Document:

Exhibit 10.9

 Exhibit 10.9 
  
 THIS WARRANT AND THE COMMON STOCK PURCHASABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE OFFERING OF THIS SECURITY HAS NOT BEEN REVIEWED OR APPROVED BY ANY STATE SECURITIES ADMINISTRATOR. 
  
 STOCK SUBSCRIPTION WARRANT 
  
 To Purchase Common Stock of 
 Cbeyond Communications, Inc. 
  

					
	 Date of Initial Issuance:
	  	November 1, 2002	  	 
	 Number of Shares:
	  	24,969	  	 
	 Initial Warrant Price:
	  	$1.00	  	 
	 Expiration Date:
	  	March 31, 2010	  	 

  
 THIS CERTIFIES
THAT for value received, CISCO SYSTEMS CAPITAL CORPORATION, a Nevada corporation, or its registered assigns (hereinafter called “Holder”) is entitled to purchase from CBEYOND COMMUNICATIONS, INC., a Delaware corporation
(“Company”), at any time during the Term of this Warrant, Twenty Four Thousand Nine Hundred and Sixty Nine (24,969) shares of common stock, $0.01 par value, of Company (the “Common Stock”), at the Warrant Price, payable as
provided herein. The exercise of this Warrant shall be subject to the provisions, limitations and restrictions herein contained. This Warrant may be exercised in whole or in part. 
  
 SECTION 1. Definitions. 
  
 For all purposes of this Warrant, the following terms shall have the meanings indicated (any capitalized terms used herein and not otherwise defined
herein to have the meanings ascribed to them in the Agreement): 
  
 “Agreement” shall mean the Second Amended and Restated Credit Agreement dated as of November 1, 2002 among Company, each Additional Borrower named therein, Holder, the other Lenders named therein and the Agent under which
Holder and the other Lenders have agreed to make certain credit extensions to Company. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time. 
  
 “Registration Rights Agreement” shall mean that certain Second Amended and Restated Registration Rights Agreement dated as of November 1,
2002, among Company, the Preferred Holders and the Common Holders. 

 “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

  
 “Term of this Warrant” shall mean the period
beginning on the date of initial issuance hereof and ending on March 31, 2010. 
  
 “Warrant Price” shall mean $1.00 per share, subject to adjustment in accordance with Section 6 hereof. 
  
 “Warrants” shall mean this Warrant and any other Warrant or Warrants issued to any transferees of such original holder or subsequent
holder. 
  
 “Warrant Shares” shall mean shares of
Common Stock, subject to adjustment or change as herein provided, purchased or purchasable by Holder upon the exercise hereof. 
  
 SECTION 2. Exercise of Warrant. 
  
 2.1 Procedure for Exercise of Warrant. To exercise this Warrant in whole or in part (but not as to any fractional share of Common Stock),
Holder shall deliver to Company at its office referred to in Section 14 hereof at any time and from time to time during the Term of this Warrant: (i) the Notice of Exercise in the form of Exhibit A attached hereto, (ii) cash, certified or
official bank check payable to the order of Company, wire transfer of funds to Company’s account, or cancellation of any indebtedness in order of maturity of the Company to Holder (or any combination of any of the foregoing) in the amount of
the Warrant Price for each share being purchased and any amount required to be paid by the Holder on account of a transfer of a Warrant or Warrant Shares pursuant to Section 3, and (iii) this Warrant. Notwithstanding any provisions herein to the
contrary, if the Current Market Price (as defined in Section 6) is greater than the Warrant Price (at the date of calculation, as set forth below), in lieu of exercising this Warrant as hereinabove permitted, Holder may elect to receive shares of
Common Stock equal to the value (as determined below) of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the office of Company referred to in Section 14 hereof, together with the Notice of Exercise, in which
event Company shall issue to Holder that number of whole shares of Common Stock computed using the following formula: 
  
 CS = WCS x (CMP-WP) 
 CMP 
  

					
	Where	 	 	 	 
	 	 	CS	 	equals the number of shares of Common Stock to be issued to Holder
			
	 	 	 WCS
	 	equals the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such
calculation)
			
	 	 	 CMP
	 	equals the Current Market Price (at the date of such calculation)
			
	 	 	WP	 	equals the Warrant Price (as adjusted to the date of such calculation)

  
 In the event of any exercise of the
rights represented by this Warrant, a certificate or certificates for the shares of Common Stock so purchased, registered in the name of Holder or, subject to compliance with Section 7.2, such other name or names as may be designated by Holder,
shall be 
  

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 delivered to Holder hereof within a reasonable time, not exceeding fifteen (15) days, after the rights represented by
this Warrant shall have been so exercised; and, unless this Warrant has expired, a new Warrant representing the number of shares (except a remaining fractional share), if any, with respect to which this Warrant shall not then have been exercised
shall also be issued to Holder hereof within such time. The person in whose name any certificate for shares of Common Stock is issued upon exercise of this Warrant shall for all purposes be deemed to have become the holder of record of such shares
on the date on which Holder shall have complied with the conditions for exercise of this Warrant set forth above, irrespective of the date of delivery of such certificate, except that, if the date of such compliance is a date when the stock transfer
books of Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open. 
  
 2.2 Transfer Restriction Legend. Each certificate for Warrant
Shares shall bear the following legend (and any additional legend required by (i) any applicable state securities laws and (ii) any securities exchange upon which such Warrant Shares may, at the time of such exercise, be listed) on the face thereof
unless at the time of exercise such Warrant Shares shall be registered under the Securities Act: 
  
 “The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be sold or transferred
in the absence of such registration or an exemption therefrom under said Act.” 
  
 Any certificate issued at any time in exchange or substitution for any certificate bearing such legend (except a new certificate issued upon completion of a public distribution under a registration statement of the securities represented
thereby) shall also bear such legend unless, in the opinion of counsel for Holder thereof (which counsel shall be reasonably satisfactory to Company) the securities represented thereby are not, at such time, required by law to bear such legend.

  
 SECTION 3. Covenants as to Common Stock. Company covenants and
agrees that all shares of Common Stock that may be issued upon the exercise of the rights represented by this Warrant shall, upon issuance, be validly issued, fully paid and nonassessable, and free from all taxes, liens and charges with respect to
the issue thereof. The Company further covenants and agrees that it shall pay when due and payable any and all federal and state taxes (other than federal or state income taxes or similar laws) which may be payable in respect of the issue of this
Warrant or any Common Stock or certificates therefor issuable upon the exercise of this Warrant, except that, if Warrant Shares or new Warrants shall be registered in a name or names other than the name of the Holder, funds sufficient to pay all
transfer taxes payable as a result of such transfer shall be paid by the Holder at the time of delivery of the Notice of Exercise. 
  
 SECTION 4. Representations and Warranties Regarding Capitalization Issues. As of the initial issuance hereof, Company does not have outstanding any
securities convertible into or exchangeable for, or any rights to subscribe for or to purchase, or any options or warrants for the purchase of, or any agreement providing for the issuance (contingent or otherwise) of, or any calls, commitments or
claims of any character relating to, its capital stock, in each case other than as disclosed in writing to Holder prior to the date hereof. 
  

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 SECTION 5. Adjustment of Number of Shares. Upon each adjustment of the Warrant Price as provided in Section
6 (other than clause (i) thereof), Holder shall thereafter be entitled to purchase, at the Warrant Price resulting from such adjustment, only the number of shares (calculated to the nearest tenth of a share) obtained by multiplying the Warrant Price
in effect immediately prior to such adjustment by the number of shares purchasable pursuant hereto immediately prior to such adjustment and dividing the product thereof by the Warrant Price resulting from such adjustment. 
  
 SECTION 6. Adjustment of Warrant Price. The Warrant Price shall be subject to
adjustment from time to time as follows: 
  
 (i) If Company shall
at any time or from time to time during the Term of this Warrant issue shares of Common Stock other than Excluded Stock (as hereinafter defined) without consideration or for a consideration per share less than the Warrant Price in effect immediately
prior to the issuance of such Common Stock, the Warrant Price in effect immediately prior to each such issuance shall forthwith (except as provided in this clause (i)) be adjusted to a price equal to the quotient obtained by dividing: 
  
 (A) an amount equal to the sum of 
  
 (x) the total number of shares of Common Stock outstanding (including any
shares of Common Stock deemed to have been issued pursuant to subdivision (3) of this clause (i) and to clause (ii) below) immediately prior to such issuance multiplied by the Warrant Price in effect immediately prior to such issuance, plus

  
 (y) the consideration received by Company upon such issuance,

  
 by 
  
 (B) the total number of shares of Common Stock outstanding (including any
shares of Common Stock deemed to have been issued pursuant to subdivision (3) of this clause (i) and to clause (ii) below) immediately after the issuance of such Common Stock. 
  
