Document:

Option
No.: _______

     

    THE
KEYW HOLDING CORPORATION

    2009
STOCK INCENTIVE PLAN

     

    INCENTIVE
STOCK OPTION AGREEMENT

     

    The KEYW
Holding Corporation, a Maryland corporation (the “Company”), hereby grants an
option to purchase shares of its common stock (the “Stock”) to the optionee
named below.  The terms and conditions of the option are set forth in
this cover sheet, in the attachment and in the Company’s 2009 Stock Incentive
Plan (the “Plan”).

     

    Date of
Award:  __________________

     

    Name of
Optionee:                                  

     

    Optionee’s
Identification Number:                                   

     

    Number of
Shares Covered by Option:  ______________

     

    Exercise
Price per Share:  $_____.___

     

    Vesting
Commencement Date: _________________

     

    Expiration
Date:                                                     

     

    Vesting
Schedule:

     

    By
signing this cover sheet, you agree to all of the terms and conditions described
in the attached Agreement and in the Plan, a copy of which is also
attached.  You acknowledge that you have carefully reviewed the Plan,
and agree that the Plan will control in the event any provision of this
Agreement should appear to be inconsistent.

     

    
      
        
          
            
              
                
                  
                    	
                            Optionee:

                          	 
      
	 
      	
                            (Signature)

                          
	 	 
	
                            Company: 

                          	 
      
	 
      	
                            (Signature)

                          
	 	 
	 
      	
                            Title: 

                          	 
      

                  

                

              

            

          

        

      

    

     

    Attachment

     

    This
is not a stock certificate or a negotiable instrument

 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THE
KEYW HOLDING CORPORATION

    2009
STOCK INCENTIVE PLAN

     

    INCENTIVE
STOCK OPTION AGREEMENT

     

    
      
        
          
            
              	
                      Incentive
      Stock Option

                    	
                      This
      option is intended to be an incentive stock option under Section 422 of
      the Internal Revenue Code and will be interpreted
      accordingly.  If you cease to be an employee of the Company, its
      parent or a subsidiary ("Employee") but continue to provide Service, this
      option will be deemed a nonstatutory stock option three months after you
      cease to be an Employee.  In addition, to the extent that all or
      part of this option exceeds the $100,000 rule of section 422(d) of the
      Internal Revenue Code, this option or the lesser excess part will be
      deemed to be a nonstatutory stock option.

                    
	 	 
	
                      Vesting

                    	
                      This
      option is only exercisable before it expires and then only with respect to
      the vested portion of the option.  Subject to the preceding
      sentence, you may exercise this option, in whole or in part, to purchase a
      whole number of vested shares (not less than 100 shares unless the number
      of shares purchased is the total number available for purchase under the
      option), by following the procedures set forth in the Plan and below in
      this Agreement.

                      
Your
      right to purchase shares of Stock under this option vests as to
      equal                            
      installments of the total number of shares covered by this option, as
      shown on the cover sheet under vesting schedule provided you then continue
      in Service.
 

                      Except
      as provided below, no additional shares of Stock will vest after your
      Service has terminated for any reason.

                    
	 	 
	
                      Term

                    	
                      Your
      option will expire in any event at the close of business at Company
      headquarters on the day before the 10th anniversary of the Grant Date, as
      shown on the cover sheet.  Your option will expire earlier (but
      never later) if your Service terminates, as described
      below.  [NOTE:
      If Grantee is a 10% stockholder, the term can’t be longer than 5
      years.]

                    
	 	 
	
                      Regular
      Termination

                    	
                      If
      your Service terminates for any reason, other than death, Disability or
      Cause, then your option will expire at the close of business at Company
      headquarters on                                      .

                    
	 	 
	
                      Termination
      for

                      Cause

                    	
                      If
      your Service is terminated for Cause, then you shall immediately forfeit
      all rights to your option and the option shall immediately
      expire.

                    

            

          

        

      

    
 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	
                      Death

                    	
                      If
      your Service terminates because of your death, then your option will be
      fully vested and exercisable and will expire at the close of business at
      Company headquarters on the date six (6) months after the date of
      death.  During that six month period, your estate or heirs may
      exercise the vested portion of your option.

                    
	 	 
	
                      Disability

                    	
                      If
      your Service terminates because of your Disability, then your option will
      be fully vested and exercisable and will expire at the close of business
      at Company headquarters on the date six (6) months after your termination
      date.

