Document:

Exhibit 4.2

 

ACCOLADE, INC.

 

 

FIFTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

 

 

DATED AS OF OCTOBER 2, 2019

 

 

FIFTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

 

THIS FIFTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of October 2, 2019 is made by and among ACCOLADE, INC., a Delaware corporation (the “Company”), and the Persons (as defined below) set forth on Schedule A attached hereto (the “Stockholders”).

 

RECITALS

 

WHEREAS, pursuant to that certain Series F Preferred Stock Purchase Agreement, dated as of the date hereof (the “Purchase Agreement”), by and among the Company and certain investors (the “Series F Purchasers”), the Company has agreed to sell and issue shares of the Company’s Series F Preferred Stock, $0.0001 par value per share (the “Series F Preferred Stock”), to the Series F Purchasers;

 

WHEREAS, as an inducement for the Series F Investors to enter into the Purchase Agreement, the Company and the Stockholders have agreed to enter into this Agreement;

 

WHEREAS, certain of the Stockholders (the “Prior Stockholders”) are holders of the Company’s Series A-1 Preferred Stock, $0.0001 par value per share, and Series A-2 Preferred Stock, $0.0001 par value per share (collectively, the “Series A Preferred Stock”), the Company’s Series B Preferred Stock, $0.0001 par value per share (the “Series B Preferred Stock”), the Company’s Series C Preferred Stock, $0.0001 par value per share (the “Series C Preferred Stock”), the Company’s Series D Preferred Stock, $0.0001 par value per share (the “Series D Preferred Stock”) and the Company’s Series E Preferred Stock, $0.0001 par value per share (the “Series E Preferred Stock”);

 

WHEREAS, the Prior Stockholders and the Company are parties to that certain Fourth Amended and Restated Registration Rights Agreement dated as of March 16, 2018 (the “Prior Agreement”); and

 

WHEREAS, the Company and the Prior Stockholders representing the holders of a requisite number of shares of each class and series of the Company’s capital stock necessary to approve amending and restating the Prior Agreement pursuant to Section 17.5 of the Prior Agreement desire to amend and restate the Prior Agreement in its entirety and accept the rights, obligations and covenants hereof in lieu of the rights, obligations and covenants under the Prior Agreement.

 

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

 

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

 

1.1                               “A16Z” means Andreessen Horowitz Fund IV, L.P., and each of its Affiliates that acquires shares of Preferred Stock.

 

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1.2                               “Affiliate” means, with respect to the Company or any other specified Person, any Person directly or indirectly controlling, controlled by or under direct or indirect common control with the Company or such other specified Person, respectively, including, any partner, officer, director, member or employee of such Person and any venture capital, private equity or investment fund now or hereafter existing that is controlled by or under common control with one or more general partners of, or shares the same management company with, such Person, and shall also include, in the case of a specified Person who is an individual, any Family Member of such Person.  The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as used with respect to any Person shall mean the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

1.3                               “Carrick Investors” means Carrick Capital Partners, L.P., a Delaware limited partnership, Carrick Capital Associates Fund, L.P., a Delaware limited partnership, and Carrick Capital Founders Fund, L.P., a Delaware limited partnership, and each of their respective Affiliates that acquire shares of Preferred Stock.

 

1.4                               “Certificate of Incorporation” means the Company’s Sixth Amended and Restated Certificate of Incorporation, as amended or restated from time to time in accordance with the terms thereof and, if applicable, the terms of this Agreement.

 

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

 

1.6                               “Common Stock” means the Company’s common stock, $0.0001 par value per share.

 

1.7                               “CV” means Comcast Ventures, LP, a Delaware limited partnership.

 

1.8                               “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

1.9                               “Family Member” means, with respect to any individual, such individual’s parents, siblings (whether natural or adopted), spouse, and descendants (whether natural or adopted) and any trust or other vehicle formed solely for the benefit of, and controlled by, such individual and/or any one or more of them.

 

1.10                        “Initiating Stockholders” means, (a) with respect to the Company’s initial public offering of securities, the Stockholders holding at least a majority of the Preferred Registrable Shares and, (b) in all other cases, the Stockholders holding at least 10% of the Preferred Registrable Shares.