 For the purposes of any adjustment of the Warrant Price pursuant to this clause (i), the following provisions shall be
applicable: 
  

	 	1.	In the case of the issuance of Common Stock for cash, the consideration shall be deemed to be the amount of cash paid therefor after deducting therefrom any discounts, commissions
or other expenses allowed, paid or incurred by Company for any underwriting or otherwise in connection with the issuance and sale thereof. 

  

	 	2.	In the case of the issuance of Common Stock for a consideration in whole or in part other than cash, the consideration other than cash shall be deemed to be the fair market value
thereof as determined by the Board of Directors of Company (the “Board”), irrespective of any accounting treatment; provided, however, that such fair market value as determined by the Board, together with any cash consideration being paid,
shall not exceed an aggregate amount equal to the 

  

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 product of (i) the aggregate Current Market Price per share of Common Stock as determined as provided in
clause (vii) below, multiplied by (ii) the number of shares of Common Stock being issued in such issuance. 
  

	 	3.	In the case of the issuance of (i) options to purchase or rights to subscribe for Common Stock, (ii) securities or obligations by their terms convertible into or exchangeable for
Common Stock or (iii) options to purchase or rights to subscribe for such convertible or exchangeable securities or obligations: 

  

	 	(A)	the aggregate maximum number of shares of Common Stock deliverable upon exercise of such options to purchase or rights to subscribe for Common Stock shall be deemed to have been
issued at the time such options or rights were issued and for a consideration equal to the consideration (determined in the manner provided in subdivisions (1) and (2) above with the proviso in subdivision (2) being applied to the number of shares
of Common Stock deliverable upon such exercise), if any, received by Company upon the issuance of such options or rights plus the minimum purchase price provided in such options or rights for the Common Stock covered thereby;

  

	 	(B)	the aggregate maximum number of shares of Common Stock deliverable upon conversion of or in exchange for any such convertible or exchangeable securities or obligations or upon the
exercise of options to purchase or rights to subscribe for such convertible or exchangeable securities or obligations and subsequent conversions or exchanges thereof shall be deemed to have been issued at the time such securities or obligations were
issued or such options or rights were issued and for a consideration equal to the consideration received by Company for any such securities or obligations and related options or rights (excluding any cash received on account of accrued interest or
accrued dividends), plus the additional consideration, if any, to be received by Company upon the conversion or exchange of such securities or obligations or the exercise of any related options or rights (the consideration in each case to be
determined in the manner provided in subdivisions (1) and (2) above with the proviso in subdivision (2) being applied to the number of shares of Common Stock deliverable upon such conversion, exchange or exercise); 

  

	 	(C)	on any change in the number of shares of Common Stock deliverable upon exercise of any such options or rights or conversion of or exchange for such convertible or exchangeable
securities or obligations, other than a change resulting from the antidilution provisions thereof, the Warrant Price shall forthwith be readjusted to such Warrant Price as would have obtained had the adjustment made upon the issuance of such
options, rights or securities or obligations not converted prior to such change or options or rights related to such securities or obligations not converted prior to such change being made upon the basis of such change; and 

 

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	 	(D)	on the expiration of any such options or rights, the termination of any such rights to convert or exchange or the expiration of any options or rights related to such convertible or
exchangeable securities or obligations, the Warrant Price shall forthwith be readjusted to such Warrant Price as would have obtained had the adjustment made upon the issuance of such options, rights, securities or options or rights related to such
securities or obligations being made upon the basis of the issuance of only the number of shares of Common Stock actually issued upon the conversion or exchange of such securities or obligations or upon the exercise of the options or rights related
to such securities or obligations. 

  
 (ii)
“Excluded Stock” shall mean shares of Common Stock issued by the Company (1) as a stock dividend payable in shares of Common Stock or upon any subdivision or split up of the outstanding shares of Common Stock, under any of the
circumstances for which an adjustment is provided in clauses (iii) or (iv) of this Section 6 or in Section 8, (2) in connection with the issuance of Common Stock (including any share of Common Stock deemed to have been issued pursuant to subdivision
(3) of clause (i) above) under any stock option or other similar incentive plan or stock option arrangement approved by the Board (appropriately adjusted for stock splits and combinations) to directors, officers, or employees of, consultants or
providers of goods or services to, Company, Borrower or any of their respective Subsidiaries or any other person eligible to acquire Common Stock of Company under said plans or arrangements, (3) upon conversion of Company’s Series B
Participating Preferred Stock, par value $0.01 per share, (4) as non-voting Common Stock issued in exchange for voting Common Stock (or vice versa) on a share for share basis, (5) which has already been deemed issued hereunder and taken into account
in the adjustment of the Warrant Price to the extent required by this Section 6, (6) in connection with the issuances of Common Stock pursuant to the exercise of any warrant issued in connection with a public offering or private placement of debt
securities in an aggregate principal amount of not less than $25,000,000, and (7) in connection with the issuance of Common Stock pursuant to the exercise of any warrant to purchase shares of Common Stock now or hereafter issued to Holder.

  
 (iii) If, at any time during the Term of this Warrant, the
number of shares of Common Stock outstanding is increased by a stock dividend payable in shares of Common Stock or by a subdivision or split-up of shares of Common Stock, then, following the record date fixed for the determination of holders of
Common Stock entitled to receive such stock dividend, subdivision or split-up, the Warrant Price shall be appropriately decreased so that the number of shares of Common Stock issuable upon the exercise hereof shall be increased in proportion to such
increase in outstanding shares. 
  
 (iv) If, at any time during
the Term of this Warrant, the number of shares of Common Stock outstanding is decreased by a combination of the outstanding shares of Common Stock, then, following the record date for such combination, the Warrant Price shall appropriately increase
so that the number of shares of Common Stock issuable upon the exercise hereof shall be decreased in proportion to such decrease in outstanding shares. 
  
 (v) In case, at any time during the Term of this Warrant, Company shall declare a cash dividend upon its Common Stock payable otherwise than out of
earnings or earned surplus 
  

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 or shall distribute to holders of its Common Stock shares of its capital stock (other than Common Stock), stock or other
securities of other persons, evidences of indebtedness issued by Company or other persons, assets (excluding cash dividends and distributions) or options or rights (excluding options to purchase and rights to subscribe for Common Stock or other
securities of Company convertible into or exchangeable for Common Stock), then, in each such case, immediately following the record date fixed for the determination of the holders of Common Stock entitled to receive such dividend or distribution,
the Warrant Price in effect thereafter shall be determined by multiplying the Warrant Price in effect immediately prior to such record date by a fraction of which the numerator shall be an amount equal to the difference of (x) the Current Market
Price of one share of Common Stock minus (y) the fair market value (as determined by the Board, whose determination shall be conclusive) of the amount of cash, stock, securities, evidences of indebtedness, assets, options or rights, as the case may
be, so distributed in respect of one share of Common Stock, and of which the denominator shall be such Current Market Price. 
  
 (vi) All calculations under this Section 6 shall be made to the nearest cent or to the nearest one-tenth (1/10) of a share, as the case may be.

  
 (vii) For the purpose of any computation pursuant to this
Section 6, the Current Market Price at any date of one share of Common Stock shall be deemed to be the average of the daily closing prices for the 15 consecutive business days ending on the last business day before the day in question (as adjusted
for any stock dividend, split, combination or reclassification that took effect during such 15 business day period). The closing price for each day shall be the last reported sales price regular way or, in case no such reported sales took place on
such day, the average of the last reported bid and asked prices regular way, in either case on the principal national securities exchange on which the Common Stock is listed or admitted to trading or as reported by Nasdaq (or if the Common Stock is
not at the time listed or admitted for trading on any such exchange or if prices of the Common Stock are not reported by Nasdaq then such price shall be equal to the average of the last reported bid and asked prices on such day as reported by The
National Quotation Bureau Incorporated or any similar reputable quotation and reporting service, if such quotation is not reported by The National Quotation Bureau Incorporated); provided, however, that if the Common Stock is not traded in such
manner that the quotations referred to in this clause (vii) are available for the period required hereunder, the Current Market Price shall be determined in good faith by the Board or, if such determination cannot be made, by a nationally recognized
independent investment banking or accounting firm selected by the Board (or if such selection cannot be made, by a nationally recognized independent investment banking or accounting firm selected by the American Arbitration Association in accordance
with its rules). 
  
