject to all applicable terms and
conditions of the Plan and may be subject to any other terms and conditions imposed by the
Board, as set forth in the Restricted Share Agreement, that are not inconsistent with the
Plan. The provisions of the various Restricted Share Agreements entered into under the Plan
need not be identical.

	6.2	 	Duration of Offers and Nontransferability of Purchase Rights. Any right to acquire Shares
(other than an Option) shall automatically expire if not exercised by the Purchaser within
thirty (30) days after the Company communicates the grant of such right to the Purchaser.
Such right shall be nontransferable and shall be exercisable only by the Purchaser to whom the
right was granted.

	6.3	 	Purchase Price. The Purchase Price of Shares offered under the Plan shall not be less than
eighty-five percent (85%) of the Fair Market Value of such Shares; provided, however, if the
Purchaser is a Ten-Percent Shareholder, the Purchase Price shall not be less than one hundred
percent (100%) of the Fair Market Value of such Shares. Subject to the foregoing in this
Section 6.3, the Board shall determine the amount of the Purchase Price in its sole
discretion. The Purchase Price shall be payable in a form described in Section 8.

	6.4	 	Repurchase Rights and Transfer Restrictions. Each award or sale of Shares shall be subject
to such forfeiture conditions, rights of repurchase, rights of first refusal and other
transfer restrictions as the Board may determine, subject to the requirements of Section 10.
Such restrictions shall be set forth in the applicable Restricted Share Agreement and shall
apply in addition to any restrictions otherwise applicable to holders of Shares generally.

SECTION 7. STOCK OPTIONS.

	7.1	 	Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock
Option Agreement between the Optionee and the Company. The Option shall be subject to all
applicable terms and conditions of the Plan and may be subject to any other terms and
conditions imposed by the Board, as set forth in the Stock Option Agreement, which are not
inconsistent with the Plan. The provisions of the various Stock Option Agreements entered
into under the Plan need not be identical.

	7.2	 	Number of Shares; Kind of Option. Each Stock Option Agreement shall specify the number of
Shares that are subject to the Option and shall provide for the adjustment of such number in
accordance with Section 9. The Stock Option Agreement shall also specify whether the Option
is intended to be an ISO or an NSO.

	7.3	 	Exercise Price. Each Stock Option Agreement shall set forth the Exercise Price, which shall
be payable in a form described in Section 8. Subject to the following requirements, the
Exercise Price under any Option shall be determined by the Board in its sole discretion:

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	 	(a)	 	Minimum Exercise Price for ISOs. The Exercise Price per Share of an
ISO shall not be less than one hundred percent (100%) of the Fair Market Value of a
Share on the date of grant; provided, however, that the Exercise Price per Share of an
ISO granted to a Ten-Percent Shareholder shall not be less than one hundred ten percent
(110%) of the Fair Market Value of a Share on the date of grant.
	 
	 	(b)	 	Minimum Exercise Price for NSOs. The Exercise Price per Share of an
NSO shall not be less than eighty-five percent (85%) of the Fair Market Value of a
Share on the date of grant; provided, however, that the Exercise Price per Share of an
NSO granted to a Ten-Percent Shareholder shall not be less than one hundred ten percent
(110%) of the Fair Market Value of a Share on the date of grant.

	7.4	 	Term. Each Stock Option Agreement shall specify the term of the Option. The term of an
Option shall in no event exceed ten (10) years from the date of grant. The term of an ISO
granted to a Ten-Percent Shareholder shall not exceed five (5) years from the date of grant.
Subject to the foregoing, the Board in its sole discretion shall determine when an Option
shall expire.

	7.5	 	Exercisability. Each Stock Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable; provided, however, that no Option shall be
exercisable unless the Optionee has delivered to the Company an executed copy of the Stock
Option Agreement. Subject to the following restrictions, the Board in its sole discretion
shall determine when all or any installment of an Option is to become exercisable and may, in
its discretion, provide for accelerated exercisability in the event of a Change in Control or
other events:

	 	(a)	 	Options Granted to Employees. An Option granted to an Optionee who is
not a Consultant or an officer or director of the Company, a Parent or a Subsidiary
shall be exercisable at the minimum rate of twenty percent (20%) per year for each of
the first five (5) years starting from the date of grant, subject to reasonable
conditions such as continued Service.
	 