                    
	 	 
	
                      Leave
      of Absence

                    	
                      For
      purposes of this option, your Service does not terminate when you go on a
      bona fide
      employee leave of absence that was approved by the Company in writing, if
      the terms of the leave provide for continued Service crediting, or when
      continued Service crediting is required by applicable
      law.  However, your Service will be treated as terminating 90
      days after you went on employee leave, unless your right to return to
      active work is guaranteed by law or by a contract.  Your Service
      terminates in any event when the approved leave ends unless you
      immediately return to active employee work.
 

                      The
      Company determines, in its sole discretion, which leaves count for this
      purpose, and when your Service terminates for all purposes under the
      Plan.

                    
	 	 
	
                      Notice
      of Exercise

                    	
                      When
      you wish to exercise this option, you must notify the Company by filing
      the proper “Notice of Exercise” form at the address given on the
      form.  Your notice must specify how many shares you wish to
      purchase (in a parcel of at least 100 shares generally).  Your
      notice must also specify how your shares of Stock should be registered (in
      your name only or in your and your spouse’s names as joint tenants with
      right of survivorship).  The notice will be effective when it is
      received by the Company.
 

                      If
      someone else wants to exercise this option after your death, that person
      must prove to the Company’s satisfaction that he or she is entitled to do
      so.

                    
	 	 
	
                      Form
      of Payment

                    	
                      When
      you submit your notice of exercise, you must include payment of the option
      price for the shares you are purchasing.  Payment may be made in
      one (or a combination) of the following forms:
 

                      ·            Cash,
      your personal check, a cashier’s check, a money order or another cash
      equivalent acceptable to the Company.
 

                      ·            Shares
      of Stock withheld by the Company from the shares of Stock otherwise to be
      received, with such withheld shares having an aggregate Fair Market Value
      on the date of exercise equal to the aggregate option
    price.

                    

            

          

        

      

    
 

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	 
      	
                        ·            Shares
      of Stock which have already been owned by you and which are surrendered to
      the Company. The Fair Market Value of the shares, determined as of the
      effective date of the option exercise, will be applied to the option
      price.
 

                        ·            To
      the extent a public market for the Stock exists as determined by the
      Company, by delivery (on a form prescribed by the Company) of an
      irrevocable direction to a licensed securities broker acceptable to the
      Company to sell shares of Stock and to deliver all or part of the sale
      proceeds to the Company in payment of the aggregate option
      price.

                      
	 	 
	
                        Withholding
      Taxes

                      	
                        You
      will not be allowed to exercise this option unless you make acceptable
      arrangements to pay any withholding or other taxes that may be due as a
      result of the option exercise or sale of shares of Stock acquired under
      this option.  Any of the methods described under “Form of
      Payment” will be considered acceptable arrangements for paying such
      taxes.

                      
	 	 
	
                        Transfer
      of Option

                      	
                        During
      your lifetime, only you (or, in the event of your legal incapacity or
      incompetency, your guardian or legal representative) may exercise the
      option.  You cannot transfer or assign this
      option.  For instance, you may not sell this option or use it as
      security for a loan.  If you attempt to do any of these things,
      this option will immediately become invalid.  You may, however,
      dispose of this option in your will or it may be transferred upon your
      death by the laws of descent and distribution.
 

                        Regardless
      of any marital property settlement agreement, the Company is not obligated
      to honor a notice of exercise from your spouse, nor is the Company
      obligated to recognize your spouse’s interest in your option in any other
      way.

                      
	 	 
	
                        Market
      Stand-off 

                        Agreement

                      	
                        In
      connection with any underwritten public offering by the Company of its
      equity securities pursuant to an effective registration statement filed
      under the Securities Act, including the Company’s initial public offering,
      you agree not to sell, make any short sale of, loan, hypothecate, pledge,
      grant any option for the purchase of, or otherwise dispose or transfer for
      value or agree to engage in any of the foregoing transactions with respect
      to any shares of Stock without the prior written consent of the Company or
      its underwriters, for such period of time after the effective date of such
      registration statement as may be requested by the Company or the
      underwriters (not to exceed 180 days in
length).