 (viii) Whenever the Warrant Price shall be
adjusted as provided in this Section 6, Company shall prepare a statement showing the facts requiring such adjustment and the Warrant Price that shall be in effect after such adjustment. Company shall cause a copy of such statement to be sent by
mail, first class postage prepaid, to each Holder at its, his or her address appearing on Company’s records. Where appropriate, such copy may be given in advance and may be included as part of the notice required to be mailed under the
provisions of clause (x) of this Section 6. 
  

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 (ix) Adjustments made pursuant to clauses (iii), (iv) and (v) above shall be made on the date such
dividend, subdivision, split-up, combination or distribution, as the case may be, is made, and shall become effective at the opening of business on the business day next following the record date for the determination of stockholders entitled to
such dividend, subdivision, split-up, combination or distribution. 
  
 (x) In the event Company shall propose to take any action of the types described in clauses (iii), (iv), or (v) of this Section 6, Company shall forward, at the same time and in the same manner, to Holder such notice, if any, which Company
shall give to the holders of capital stock of Company. 
  
 (xi) In
any case in which the provisions of this Section 6 shall require that an adjustment shall become effective immediately after a record date for an event, Company may defer until the occurrence of such event issuing to Holder of all or any part of
this Warrant which is exercised after such record date and before the occurrence of such event the additional shares of capital stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of capital
stock issuable upon such exercise before giving effect to such adjustment exercise; provided, however, that Company shall deliver to such Holder a due bill or other appropriate instrument evidencing such Holder’s right to receive such
additional shares upon the occurrence of the event requiring such adjustment. 
  
 SECTION 7. Ownership. 
  
 7.1
Ownership of This Warrant. Company may deem and treat the person in whose name this Warrant is registered as the holder and owner hereof (notwithstanding any notations of ownership or writing hereon made by anyone other than Company) for
all purposes and shall not be affected by any notice to the contrary until presentation of this Warrant for registration of transfer as provided in this Section 7. 
  
 7.2 Transfer and Replacement. Subject to the restrictions of Section 7.3 hereof, this Warrant and all rights
hereunder are transferable in whole or in part upon the books of Company by Holder hereof in person or by duly authorized attorney, and a new Warrant or Warrants, of the same tenor as this Warrant but registered in the name of the transferee or
transferees (and in the name of Holder, if a partial transfer is effected) shall be made and delivered by Company upon surrender of this Warrant duly endorsed, at the office of Company referred to in Section 14 hereof, together with a properly
executed Assignment (in the form of Exhibit B or Exhibit C hereto, as the case may be). Upon receipt by Company of evidence reasonably satisfactory to it of the loss, theft or destruction, and, in such case, of indemnity or security
reasonably satisfactory to it, and upon surrender of this Warrant if mutilated, Company shall make and deliver a new Warrant of like tenor, in lieu of this Warrant. This Warrant shall be promptly cancelled by Company upon the surrender hereof in
connection with any transfer or replacement. Except as otherwise provided above, in the case of the loss, theft or destruction of a Warrant, Company shall pay all expenses, taxes and other charges payable in connection with any transfer or
replacement of this Warrant, other than stock transfer taxes (if any) payable in connection with a transfer of this Warrant, which shall be payable by Holder. Holder shall not transfer this Warrant and the rights hereunder except in compliance with
federal and state securities laws. 
  

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 7.3 Restrictions on Transfer. Holder shall not transfer, directly or indirectly, the
Warrant or any Warrant Shares owned or controlled by it (i) to any person with substantial operations as a telecommunications service provider, (ii) in amounts of less than 100,000 Warrant Shares in any single transaction (such number shall be
adjusted proportionately each time an adjustment is made under Section 5 as to the number of shares subject to this Warrant), or (iii) to any person who is not an “accredited investor” as that term is defined in Regulation D promulgated
under the Securities Act. 
  
 SECTION 8. 
  
 8.1 Mergers, Consolidation, Sales. In the case of any proposed
consolidation or merger of Company with another entity, or the proposed sale of all or substantially all of its assets to another person or entity, or any proposed reorganization or reclassification of the capital stock of Company, then, as a
condition of such consolidation, merger, sale, reorganization or reclassification, Company shall give 30 days’ prior written notice thereof to Holder hereof and lawful and adequate provision shall be made whereby Holder shall thereafter have
the right to receive upon the basis and upon the terms and conditions specified herein, in lieu of the shares of the Common Stock of Company immediately theretofore purchasable hereunder, such shares of stock, securities or assets as may (by virtue
of such consolidation, merger, sale, reorganization or reclassification) be issued or payable with respect to or in exchange for the number of shares of such Common Stock purchasable hereunder immediately before such consolidation, merger, sale,
reorganization or reclassification. In any such case appropriate provision shall be made with respect to the rights and interests of Holder to the end that the provisions hereof shall thereafter be applicable as nearly as may be practicable, in
relation to any shares of stock, securities or assets thereafter deliverable upon the exercise of this Warrant. 
  
 8.2 Approved Sale. 
  
 (i) Notwithstanding the foregoing, in the event that the Board votes for and consents to a Sale of the Company (an “Approved Sale”) Holder
(which term when used in this Section 8.2 shall include Holder’s successors, assigns and transferees) shall vote for (to the extent Holder has voting rights), consent to and raise no objections against such Approved Sale. If the Approved Sale
is structured (A) as a merger or consolidation, Holder shall waive any dissenters rights, appraisal rights or similar rights in connection with such merger or consolidation or (B) as a sale of securities, Holder shall agree to sell all of
Holder’s Warrants and Warrant Shares on the terms and conditions of the Approved Sale. Holder shall take all necessary or desirable actions in connection with the consummation of the Approved Sale as reasonably requested by the board of
directors of Company. 
  
 (ii) The obligations of Holder with
respect to an Approved Sale are subject to the satisfaction of the following conditions: (A) upon the consummation of the Approved Sale, Holder shall, without duplication, receive (1) in consideration of the shares of Common Stock then held by
Holder (including shares acquired by Holder upon exercise of its Warrants in connection with such Approved Sale), the same per share consideration that is received by other holders of Common Stock in consideration of their shares of Common Stock
that are sold in or voted in favor of such Approved Sale and (2) in consideration of the Warrants then held by Holder and Warrant Shares then held by Holder with respect to which Holder does not exercise 
  

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 its Warrants prior to or in connection with such Approved Sale, an amount equal to (x) the amount that Holder would have
received (in accordance with the foregoing clause (1)) if such Warrants had been fully exercised into shares of Common Stock immediately prior to or in connection with such Approved Sale less (y) an amount equal to the aggregate amount of the
exercise price of Holder’s Warrant Shares with respect to which its Warrants are not exercised prior to or in connection with such Approved Sale, (B) if the holders of Common Stock and/or Series B Preferred Stock (or equity securities
exchangeable therefor) are given an option as to the form and consideration to be received, Holder shall be given the same option, and (C) Holder shall be given the opportunity to exercise its then exercisable rights to acquire Common Stock prior to
the consummation of the Approved Sale and to participate in such sale as a holder of Common Stock. 
  
 (iii) As used in this Section, “Sale of the Company” means either (A) the sale, lease, transfer, conveyance or other disposition, in one or a
series of related transactions, of all or substantially all of the assets of Company and its subsidiaries, taken as a whole (other than a collateral assignment by Company and its subsidiaries of such assets to any lender as security for
Company’s and its subsidiaries obligations to such lender), or (B) a transaction or series of transactions (including by way of merger, consolidation, sale of securities, recapitalization or otherwise) the result of which is that (1) any
“person” or “group” (as such terms are used in Section 13(d)(3) of the Exchange Act) other than Parent or Parent’s largest equity holder as of the Date of Initial Issuance (and its affiliates) becomes the “beneficial
owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 promulgated under the Exchange Act), directly or indirectly through one or more intermediaries, of more than 50% of the voting power of the outstanding voting stock of Company or (2)
the beneficial owners of Company’s outstanding voting stock immediately prior to the transaction cease to own directly or indirectly at least 50% of the voting power of the outstanding voting stock of Company other than as a result of a sale of
stock which is a public offering. 
  
