Document:

exv10w1

 

Exhibit 10.1

EXECUTION COPY

INVESTOR RIGHTS AGREEMENT

     INVESTOR RIGHTS AGREEMENT (the “Agreement”) is entered into as of the 22nd
day of February 2005, by and among BuyDomains Holdings, Inc., a Delaware corporation (the
“Company”), the holders of shares of Series A Preferred Stock, par value $0.001 per share
(the “Series A Preferred Stock”), of the Company listed on the Schedule of Holders annexed
hereto (collectively the “Series A Investors”), and the holders of shares of Series Z
Preferred Stock, par value $0.001 per share (the “Series Z Preferred Stock”), of the
Company listed on the Schedule of Holders annexed hereto (collectively, the “Series Z
Investors” and together with the Series A Investors, the “Investors”).

     WHEREAS, on the date hereof, the Series A Investors are purchasing from the Company shares of
its Series A Preferred Stock pursuant to the terms of a certain Series A Preferred Stock Purchase
Agreement (the “Purchase Agreement”), dated as of the date hereof, by and among the Company
and the Series A Investors; and

     WHEREAS, on the date hereof, the Series Z Investor is contributing its assets to the Company
in exchange for, among other things, shares of Series Z Preferred Stock pursuant to the terms of a
certain Contribution and Merger Agreement (the “Contribution and Merger Agreement”), dated
as of the date hereof, by and among the Company, the Series Z Investor and the other parties
thereto; and

     WHEREAS, one of the conditions to the obligations of the Series A Investors under the Purchase
Agreement and the Series Z Investors under the Contribution and Merger Agreement is the execution
of this Agreement, and the Company is willing to enter into this Agreement and be bound by the
provisions hereof.

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

     1. Certain Definitions. As used in this Agreement, the following terms shall have the
following respective meanings:

     “Board of Directors” shall mean the board of directors of the Company as constituted
from time to time.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     “Commission” shall mean the Securities and Exchange Commission, or any other federal
agency at the time administering the Securities Act.

     “Computer Program(s)” means (i) any and all computer programs (consisting of sets of
statements or instructions to be used directly or indirectly in a computer in order to bring about
a certain result) and portions thereof, and (ii) all associated data and compilations of data,
regardless of their form or embodiment. “Computer Programs” shall include, without limitation,

 

 

Investor Rights Agreement — Page 2

all source code, object code, natural language code, all versions, all screen displays and
designs, all component modules, all descriptions, flow-charts and other work product used to
design, plan, organize and develop any of the foregoing, and all documentation, including without
limitation user manuals and training materials, relating to any of the foregoing.

     “Conversion Shares” shall mean shares of Common Stock issued or issuable upon
conversion of the Preferred Stock then held by the Investors.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any
similar federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time.

     “Indebtedness” shall mean all obligations, contingent and otherwise, which should, in
accordance with generally accepted accounting principles, be classified upon the obligor’s balance
sheet (or the notes thereto) as liabilities, but in any event including liabilities secured by any
mortgage on property owned or acquired subject to such mortgage, whether or not the liability
secured thereby shall have been assumed, and also including (i) all guaranties, endorsements and
other contingent obligations, in respect of Indebtedness of others, whether or not the same are or
should be so reflected in said balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business and (ii) the present value of any lease payments due under leases
required to be capitalized in accordance with applicable Statements of Financial Accounting
Standards, determined by discounting all such payments at the interest rate determined in
accordance with applicable Statements of Financial Accounting Standards.

     “Initial Public Offering” shall mean the Company’s first firm commitment underwritten
public offering pursuant to an effective registration statement under the Securities Act on Form
S-1 (or successor form).

     “Intellectual Property Right(s)” means any and all of the following in any and all
legal jurisdictions around the world: (i) patents, patent applications, patent disclosures and
all related continuations, continuations-in-part, divisionals, reissues, re-examinations and
renewals (together “Patents”), (ii) trademarks, service marks, trade dress, logos, trade names,
service names, domain names and corporate names, and registrations and applications for
registration thereof (together “Trademarks”), (iii) copyrights, and registrations and applications
for registration thereof, (iv) mask works, and registrations and applications for registration
thereof, (v) trade secrets and confidential business information, including without limitation,
know-how, manufacturing and product processes and techniques, biomaterials, research and
development information, financial, marketing and business data, pricing and cost information,
technical data, business and marketing plans, and customer and supplier lists and information
(together “Trade Secrets”), (vi) Computer Programs, (vii) other proprietary rights relating to any
of the foregoing (including without limitation associated goodwill and remedies against
infringements thereof and rights of protection of an interest therein under the laws of all
jurisdictions) and (viii) copies and tangible embodiments thereof.

 

 

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     “Key Employee” means and includes the Company’s President, chief executive officer,
chief financial officer, chief operating officer, chief technology officer and vice presidents of
operations, research, development, sales and marketing, or any other individual who performs a
significant role in the operations of the Company as may be reasonably designated by the Board of
Directors of the Company.

     “Person or Persons” shall mean an individual, corporation, partnership, joint venture,
trust, or unincorporated organization, or a government or any agency or political subdivision
thereof.

     “Preferred Stock” shall mean the Series A Preferred Stock and the Series Z Preferred
Stock, collectively.

     “Qualified Public Offering” shall mean the completion of a fully underwritten, firm
commitment public offering pursuant to an effective registration under the Securities Act covering
the offering or sale by the Company of its Common Stock in which (x) the gross proceeds received by
the Company shall be at least $75 million, and (y) the price paid by the public for such shares
shall be at least $30.00 per share (as appropriately adjusted for any stock split, combination,
reorganization, recapitalization, stock dividend, or similar event).

     “Registration Expenses” shall mean the expenses so described in Section 6.

     “Reserved Employee Shares” shall mean shares of Common Stock not to exceed an
aggregate number of shares equal to 915,000 (appropriately adjusted to reflect any stock split,
stock dividend, combination, reorganization, recapitalization, reclassification or other similar
event involving a change in the capitalization of the Company) reserved by the Company from time to
time for (i) the sale of shares of Common Stock to employees, consultants or non-employee directors
of the Company or (ii) the issuance and/or exercise of options to purchase Common Stock granted to
employees, consultants or non-employee directors of the Company, in each case pursuant to any stock
plan approved by the Board of Directors. The foregoing number of Reserved Employee Shares may be
increased by vote or written consent of at least seventy percent (70%) of the then outstanding
shares of Series A Preferred Stock.

     “Restricted Stock” shall mean the Conversion Shares, excluding Conversion Shares which
(a) have been registered under the Securities Act pursuant to an effective registration statement
filed thereunder and disposed of in accordance with the registration statement covering them or
(b) have been sold on the open market in accordance with Rule 144 under the Securities Act.

     “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar
federal statute, and the rules and regulations of the Commission thereunder, all as the same shall
be in effect at the time.

     “Selling Expenses” shall mean the expenses so described in Section 6.

 

 

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     “Subsidiary” or “Subsidiaries” shall mean any corporation or trust of which
the Company and/or any of its other Subsidiaries (as herein defined) directly or indirectly owns at
the time outstanding shares of every class of such corporation or trust other than directors’
qualifying shares comprising at least fifty percent (50%) of the voting power of such corporation
or trust.

     2. Required Registration.

          (a) At any time after the earlier of (i) three (3) years from the date hereof and (ii) six (6)
months after the Company’s Initial Public Offering, the holders of more than seventy percent (70%)
of the then outstanding shares of Restricted Stock may request the Company to register under the
Securities Act all or any portion of the shares of Restricted Stock held by such requesting holder
or holders having an aggregate offering price (based on the market price or fair value at the time
of such request) of at least $15,000,000 for sale in the manner specified in such notice. The only
securities which the Company shall be required to register pursuant hereto shall be shares of
Common Stock; provided, however, that, in any underwritten public offering contemplated by this
Section 2 or Sections 3 and 4, the holders of the Preferred Stock shall be entitled to sell such
Preferred Stock to the underwriters for conversion and sale of the shares of Common Stock issued
upon conversion thereof.

          (b) Following receipt of any notice under this Section 2, the Company shall promptly notify
all holders of Restricted Stock from whom notice has not been received and such holders shall then
be entitled within thirty (30) days thereafter to request the Company to include in the requested
registration all or any portion of their shares of Restricted Stock; provided, however, that if in
the opinion of the managing underwriter the inclusion of all of the Restricted Stock requested to
be registered under this Section 2 would adversely affect the marketing of such shares, shares to
be sold by the holders of Restricted Stock, if any, shall be excluded only after any shares to be
sold by the Company have been excluded, in such manner that the shares to be sold shall be
allocated among the selling holders pro rata based on their ownership of Restricted Stock. The
Company shall use its best efforts to register under the Securities Act, for public sale in
accordance with the method of disposition described in paragraph (a) above, the number of shares of
Restricted Stock specified in such notice (and in all notices received by the Company from other
holders within thirty (30) days after the giving of such notice by the Company), subject to the
underwriters right to scale back as above. The Company’s obligation to register the shares of
Restricted Stock shall be deemed satisfied only when a registration statement covering all shares
of Restricted Stock specified in notices received as aforesaid for sale in accordance with the
method of disposition specified by the requesting holders shall have become effective and, if such
method of disposition is a firm commitment underwritten public offering, all such shares shall have
been sold pursuant thereto (not including shares eligible for sale pursuant to the underwriters’
over-allotment option). Notwithstanding anything to the contrary contained herein, no request may
be made under this Section 2 after the effective date of a registration statement filed by the
Company and prior to the later to occur of the completion of the period of distribution for such
offering or 90 days after the effective date of such registration statement.

          (c) The Company shall be entitled to include in any registration statement referred to in this
Section 2 shares of Common Stock to be sold by the Company for its own

 

 

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account and for the account of other holders of Stock, except as and to the extent that, in the
opinion of the managing underwriter, such inclusion would adversely affect the marketing of the
Restricted Stock to be sold. Except for registration statements on Form S-4, S-8 or any successor
forms thereto, the Company will not file with the Commission any other registration statement with
respect to its Common Stock, whether for its own account or that of other stockholders, from the
date of receipt of a notice from requesting holders requesting sale pursuant to an underwritten
offering pursuant to this Section 2 until the completion of the period of distribution of the
registration contemplated thereby.

          (d) In connection with any underwritten public offering pursuant to this Section 2 or Section
4, holders of a majority of the outstanding shares of Restricted Stock requesting the registration
of shares may designate the managing underwriter of such offering, subject to the approval of the
Company which approval shall not be unreasonably withheld, delayed or conditioned. The right of
any holder to include its Restricted Stock in such registration statement pursuant to Section 2 or
Section 3 as the case may be, shall be conditioned upon such holder’s participation in such
underwriting on the terms set forth herein.

     3. Incidental Registration. If the Company at any time (other than pursuant to
Section 2 or Section 4) proposes to register any of its securities under the Securities Act for
sale to the public, whether for its own account or for the account of other security holders or
both (except with respect to registration statements on Forms S-4, S-8 or any successor forms
thereto or another form not available for registering the Restricted Stock for sale to the public),
each such time it will give written notice to all holders of outstanding Restricted Stock of its
intention so to do. Upon the written request of any such holder, received by the Company within
30 days after the giving of any such notice by the Company, to register any of its Restricted
Stock, the Company will use its best efforts to cause the Restricted Stock as to which registration
shall have been so requested to be included in the securities to be covered by the registration
statement proposed to be filed by the Company, all to the extent requisite to permit the sale or
other disposition by the holder of such Restricted Stock so registered. In the event that any
registration pursuant to this Section 3 shall be, in whole or in part, an underwritten public
offering of Common Stock, the number of shares of Restricted Stock to be included in such an
underwriting may be reduced pro rata among the other requesting holders based upon the number of
shares of Restricted Stock owned by such holders if and to the extent that the managing underwriter
shall be of the opinion that such inclusion would adversely affect the marketing of the securities
to be sold by the Company therein, provided, that such number of shares of Restricted Stock shall
not be reduced if any shares are to be included in such underwriting for the account of any person
other than the Investors (including any of their respective successors and assigns), and provided,
further, however, that in no event may less than thirty-five percent (35%) of the total number of
shares of Common Stock to be included in such underwriting be made available for shares of
Restricted Stock unless the managing underwriter shall in good faith advise the holders proposing
to distribute their securities through such underwriting that such level of participation would, in
its opinion, materially adversely affect the offering price or its ability to complete the offering
and shall specify the number of shares of Restricted Stock which, in its opinion, can be included
in the registration and underwriting without such an effect.

 

 

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     4. Registration on Form S-3. If at any time (i) a holder or holders of Restricted
Stock request that the Company file a registration statement on Form S-3 or any successor thereto
for a public offering of all or any portion of the shares of Restricted Stock held by such
requesting holder or holders having an aggregate purchase price (based on the market price or fair
value at the time of such request) of at least $1,000,000, and (ii) the Company is a registrant
entitled to use Form S-3 or any successor thereto to register such shares, then the Company shall
use its best efforts to register under the Securities Act on Form S-3 or any successor thereto, for
public sale in accordance with the method of disposition specified in such notice, the number of
shares of Restricted Stock specified in such notice. Whenever the Company is required by this
Section 4 to use its best efforts to effect the registration of Restricted Stock, each of the
procedures and requirements of Section 2 (including but not limited to the requirement that the
Company notify all holders of Restricted Stock from whom notice has not been received and provide
them with the opportunity to participate in the offering) shall apply to such registration,
provided, however, that the requirements contained in the first sentence of Section 2(a) shall not
apply to any registration on Form S-3 which may be requested and obtained under this Section 4.
Notwithstanding anything to the contrary in this Section 4, the Company shall not be required to
effect more than one (1) registration pursuant to this Section 4 in any six-month period.

     5. Registration Procedures. If and whenever the Company is required by the provisions
of Sections 2, 3 or 4 to use its best efforts to effect the registration of any shares of
Restricted Stock under the Securities Act, the Company will, as expeditiously as possible:

          (a) prepare and file with the Commission a registration statement (which, in the case of an
underwritten public offering pursuant to Section 2, shall be on Form S-1 or other form of general
applicability satisfactory to the managing underwriter selected as therein provided) with respect
to such securities and use its best efforts to cause such registration statement to become and
remain effective for the period of the distribution contemplated thereby (determined as hereinafter
provided);

          (b) prepare and file with the Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for the period specified in paragraph (a) above and comply with
the provisions of the Securities Act with respect to the disposition of all Restricted Stock
covered by such registration statement in accordance with the sellers’ intended method of
disposition set forth in such registration statement for such period;

          (c) furnish to each seller of Restricted Stock and to each underwriter such number of copies
of the registration statement and the prospectus included therein (including each preliminary
prospectus) as such persons reasonably may request in order to facilitate the public sale or other
disposition of the Restricted Stock covered by such registration statement;

          (d) use its best efforts to register or qualify the Restricted Stock covered by such
registration statement under the securities or “blue sky” laws of such jurisdictions as the sellers
of Restricted Stock or, in the case of an underwritten public offering, the managing underwriter
reasonably shall request, provided, however, that the Company shall not for any such purpose be
required to qualify generally to transact business as a foreign corporation in any

 

 

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jurisdiction where it is not so qualified or to consent to general service of process in any such
jurisdiction;

          (e) use its best efforts to list the Restricted Stock covered by such registration statement
with any securities exchange on which the Common Stock of the Company is then listed;

          (f) provide a transfer agent and registrar for all such Restricted Stock, not later than the
effective date of such registration statement;

          (g) immediately notify each seller of Restricted Stock and each underwriter under such
registration statement, at any time when a prospectus relating thereto is required to be delivered
under the Securities Act, of the happening of any event of which the Company has knowledge as a
result of which the prospectus contained in such registration statement, as then in effect,
includes an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing;

          (h) if the offering is underwritten and at the request of any seller of Restricted Stock, use
its best efforts to furnish on the date that Restricted Stock is delivered to the underwriters for
sale pursuant to such registration: (i) an opinion dated such date of counsel representing the
Company for the purposes of such registration, addressed to the underwriters and to such seller of
Restricted Stock, in form and substance as is customarily given to underwriters in an underwritten
public offering and (ii) a letter dated such date from the independent public accountants retained
by the Company, addressed to the underwriters and to such seller of Restricted Stock, in form and
substance as is customarily given to underwriters in an underwritten public offering;

          (i) make available for inspection by each seller of Restricted Stock, any underwriter
participating in any distribution pursuant to such registration statement, and any attorney,
accountant or other agent retained by such seller or underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the Company’s officers,
directors and employees to supply all information reasonably requested by any such seller,
underwriter, attorney, accountant or agent in connection with such registration statement;

          (j) advise each selling holder of Restricted Stock, promptly after it shall receive notice or
obtain knowledge thereof, of the issuance of any stop order by the Commission suspending the
effectiveness of such registration statement or the initiation or threatening of any proceeding for
such purpose and promptly use all reasonable efforts to prevent the issuance of any stop order or
to obtain its withdrawal if such stop order should be issued;

          (k) cooperate with the selling holders of Restricted Stock and the managing underwriters, if
any, to facilitate the timely preparation and delivery of certificates representing Restricted
Stock to be sold, such certificates to be in such denominations and registered in such names as
such holders or the managing underwriters may request at least two business days prior to any sale
of Restricted Stock; and

 

 

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          (l) permit any holder of Restricted Stock which holder, in the sole and exclusive judgment,
exercised in good faith, of such holder, might be deemed to be a controlling person of the Company,
to participate in good faith in the preparation of such registration or comparable statement and to
require the insertion therein of material, furnished to the Company in writing, which in the
reasonable judgment of such holder and its counsel should be included, subject to review by the
Company and its counsel after consultation with such holder.

     For purposes of Section 5(a) and 5(b) and of Section 2(c), the period of distribution of
Restricted Stock in a firm commitment underwritten public offering shall be deemed to extend until
each underwriter has completed the distribution of all securities purchased by it, and the period
of distribution of Restricted Stock in any other registration shall be deemed to extend until the
earlier of (i) the sale of all Restricted Stock covered thereby and (ii) 180 days after the
effective date thereof.

     In connection with each registration hereunder, the sellers of Restricted Stock will furnish
to the Company in writing such information with respect to themselves and the proposed distribution
by them as reasonably shall be necessary in order to assure compliance with federal and applicable
state securities laws.

     In connection with each registration pursuant to Sections 2, 3 or 4 covering an underwritten
public offering, the Company and each selling holder of Restricted Stock agree to enter into a
written agreement with the managing underwriter selected in the manner herein provided in such form
and containing such provisions as are customary in the securities business for such an arrangement
between such underwriter and companies of the Company’s size and investment stature.

     6. Expenses.

          (a) All expenses incurred by the Company in complying with Sections 2, 3 and 4, including,
without limitation, all registration and filing fees, printing expenses, fees and disbursements of
counsel and independent public accountants for the Company, fees and expenses (including counsel
fees) incurred in connection with complying with state securities or “blue sky” laws, fees of the
National Association of Securities Dealers, Inc., transfer taxes, fees of transfer agents and
registrars, costs of insurance, and fees and disbursements of one counsel for the sellers of
Restricted Stock, but excluding any Selling Expenses, are called “Registration Expenses”.
All underwriting discounts and selling commissions applicable to the sale of Restricted Stock are
called “Selling Expenses”.

          (b) The Company will pay all Registration Expenses in connection with an aggregate of three
(3) registration statements under Sections 2, 3 or 4; provided, however, if any registration
requested pursuant to Section 2 or 4 is withdrawn at the request of the holders initiating such
registration, such holders may elect to (i) have the Company pay the Registration Expenses for such
withdrawn registration but such withdrawn registration shall count as a completed registration
toward the Company’s obligation to pay Registration Expenses pursuant to this Section 5(b) or
(ii) pay the Registration Expenses for such withdrawn registration but such

 

 

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withdrawn registration shall not count as a completed registration toward the Company’s obligation
to pay Registration Expenses under this Section 5(b); provided further, however, if a registration
is withdrawn after the holders of Restricted Stock initiating such registration have learned of an
adverse change in the financial condition or prospects of the Company or have learned of other
adverse information relating to the Company, in either case not known to such holders at the time
of their request for such registration, then all Registration Expenses related to such withdrawn
registration shall be borne by the Company and such withdrawn registration shall not be counted as
a completed registration under for purposes of this Section 5(b). All Selling Expenses in
connection with each registration statement under Section 2, 3 or 4 shall be borne by the
participating sellers in proportion to the number of shares sold by each, or by such participating
sellers other than the Company (except to the extent the Company shall be a seller) as they may
agree.

     7. Indemnification and Contribution.

          (a) In the event of a registration of any of the Restricted Stock under the Securities Act
pursuant to Sections 2, 3 or 4, the Company will indemnify and hold harmless each seller of such
Restricted Stock thereunder, each underwriter of such Restricted Stock thereunder and each other
person, if any, who controls such seller or underwriter within the meaning of the Securities Act,
against any losses, claims, damages or liabilities, joint or several, to which such seller,
underwriter or controlling person may become subject under the Securities Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact contained in any
registration statement under which such Restricted Stock was registered under the Securities Act
pursuant to Sections 2, 3 or 4, any preliminary prospectus or final prospectus contained therein,
or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse each such seller, each such underwriter and
each such controlling person for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage, liability or action,
provided, however, that the Company will not be liable in any such case if and to the extent that
any such loss, claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission so made in conformity with information
furnished by any such seller, any such underwriter or any such controlling person in writing
specifically for use in such registration statement or prospectus.

          (b) In the event of a registration of any of the Restricted Stock under the Securities Act
pursuant to Sections 2, 3 or 4, each seller of such Restricted Stock thereunder, severally and not
jointly, will indemnify and hold harmless the Company, each person, if any, who controls the
Company within the meaning of the Securities Act, each officer of the Company who signs the
registration statement, each director of the Company, each underwriter and each person who controls
any underwriter within the meaning of the Securities Act, against all losses, claims, damages or
liabilities, joint or several, to which the Company or such officer, director, underwriter or
controlling person may become subject under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof)

 

 

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arise out of or are based upon any untrue statement or alleged untrue statement of any material
fact contained in the registration statement under which such Restricted Stock was registered under
the Securities Act pursuant to Sections 2, 3 or 4, any preliminary prospectus or final prospectus
contained therein, or any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the Company and each
such officer, director, underwriter and controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action, provided, however, that such seller will be liable hereunder in any
such case if and only to the extent that any such loss, claim, damage or liability arises out of or
is based upon an untrue statement or alleged untrue statement or omission or alleged omission made
in reliance upon and in conformity with information pertaining to such seller, as such, furnished
in writing to the Company by such seller specifically for use in such registration statement or
prospectus, and provided, further, however, that the liability of each seller hereunder shall be
limited to the proportion of any such loss, claim, damage, liability or expense which is equal to
the proportion that the public offering price of the shares sold by such seller under such
registration statement bears to the total public offering price of all securities sold thereunder,
but not in any event to exceed the net proceeds received by such seller from the sale of Restricted
Stock covered by such registration statement.

          (c) No indemnifying party, in the defense of any such claim or action, shall, except with the
consent of each indemnified party (which consent shall not be unreasonably withheld or delayed),
consent to entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect to such claim or action, and the indemnification agreements
contained in Sections 7(a) and 7(b) shall not apply to any settlement entered into in violation of
this sentence. Each indemnified party shall furnish such information regarding itself or the claim
in question as an indemnifying party may reasonably request in writing and as shall be reasonably
required in connection with defense of such claim and litigation resulting therefrom.

          (d) Promptly after receipt by an indemnified party hereunder of notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party hereunder, notify the indemnifying party in writing thereof, but the failure to
so notify the indemnifying party shall not relieve it from any liability which it may have to such
indemnified party other than under this Section 7 and shall only relieve it from any liability
which it may have to such indemnified party under this Section 7 if and to the extent the
indemnifying party is prejudiced by such failure. In case any such action shall be brought against
any indemnified party and it shall notify the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume
and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party,
and, after notice from the indemnifying party to such indemnified party of its election so to
assume and undertake the defense thereof, the indemnifying party shall not be liable to such
indemnified party under this Section 7 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation and of liaison with counsel so selected, provided, however, that, if the

 

 

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defendants in any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be reasonable defenses available
to it which are different from or additional to those available to the indemnifying party or if the
interests of the indemnified party reasonably may be deemed to conflict with the interests of the
indemnifying party, the indemnified party shall have the right to select a separate counsel and to
assume such legal defenses and otherwise to participate in the defense of such action, with the
expenses and fees of such separate counsel and other expenses related to such participation to be
reimbursed by the indemnifying party as incurred.

          (e) In order to provide for just and equitable contribution to joint liability under the
Securities Act in any case in which either (i) any holder of Restricted Stock exercising rights
under this Agreement, or any controlling person of any such holder, makes a claim for
indemnification pursuant to this Section 7 but it is judicially determined (by the entry of a final
judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that this Section 7 provides for indemnification in such case, or
(ii) contribution under the Securities Act may be required on the part of any such selling holder
or any such controlling person in circumstances for which indemnification is provided under this
Section 7; then, and in each such case, the Company and such holder will contribute to the
aggregate losses, claims, damages or liabilities to which they may be subject (after contribution
from others) in such proportion so that such holder is responsible for the portion represented by
the percentage that the public offering price of its Restricted Stock offered by the registration
statement bears to the public offering price of all securities offered by such registration
statement, and the Company is responsible for the remaining portion; provided, however, that, in
any such case, (A) no such holder will be required to contribute any amount in excess of the net
proceeds received by such holder from the sale of Restricted Stock covered by such registration
statement; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity
who was not guilty of such fraudulent misrepresentation.

     8. Changes in Common Stock or Preferred Stock. If, and as often as, there is any
change in the Common Stock or the Preferred Stock by way of a stock split, stock dividend,
combination or reclassification, or through a merger, consolidation, reorganization or
recapitalization, or by any other means, appropriate adjustment shall be made in the provisions
hereof so that the rights and privileges granted hereby shall continue with respect to the Common
Stock and the Preferred Stock as so changed.