                      

              

            

          

        

      

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      
        	
                Investment
      

                Representation

              	
                If
      the sale of Stock under the Plan is not registered under the Securities
      Act, but an exemption is available which requires an investment or other
      representation, you shall represent and agree at the time of exercise that
      the Stock being acquired upon exercise of this option is being acquired
      for investment, and not with a view to the sale or distribution thereof,
      and shall make such other representations as are deemed necessary or
      appropriate by the Company and its counsel.

              
	 	 
	
                The
      Company's Right of 

                First
      Refusal

              	
                In
      the event that you propose to sell, pledge or otherwise transfer to a
      third party any Stock acquired under this Agreement, or any interest in
      such Stock, the Company shall have the “Right of First Refusal” with
      respect to all (and not less than all) of such shares of
      Stock.  If you desire to transfer Stock acquired under this
      Agreement, you must give a written “Transfer Notice” to the Company
      describing fully the proposed transfer, including the number of shares
      proposed to be transferred, the proposed transfer price and the name and
      address of the proposed transferee.
 

                The
      Transfer Notice shall be signed both by you and by the proposed new
      transferee and must constitute a binding commitment of both parties to the
      transfer of the shares.  The Company shall have the right to
      purchase all, and not less than all, of the shares of Stock on the terms
      of the proposal described in the Transfer Notice (subject, however, to any
      change in such terms permitted in the next paragraph) by delivery of a
      notice of exercise of the Right of First Refusal within thirty (30) days
      after the date when the Transfer Notice was received by the
      Company.
 

                If
      the Company fails to exercise its Right of First Refusal within thirty
      (30) days after the date when it received the Transfer Notice, you may,
      not later than ninety (90) days following receipt of the Transfer Notice
      by the Company, conclude a transfer of the Stock subject to the Transfer
      Notice on the terms and conditions described in the Transfer
      Notice.  Any proposed transfer on terms and conditions different
      from those described in the Transfer Notice, as well as any subsequent
      proposed transfer by you, shall again be subject to the Right of First
      Refusal and shall require compliance with the procedure described in the
      paragraph above.  If the Company exercises its Right of First
      Refusal, the parties shall consummate the sale of the Stock on the terms
      set forth in the Transfer Notice within 60 days after the date when the
      Company received the Transfer Notice (or within such longer period as may
      have been specified in the Transfer Notice); provided, however, that in
      the event the Transfer Notice provided that payment for the Stock was to
      be made in a form other than lawful money paid at the time of transfer,
      the Company shall have the option of paying for the Stock with lawful
      money equal to the present value of the consideration described in the
      Transfer Notice.

              

      

    
 

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      
        	 
      	
                In
      the case of any purchase of Stock under this Right of First Refusal, at
      the option of the Company, the Company may pay you the purchase price in
      three or fewer annual installments.  Interest shall be credited
      on the installments at the applicable federal rate (as determined for
      purposes of Section 1274 of the Code) in effect on the date on which
      the purchase is made.  The Company shall pay at least one-third
      of the total purchase price each year, plus interest on the unpaid
      balance, with the first payment being made on or before the 60th
      day after the purchase.
 

                The
      Company’s rights under this subsection shall be freely assignable, in
      whole or in part, shall inure to the benefit of its successors and assigns
      and shall be binding upon any transferee of the shares of
      Stock.
 

                The
      Company’s Right of First Refusal shall terminate in the event that the
      Stock is listed on an established national or regional stock exchange, is
      admitted for quotation on The Nasdaq Stock Market, Inc., or is publicly
      traded in an established securities market.

              
	 	 
	
                Right
      to Repurchase

              	
                Following
      termination of your Service for any reason, the Company shall have the
      right to purchase all of those shares of Stock that you have or will
      acquire under this option.  If the Company exercises its right
      to purchase the shares, the Company will notify you of its intention to
      purchase such shares, and will consummate the purchase within one year (or
      90 days to the extent required by applicable law) of your termination of
      Service or, in the case of Stock acquired after your termination of
      Service, within one year (or 90 days to the extent required by applicable
      law) of the date of exercise.
 

                The
      purchase price shall be the Fair Market Value of the shares on the date of
      your termination of Service if the Company exercises its right to purchase
      such shares within 90 days of your termination of Service or exercises its
      right within 90 days of the date of your exercise of the option following
      termination of Service; otherwise the purchase price shall be the Fair
      Market Value of the shares on the date the Company gives you notice of its
      intent to exercise its right to purchase the
shares.
 