 (iv) The provisions of this
Section 8.2 shall terminate upon the earlier to occur of (i) the consummation of an initial public offering and (ii) the completion of a Sale of the Company. 
  
 SECTION 9. Notice of Dissolution or Liquidation. In case of any distribution of the assets of Company in dissolution or liquidation (except under
circumstances when the foregoing Section 8 shall be applicable), Company shall give notice thereof to Holder hereof and shall make no distribution to shareholders until the expiration of ten (10) days from the date of mailing of the aforesaid notice
and, in any case, Holder hereof may exercise this Warrant within thirty (30) days from the date of the giving of such notice, and all rights herein granted not so exercised within such thirty-day period shall thereafter become null and void.

  
 SECTION 10. Notice of Extraordinary Dividends. If the Board of
Directors of Company shall declare any dividend or other distribution on its Common Stock except out of earned surplus or by way of a stock dividend payable in shares of its Common Stock, Company shall mail notice thereof to Holder hereof not less
than thirty (30) days prior to the record date fixed for determining shareholders entitled to participate in such dividend or other distribution, and Holder hereof shall not participate in such dividend or other distribution unless this Warrant is
exercised prior to such record date. The provisions of this Section 10 shall not apply to distributions made in connection with transactions covered by Section 8. 
  

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 SECTION 11. Fractional Shares. Fractional shares shall not be issued upon the exercise of this Warrant but
in any case where Holder would, except for the provisions of this Section 11, be entitled under the terms hereof to receive a fractional share upon the complete exercise of this Warrant, Company shall, upon the exercise of this Warrant for the
largest number of whole shares then called for, pay a sum in cash equal to the excess of the value of such fractional share (determined in such reasonable manner as may be prescribed in good faith by the Board of Directors of Company) over the
Warrant Price for such fractional share. 
  
 SECTION 12. Special
Arrangements of Company. Company covenants and agrees that during the Term of this Warrant, unless otherwise approved by Holder: 
  
 12.1 Shall Not Amend Certificate. Company shall not amend its certificate or articles, as the case may be, of incorporation to eliminate as
an authorized class of capital stock that class denominated as “Common Stock” on the date hereof. 
  
 12.2 Shall Bind Successors. This Warrant shall be binding upon any corporation or other person or entity succeeding to Company by merger or
consolidation. 
  
 SECTION 13. Registration. Company covenants and
agrees that the Holder shall be offered the right to become a party to the Registration Rights Agreement. 
  
 SECTION 14. Notices. Any notice or other document required or permitted to be given or delivered to Holder shall be delivered at, or sent by certified or registered mail to, Holder at its address for
notices set forth in the Agreement or to such other address as shall have been furnished to Company in writing by Holder. Any notice or other document required or permitted to be given or delivered to Company shall be delivered at, or sent by
certified or registered mail to, Company at its address for notices set forth in the Agreement or to such other address as shall have been furnished in writing to Holder by Company. Any notice so addressed and mailed by registered or certified mail
shall be deemed to be given when so mailed. Any notice so addressed and otherwise delivered shall be deemed to be given when actually received by the addressee. 
  

SECTION 15. No Rights as Stockholder; Limitation of Liability. This Warrant shall not entitle Holder to any of the rights of a shareholder of
Company except upon exercise in accordance with the terms hereof. No provision hereof, in the absence of affirmative action by Holder to purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the Warrant Price hereunder or as a shareholder of Company, whether such liability is asserted by Company or by creditors of Company. 
  
 SECTION 16. Law Governing. THE VALIDITY, INTERPRETATION, AND ENFORCEMENT OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF. 
  
 SECTION 17. Amendments. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by
both parties (or any respective predecessor in interest thereof). The headings in this Warrant are for purposes of reference only and shall not affect the meaning or construction of any of the provisions hereof. 
  

 -11- 

 IN WITNESS WHEREOF, Company has caused this Warrant to be signed by its duly authorized officer this 1st
day of November, 2002. 
  

			
	Cbeyond Communications, Inc.
		
	By:	 	 CBEYOND COMMUNICATIONS, INC.

	Title:	 	  

  

			
	 Agreed and Accepted
  
 Cisco Systems Capital Corporation

		
	By:	 	 CISCO SYSTEMS CAPITAL CORPORATION

	Title:	 	  

  

 -12- 

 EXHIBIT A 
  

FORM OF NOTICE OF EXERCISE 
  
 [To be signed only upon exercise of the Warrant] 
  
 TO BE EXECUTED BY THE REGISTERED HOLDER 
 TO
EXERCISE THE ATTACHED WARRANT 
  
 The undersigned hereby exercises
the right to purchase                  shares of Common Stock which the undersigned is entitled to purchase by the terms of the attached Warrant according to the
conditions thereof, and herewith 
  
 [check appropriate box(es)] 
  

	q	makes payment of $                 therefor in cash; 

  

	q	makes payment of $                 therefor through cancellation of indebtedness; or

  

	q	directs Company to issue                  shares, and to withhold
             shares in lieu of payment of the Warrant Price, as described in Section 2.1 of the Warrant. 

  
 All shares to be issued pursuant hereto (i) shall be issued only following the making of usual and customary investment representations
appropriate under the circumstances and (ii) shall be issued in the name of and the initial address of such person to be entered on the books of Cbeyond Communications, Inc. shall be: 
  
 The shares are to be issued in certificates of the following denominations: 
  

			
	

	[Type Name of Holder]
		
	By:	 	

	Title:	 	  

  

			
		
	Dated:	 	

  
  

 EXHIBIT B 
  

FORM OF ASSIGNMENT 
 (ENTIRE) 
  
 [To be signed only upon transfer of entire Warrant] 
  
 TO BE EXECUTED BY THE REGISTERED HOLDER 
 TO TRANSFER THE ATTACHED WARRANT 
  
 FOR VALUE RECEIVED
                                        
     hereby sells, assigns and transfers unto
                                        
     all rights of the undersigned under and pursuant to the attached Warrant, and the undersigned does hereby irrevocably constitute and appoint
                                 Attorney to transfer said Warrant on the books of
Cbeyond Communications, Inc., with full power of substitution. 
  

			
	

	[Type Name of Holder]
		
	By:	 	

	Title:	 	  

  

			
		
	Dated:	 	

  
 NOTICE 
  
 The signature to the foregoing Assignment must correspond to
the name as written upon the face of the attached Warrant in every particular, without alteration or enlargement or any change whatsoever. 

 EXHIBIT C 
  

FORM OF ASSIGNMENT 
 (PARTIAL) 
  
 [To be signed only upon partial transfer of Warrant] 
  
 TO BE EXECUTED BY THE REGISTERED HOLDER 
 TO TRANSFER THE ATTACHED WARRANT 
  
 FOR VALUE RECEIVED
                                        
     hereby sells, assigns and transfers unto
                                        
     (i) the rights of the undersigned to purchase          shares of Common Stock under and pursuant to the attached Warrant, and (ii) on a non-exclusive basis, all other rights
of the undersigned under and pursuant to the attached Warrant, it being understood that the undersigned shall retain, severally (and not jointly) with the transferee(s) named herein, all rights assigned on such non-exclusive basis. The undersigned
does hereby irrevocably constitute and appoint
                                        
     Attorney to transfer said Warrant on the books of Cbeyond Communications, Inc., with full power of substitution. 
  

			
	

	[Type Name of Holder]
		
	By:	 	

	Title:	 	  

  

			
		
	Dated:	 	

  
 NOTICE 
  
 The signature to the foregoing Assignment must correspond to
the name as written upon the face of the attached Warrant in every particular, without alteration or enlargement or any change whatsoever. 
  

 1Exhibit 10.11

 Exhibit 10.11 
  
 CBEYOND COMMUNICATIONS, INC. 
  