     9. Rule 144 Reporting; Trading. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit the sale of the
Restricted Stock to the public without registration, at all times after ninety (90) days after any
registration statement covering a public offering of securities of the Company under the Securities
Act shall have become effective, the Company agrees to:

          (a) make and keep public information available, as those terms are understood and defined in
Rule 144 under the Securities Act;

 

 

Investor Rights Agreement — Page 12

          (b) use its best efforts to file with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act; and

          (c) furnish to each holder of Restricted Stock forthwith upon request a written statement by
the Company as to its compliance with the reporting requirements of such Rule 144 and of the
Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the
Company, and such other reports and documents so filed by the Company as such holder may reasonably
request in availing itself of any rule or regulation of the Commission allowing such holder to sell
any Restricted Stock without registration.

In addition, the Company shall ensure that, at all times after any registration statement covering
a public offering of securities of the Company under the Securities Act shall have become
effective, its insider trading policy shall provide that the members of the Board of Directors of
the Company may implement a trading program under Rule 10b5-1 of the Exchange Act.

     10. Mergers, Etc. The Company shall not, directly or indirectly, enter into any
merger, consolidation or reorganization in which the Company shall not be the surviving company
unless the proposed surviving corporation shall, prior to such merger, consolidation or
reorganization, agree in writing to assume the obligations of the Company under this Agreement.

     11. Right of First Refusal by Investors on Future Issuances by the Company.

          (a) Right of First Refusal. The Company shall not issue, sell or exchange, agree or
obligate itself to issue, sell or exchange, or reserve or set aside for issuance, sale or exchange,
any (i) shares of Common Stock, (ii) any other equity security of the Company, including, without
limitation, Preferred Stock, (iii) any debt security of the Company which by its terms is
convertible into or exchangeable for any equity security of the Company, (iv) any security of the
Company that is a combination of debt and equity, or (v) any option, warrant or other right to
subscribe for, purchase or otherwise acquire any such equity security or any such debt security of
the Company, unless in each case the Company shall have first offered to sell such securities (the
“Offered Securities”) to the Investors (each an “Offeree” and collectively, the
“Offerees”) as follows: each Offeree shall have the right to purchase (x) that number of
the Offered Securities as shall be equal to the aggregate Offered Securities multiplied by a
fraction, the numerator of which is the number of shares of capital stock of the Company then owned
by such Offeree (calculated on an as-converted basis with respect to any issued and outstanding
convertible securities) and the denominator of which is the aggregate number of shares of capital
stock then issued and outstanding (calculated on an as-converted basis with respect to any issued
and outstanding convertible securities) (the “Basic Amount”), and (y) such additional
portion of the Offered Securities as such Offeree shall indicate it will purchase should the other
Offerees subscribe for less than their Basic Amounts (the “Undersubscription Amount”), at a
price and on such other terms as shall have been specified by the Company in writing delivered to
such Offeree (the “Offer”), which Offer by its terms shall remain open and irrevocable for
a period of 30 days from receipt of the offer. Each Offeree shall have the right to transfer its
right to purchase Offered Securities or part thereof to any person (i) who is an Investor, (ii) who
is an “affiliated person”, as that term is defined in the Investment Company Act of 1940, as
amended,

 

 

Investor Rights Agreement — Page 13

of an Investor, (iii) who is a partner or member of an Investor, or (iv) who acquires at least
500,000 of the outstanding shares of Preferred Stock (as adjusted for stock splits, stock
dividends, reclassifications, recapitalizations or other similar events).

          (b) Notice of Acceptance. Notice of each Offeree’s intention to accept, in whole or
in part, any Offer made pursuant to Section 11(a) shall be evidenced by a writing signed by such
Offeree and delivered to the Company prior to the end of the 30 day period of such offer, setting
forth such of the Offeree’s Basic Amount as such Offeree elects to purchase and, if such Offeree
shall elect to purchase all of its Basic Amount, such Undersubscription Amount as such Offeree
shall elect to purchase (the “Notice of Acceptance”). If the Basic Amounts subscribed for
by all Offerees are less than the total Offered Securities, then each Offeree who has set forth
Undersubscription Amounts in its Notice of Acceptance shall be entitled to purchase, in addition to
the Basic Amounts subscribed for, all Undersubscription Amounts it has subscribed for; provided,
however, that should the Undersubscription Amounts subscribed for exceed the difference between the
Offered Securities and the Basic Amounts subscribed for (the “Available Undersubscription
Amount”), each Offeree who has subscribed for any Undersubscription Amount shall be entitled to
purchase only that portion of the Available Undersubscription Amount as the Undersubscription
Amount subscribed for by such Offeree bears to the total Undersubscription Amounts subscribed for
by all Offerees, subject to rounding by the Board of Directors to the extent it reasonably deems
necessary.

          (c) Conditions to Acceptances and Purchase.

               (i) Permitted Sales of Refused Securities. In the event that Notices of Acceptance
are not given by the Offerees in respect of all the Offered Securities, the Company shall have 60
days from the expiration of the period set forth in Section 11(a) to close the sale of all or any
part of such Offered Securities as to which a Notice of Acceptance has not been given by the
Offerees (the “Refused Securities”) to the Person or Persons specified in the Offer, but
only for cash and otherwise in all respects upon terms and conditions, including, without
limitation, unit price and interest rates, which are no more favorable, in the aggregate, to such
other Person or Persons or less favorable to the Company than those set forth in the Offer.

               (ii) Reduction in Amount of Offered Securities. In the event the Company shall
propose to sell less than all the Refused Securities (any such sale to be in the manner and on the
terms specified in Section 11(c)(i) above), then each Offeree may, at its sole option and in its
sole discretion, reduce the number of, or other units of the Offered Securities specified in its
respective Notices of Acceptance to an amount which shall be not less than the amount of the
Offered Securities which the Offeree elected to purchase pursuant to Section 11(b) multiplied by a
fraction, (i) the numerator of which shall be the amount of Offered Securities which the Company
actually proposes to sell, and (ii) the denominator of which shall be the amount of all Offered
Securities. In the event that any Offeree so elects to reduce the number or amount of Offered
Securities specified in its respective Notices of Acceptance, the Company may not sell or otherwise
dispose of more than the reduced amount of the Offered Securities until such securities have again
been offered to the Offerees in accordance with Section 11(a).

 

 

Investor Rights Agreement — Page 14

               (iii) Closing. Upon the closing, which shall include full payment to the Company, of
the sale to such other Person or Persons of all or less than all the Refused Securities, the
Offerees shall purchase from the Company, and the Company shall sell to the Offerees, the number of
Offered Securities specified in the Notices of Acceptance, as reduced pursuant to Section 11(c)(ii)
if the Offerees have so elected, upon the terms and conditions specified in the Offer. The
purchase by the Offerees of any Offered Securities is subject in all cases to the preparation,
execution and delivery by the Company and the Offerees of a purchase agreement relating to such
Offered Securities reasonably satisfactory in form and substance to the Offerees and their
respective counsel.

          (d) Further Sale. In each case, any Offered Securities not purchased by the Offerees
or other Person or Persons in accordance with Section 11(c) may not be sold or otherwise disposed
of until they are again offered to the Offerees under the procedures specified in Sections 11(a),
11(b) and 11(c).

          (e) Termination of Right of First Refusal; Waiver. The rights of the Offerees under
this Section 11 shall terminate upon the consummation of a Qualified Public Offering. The rights
of the Investors pursuant to this Section 11 to participate in any given transaction subject to
this Section 11 may be waived as to all Investors as to such transaction by the affirmative vote or
written consent of holders of at least seventy percent (70%) in interest of the then outstanding
shares of Preferred Stock (voting or acting together as a single class on an as-converted to Common
Stock basis), and any such waiver shall be binding on all Investors as to such transaction, even if
any Investors do not execute such waiver.

          (f) Exception. The rights of the Investors under this Section 11 shall not apply to:

               (i) Preferred Stock issued pursuant to the Purchase Agreement or the Contribution Agreement;

               (ii) Common Stock issued or issuable upon conversion of the Preferred Stock;

               (iii) Common Stock or Preferred Stock issued or issuable as a stock dividend to holders of
Preferred Stock or upon any subdivision or combination of shares of Stock provided that such stock
dividend or subdivision are limited to additional shares of Common Stock;

               (iv) any Reserved Employee Shares or options for any Reserved Employee Shares;

               (v) the repurchase of securities from former employees, officers, directors, consultants or
other persons who performed services for the Corporation or any subsidiary in connection with the
cessation of such employment or service at the lower of the original purchase price or the
then-current fair market value thereof;

 

 

Investor Rights Agreement — Page 15

               (vi) any securities issued pursuant to the acquisition of another entity by the Company by
merger, consolidation, reorganization or similar transaction (whereby the Company owns no less than
a majority of the voting power of such corporation) or purchase of substantially all of such
entity’s stock or assets, if such acquisition is previously approved by the Board of Directors; or

               (vii) securities issued in connection with a Qualified Public Offering.

     12. Covenants of the Company.

          (a) Affirmative Covenants of the Company Other Than Reporting Requirements. Without
limiting any other covenants and provisions hereof, and except to the extent the following
covenants and provisions of this Section 12(a) are waived in any instance by the holders of at
least seventy percent (70%) in interest of the then outstanding shares of Preferred Stock (on an
as-converted to Common Stock basis), the Company covenants and agrees that, until the consummation
of a Qualified Public Offering, it will perform and observe the following covenants and provisions,
and will cause each Subsidiary to perform and observe such of the following covenants and
provisions as are applicable to such Subsidiary:

               (i) Payment of Taxes and Trade Debt. Pay and discharge, and cause each Subsidiary to
pay and discharge, all taxes, assessments and governmental charges or levies imposed upon it or
upon its income, profits or business, or upon any properties belonging to it, prior to the date on
which penalties attach thereto, and all lawful claims which, if unpaid, might become a lien or
charge upon any properties of the Company or any Subsidiary; provided, however, that neither the
Company nor any Subsidiary shall be required to pay any such tax, assessment, charge, levy or claim
which is being contested in good faith and by appropriate proceedings if the Company or any
Subsidiary shall have set aside on its books sufficient reserves, if any, with respect thereto.
Pay and cause each Subsidiary to pay, when due, or in conformity with customary trade terms, all
lease obligations, all trade debt, and all other Indebtedness incident to the operations of the
Company or its Subsidiaries, except such as are being contested in good faith and by proper
proceedings if the Company or Subsidiary concerned shall have set aside on its books sufficient
reserves, if any, with respect thereto.

               (ii) Maintenance of Insurance. Except with the prior approval of the Board of
Directors, obtain and maintain from responsible and reputable insurance companies or associations a
term life insurance policy in the amount of $2,000,000 on the life of the Company’s chief executive
officer, which proceeds will be payable to the order of the Company. The Company will not cause or
permit any assignment of the proceeds of the life insurance policies specified above and will not
borrow against such policies. Except with the prior approval of the Board of Directors, maintain,
and cause each Subsidiary to maintain, insurance, including directors and officers liability
insurance with a total policy limit of at least $2,000,000, with responsible and reputable
insurance companies or associations in such amounts and covering such risks as is customarily
carried by companies engaged in similar businesses and owning similar properties in the same
general areas in which the Company or such Subsidiary operates, but in any event in amounts
sufficient to prevent the Company or Subsidiary from becoming a co-insurer.

 

 

Investor Rights Agreement — Page 16

               (iii) Preservation of Corporate Existence. Preserve and maintain, and, unless the
Company deems it not to be in its best interests, cause each Subsidiary to preserve and maintain,
its corporate and/or legal existence, rights, franchises and privileges in the jurisdiction of its
incorporation or organization, as applicable, and qualify and remain qualified, and cause each
Subsidiary to qualify and remain qualified, as a foreign corporation or limited liability company,
as applicable, in each jurisdiction in which such qualification is necessary or desirable in view
of its business and operations or the ownership or lease of its properties.

               (iv) Compliance with Laws, Charter and By-Laws. Comply, and cause each Subsidiary to
comply, with the requirements of (A) all applicable laws, rules, regulations and orders of any
governmental authority, where noncompliance would have a Material Adverse Effect (as defined in the
Purchase Agreement), (B) its certificate of incorporation or operating agreement, as applicable,
and (C) its by-laws, if applicable.

               (v) Inspection. Permit, upon reasonable request and notice, each of the Series A
Investors or any agents or representatives thereof, to examine and make copies of and extracts from
the books of account of, and visit and inspect the properties of the Company and any Subsidiary, to
discuss the affairs, finances and accounts of the Company and any Subsidiary with any of its
officers, directors or Key Employees and independent accountants, and consult with and advise such
officers, directors and Key Employees as to their affairs, finances and accounts, all at reasonable
times during normal business hours.

               (vi) Keeping of Records and Books of Account. Keep, and cause each Subsidiary to
keep, adequate records and books of account in which complete entries will be made in accordance
with generally accepted accounting principles consistently applied, reflecting all financial
transactions of the Company and any Subsidiary, and in which, for each fiscal year, all proper
reserves for depreciation, depletion, returns of merchandise, obsolescence, amortization, taxes,
bad debts and other purposes in connection with its business shall be made.

               (vii) Maintenance of Properties. Maintain and preserve, and cause each Subsidiary to
maintain and preserve, all of its properties and assets, necessary for the proper conduct of its
business, in good repair, working order and condition, ordinary wear and tear excepted.

               (viii) Budgets Approval. Not later than 30 days prior to the commencement of each
fiscal year, prepare and submit to, and obtain the approval by the Board of Directors of, a
business plan and monthly operating budgets in detail for the upcoming fiscal year, including
capital and operating expense budgets, cash flow projections and profit and loss projections, all
itemized in reasonable detail (including itemization of provisions for officers’ compensation).
Review the budget and business plan periodically, and resubmit all changes therein and all material
deviations therefrom to the Board of Directors. The Company shall not enter into any activity not
in the ordinary course of business and not envisioned by the budget and business plan, unless
approved by the Board of Directors.

 

 

Investor Rights Agreement — Page 17

               (ix) Financings. Inform the Board of Directors of any negotiations, offers or
contracts relating to possible financings of any nature for the Company, whether initiated by the
Company or any other Person, except for (A) arrangements with trade creditors, and (B) utilization
by the Company or any Subsidiary of commercial lending arrangements with financial institutions.

               (x) By-Laws. At all times, cause the by-laws of the Company to provide that, unless
otherwise required by the laws of the State of Delaware, (i) any two (2) directors and (ii) any
holder or holders of at least twenty-five percent (25%) of the outstanding Preferred Stock (voting
together as a single class on an as-converted to Common Stock basis), shall have the right to call
a meeting of the Board of Directors or stockholders. At all times maintain provisions in the
by-laws or certificate of incorporation of the Company indemnifying all directors against liability
to the maximum extent permitted under the laws of State of Delaware.

               (xi) Non-Competition, Non-Solicitation, Nondisclosure and Developments Agreements.
The Company will obtain a duly executed Non-Competition, Non-Solicitation Nondisclosure and
Developments Agreement in a form approved by the Board of Directors from each Key Employee of the
Company and each Subsidiary. The Company will obtain a duly executed Non-Solicitation,
Nondisclosure and Developments Agreement in a form approved by the Board of Directors from each
employee and consultant of the Company and each Subsidiary (other than Key Employees).

               (xii) New Developments. Where reasonably practicable, (A) cause all technological
developments, patentable or unpatentable inventions, discoveries or improvements by the Company’s
or any Subsidiary’s officers or employees to be documented in accordance with the appropriate
professional standards, (B) cause all officers, Key Employees and, to the best of the Company’s or
any Subsidiary’s ability, consultants of the Company or any Subsidiary to execute Non-Competition,
Non-Solicitation Nondisclosure and Developments Agreement or Non-Solicitation, Nondisclosure and
Developments Agreement in a form approved by the Board of Directors in favor of the Company or any
Subsidiary, and (C) where possible and deemed by management to be commercially appropriate based on
the advice of legal counsel and other considerations, file and prosecute U.S. and foreign patent or
copyright applications relating to and protecting such developments on behalf of the Company or any
Subsidiary.

               (xiii) Meetings of Directors. Hold meetings of the Company’s Board of Directors not
less than quarterly.

               (xiv) Expenses of Directors. Promptly reimburse in full, each director of the Company
who is not an employee of the Company for all of his reasonable out-of-pocket expenses incurred in
attending each meeting of the Board of Directors of the Company or any committee thereof.

               (xv) Continued Business Operations. Use commercially reasonable efforts to cause its
officers and Key Employees to refrain from carrying on any for profit business activity outside of
the Company and its Subsidiaries.

 

 

Investor Rights Agreement — Page 18

               (xvi) Stock Option Plans. Any stock option or stock purchase agreement involving
employees, directors or consultants of the Company granted or approved by the Company from time to
time after the date hereof shall provide that each option granted or restricted stock purchased
thereunder shall vest (A) with respect to twenty-five percent (25%) of the shares subject to such
grant or purchase, one (1) year after the date of such grant or purchase and (B) with respect to
the remaining shares subject to such grant or purchase, on a monthly basis over a period of three
(3) years thereafter, except with the prior approval of the Compensation Committee of the Board of
Directors. No stock option agreement or stock purchase agreement entered into on or after the date
hereof shall provide for acceleration in the vesting schedule of unexercised options or restricted
stock subject to restrictions in the event of a Change of Control (as defined below) of the
Company, except with the prior approval of the Board of Directors. Each form of stock option
agreement or stock purchase agreement shall be subject to the approval of the Compensation
Committee of the Board of Directors and shall contain a right of first refusal on transfers of
shares in favor of the Company. In addition, upon a grant of an option to or purchase of
restricted by each employee, director consultant of the Company, such employee, director or
consultant shall be required to execute an Instrument of Accession to that Stock Restriction
Agreement dated as of the date hereof by and among the Company, the Investors and the Holders
listed therein.

               (xvii) U.S. Real Property Interest Statement. Provide prompt written notice to each
Investor following any “determination date” (as defined in United States Treasury Regulation
Section 1.897-2(c)(1)) on which the Company becomes a United States real property holding
corporation. In addition, upon a written request by any Investor, the Company shall provide such
Investor with a written statement informing the Investor whether such Investor’s interest in the
Company constitutes a U.S. real property interest. The Company’s determination shall comply with
the requirements of United States Treasury Regulation Section 1.897-2(h)(1) or any successor
regulation, and the Company shall provide timely notice to the Internal Revenue Service, in
accordance with and to the extent required by United States Treasury Regulation Section
1.897-2(h)(2) or any successor regulation, that such statement has been made. The Company’s
written statement to any Investor shall be delivered to such Investor within ten (10) days of such
Investor’s written request therefor. The Company’s obligation to furnish a written statement
pursuant to this Section 12(a)(xvii) shall continue notwithstanding the fact that a class of the
Company’s stock may be traded on an established securities market.

               (xviii) Qualified Small Business Stock. Upon request, submit to its stockholders
(including the Investors) and to the Internal Revenue Service any reports that may be required
under Section 1202(d)(1)(C) of the Code and any related Treasury Regulations. In addition, within
ten (10) days after any Investor has delivered to the Company a written request therefor, the
Company shall deliver to such Investor a written statement informing the Investor whether such
Investor’s interest in the Company constitutes “qualified small business stock” as defined in
Section 1202(c) of the Code. The Company’s obligation to furnish a written statement pursuant to
this Section 12(a)(xviii) shall continue notwithstanding the fact that a class of the Company’s
stock may be traded on an established securities market.

 

 

Investor Rights Agreement — Page 19

          (b) Negative Covenants of the Company. Without limiting any other covenants and
provisions hereof, the Company covenants and agrees that, until the consummation of a Qualified
Public Offering or, while this Agreement remains outstanding, it will comply with and observe the
following covenants and provisions, and will cause each Subsidiary, if and when such Subsidiary
exists, to comply with and observe such of the following covenants and provisions as are applicable
to such Subsidiary, and will not, without the written consent or waiver of at least seventy percent
(70%) in interest of the holders of Preferred Stock (on an as-converted to Common Stock basis):

               (i) Restrictions on Indebtedness. Create, or authorize the creation of, or issue, or
authorize the issuance of, any debt security of the Company which by its terms is convertible into
or exchangeable for any equity security of the Company, including without limitation any security
of the Company which is a combination of debt and equity; or create, incur, assume or suffer to
exist, or permit any Subsidiary to create, incur, assume or suffer to exist, any liability with
respect to Indebtedness for money borrowed which (a) exceeds, in the aggregate, $50,000; and (b) is
not convertible into or exchangeable for any equity securities of the Company or is not a security
that is a combination of debt and equity, unless such Indebtedness has been approved by the Board
of Directors.

               (ii) Assumptions or Guaranties of Indebtedness of Other Persons. Assume, guarantee,
endorse or otherwise become directly or contingently liable on, or permit any Subsidiary to assume,
guarantee, endorse or otherwise become directly or contingently liable on (including, without
limitation, liability by way of agreement, contingent or otherwise, to purchase, to provide funds
for payment, to supply funds to or otherwise invest in the debtor or otherwise to assure the
creditor against loss) any Indebtedness of any other Person, except for guaranties by endorsement
of negotiable instruments for deposit or collection in the ordinary course of business, and except
for the guaranties of the permitted obligations of any wholly-owned Subsidiary unless such
guarantee, endorsement or liability is previously approved by the Board of Directors.

               (iii) Distributions. Purchase or redeem any shares of capital stock other than the
Preferred Stock as expressly provided in the Company’s certificate of incorporation (provided, that
any such redemption of shares of Preferred Stock by the Company pursuant to its certificate of
incorporation shall be no earlier than as provided in the Company’s certificate of incorporation as
of the date hereof), or permit any Subsidiary of the Company to take any such action, except for
dividends or other distributions payable on the Common Stock of the Company, solely in the form of
additional shares of Common Stock and other than securities repurchased from former employees,
officers, directors, consultants or other persons who performed services for the Company or any
Subsidiary in connection with the cessation of such employment or service at the lower of the
original purchase price or the then current fair market value thereof.

               (iv) Ownership of Subsidiaries. Purchase or hold beneficially any stock, other
securities or evidences of Indebtedness in, or make any investment in any other Person, excluding a
wholly-owned Subsidiary of the Company, if the aggregate financial commitment of the Company
related to all such commitments involves more than $50,000 in any

 

 

Investor Rights Agreement — Page 20

12-month period, unless such purchase, ownership or investment is made pursuant to operating
and/or capital plans previously approved by the Board of Directors.

               (v) Issuance of Reserved Employee Shares. Grant to any of its employees options or
other rights to purchase Reserved Employee Shares unless authorized by the Board of Directors of
the Company or its Compensation Committee.

               (vi) Dealings with Affiliates and Others. Other than (A) as contemplated by this
Agreement or (B) transactions in the ordinary course of business involving less than $50,000, enter
into, after the date of this Agreement, any transaction, including, without limitation, any loans
or extensions of credit or royalty agreements, with any officer, director or affiliate of the
Company or any Subsidiary or any member of their respective immediate families or any corporation
or other entity directly or indirectly affiliated with one or more of such officers, directors or
members of their immediate families unless such transaction is approved in advance by a majority of
the disinterested members of the Board of Directors.

               (vii) Maintenance of Ownership of Subsidiaries. Sell or otherwise dispose of any
shares of capital stock or membership interests of any Subsidiary, except to another Subsidiary, or
permit any Subsidiary to issue, sell or otherwise dispose of any shares of its capital stock or
membership interests or the capital stock or membership interests of any Subsidiary, except to the
Company or another Subsidiary; provided, however, that the Company may liquidate, merge or
consolidate any Subsidiary or Subsidiaries into or with itself, provided that the Company is the
surviving entity, or into or with another Subsidiary or Subsidiaries.

               (viii) Acquisition or Disposition of Assets. Acquire or dispose of any assets of
$50,000 in value (other than by way of granting in the ordinary course of business and on
arms-length terms a license to use intellectual property or products of the Company), unless such
acquisition or disposition is made pursuant to operating and/or capital plans previously approved
by the Board of Directors.

               (ix) Capital Expenditures. Enter into any contract, arrangement or commitment
involving expenditure on capital account other than in accordance with, or not more than $50,000 in
excess of, the Company’s aggregate annual capital expenditure budget, unless such expenditure is
made pursuant to operating and/or capital plans previously approved by the Board of Directors. For
the purposes of this paragraph, the aggregate amount payable under any agreement for hire, hire
purchase or purchase on credit sale or conditional sale terms shall be deemed to be capital
expenditure incurred in the year in which such agreement is executed by the parties thereto.

               (x) Transfers of Technology. Transfer any ownership or interest in, or material
rights relating to, any of its Intellectual Property Rights to any Person or entity which is not a
member of the consolidated group of the Company and its Subsidiaries; provided, however, that this
Section 12(b)(x) shall not apply to transfers of Intellectual Property Rights accomplished in the
ordinary course of business.