 

1.11                        “Other Registrable Shares” means any shares of Common Stock (including shares issuable upon conversion, exercise or exchange of any option, warrant or other right) other than Preferred Registrable Shares; provided, however, that shares of Common Stock that are Other Registrable Shares shall cease to be Other Registrable Shares (a) upon any sale by the holders thereof pursuant to a Registration Statement or Rule 144 under the Securities Act, or (b) upon any sale in any manner to a Person which, by virtue of Section 16 hereof, is not entitled to the rights provided by this Agreement.

 

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1.12                        “Person” means an individual, partnership, corporation, limited liability company, association, trust, joint venture, unincorporated organization or other entity and any government, governmental department or agency or political subdivision thereof.

 

1.13                        “Preferred Registrable Shares” means (a) the shares of Common Stock into which each share of Preferred Stock held by any Stockholder has been converted or is then convertible and (b) any other shares of Common Stock of the Company issued in respect of the shares described in clause (a) above because of stock splits, stock dividends, reclassifications, recapitalizations, reorganizations or other similar events; provided, however, that shares of Common Stock that are Preferred Registrable Shares shall cease to be Preferred Registrable Shares (i) upon any sale by the holders thereof pursuant to a Registration Statement or Rule 144 under the Securities Act, or (ii) upon any sale in any manner to a Person which, by virtue of Section 16 hereof, is not entitled to the rights provided by this Agreement.  Wherever reference is made in this Agreement to a request or consent of holders of a certain percentage of Preferred Registrable Shares, the determination of such percentage shall include all shares of Common Stock issued or issuable pursuant to clause (a) of this Section 1.13.

 

1.14                        “Preferred Stock” means, collectively, the Series A Preferred Stock, the Series B Preferred Stock, the Series C Preferred Stock, the Series D Preferred Stock, the Series E Preferred Stock, the Series F Preferred Stock and each other series of the Company’s Preferred Stock designated in the future.

 

1.15                        “Registrable Shares” means, collectively, the Preferred Registrable Shares and the Other Registrable Shares.

 

1.16                        “Registration Statement” means a registration statement filed by the Company with the Commission for a public offering and sale of securities of the Company (other than a registration statement on Form S-8 or Form S-4, or their successors).

 

1.17                        “Required Holders” means, at any time, those Stockholders holding at least seventy-five percent (75%) of the then-outstanding shares of Preferred Stock, voting together as a single class on an as-converted basis.

 

1.18                        “Securities Act” means the Securities Act of 1933, as amended.

 

1.19                        “Separate Series Required Holders” means, at any time, (a) with respect to the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock or Series D Preferred Stock, upon the written consent of Stockholders holding at least seventy-five percent (75%) of the then-outstanding shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock or Series D Preferred Stock, voting together as a single class on an as-converted basis, and (b) with respect to the Series E Preferred Stock, upon the written consent of the Stockholders holding at least sixty-six and two thirds percent (66.7%) of the then outstanding shares of Series E Preferred Stock, voting as a separate class.

 

1.20                        “Series B Investors” means each of CV, FW Accolade Investors, L.P. and any of their respective Affiliates that may acquire shares of Preferred Stock.

 

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Section 2.                                           Legend.  Each certificate representing the Registrable Shares shall bear a legend substantially in the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN REGISTRATION RIGHTS AGREEMENT, AS AMENDED FROM TIME TO TIME, BY AND AMONG THE STOCKHOLDER, THE COMPANY AND CERTAIN OTHER STOCKHOLDERS, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.”

 

Section 3.                                           Required Registrations.

 