	 	(b)	 	Options Granted to Outside Directors, Consultants or Officers. An
Option granted to an Optionee who is a Consultant or an officer or director of the
Company, a Parent or a Subsidiary shall be exercisable at any time or during any period
established by the Board, subject to reasonable conditions such as continued Service;
provided, however, that the exercisability of an Option granted to an Optionee for
service as an Outside Director shall be automatically accelerated in full in the event
of a Change in Control.
	 
	 	(c)	 	Early Exercise. A Stock Option Agreement may permit the Optionee to
exercise the Option as to Shares that are subject to a right of repurchase by the
Company in accordance with the requirements of Section 10.1.

	7.6	 	Repurchase Rights and Transfer Restrictions. Shares purchased on exercise of Options shall
be subject to such forfeiture conditions, rights of repurchase, rights of first refusal and
other transfer restrictions as the Board may determine, subject to the requirements of Section
10. Such restrictions shall be set forth in the applicable Stock Option Agreement

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	 	 	and shall apply in addition to any restrictions otherwise applicable to holders of Shares generally.

	7.7	 	Transferability of Options. During an Optionee’s lifetime, his or her Options shall be
exercisable only by the Optionee or by the Optionee’s guardian or legal representatives, and
shall not be transferable other than by beneficiary designation, will or the laws of descent
and distribution. Notwithstanding the foregoing, however, to the extent permitted by the
Board in its sole discretion, an NSO may be transferred by the Optionee to one or more family
members or a trust established for the benefit of the Optionee and/or one or more family
members to the extent permitted by section 260.140.41(d) of Title 10 of the California Code of
Regulations and Rule 701 of the Securities Act.

	7.8	 	Exercise of Options on Termination of Service. Each Option shall set forth the extent to
which the Optionee shall have the right to exercise the Option following termination of the
Optionee’s Service. Each Stock Option Agreement shall provide the Optionee with the right to
exercise the Option following the Optionee’s termination of Service during the Option term, to
the extent the Option was exercisable for vested Shares upon termination of Service, for at
least thirty (30) days if termination of Service is due to any reason other than cause, death
or Disability, and for at least six (6) months after termination of Service if due to death or
Disability (but in no event later than the expiration of the Option term). If the Optionee’s
Service is terminated for cause, the Stock Option Agreement may provide that the Optionee’s
right to exercise the Option terminates immediately on the effective date of the Optionee’s
termination. To the extent the Option was not exercisable for vested Shares upon termination
of Service, the Option shall terminate when the Optionee’s Service terminates. Subject to the
foregoing, such provisions shall be determined in the sole discretion of the Board, need not
be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the
reasons for termination of Service.

	7.9	 	No Rights as a Shareholder. An Optionee, or a transferee of an Optionee, shall have no
rights as a shareholder with respect to any Shares covered by the Option until such person
becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise
Price pursuant to the terms of the Option. No adjustments shall be made, except as provided
in Section 9.

	7.10	 	Modification, Extension and Renewal of Options. Within the limitations of the Plan, the
Board may modify, extend or renew outstanding Options or may accept the cancellation of
outstanding Options (to the extent not previously exercised), whether or not granted
hereunder, in return for the grant of new Options for the same or a different number of Shares
and at the same or a different Exercise Price. The foregoing notwithstanding, no modification
of an Option shall, without the consent of the Optionee, impair his or her rights or increase
the Optionee’s obligations under such Option.

SECTION 8. PAYMENT FOR SHARES.

	8.1	 	General. The entire Purchase Price or Exercise Price of Shares issued under the Plan shall
be payable in cash, cash equivalents or one of the other forms provided in this Section 8.

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	8.2	 	Surrender of Stock. To the extent permitted by the Board in its sole discretion, payment may
be made in whole or in part by surrendering, or attesting to ownership of, Shares which have
already been owned by the Optionee; provided, however, that payment may not be made in such
form if such action would cause the Company to recognize any (or additional) compensation
expense with respect to the Option for financial reporting purposes. Such Shares shall be
surrendered to the Company in good form for transfer and shall be valued at their Fair Market
Value on the date of Option exercise.

	8.3	 	Services Rendered. As determined by the Board in its discretion, Shares may be awarded under
the Plan in consideration of past services rendered to the Company, a Parent or Subsidiary.