 

 

Investor Rights Agreement — Page 21

          (c) Reporting Requirements. As long as there are shares of Preferred Stock
outstanding or until the consummation of a Qualified Public Offering, the Company will furnish the
following to each holder that owns at least twenty percent (20%) of the then outstanding shares of
Preferred Stock (calculated on an as-converted to Common Stock basis):

               (i) Monthly Reports: as soon as available and in any event within 30 days after the
end of each calendar month, consolidated unaudited financial statements of the Company and its
Subsidiaries in accordance with generally accepted accounting principles as of the end of such
month and statements of income and retained earnings of the Company and its Subsidiaries for such
month and for the period commencing at the end of the previous fiscal year and ending with the end
of such month, setting forth in each case in comparative form the corresponding figures for the
corresponding period of the preceding fiscal year, and including comparisons to monthly budgets, a
headcount of the Company’s employees, a cash flow analysis for such month, a schedule showing each
expenditure of a capital nature during such month, and a summary discussion of the Company’s
principal functional areas, all in reasonable detail;

               (ii) Quarterly Reports: as soon as available and in any event within 45 days after the
end of each of the first three quarters of each fiscal year of the Company, financial statements of
the Company and its Subsidiaries as of the end of such quarter and statements of income and cash
flows of the Company and its Subsidiaries for such quarter and for the period commencing at the end
of the previous fiscal year and ending with the end of such quarter, setting forth in each case in
comparative form the corresponding figures for the corresponding period of the preceding fiscal
year, and including comparisons to quarterly budgets and a summary discussion of the Company’s
principal functional areas, all in reasonable detail and duly certified by the chief financial
officer of the Company as having been prepared in accordance with generally accepted accounting
principles consistently applied (subject to year-end audit adjustments);

               (iii) Annual Reports: as soon as available and in any event within 90 days after the
end of each fiscal year of the Company, a copy of the annual audit report for such year for the
Company and its Subsidiaries, including therein consolidated balance sheets of the Company and its
Subsidiaries as of the end of such fiscal year and consolidated statements of income and of the
Company and its Subsidiaries for such fiscal year, setting forth in each case in comparative form
the corresponding figures for the preceding fiscal year, all such consolidated statements to be in
accordance with generally accepted accounting principles and to be duly certified by the chief
financial officer of the Company and by a nationally recognized independent public accountant;

               (iv) Budgets: as soon as available after approval by the Board of Directors, a
business plan and monthly operating budgets for the forthcoming fiscal year, including a balance
sheet, cash flow statement and profit and loss statement;

               (v) Notice of Adverse Changes: promptly after the occurrence thereof and in any event
within ten (10) days after each occurrence, notice of any material adverse change in the business,
operations, affairs or financial condition (financial or otherwise) of the

 

 

Investor Rights Agreement — Page 22

Company or any material default in any other material agreement to which the Company is a
party;

               (vi) Written Reports: promptly upon receipt or publication thereof, any written
reports submitted to the Company by independent public accountants in connection with an annual or
interim audit of the books of the Company and its Subsidiaries made by such accountants or by
consultants or other experts in connection with such consultant’s or other expert’s review of the
Company’s operations or industry, and written reports prepared by the Company to comply with other
investment or loan agreements;

               (vii) Notice of Proceedings: promptly after the commencement and notice thereof,
notice of all actions, suits, litigations and proceedings pending or, to the knowledge of the
Company, threatened against the Company affecting any of its respective properties or assets, or
against any officer, director, Key Employee or holder of more than five percent (5%) of the capital
stock of the Company relating to such person’s performance of duties for the Company or relating to
his stock ownership in the Company or otherwise relating to the business of the Company including,
without limiting their generality, actions pending or, to the knowledge of the Company, threatened
involving the prior employment of any of the Company’s officers or employees in their use in
connection with the Company’s business of any information or techniques allegedly proprietary to
any of their former employees, or any event or condition on the basis of which such litigation,
proceeding or investigation might properly be instituted before any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting
the Company or any Subsidiary;

               (viii) Stockholders’ and SEC Reports: promptly upon sending, making available, or
filing the same, such reports and financial statements as the Company or any Subsidiary shall send
or make available to the stockholders of the Company or file with the Securities and Exchange
Commission; and

               (ix) Other Information: such other information respecting the business, properties or
the condition or operations, financial or other, of the Company or any of its Subsidiaries as any
such Investor may from time to time reasonably request.

     The holders of Preferred Stock hereby covenant and agree that, subject to the disclosure of
information of a non-technical nature, including financial information, which such holder discloses
to its partners and/or shareholders generally, all of the information disclosed to such holders
pursuant to the provisions of this Section 12(c) will be kept confidential and such holder will not
disclose or divulge any confidential, proprietary or secret information which such holder may
obtain from the Company pursuant to this Section 12(c) unless (a) such information is or becomes
known to such holder from a source other than the Company or is or becomes publicly known (other
than as a result of a breach by such holder of this provision), (b) the holder is required by law,
court order or a governmental agency to disclose such information, or (c) unless the Company gives
its written consent to such holder’s release of such information, except that no such written
consent shall be required (and the Investor shall be free to release such information to such
recipient) if such information is to be provided to the holder’s counsel or accountant, or to an
officer, director or partner of such holder, provided that such holder shall

 

 

Investor Rights Agreement — Page 23

inform the recipient of the confidential nature of such information, and shall instruct the
recipient to treat the information as confidential.

          (d) Additional Information Requirements. As long as there are shares of Preferred
Stock outstanding or until the consummation of a Qualified Public Offering, the Company will
furnish to each Investor that is not entitled to receive information pursuant to Section 12(c)
above copies of the Company’s quarterly and annual financial statements, including the consolidated
balance sheet and consolidated statements of income and cash flows of the Company and its
Subsidiaries as of the end of each such period, as well as a brief management summary of such
financial statements. Notwithstanding the foregoing, in no event shall the Company be obligated to
provide any information pursuant to this Section 12(d) to any Investor that the Company’s Board of
Directors determines, in its sole discretion, to be a competitor, directly or indirectly, of the
Company or any of its Subsidiaries. Notwithstanding anything to the contrary in this Agreement,
the right of any Investor to receive information pursuant to this Section 12(d) may not be assigned
or otherwise transferred, whether by operation of law or otherwise, to any third-party, including a
successor in interest to the shares of Preferred Stock owned by such Investor.

     The holders of Preferred Stock hereby covenant and agree that, subject to the disclosure of
information of a non-technical nature, including financial information, which such holder discloses
to its partners and/or shareholders generally, all of the information disclosed to such holders
pursuant to the provisions of this Section 12(d) will be kept confidential and such holder will not
disclose or divulge any confidential, proprietary or secret information which such holder may
obtain from the Company pursuant to this Section 12(d) unless (a) such information is or becomes
known to such holder from a source other than the Company or is or becomes publicly known (other
than as a result of a breach by such holder of this provision), (b) the holder is required by law,
court order or a governmental agency to disclose such information, or (c) unless the Company gives
its written consent to such holder’s release of such information, except that no such written
consent shall be required (and the Investor shall be free to release such information to such
recipient) if such information is to be provided to the holder’s counsel or accountant, or to an
officer, director or partner of such holder, provided that such holder shall inform the recipient
of the confidential nature of such information, and shall instruct the recipient to treat the
information as confidential.

     13. Representations and Warranties of the Company. The Company represents and
warrants to you as follows:

          (a) The execution, delivery and performance of this Agreement by the Company have been duly
authorized by all requisite corporate action and will not violate any provision of law, any order
of any court or other agency of government, the certificate of incorporation or by-laws of the
Company or any provision of any indenture, agreement or other instrument to which it or any or its
properties or assets is bound, conflict with, result in a breach of or constitute (with due notice
or lapse of time or both) a default under any such indenture, agreement or other instrument or
result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever
upon any of the properties or assets of the Company.

 

 

Investor Rights Agreement — Page 24

          (b) The Company has full power and authority to enter into this Agreement and this Agreement
has been duly executed and delivered by the Company and constitutes the legal, valid and binding
obligation of the Company, enforceable in accordance with its terms.

     14. Transfers.

          (a) Restrictive Legend. Each certificate representing Restricted Stock shall, except
as otherwise provided in Section 14, be stamped or otherwise imprinted with a legend substantially
in the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES HAVE
BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY
NOT BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF
1933 AND APPLICABLE STATE SECURITIES LAWS, OR THE AVAILABILITY OF AN EXEMPTION FROM
THE REGISTRATION PROVISIONS OF THE SECURITIES ACT OF 1933 AND APPLICABLE STATE
SECURITIES LAWS.

A certificate shall not bear such legend if in the opinion of counsel satisfactory to the Company
(it being agreed that Goodwin Procter LLP shall be satisfactory) the securities represented thereby
may be publicly sold without registration under the Securities Act and any applicable state
securities laws.

          (b) Notice of Proposed Transfer. Prior to any proposed transfer of any Restricted
Stock (other than under the circumstances herein described in Sections 2, 3, 4 or 5), the holder
thereof shall give written notice to the Company of its intention to effect such transfer. Each
such notice shall describe the manner of the proposed transfer and, if requested by the Company,
shall be accompanied by a written opinion of counsel satisfactory to the Company (it being agreed
that without limitation Goodwin Procter LLP shall be satisfactory) to the effect that the proposed
transfer may be effected without registration under the Securities Act and any applicable state
securities laws, whereupon the holder of such stock shall be entitled under the securities laws to
transfer such stock in accordance with the terms of its notice; provided, however, that no such
opinion of counsel shall be required for a transfer to one or more partners of the transferor (in
the case of a transferor that is a partnership), one or more members of the transferor (in the case
of a transferor that is a limited liability corporation) or to an affiliated corporation (in the
case of a transferor that is a corporation). Each certificate for Restricted Stock transferred as
above provided shall bear the legend set forth in Section 14(a), except that such certificate shall
not bear such legend if (i) such transfer is in accordance with the provisions of Rule 144 (or any
other rule permitting public sale without registration under the Securities Act) or (ii) the
written opinion of counsel referred to above is to the further effect that the transferee and any
subsequent transferee (other than an affiliate of the Company) would be

 

 

Investor Rights Agreement — Page 25

entitled to transfer such securities in a public sale without registration under the
Securities Act. The restrictions provided for in this Section 14(b) shall not apply to securities
which are not required to bear the legend prescribed by Section 14(a) in accordance with the
provisions of Section 14(a).

     15. Miscellaneous.

          (a) This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective heirs, executors, personal representatives, successors and permitted assigns and
shall be binding upon any person, firm, company or other entity to whom any shares of Restricted
Stock and Preferred Stock are transferred (even if in violation of the provisions of this
Agreement) and the heirs, executors, personal representatives, successors and assigns of such
person, firm, company or other entity. No provision of this Agreement shall be construed to
provide a benefit to any party hereto who no longer owns any Restricted Stock.

          (b) All notices and other communications hereunder shall be in writing and shall be deemed to
have been given when delivered or three (3) days after mailing by first class, registered or
certified mail (air mail if to or from outside the United States), return receipt requested,
postage prepaid, if to an Investor at its respective address set forth on Schedule of Holders
hereto or to such other address as the addressee shall have furnished to the other parties hereto
in the manner prescribed by this Section 15(b) or if to any subsequent holder of Preferred Stock,
Conversion Shares or Restricted Stock, to it at such address as may have been furnished to the
Company in writing by such holder;

          (c) This Agreement shall be construed and enforced in accordance with and governed by the
internal laws of the State of Delaware, without regard to its principles of conflicts of laws.

          (d) Except as otherwise provided herein, this Agreement may not be amended or modified, and no
provision hereof may be waived, without the written consent of the Company and the holders of at
least seventy percent (70%) in interest of the outstanding Conversion Shares issued or issuable
upon conversion of the Preferred Stock. Notwithstanding anything to the contrary contained herein,
no amendment which increases any Investor’s obligations hereunder shall be effective against such
Investor unless the Investor has approved such amendment in writing. Any such amendment or
modification effected in accordance with this Agreement shall be binding on all parties hereto,
even if they do not execute such amendment, modification or consent.

          (e) This Agreement may be executed and delivered (including by facsimile transmission) in more
than one counterpart, each of which shall be deemed to be an original and which, together, shall
constitute one and the same instrument.

          (f) The obligations of the Company to register shares of Restricted Stock under Sections 2, 3,
or 4 shall terminate on the fifth anniversary of the date of a Qualified Public Offering.

 

 

Investor Rights Agreement — Page 26

          (g) If requested in writing by the underwriters for the initial underwritten public offering
of securities of the Company, each holder of Restricted Stock who is a party to this Agreement
hereby agrees not to sell any shares of Restricted Stock or any other shares of Common Stock (other
than shares of Restricted Stock or other shares of Common Stock being registered in such offering
or purchased in the offering or in the open market following the offering), without the consent of
such underwriters, for a period of one hundred eighty (180) days following the effective date of
the registration statement relating to such offering; provided, however, that all persons entitled
to registration rights with respect to shares of Common Stock who are not parties to this
Agreement, all other persons selling shares of Common Stock in such offering, all persons holding
in excess of one percent (1%) of the capital stock of the Company on a fully-diluted basis and all
executive officers and directors of the Company shall also have agreed not to sell publicly their
Common Stock under the circumstances and pursuant to the terms set forth in this Section 15(g); and
provided, further, however, that any such lock-up agreement shall provide that if the managing
underwriter releases any shares from the lock-up with respect to such offering prior to the
scheduled expiration date, the managing underwriter shall contemporaneously release a pro rata
portion of the shares of Restricted Stock from such lock-up. The Company may impose stop-transfer
instructions with respect to the shares (or securities) subject to the foregoing restriction until
the end of said period. Each Investor agrees to sign such agreements or documents reasonably
requested by the Company and/or the managing underwriters relating to and consistent with the
provisions of this section.

          (h) Notwithstanding the provisions of Section 5(a), the Company’s obligation to file a
registration statement, or cause such registration statement to become and remain effective, shall
be suspended for a period not to exceed 30 days from the date of the request by a holder of
Restricted Stock, such right to delay a request to be exercised by the Company not more than once
in any 12-month period, if there exists at the time material non-public information relating to the
Company which, in the good faith determination of the Company’s Board of Directors, should not be
disclosed.

          (i) The Company shall not enter into any agreement granting any holder or prospective holder
of any securities of the Company registration rights with respect to such securities unless such
new registration rights, including market stand-off obligations, are subordinate to the
registration rights granted to holders hereunder.

          (j) The provisions of this Agreement are severable and, in the event that any court of
competent jurisdiction shall determine that any one or more of the provisions or part of a
provision contained in this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any
other provision or part of a provision of this Agreement; but this Agreement shall be reformed and
construed as if such invalid or illegal or unenforceable provision, or part of a provision, had
never been contained herein, and such provisions or part reformed so that it would be valid, legal
and enforceable to the maximum extent possible.

          (k) All shares of Restricted Stock held or acquired by affiliates of Investors shall be
aggregated together for purposes of determining availability of any rights under this Agreement.

 

 

Investor Rights Agreement — Page 27

          (l) Article, Section and subsection headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the date first
above written.

	 	 	 	 	 
	BUYDOMAINS HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Robert J. Davis	 	 
	 

	 	 

Name: Robert J. Davis
	 	 
	 

	 	Title:	 	 

Signature Page to Investor Rights Agreement

 

 

	 	 	 	 	 
	SERIES A INVESTORS:
	 
	 	 	 	 
	HIGHLAND CAPITAL PARTNERS VI LIMITED PARTNERSHIP
	 
	 	 	 	 
	By:	 	Highland Management Partners VI Limited Partnership
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Highland Management Partners VI, Inc.	 	 
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Nova	 	 
	 

	 	 

Managing Director
	 	 
	 
	 	 	 	 
	HIGHLAND CAPITAL PARTNERS VI-B LIMITED PARTNERSHIP
	 
	 	 	 	 
	By:	 	Highland Management Partners VI Limited Partnership
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Highland Management Partners VI, Inc.	 	 
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Nova	 	 
	 

	 	 

Managing Director
	 	 
	 
	 	 	 	 
	HIGHLAND ENTREPRENEURS’ FUND VI LIMITED PARTNERSHIP
	 
	 	 	 	 
	By:

	 	HEF VI Limited Partnership	 	 
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Highland Management Partners VI, Inc.	 	 
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Nova	 	 
	 

	 	 

Managing Director
	 	 

Signature Page to Investor Rights Agreement

 

 

	 	 	 	 	 
	SERIES A INVESTORS (CONTINUED):
	 
	 	 	 	 
	SUMMIT INVESTORS VI, L.P.
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 
	 
	 	 	 	 
	SUMMIT VI ADVISORS FUND, L.P.
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 
	 
	 	 	 	 
	SUMMIT VI ENTREPRENEURS FUND, L.P.
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 

Signature Page to Investor Rights Agreement

 

 

	 	 	 	 	 
	SERIES A INVESTORS (CONTINUED):
	 
	 	 	 	 
	SUMMIT VENTURES VI-A, L.P.
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 
	 
	 	 	 	 
	SUMMIT VENTURES VI-B, L.P.
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 

Signature Page to Investor Rights Agreement

 

 

	 	 	 	 	 
	SERIES Z INVESTORS:	 	 
	 
	 	 	 	 
	RAREDOMAINS.COM, LLC	 	 
	 
	 	 	 	 
	By:
	 	/s/ Michael Mann	 	 
	Name:

	 	Michael Mann 

	 	 
	Title:
	 	President	 	 

Signature Page to Investor Rights Agreement

 

 

SCHEDULE OF HOLDERS

Series A Investors

Highland Capital Partners VI Limited Partnership

92 Hayden Avenue

Lexington, MA 02421

Highland Capital Partners VI-B Limited Partnership

92 Hayden Avenue

Lexington, MA 02421

Highland Entrepreneurs’ Fund VI Limited Partnership

92 Hayden Avenue

Lexington, MA 02421

Summit Investors VI, L.P.

c/o Summit Partners, L.P.

222 Berkeley Street

18th Floor

Boston, MA 02116

Summit VI Advisors Funds, L.P.

c/o Summit Partners, L.P.

222 Berkeley Street

18th Floor

Boston, MA 02116

Summit VI Entrepreneurs Funds, L.P.

c/o Summit Partners, L.P.

222 Berkeley Street

18th Floor

Boston, MA 02116

Summit Ventures VI-A, L.P.

c/o Summit Partners, L.P.

222 Berkeley Street

18th Floor

Boston, MA 02116

Summit Ventures VI-B, L.P.

c/o Summit Partners, L.P.

222 Berkeley Street

18th Floor

Boston, MA 02116

 

 

Series Z Investors

RareDomains.com, LLC

6000 Marquette Terrace

Bethesda, MD 20817

 

 

AMENDMENT NO. 1 TO 

INVESTOR RIGHTS AGREEMENT

     THIS AMENDMENT NO. 1 TO INVESTOR RIGHTS AGREEMENT, dated as of May 14, 2005 (this “First
Amendment”), is made by and among BuyDomains Holdings, Inc., a Delaware corporation, and
certain Investors as defined in the Investor Rights Agreement (as defined below).

     WHEREAS, the parties hereto are all parties to that certain Investor Rights Agreement entered
into as of February 22, 2005 (the “Investor Rights Agreement”);

     WHEREAS, the parties hereto wish to amend the Investor Rights Agreement as set forth herein;

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

     1. The definition of “Qualified Public Offering” in Section 1 of the Investor Rights Agreement
is hereby deleted in its entirety and is hereby amended and replaced with the following:

     “Qualified Public Offering” shall mean the completion of a fully underwritten, firm
commitment public offering pursuant to an effective registration under the Securities Act covering
the offering or sale by the Company of its Common Stock in which (x) the gross proceeds received by
the Company shall be at least $75 million, and (y) the price paid by the public for such shares
shall be at least $6.00 per share (as appropriately adjusted for any stock split, combination,
reorganization, recapitalization, stock dividend, or similar event).

     2. The definition of “Reserved Employee Shares” in Section 1 of the Investor Rights Agreement
is hereby deleted in its entirety and is hereby amended and replaced with the following:

     “Reserved Employee Shares” shall mean shares of Common Stock not to exceed an
aggregate number of shares equal to 4,575,000 (appropriately adjusted to reflect any stock split,
stock dividend, combination, reorganization, recapitalization, reclassification or other similar
event involving a change in the capitalization of the Company) reserved by the Company from time to
time for (i) the sale of shares of Common Stock to employees, consultants or non-employee directors
of the Company or (ii) the issuance and/or exercise of options to purchase Common Stock granted to
employees, consultants or non-employee directors of the Company, in each case pursuant to any stock
plan approved by the Board of Directors. The foregoing number of Reserved Employee Shares may be
increased by vote or written consent of at least seventy percent (70%) of the then outstanding
shares of Series A Preferred Stock.

     3. All other terms of the Investor Rights Agreement not expressly amended by this First
Amendment shall continue and remain in full force and effect and the Investor Rights Agreement, as
amended hereby, is hereby ratified and confirmed in all respects.

 

 

     4. This First Amendment may be executed and delivered (including by facsimile transmission) in
more than one counterpart, each of which shall be deemed to be an original and which, together,
shall constitute one and the same instrument.

     5. This First Amendment shall be construed and enforced in accordance with and governed by the
internal laws of the State of Delaware, without regard to its principles of conflicts of laws.

[Signature Pages to Follow]

 

 

     IN WITNESS WHEREOF, the parties have executed this First Amendment under seal as of the date
first above written.

	 	 	 	 	 
	BUYDOMAINS HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Brian D. Lucy	 	 
	 

	 	 

Name: Brian D. Lucy
	 	 
	 

	 	Title: CFO	 	 

[Signature Page to First Amendment]

 

 

	 	 	 	 	 
	SERIES A INVESTORS:
	 
	 	 	 	 
	HIGHLAND CAPITAL PARTNERS VI LIMITED PARTNERSHIP
	 
	 	 	 	 
	By:	 	Highland Management Partners VI Limited Partnership
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:	 	Highland Management Partners VI, Inc.
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Nova	 	 
	 

	 	 

Managing Director
	 	 
	 
	 	 	 	 
	HIGHLAND CAPITAL PARTNERS VI-B LIMITED PARTNERSHIP
	 
	 	 	 	 
	By:	 	Highland Management Partners VI Limited Partnership
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:	 	Highland Management Partners VI, Inc.
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Nova	 	 
	 

	 	 

Managing Director
	 	 
	 
	 	 	 	 
	HIGHLAND ENTREPRENEURS’ FUND VI LIMITED PARTNERSHIP
	 
	 	 	 	 
	By:

	 	HEF VI Limited Partnership	 	 
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Highland Management Partners VI, Inc.	 	 
	 

	 	its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Nova	 	 
	 

	 	 

Managing Director
	 	 

[Signature Page to First Amendment]

 

 

	 	 	 	 	 
	SERIES A INVESTORS (CONTINUED):	 	 
	 
	 	 	 	 
	SUMMIT INVESTORS VI, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 
	 
	 	 	 	 
	SUMMIT VI ADVISORS FUND, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.
Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 
	 
	 	 	 	 
	SUMMIT VI ENTREPRENEURS FUND, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 

[Signature Page to First Amendment]

 

 

	 	 	 	 	 
	SERIES A INVESTORS (CONTINUED):	 	 
	 
	 	 	 	 
	SUMMIT VENTURES VI-A, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC	 	 
	 

	 	Its General Partner	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 
	 
	 	 	 	 
	SUMMIT VENTURES VI-B, L.P.	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), L.P.
Its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Summit Partners VI (GP), LLC

Its General Partner	 	 
	By:
	 	/s/ Martin J. Mannion	 	 
	 

	 	 

Member
	 	 

[Signature Page to First Amendment]

 

 

AMENDMENT NO. 2 TO

INVESTOR RIGHTS AGREEMENT

     THIS AMENDMENT NO. 2 (this “Amendment”), dated as of January 19, 2006
is entered into by and among YesDirect, Inc., a Delaware corporation formerly known as
BuyDomains Holdings, Inc. (the “Company”), and those Investors set forth on the signature
pages hereto (the “Consenting Investors”). When used in this Amendment, terms defined in
the Investor Rights Agreement, dated as of February 22, 2005 (the “Investor Rights
Agreement”), and not otherwise defined herein have the meanings assigned to them in the
Investor Rights Agreement.

     WHEREAS, the Company and the Consenting Investors are parties to the Investor Rights
Agreement;

     WHEREAS, the Consenting Investors constitute holders of at least seventy percent (70%) in
interest of the outstanding Conversion Shares issued or issuable upon conversion of the Preferred
Stock; and

     WHEREAS, the Company wishes to amend the Investor Rights Agreement to provide that Persons
who, from and after the date hereof, acquire shares of Series A Preferred Stock become parties to
the Investor Rights Agreement as “Series A Investors” upon execution of a counterpart signature
page to, and agreement to be bound by all applicable terms and conditions of, the Investor Rights
Agreement;

     WHEREAS, the Consenting Investors agree that such amendment is in the best interest of the
Company;

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

     1. By execution of this Amendment, the Company and the Consenting Investors, pursuant to
Section 15(d) of the Investor Rights Agreement, hereby amend the Investor Rights Agreement as
follows:

     (a) Section 15 is hereby amended by adding the following paragraph:

     “(m) The Company shall take all necessary action to ensure that each Person, who from
and after the date hereof acquires any shares of Series A Preferred Stock, shall become a
party to this Agreement by executing and delivering to the Company an Instrument of
Accession in form of Schedule I hereto, and such Person shall thereafter be added to
Schedule of Holders annexed hereto and be deemed a Series A Investor for all

 

 

purposes of this Agreement without the requirement of consent of the other parties
hereto.”

     (b) The Investor Rights Agreement is hereby amended to include, as Schedule I thereto,
the Instrument of Accession in form of Exhibit A attached hereto.

     2. The Investor Rights Agreement as amended by this Amendment is and shall continue to be in
full force and effect and, except as amended hereby, is hereby ratified and confirmed in all
respects.

     3. This Amendment may be executed and delivered (including by facsimile transmission) in more
than one counterpart, each of which shall be deemed to be an original and which, together, shall
constitute one and the same instrument.