                The
      Company's rights of repurchase shall terminate in the event that the Stock
      is listed on an established national or regional stock exchange, is
      admitted for quotation on The Nasdaq Stock Market, Inc., or is publicly
      traded in an established securities
market.

              

      

    
 

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	
                      Retention
      Rights

                    	
                      Neither
      your option nor this Agreement give you the right to be retained by the
      Company (or any Parent, Subsidiaries or Affiliates) in any
      capacity.  The Company (and any Parent, Subsidiaries or
      Affiliates) reserve the right to terminate your Service at any time and
      for any reason.

                    
	 	 
	
                      Shareholder
      Rights

                    	
                      You,
      or your estate or heirs, have no rights as a shareholder of the Company
      until a certificate for your option’s shares has been issued (or an
      appropriate book entry has been made).  No adjustments are made
      for dividends or other rights if the applicable record date occurs before
      your stock certificate is issued (or an appropriate book entry has been
      made), except as described in the Plan.

                    
	 	 
	
                      Adjustments

                    	
                      In
      the event of a stock split, a stock dividend or a similar change in the
      Stock, the number of shares covered by this option and the option price
      per share shall be adjusted (and rounded down to the nearest whole number)
      if required pursuant to the Plan.  Your option shall be subject
      to the terms of the agreement of merger, liquidation or reorganization in
      the event the Company is subject to such corporate
    activity.

                    
	 	 
	
                      Legends

                    	
                      All
      certificates representing the Stock issued upon exercise of this option
      shall, where applicable, have endorsed thereon the following
      legends:
 

                      “THE
      SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS
      ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT
      BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR
      IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE
      OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY
      OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS
      CERTIFICATE.”

                    
	 	 
	 
      	
                      “THE
      SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY SECURITIES LAWS OF ANY STATE OR
      OTHER JURISDICTION, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
      WITHOUT AN EFFECTIVE REGISTRATION OR QUALIFICATION THEREOF UNDER SUCH ACT
      AND SUCH APPLICABLE STATE OR OTHER JURISDICTION'S SECURITIES LAWS OR AN
      OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
      REGISTRATION AND QUALIFICATION IS NOT
REQUIRED.”

                    

            

          

        

      

    
 

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    Applicable
      Law

                  	
                    This
      Agreement will be interpreted and enforced under the laws of the State of
      Maryland, other than any conflicts or choice of law rule or principle that
      might otherwise refer construction or interpretation of this Agreement to
      the substantive law of another jurisdiction.

                  
	 	 
	
                    The
      Plan

                     

                  	
                    The
      text of the Plan is incorporated in this Agreement by
      reference.  Certain capitalized terms used in this Agreement are
      defined in the Plan, and have the meaning set forth in the
      Plan.
 

                    This
      Agreement and the Plan constitute the entire understanding between you and
      the Company regarding this option.  Any prior agreements,
      commitments or negotiations concerning this option are
      superseded.

                  
	 	 
	
                    Data
      Privacy

                  	
                    In
      order to administer the Plan, the Company may process personal data about
      you.  Such data includes but is not limited to the information
      provided in this Agreement and any changes thereto, other appropriate
      personal and financial data about you such as home address and business
      addresses and other contact information, payroll information and any other
      information that might be deemed appropriate by the Company to facilitate
      the administration of the Plan.
 

                    By
      accepting this grant, you give explicit consent to the Company to process
      any such personal data.  You also give explicit consent to the
      Company to transfer any such personal data outside the country in which
      you work or are employed, including, with respect to non-U.S. resident
      Grantees, to the United States, to transferees who shall include the
      Company and other persons who are designated by the Company to administer
      the Plan.

                  
	 	 
	
                    Consent
      to Electronic 

                    Delivery

                  	
                    The
      Company may choose to deliver certain statutory materials relating to the
      Plan in electronic form.  By accepting this grant you agree that
      the Company may deliver the Plan prospectus and the Company’s annual
      report (to the extent required) to you in an electronic
      format.  If at any time you would prefer to receive paper copies
      of these documents, as you are entitled to, the Company would be pleased
      to provide copies.  Please contact Kim DeChello to request paper
      copies of these
documents.