	8.4	 	Promissory Notes. To the extent permitted by the Board in its sole discretion, payment may
be made in whole or in part with a full-recourse promissory note executed by the Optionee or
Purchaser.  The interest rate payable under the promissory note shall not be less
than the minimum rate required to avoid the imputation of income for U.S. federal income tax
purposes. Shares shall be pledged as security for payment of the principal amount of the
promissory note, and interest thereon; provided that if the Optionee or Purchaser is a Consultant, such note
must be collateralized with such additional security to the extent required by applicable
laws. In no event shall the stock certificate(s) representing such Shares be released to
the Optionee or Purchaser until such note is paid in full. Subject to the foregoing, the
Board shall determine the term, interest rate and other provisions of the note.

	8.5	 	Exercise/Sale. To the extent permitted by the Board in its sole discretion, and if a public
market for the Shares exists, payment may be made in whole or in part by delivery (on a form
prescribed by the Company) of an irrevocable direction to a securities broker approved by the
Company to sell Shares and to deliver all or part of the sale proceeds to the Company in
payment of all or part of the Exercise Price and any withholding taxes.

	8.6	 	Exercise/Pledge. To the extent permitted by the Board in its sole discretion, and if a
public market for the Shares exists, payment may be made in whole or in part by delivery (on a
form prescribed by the Company) of an irrevocable direction to a securities broker or lender
approved by the Company to pledge Shares, as security for a loan, and to deliver all or part
of the loan proceeds to the Company in payment of all or part of the Exercise Price and any
withholding taxes.

	8.7	 	Other Forms of Payment. To the extent permitted by the Board in its sole discretion, payment
may be made in any other form that is consistent with applicable laws, regulations and rules.

SECTION 9. ADJUSTMENT OF SHARES.

	9.1	 	General. In the event of a subdivision of the outstanding Stock, a declaration of a dividend
payable in Shares, a declaration of an extraordinary dividend payable in a form other than
Shares in an amount that has a material effect on the Fair Market Value of the Stock, a
combination or consolidation of the outstanding Stock into a lesser number of Shares, a
recapitalization, a spin-off, a reclassification, or a similar occurrence, the Board shall
make appropriate adjustments to one or more of the following: (i) the number of

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	 	 	Shares available for future awards under Section 5; (ii) the number of Shares covered by each
outstanding Option; (iii) the Exercise Price under each outstanding Option; or (iv) the price
of Shares subject to the Company’s right of repurchase.

	9.2	 	Dissolution or Liquidation. To the extent not previously exercised or settled, Options shall
terminate immediately prior to the dissolution or liquidation of the Company.

	9.3	 	Mergers and Consolidations. In the event that the Company is a party to a merger or other consolidation, or in the
event of a transaction providing for the sale of all or substantially all of the Company’s
stock or assets, outstanding Options shall be subject to the agreement of merger,
consolidation or sale. Such agreement may provide for one or more of the following: (i)
the continuation of the outstanding Options by the Company, if the Company is a surviving
corporation; (ii) the assumption of the Plan and outstanding Options by the surviving
corporation or its parent; (iii) the substitution by the surviving corporation or its parent
of options with substantially the same terms for such outstanding Options; (iv) immediate
exercisability of such outstanding Options followed by the cancellation of such Options; or
(v) settlement of the full value of the outstanding Options (whether or not then
exercisable) in cash or cash equivalents followed by the cancellation of such Options; in
each case without the Optionee’s consent.

	9.4	 	Reservation of Rights. Except as provided in this Section 9, an Optionee or offeree shall
have no rights by reason of any subdivision or consolidation of shares of stock of any class,
the payment of any dividend or any other increase or decrease in the number of shares of stock
of any class. Any issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect, and no adjustment by reason
thereof shall be made with respect to, the number or Exercise Price of Shares subject to an
Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or changes of its
capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or
transfer all or any part of its business or assets.

SECTION 10. REPURCHASE RIGHTS.

	10.1	 	Company’s Right To Repurchase Shares. The Company shall have the right to repurchase Shares
that have been acquired through an award or sale of Shares or exercise of an Option upon
termination of the Purchaser’s or Optionee’s Service if provided in the applicable Restricted
Share Agreement or Stock Option Agreement. Subject to the following restrictions, the Board
in its sole discretion shall determine when the right to repurchase shall lapse as to all or
any portion of the Shares, and may, in its discretion, provide for accelerated vesting in the
event of a Change in Control or other events; provided, however, that the right to repurchase
shall lapse as to all of the Shares issued to an Outside Director for service as an Outside
Director in the event of a Change in Control. The following restrictions shall apply in the
case of a Purchaser or Optionee who is not a Consultant or an officer or director of the
Company, a Parent or Subsidiary:

	 	(a)	 	Repurchase Price. If the Company retains a right to repurchase the
Shares at not less than the Fair Market Value of the Shares on the date that the
Purchaser’s

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	 	 	 	Service terminates, then such repurchase right shall terminate when the
Company’s Stock becomes publicly traded. If the Company retains a right to repurchase
the Shares at the original Purchase Price or Exercise Price, then such repurchase right
shall lapse at the minimum rate of twenty percent (20%) per year
over the five (5) year period starting on the date of the award or sale of Shares or
grant of the Option.
	 