     4. This Amendment shall be construed and enforced construed in accordance with and governed by
the internal laws of the State of Delaware, without regards to its principles of conflicts of laws.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 - 2 - 

 

          IN WITNESS WHEREOF, this Amendment has been executed by the parties hereto as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 	 	 
	 

	 	YESDIRECT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Brian D. Lucy	 	 
	 

	 	Name:
	 	 

Brian D. Lucy	 	 
	 

	 	Title:	 	CFO	 	 
	 
	 	 	 	 	 	 
	 	 	CONSENTING INVESTORS:
	 
	 	 	 	 	 	 
	 	 	HIGHLAND CAPITAL PARTNERS VI LIMITED PARTNERSHIP
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Management Partners VI Limited Partnership
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Management Partners VI, Inc.
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert J. Davis	 	 
	 

	 	 	 	 

Managing Director
	 	 
	 
	 	 	 	 	 	 
	 	 	HIGHLAND CAPITAL PARTNERS VI-B LIMITED PARTNERSHIP
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Management Partners VI Limited Partnership
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	By:	 	Highland Management Partners VI, Inc.
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert J. Davis	 	 
	 

	 	 	 	 

Managing Director
	 	 

 

 

	 	 	 	 	 	 	 
	 	 	HIGHLAND ENTREPRENEURS’ FUND VI LIMITED PARTNERSHIP
	 
	 	 	 	 	 	 
	 

	 	By:
	 	HEF VI Limited Partnership	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Highland Management Partners VI, Inc.	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert J. Davis	 	 
	 

	 	 	 	 

Managing Director
	 	 
	 
	 	 	 	 	 	 
	 	 	SUMMIT INVESTORS VI, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), LLC	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Martin J. Mannion	 	 
	 

	 	 	 	 

Member
	 	 
	 
	 	 	 	 	 	 
	 	 	SUMMIT VI ADVISORS FUND, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), LLC	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Martin J. Mannion	 	 
	 

	 	 	 	 

Member
	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SUMMIT VI ENTREPRENEURS FUND, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), LLC	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Martin J. Mannion	 	 
	 

	 	 	 	 

Member
	 	 
	 
	 	 	 	 	 	 
	 	 	SUMMIT VENTURES VI-A, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), LLC	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Martin J. Mannion	 	 
	 

	 	 	 	 

Member
	 	 
	 
	 	 	 	 	 	 
	 	 	SUMMIT VENTURES VI-B, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), L.P.	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Summit Partners VI (GP), LLC	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Martin J. Mannion	 	 
	 

	 	 	 	 

Member
	 	 

 

 

EXHIBIT A

Schedule I

YESDIRECT, INC.

INSTRUMENT OF ACCESSION

     The undersigned,                                         , in order to become the owner or holder
of                     
shares of Series A Preferred Stock, $0.001 par value per share, of YesDirect, Inc., a Delaware
corporation (the “Company”), hereby agrees to become a party to the Investor Rights
Agreement, dated as of February 22, 2005, by and among the Company and the other parties thereto
(as amended from time to time, the “Agreement”), and to be bound by all provisions thereof.
The undersigned agrees to become a “Series A Investor” and an “Investor” (each as defined in the
Agreement) under the terms of the Agreement. This Instrument of Accession shall take effect and
and shall become an integral part of, and the undersigned shall become a party to and bound by, the
Agreement immediately upon execution by the undersigned hereto and acceptance thereof by the
Company.

     EXECUTED as a contract under seal as of the date set forth below:

	 	 	 	 	 
	 

	 	 	 	Signature:
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	By:
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Address:
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Taxpayer ID No./Social Security No.:
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Date:
	 

	 	 	 	 

	 
	 	 	 	 
	 

	 	 	 	Accepted:
	 
	 	 	 	 
	 

	 	 	 	YESDIRECT, INC.
	 
	 	 	 	 
	 

	 	 	 	By:
	 

	 	 	 	 

	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	 	 	Date:
	 

	 	 	 	 

 

 

YESDIRECT, INC.

INSTRUMENT OF ACCESSION

     The
undersigned, Russell Lewis, in order to become the owner or holder
of 10,000 shares of Series A Preferred Stock, $0.001 par value per share, of YesDirect, Inc., a Delaware
corporation (the “Company”), hereby agrees to become a party to the Investor Rights
Agreement, dated as of February 22, 2005, by and among the Company and the other parties thereto
(as amended from time to time, the “Agreement”), and to be bound by all provisions thereof.
The undersigned agrees to become a “Series A Investor” and an “Investor” (each as defined in the
Agreement) under the terms of the Agreement. This Instrument of Accession shall take effect and
and shall become an integral part of, and the undersigned shall become a party to and bound by, the
Agreement immediately upon execution by the undersigned hereto and acceptance thereof by the
Company.

     EXECUTED as a contract under seal as of the date set forth below:

	 	 	 	 	 
	 

	 	 	 	Signature: /s/ Russell Lewis
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Name:      Russell Lewis
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Address:
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Taxpayer ID No./Social Security No.:
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Date:
	 

	 	 	 	 

	 
	 	 	 	 
	 

	 	 	 	Accepted:
	 
	 	 	 	 
	 

	 	 	 	YESDIRECT, INC.
	 
	 	 	 	 
	 

	 	 	 	By:      /s/ Brian D. Lucy
	 

	 	 	 	 

	 

	 	 	 	Name:     Brian
D. Lucy
	 

	 	 	 	Title:       CFO
	 
	 	 	 	 
	 

	 	 	 	Date:     1/19/06
	 

	 	 	 	 

 

 

YESDIRECT, INC.

INSTRUMENT OF ACCESSION

     The
undersigned, Maria Cirino, in order to become the owner or holder
of 10,000 shares of Series A Preferred Stock, $0.001 par value per share, of YesDirect, Inc., a Delaware
corporation (the “Company”), hereby agrees to become a party to the Investor Rights
Agreement, dated as of February 22, 2005, by and among the Company and the other parties thereto
(as amended from time to time, the “Agreement”), and to be bound by all provisions thereof.
The undersigned agrees to become a “Series A Investor” and an “Investor” (each as defined in the
Agreement) under the terms of the Agreement. This Instrument of Accession shall take effect and shall become an integral part of, and the undersigned shall become a party to and bound by, the
Agreement immediately upon execution by the undersigned hereto and acceptance thereof by the
Company.

     EXECUTED as a contract under seal as of the date set forth below:

	 	 	 	 	 
	 

	 	 	 	Signature: /s/ Maria  Cirino
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Name: Maria  Cirino
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Address: 61 Forest Street
	 

	 	 	 	 

	 

	 	 	 	Needham, MA 02492
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Taxpayer ID No./Social Security No.:
	 

	 	 	 	 

	 

	 	 	 	 
	 

	 	 	 	Date: 1/19/06
	 

	 	 	 	 

	 
	 	 	 	 
	 

	 	 	 	Accepted:
	 
	 	 	 	 
	 

	 	 	 	YESDIRECT, INC.
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Brian D. Lucy
	 

	 	 	 	 

	 

	 	 	 	Name: Brian D. Lucy
	 

	 	 	 	Title: CFO
	 
	 	 	 	 
	 

	 	 	 	Date: 1-19-06exv10w2

 

Exhibit 10.2

NAMEMEDIA, INC.

AMENDED AND RESTATED

2005 STOCK OPTION AND GRANT PLAN

SECTION 1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS

     The name of the plan is the NameMedia, Inc. Amended and Restated 2005 Stock Option and Grant
Plan (the “Plan”). The purpose of the Plan is to encourage and enable the officers, employees,
directors, consultants and other key persons of NameMedia, Inc., a Delaware corporation formerly
known as YesDirect, Inc., which was formerly known as BuyDomains Holdings, Inc. (together with all
successors thereto, the “Company”), and its Subsidiaries (as defined below), upon whose judgment,
initiative and efforts the Company largely depends for the successful conduct of its business to
acquire a proprietary interest in the Company. It is anticipated that providing such persons with
a direct stake in the Company’s welfare will assure a closer identification of their interests with
those of the Company, thereby stimulating their efforts on the Company’s behalf and strengthening
their desire to remain with the Company.

     The following terms shall be defined as set forth below:

     “Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

     “Award” or “Awards,” except where referring to a particular category of grant under the Plan,
shall include Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards,
Unrestricted Stock Awards, Restricted Stock Units, or any combination of the foregoing.

     “Board” means the Board of Directors of the Company or its successor entity.

     “Code” means the Internal Revenue Code of 1986, as amended, and any successor Code, and
related rules, regulations and interpretations.

     “Committee” has the meaning specified in Section 2.

     “Effective Date” means the date on which the Plan is approved by stockholders as set forth at
the end of this Plan.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

     “Fair Market Value” of the Stock on any given date means the fair market value of the Stock
determined in good faith by the Committee; provided, however, that (i) if the Stock
trades on a national securities exchange, the Fair Market Value on any given date is the closing
sale price on such date; (ii) if the Stock does not trade on any national securities exchange but
is admitted to trading on the National Association of Securities Dealers, Inc. Automated Quotation

 

 

System (“NASDAQ”), the Fair Market Value on any given date is the closing sale price as
reported by NASDAQ on such date; or if no such closing sale price information is available, the
average of the highest bid and lowest asked prices for the Stock reported on such date. For any
date that is not a trading day, the Fair Market Value of the Stock for such date will be determined
by using the closing sale price or the average of the highest bid and lowest asked prices, as
appropriate, for the immediately preceding trading day. The Committee can substitute a particular
time of day or other measure of closing sale price if appropriate because of changes in exchange or
market procedures. Notwithstanding the foregoing, if the date for which Fair Market Value is
determined is the first day when trading prices for the Stock are reported on NASDAQ or trading on
a national securities exchange, the Fair Market Value shall be the “Price to the Public” (or
equivalent) set forth on the cover page for the final prospectus relating to the Company’s Initial
Public Offering.

     “Incentive Stock Option” means any Stock Option designated and qualified as an “incentive
stock option” as defined in Section 422 of the Code.

     “Initial Public Offering” means the consummation of the first fully underwritten, firm
commitment public offering pursuant to an effective registration statement under the Act covering
the offer and sale by the Company of its equity securities, as a result of or following which the
Stock shall be publicly held.

     “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option.

     “Option” or “Stock Option” means any option to purchase shares of Stock granted pursuant to
Section 5.

     “Restricted Stock” shall have the meaning set forth in Section 6

     “Restricted Stock Award” means Awards granted pursuant to Section 6.

     “Restricted Stock Unit” shall have the meaning set forth in Section 7.

     “Stock” or “Common Stock” means the Common Stock, par value $0.001 per share, of the Company,
subject to adjustments pursuant to Section 3.

     “Subsidiary” means any corporation or other entity (other than the Company) in any unbroken
chain of corporations or other entities beginning with the Company if each of the corporations or
entities (other than the last corporation or entity in the unbroken chain) owns stock or other
interests possessing fifty percent (50%) or more of the economic interest or fifty percent (50%) or
more of the total combined voting power of all classes of stock or other interests in one of the
other corporations or entities in the chain.

     “Unrestricted Stock” shall have the meaning set forth in Section 8.

     “Unrestricted Stock Award” means Awards granted pursuant to Section 8.

2

 

SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS

     (a) Administration of Plan. The Plan shall be administered by the Board, or at the
discretion of the Board, by a committee of the Board, comprised, except as contemplated by
Section 2(c), of not less than two (2) Directors. All references herein to the “Committee” shall
be deemed to refer to the group then responsible for administration of the Plan at the relevant
time (i.e., either the Board of Directors or a committee or committees of the Board, as
applicable).

     (b) Powers of Committee. The Committee shall have the power and authority to grant
Awards consistent with the terms of the Plan, including the power and authority:

          (i) to select the individuals to whom Awards may from time to time be granted;

          (ii) to determine the time or times of grant, and the extent, if any, of Incentive Stock
Options, Non-Qualified Stock Options, Restricted Stock Awards, Restricted Stock Units, Unrestricted
Stock Awards, or any combination of the foregoing, granted to any one or more grantees;

          (iii) to determine the number of shares of Stock to be covered by any Award;

          (iv) to determine and modify from time to time the terms and conditions, including
restrictions, not inconsistent with the terms of the Plan, of any Award, which terms and conditions
may differ among individual Awards and grantees, and to approve the form of written instruments
evidencing the Awards;

          (v) to accelerate at any time the exercisability or vesting of all or any portion of any
Award;

          (vi) to impose any limitations on Awards granted under the Plan, including limitations on
transfers, repurchase provisions and the like and to exercise repurchase rights or obligations;

          (vii) subject to the provisions of Section 5(a)(ii), to extend at any time the period in which
Stock Options may be exercised; and

          (viii) at any time to adopt, alter and repeal such rules, guidelines and practices for
administration of the Plan and for its own acts and proceedings as it shall deem advisable; to
interpret the terms and provisions of the Plan and any Award (including related written
instruments); to make all determinations it deems advisable for the administration of the Plan; to
decide all disputes arising in connection with the Plan; and to otherwise supervise the
administration of the Plan.

     All decisions and interpretations of the Committee shall be binding on all persons, including
the Company and Plan grantees.

3

 

     (c) Delegation of Authority to Grant Awards. The Committee, in its discretion, may
delegate to the Chief Executive Officer of the Company all or part of the Committee’s authority and
duties with respect to the granting of Awards at Fair Market Value, and in the event of such
delegation, such Chief Executive Officer shall be deemed a one-person Committee of the Board. Any
such delegation by the Committee shall include a limitation as to the amount of Awards that may be
granted during the period of the delegation and shall contain guidelines as to the determination of
the exercise price of any Option, the conversion ratio or price of other Awards and the vesting
criteria. The Committee may revoke or amend the terms of a delegation at any time but such action
shall not invalidate any prior actions of the Committee’s delegate or delegates that were
consistent with the terms of the Plan.

     (d) Indemnification. Neither the Board nor the Committee, nor any member of either or
any delegatee thereof, shall be liable for any act, omission, interpretation, construction or
determination made in good faith in connection with the Plan, and the members of the Board and the
Committee (and any delegatee thereof) shall be entitled in all cases to indemnification and
reimbursement by the Company in respect of any claim, loss, damage or expense (including, without
limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent
permitted by law and/or under any directors’ and officers’ liability insurance coverage which may
be in effect from time to time.

     (e) Deferral Arrangement. The Committee may establish rules and procedures, in each
case in compliance with Section 409A of the Code, setting forth the circumstances under which the
distribution or the receipt of Stock and other amounts payable with respect to an Award shall be
deferred either automatically or at the election of the grantee and whether and to what extent the
Company shall pay or credit amounts constituting interest (at rates determined by the Committee) or
dividends or deemed dividends on such deferrals.

SECTION 3. STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

     (a) Stock Issuable. The maximum number of shares of Stock reserved and available for
issuance under the Plan shall be 6,400,000 shares of Common Stock, subject to adjustment as
provided in Section 3(b). For purposes of this limitation, the shares of Stock underlying any
Awards which are forfeited, canceled, reacquired by the Company, satisfied without the issuance of
Stock or otherwise terminated (other than by exercise) shall be added back to the shares of Stock
available for issuance under the Plan. Subject to such overall limitation, shares of Stock may be
issued up to such maximum number pursuant to any type or types of Award; provided,
however, that from and after the date the Company becomes subject to the deduction limit
imposed by Section 162(m) of the Code, Stock Options with respect to no more than 4,141,903 shares
of Stock may be granted to any one individual grantee during any one (1) calendar year period. The
shares available for issuance under the Plan may be authorized but unissued shares of Stock or
shares of Stock reacquired by the Company and held in its treasury.

     (b) Changes in Stock. Subject to Section 3(c) hereof, if, as a result of any
reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar change in the Company’s capital stock, the outstanding shares of Stock are
increased or decreased or are exchanged for a different number or kind of shares or other
securities of the Company, or additional shares or new or different shares or other securities of

4

 

the Company or other non-cash assets are distributed with respect to such shares of Stock or
other securities, or, if, as a result of any merger, consolidation or sale of all or substantially
all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged
for a different number or kind of securities of the Company or any successor entity (or a parent or
subsidiary thereof), the Committee shall make an appropriate or proportionate adjustment in (i) the
maximum number of shares reserved for issuance under the Plan, (ii) the number of Stock Options
that can be granted to any one individual grantee, (iii) the number and kind of shares or other
securities subject to any then outstanding Awards under the Plan, (iv) the repurchase price per
share subject to each outstanding Restricted Stock Award, and (v) the exercise price and/or
exchange price for each share subject to any then outstanding Stock Options under the Plan, without
changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock
Options ) as to which such Stock Options remain exercisable. The adjustment by the Committee shall
be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan
resulting from any such adjustment, but the Committee in its discretion may make a cash payment in
lieu of fractional shares.

     The Committee may also adjust the number of shares subject to outstanding Awards and the
exercise price and the terms of outstanding Awards to take into consideration material changes in
accounting practices or principles, extraordinary dividends, acquisitions or dispositions of stock
or property or any other event if it is determined by the Committee that such adjustment is
appropriate to avoid distortion in the operation of the Plan, provided that no such
adjustment shall be made in the case of an Incentive Stock Option, without the consent of the
grantee, if it would constitute a modification, extension or renewal of the Option within the
meaning of Section 424(h) of the Code.

     (c) Mergers and Other Sale Events. In the case of and subject to the consummation of
(i) the dissolution or liquidation of the Company, (ii) the sale of all or substantially all of the
assets of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger,
reorganization or consolidation in which the outstanding shares of Stock are converted into or
exchanged for securities of the successor entity and the holders of the Company’s outstanding
voting power immediately prior to such transaction do not own a majority of the outstanding voting
power of the successor entity immediately upon completion of such transaction, (iv) the sale of all
or a majority of the outstanding capital stock of the Company to an unrelated person or entity or
(v) any other transaction in which, the owners of the Company’s outstanding voting power prior to
such transaction do not own at least a majority of the outstanding voting power of the successor
entity immediately upon completion of the transaction (in each case, regardless of the form
thereof, a “Sale Event”), unless otherwise provided in the Award agreement, the Plan and all
outstanding Options issued hereunder shall terminate upon the effective time of any such Sale
Event, unless provision is made in connection with such transaction in the sole discretion of the
parties thereto for the assumption or continuation of Options theretofore granted (after taking
into account any acceleration hereunder) by the successor entity, or the substitution of such
Options with new Options of the successor entity or a parent or subsidiary thereof, with such
adjustment as to the number and kind of shares and the per share exercise prices as such parties
shall agree (after taking into account any acceleration, if any, hereunder). In the event of such
termination, each grantee shall be permitted, within a specified period of time prior to the
consummation of the Sale Event as determined by the Committee, to exercise all outstanding Options
held by such grantee which are then exercisable or will become exercisable as of the

5

 

effective time of the Sale Event; provided, however, that the exercise of
Options not exercisable prior to the Sale Event shall be subject to the consummation of the Sale
Event. The treatment of Restricted Stock Awards and Restricted Stock Units in connection with any
such transaction shall be as specified in the relevant Award agreement

     (d) Substitute Awards. The Committee may grant Awards under the Plan in substitution
for stock and stock based awards held by employees, directors or other key persons of another
corporation in connection with a merger or consolidation of the employing corporation with the
Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of
the employing corporation. The Committee may direct that the substitute awards be granted on such
terms and conditions as the Committee considers appropriate in the circumstances. Any substitute
Awards granted under the Plan shall not count against the share limitation set forth in
Section 3(a).

SECTION 4. ELIGIBILITY

     Grantees in the Plan will be such full or part-time officers, employees, directors,
consultants and other key persons (including prospective employees) of the Company and its
Subsidiaries who are responsible for, or contribute to, the management, growth or profitability of
the Company and its Subsidiaries as are selected from time to time by the Committee in its sole
discretion.

SECTION 5. STOCK OPTIONS

     Any Stock Option granted under the Plan shall be pursuant to a Stock Option Agreement which
shall be in such form as the Committee may from time to time approve. Option agreements need not
be identical.

     Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified
Stock Options. Incentive Stock Options may be granted only to employees of the Company or any
Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code. To
the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a
Non-Qualified Stock Option.

     No Incentive Stock Option shall be granted under the Plan after the date which is ten (10)
years from the date the Plan is approved by the Board.

     (a) Terms of Stock Options. Stock Options granted under the Plan shall be subject to
the following terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable. If the Committee
so determines, Stock Options may be granted in lieu of cash compensation at the grantee’s election,
subject to such terms and conditions as the Committee may establish, as well as in addition to
other compensation.

          (i) Exercise Price. The exercise price per share for the Stock covered by a Stock
Option shall be determined by the Committee at the time of grant but shall not be less than one
hundred percent (100%) of the Fair Market Value on the date of grant. If an employee owns or is
deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than

6

 

ten percent (10%) of the combined voting power of all classes of stock of the Company or any
parent or subsidiary corporation and an Incentive Stock Option is granted to such employee, the
option price of such Incentive Stock Option shall be not less than one hundred ten percent (110%)
of the Fair Market Value on the grant date.

          (ii) Option Term. The term of each Stock Option shall be fixed by the Committee, but
no Stock Option shall be exercisable more than ten (10) years after the date the Stock Option is
granted. If an employee owns or is deemed to own (by reason of the attribution rules of
Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes
of stock of the Company or any parent or subsidiary corporation and an Incentive Stock Option is
granted to such employee, the term of such Stock Option shall be no more than five (5) years from
the date of grant.

          (iii) Exercisability; Rights of a Stockholder. Stock Options shall become exercisable
at such time or times, whether or not in installments, as shall be determined by the Committee at
or after the grant date. The Committee may at any time accelerate the exercisability of all or any
portion of any Stock Option. An optionee shall have the rights of a stockholder only as to shares
acquired upon the exercise of a Stock Option and not as to unexercised Stock Options.

          (iv) Method of Exercise. Stock Options may be exercised in whole or in part, by
giving written notice of exercise to the Company, specifying the number of shares to be purchased.
Payment of the purchase price may be made by one or more of the following methods to the extent
provided in the Award agreement or as otherwise provided by the Committee:

          (A) In cash, by certified or bank check, or other instrument acceptable to the
Committee in U.S. funds payable to the order of the Company in an amount equal to the
purchase price of such Option Shares;

          (B) If permitted by the Committee, through the delivery (or attestation to the
ownership) of shares of Stock that have been purchased by the optionee on the open market
or, subject to any length of ownership requirement that the Committee shall establish, shares of Stock that are beneficially owned by the optionee and are not then subject to
restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market
Value on the exercise date;

          (C) If permitted by the Committee, by the optionee delivering to the Company a properly
executed exercise notice together with irrevocable instructions to a broker to promptly
deliver to the Company cash or a check payable and acceptable to the Company to pay the
purchase price; provided that in the event the optionee chooses to pay the
purchase price as so provided, the optionee and the broker shall comply with such procedures
and enter into such agreements of indemnity and other agreements as the Committee shall
prescribe as a condition of such payment procedure.

     Payment instruments will be received subject to collection. No certificates for shares of
Stock so purchased will be issued to optionee until the Company has completed all steps required

7

 

by law to be taken in connection with the issuance and sale of the shares, including without
limitation (i) receipt of a representation from the optionee at the time of exercise of the Option
that the optionee is purchasing the shares for the optionee’s own account and not with a view to
any sale or distribution thereof, (ii) the legending of any certificate representing the shares to
evidence the foregoing representations and restrictions, and (iii) obtaining from optionee payment
or provision for all withholding taxes due as a result of the exercise of the Option. The delivery
of certificates representing the shares of Stock to be purchased pursuant to the exercise of a
Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his or her
stead in accordance with the provisions of the Stock Option) by the Company of the full purchase
price for such shares and the fulfillment of any other requirements contained in the Option Award
agreement or applicable provisions of laws. In the event an optionee chooses to pay the purchase
price by previously-owned shares of Stock through the attestation method, the shares of Stock
transferred to the optionee upon the exercise of the Stock Option shall be net of the number of
shares attested to.

     (b) Annual Limit on Incentive Stock Options. To the extent required for “incentive
stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined
as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options
granted under this Plan and any other plan of the Company or its parent and Subsidiary corporations
become exercisable for the first time by an optionee during any calendar year shall not exceed
$100,000. To the extent that any Stock Option exceeds this limit, it shall constitute a
Non-Qualified Stock Option.

     (c) Non-transferability of Options. No Stock Option shall be transferable by the
optionee otherwise than by will or by the laws of descent and distribution and all Stock Options
shall be exercisable, during the optionee’s lifetime, only by the optionee, or by the optionee’s
legal representative or guardian in the event of the optionee’s incapacity. Notwithstanding the
foregoing, the Committee, in its sole discretion, may provide in the Award agreement regarding a
given Option that the optionee may transfer, without consideration for the transfer, his or her
Non-Qualified Stock Options to members of his or her immediate family, to trusts for the benefit of
such family members, or to partnerships in which such family members are the only partners,
provided that the transferee agrees in writing with the Company to be bound by all
of the terms and conditions of this Plan and the applicable Option.

SECTION 6. RESTRICTED STOCK AWARDS

     (a) Nature of Restricted Stock Awards. A Restricted Stock Award is an Award pursuant
to which the Company may, in its sole discretion, grant or sell, at such purchase price as
determined by the Committee, in its sole discretion, shares of Stock subject to such restrictions
and conditions as the Committee may determine at the time of grant (“Restricted Stock”), which
purchase price shall be payable in cash or other form of consideration acceptable to the Committee.
Conditions may be based on continuing employment (or other service relationship) and/or
achievement of pre-established performance goals and objectives. The terms and conditions of each
such agreement shall be determined by the Committee, and such terms and conditions may differ among
individual Awards and grantees.

8

 

     (b) Rights as a Stockholder. Upon execution of a written instrument setting forth the
Restricted Stock Award and payment of any applicable purchase price, a grantee shall have the
rights of a stockholder with respect to the voting of the Restricted Stock, subject to such
conditions contained in the written instrument evidencing the Restricted Stock Award. Unless the
Committee shall otherwise determine, certificates evidencing the Restricted Stock shall remain in
the possession of the Company until such Restricted Stock is vested as provided in subsection (d)
below of this Section, and the grantee shall be required, as a condition of the grant, to deliver
to the Company a stock power endorsed in blank.

     (c) Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or
otherwise encumbered or disposed of except as specifically provided herein or in the Restricted
Stock Award agreement. If a grantee’s employment (or other service relationship) with the Company
and its Subsidiaries terminates under the conditions specified in the relevant instrument relating
to the Award, or upon such other event or events as may be stated in the instrument evidencing the
Award, the Company or its assigns shall have the right or shall agree, as may be specified in the
relevant instrument, to repurchase some or all of the shares of Stock subject to the Award at such
purchase price as is set forth in such instrument.