3.1                               At any time after the earlier of (a) June 30, 2022 (other than within the one hundred eighty (180) day period after the effective date of the Registration Statement on Form S-1 filed in connection with the Company’s initial public offering of securities) or (b) one hundred eighty (180) days after the effective date of the Registration Statement on Form S-1 filed in connection with the Company’s initial public offering of securities, the Initiating Stockholders may request, in writing, on up to two (2) separate occasions (such limitation being subject to a requested registration having become declared or order effective), that the Company effect a registration on Form S-1 (or any successor form) of Preferred Registrable Shares owned by one or more Stockholders having minimum gross proceeds in each registration on Form S-1 of at least $10,000,000.  If the Initiating Stockholders intend to distribute the Preferred Registrable Shares by means of an underwriting, they shall so advise the Company in their request.  In the event such registration is underwritten, the right of other Stockholders to participate in such registration shall be conditioned on such Stockholders’ participation in such underwriting.  Upon receipt of any such request from the Initiating Stockholders, the Company shall promptly give written notice of such proposed registration to all other Stockholders.  Such other Stockholders shall have the right, by giving written notice to the Company within thirty (30) days after the Company provides its notice, to elect to have included in such registration such of their Preferred Registrable Shares and/or Other Registrable Shares as such Stockholders may request in such notice of election.  All Stockholders proposing to distribute their Preferred Registrable Shares and/or Other Registrable Shares through such underwriting shall enter into an underwriting agreement in customary form with an underwriter or underwriters that is mutually agreeable to the Company and the Stockholders holding a majority of the Preferred Registrable Shares and/or Other Registrable Shares that the Stockholders requested for inclusion in such registration.  The Company shall, at its own expense and as expeditiously as possible, use its best efforts to effect the registration, on Form S-1 (or any successor form), of all Preferred Registrable Shares and/or Other Registrable Shares that the Company has been requested to so register.  If the underwriter advises the holders of Preferred Registrable Shares and/or Other Registrable Shares requesting registration hereunder that, in its good faith view, marketing factors require a limitation of the number of shares to be underwritten, then the Company shall exclude from such registration (a) first, securities held by any Person who does not have any contractual rights to cause the Company to register such securities, (b) second, securities held by any Person with such contractual rights other than those granted under this Agreement, (c) third, any registered for primary issue securities held by the Company, (d) fourth, Other Registrable Shares pro rata among the holders thereof on the basis of the respective number of Other Registrable Shares requested to be included in such registration

 

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and (e) fifth, Preferred Registrable Shares pro rata among the holders thereof on the basis of the respective number of Preferred Registrable Shares requested to be included in such registration.  If any Registration Statement requested pursuant to this Section 3.1 does not become effective or remain effective for a period of one hundred eighty (180) days (or, if earlier, until all Preferred Registrable Shares and/or Other Registrable Shares covered thereby have been sold), the request for such registration shall not be included as one (1) of the registrations that may be requested pursuant to this Section 3.1 and shall be at the sole expense of the Company.

 

3.2                               At any time after the Company becomes eligible to file a Registration Statement on Form S-3 (or any successor form relating to secondary offerings, hereinafter, “Form S-3”), the Initiating Stockholders will have the right to require the Company to effect Registration Statements on Form S-3 of Preferred Registrable Shares having a minimum gross proceeds in each registration on Form S-3 of at least $1,000,000.  Upon receipt of any such request, the Company shall promptly give written notice of such proposed registration to all other Stockholders.  Such other Stockholders shall have the right, by giving written notice to the Company within thirty (30) days after the Company provides its notice, to elect to have included in such registration such of their Preferred Registrable Shares and/or Other Registrable Shares as such Stockholders may request in such notice of election.  Thereupon, the Company shall, as expeditiously as possible, use its best efforts to effect the registration on Form S-3 of all Preferred Registrable Shares and/or Other Registrable Shares that the Company has been requested to so register and, if so requested, maintain the effectiveness of such Registration Statement until all applicable Preferred Registrable Shares and/or Other Registrable Shares have been sold as permitted by Rule 415 of the Securities Act.

 

3.3                               If at the time of any request to register Preferred Registrable Shares pursuant to this Section 3, (a) the Company has not delayed any other registration pursuant to this Section 3 for any period of time during the preceding twelve (12) month period and (b) the Company is engaged, or has fixed plans to engage within thirty (30) days of the time of such request, in a registered public offering as to which the Stockholders may include Preferred Registrable Shares pursuant to Section 4, the Company may delay any such requested registration for up to ninety (90) days from the effective date of such offering, provided, that such right to delay a request may be exercised by the Company not more than once in any twelve (12) month period.

 

Section 4.                                           Company Registration.

 

4.1                               Subject to Section 4.2, whenever the Company proposes to file a Registration Statement (including for this purpose, a registration effected by the Company for stockholders other than holders of Registrable Shares) at any time and from time to time, it will, prior to such filing, promptly give written notice to all Stockholders of its intention to do so and, if the Company receives the written request of any Stockholder holding Registrable Shares within twenty (20) days after the Company provides such notice, the Company shall use its best efforts to cause all Registrable Shares that the Company has been requested by such Stockholder or Stockholders to be registered under the Securities Act to the extent necessary to permit their sale or other disposition; provided, however, that the rights set forth in this Section 4 shall not apply to Registration Statements to be filed pursuant to Section 3 hereof; and provided  further that the Company shall have the right to postpone or withdraw any registration effected pursuant to this Section 4 without obligation to any Stockholder.