	 	(b)	 	Exercise of Repurchase Right. The Company’s right of repurchase under
this Section 10.1 may be exercised only within ninety (90) days of the date on which
the Purchaser’s or Optionee’s Service terminates or, if the Optionee acquired the
Shares upon exercise of an Option after the date of termination, within ninety (90)
days from the date of exercise.
	 
	 	(c)	 	Payment of Repurchase Price. The Company shall pay the repurchase
price in cash, cash equivalents or for cancellation of indebtedness incurred in
purchasing the Shares.

SECTION 11. WITHHOLDING TAXES.

	11.1	 	General. An Optionee or Purchaser or his or her successor shall pay, or make arrangements
satisfactory to the Board for the satisfaction of, any federal, state, local or foreign
withholding tax obligations that may arise in connection with the Plan. The Company shall not
be required to issue any Shares or make any cash payment under the Plan until such obligations
are satisfied.

	11.2	 	Share Withholding. The Board may permit an Optionee or Purchaser to satisfy all or part of
his or her withholding or income tax obligations by having the Company withhold all or a
portion of any Shares that otherwise would be issued to him or her or by surrendering all or a
portion of any Shares that he or she previously acquired; provided, however, that in no event
may an Optionee or Purchaser surrender Shares in excess of the legally required withholding
amount. Such Shares shall be valued at their Fair Market Value on the date when taxes
otherwise would be withheld in cash. Any payment of taxes by assigning Shares to the Company
may be subject to restrictions, including any restrictions required by rules of any federal or
state regulatory body or other authority.

	11.3	 	Cashless Exercise/Pledge. The Board may provide that if Company Shares are publicly traded
at the time of exercise, arrangements may be made to meet the Optionee’s or Purchaser’s
withholding obligation by cashless exercise or pledge.

	11.4	 	Other Forms of Payment. The Board may permit such other means of tax withholding as it deems
appropriate.

SECTION 12. SECURITIES LAW REQUIREMENTS. 

	12.1	 	General. Shares shall not be issued under the Plan unless the issuance and delivery of such Shares
complies with (or is exempt from) all applicable requirements of law, including (without
limitation) the Securities Act, the rules and regulations promulgated thereunder, state
securities laws and regulations, and the regulations of any stock

-10-

 

	 	 	exchange or other
securities market on which the Company’s securities may then be listed.

	12.2	 	Voting and Dividend Rights. The holders of Shares acquired under the Plan shall have the
same voting, dividend and other rights as the Company’s other shareholders. A Restricted
Share Agreement, however, may require that the holders of Shares invest any cash dividends
received in additional Shares. Such additional Shares shall be subject to the same conditions
and restrictions as the award with respect to which the dividends were paid.

	12.3	 	Financial Reports. At least annually, the Company shall furnish its financial statements,
including a balance sheet regarding the Company’s financial condition and results of
operations, to Optionees, Purchasers and shareholders who have received Shares under the Plan,
unless such persons are key employees whose duties at the Company assure them access to
equivalent information. Financial statements need not be audited.

SECTION 13. NO RETENTION RIGHTS.

          No provision of the Plan, or any right or Option granted under the Plan, shall be construed to
give any Optionee or Purchaser any right to become an Employee, to be treated as an Employee, or to
continue in Service for any period of time, or restrict in any way the rights of the Company (or
Parent or subsidiary to whom the Optionee or Purchaser provides Service), which rights are
expressly reserved, to terminate the Service of such person at any time and for any reason, with or
without cause, without thereby incurring any liability to him or her.

SECTION 14. DURATION AND AMENDMENTS.