     (d) Vesting of Restricted Stock. The Committee at the time of grant shall specify the
date or dates and/or the attainment of pre-established performance goals, objectives and other
conditions on which Restricted Stock shall become vested, subject to such further rights of the
Company or its assigns as may be specified in the instrument evidencing the Restricted Stock Award.

     (e) Waiver, Deferral and Reinvestment of Dividends. The Restricted Stock Award
agreement may require or permit the immediate payment, waiver, deferral or investment of dividends
paid on the Restricted Stock.

SECTION 7. RESTRICTED STOCK UNITS

     (a) A Restricted Stock Unit is an Award pursuant to which the Company may, in its sole
discretion, grant or sell, at such purchase price as determined by the Committee, in its sole
discretion, a promise to pay the grantee shares of Stock upon the vesting of that Restricted Stock
Unit or a later date determined at the time of grant. The purchase price for the Restricted Stock
Unit shall be payable in cash or other form of consideration acceptable to the Committee.

     (b) Rights as a Stockholder. Prior to the payment of a Restricted Stock Unit, the
grantee shall have no rights in the shares of Stock underlying a Restricted Stock Unit except as
specifically provided in his or her Restricted Stock Unit agreement.

     (c) Restrictions. Restricted Stock Units may not be sold, assigned, transferred,
pledged or otherwise encumbered or disposed of except as specifically provided in the Restricted
Stock Unit agreement. If a grantee’s employment (or other service relationship) with the Company
and its Subsidiaries terminates under the conditions specified in the relevant instrument relating
to the Restricted Stock Unit, or upon such other event or events as may be stated in the instrument
evidencing the Restricted Stock Unit, the Company or its assigns shall have the right or shall
agree, as may be specified in the relevant instrument, to repurchase some

9

 

or all of the shares of Stock issued with respect to such Award at such purchase price as is
set forth in such instrument.

     (d) Vesting of Restricted Stock Units. The Committee at the time of grant shall
specify the date or dates on which Restricted Stock Units shall become vested, subject to such
further rights of the Company or its assigns as may be specified in the instrument evidencing the
Restricted Stock Unit.

     (e) Waiver and Reinvestment of Dividends. The Restricted Stock Unit agreement may
require or permit the immediate payment, waiver or investment of dividends paid on the Restricted
Stock Units.

SECTION 8. UNRESTRICTED STOCK AWARDS

     (a) Grant or Sale of Unrestricted Stock. The Committee may, in its sole discretion,
grant (or sell at par value or such higher purchase price determined by the Committee) an
Unrestricted Stock Award to any grantee, pursuant to which such grantee may receive shares of Stock
free of any vesting restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards
may be granted or sold as described in the preceding sentence in respect of past services or other
valid consideration, or in lieu of any cash compensation due to such individual.

     (b) Elections to Receive Unrestricted Stock In Lieu of Compensation. Upon the request
of a grantee and with the consent of the Committee, each such grantee may, pursuant to an advance
written election delivered to the Company no later than the date specified by the Committee,
receive a portion of the cash compensation otherwise due to such grantee in the form of shares of
Unrestricted Stock either currently or on a deferred basis.

     (c) Restrictions on Transfers. The right to receive shares of Unrestricted Stock on a
deferred basis may not be sold, assigned, transferred, pledged or otherwise encumbered, other than
by will or the laws of descent and distribution.

SECTION 9. TAX WITHHOLDING

     Each grantee shall, no later than the date as of which the value of an Award or of any Stock
or other amounts received thereunder first becomes includable in the gross income of the grantee
for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the
Committee regarding payment of, any federal, state, or local taxes of any kind required by law to
be withheld with respect to such income. The Company and its Subsidiaries shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise
due to the grantee. The Company’s obligation to deliver stock certificates to any grantee is
subject to and conditioned on tax obligations being satisfied by the grantee.

SECTION 10. TRANSFER, LEAVE OF ABSENCE, ETC.

     For purposes of the Plan, the following events shall not be deemed a termination of
employment:

10

 

     (a) a transfer to the employment of the Company from a Subsidiary or from the Company to a
Subsidiary, or from one Subsidiary to another; or

     (b) an approved leave of absence for military service or sickness, or for any other purpose
approved by the Company, if the employee’s right to re-employment is guaranteed either by a statute
or by contract or under the policy pursuant to which the leave of absence was granted or if the
Committee otherwise so provides in writing.

SECTION 11. AMENDMENTS AND TERMINATION

     The Board may, at any time, amend or discontinue the Plan and the Committee may, at any time,
amend or cancel any outstanding Award (or provide substitute Awards at the same or reduced exercise
or purchase price or with no exercise or purchase price in a manner not inconsistent with the terms
of the Plan), but such price, if any, must satisfy the requirements which would apply to the
substitute or amended Award if it were then initially granted under this Plan for the purpose of
satisfying changes in law or for any other lawful purpose, but no such action shall adversely
affect rights under any outstanding Award without the holder’s consent. If and to the extent
determined by the Committee to be required by the Code to ensure that Incentive Stock Options
granted under the Plan are qualified under Section 422 of the Code, Plan amendments shall be
subject to approval by the Company’s stockholders who are eligible to vote at a meeting of
stockholders. Nothing in this Section 11 shall limit the Board’s or Committee’s authority to take
any action permitted pursuant to Section 3(c).

SECTION 12. STATUS OF PLAN

     With respect to the portion of any Award that has not been exercised and any payments in cash,
Stock or other consideration not received by a grantee, a grantee shall have no rights greater than
those of a general creditor of the Company unless the Committee shall otherwise expressly determine
in connection with any Award or Awards. In its sole discretion, the Committee may authorize the
creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make
payments with respect to Awards hereunder, provided that the existence of such
trusts or other arrangements is consistent with the foregoing sentence.

SECTION 13. GENERAL PROVISIONS

     (a) No Distribution; Compliance with Legal Requirements. The Committee may require
each person acquiring Stock pursuant to an Award to represent to and agree with the Company in
writing that such person is acquiring the shares without a view to distribution thereof. No shares
of Stock shall be issued pursuant to an Award until all applicable securities law and other legal
and stock exchange or similar requirements have been satisfied. The Committee may require the
placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it
deems appropriate.

     (b) Delivery of Stock Certificates. Stock certificates to grantees under this Plan
shall be deemed delivered for all purposes when the Company or a stock transfer agent of the
Company shall have mailed such certificates in the United States mail, addressed to the grantee, at
the grantee’s last known address on file with the Company.

11

 

     (c) Other Compensation Arrangements; No Employment Rights. Nothing contained in this
Plan shall prevent the Board from adopting other or additional compensation arrangements, including
trusts, and such arrangements may be either generally applicable or applicable only in specific
cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right
to continued employment with the Company or any Subsidiary.

     (d) Trading Policy Restrictions. Option exercises and other Awards under the Plan
shall be subject to such Company’s insider-trading-policy-related restrictions, terms and
conditions as may be established by the Committee, or in accordance with policies set by the
Committee, from time to time.

     (e) Loans to Award Recipients. The Company shall have the authority, to the extent
permitted by law, to make loans to recipients of Awards hereunder (including to facilitate the
purchase of shares) and shall further have the authority to issue shares for promissory notes
hereunder.

     (f) Designation of Beneficiary. Each grantee to whom an Award has been made under the
Plan may designate a beneficiary or beneficiaries to exercise any Award or receive any payment
under any Award payable on or after the grantee’s death. Any such designation shall be on a form
provided for that purpose by the Administrator and shall not be effective until received by the
Administrator. If no beneficiary has been designated by a deceased grantee, or if the designated
beneficiaries have predeceased the grantee, the beneficiary shall be the grantee’s estate.

SECTION 14. EFFECTIVE DATE OF PLAN

     This Plan, as amended and restated, shall become effective upon approval by the Board.
Subject to such approval by the stockholders and to the requirement that no Stock may be issued
hereunder prior to such approval, Stock Options and other Awards may be granted hereunder on and
after adoption of this Plan by the Board.

SECTION 15. GOVERNING LAW

     This Plan and all Awards and actions taken thereunder shall be governed by Delaware law,
applied without regard to conflict of law principles.

	 	 	 
	ADOPTED BY BOARD OF DIRECTORS:

	 	February 22, 2005
	 
	 	 
	APPROVED BY STOCKHOLDERS:

	 	February 22, 2005
	 
	 	 
	FIRST AMENDMENT AND RESTATEMENT 

ADOPTED BY BOARD OF DIRECTORS:

	 	July 27, 2006
	 
	 	 
	FIRST AMENDMENT AND RESTATEMENT 

APPROVED BY STOCKHOLDERS:

	 	July 27, 2006

12

 

	 	 	 
	SECOND AMENDMENT AND RESTATEMENT 

ADOPTED BY BOARD OF DIRECTORS:

	 	November 10, 2006
	 
	 	 
	SECOND AMENDMENT AND RESTATEMENT 

APPROVED BY STOCKHOLDERS:

	 	November 10, 2006
	 
	 	 
	THIRD AMENDMENT AND RESTATEMENT 

ADOPTED BY BOARD OF DIRECTORS:

	 	February 2, 2007
	 
	 	 
	THIRD AMENDMENT AND RESTATEMENT 

APPROVED BY STOCKHOLDERS:

	 	February 2, 2007

13

 

Incentive Stock Option Agreement

under the YesDirect, Inc.

2005 Stock Option and Grant Plan

	 	 	 
	Name of Optionee:

	 	                     (the “Optionee”)
	 
	 	 
	No. of Option Shares:

	 	                     Shares of Common Stock
	 
	 	 
	Grant Date:

	 	                    , 2005 (the “Grant Date”)
	 
	 	 
	Expiration Date:

	 	                    , 2015 (the “Expiration Date”)
	 
	 	 
	Vesting Start Date:

	 	                    , 2015 (the “Vesting Start Date”)
	 
	 	 
	Option Exercise Price/Share:

	 	$                     (the “Option Exercise Price”)

     Pursuant to the YesDirect, Inc. 2005 Stock Option and Grant Plan (the “Plan”), YesDirect,
Inc., a Delaware corporation formerly known as BuyDomains Holdings, Inc. (together with all
successors thereto, the “Company”), hereby grants to the Optionee, who is an employee of the
Company or any of its Subsidiaries, an option (the “Stock Option”) to purchase on or prior to the
Expiration Date, or such earlier date as is specified herein, all or any part of the number of
shares of Common Stock, par value $0.001 per share (“Common Stock”), of the Company indicated above
(the “Option Shares,” and such shares once issued shall be referred to as the “Issued Shares”), at
the Option Exercise Price per share, subject to the terms and conditions set forth in this
Incentive Stock Option Agreement (this “Agreement”) and in the Plan. This Stock Option is intended
to qualify as an “incentive stock option” as defined in Section 422(b) of the Internal Revenue Code
of 1986, as amended from time to time (the “Code”). To the extent that any portion of the Stock
Option does not so qualify, it shall be deemed a non-qualified stock option.

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the following respective meanings. All capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the Plan.

          “Affiliate” shall mean, with respect to any Person, a Person that directly or
indirectly, through one or more intermediaries, controls, is controlled by or is under common
control with the first mentioned Person. A Person shall be deemed to control another Person if
such first Person possesses directly or indirectly the power to direct, or cause the direction of,
the management and policies of the second Person, whether through the ownership of voting
securities, by contract or otherwise.

          “Bankruptcy” shall mean (i) the filing of a voluntary petition under any bankruptcy or
insolvency law, or a petition for the appointment of a receiver or the making of an assignment for
the benefit of creditors, with respect to the Optionee or any Permitted Transferee, or (ii) the
Optionee or any Permitted Transferee being subjected involuntarily to such a petition or assignment
or to an attachment or other legal or equitable interest with respect to the

 

 

Optionee’s or such Permitted Transferee’s assets, which involuntary petition or assignment or
attachment is not discharged within 60 days after its date, and (iii) the Optionee or any Permitted
Transferee being subject to a transfer of the Stock Option or the Issued Shares by operation of law
(including by divorce, even if not insolvent), except by reason of death.

          “Cause” shall mean (i) failure to perform to the reasonable satisfaction of the Board
a substantial portion of the Optionee’s duties and responsibilities, which failure continues, in
the reasonable judgment of the Board, after written notice given to the Optionee by the Board; (ii)
disloyalty, gross negligence, dishonesty, or breach of fiduciary duty; (iii) the commission by the
Optionee of an act of fraud, embezzlement or deliberate disregard of the rules or policies of the
Company, the commission by the Optionee of any other action which injures the Company, or his
misappropriation of any money or other assets or property (whether tangible or intangible); (iv)
the commission by or indictment of the Optionee for (A) a felony or (B) any misdemeanor involving
moral turpitude, deceit, dishonesty or fraud (“indictment,” for these purposes, meaning an
indictment, probable cause hearing or any other procedure pursuant to which an initial
determination of probable or reasonable cause with respect to such offense is made); or (v) the
commission of an act which constitutes unfair competition with the Company or which induces any
customer or supplier of the Company to breach a contract with the Company.

          “Permitted Transferees” shall mean any of the following Persons to whom the Optionee
may transfer Issued Shares hereunder (as set forth in Section 8): the Optionee’s spouse, children
(natural or adopted), stepchildren or a trust for their sole benefit of which the Optionee is the
settlor; provided, however, that any such trust does not require or permit
distribution of any Issued Shares during the term of this Agreement unless subject to its terms.
Upon the death of the Optionee (or a Permitted Transferee to whom shares have been transferred
hereunder), the term Permitted Transferees shall also include such deceased Optionee’s (or such
deceased Permitted Transferee’s) estate, executors, administrators, personal representatives,
heirs, legatees and distributees, as the case may be.

          “Person” shall mean any individual, corporation, partnership (limited or general),
limited liability company, limited liability partnership, association, trust, joint venture,
unincorporated organization or any similar entity.

          “Sale Event” shall mean, regardless of form thereof, consummation of (i) the
dissolution or liquidation of the Company, (ii) the sale of all or substantially all of the assets
of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger,
reorganization or consolidation in which the outstanding shares of Stock are converted into or
exchanged for securities of the successor entity and the holders of the Company’s outstanding
voting power immediately prior to such transaction do not own a majority of the outstanding voting
power of the successor entity immediately upon completion of such transaction, (iv) the sale of all
or a majority of the outstanding capital stock of the Company to an unrelated person or entity or
(v) any other transaction in which the owners of the Company’s outstanding voting power immediately
prior to such transaction do not own at least a majority of the outstanding voting power of the
successor entity immediately upon completion of the transaction; provided, however,
that the consummation of a public offering of shares of capital stock by the Company shall in no
event be deemed a Sale Event.

2

 

          “Subsidiary” shall mean any corporation or other entity (other than the Company) in
any unbroken chain of corporations or other entities beginning with the Company if each of the
corporations or other entities (other than the last corporation in the unbroken chain) owns stock
or other interests possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock or other equity interests or in one of the other corporations or other entities in
the chain.

     2. Vesting, Exercisability and Termination.

          (a) No portion of this Stock Option may be exercised until such portion shall have vested.

          (b) Except as set forth below, and subject to the determination of the Committee in its sole
discretion to accelerate the vesting schedule hereunder, this Stock Option shall be vested and
exercisable with respect to the Option Shares over a four year period as follows:

          (i) All Option Shares shall initially be unvested;

          (ii) Twenty-five percent (25%) of the Option Shares shall vest on the first anniversary
of the date of the Vesting Start Date, provided the Optionee continues to be employed by the
Company at such time; and

          (iii) Thereafter, the remaining seventy-five percent of the Option Shares shall vest in
thirty-six (36) equal monthly installments at the end of each month following the first
anniversary of the Vesting Start Date, provided the Optionee continues to be employed by the
Company at such time.

          (c) Termination. Except as may otherwise be provided by the Committee, if the
Optionee’s employment with the Company or a Subsidiary is terminated, the period within which to
exercise this Stock Option will be subject to earlier termination as set forth below (and if not
exercised within such period, shall thereafter terminate):

          (i) Termination Due to Death, Disability or Retirement. If the Optionee’s
employment terminates by reason of such Optionee’s death, disability (as defined in
Section 422(c) of the Code) or retirement (after attainment of age 60), this Stock Option
may be exercised, to the extent exercisable on the date of such termination, by the
Optionee, the Optionee’s legal representative or legatee for a period of twelve (12) months
from the date of death, disability or retirement or until the Expiration Date, if earlier.

          (ii) Other Termination. If the Optionee’s employment terminates for any reason
other than death, disability or retirement (after attainment of age 60), and unless
otherwise determined by the Committee, this Stock Option may be exercised, to the extent
exercisable on the date of termination, for a period of ninety (90) days from the date of
termination or until the Expiration Date, if earlier; provided however, if
the Optionee’s employment is terminated for Cause, this Stock Option shall terminate

3

 

immediately upon the date of such termination and shall not be exercisable (whether
vested or not).

     For purposes hereof, the Committee’s determination of the reason for termination of the
Optionee’s employment shall be conclusive and binding on the Optionee and his or her
representatives or legatees or Permitted Transferees. Any portion of this Stock Option that is not
exercisable on the date of termination of employment shall terminate immediately and be null and
void.

          (d) It is understood and intended that this Stock Option is intended to qualify as an
“incentive stock option” as defined in Section 422 of the Code to the extent permitted under
applicable law. Accordingly, the Optionee understands that in order to obtain the benefits of an
incentive stock option under Section 422 of the Code, no sale or other disposition may be made of
Issued Shares for which incentive stock option treatment is desired within the one-year period
beginning on the day after the day of the transfer of such Issued Shares to him or her, nor within
the two-year period beginning on the day after the grant of this Stock Option and further that this
Stock Option must be exercised within three (3) months after termination of employment as an
employee (or twelve (12) months in the case of death or disability) to qualify as an incentive
stock option. If the Optionee disposes (whether by sale, gift, transfer or otherwise) of any such
Issued Shares within either of these periods, he or she will notify the Company within thirty (30)
days after such disposition. The Optionee also agrees to provide the Company with any information
concerning any such dispositions required by the Company for tax purposes. Further, to the extent
Option Shares and any other incentive stock options of the Optionee having an aggregate fair market
value in excess of $100,000 (determined as of the Grant Date) vest in any year, such options will
not qualify as incentive stock options.

     3. Exercise of Stock Option.

          (a) The Optionee may exercise this Stock Option only in the following manner: Prior to the
Expiration Date, the Optionee may deliver a Stock Option exercise notice (an “Exercise Notice”) in
the form of Appendix A hereto indicating his or her election to purchase some or all of the
Option Shares with respect to which this Stock Option is exercisable at the time of such notice
together with a joinder agreement to each of (x) that certain Stockholders’ Voting Agreement, dated
as February 18, 2005 by and among the Company and the stockholders named therein, as amended from
time to time and (y) that certain Stock Restriction Agreement, dated as of February 18, 2005 by and
among the Company and the stockholders named therein, as amended from time to time (the “Stock
Restriction Agreement”), in form reasonably satisfactory to the Company. Such notice shall specify
the number of Option Shares to be purchased. Payment of the purchase price may be made by one or
more of the methods described below:

     (i) in cash, by certified or bank check, or other instrument acceptable to the
Committee in U.S. funds payable to the order of the Company in an amount equal to the
purchase price of such Option Shares; or

     (ii) if the Initial Public Offering has occurred, then (A) through the delivery (or
attestation to ownership) of shares of Common Stock that have been

4

 

purchased by the Optionee on the open market or that have been held by the Optionee for
at least six (6) months and are not subject to restrictions under any plan of the Company
and in any event with an aggregate Fair Market Value (as of the date of such exercise) equal
to the option purchase price, (B) by the Optionee delivering to the Company a properly
executed Exercise Notice together with irrevocable instructions to a broker to promptly
deliver to the Company cash or a check payable and acceptable to the Company to pay the
option purchase price, provided that in the event the Optionee chooses to pay the option
purchase price as so provided, the Optionee and the broker shall comply with such procedures
and enter into such agreements of indemnity and other agreements as the Committee shall
prescribe as a condition of such payment procedure, or (C) a combination of (i), (ii)(A) and
(ii)(B) above.

          (b) Certificates for the Option Shares so purchased will be issued and delivered to the
Optionee upon compliance to the satisfaction of the Committee with all requirements under
applicable laws or regulations in connection with such issuance. Until the Optionee shall have
complied with the requirements hereof and of the Plan, the Company shall be under no obligation to
issue the Option Shares subject to this Stock Option, and the determination of the Committee as to
such compliance shall be final and binding on the Optionee. The Optionee shall not be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock
subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant
to the terms hereof, the Company shall have issued and delivered the Issued Shares to the Optionee,
and the Optionee’s name shall have been entered as a stockholder of record on the books of the
Company. Thereupon, the Optionee shall have full dividend and other ownership rights with respect
to such Issued Shares, subject to the terms of this Agreement.

          (c) Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option
shall be exercisable after the Expiration Date.

     4. Incorporation of Plan. Notwithstanding anything herein to the contrary, this Stock
Option shall be subject to and governed by all the terms and conditions of the Plan.

     5. Transferability of Stock Option. This Agreement is personal to the Optionee and is
not transferable by the Optionee in any manner other than by will or by the laws of descent and
distribution. The Stock Option may be exercised during the Optionee’s lifetime only by the
Optionee (or by the Optionee’s guardian or personal representative in the event of the Optionee’s
incapacity). The Optionee may elect to designate a beneficiary by providing written notice of the
name of such beneficiary to the Company, and may revoke or change such designation at any time by
filing written notice of revocation or change with the Company; such beneficiary may exercise the
Optionee’s Stock Option in the event of the Optionee’s death to the extent provided herein. If the
Optionee does not designate a beneficiary, or if the designated beneficiary predeceases the
Optionee, the legal representative of the Optionee may exercise this Stock Option to the extent
provided herein in the event of the Optionee’s death.

     6. Effect of Certain Transactions. In the case of a Sale Event, this Stock Option
shall terminate upon the effective time of any such Sale Event unless provision is made in
connection with such transaction in the sole discretion of the parties thereto for the continuation

5

 

or assumption of this Stock Option heretofore granted, or the substitution of this Stock
Option with a new Stock Option of the successor entity or a parent thereof, with such adjustment as
to the number and kind of shares and the per share exercise prices as such parties shall agree. In
the event of such termination, the Optionee shall be permitted, for a specified period of time
prior to the consummation of the Sale Event as determined by the Committee, to exercise all
portions of the Stock Option which are then exercisable. Notwithstanding anything to the contrary
in this Agreement or in the Plan, in the event of a Sale Event pursuant to which holders of the
Stock of the Company will receive upon consummation thereof a cash payment for each share
surrendered in the Sale Event, the Company shall have the right, but not the obligation, to make or
provide for a cash payment to the Optionees holding vested Options, in exchange for the
cancellation thereof, in an amount equal to the difference between (a) the value as determined by
the Committee of the consideration payable per share of Stock pursuant to the Sale Event (the “Sale
Price”) times the number of shares of Stock subject to such outstanding Options (to the extent then
exercisable at prices not in excess of the Sale Price) and (b) the aggregate exercise price of all
such outstanding Options..

     7. Withholding Taxes. The Optionee shall, not later than the date as of which the
exercise of this Stock Option becomes a taxable event for federal income tax purposes, pay to the
Company or make arrangements satisfactory to the Committee for payment of any federal, state and
local taxes required by law to be withheld on account of such taxable event. The Optionee
acknowledges and agrees that the Company or any Subsidiary of the Company has the right to deduct
from payments of any kind otherwise due to the Optionee, or from the Option Shares to be issued in
respect of an exercise of this Stock Option, any federal, state or local taxes of any kind required
by law to be withheld with respect to the issuance of Option Shares to the Optionee.

     8. Restrictions on Transfer of Issued Shares. None of the Issued Shares acquired upon
exercise of the Stock Option shall be sold, assigned, transferred, pledged, hypothecated, given
away or in any other manner disposed of or encumbered, whether voluntarily or by operation of law,
unless such transfer is in compliance with all applicable securities laws (including, without
limitation, the Securities Act of 1933, as amended, and the rules and regulations thereunder (the
“Act”)), and such disposition is in accordance with the terms and conditions of Sections 8 and 9
hereof and such disposition does not cause the Company to become subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended. In connection with any transfer
of Issued Shares, the Company may require the transferor to provide at the Optionee’s own expense
an opinion of counsel to the transferor, satisfactory to the Company, that such transfer is in
compliance with all foreign, federal and state securities laws (including, without limitation, the
Act). Any attempted disposition of Issued Shares not in accordance with the terms and conditions
of Sections 8 and 9 hereof shall be null and void, and the Company shall not reflect on its records
any change in record ownership of any Issued Shares as a result of any such disposition, shall
otherwise refuse to recognize any such disposition and shall not in any way give effect to any such
disposition of any Issued Shares. Subject to the foregoing general provisions, Issued Shares may
be transferred pursuant to the following specific terms and conditions:

          (a) Transfers to Permitted Transferees. The Optionee may sell, assign, transfer or
give away any or all of the Issued Shares to Permitted Transferees; provided,

6

 

however, that such Permitted Transferee(s) shall, as a condition to any such transfer,
agree to be subject to the provisions of this Agreement to the same extent as the Optionee
(including, without limitation, the provisions of Sections 8, 9, 10, 11 and 12) and shall have
delivered a written acknowledgment to that effect to the Company.

          (b) Transfers Upon Death. Upon the death of the Optionee, any Issued Shares then held
by the Optionee at the time of such death and any Issued Shares acquired thereafter by the
Optionee’s legal representative pursuant to this Agreement shall be subject to the provisions of
Sections 8, 9, 10, 11 and 12, if applicable, and the Optionee’s estate, executors, administrators,
personal representatives, heirs, legatees and distributees shall be obligated to convey such Issued
Shares to the Company or its assigns under the terms contemplated hereby.