                  

          

        

      

    
 

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
              Certain
      Dispositions

            	
              If
      you sell or otherwise dispose of Stock acquired pursuant to the exercise
      of this option following termination of the Company's Right of First
      Refusal and sooner than the one year anniversary of the date you acquired
      the Stock, then you agree to notify the Company in writing of the date of
      sale or disposition, the number of share of Stock sold or disposed of and
      the sale price per share within 30 days of such sale or
      disposition.

            

    

     

    By
signing the cover sheet of this Agreement, you agree to all of the terms and
conditions described above and in the Plan.
 

    
      
         

      

      
        9Option
No.: _______

     

    THE
KEYW HOLDING CORPORATION

    2009
STOCK INCENTIVE PLAN

     

    NON-QUALIFIED
STOCK OPTION AGREEMENT

     

    The KEYW
Holding Corporation, a Maryland corporation (the “Company”), hereby grants an
option to purchase shares of its common stock (the “Stock”) to the optionee
named below.  The terms and conditions of the option are set forth in
this cover sheet, in the attachment and in the Company’s 2009 Stock Incentive
Plan (the “Plan”).

     

    Date of
Award:  __________________

     

    Name of
Optionee:  ___________________________________________

     

    Optionee’s
Identification Number:  __________________

     

    Number of
Shares Covered by Option:  ______________

     

    Exercise
Price per Share:  $_____.___

     

    Vesting
Commencement Date:  See Schedule

     

    Expiration
Date:

     

    Vesting
Schedule:

     

    By
signing this cover sheet, you agree to all of the terms and conditions described
in the attached Agreement and in the Plan, a copy of which is also
attached.  You acknowledge that you have carefully reviewed the Plan,
and agree that the Plan will control in the event any provision of this
Agreement should appear to be inconsistent.

     

    
      
        
          
            
              	
                      Optionee:

                    	 
      
	 
      	
                      (Signature)

                    
	 
      	 
      
	
                      Company: 

                    	 
      
	 
      	
                      (Signature)

                    
	 
      	 
      	 
      
	 
      	
                      Title: 

                    	 
      

            

          

        

      

    

     

    Attachment

     

    This
is not a stock certificate or a negotiable instrument

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THE
KEYW HOLDING CORPORATION

    2009
STOCK INCENTIVE PLAN

     

    NON-QUALIFIED
STOCK OPTION AGREEMENT

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Non-Qualified
      Stock Option

                            	
                              This
      option is not intended to be an incentive stock option under Section 422
      of the Internal Revenue Code and will be interpreted
      accordingly.

                            
	 	 
	
                              Vesting

                            	
                              This
      option is only exercisable before it expires and then only with respect to
      the vested portion of the option.  Subject to the preceding
      sentence, you may exercise this option, in whole or in part, to purchase a
      whole number of vested shares (not less than 100 shares unless the number
      of shares purchased is the total number available for purchase under the
      option), by following the procedures set forth in the Plan and below in
      this Agreement.
 

                              Your
      right to purchase shares of Stock under this option vests as to
      equal                 
      installments of the total number of shares covered by this option, as
      shown on the cover sheet provided you then continue in
      Service.
 

                              Except
      as provided below, no additional shares of Stock will vest after your
      Service has terminated for any reason.

                            
	 	 
	
                              Term

                            	
                              Your
      option will expire in any event at the close of business at Company
      headquarters on the day before the 10th anniversary of the Grant Date, as
      shown on the cover sheet.  Your option will expire earlier (but
      never later) if your Service terminates, as described
    below.

                            
	 	 
	
                              Regular
      Termination

                            	
                              If
      your Service terminates for any reason, other than death, Disability or
      Cause, then your option will expire at the close of business at Company
      headquarters on                                        
      .

                            
	 	 
	
                              Termination
      for

                              Cause

                            	
                              If
      your Service is terminated for Cause, then you shall immediately forfeit
      all rights to your option and the option shall immediately
      expire.

                            
	 	 
	
                              Death

                            	
                              If
      your Service terminates because of your death, then your option will be
      fully vested and exercisable and will expire at the close of business at
      Company headquarters on the date six (6) months after the date of
      death.  During that six month period, your estate or heirs may
      exercise the vested portion of your option.

                            
	 	 
	
                              Disability

                            	
                              If
      your Service terminates because of your Disability, then your option will
      be fully vested and exercisable and will expire at the close of business
      at Company headquarters on the date six (6) months after your termination
      date.