2002 EQUITY INCENTIVE PLAN 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	1.	  	PURPOSES OF THE PLAN	  	1
	2.	  	DEFINITIONS	  	1
	3.	  	STOCK SUBJECT TO THE PLAN	  	4
	4.	  	ADMINISTRATION OF THE PLAN	  	4
	5.	  	ELIGIBILITY	  	6
	6.	  	LIMITATIONS	  	6
	7.	  	TERM OF PLAN	  	7
	8.	  	TERM OF OPTION	  	7
	9.	  	OPTION EXERCISE PRICE AND CONSIDERATION	  	7
	10.	  	EXERCISE OF OPTION	  	8
	11.	  	NON-TRANSFERABILITY OF OPTIONS AND STOCK PURCHASE RIGHTS	  	11
	12	  	STOCK PURCHASE RIGHTS	  	11
	13.	  	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR ASSET SALE	  	12
	14.	  	TIME OF GRANTING OPTIONS AND STOCK PURCHASE RIGHTS	  	14
	15.	  	AMENDMENT AND TERMINATION OF THE PLAN	  	14
	16.	  	STOCKHOLDER APPROVAL	  	15
	17.	  	INABILITY TO OBTAIN AUTHORITY	  	15
	18.	  	RESERVATION OF SHARES	  	15
	19.	  	INFORMATION TO HOLDERS AND PURCHASERS	  	15
	20.	  	REPURCHASE PROVISIONS	  	15
	21.	  	INVESTMENT INTENT	  	16
	22.	  	GOVERNING LAW	  	16
	23.	  	APPLICABILITY OF STOCKHOLDERS AGREEMENT	  	16

  

 i 

 CBEYOND COMMUNICATIONS, INC. 
  
 2002 EQUITY INCENTIVE PLAN 
  
 1. Purposes of the Plan. The purposes of the Cbeyond Communications, Inc. 2002 Equity Incentive Plan are to attract and retain the best available
personnel for positions of substantial responsibility, to provide additional incentive to Employees, Directors and Consultants and to promote the success of the Company’s business. Options granted under the Plan may be Incentive Stock Options
or Non-Qualified Stock Options, as determined by the Administrator at the time of grant. Stock Purchase Rights may also be granted under the Plan. 
  
 2. Definitions. As used herein, the following definitions shall apply: 
  
 (a) “Acquisition” means (1) a dissolution, liquidation or winding up of the Company; or (2)
any consolidation or merger of the Company with or into another entity or entities (whether or not the Company is the surviving entity) or any sale or transfer by the Company of more than 50% of its assets (determined either for the Company alone or
with its Subsidiaries on a consolidated basis) or any sale, transfer or issuance or series of sales, transfers and/or issuances of shares of the Company’s capital stock by the Company or the holders thereof as a result of which the holders of
the Company’s outstanding capital stock possessing the voting power (under ordinary circumstances) to elect a majority of the members of the Board immediately prior to such sale or issuance cease to own the Company’s outstanding capital
stock possessing the voting power (under ordinary circumstances) to elect a majority of the members of the Board. 
  
 (b) “Administrator” means the Board or the Committee responsible for conducting the general administration of the Plan,
as applicable, in accordance with Section 4 hereof. 
  
 (c) “Applicable Laws” means the requirements relating to the administration of stock option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on
which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options or Stock Purchase Rights are granted under the Plan. 
  
 (d) “Board” means the Board of Directors of the Company. 
  
 (e) “Code” means the Internal Revenue Code
of 1986, as amended, or any successor statute or statutes thereto. Reference to any particular Code section shall include any successor section. 
  
 (f) “Committee” means a committee appointed by the Board in accordance with Section 4 hereof. 
  
 (g) “Common Stock” means the Common Stock
of the Company, par value $0.01 per share. 
  

 (h) “Company” means Cbeyond Communications, Inc., a Delaware
corporation. 
  
 (i)
“Consultant” means any consultant or adviser if: (i) the consultant or adviser renders bona fide services to the Company or any Parent or Subsidiary of the Company; (ii) the services rendered by the consultant or adviser are not in
connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities; and (iii) the consultant or adviser is a natural person who has
contracted directly with the Company or any Parent or Subsidiary of the Company to render such services. 
  
 (j) “Director” means a member of the Board. 
  
 (k) “Employee” means any person, including an Officer or Director, who is an employee (as
defined in accordance with Section 3401 (c) of the Code) of the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is
guaranteed by statute or contract. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient, by itself, to constitute “employment” by the Company. 
  
 (l) “Exchange Act” means the Securities
Exchange Act of 1934, as amended, or any successor statute or statutes thereto. Reference to any particular Exchange Act section shall include any successor section. 
  
 (m) “Fair Market Value” means, as of any date, the value of a share of Common Stock
determined as follows: 
  
 (i) If the Common
Stock is listed on any established stock exchange or a national market system, including, without limitation, the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price
for a share of such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the
Administrator deems reliable; 
  
 (ii) If the
Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for a share of the Common Stock on the last market trading day
prior to the day of determination; or 
  
 (iii)
In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Administrator. 
  

 2 

 (n) “Holder” means a person who has been granted or awarded an Option or
Stock Purchase Right or who holds Shares acquired pursuant to the exercise of an Option or Stock Purchase Right. 
  
 (o) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and which is designated as an Incentive Stock Option by the Administrator. 
  
 (p) “Independent Director” means a Director who is not an Employee of the Company. 
  
 (q) “Non-Qualified Stock Option” means an
Option (or portion thereof) that is not designated as an Incentive Stock Option by the Administrator, or which is designated as an Incentive Stock Option by the Administrator but fails to qualify as an incentive stock option within the meaning of
Section 422 of the Code. 
  
 (r)
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (s) “Option” means a stock option granted pursuant to the Plan. 
  
 (t) “Option Agreement” means a written
agreement between the Company and a Holder evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
  
 (u) “Parent” means any corporation, whether now or hereafter existing (other than the
Company), in an unbroken chain of corporations ending with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing more than fifty percent of the total combined voting power of all classes
of stock in one of the other corporations in such chain. 
  
 (v) “Plan” means the Cbeyond Communications, Inc. 2002 Equity Incentive Plan. 
  
 (w) “Public Trading Date” means the first date upon which Common Stock of the Company is listed (or approved for listing)
upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system. 
  
 (x) “Restricted Stock” means Shares acquired pursuant to the exercise of an unvested Option
in accordance with Section 10(h) below or pursuant to a Stock Purchase Right granted under Section 12 below. 
  
 (y) “Rule 16b-3” means that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time.

  

 3 

 (z) “Securities Act” means the Securities Act of 1933, as amended, or
any successor statute or statutes thereto. Reference to any particular Securities Act section shall include any successor section. 
  
 (aa) “Service Provider” means an Employee, Director or Consultant. 
  
 (bb) “Share” means a share of Common Stock,
as adjusted in accordance with Section 13 below. 
  
 (cc) “Stock Purchase Right” means a right to purchase Common Stock pursuant to Section 14 below. 
  
 (dd) “Subsidiary” means any corporation, whether now or hereafter existing (other than the Company), in an unbroken chain
of corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing more than fifty percent of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
  
 3. Stock Subject to the
Plan. Subject to the provisions of Section 13 of the Plan, the shares of stock subject to Options or Stock Purchase Rights shall be Common Stock, initially shares of the Company’s Common Stock, par value $0.01 per share. Subject to the
provisions of Section 13 of the Plan, the maximum aggregate number of Shares which may be issued upon exercise of such Options or Stock Purchase Rights is 14,000,000 Shares. Shares issued upon exercise of Options or Stock Purchase Rights may be
authorized but unissued, or reacquired Common Stock. If an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated). Shares which are delivered by the Holder or withheld by the Company upon the exercise of an Option or Stock Purchase Right under the Plan, in payment of the exercise price thereof or tax
withholding thereon, may again be optioned, granted or awarded hereunder, subject to the limitations of this Section 3. If Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available
for future grant under the Plan (unless the Plan has terminated). Notwithstanding the provisions of this Section 3, no Shares may again be optioned, granted or awarded if such action would cause an Incentive Stock Option to fail to qualify as an
Incentive Stock Option under Section 422 of the Code. 
  