          (c) Company’s Right of First Refusal. In the event that the Optionee (or any
Permitted Transferee holding Issued Shares subject to this Section 8(c)) desires to sell or
otherwise transfer all or any part of the Issued Shares (other than to a Permitted Transferee), the
Optionee (or Permitted Transferee) first shall give written notice to the Company of the Optionee’s
(or Permitted Transferee’s) intention to make such transfer. Such notice shall state the number of
Issued Shares which the Optionee (or Permitted Transferee) proposes to sell (the “Offered Shares”),
the price and the terms at which the proposed sale is to be made and the name and address of the
proposed transferee. At any time within 30 days after the receipt of such notice by the Company,
the Company or its assigns may elect to purchase all or any portion of the Offered Shares at the
price and on the terms offered by the proposed transferee and specified in the notice (subject to
the rights of other Persons to purchase the Offered Shares pursuant to the Stock Restriction
Agreement). The Company or its assigns shall exercise this right by mailing or delivering written
notice to the Optionee (or Permitted Transferee) within the foregoing 30-day period. If the
Company or its assigns elect to exercise its purchase rights under this Section 8(c), the closing
for such purchase shall, in any event, take place within 45 days after the receipt by the Company
of the initial notice from the Optionee (or Permitted Transferee). Subject to the Stock
Restriction Agreement, in the event that the Company or its assigns do not elect to exercise such
purchase right, or in the event that the Company or its assigns do not pay the full purchase price
within such 45-day period, the Optionee (or Permitted Transferee) may, at any time within 60 days
after the receipt by the Company of the initial notice from the Optionee (or Permitted Transferee),
sell the Offered Shares to the proposed transferee and at the same price and on the same terms as
specified in the Optionee’s (or Permitted Transferee’s) notice; provided, that the Optionee
has complied in all respects with the applicable provisions of the Stock Restriction Agreement.
Any Shares purchased by such proposed transferee shall be deemed held by a Permitted Transferee and
accordingly shall remain subject to the terms of this Agreement, including without limitation, the
provisions of Sections 8, 9, 10, 11 and 12 hereof to the same extent as if the Optionee continued
to hold them. Any Shares not sold to the proposed transferee shall remain subject to this
Agreement. Notwithstanding the foregoing, the restrictions under this Section 8(c) shall terminate
in accordance with Section 13(a).

     9. Company’s Right of Repurchase.

          (a) Right of Repurchase. The Company shall have the right (the “Repurchase Right”)
upon the occurrence of any of the events specified in Section 9(b) below (the “Repurchase Event”)
to repurchase from the Optionee (or any Permitted Transferee) some or all

7

 

(as determined by the Company) of the Issued Shares held or subsequently acquired upon
exercise of this Stock Option in accordance with the terms hereof by the Optionee (or any Permitted
Transferee) at the price per share specified below. The Repurchase Right may be exercised by the
Company within the later of (i) six (6) months following the date of such event or (ii) seven (7)
months after the exercise of this Stock Option (the “Repurchase Period”). The Repurchase Right
shall be exercised by the Company by giving the holder written notice on or before the last day of
the Repurchase Period of its intention to exercise the Repurchase Right, and, together with such
notice, tendering to the holder an amount equal to the Fair Market Value of the shares, determined
as provided in Section 9(c). The Company may assign the Repurchase Right to one or more Persons.
Upon such notification, the Optionee and any Permitted Transferees shall promptly surrender to the
Company any certificates representing the Issued Shares being purchased, together with a duly
executed stock power for the transfer of such Issued Shares to the Company or the Company’s
assignee or assignees. Upon the Company’s or its assignee’s receipt of the certificates from the
Optionee or any Permitted Transferees, the Company or its assignee or assignees shall deliver to
him, her or them a check for the Repurchase Price of the Issued Shares being purchased;
provided, however, that the Company may pay the Repurchase Price for such shares by
offsetting and canceling any indebtedness then owed by the Optionee to the Company. At such time,
the Optionee and/or any holder of the Issued Shares shall deliver to the Company the certificate or
certificates representing the Issued Shares so repurchased, duly endorsed for transfer, free and
clear of any liens or encumbrances. The Repurchase Right shall terminate in accordance with
Section 13(a).

          (b) Company’s Right to Exercise Repurchase Right. The Company shall have the
Repurchase Right in the event that any of the following events shall occur:

          (i) The termination of the Optionee’s employment with the Company and its Subsidiaries
for any reason whatsoever, regardless of the circumstances thereof, and including without
limitation upon death, disability, retirement, discharge or resignation for any reason,
whether voluntarily or involuntarily; or

          (ii) The Optionee’s or Permitted Transferee’s Bankruptcy.

          (c) Determination of Fair Market Value. The repurchase price (the “Repurchase Price”)
shall be the fair market value of the Issued Shares which, for purposes of this Section 9, shall be
determined by the Board as of the date the Board elects to exercise its repurchase rights in
connection with a Repurchase Event.

     10. Escrow Arrangement.

          (a) Escrow. In order to carry out the provisions of Sections 8, 9 and 11 of this
Agreement more effectively, the Company shall hold any Issued Shares in escrow together with
separate stock powers executed by the Optionee in blank for transfer, and any Permitted Transferee
shall, as an additional condition to any transfer of Issued Shares, execute a like stock power as
to such Issued Shares. The Company shall not dispose of the Issued Shares except as otherwise
provided in this Agreement. In the event of any repurchase by the Company (or any of its assigns),
the Company is hereby authorized by the Optionee and any Permitted Transferee, as the Optionee’s
and each such Permitted Transferee’s attorney-in-fact, to date and complete the

8

 

stock powers necessary for the transfer of the Issued Shares being purchased and to transfer
such Issued Shares in accordance with the terms hereof. At such time as any Issued Shares are no
longer subject to the Company’s repurchase, first refusal and drag along rights, the Company shall,
at the written request of the Optionee, deliver to the Optionee (or the relevant Permitted
Transferee) a certificate representing such Issued Shares with the balance of the Issued Shares to
be held in escrow pursuant to this Section 10.

          (b) Remedy. Without limitation of any other provision of this Agreement or other
rights, in the event that the Optionee, any Permitted Transferees or any other person or entity is
required to sell the Optionee’s Issued Shares pursuant to the provisions of Sections 8, 9 and 11 of
this Agreement and in the further event that he or she refuses or for any reason fails to deliver
to the Company or its designated purchaser of such Issued Shares the certificate or certificates
evidencing such Issued Shares together with a related stock power, the Company or such designated
purchaser may deposit the applicable purchase price for such Issued Shares with a bank designated
by the Company, or with the Company’s independent public accounting firm, as agent or trustee, or
in escrow, for the Optionee, any Permitted Transferees or other person or entity, to be held by
such bank or accounting firm for the benefit of and for delivery to him, her, them or it, and/or,
in its discretion, pay such purchase price by offsetting any indebtedness then owed by the Optionee
as provided above. Upon any such deposit and/or offset by the Company or its designated purchaser
of such amount and upon notice to the person or entity who was required to sell the Issued Shares
to be sold pursuant to the provisions of Sections 8, 9 and 11, such Issued Shares shall at such
time be deemed to have been sold, assigned, transferred and conveyed to such purchaser, the holder
thereof shall have no further rights thereto (other than the right to withdraw the payment thereof
held in escrow, if applicable), and the Company shall record such transfer in its stock transfer
book or in any appropriate manner.

     11. Drag Along Right. In the event the holders of a majority of the Company’s Common
Stock (on an as converted basis) (the “Majority Stockholders”) determine to sell or otherwise
dispose of all or substantially all of the assets of the Company or all or fifty percent (50%) or
more of the capital stock of the Company in each case in a transaction constituting a change in
control of the Company, to any non-Affiliate(s) of the Company or any of the Majority Shareholders,
or to cause the Company to merge with or into or consolidate with any non-Affiliate(s) of the
Company or any of the Majority Shareholders (in each case, the “Buyer”) in a bona fide negotiated
transaction (a “Sale”), the Optionee, including any Permitted Transferees, shall be obligated to
and shall upon the written request of a Majority Shareholders (a) sell, transfer and deliver, or
cause to be sold, transferred and delivered, to the Buyer, his or her Issued Shares (including for
this purpose all of such Optionee’s or his or her Permitted Transferee’s Issued Shares that
presently or as a result of any such transaction may be acquired upon the exercise of options
(following the payment of the exercise price therefor)) on substantially the same terms applicable
to the Majority Shareholders (with appropriate adjustments to reflect the conversion of convertible
securities, the redemption of redeemable securities and the exercise of exercisable securities as
well as the relative preferences and priorities of preferred stock); and (b) execute and deliver
such instruments of conveyance and transfer and take such other action, including voting such
Issued Shares in favor of any Sale proposed by the Majority Shareholders and executing any purchase
agreements, merger agreements, indemnity agreements, escrow agreements or related documents, as the
Majority Shareholders or the Buyer may reasonably

9

 

require in order to carry out the terms and provisions of this Section 11. The obligations
under this Section 11 shall terminate in accordance with Section 13(a).

     12. Lockup Provision. The Optionee agrees, if requested by the Company and any
underwriter engaged by the Company, not to sell or otherwise transfer or dispose of any Issued
Shares (including, without limitation, pursuant to Rule 144 under the Act) held by him or her for
such period following the effective date of any registration statement of the Company filed under
the Act as the Company or such underwriter shall specify reasonably and in good faith, not to
exceed 180 days in the case of the Company’s Initial Public Offering or 90 days in the case of any
other public offering.

     13. Miscellaneous Provisions.

          (a) Termination. The Company’s repurchase rights under Section 9, the restrictions on
transfer of Issued Shares under Section 8 and the Drag Along obligations under Section 11 shall
terminate upon the closing of the Company’s Initial Public Offering, or upon consummation of any
Sale Event, in either case, as a result of which shares of the Company (or successor entity) of the
same class as the Issued Shares are registered under Section 12 of the Exchange Act and publicly
traded on NASDAQ/NMS or any national security exchange.

          (b) Equitable Relief. The parties hereto agree and declare that legal remedies may be
inadequate to enforce the provisions of this Agreement and that equitable relief, including
specific performance and injunctive relief, may be used to enforce the provisions of this
Agreement.

          (c) Adjustments for Changes in Capital Structure. If, as a result of any
reorganization, recapitalization, reincorporation, reclassification, stock dividend, stock split,
reverse stock split or other similar change in the Common Stock, the outstanding shares of Common
Stock are increased or decreased or are exchanged for a different number or kind of shares of the
Company’s stock, the restrictions contained in this Agreement shall apply with equal force to
additional and/or substitute securities, if any, received by the Optionee in exchange for, or by
virtue of his or her ownership of, Issued Shares.

          (d) Change and Modifications. This Agreement may not be orally changed, modified or
terminated, nor shall any oral waiver of any of its terms be effective. This Agreement may be
changed, modified or terminated only by an agreement in writing signed by the Company and the
Optionee.

          (e) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of Delaware without regard to conflict of law principles.

          (f) Headings. The headings are intended only for convenience in finding the subject
matter and do not constitute part of the text of this Agreement and shall not be considered in the
interpretation of this Agreement.

          (g) Saving Clause. If any provision(s) of this Agreement shall be determined to be
illegal or unenforceable, such determination shall in no manner affect the legality or
enforceability of any other provision hereof.

10

 

          (h) Notices. All notices, requests, consents and other communications shall be in
writing and be deemed given when delivered personally, by telex or facsimile transmission or when
received if mailed by first class registered or certified mail, postage prepaid. Notices to the
Company or the Optionee shall be addressed as set forth underneath their signatures below, or to
such other address or addresses as may have been furnished by such party in writing to the other.

          (i) Benefit and Binding Effect. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto, their respective successors, permitted assigns, and legal
representatives. The Company has the right to assign this Agreement, and such assignee shall
become entitled to all the rights of the Company hereunder to the extent of such assignment.

          (j) Dispute Resolution. Except as provided below, any dispute arising out of or
relating to this Agreement or the breach, termination or validity hereof shall be finally settled
by binding arbitration conducted expeditiously in accordance with the J.A.M.S./Endispute
Comprehensive Arbitration Rules and Procedures (the “J.A.M.S. Rules”). The arbitration shall be
governed by the United States Arbitration Act, 9 U.S.C. §§1-16, and judgment upon the award
rendered by the arbitrators may be entered by any court having jurisdiction thereof. The place of
arbitration shall be Boston, Massachusetts.

     The parties covenant and agree that the arbitration shall commence within sixty (60) days of
the date on which a written demand for arbitration is filed by any party hereto. In connection
with the arbitration proceeding, the arbitrator shall have the power to order the production of
documents by each party and any third-party witnesses. In addition, each party may take up to
three (3) depositions as of right, and the arbitrator may in his or her discretion allow additional
depositions upon good cause shown by the moving party. However, the arbitrator shall not have the
power to order the answering of interrogatories or the response to requests for admission. In
connection with any arbitration, each party shall provide to the other, no later than seven (7)
business days before the date of the arbitration, the identity of all persons that may testify at
the arbitration and a copy of all documents that may be introduced at the arbitration or considered
or used by a party’s witness or expert. The arbitrator’s decision and award shall be made and
delivered within six (6) months of the selection of the arbitrator. The arbitrator’s decision
shall set forth a reasoned basis for any award of damages or finding of liability. The arbitrator
shall not have power to award damages in excess of actual compensatory damages and shall not
multiply actual damages or award punitive damages or any other damages that are specifically
excluded under this Agreement, and each party hereby irrevocably waives any claim to such damages.

     The parties covenant and agree that they will participate in the arbitration in good faith.
This Section 13(j) applies equally to requests for temporary, preliminary or permanent injunctive
relief, except that in the case of temporary or preliminary injunctive relief any party may proceed
in court without prior arbitration for the limited purpose of avoiding immediate and irreparable
harm.

     Each of the parties hereto (i) hereby irrevocably submits to the jurisdiction of any United
States District Court of competent jurisdiction for the purpose of enforcing the award or decision

11

 

in any such proceeding, (ii) hereby waives, and agrees not to assert, by way of motion, as a
defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject
personally to the jurisdiction of the above-named courts, that its property is exempt or immune
from attachment or execution (except as protected by applicable law), that the suit, action or
proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is
improper or that this Agreement or the subject matter hereof may not be enforced in or by such
court, and hereby waives and agrees not to seek any review by any court of any other jurisdiction
which may be called upon to grant an enforcement of the judgment of any such court. Each of the
parties hereto hereby consents to service of process by registered mail at the address to which
notices are to be given. Each of the parties hereto agrees that its, his or her submission to
jurisdiction and its, his or her consent to service of process by mail is made for the express
benefit of the other parties hereto. Final judgment against any party hereto in any such action,
suit or proceeding may be enforced in other jurisdictions by suit, action or proceeding on the
judgment, or in any other manner provided by or pursuant to the laws of such other jurisdiction.

     (k) Counterparts. For the convenience of the parties and to facilitate execution,
this Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same document.

[SIGNATURE PAGE FOLLOWS]

12

 

     The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed
to by the undersigned as of the date first above written.

	 	 	 	 	 
	 	 	YESDIRECT, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Address:
	 
	 	 	 	 
	 	 	92 Hayden Avenue
	 	 	Lexington, MA 02421
	 	 	Attn: Jeff Bennett

     The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed
to by the undersigned as of the date first above written.

	 	 	 	 	 
	 	 	OPTIONEE:
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Address:
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

[Signature Page to Incentive Stock Option Agreement]

 

 

Appendix A

STOCK OPTION EXERCISE NOTICE

YesDirect, Inc.

92 Hayden Avenue

Lexington, MA 02421

Attn: Jeff Bennett

     Pursuant to the terms of my stock option agreement dated                     , 2005 (the
“Agreement”) under the YesDirect, Inc. 2005 Stock Option and Grant Plan, I, [Insert Name]
                                        , hereby [Circle One] partially/fully exercise such option by including herein
payment in the amount of $                     representing the purchase price for [Fill in number of Option
Shares]                      option shares. I have chosen the following form(s) of payment:

	 	 	 	 	 	 	 	 
	[ ]

	 	 	1.	 	 	Cash	 
	[ ]

	 	 	2.	 	 	Certified or bank check payable to YesDirect, Inc.	 
	[ ]

	 	 	3.	 	 	Other (as described in the Agreement (please describe))	 
	 
	 	 	 	 	 	 	.
	 

	 	 	 	 	 	 
	 

     In connection with my exercise of the option as set forth above, I hereby represent and
warrant to YesDirect, Inc. (the “Company”) as follows:

                  (i) I am purchasing the option shares for my own account for investment only, and not
for resale or with a view to the distribution thereof.

                  (ii) I have had such an opportunity as I have deemed adequate to obtain from the
Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company and have consulted with my own advisers with respect to my
investment in the Company

                  (iii) I have sufficient experience in business, financial and investment matters to be
able to evaluate the risks involved in the purchase of the option shares and to make an
informed investment decision with respect to such purchase.

                  (iv) I can afford a complete loss of the value of the option shares and am able to bear
the economic risk of holding such option shares for an indefinite period of time.

                  (v) I understand that the option shares may not be registered under the Securities Act
of 1933 (it being understood that the option shares are being issued and sold in reliance on
the exemption provided in Rule 701 thereunder) or any applicable state securities or “blue
sky” laws and may not be sold or otherwise transferred or disposed of in the absence of an
effective registration statement under the Securities Act of 1933 and under any applicable
state securities or “blue sky” laws (or exemptions from

 

 

the registration requirement thereof). I further acknowledge that certificates
representing option shares will bear restrictive legends reflecting the foregoing.

	 	 	 
	 

	 	Sincerely yours,
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Name:
	 
	 	 
	 

	 	Address:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

A- 1

 

Non-Qualified Stock Option Agreement

under the NameMedia, Inc.

Amended and Restated 2005 Stock Option and Grant Plan

	 	 	 
	Name of Optionee:

	 	                     (the “Optionee”)
	 
	 	 
	No. of Option Shares:

	 	                     Shares of Common Stock
	 
	 	 
	Grant Date:

	 	                    , 2006 (the “Grant Date”)
	 
	 	 
	Expiration Date:

	 	                    , 2016 (the “Expiration Date”)
	 
	 	 
	Vesting Start Date:

	 	                    , 200___ (the “Vesting Start Date”)
	 
	 	 
	Option Exercise Price/Share:

	 	$                     (the “Option Exercise Price”)

     Pursuant to the NameMedia, Inc. Amended and Restated 2005 Stock Option and Grant Plan (the
“Plan”), NameMedia, Inc., a Delaware corporation formerly known as YesDirect, Inc. and BuyDomains
Holdings, Inc. (together with all successors thereto, the “Company”), hereby grants to the
Optionee, who is an officer, employee, director, consultant or other key person of the Company or
any of its Subsidiaries, an option (the “Stock Option”) to purchase on or prior to the Expiration
Date, or such earlier date as is specified herein, all or any part of the number of shares of
Common Stock, par value $0.001 per share (“Common Stock”), of the Company indicated above (the
“Option Shares,” and such shares once issued shall be referred to as the “Issued Shares”), at the
Option Exercise Price per share, subject to the terms and conditions set forth in this
Non-Qualified Stock Option Agreement (this “Agreement”) and in the Plan. This Stock Option is
not intended to qualify as an “incentive stock option” as defined in Section 422(b) of the
Internal Revenue Code of 1986, as amended from time to time (the “Code”).

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the following respective meanings. All capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the Plan.

          “Affiliate” shall mean, with respect to any Person, a Person that directly or
indirectly, through one or more intermediaries, controls, is controlled by or is under common
control with the first mentioned Person. A Person shall be deemed to control another Person if
such first Person possesses directly or indirectly the power to direct, or cause the direction of,
the management and policies of the second Person, whether through the ownership of voting
securities, by contract or otherwise.

          “Bankruptcy” shall mean (i) the filing of a voluntary petition under any bankruptcy or
insolvency law, or a petition for the appointment of a receiver or the making of an assignment for
the benefit of creditors, with respect to the Optionee or any Permitted Transferee, or (ii) the
Optionee or any Permitted Transferee being subjected involuntarily to such a petition or assignment
or to an attachment or other legal or equitable interest with respect to the Optionee’s or such
Permitted Transferee’s assets, which involuntary petition or assignment or

 

 

attachment is not discharged within 60 days after its date, and (iii) the Optionee or any
Permitted Transferee being subject to a transfer of the Stock Option or the Issued Shares by
operation of law (including by divorce, even if not insolvent), except by reason of death.

          “Cause” shall mean (i) failure to perform to the reasonable satisfaction of the Board
a substantial portion of the Optionee’s duties and responsibilities, which failure continues, in
the reasonable judgment of the Board, after written notice given to the Optionee by the Board; (ii)
disloyalty, gross negligence, dishonesty, or breach of fiduciary duty; (iii) the commission by the
Optionee of an act of fraud, embezzlement or deliberate disregard of the rules or policies of the
Company, the commission by the Optionee of any other action which injures the Company, or his
misappropriation of any money or other assets or property (whether tangible or intangible); (iv)
the commission by or indictment of the Optionee for (A) a felony or (B) any misdemeanor involving
moral turpitude, deceit, dishonesty or fraud (“indictment,” for these purposes, meaning an
indictment, probable cause hearing or any other procedure pursuant to which an initial
determination of probable or reasonable cause with respect to such offense is made); or (v) the
commission of an act which constitutes unfair competition with the Company or which induces any
customer or supplier of the Company to breach a contract with the Company.

          “Permitted Transferees” shall mean any of the following Persons to whom the Optionee
may transfer Issued Shares hereunder (as set forth in Section 8): the Optionee’s spouse, children
(natural or adopted), stepchildren or a trust for their sole benefit of which the Optionee is the
settlor; provided, however, that any such trust does not require or permit
distribution of any Issued Shares during the term of this Agreement unless subject to its terms.
Upon the death of the Optionee (or a Permitted Transferee to whom shares have been transferred
hereunder), the term Permitted Transferees shall also include such deceased Optionee’s (or such
deceased Permitted Transferee’s) estate, executors, administrators, personal representatives,
heirs, legatees and distributees, as the case may be.

          “Person” shall mean any individual, corporation, partnership (limited or general),
limited liability company, limited liability partnership, association, trust, joint venture,
unincorporated organization or any similar entity.

          “Sale Event” shall mean, regardless of form thereof, consummation of (i) the
dissolution or liquidation of the Company, (ii) the sale of all or substantially all of the assets
of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger,
reorganization or consolidation in which the outstanding shares of Stock are converted into or
exchanged for securities of the successor entity and the holders of the Company’s outstanding
voting power immediately prior to such transaction do not own a majority of the outstanding voting
power of the successor entity immediately upon completion of such transaction, (iv) the sale of all
or a majority of the outstanding capital stock of the Company to an unrelated person or entity or
(v) any other transaction in which the owners of the Company’s outstanding voting power immediately
prior to such transaction do not own at least a majority of the outstanding voting power of the
successor entity immediately upon completion of the transaction; provided, however,
that the consummation of a public offering of shares of capital stock by the Company shall in no
event be deemed a Sale Event.

2

 

          “Subsidiary” shall mean any corporation or other entity (other than the Company) in
any unbroken chain of corporations or other entities beginning with the Company if each of the
corporations or other entities (other than the last corporation in the unbroken chain) owns stock
or other interests possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock or other equity interests or in one of the other corporations or other entities in
the chain.

     2. Vesting, Exercisability and Termination.

          (a) No portion of this Stock Option may be exercised until such portion shall have vested.

          (b) Except as set forth below, and subject to the determination of the Committee in its sole
discretion to accelerate the vesting schedule hereunder, this Stock Option shall be vested and
exercisable with respect to the Option Shares over a four year period as follows:

          (i) All Option Shares shall initially be unvested;

          (ii) Twenty-five percent (25%) of the Option Shares shall vest on the first anniversary
of the date of the Vesting Start Date, provided the Optionee’s service relationship with the
Company has not been terminated at such time; and

          (iii) Thereafter, the remaining seventy-five percent of the Option Shares shall vest in
thirty-six (36) equal monthly installments at the end of each month following the first
anniversary of the Vesting Start Date, provided the Optionee’s service relationship with the
Company has not been terminated at such time.

          (c) Termination. Except as may otherwise be provided by the Committee, if the
Optionee’s service relationship with the Company or a Subsidiary is terminated, the period within
which to exercise this Stock Option will be subject to earlier termination as set forth below (and
if not exercised within such period, shall thereafter terminate):

          (i) Termination Due to Death, Disability or Retirement. If the Optionee’s
service relationship terminates by reason of such Optionee’s death, disability (as defined
in Section 422(c) of the Code) or retirement (after attainment of age 60), this Stock Option
may be exercised, to the extent exercisable on the date of such termination, by the
Optionee, the Optionee’s legal representative or legatee for a period of twelve (12) months
from the date of death, disability or retirement or until the Expiration Date, if earlier.

          (ii) Other Termination. If the Optionee’s service relationship terminates for
any reason other than death, disability or retirement (after attainment of age 60), and
unless otherwise determined by the Committee, this Stock Option may be exercised, to the
extent exercisable on the date of termination, for a period of ninety (90) days from the
date of termination or until the Expiration Date, if earlier; provided
however, if the Optionee’s service relationship is terminated for Cause, this Stock
Option

3

 

shall terminate immediately upon the date of such termination and shall not be
exercisable (whether vested or not).

     For purposes hereof, the Committee’s determination of the reason for termination of the
Optionee’s service relationship shall be conclusive and binding on the Optionee and his or her
representatives or legatees or Permitted Transferees. Any portion of this Stock Option that is not
exercisable on the date of termination of the service relationship shall terminate immediately and
be null and void.