                            

                    

                  

                

              

            

          

        

      

    
 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    Leave
      of Absence

                  	
                    For
      purposes of this option, your Service does not terminate when you go on a
      bona fide
      employee leave of absence that was approved by the Company in writing, if
      the terms of the leave provide for continued Service crediting, or when
      continued Service crediting is required by applicable
      law.  However, your Service will be treated as terminating 90
      days after you went on employee leave, unless your right to return to
      active work is guaranteed by law or by a contract.  Your Service
      terminates in any event when the approved leave ends unless you
      immediately return to active employee work.
 

                    The
      Company determines, in its sole discretion, which leaves count for this
      purpose, and when your Service terminates for all purposes under the
      Plan.

                  
	 	 
	
                    Notice
      of Exercise

                  	
                    When
      you wish to exercise this option, you must notify the Company by filing
      the proper “Notice of Exercise” form at the address given on the
      form.  Your notice must specify how many shares you wish to
      purchase (in a parcel of at least 100 shares generally).  Your
      notice must also specify how your shares of Stock should be registered (in
      your name only or in your and your spouse’s names as joint tenants with
      right of survivorship).  The notice will be effective when it is
      received by the Company.
 

                    If
      someone else wants to exercise this option after your death, that person
      must prove to the Company’s satisfaction that he or she is entitled to do
      so.

                  
	 	 
	
                    Form
      of Payment

                  	
                    When
      you submit your notice of exercise, you must include payment of the option
      price for the shares you are purchasing.  Payment may be made in
      one (or a combination) of the following forms:
 

                    ·            Cash,
      your personal check, a cashier’s check, a money order or another cash
      equivalent acceptable to the Company.
 

                    ·            Shares
      of Stock withheld by the Company from the shares of Stock otherwise to be
      received, with such withheld shares having an aggregate Fair Market Value
      on the date of exercise equal to the aggregate option
      price.
 

                    ·            Shares
      of Stock which have already been owned by you and which are surrendered to
      the Company. The Fair Market Value of the shares, determined as of the
      effective date of the option exercise, will be applied to the option
      price.

                  

          

        

      

    
 

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	 
      	
                        ·            To
      the extent a public market for the Stock exists as determined by the
      Company, by delivery (on a form prescribed by the Company) of an
      irrevocable direction to a licensed securities broker acceptable to the
      Company to sell shares of Stock and to deliver all or part of the sale
      proceeds to the Company in payment of the aggregate option
      price.

                      
	 	 
	
                        Withholding
      Taxes

                      	
                        You
      will not be allowed to exercise this option unless you make acceptable
      arrangements to pay any withholding or other taxes that may be due as a
      result of the option exercise or sale of shares of Stock acquired under
      this option.  Any of the methods described under “Form of
      Payment” will be considered acceptable arrangements for paying such
      taxes.

                      
	 	 
	
                        Transfer
      of Option

                      	
                        During
      your lifetime, only you (or, in the event of your legal incapacity or
      incompetency, your guardian or legal representative) may exercise the
      option.  You cannot transfer or assign this
      option.  For instance, you may not sell this option or use it as
      security for a loan.  If you attempt to do any of these things,
      this option will immediately become invalid.  You may, however,
      dispose of this option in your will or it may be transferred upon your
      death by the laws of descent and distribution.
 

                        Regardless
      of any marital property settlement agreement, the Company is not obligated
      to honor a notice of exercise from your spouse, nor is the Company
      obligated to recognize your spouse’s interest in your option in any other
      way.

                      
	 	 
	
                        Market
      Stand-off 

                        Agreement

                      	
                        In
      connection with any underwritten public offering by the Company of its
      equity securities pursuant to an effective registration statement filed
      under the Securities Act, including the Company’s initial public offering,
      you agree not to sell, make any short sale of, loan, hypothecate, pledge,
      grant any option for the purchase of, or otherwise dispose or transfer for
      value or agree to engage in any of the foregoing transactions with respect
      to any shares of Stock without the prior written consent of the Company or
      its underwriters, for such period of time after the effective date of such
      registration statement as may be requested by the Company or the
      underwriters (not to exceed 180 days in length).

                      
	 	 
	
                        Investment
      

                        Representation

                      	
                        If
      the sale of Stock under the Plan is not registered under the Securities
      Act, but an exemption is available which requires an investment or other
      representation, you shall represent and agree at the time of exercise that
      the Stock being acquired upon exercise of this option is being acquired
      for investment, and not with a view to the sale or distribution thereof,
      and shall make such other representations as are deemed necessary or
      appropriate by the Company and its
counsel.