 4.
Administration of the Plan. 
  
 (a)
Administrator. Unless and until the Board delegates administration to a Committee as set forth below, the Plan shall be administered by the Board. The Board may delegate administration of the Plan to a Committee or Committees of one or more
members of the Board, and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the Committee shall have, in connection with the administration
of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to
the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with 

  

 4 

 
the provisions of the Plan, as may be adopted from time to time by the Board. Notwithstanding the foregoing, however, from and after the Public Trading Date,
a Committee of the Board shall administer the Plan and the Committee shall consist solely of two or more Independent Directors each of whom is an “outside director,” within the meaning of Section 162(m) of the Code, a “non-employee
director” within the meaning of Rule 16b-3 and an “independent” director within the meaning of Nasdaq’s Marketplace Rule 4200 and Section 303.01(B) of the NYSE rules. Within the scope of such authority, the Board or the Committee
may (i) delegate to a committee of one or more members of the Board who are not Independent Directors the authority to grant awards under the Plan to eligible persons who are either (1) not then “covered employees,” within the meaning of
Section 162(m) of the Code and are not expected to be “covered employees” at the time of recognition of income resulting from such award or (2) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code
and/or (ii) delegate to a committee of one or more members of the Board who are not “non-employee directors,” within the meaning of Rule 16b-3, the authority to grant awards under the Plan to eligible persons who are not then subject to
Section 16 of the Exchange Act. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. Appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign
at any time by delivering written notice to the Board. Vacancies in the Committee may only be filled by the Board. 
  
 (b) Powers of the Administrator. Subject to the provisions of the Plan and the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the Administrator shall have the authority in its sole discretion: 
  
 (i) to determine the Fair Market Value; 
  
 (ii) to select the Service Providers to whom Options and Stock Purchase Rights may from time to time be granted hereunder; 
  
 (iii) to determine the number of Shares to be covered by
each such award granted hereunder; 
  
 (iv) to
approve forms of agreement for use under the Plan; 
  
 (v) to determine the terms and conditions of any Option or Stock Purchase Right granted hereunder (such terms and conditions include, but are not limited to, the exercise price, the time or times when Options or Stock Purchase Rights may
vest or be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or Stock Purchase Right or the Common Stock relating thereto,
based in each case on such factors as the Administrator, in its sole discretion, shall determine); 
  
 (vi) to determine whether to offer to buyout a previously granted Option as provided in subsection 10(i) and to determine the terms and
conditions of such offer and buyout (including whether payment is to be made in cash or Shares); 
  

 5 

 (vii) to prescribe, amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
  
 (viii) to allow Holders to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon
exercise of an Option or Stock Purchase Right that number of Shares having a Fair Market Value equal to the minimum amount required to be withheld based on the statutory withholding rates for federal and state tax purposes that apply to supplemental
taxable income. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by Holders to have Shares withheld for this purpose shall be made in such
form and under such conditions as the Administrator may deem necessary or advisable; 
  
 (ix) to amend the Plan or any Option or Stock Purchase Right granted under the Plan as provided in Section 15; and 
  
 (x) to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan and to exercise such powers and perform such acts as the Administrator deems necessary or desirable to promote the best interests of the Company which are not in conflict with the provisions of the Plan.

  
 (c) Effect of Administrator’s
Decision. All decisions, determinations and interpretations of the Administrator shall be final and binding on all Holders. 
  
 5. Eligibility. Non-Qualified Stock Options and Stock Purchase Rights may be granted to Service Providers. Incentive Stock Options may be granted
only to Employees. If otherwise eligible, an Employee or Consultant who has been granted an Option or Stock Purchase Right may be granted additional Options or Stock Purchase Rights. 
  
 6. Limitations. 
  
 (a) Each Option shall be designated by the Administrator in the Option Agreement as either an Incentive Stock Option or a Non-Qualified
Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares subject to a Holder’s Incentive Stock Options and other incentive stock options granted by the Company, any Parent or
Subsidiary, which become exercisable for the first time during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options or other options shall be treated as Non-Qualified Stock Options.

  
 For purposes of this Section 6(a), Incentive
Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the time of grant. 
  
 (b) Neither the Plan, any Option nor any Stock Purchase Right shall confer upon a Holder any right with
respect to continuing the Holder’s employment or consulting relationship with the Company, nor shall they interfere in any way with the Holder’s right or the Company’s right to terminate such employment or consulting relationship at
any time, with or without cause. 
  

 6 

 (c) No Service Provider shall be granted, in any calendar year, Options or Stock Purchase
Rights to purchase more than 10,000,000 Shares; provided, however, that the foregoing limitation shall not apply prior to the Public Trading Date and, following the Public Trading Date, the foregoing limitation shall not apply until the
earliest of: (i) the first material modification of the Plan (including any increase in the number of shares reserved for issuance under the Plan in accordance with Section 3); (ii) the issuance of all of the shares of Common Stock reserved for
issuance under the Plan; (iii) the expiration of the Plan; (iv) the first meeting of stockholders at which Directors of the Company are to be elected that occurs after the close of the third calendar year following the calendar year in which
occurred the first registration of an equity security of the Company under Section 12 of the Exchange Act; or (v) such other date required by Section 162(m) of the Code and the rules and regulations promulgated thereunder. The foregoing limitation
shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 13. For purposes of this Section 6(c), if an Option is canceled in the same calendar year it was granted (other than in
connection with a transaction described in Section 13), the canceled Option will be counted against the limit set forth in this Section 6(c). For this purpose, if the exercise price of an Option is reduced, the transaction shall be treated as a
cancellation of the Option and the grant of a new Option. 
  
 7.
Term of Plan. The Plan shall become effective upon its initial adoption by the Board and shall continue in effect until it is terminated under Section 15 of the Plan. No Options or Stock Purchase Rights may be issued under the Plan after the
tenth (10th) anniversary of the earlier of (i) the date upon which the Plan is adopted by the Board or (ii) the date the Plan is approved by the stockholders. 
  

8. Term of Option. The term of each Option shall be stated in the Option Agreement; provided, however, that the term shall be no more
than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to a Holder who, at the time the Option is granted, owns (or is treated as owning under Code Section 424) stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement. 
  
 9. Option Exercise Price and Consideration. 
  
 (a) The per share exercise price for the Shares to be issued
upon exercise of an Option shall be such price as is determined by the Administrator, but shall be subject to the following: 
  
 (i) In the case of an Incentive Stock Option 
  
 (A) granted to an Employee who, at the time of grant of such Option, owns (or is treated as owning under Code Section 424) stock
representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than one hundred ten percent (110%) of the Fair Market Value per Share on
the date of grant. 
  

 7 

 (B) granted to any other Employee, the per Share exercise price shall be no less than
one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
  
 (ii) In the case of a Non-Qualified Stock Option 
  

(A) granted to a Service Provider who, at the time of grant of such Option, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary, the exercise price shall be no less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of the grant. 
  
 (B) granted to any other Service Provider, the per Share
exercise price shall be no less than eighty-five percent (85%) of the Fair Market Value per Share on the date of grant. 
  
 (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a
merger or other corporate transaction. 
  
 (b)
The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant).
Such consideration may consist of (1) cash, (2) check, (3) with the consent of the Administrator, a full recourse promissory note bearing interest (at no less than such rate as shall then preclude the imputation of interest under the Code) and
payable upon such terms as may be prescribed by the Administrator, (4) with the consent of the Administrator, other Shares which (x) in the case of Shares acquired from the Company, have been owned by the Holder for more than six (6) months on the
date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised, (5) with the consent of the Administrator, surrendered Shares then issuable
upon exercise of the Option having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the Option or exercised portion thereof, (6) with the consent of the Administrator, delivery of a notice that the Holder has
placed a market sell order with a broker with respect to Shares then issuable upon exercise of the Options and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option
exercise price, provided, that payment of such proceeds is then made to the Company upon settlement of such sale, or (7) with the consent of the Administrator, any combination of the foregoing methods of payment. Notwithstanding anything to
the contrary in the foregoing sentence, no form of consideration shall be authorized for the exercise of Options which would violate Section 402 of the Sarbanes-Oxley Act of 2002 at such time as that Act applies to the Company. 
  
 10. Exercise of Option. 
  
 (a) Vesting; Fractional Exercises. Options granted
hereunder shall be vested and exercisable according to the terms hereof at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement; provided, however, that, except with regard to Options
granted to Officers, Directors or Consultants, in no event shall an 

  

 8 

 
Option granted hereunder become vested and exercisable at a rate of less than twenty percent (20%) per year over five (5) years from the date the Option is
granted, subject to reasonable conditions, such as continuing to be a Service Provider. An Option may not be exercised for a fraction of a Share. 
  