     3. Exercise of Stock Option.

          (a) The Optionee may exercise this Stock Option only in the following manner: Prior to the
Expiration Date, the Optionee may deliver a Stock Option exercise notice (an “Exercise Notice”) in
the form of Appendix A hereto indicating his or her election to purchase some or all of the
Option Shares with respect to which this Stock Option is exercisable at the time of such notice
together with a joinder agreement to each of (x) that certain Stockholders’ Voting Agreement, dated
as February 18, 2005 by and among the Company and the stockholders named therein, as amended from
time to time and (y) that certain Stock Restriction Agreement, dated as of February 18, 2005 by and
among the Company and the stockholders named therein, as amended from time to time (the “Stock
Restriction Agreement”), in form reasonably satisfactory to the Company. Such notice shall specify
the number of Option Shares to be purchased. Payment of the purchase price may be made by one or
more of the methods described below:

           (i) in cash, by certified or bank check, or other instrument acceptable to the
Committee in U.S. funds payable to the order of the Company in an amount equal to the
purchase price of such Option Shares; or

           (ii) if the Initial Public Offering has occurred, then (A) through the delivery (or
attestation to ownership) of shares of Common Stock that have been purchased by the Optionee
on the open market or that have been held by the Optionee for at least six (6) months and
are not subject to restrictions under any plan of the Company and in any event with an
aggregate Fair Market Value (as of the date of such exercise) equal to the option purchase
price, (B) by the Optionee delivering to the Company a properly executed Exercise Notice
together with irrevocable instructions to a broker to promptly deliver to the Company cash
or a check payable and acceptable to the Company to pay the option purchase price, provided
that in the event the Optionee chooses to pay the option purchase price as so provided, the
Optionee and the broker shall comply with such procedures and enter into such agreements of
indemnity and other agreements as the Committee shall prescribe as a condition of such
payment procedure, or (C) a combination of (i), (ii)(A) and (ii)(B) above.

          (b) Certificates for the Option Shares so purchased will be issued and delivered to the
Optionee upon compliance to the satisfaction of the Committee with all requirements under
applicable laws or regulations in connection with such issuance. Until the Optionee shall have
complied with the requirements hereof and of the Plan, the Company shall be under no obligation to
issue the Option Shares subject to this Stock Option, and the

4

 

determination of the Committee as to such compliance shall be final and binding on the
Optionee. The Optionee shall not be deemed to be the holder of, or to have any of the rights of a
holder with respect to, any shares of Common Stock subject to this Stock Option unless and until
this Stock Option shall have been exercised pursuant to the terms hereof, the Company shall have
issued and delivered the Issued Shares to the Optionee, and the Optionee’s name shall have been
entered as a stockholder of record on the books of the Company. Thereupon, the Optionee shall have
full dividend and other ownership rights with respect to such Issued Shares, subject to the terms
of this Agreement.

          (c) Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option
shall be exercisable after the Expiration Date.

     4. Incorporation of Plan. Notwithstanding anything herein to the contrary, this Stock
Option shall be subject to and governed by all the terms and conditions of the Plan.

     5. Transferability of Stock Option. This Agreement is personal to the Optionee and is
not transferable by the Optionee in any manner other than by will or by the laws of descent and
distribution. The Stock Option may be exercised during the Optionee’s lifetime only by the
Optionee (or by the Optionee’s guardian or personal representative in the event of the Optionee’s
incapacity). The Optionee may elect to designate a beneficiary by providing written notice of the
name of such beneficiary to the Company, and may revoke or change such designation at any time by
filing written notice of revocation or change with the Company; such beneficiary may exercise the
Optionee’s Stock Option in the event of the Optionee’s death to the extent provided herein. If the
Optionee does not designate a beneficiary, or if the designated beneficiary predeceases the
Optionee, the legal representative of the Optionee may exercise this Stock Option to the extent
provided herein in the event of the Optionee’s death.

     6. Effect of Certain Transactions. In the case of a Sale Event, this Stock Option
shall terminate upon the effective time of any such Sale Event unless provision is made in
connection with such transaction in the sole discretion of the parties thereto for the continuation
or assumption of this Stock Option heretofore granted, or the substitution of this Stock Option
with a new Stock Option of the successor entity or a parent thereof, with such adjustment as to the
number and kind of shares and the per share exercise prices as such parties shall agree. In the
event of such termination, the Optionee shall be permitted, for a specified period of time prior to
the consummation of the Sale Event as determined by the Committee, to exercise all portions of the
Stock Option which are then exercisable. Notwithstanding anything to the contrary in this
Agreement or in the Plan, in the event of a Sale Event pursuant to which holders of the Stock of
the Company will receive upon consummation thereof a cash payment for each share surrendered in the
Sale Event, the Company shall have the right, but not the obligation, to make or provide for a cash
payment to the Optionees holding vested Options, in exchange for the cancellation thereof, in an
amount equal to the difference between (a) the value as determined by the Committee of the
consideration payable per share of Stock pursuant to the Sale Event (the “Sale Price”) times the
number of shares of Stock subject to such outstanding Options (to the extent then exercisable at
prices not in excess of the Sale Price) and (b) the aggregate exercise price of all such
outstanding Options.

5

 

     7. Withholding Taxes. The Optionee shall, not later than the date as of which the
exercise of this Stock Option becomes a taxable event for federal income tax purposes, pay to the
Company or make arrangements satisfactory to the Committee for payment of any federal, state and
local taxes required by law to be withheld on account of such taxable event. The Optionee
acknowledges and agrees that the Company or any Subsidiary of the Company has the right to deduct
from payments of any kind otherwise due to the Optionee, or from the Option Shares to be issued in
respect of an exercise of this Stock Option, any federal, state or local taxes of any kind required
by law to be withheld with respect to the issuance of Option Shares to the Optionee.

     8. Restrictions on Transfer of Issued Shares. None of the Issued Shares acquired upon
exercise of the Stock Option shall be sold, assigned, transferred, pledged, hypothecated, given
away or in any other manner disposed of or encumbered, whether voluntarily or by operation of law,
unless such transfer is in compliance with all applicable securities laws (including, without
limitation, the Securities Act of 1933, as amended, and the rules and regulations thereunder (the
“Act”)), and such disposition is in accordance with the terms and conditions of Sections 8 and 9
hereof and such disposition does not cause the Company to become subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended. In connection with any transfer
of Issued Shares, the Company may require the transferor to provide at the Optionee’s own expense
an opinion of counsel to the transferor, satisfactory to the Company, that such transfer is in
compliance with all foreign, federal and state securities laws (including, without limitation, the
Act). Any attempted disposition of Issued Shares not in accordance with the terms and conditions
of Sections 8 and 9 hereof shall be null and void, and the Company shall not reflect on its records
any change in record ownership of any Issued Shares as a result of any such disposition, shall
otherwise refuse to recognize any such disposition and shall not in any way give effect to any such
disposition of any Issued Shares. Subject to the foregoing general provisions, Issued Shares may
be transferred pursuant to the following specific terms and conditions:

          (a) Transfers to Permitted Transferees. The Optionee may sell, assign, transfer or
give away any or all of the Issued Shares to Permitted Transferees; provided,
however, that such Permitted Transferee(s) shall, as a condition to any such transfer,
agree to be subject to the provisions of this Agreement to the same extent as the Optionee
(including, without limitation, the provisions of Sections 8, 9, 10, 11 and 12) and shall have
delivered a written acknowledgment to that effect to the Company.

          (b) Transfers Upon Death. Upon the death of the Optionee, any Issued Shares then held
by the Optionee at the time of such death and any Issued Shares acquired thereafter by the
Optionee’s legal representative pursuant to this Agreement shall be subject to the provisions of
Sections 8, 9, 10, 11 and 12, if applicable, and the Optionee’s estate, executors, administrators,
personal representatives, heirs, legatees and distributees shall be obligated to convey such Issued
Shares to the Company or its assigns under the terms contemplated hereby.

          (c) Company’s Right of First Refusal. In the event that the Optionee (or any
Permitted Transferee holding Issued Shares subject to this Section 8(c)) desires to sell or
otherwise transfer all or any part of the Issued Shares (other than to a Permitted Transferee), the
Optionee (or Permitted Transferee) first shall give written notice to the Company of the

6

 

Optionee’s (or Permitted Transferee’s) intention to make such transfer. Such notice shall
state the number of Issued Shares which the Optionee (or Permitted Transferee) proposes to sell
(the “Offered Shares”), the price and the terms at which the proposed sale is to be made and the
name and address of the proposed transferee. At any time within 30 days after the receipt of such
notice by the Company, the Company or its assigns may elect to purchase all or any portion of the
Offered Shares at the price and on the terms offered by the proposed transferee and specified in
the notice (subject to the rights of other Persons to purchase the Offered Shares pursuant to the
Stock Restriction Agreement). The Company or its assigns shall exercise this right by mailing or
delivering written notice to the Optionee (or Permitted Transferee) within the foregoing 30-day
period. If the Company or its assigns elect to exercise its purchase rights under this
Section 8(c), the closing for such purchase shall, in any event, take place within 45 days after
the receipt by the Company of the initial notice from the Optionee (or Permitted Transferee).
Subject to the Stock Restriction Agreement, in the event that the Company or its assigns do not
elect to exercise such purchase right, or in the event that the Company or its assigns do not pay
the full purchase price within such 45-day period, the Optionee (or Permitted Transferee) may, at
any time within 60 days after the receipt by the Company of the initial notice from the Optionee
(or Permitted Transferee), sell the Offered Shares to the proposed transferee and at the same price
and on the same terms as specified in the Optionee’s (or Permitted Transferee’s) notice;
provided, that the Optionee has complied in all respects with the applicable provisions of
the Stock Restriction Agreement. Any Shares purchased by such proposed transferee shall be deemed
held by a Permitted Transferee and accordingly shall remain subject to the terms of this Agreement,
including without limitation, the provisions of Sections 8, 9, 10, 11 and 12 hereof to the same
extent as if the Optionee continued to hold them. Any Shares not sold to the proposed transferee
shall remain subject to this Agreement. Notwithstanding the foregoing, the restrictions under this
Section 8(c) shall terminate in accordance with Section 13(a).

     9. Company’s Right of Repurchase.

          (a) Right of Repurchase. The Company shall have the right (the “Repurchase Right”)
upon the occurrence of any of the events specified in Section 9(b) below (the “Repurchase Event”)
to repurchase from the Optionee (or any Permitted Transferee) some or all (as determined by the
Company) of the Issued Shares held or subsequently acquired upon exercise of this Stock Option in
accordance with the terms hereof by the Optionee (or any Permitted Transferee) at the price per
share specified below. The Repurchase Right may be exercised by the Company within the later of
(i) six (6) months following the date of such event or (ii) seven (7) months after the exercise of
this Stock Option (the “Repurchase Period”). The Repurchase Right shall be exercised by the
Company by giving the holder written notice on or before the last day of the Repurchase Period of
its intention to exercise the Repurchase Right, and, together with such notice, tendering to the
holder an amount equal to the Fair Market Value of the shares, determined as provided in
Section 9(c). The Company may assign the Repurchase Right to one or more Persons. Upon such
notification, the Optionee and any Permitted Transferees shall promptly surrender to the Company
any certificates representing the Issued Shares being purchased, together with a duly executed
stock power for the transfer of such Issued Shares to the Company or the Company’s assignee or
assignees. Upon the Company’s or its assignee’s receipt of the certificates from the Optionee or
any Permitted Transferees, the Company or its assignee or assignees shall deliver to him, her or
them a check for the Repurchase Price of the Issued Shares being purchased; provided,
however, that the Company

7

 

may pay the Repurchase Price for such shares by offsetting and canceling any indebtedness then
owed by the Optionee to the Company. At such time, the Optionee and/or any holder of the Issued
Shares shall deliver to the Company the certificate or certificates representing the Issued Shares
so repurchased, duly endorsed for transfer, free and clear of any liens or encumbrances. The
Repurchase Right shall terminate in accordance with Section 13(a).

          (b) Company’s Right to Exercise Repurchase Right. The Company shall have the
Repurchase Right in the event that any of the following events shall occur:

           (i) The termination of the Optionee’s service relationship with the Company and its
Subsidiaries for any reason whatsoever, regardless of the circumstances thereof, and
including without limitation upon death, disability, retirement, discharge or resignation
for any reason, whether voluntarily or involuntarily; or

           (ii) The Optionee’s or Permitted Transferee’s Bankruptcy.

          (c) Determination of Fair Market Value. The repurchase price (the “Repurchase Price”)
shall be the fair market value of the Issued Shares which, for purposes of this Section 9, shall be
determined by the Board as of the date the Board elects to exercise its repurchase rights in
connection with a Repurchase Event.

     10. Escrow Arrangement.

          (a) Escrow. In order to carry out the provisions of Sections 8, 9 and 11 of this
Agreement more effectively, the Company shall hold any Issued Shares in escrow together with
separate stock powers executed by the Optionee in blank for transfer, and any Permitted Transferee
shall, as an additional condition to any transfer of Issued Shares, execute a like stock power as
to such Issued Shares. The Company shall not dispose of the Issued Shares except as otherwise
provided in this Agreement. In the event of any repurchase by the Company (or any of its assigns),
the Company is hereby authorized by the Optionee and any Permitted Transferee, as the Optionee’s
and each such Permitted Transferee’s attorney-in-fact, to date and complete the stock powers
necessary for the transfer of the Issued Shares being purchased and to transfer such Issued Shares
in accordance with the terms hereof. At such time as any Issued Shares are no longer subject to
the Company’s repurchase, first refusal and drag along rights, the Company shall, at the written
request of the Optionee, deliver to the Optionee (or the relevant Permitted Transferee) a
certificate representing such Issued Shares with the balance of the Issued Shares to be held in
escrow pursuant to this Section 10.

          (b) Remedy. Without limitation of any other provision of this Agreement or other
rights, in the event that the Optionee, any Permitted Transferees or any other person or entity is
required to sell the Optionee’s Issued Shares pursuant to the provisions of Sections 8, 9 and 11 of
this Agreement and in the further event that he or she refuses or for any reason fails to deliver
to the Company or its designated purchaser of such Issued Shares the certificate or certificates
evidencing such Issued Shares together with a related stock power, the Company or such designated
purchaser may deposit the applicable purchase price for such Issued Shares with a bank designated
by the Company, or with the Company’s independent public accounting firm, as agent or trustee, or
in escrow, for the Optionee, any Permitted Transferees or other person or

8

 

entity, to be held by such bank or accounting firm for the benefit of and for delivery to him,
her, them or it, and/or, in its discretion, pay such purchase price by offsetting any indebtedness
then owed by the Optionee as provided above. Upon any such deposit and/or offset by the Company or
its designated purchaser of such amount and upon notice to the person or entity who was required to
sell the Issued Shares to be sold pursuant to the provisions of Sections 8, 9 and 11, such Issued
Shares shall at such time be deemed to have been sold, assigned, transferred and conveyed to such
purchaser, the holder thereof shall have no further rights thereto (other than the right to
withdraw the payment thereof held in escrow, if applicable), and the Company shall record such
transfer in its stock transfer book or in any appropriate manner.

     11. Drag Along Right. In the event the holders of a majority of the Company’s Common
Stock (on an as converted basis) (the “Majority Stockholders”) determine to sell or otherwise
dispose of all or substantially all of the assets of the Company or all or fifty percent (50%) or
more of the capital stock of the Company in each case in a transaction constituting a change in
control of the Company, to any non-Affiliate(s) of the Company or any of the Majority Shareholders,
or to cause the Company to merge with or into or consolidate with any non-Affiliate(s) of the
Company or any of the Majority Shareholders (in each case, the “Buyer”) in a bona fide negotiated
transaction (a “Sale”), the Optionee, including any Permitted Transferees, shall be obligated to
and shall upon the written request of a Majority Shareholders (a) sell, transfer and deliver, or
cause to be sold, transferred and delivered, to the Buyer, his or her Issued Shares (including for
this purpose all of such Optionee’s or his or her Permitted Transferee’s Issued Shares that
presently or as a result of any such transaction may be acquired upon the exercise of options
(following the payment of the exercise price therefor)) on substantially the same terms applicable
to the Majority Shareholders (with appropriate adjustments to reflect the conversion of convertible
securities, the redemption of redeemable securities and the exercise of exercisable securities as
well as the relative preferences and priorities of preferred stock); and (b) execute and deliver
such instruments of conveyance and transfer and take such other action, including voting such
Issued Shares in favor of any Sale proposed by the Majority Shareholders and executing any purchase
agreements, merger agreements, indemnity agreements, escrow agreements or related documents, as the
Majority Shareholders or the Buyer may reasonably require in order to carry out the terms and
provisions of this Section 11. The obligations under this Section 11 shall terminate in accordance
with Section 13(a).

     12. Lockup Provision. The Optionee agrees, if requested by the Company and any
underwriter engaged by the Company, not to sell or otherwise transfer or dispose of any Issued
Shares (including, without limitation, pursuant to Rule 144 under the Act) held by him or her for
such period following the effective date of any registration statement of the Company filed under
the Act as the Company or such underwriter shall specify reasonably and in good faith, not to
exceed 180 days in the case of the Company’s Initial Public Offering or 90 days in the case of any
other public offering.

     13. Miscellaneous Provisions.

          (a) Termination. The Company’s repurchase rights under Section 9, the restrictions on
transfer of Issued Shares under Section 8 and the Drag Along obligations under Section 11 shall
terminate upon the closing of the Company’s Initial Public Offering, or upon consummation of any
Sale Event, in either case, as a result of which shares of the Company (or

9

 

successor entity) of the same class as the Issued Shares are registered under Section 12 of
the Exchange Act and publicly traded on NASDAQ/NMS or any national security exchange.

          (b) Equitable Relief. The parties hereto agree and declare that legal remedies may be
inadequate to enforce the provisions of this Agreement and that equitable relief, including
specific performance and injunctive relief, may be used to enforce the provisions of this
Agreement.

          (c) Adjustments for Changes in Capital Structure. If, as a result of any
reorganization, recapitalization, reincorporation, reclassification, stock dividend, stock split,
reverse stock split or other similar change in the Common Stock, the outstanding shares of Common
Stock are increased or decreased or are exchanged for a different number or kind of shares of the
Company’s stock, the restrictions contained in this Agreement shall apply with equal force to
additional and/or substitute securities, if any, received by the Optionee in exchange for, or by
virtue of his or her ownership of, Issued Shares.

          (d) Change and Modifications. This Agreement may not be orally changed, modified or
terminated, nor shall any oral waiver of any of its terms be effective. This Agreement may be
changed, modified or terminated only by an agreement in writing signed by the Company and the
Optionee.

          (e) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of Delaware without regard to conflict of law principles.

          (f) Headings. The headings are intended only for convenience in finding the subject
matter and do not constitute part of the text of this Agreement and shall not be considered in the
interpretation of this Agreement.

          (g) Saving Clause. If any provision(s) of this Agreement shall be determined to be
illegal or unenforceable, such determination shall in no manner affect the legality or
enforceability of any other provision hereof.

          (h) Notices. All notices, requests, consents and other communications shall be in
writing and be deemed given when delivered personally, by telex or facsimile transmission or when
received if mailed by first class registered or certified mail, postage prepaid. Notices to the
Company or the Optionee shall be addressed as set forth underneath their signatures below, or to
such other address or addresses as may have been furnished by such party in writing to the other.

          (i) Benefit and Binding Effect. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto, their respective successors, permitted assigns, and legal
representatives. The Company has the right to assign this Agreement, and such assignee shall
become entitled to all the rights of the Company hereunder to the extent of such assignment.

          (j) Dispute Resolution. Except as provided below, any dispute arising out of or
relating to this Agreement or the breach, termination or validity hereof shall be finally settled
by binding arbitration conducted expeditiously in accordance with the J.A.M.S./Endispute

10

 

Comprehensive Arbitration Rules and Procedures (the “J.A.M.S. Rules”). The arbitration shall
be governed by the United States Arbitration Act, 9 U.S.C. §§1-16, and judgment upon the award
rendered by the arbitrators may be entered by any court having jurisdiction thereof. The place of
arbitration shall be Boston, Massachusetts.

     The parties covenant and agree that the arbitration shall commence within sixty (60) days of
the date on which a written demand for arbitration is filed by any party hereto. In connection
with the arbitration proceeding, the arbitrator shall have the power to order the production of
documents by each party and any third-party witnesses. In addition, each party may take up to
three (3) depositions as of right, and the arbitrator may in his or her discretion allow additional
depositions upon good cause shown by the moving party. However, the arbitrator shall not have the
power to order the answering of interrogatories or the response to requests for admission. In
connection with any arbitration, each party shall provide to the other, no later than seven (7)
business days before the date of the arbitration, the identity of all persons that may testify at
the arbitration and a copy of all documents that may be introduced at the arbitration or considered
or used by a party’s witness or expert. The arbitrator’s decision and award shall be made and
delivered within six (6) months of the selection of the arbitrator. The arbitrator’s decision
shall set forth a reasoned basis for any award of damages or finding of liability. The arbitrator
shall not have power to award damages in excess of actual compensatory damages and shall not
multiply actual damages or award punitive damages or any other damages that are specifically
excluded under this Agreement, and each party hereby irrevocably waives any claim to such damages.

     The parties covenant and agree that they will participate in the arbitration in good faith.
This Section 13(j) applies equally to requests for temporary, preliminary or permanent injunctive
relief, except that in the case of temporary or preliminary injunctive relief any party may proceed
in court without prior arbitration for the limited purpose of avoiding immediate and irreparable
harm.

     Each of the parties hereto (i) hereby irrevocably submits to the jurisdiction of any United
States District Court of competent jurisdiction for the purpose of enforcing the award or decision
in any such proceeding, (ii) hereby waives, and agrees not to assert, by way of motion, as a
defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject
personally to the jurisdiction of the above-named courts, that its property is exempt or immune
from attachment or execution (except as protected by applicable law), that the suit, action or
proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is
improper or that this Agreement or the subject matter hereof may not be enforced in or by such
court, and hereby waives and agrees not to seek any review by any court of any other jurisdiction
which may be called upon to grant an enforcement of the judgment of any such court. Each of the
parties hereto hereby consents to service of process by registered mail at the address to which
notices are to be given. Each of the parties hereto agrees that its, his or her submission to
jurisdiction and its, his or her consent to service of process by mail is made for the express
benefit of the other parties hereto. Final judgment against any party hereto in any such action,
suit or proceeding may be enforced in other jurisdictions by suit, action or proceeding on the
judgment, or in any other manner provided by or pursuant to the laws of such other jurisdiction.

11

 

     (k) Counterparts. For the convenience of the parties and to facilitate execution,
this Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same document.

[SIGNATURE PAGE FOLLOWS]

12

 

     The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed
to by the undersigned as of the date first above written.

	 	 	 	 	 
	 	 	NAMEMEDIA, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Address:
	 
	 	 	 	 
	 	 	230 Third Avenue
	 	 	Waltham, MA 02451
	 	 	Attn: Chief Executive Officer

     The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed
to by the undersigned as of the date first above written.

	 	 	 	 	 
	 	 	OPTIONEE:
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Address:	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

[Signature Page to Non-Qualified Stock Option Agreement]

 

 

[SPOUSE’S CONSENT1

I acknowledge that I have read the

Foregoing Non-Qualified Stock Option Agreement

and understand the contents thereof.

                                                                                ]

 

			
	1	 	A spouse’s consent is required only if the Optionee’s
state of residence is one of the following community property states: Arizona,
California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington and, in
some cases, Wisconsin.

 

 

Appendix A

STOCK OPTION EXERCISE NOTICE

NameMedia, Inc.

230 Third Avenue

Waltham, MA 02451

Attn: Chief Executive Officer

     Pursuant
to the terms of my stock option agreement dated                     , 20___ (the
“Agreement”) under the NameMedia, Inc. Amended and Restated 2005 Stock Option and Grant Plan, I,
[Insert Name]                     , hereby [Circle One] partially/fully exercise such option by
including herein payment in the amount of $___ representing the purchase price for [Fill in
number of Option Shares] ___ option shares. I have chosen the following form(s) of payment:

	 	 	 	 	 	 	 	 
	[ ]

	 	 	1.	 	 	Cash	 
	[ ]

	 	 	2.	 	 	Certified or bank check payable to NameMedia, Inc.	 
	[ ]

	 	 	3.	 	 	Other (as described in the Agreement (please describe))	 
	 
	 	 	 	 	 	 	.
	 

	 	 	 	 	 	 
	 

     In connection with my exercise of the option as set forth above, I hereby represent and
warrant to NameMedia, Inc. (the “Company”) as follows:

                  (i) I am purchasing the option shares for my own account for investment only, and not
for resale or with a view to the distribution thereof.

                  (ii) I have had such an opportunity as I have deemed adequate to obtain from the
Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company and have consulted with my own advisers with respect to my
investment in the Company

                  (iii) I have sufficient experience in business, financial and investment matters to be
able to evaluate the risks involved in the purchase of the option shares and to make an
informed investment decision with respect to such purchase.

                  (iv) I can afford a complete loss of the value of the option shares and am able to bear
the economic risk of holding such option shares for an indefinite period of time.

                  (v) I understand that the option shares may not be registered under the Securities Act
of 1933 (it being understood that the option shares are being issued and sold in reliance on
the exemption provided in Rule 701 thereunder) or any applicable state securities or “blue
sky” laws and may not be sold or otherwise transferred or disposed of in the absence of an
effective registration statement under the Securities Act of 1933 and under any applicable
state securities or “blue sky” laws (or exemptions from

 

 

the registration requirement thereof). I further acknowledge that certificates
representing option shares will bear restrictive legends reflecting the foregoing.

	 	 	 
	 

	 	Sincerely yours,
	 
	 
	 	 
	 

	 	 
	 

	 	Name:
	 
	 	 
	 

	 	Address:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

A- 1

 

Restricted Stock Unit Agreement

under the NameMedia, Inc.