	14.1	 	Term of the Plan. The Plan, as set forth herein, shall become effective on the date of its
adoption by the Board, subject to the approval of the Company’s shareholders. In the event
that the shareholders fail to approve the Plan within twelve (12) months after its adoption by
the Board, any grants, exercises or sales that have already occurred under the Plan shall be
rescinded, and no additional grants, exercises or sales shall be made under the Plan after
such date. The Plan shall terminate automatically ten (10) years after its adoption by the
Board. The Plan may be terminated on any earlier date pursuant to Section 14.2 below.

	14.2	 	Right to Amend or Terminate the Plan. The Board may amend, suspend, or terminate the Plan at
any time and for any reason. An amendment of the Plan shall not be subject to the approval of
the Company’s shareholders unless it (i) increases the number of Shares available for issuance
under the Plan (except as provided in Section 9) or (ii) materially changes the class of
persons who are eligible for the grant of Options or the award or sale of Shares. At least two-thirds
(2/3) of the Company’s Shares entitled to vote must affirmatively approve an increase in the
number of Shares available for issuance if the total number of Shares that may be issued
upon the exercise of all outstanding Options and the total number of Shares provided under
any stock bonus or similar plan of the Company exceed thirty percent (30%) of all
outstanding Shares of the Company.

	14.3	 	Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan after
the termination thereof, except upon exercise of an Option granted prior to such

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	 	 	termination.
The termination of the Plan, or any amendment thereof, shall not adversely affect any Shares
previously issued or any Option previously granted under the Plan without the holder’s
consent.

SECTION 15. EXECUTION.

     To record the adoption of the Plan by the Board on February 16, 2006, effective on such date,
the Company has caused its authorized officer to execute the same.

	 	 	 	 	 
	 	900Seconds, Inc.

 

 	 
	 	By /s/ Mike Speiser
 	 
	 	 	 
	 	Its President & CEO 	 
	 

-12-exv10w1

 

Exhibit 10.1

January 17, 2007

Dr. Hamza Yilmaz

Re: Employment Terms

Dear Hamza:

Volterra (the “Company”) is pleased to offer you the position of Senior Vice President, Product
Development, Engineering and Manufacturing Operations on the following terms.

You will be responsible for managing the Company’s Product Development, Engineering and
Manufacturing Operations and relevant functions, etc. and will report to Jeff Staszak, CEO of the
Company. You will work at 3839 Spinnaker Ct., Fremont, CA 94538. Of course, the Company may change
your work location from time to time in its discretion.

Your compensation will be $8,653.85 bi-weekly ($225,000.00 per year), less payroll deductions and
all required withholdings. You will be paid bi-weekly and you will be eligible for the following
standard Company benefits: Medical, Dental, Vision, Life/ADD, LTD, 401k, ESPP (Employee Stock
Purchase Plan), PTO (Paid Time-Off) and holidays. Details about these benefits are provided in the
Employee Handbook and Summary Plan Descriptions, available for your review. The Company may change
compensation and benefits from time to time in its discretion. In addition to the standard company
benefits, you will also be eligible to participate in the Annual Management Bonus Program.

Subject to approval by the Company’s Board of Directors (the “Board”), and pursuant to the
Company’s 2004 Equity Incentive Plan (the “Plan”), the Company shall grant you an option to
purchase 150,000 shares of the Company’s common stock at the fair market value as determined by the
Board in accordance with its policies and procedures regarding option grants (the “Option”). The
Option grant shall be effective, and exercise price shall be calculated, on the first day of the
month following your start date (the “Grant Date”), and shall be subject to the terms and
conditions of the Plan and your grant agreement. Your grant agreement will include a four year
vesting schedule, under which 25 percent of your shares will vest after twelve months of Grant Date
(the “Vesting Anniversary Date”), with the remaining shares vesting quarterly thereafter, until
either the Option is fully vested or your employment ends, whichever occurs first.
Notwithstanding the foregoing, in the event your employment is terminated by the Company without
“Cause” (as defined below) prior to the Vesting Anniversary Date, the vesting of a total of 37,500
shares underlying your Option shall accelerate in full and become fully exercisable. In the event
your employment is terminated by the Company without Cause on or after the Vesting Anniversary
Date, in addition to the 25 percent of your shares that vested on the Vesting Anniversary Date, in
lieu of the quarterly vesting described above, the vesting of your Option shall be calculated on a
monthly basis (at a rate of an additional 3,125 shares for each full month of employment following
the Vesting Anniversary Date).