 (b) Deliveries upon Exercise. All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the
following to the Secretary of the Company or his or her office: 
  
 (i) A written or electronic notice complying with the applicable rules established by the Administrator stating that the Option, or a portion thereof, is exercised. The notice shall be signed by the Holder or other
person then entitled to exercise the Option or such portion of the Option; 
  
 (ii) Such representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance with Applicable Laws. The Administrator may, in its sole discretion, also take
whatever additional actions it deems appropriate to effect such compliance, including, without limitation, placing legends on share certificates and issuing stop transfer notices to agents and registrars; 
  
 (iii) Upon the exercise of all or a portion of an unvested
Option pursuant to Section 10(h), a Restricted Stock purchase agreement in a form determined by the Administrator and signed by the Holder or other person then entitled to exercise the Option or such portion of the Option; and 
  
 (iv) In the event that the Option shall be exercised
pursuant to Section 10(f) by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Option. 
  
 (c) Conditions to Delivery of Share Certificates. The Company shall not be required to issue or deliver any certificate or
certificates for Shares purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions: 
  
 (i) The admission of such Shares to listing on all stock exchanges on which such class of stock is then listed; 
  
 (ii) The completion of any registration or other
qualification of such Shares under any state or federal law, or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body which the Administrator shall, in its sole discretion, deem
necessary or advisable; 
  
 (iii) The obtaining
of any approval or other clearance from any state or federal governmental agency which the Administrator shall, in its sole discretion, determine to be necessary or advisable; 
  
 (iv) The lapse of such reasonable period of time following the exercise of the Option as the Administrator
may establish from time to time for reasons of administrative convenience; and 
  

 9 

 (v) The receipt by the Company of full payment for such Shares, including payment of any
applicable withholding tax, which in the sole discretion of the Administrator may be in the form of consideration used by the Holder to pay for such Shares under Section 9(b). 
  
 (d) Termination of Relationship as a Service Provider. If a Holder ceases to be a Service Provider
other than by reason of the Holder’s disability or death, such Holder may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of termination;
provided, however, that prior to the Public Trading Date, such period of time shall not be less than thirty (30) days (but in no event later than the expiration of the term of the Option as set forth in the Option Agreement). In the absence
of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Holder’s termination. If, on the date of termination, the Holder is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option immediately cease to be issuable under the Option and shall again become available for issuance under the Plan. If, after termination, the Holder does not exercise his or her Option within the time
period specified herein, the Option shall terminate, and the Shares covered by such Option shall again become available for issuance under the Plan. 
  
 (e) Disability of Holder. If a Holder ceases to be a Service Provider as a result of the Holder’s disability, the Holder may
exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of termination; provided, however, that prior to the Public Trading Date, such period of time shall
not be less than six (6) months (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve
(12) months following the Holder’s termination. If such disability is not a “disability” as such term is defined in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option such Incentive Stock Option shall automatically
cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Non-Qualified Stock Option from and after the day which is three (3) months and one (1) day following such termination. If, on the date of termination, the
Holder is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately cease to be issuable under the Option and shall again become available for issuance under the Plan. If, after
termination, the Holder does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall again become available for issuance under the Plan. 
  
 (f) Death of Holder. If a Holder dies while a Service
Provider, the Option may be exercised within such period of time as is specified in the Option Agreement; provided, however, that prior to the Public Trading Date, such period of time shall not be less than six (6) months (but in no event
later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Holder’s estate or by a person who acquires the right to exercise the Option by bequest or inheritance, but only to the extent that the Option is
vested on the date of death. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Holder’s termination. If, at the time of death, the Holder is not vested as to his
or her entire Option, the Shares covered by the unvested portion of the Option shall immediately cease to be issuable under the Option and shall again become 

  

 10 

 
available for issuance under the Plan. The Option may be exercised by the executor or administrator of the Holder’s estate or, if none, by the person(s)
entitled to exercise the Option under the Holder’s will or the laws of descent or distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall again
become available for issuance under the Plan. 
  
 (g) Regulatory Extension. A Holder’s Option Agreement may provide that if the exercise of the Option following the termination of the Holder’s status as a Service Provider (other than upon the Holder’s death or
disability) would be prohibited at any time solely because the issuance of shares would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option
set forth in Section 8 or (ii) the expiration of a period of three (3) months after the termination of the Holder’s status as a Service Provider during which the exercise of the Option would not be in violation of such registration
requirements. 
  
 (h) Early
Exercisability. The Administrator may provide in the terms of a Holder’s Option Agreement that the Holder may, at any time before the Holder’s status as a Service Provider terminates, exercise the Option in whole or in part prior to
the full vesting of the Option; provided, however, that subject to Section 20, Shares acquired upon exercise of an Option which has not fully vested may be subject to any forfeiture, transfer or other restrictions as the Administrator may
determine in its sole discretion. 
  
 (i)
Buyout Provisions. The Administrator may at any time offer to buyout for a payment in cash or Shares, an Option previously granted, based on such terms and conditions as the Administrator shall establish and communicate to the Holder at the
time that such offer is made. 
  
 11. Non-Transferability of
Options and Stock Purchase Rights. Options and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Holder, only by the Holder. 
  
 12.
Stock Purchase Rights. 
  
 (a) Rights
to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with Options granted under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase
Rights under the Plan, it shall advise the offeree in writing of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid, and the time within
which such person must accept such offer. The offer shall be accepted by execution of a Restricted Stock purchase agreement in the form determined by the Administrator. 
  
 (b) Repurchase Right. Unless the Administrator determines otherwise, the Restricted Stock purchase
agreement shall grant the Company the right to repurchase Shares acquired upon exercise of a Stock Purchase Right upon the termination of the purchaser’s status as a Service Provider for any reason. Subject to Section 18, the purchase price for
Shares 

  

 11 

 
repurchased by the Company pursuant to such repurchase right and the rate at which such repurchase right shall lapse shall be determined by the Administrator
in its sole discretion, and shall be set forth in the Restricted Stock purchase agreement. 
  
 (c) Other Provisions. The Restricted Stock purchase agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 
  
 (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised, the purchaser shall have rights equivalent to those of a
shareholder and shall be a shareholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment shall be made for a dividend or other right for which the record date is prior to the
date the Stock Purchase Right is exercised, except as provided in Section 13 of the Plan. 
  
 13. Adjustments upon Changes in Capitalization, Merger or Asset Sale. 
  
 (a) In the event that the Administrator determines that any dividend or other distribution (whether in the form of cash, Common Stock,
other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or
other disposition of all or substantially all of the assets of the Company, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other
similar corporate transaction or event, in the Administrator’s sole discretion, affects the Common Stock such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended by the Company to be made available under the Plan or with respect to any Option, Stock Purchase Right or Restricted Stock, then the Administrator shall, in such manner as it may deem equitable, adjust any or all of:

  
 (i) the number and kind of shares of Common
Stock (or other securities or property) with respect to which Options or Stock Purchase Rights may be granted or awarded (including, but not limited to, adjustments of the limitations in Section 3 on the maximum number and kind of shares which may
be issued and adjustments of the maximum number of Shares that may be purchased by any Holder in any calendar year pursuant to Section 6(c)); 
  
 (ii) the number and kind of shares of Common Stock (or other securities or property) subject to outstanding Options, Stock Purchase Rights
or Restricted Stock; and 
  
 (iii) the grant or
exercise price with respect to any Option or Stock Purchase Right. 
  
 (b) In the event of any transaction or event described in Section 13(a), the Administrator, in its sole discretion, and on such terms and conditions as it deems appropriate, either by the terms of the Option, Stock
Purchase Right or Restricted Stock or by action taken prior to the occurrence of such transaction or event and either automatically or upon the Holder’s 

  

 12 

 
request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order
to prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Option, Stock Purchase Right or Restricted Stock granted or issued under the Plan or to
facilitate such transaction or event: 
  
 (i) To
provide for either the purchase of any such Option, Stock Purchase Right or Restricted Stock for an amount of cash equal to the amount that could have been obtained upon the exercise of such Option or Stock Purchase Right or realization of the
Holder’s rights had such Option, Stock Purchase Right or Restricted Stock been currently exercisable or payable or fully vested or the replacement of such Option, Stock Purchase Right or Restricted Stock with other rights or property selected
by the Administrator in its sole discretion; 
  
 (ii) To provide that such Option or Stock Purchase Right shall be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions of such Option or Stock Purchase Right; 
  
 (iii) To provide that such Option, Stock Purchase Right or
Restricted Stock be assumed by the successor or survivor corporation or entity, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation or
entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices; 
  
 (iv) To make adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Options
and Stock Purchase Rights, and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Options, Stock Purchase Rights or Restricted Stock or Options, Stock Purchase Rights or Restricted
Stock which may be granted in the future; and 
  
 (v) To provide that immediately upon the consummation of such event, such Option or Stock Purchase Right shall not be exercisable and shall terminate; provided, that for a specified period of time prior to such event, such Option or
Stock Purchase Right shall be exercisable as to all Shares covered thereby, and the restrictions imposed under an Option Agreement or Restricted Stock purchase agreement upon some or all Shares may be terminated and, in the case of Restricted Stock,
some or all shares of such Restricted Stock may cease to be subject to repurchase, notwithstanding anything to the contrary in the Plan or the provisions of such Option, Stock Purchase Right or Restricted Stock purchase agreement. 
  