                      

              

            

          

        

      

    
 

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      
        	
                The
      Company's Right of 

                First
      Refusal

              	
                In
      the event that you propose to sell, pledge or otherwise transfer to a
      third party any Stock acquired under this Agreement, or any interest in
      such Stock, the Company shall have the “Right of First Refusal” with
      respect to all (and not less than all) of such shares of
      Stock.  If you desire to transfer Stock acquired under this
      Agreement, you must give a written “Transfer Notice” to the Company
      describing fully the proposed transfer, including the number of shares
      proposed to be transferred, the proposed transfer price and the name and
      address of the proposed transferee.
 

                The
      Transfer Notice shall be signed both by you and by the proposed new
      transferee and must constitute a binding commitment of both parties to the
      transfer of the shares.  The Company shall have the right to
      purchase all, and not less than all, of the shares of Stock on the terms
      of the proposal described in the Transfer Notice (subject, however, to any
      change in such terms permitted in the next paragraph) by delivery of a
      notice of exercise of the Right of First Refusal within thirty (30) days
      after the date when the Transfer Notice was received by the
      Company.
 

                If
      the Company fails to exercise its Right of First Refusal within thirty
      (30) days after the date when it received the Transfer Notice, you may,
      not later than ninety (90) days following receipt of the Transfer Notice
      by the Company, conclude a transfer of the Stock subject to the Transfer
      Notice on the terms and conditions described in the Transfer
      Notice.  Any proposed transfer on terms and conditions different
      from those described in the Transfer Notice, as well as any subsequent
      proposed transfer by you, shall again be subject to the Right of First
      Refusal and shall require compliance with the procedure described in the
      paragraph above.  If the Company exercises its Right of First
      Refusal, the parties shall consummate the sale of the Stock on the terms
      set forth in the Transfer Notice within 60 days after the date when the
      Company received the Transfer Notice (or within such longer period as may
      have been specified in the Transfer Notice); provided, however, that in
      the event the Transfer Notice provided that payment for the Stock was to
      be made in a form other than lawful money paid at the time of transfer,
      the Company shall have the option of paying for the Stock with lawful
      money equal to the present value of the consideration described in the
      Transfer Notice.

              

      

    
 

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      
        
          
            	 
      	
                    In
      the case of any purchase of Stock under this Right of First Refusal, at
      the option of the Company, the Company may pay you the purchase price in
      three or fewer annual installments.  Interest shall be credited
      on the installments at the applicable federal rate (as determined for
      purposes of Section 1274 of the Code) in effect on the date on which
      the purchase is made.  The Company shall pay at least one-third
      of the total purchase price each year, plus interest on the unpaid
      balance, with the first payment being made on or before the 60th
      day after the purchase.
 

                    The
      Company’s rights under this subsection shall be freely assignable, in
      whole or in part, shall inure to the benefit of its successors and assigns
      and shall be binding upon any transferee of the shares of
      Stock.
 

                    The
      Company’s Right of First Refusal shall terminate in the event that the
      Stock is listed on an established national or regional stock exchange, is
      admitted for quotation on The Nasdaq Stock Market, Inc., or is publicly
      traded in an established securities market.

                  
	 	 
	
                    Right
      to Repurchase

                  	
                    Following
      termination of your Service for any reason, the Company shall have the
      right to purchase all of those shares of Stock that you have or will
      acquire under this option.  If the Company exercises its right
      to purchase the shares, the Company will notify you of its intention to
      purchase such shares, and will consummate the purchase within one year (or
      90 days to the extent required by applicable law) of your termination of
      Service or, in the case of Stock acquired after your termination of
      Service, within one year (or 90 days to the extent required by applicable
      law) of the date of exercise.
 

                    The
      purchase price shall be the Fair Market Value of the shares on the date of
      your termination of Service if the Company exercises its right to purchase
      such shares within 90 days of your termination of Service or exercises its
      right within 90 days of the date of your exercise of the option following
      termination of Service; otherwise the purchase price shall be the Fair
      Market Value of the shares on the date the Company gives you notice of its
      intent to exercise its right to purchase the
shares.
 