Amended and Restated

2005 Stock Option and Grant Plan

	 	 	 
	Name of Grantee:

	 	                     (the “Grantee”)
	 
	 	 
	No. of Restricted Stock Units:

	 	                     (the “RSUs”)
	 
	 	 
	Grant Date:

	 	                    , 2006 (the “Grant Date”)
	 
	 	 
	Vesting Start Date:

	 	                    , 200___ (the “Vesting Start Date”)

     Pursuant to the NameMedia, Inc. Amended and Restated 2005 Stock Option and Grant Plan (the
“Plan”), NameMedia, Inc. a Delaware corporation formerly known as YesDirect, Inc. and BuyDomains
Holdings, Inc. (together with all successors thereto, the “Company”), hereby grants to the
individual named above, who is an officer, employee, director, consultant or other key person of
the Company or any of the Subsidiaries, the number of RSUs specified above (the “Award”), subject
to the terms and conditions set forth herein and in the Plan. The Award represents a promise to
pay to the Grantee one share of the Company’s common stock, par value $0.001 per share (the “Common
Stock”), for each RSU, as provided above and herein. The Grantee agrees to the provisions set
forth herein and in the Plan and acknowledges that each such provision is a material condition of
the Company’s agreement to issue the Shares to him or her. All references to share prices and
amounts herein shall be equitably adjusted to reflect stock splits, stock dividends,
recapitalizations, mergers, reorganizations and similar changes affecting the capital stock of the
Company, and any shares of capital stock of the Company received on or in respect of Shares in
connection with any such event (including any shares of capital stock or any right, option or
warrant to receive the same or any security convertible into or exchangeable for any such shares or
received upon conversion of any such shares) shall be subject to this Agreement on the same basis
and extent at the relevant time as the Shares in respect of which they were issued, and shall be
deemed Shares as if and to the same extent they were issued at the date hereof.

     1. Definitions. For the purposes of this Agreement, the following terms shall have
the following respective meanings. All capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the Plan.

          An “Affiliate” of any Person means a Person that directly or indirectly, through one
or more intermediaries, controls, is controlled by or is under common control with the first
mentioned Person. A Person shall be deemed to control another Person if such first Person
possesses directly or indirectly the power to direct, or cause the direction of, the management and
policies of the second Person, whether through the ownership of voting securities, by contract or
otherwise.

          “Bankruptcy” shall mean (i) the filing of a voluntary petition under any bankruptcy or
insolvency law, or a petition for the appointment of a receiver or the making of an assignment for
the benefit of creditors, with respect to the Grantee or any Permitted Transferee,

 

 

(ii) the Grantee or any Permitted Transferee being subjected involuntarily to such a petition
or assignment or to an attachment or other legal or equitable interest with respect to the
Grantee’s or the Permitted Transferee’s assets, which involuntary petition or assignment or
attachment is not discharged within 60 days after its date, and (iii) the Grantee or any Permitted
Transferee being subject to a transfer of RSUs by operation of law (including by divorce, even if
not insolvent), except by reason of death.

          “Common Stock” shall mean the Company’s Common Stock, par value $0.001 per share,
together with any shares into which the Common Stock may be converted or exchanged, as provided
above and herein.

          “Permitted Transferees” shall mean any of the following to whom the Grantee may
transfer RSUs hereunder (as set forth in Section 5): the Grantee’s spouse, children (natural or
adopted), stepchildren or a trust for their sole benefit of which the Grantee is the settlor;
provided, however, that any such trust does not require or permit distribution of
any RSUs during the term of this Agreement unless subject to its terms. Upon the death of the
Grantee (or a Permitted Transferee to whom shares have been transferred hereunder), the term
Permitted Transferees shall also include such deceased Grantee’s (or such deceased Permitted
Transferee’s) estate, executions, administrations, personal representations, heirs, legatees and
distributees, as the case may be.

          “Person” shall mean any individual, corporation, partnership (limited or general),
limited liability company, limited liability partnership, association, trust, joint venture,
unincorporated organization or any similar entity.

          “Shares” shall mean the shares of Common Stock issued to the Grantee on the Payment
Date pursuant to this Agreement and any additional shares of Common Stock or other securities
received in respect of the Shares, as a dividend on, or otherwise on account of, the Shares.

          “Termination Event” shall mean the termination of the Grantee’s employment with the
Company and its subsidiaries for any reason whatsoever, regardless of the circumstances thereof,
and including without limitation upon death, disability, retirement or discharge or resignation for
any reason, whether voluntary or involuntary. For purposes hereof, the Committee’s determination
of the reason for termination of the Grantee’s employment shall be conclusive and binding on the
Grantee and the Grantee’s representatives or legatees. Upon a Termination Event, the Grantee shall
cease to vest in any Unvested RSUs.

          “Unvested RSUs” shall initially mean all of the RSUs granted to the Grantee on the
date hereof pursuant to this Agreement, provided that, if Grantee remains an employee of
the Company, on each of the dates listed below, the respective number of RSUs indicated below shall
become Vested RSUs:

          (i) Twenty-five percent (25%) of the RSUs shall vest on the first anniversary of the date of
the Vesting Start Date; and

2

 

          (ii) Thereafter, the remaining seventy-five percent (75%) of the RSUs shall vest in 36 equal
monthly installments at the end of each month starting with the first full month following the
first anniversary of the Vesting Start Date.

          “Vested RSUs” shall mean all RSUs which are not Unvested RSUs.

     2. Grant of RSUs.

          (a) Grant. On the date hereof, the Company hereby grants to the Grantee the number of
RSUs set forth above.

          (b) Investment Representations. In connection with the issuance of the Shares
contemplated by Section 2(a) above, the Grantee hereby represents and warrants to the Company as
follows:

          (i) The Grantee is receiving the Shares for the Grantee’s own account for investment
only, and not for resale or with a view to the distribution thereof.

          (ii) The Grantee has had such an opportunity as he or she has deemed adequate to obtain
from the Company such information as is necessary to permit him or her to evaluate the
merits and risks of the Grantee’s investment in the Company and has consulted with the
Grantee’s own advisers with respect to the Grantee’s investment in the Company.

          (iii) The Grantee has sufficient experience in business, financial and investment
matters to be able to evaluate the risks involved in the investment in the Company and to
make an informed investment decision with respect to such purchase.

          (iv) The Grantee can afford a complete loss of the value of the Shares and is able to
bear the economic risk of holding such Shares for an indefinite period.

          (v) The Grantee understands that the Shares are not registered under the Act (it being
understood that the Shares are being issued in reliance on the exemption provided in Rule
701 thereunder) or any applicable state securities or “blue sky” laws and may not be sold or
otherwise transferred or disposed of in the absence of an effective registration statement
under the Act and under any applicable state securities or “blue sky” laws (or exemptions
from the registration requirements thereof). The Grantee further acknowledges that
certificates representing the Shares will bear restrictive legends reflecting the
foregoing.

          (c) Joinder. Contemporaneously with the issuance of shares contemplated by Section 3
below, the Grantee shall execute a joinder agreement to each of (i) that certain Stockholders’
Voting Agreement, dated as of February 22, 2005, by and among the Company and the stockholders
named therein, as amended from time to time, and (ii) that certain Stock Restriction Agreement,
dated as of February 22, 2005 (the “Stock Restriction Agreement”), by and among the Company and the
stockholders named therein, as amended from time to time.

3

 

     3. Payment of Award.

          (a) Payment Date. Each Vested RSU will entitle the Grantee to one Share on the Payment
Date. “Payment Date” shall mean the vesting date for such RSU, or, if later, February 28, 2008.
Notwithstanding the foregoing, in the event of a Termination Event or Sale Event prior to February
28, 2008, “Payment Date” shall mean the vesting date for such RSU, or, if later, the occurrence of
such Termination Event or Sale Event. Further notwithstanding anything herein to the contrary,
only Vested RSUs (after giving effect to any vesting on such date) will entitle the Grantee to
Shares on any Payment Date(s), and in no event shall any Unvested RSUs entitle the Grantee to any
Shares.

          (b) Delivery. Stock will be issued as soon as practicable following the Payment Date.
Shares underlying the Vested RSUs shall be issued and delivered to the Grantee in accordance with
Section 3(a) and upon compliance to the satisfaction of the Committee with all requirements under
applicable laws or regulations in connection with such issuance and with the requirements hereof
and of the Plan. The determination of the Committee as to such compliance shall be final and
binding on the Grantee.

          (c) No Rights as Stockholder Prior to Issuance of Shares. Until such time as Shares
have been issued to Grantee pursuant to Section 3(b), Grantee shall not have any rights as a holder
of the Shares underlying this Award including but not limited to voting rights.

     4. Repurchase Right.

          (a) Repurchase. Upon the occurrence of a Termination Event or the Bankruptcy of the
Grantee, the Company or its assigns shall have the right and option to purchase all or any portion
of the Shares held by the Grantee or any Permitted Transferee as of the date of such Termination
Event or Bankruptcy. In addition, upon the Bankruptcy of any of the Grantee’s Permitted
Transferees, the Company or its assigns shall have the right and option to repurchase all or any
portion of the Shares held by such Permitted Transferee as of the date of such Bankruptcy. The
purchase and sale arrangements contemplated by the preceding sentences of this Section 4(a) are
referred to herein as the “Repurchase.”

          (b) Repurchase Price. The per share purchase price of the Shares subject to the
Repurchase (the “Repurchase Price”) shall be the fair market value of such Shares as of such date
as determined by the Board. This Repurchase Right shall terminate in accordance with
Section 12(b).

          (c) Closing Procedure. The Company or its assigns shall effect the Repurchase (if so
elected) by delivering or mailing to the Grantee (and/or, if applicable, any Permitted Transferees)
written notice within six (6) months after the Termination Event, Bankruptcy, specifying a date
within such six-month period in which the Repurchase shall be effected. Upon such notification,
the Grantee and any Permitted Transferees shall promptly surrender to the Company any certificates
representing the Shares being purchased, together with a duly executed stock power for the transfer
of such Shares to the Company or the Company’s assignee or assignees. Upon the Company’s or its
assignee’s receipt of the certificates from the Grantee or any Permitted Transferees, the Company
or its assignee or assignees shall deliver to

4

 

him, her or them a check for the Repurchase Price of the Shares being purchased,
provided, however, that the Company may pay the Repurchase Price for such shares by
offsetting and canceling any indebtedness then owed by the Grantee to the Company. At such time,
the Grantee and/or any holder of the Shares shall deliver to the Company the certificate or
certificates representing the Shares so repurchased, duly endorsed for transfer, free and clear of
any liens or encumbrances.

     5. Restrictions on Transfer of RSUs. This Agreement is personal to the Grantee and is
not transferable by the Grantee in any manner other than by will or by the laws of descent and
distribution.

     6. Restrictions on Transfer of Shares. None of the Shares hereafter acquired shall be
sold, assigned, transferred, pledged, hypothecated, given away or in any other manner disposed of
or encumbered, whether voluntarily or by operation of law, unless such transfer is in compliance
with all applicable securities laws (including, without limitation, the Act), and such disposition
is in accordance with the terms and conditions of this Section 5 and such disposition does not
cause the Company to become subject to the reporting requirements of the Securities Exchange Act of
1934, as amended. In connection with any transfer of Shares, the Company may require the
transferor to provide at the Grantee’s own expense an opinion of counsel to the transferor,
satisfactory to the Company, that such transfer is in compliance with all foreign, federal and
state securities laws (including, without limitation, the Act). Any attempted disposition of
Shares not in accordance with the terms and conditions of this Section 5 shall be null and void,
and the Company shall not reflect on its records any change in record ownership of any Shares as a
result of any such disposition, shall otherwise refuse to recognize any such disposition and shall
not in any way give effect to any such disposition of any Shares. Subject to the foregoing general
provisions, Shares may be transferred pursuant to the following specific terms and conditions:

          (a) Transfers to Permitted Transferees. The Grantee (but not any transferee thereof)
may sell, assign, transfer or give away any or all of the Shares to Permitted Transferees;
provided, however, that such Permitted Transferee(s) shall, as a condition to any
such transfer, agree to be subject to the provisions of this Agreement (including, without
limitation, the provisions of Section 4 and this Section 6) and shall have delivered a written
acknowledgment to that effect to the Company.

          (b) Transfers Upon Death. Upon the death of the Grantee, all Shares shall be subject
to the Repurchase and all Shares shall be and remain subject to Section 4(c), if applicable, and
the Grantee’s estate, executors, administrators, personal representatives, heirs, legatees and
distributees shall be obligated to convey such Shares to the Company or its assigns under the terms
contemplated hereby.

          (c) Other Transfers; Notice; Right of First Refusal. In the event that the Grantee
(or any Permitted Transferee holding Shares subject to this Section 6(c)) desires to sell or
otherwise transfer all or any part of the Shares, which shall not be sold or transferred except as
contemplated by Section 6(a) or (b)), the Grantee (or Permitted Transferee) first shall give
written notice to the Company of the Grantee’s (or Permitted Transferee’s) intention to make such
transfer. Such notice shall state the number of Shares which the Grantee (or Permitted

5

 

Transferee) proposes to sell (the “Offered Shares”), the price and the terms at which the
proposed sale is to be made and the name and address of the proposed transferee. At any time
within 30 days after the receipt of such notice by the Company, the Company or its assigns may
elect to purchase all or any portion of the Offered Shares at the price and on the terms offered by
the proposed transferee and specified in the notice (subject to the rights of other Persons to
purchase the Offered Shares pursuant to the Stock Restriction Agreement). The Company or its
assigns shall exercise this right by mailing or delivering written notice to the Grantee (or
Permitted Transferee) within the foregoing 30-day period. If the Company or its assigns elect to
exercise its purchase rights under this Section 6(c), the closing for such purchase shall, in any
event, take place within 45 days after the receipt by the Company of the initial notice from the
Grantee (or Permitted Transferee). In the event that the Company or its assigns do not elect to
exercise such purchase right, or in the event that the Company or its assigns do not pay the full
purchase price within such 45-day period, the Grantee (or Permitted Transferee) may, at any time
within 60 days after the receipt by the Company of the initial notice from the Grantee (or
Permitted Transferee), sell the Offered Shares to the proposed transferee and at the same price and
on the same terms as specified in the Grantee’s (or Permitted Transferee’s) notice;
provided, that the Grantee has complied in all respects with the applicable provisions of
the Stock Restriction Agreement. Any Shares purchased by such proposed transferee shall no longer
be subject to the terms of this Agreement. Any Shares not sold to the proposed transferee shall
remain subject to this Agreement. Notwithstanding the foregoing, the restrictions under this
Section 6(c) shall terminate in accordance with Section 12(b).

     7. Drag Along Right. In the event the holders of a majority of the Company’s equity
securities then outstanding (the “Majority Shareholders”) determine to sell or otherwise dispose of
all or substantially all of the assets of the Company or all or fifty percent (50%) or more of the
capital stock of the Company (in each case in a transaction constituting a change in control of the
Company), to any non-Affiliate(s) of the Company or any of the Majority Shareholders, or to cause
the Company to merge with or into or consolidate with any non-Affiliate(s) of the Company or any of
the Majority Shareholders (in each case, the “Buyer”) in a bona fide negotiated transaction (a
“Sale”), the Grantee, including any of his or her successors as contemplated herein, shall be
obligated to and shall upon the written request of the Majority Shareholders: (a) sell, transfer
and deliver, or cause to be sold, transferred and delivered, to the Buyer, his or her Shares on
substantially the same terms applicable to the Majority Shareholders (with appropriate adjustments
to reflect the conversion of convertible securities, the redemption of redeemable securities and
the exercise of exercisable securities as well as the relative preferences and priorities of
preferred stock); and (b) execute and deliver such instruments of conveyance and transfer and take
such other action, including voting such Shares in favor of any Sale proposed by the Majority
Shareholders and executing any purchase agreements, merger agreements, indemnity agreements, escrow
agreements or related documents, as the Majority Shareholders or the Buyer may reasonably require
in order to carry out the terms and provisions of this Section 7. The obligations under this
Section 7 shall terminate in accordance with Section 12(b).

     8. Legend. Any certificate(s) representing the Shares shall carry substantially the
following legend:

6

 

     “The transferability of this certificate and the shares of
stock represented hereby are subject to the restrictions, terms and
conditions (including repurchase and restrictions against transfers)
contained in a certain Restricted Stock Unit Agreement between the
Company and the holder of this certificate (a copy of which is
available at the offices of the Company for examination).”

     “The shares represented by this certificate have not been
registered under the Securities Act of 1933 or the securities laws
of any state. The shares may not be sold or transferred in the
absence of such registration or an exemption from registration.”

     9. Escrow Arrangement.

          (a) Escrow. In order to carry out the provisions of Sections 4, 6 and 7 of this
Agreement more effectively, the Company shall hold the Shares in escrow together with separate
stock powers executed by the Grantee in blank for transfer, and any Permitted Transferee shall, as
an additional condition to any transfer of Shares, execute a like stock power as to such Shares.
The Company shall not dispose of the Shares except as otherwise provided in this Agreement. In the
event of any repurchase by the Company (or any of its assigns), the Company is hereby authorized by
the Grantee and any Permitted Transferee, as the Grantee’s and each such Permitted Transferee’s
attorney-in-fact, to date and complete the stock powers necessary for the transfer of the Shares
being purchased and to transfer such Shares in accordance with the terms hereof. At such time as
any Shares are no longer subject to the Company’s repurchase, first refusal and drag along rights,
the Company shall, at the written request of the Grantee, deliver to the Grantee (or the relevant
Permitted Transferee) a certificate representing such Shares with the balance of the Shares (if
any) to be held in escrow pursuant to this Section 9.

          (b) Remedy. Without limitation of any other provision of this Agreement or other
rights, in the event that the Grantee, any Permitted Transferees or any other person or entity is
required to sell the Grantee’s Shares pursuant to the provisions of Sections 4, 6 and 7 of this
Agreement and in the further event that he or she refuses or for any reason fails to deliver to the
designated purchaser of such Shares the certificate or certificates evidencing such Shares together
with a related stock power, such designated purchaser may deposit the applicable purchase price for
such Shares with a bank designated by the Company, or with the Company’s independent public
accounting firm, as agent or trustee, or in escrow, for the Grantee, any Permitted Transferees or
other person or entity, to be held by such bank or accounting firm for the benefit of and for
delivery to him, her, them or it, and/or, in its discretion, pay such purchase price by offsetting
any indebtedness then owed by the Grantee as provided above. Upon any such deposit and/or offset
by the designated purchaser of such amount and upon notice to the person or entity who was required
to sell the Shares to be sold pursuant to the provisions of Sections 4, 6 and 7, such Shares shall
at such time be deemed to have been sold, assigned, transferred and conveyed to such purchaser, the
holder thereof shall have no further rights thereto (other than the right to withdraw the payment
thereof held in escrow, if applicable), and the Company shall record such transfer in its stock
transfer book or in any appropriate manner.

7

 

     10. Withholding Taxes. The Grantee acknowledges and agrees that the Company or any of
its Subsidiaries have the right to deduct from payments of any kind otherwise due to the Grantee,
or from the Shares held pursuant to Section 9 hereof, the minimum federal, state or local taxes of
any kind required by law to be withheld with respect to the issuance of the Shares by the Grantee.

     11. Assignment. At the discretion of the Board, the Company shall have the right to
assign the right to exercise its rights with respect to the Repurchase or pursuant to Section 6(c)
to any Person or Persons, in whole or in part in any particular instance, upon the same terms and
conditions applicable to the exercise thereof by the Company, and such assignee or assignees of the
Company shall then take and hold any Shares so acquired subject to such terms as may be specified
by the Company in connection with any such assignment.

     12. Miscellaneous Provisions.

          (a) Lockup provision. The Grantee and each Permitted Transferee shall agree, if
requested by the Company and any underwriter engaged by the Company, not to sell or otherwise
transfer or dispose of any securities of the Company (including, without limitation pursuant to
Rule 144 under the Act (or any successor or similar exemptive rule hereafter in effect)) held by
them for such period following the effective date of any registration statement of the Company
filed under the Act as the Company or such underwriter shall specify reasonably and in good faith,
not to exceed 180 days in the case of the Company’s Initial Public Offering or 90 days in the case
of any other public offering.

          (b) Termination. The Company’s Repurchase right with respect to Shares under
Section 4, the restrictions on transfer of Shares under Section 6(c) and the Grantee’s Drag Along
obligations under Section 7 shall terminate upon the closing of the Company’s Initial Public
Offering or upon consummation of any Sale Event, in either case as a result of which shares of the
Company (or successor entity) of the same class as the Shares are registered under Section 12 of
the Exchange Act of 1934 and publicly traded on NASDAQ/NMS or any national security exchange.

          (c) Record Owner; Dividends. The Grantee and any Permitted Transferees, during the
duration of this Agreement, shall be considered the record owners of and shall be entitled to vote
the Shares if and to the extent the Shares are entitled to voting rights. The Grantee and any
Permitted Transferee shall be entitled to receive all dividends and any other distributions
declared on the Shares provided, however, that the Company is under no duty to
declare any such dividends or to make any such distribution.

          (d) Equitable Relief. The parties hereto agree and declare that legal remedies are
inadequate to enforce the provisions of this Agreement and that equitable relief, including
specific performance and injunctive relief, may be used to enforce the provisions of this
Agreement.

          (e) Change and Modifications. This Agreement may not be orally changed, modified or
terminated, nor shall any oral waiver of any of its terms be effective. This

8

 

Agreement may be changed, modified or terminated only by an agreement in writing signed by the
Company and the Grantee.

          (f) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of Delaware without regard to conflict of law principles.

          (g) Headings. The headings are intended only for convenience in finding the subject
matter and do not constitute part of the text of this Agreement and shall not be considered in the
interpretation of this Agreement.

          (h) Saving Clause. If any provision(s) of this Agreement shall be determined to be
illegal or unenforceable, such determination shall in no manner affect the legality or
enforceability of any other provision hereof.

          (i) Notices. All notices, requests, consents and other communications shall be in
writing and be deemed given when delivered personally, by telex or facsimile transmission or when
received if mailed by first class registered or certified mail, postage prepaid. Notices to the
Company or the Grantee shall be addressed as set forth underneath their signatures below, or to
such other address or addresses as may have been furnished by such party in writing to the other.
Notices to any holder of the Shares other than the Grantee shall be addressed to the address
furnished by such holder to the Company.

          (j) Benefit and Binding Effect. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto, their respective successors, assigns, and legal
representatives. Without limitation of the foregoing, upon any stock-for-stock merger in which the
Company is not the surviving entity, shares of the Company’s successor issued in respect of the
Shares shall remain subject to vesting and the Repurchase right of first refusal hereunder. The
Company has the right to assign this Agreement, and such assignee shall become entitled to all the
rights of the Company hereunder to the extent of such assignment.

          (k) Dispute Resolution. Except as provided below, any dispute arising out of or
relating to this Agreement or the breach, termination or validity hereof shall be finally settled
by binding arbitration conducted expeditiously in accordance with the J.A.M.S./Endispute
Comprehensive Arbitration Rules and Procedures (the “J.A.M.S. Rules”). The arbitration shall be
governed by the United States Arbitration Act, 9 U.S.C. §§1-16, and judgment upon the award
rendered by the arbitrators may be entered by any court having jurisdiction thereof. The place of
arbitration shall be Boston, Massachusetts.

     The parties covenant and agree that the arbitration shall commence within 60 days of the date
on which a written demand for arbitration is filed by any party hereto. In connection with the
arbitration proceeding, the arbitrator shall have the power to order the production of documents by
each party and any third-party witnesses. In addition, each party may take up to three depositions
as of right, and the arbitrator may in his or her discretion allow additional depositions upon good
cause shown by the moving party. However, the arbitrator shall not have the power to order the
answering of interrogatories or the response to requests for admission. In connection with any
arbitration, each party shall provide to the other, no later than seven (7) business days before
the date of the arbitration, the identity of all persons that may testify at the

9

 

arbitration and a copy of all documents that may be introduced at the arbitration or
considered or used by a party’s witness or expert. The arbitrator’s decision and award shall be
made and delivered within six (6) months of the selection of the arbitrator. The arbitrator’s
decision shall set forth a reasoned basis for any award of damages or finding of liability. The
arbitrator shall not have power to award damages in excess of actual compensatory damages and shall
not multiply actual damages or award punitive damages or any other damages that are specifically
excluded under this Agreement, and each party hereby irrevocably waives any claim to such damages.

     The parties covenant and agree that they will participate in the arbitration in good faith.
This Section 12(k) applies equally to requests for temporary, preliminary or permanent injunctive
relief, except that in the case of temporary or preliminary injunctive relief any party may proceed
in court without prior arbitration for the limited purpose of avoiding immediate and irreparable
harm.

     Each of the parties hereto (i) hereby irrevocably submits to the jurisdiction of any United
States District Court of competent jurisdiction for the purpose of enforcing the award or decision
in any such proceeding, (ii) hereby waives, and agrees not to assert, by way of motion, as a
defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject
personally to the jurisdiction of the above-named courts, that its property is exempt or immune
from attachment or execution (except as protected by applicable law), that the suit, action or
proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is
improper or that this Agreement or the subject matter hereof may not be enforced in or by such
court, and hereby waives and agrees not to seek any review by any court of any other jurisdiction
which may be called upon to grant an enforcement of the judgment of any such court. Each of the
parties hereto hereby consents to service of process by registered mail at the address to which
notices are to be given. Each of the parties hereto agrees that its, his or her submission to
jurisdiction and its, his or her consent to service of process by mail is made for the express
benefit of the other parties hereto. Final judgment against any party hereto in any such action,
suit or proceeding may be enforced in other jurisdictions by suit, action or proceeding on the
judgment, or in any other manner provided by or pursuant to the laws of such other jurisdiction.

          (l) Counterparts. For the convenience of the parties and to facilitate execution,
this Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same document.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the Company and the Grantee have executed this Restricted Stock Agreement
as of the date first above written.

	 	 	 	 	 
	 	 	NAMEMEDIA, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	GRANTEE:
	 
	 	 	 	 
	 	 	 
	 

	 	Name:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

Signature Page to Restricted Stock Unit Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]