 (c) Subject to Section 3, the Administrator may, in its sole
discretion, include such further provisions and limitations in any Option, Stock Purchase Right, Restricted Stock agreement or certificate, as it may deem equitable and in the best interests of the Company. 
  
 (d) If the Company undergoes an Acquisition, then any
surviving corporation or entity or acquiring corporation or entity, or affiliate of such corporation or entity, may assume any Options, Stock Purchase Rights or Restricted Stock outstanding under the Plan or may substitute similar stock awards
(including an award to acquire the same consideration paid to the 

  

 13 

 
stockholders in the transaction described in this subsection 13(d)) for those outstanding under the Plan. In the event any surviving corporation or entity or
acquiring corporation or entity in an Acquisition, or affiliate of such corporation or entity, does not assume such Options, Stock Purchase Rights or Restricted Stock or does not substitute similar stock awards for those outstanding under the Plan,
then with respect to (i) Options, Stock Purchase Rights or Restricted Stock held by participants in the Plan whose status as a Service Provider has not terminated prior to such event, the vesting of such Options, Stock Purchase Rights or Restricted
Stock (and, if applicable, the time during which such awards may be exercised) shall be accelerated and made fully exercisable and all restrictions thereon shall lapse at least ten (10) days prior to the closing of the Acquisition (and the Options
or Stock Purchase Rights terminated if not exercised prior to the closing of such Acquisition), and (ii) any other Options or Stock Purchase Rights outstanding under the Plan, such Options or Stock Purchase rights shall be terminated if not
exercised prior to the closing of the Acquisition. 
  
 (e) The existence of the Plan, any Option Agreement or Restricted Stock purchase agreement and the Options or Stock Purchase Rights granted hereunder shall not affect or restrict in any way the right or power of the Company or the
stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options,
warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 
  
 14. Time of Granting Options and Stock Purchase Rights. The date of
grant of an Option or Stock Purchase Right shall, for all purposes, be the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other date as is determined by the Administrator. Notice of the
determination shall be given to each Employee or Consultant to whom an Option or Stock Purchase Right is so granted within a reasonable time after the date of such grant. 
  
 15. Amendment and Termination of the Plan. 
  
 (a) Amendment and Termination. The Board may at any time wholly or partially amend, alter, suspend or
terminate the Plan. However, without approval of the Company’s stockholders given within twelve (12) months before or after the action by the Board, no action of the Board may, except as provided in Section 13, increase the limits imposed in
Section 3 on the maximum number of Shares which may be issued under the Plan or extend the term of the Plan under Section 7. 
  
 (b) Stockholder Approval. The Board shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable
to comply with Applicable Laws. 
  
 (c) Effect
of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Holder, unless mutually agreed otherwise between the Holder and the Administrator, which agreement must be in writing

  

 14 

 
and signed by the Holder and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it
hereunder with respect to Options, Stock Purchase Rights or Restricted Stock granted or awarded under the Plan prior to the date of such termination. 
  
 16. Stockholder Approval. The Plan will be submitted for the approval of the Company’s stockholders within twelve (12) months after the date
of the Board’s initial adoption of the Plan. Options, Stock Purchase Rights or Restricted Stock may be granted or awarded prior to such stockholder approval, provided that such Options, Stock Purchase Rights and Restricted Stock shall not be
exercisable, shall not vest and the restrictions thereon shall not lapse prior to the time when the Plan is approved by the stockholders, and provided further that if such approval has not been obtained at the end of said twelve-month period, all
Options, Stock Purchase Rights and Restricted Stock previously granted or awarded under the Plan shall thereupon be canceled and become null and void. 
  
 17. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained. 
  
 18. Reservation of
Shares. The Company, during the term of this Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 19. Information to Holders and Purchasers. Prior to the Public Trading Date, the Company shall provide to each Holder
and to each individual who acquires Shares pursuant to the Plan, not less frequently than annually during the period such Holder or purchaser has one or more Options or Stock Purchase Rights outstanding, and, in the case of an individual who
acquires Shares pursuant to the Plan, during the period such individual owns such Shares, copies of annual financial statements. Notwithstanding the preceding sentence, the Company shall not be required to provide such statements to key employees
whose duties in connection with the Company assure their access to equivalent information. 
  
 20. Repurchase Provisions. The Administrator in its sole discretion may provide that the Company may repurchase Shares acquired upon exercise of an Option or Stock Purchase Right upon the occurrence of certain
specified events, including, without limitation, a Holder’s termination as a Service Provider, divorce, bankruptcy or insolvency; provided, however, that any such repurchase right shall be set forth in the applicable Option Agreement or
Restricted Stock purchase agreement or in another agreement referred to in such agreement and any such repurchase right set forth in an Option or Stock Purchase Right granted prior to the Public Trading Date to a person who is not an Officer,
Director or Consultant shall be upon the following terms: (i) if the repurchase option gives the Company the right to repurchase the shares upon termination as a Service Provider at not less than the Fair Market Value of the shares to be purchased
on the date of termination of status as a Service Provider, then (A) the right to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares within ninety (90) days of termination of status as a Service
Provider (or in the case of 

  

 15 

 
shares issued upon exercise of Options or Stock Purchase Rights after such date of termination, within ninety (90) days after the date of the exercise) or
such longer period as may be agreed to by the Administrator and the Plan participant and (B) the right terminates when the shares become publicly traded; and (ii) if the repurchase option gives the Company the right to repurchase the Shares upon
termination as a Service Provider at the original purchase price for such Shares, then (A) the right to repurchase at the original purchase price shall lapse at the rate of at least twenty percent (20%) of the shares per year over five (5) years
from the date the Option or Stock Purchase Right is granted (without respect to the date the Option or Stock Purchase Right was exercised or became exercisable) and (B) the right to repurchase shall be exercised for cash or cancellation of purchase
money indebtedness for the shares within ninety (90) days of termination of status as a Service Provider (or, in the case of shares issued upon exercise of Options or Stock Purchase Rights, after such date of termination, within ninety (90) days
after the date of the exercise) or such longer period as may be agreed to by the Company and the Plan participant. 
  
 21. Investment Intent. The Company may require a Plan participant, as a condition of exercising or acquiring stock under any Option or Stock
Purchase Right, (i) to give written assurances satisfactory to the Company as to the participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who
is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Option or Stock Purchase Right; and (ii) to
give written assurances satisfactory to the Company stating that the participant is acquiring the stock subject to the Option or Stock Purchase Right for the participant’s own account and not with any present intention of selling or otherwise
distributing the stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (A) the issuance of the shares upon the exercise or acquisition of stock under the applicable Option or Stock
Purchase Right has been registered under a then currently effective registration statement under the Securities Act or (B) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in
the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with
applicable securities laws, including, but not limited to, legends restricting the transfer of the stock. 
  
 22. Governing Law. The validity and enforceability of this Plan shall be governed by and construed in accordance with the laws of the State of
Delaware without regard to otherwise governing principles of conflicts of law. 
  
 23. Applicability of Stockholders Agreement. Upon receipt of any Option or Stock Purchase Right, each participant under this Plan shall, automatically and without further action on his or her part, (i) be
deemed to be a party to, a signatory of and bound by the “Amended and Restated Shareholders Agreement” (formerly Unitholders Agreement), dated October     , 2002, between the Company and the equity holders listed
therein (the “Stockholders Agreement”) and (ii) be deemed to be a “Shareholder” for all purposes under the Stockholders Agreement. All Options and Stock Purchase Rights granted pursuant to the Plan and Common Stock issued
pursuant to the exercise of Options or Stock Purchase Rights under the Plan shall be deemed “Common Securities” and “Common Stock,” respectively, under the Stockholders Agreement. 
  

 16

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