On your start date, the Company will pay you a sign-on bonus amount of $50,000.00, less required
payroll deductions and withholdings (the “Initial Bonus”). This bonus will not be considered
earned until you have successfully completed one full year of employment with the Company. If
within the first year of your employment, you resign your employment, or if the Company terminates
your employment for Cause (as defined herein) during your first year, you agree to repay the total
net amount of the Initial Bonus. If the Company terminates your employment without Cause during
your first full year of employment, you shall not be required to repay the Initial Bonus. For
purposes of this letter, “Cause” shall mean a termination by the Company for any one or more of the
following reasons: (i) embezzlement, misappropriation of corporate funds, or other acts of
dishonesty; (ii) the conviction, plea of guilty, or nolo contendere to any felony or of any
misdemeanor involving moral turpitude; (iii) engagement in any activity that you know or should
know could materially harm the business or reputation of the Company; (iv) material violation of
any statutory, contractual, or common law duty or obligation owed by you to the

 

 

Company; (v) material breach of the Proprietary Information Agreement; or (vi) repeated failure to
substantially perform your assigned duties or responsibilities. This bonus does not affect the
at-will nature of your employment.

Notwithstanding the at-will nature of your employment, as described below, if the Company
terminates your employment without Cause (as defined above), you will be entitled to receive a lump
sum payment equal to six (6) months of your base salary, less applicable taxes and required payroll
deductions and withholdings, contingent upon your execution of an agreement in a form satisfactory
to the Company containing a full general release of any and all claims and potential claims against
the Company and its affiliates and agents. Such payment shall be made within 30 days after the
effective date of the release agreement.

As a Company employee, you will be expected to abide by Company policies and procedures, and
acknowledge in writing that you have read and will comply with the Company’s Employee Handbook. As
a condition of employment, you must read, sign and comply with the attached Employee Confidential
Information and Inventions Assignment Agreement which prohibits unauthorized use or disclosure of
Company proprietary information.

In your work for the Company, you will be expected not to use or disclose any confidential
information, including trade secrets, of any former employer or other person to whom you have an
obligation of confidentiality. Rather, you will be expected to use only that information which is
generally known and used by persons with training and experience comparable to your own, which is
common knowledge in the industry or otherwise legally in the public domain, or which is otherwise
provided or developed by the Company. You agree that you will not bring onto Company premises or
use in your work for the Company any unpublished documents or property belonging to any former
employer or third party that you are not authorized to use and disclose. You represent further
that you have disclosed to the Company any contract you have signed that may restrict your
activities on behalf of the Company. By accepting employment with the Company, you are
representing that you will be able to perform your job duties within these guidelines.

Normal business hours are from 8:00 a.m. to 5:00 p.m., Monday through Friday. As an exempt
salaried employee, you will be expected to work additional hours as required by the nature of your
work assignments.

Your employment relationship is at will. You may terminate your employment with Company at any
time and for any reason whatsoever simply by notifying the Company. Likewise, Company may
terminate your employment at any time, with or without cause or advance notice. Your employment
at-will status can only be modified in a written agreement signed by you and by an officer of the
Company. As required by law, this offer is subject to satisfactory proof of your right to work in
the United States.

This letter, together with your Employee Confidential Information and Inventions Assignment
Agreement, forms the complete and exclusive statement of your employment agreement with the
Company. The terms in this letter supersede any other agreements or promises made to you by anyone,
whether oral or written. This letter agreement cannot be changed except in a written agreement
signed by you and a duly authorized officer of the Company.

Please sign and date this letter and the enclosed Proprietary Information and Inventions Assignment
Agreement, and return them to me by January 26, 2007, if you wish to accept employment at Volterra
under the terms described above. If you accept our offer, we would like you to start during the
week of February 19th, 2007 (tentatively).

Note: This offer will be contingent upon a successful completion of the mandatory background check.
Please feel free to contact us in case of any questions on the process. Thank you.

We look forward to your favorable reply and to a productive and enjoyable work relationship.

Sincerely,

	 	 	 
	/s/ Jeff Staszak
 

	 	  
	Jeff Staszak
	 	 
	CEO, Volterra Semiconductor Corporation
	 	 

 

 

I accept your offer and will begin employment on last week of February 2007.

Accepted:

	 	 	 	 	 
	/s/ Hamza Yilmaz
 

	 	January 20, 2007
 

	 	  
	Hamza Yilmaz

	 	Date	 	 

Attachment: Proprietary Information and Inventions Assignment Agreement

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