                    The
      Company's rights of repurchase shall terminate in the event that the Stock
      is listed on an established national or regional stock exchange, is
      admitted for quotation on The Nasdaq Stock Market, Inc., or is publicly
      traded in an established securities market.

                  
	 	 
	
                    Retention
      Rights

                  	
                    Neither
      your option nor this Agreement give you the right to be retained by the
      Company (or any Parent, Subsidiaries or Affiliates) in any
      capacity.  The Company (and any Parent, Subsidiaries or
      Affiliates) reserve the right to terminate your Service at any time and
      for any
reason.

                  

          

        

      

    
 

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	
                        Shareholder
      Rights

                      	
                        You,
      or your estate or heirs, have no rights as a shareholder of the Company
      until a certificate for your option’s shares has been issued (or an
      appropriate book entry has been made).  No adjustments are made
      for dividends or other rights if the applicable record date occurs before
      your stock certificate is issued (or an appropriate book entry has been
      made), except as described in the Plan.

                      
	 	 
	
                        Adjustments

                      	
                        In
      the event of a stock split, a stock dividend or a similar change in the
      Stock, the number of shares covered by this option and the option price
      per share shall be adjusted (and rounded down to the nearest whole number)
      if required pursuant to the Plan.  Your option shall be subject
      to the terms of the agreement of merger, liquidation or reorganization in
      the event the Company is subject to such corporate
    activity.

                      
	 	 
	
                        Legends

                      	
                        All
      certificates representing the Stock issued upon exercise of this option
      shall, where applicable, have endorsed thereon the following
      legends:
 

                        “THE
      SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS
      ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT
      BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR
      IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE
      OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY
      OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS
      CERTIFICATE.”

                      
	 	 
	 
      	
                        “THE
      SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY SECURITIES LAWS OF ANY STATE OR
      OTHER JURISDICTION, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
      WITHOUT AN EFFECTIVE REGISTRATION OR QUALIFICATION THEREOF UNDER SUCH ACT
      AND SUCH APPLICABLE STATE OR OTHER JURISDICTION'S SECURITIES LAWS OR AN
      OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
      REGISTRATION AND QUALIFICATION IS NOT REQUIRED.”

                      
	 	 
	
                        Applicable
      Law

                      	
                        This
      Agreement will be interpreted and enforced under the laws of the State of
      Maryland, other than any conflicts or choice of law rule or principle that
      might otherwise refer construction or interpretation of this Agreement to
      the substantive law of another
jurisdiction.

                      

              

            

          

        

      

    
 

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    The
      Plan

                     

                  	
                    The
      text of the Plan is incorporated in this Agreement by
      reference.  Certain capitalized terms used in this Agreement are
      defined in the Plan, and have the meaning set forth in the
      Plan.
 

                    This
      Agreement and the Plan constitute the entire understanding between you and
      the Company regarding this option.  Any prior agreements,
      commitments or negotiations concerning this option are
      superseded.

                  
	 	 
	
                    Data
      Privacy

                  	
                    In
      order to administer the Plan, the Company may process personal data about
      you.  Such data includes but is not limited to the information
      provided in this Agreement and any changes thereto, other appropriate
      personal and financial data about you such as home address and business
      addresses and other contact information, payroll information and any other
      information that might be deemed appropriate by the Company to facilitate
      the administration of the Plan.
 

                    By
      accepting this grant, you give explicit consent to the Company to process
      any such personal data.  You also give explicit consent to the
      Company to transfer any such personal data outside the country in which
      you work or are employed, including, with respect to non-U.S. resident
      Grantees, to the United States, to transferees who shall include the
      Company and other persons who are designated by the Company to administer
      the Plan.

                  
	 	 
	
                    Consent
      to Electronic 

                    Delivery

                  	
                    The
      Company may choose to deliver certain statutory materials relating to the
      Plan in electronic form.  By accepting this grant you agree that
      the Company may deliver the Plan prospectus and the Company’s annual
      report (to the extent required) to you in an electronic
      format.  If at any time you would prefer to receive paper copies
      of these documents, as you are entitled to, the Company would be pleased
      to provide copies.  Please contact Kim DeChello to request paper
      copies of these
documents.

                  

          

        

      

    

     

    By
signing the cover sheet of this Agreement, you agree to all of the terms and
conditions described above and in the Plan.
 

    
      
         

      

      
        8

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