 

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4.2                               In connection with any offering under this Section 4 involving an underwriting, the Company shall not be required to include any Registrable Shares in such underwriting unless the holders thereof accept the terms of the underwriting as reasonably agreed upon between the Company and the underwriter(s) selected by it.  If the underwriter advises the holders of Registrable Shares requesting registration hereunder that, in its good faith view, marketing factors require a limitation of the number of shares to be underwritten, then the Company shall exclude from such registration (a) first, securities held by any Person who does not have any contractual rights to cause the Company to register such securities, (b) second, securities held by any Person with such contractual rights other than those granted under this Agreement, (c) third, shares held by the holders of Other Registrable Shares pro rata among such holders on the basis of the respective number of Other Registrable Shares requested to be included in such registration and (d) fourth, shares held by the holders of Preferred Registrable Shares pro rata among such holders on the basis of the respective number of Preferred Registrable Shares requested to be included in such registration, but in no event shall the amount of Preferred Registrable Shares included in the offering pursuant to this clause (d) be reduced below thirty percent (30%) of the total amount of securities included in such offering unless such offering is the initial public offering of the Company’s securities and no other stockholder has included shares in such registration.

 

Section 5.                                           Registration Procedures.  If and whenever the Company is required by the provisions of this Agreement to effect the registration of any of the Registrable Shares under the Securities Act, the Company shall:

 

5.1                               Prepare and file with the Commission a Registration Statement with respect to such Registrable Shares and use its best efforts to cause that Registration Statement to become and remain effective until the completion of the distribution;

 

5.2                               As expeditiously as reasonably practicable, prepare and file with the Commission any amendments and supplements to the Registration Statement and the prospectus included in the Registration Statement as may be necessary to keep the Registration Statement effective, and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement;

 

5.3                               As expeditiously as reasonably practicable, furnish to each selling Stockholder such reasonable numbers of copies of the Registration Statement, each amendment and supplement thereto, prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as the selling Stockholder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Shares owned by the selling Stockholder;

 

5.4                               As expeditiously as reasonably practicable, use its best efforts to register or qualify the Registrable Shares covered by the Registration Statement under the securities or Blue Sky laws of such states as the selling Stockholders shall reasonably request, and do any and all other acts and things that may reasonably be necessary or desirable to enable the selling Stockholders to consummate the public sale or other disposition in such states of the Registrable Shares owned by the selling Stockholders; provided, however, that the Company shall not be

 

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required in connection with this Section 5.4 to qualify as a foreign corporation or execute a general consent to service of process in any jurisdiction where it is not conducting business;

 

5.5                               In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering.  Each Stockholder participating in such underwriting shall also enter into and perform its obligations under such an agreement;

 

5.6                               Promptly notify each selling Stockholder of Registrable Shares covered by such Registration Statement, and each underwriter, if any, after it shall receive notice thereof, of the time when such Registration Statement has become effective or such supplement to any prospectus forming a part of such Registration Statement has been filed;

 

5.7                               Promptly notify each selling Stockholder of Registrable Shares covered by such Registration Statement, and each underwriter, if any, of any request by the Commission for the amending or supplementing of such Registration Statement or prospectus or for additional information;

 

5.8                               Prepare and promptly file with the Commission, and promptly notify each selling Stockholder of Registrable Shares covered by such Registration Statement, and each underwriter, if any, of such amendment or supplement to such Registration Statement or prospectus, as then in effect, as may be necessary to correct any statements or omissions if, at the time when a prospectus relating to such securities is required to be delivered under the Securities Act, any event has occurred as the result of which any such prospectus or any other prospectus as then in effect would include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances in which they were made;

 

5.9                               Promptly notify each selling Stockholder of Registrable Shares covered by such Registration Statement, and each underwriter, if any, after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceeding for that purpose and promptly use all reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal if such stop order should be issued;

 

5.10                        At any time when a Registration Statement is effective under the Securities Act, promptly notify each selling Stockholder of Registrable Shares covered by such Registration Statement, and each underwriter, if any, (a) of the happening of any event as a result of which the prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing and (b) if due to such event the Company suspends its obligation to maintain the effectiveness of any Registration Statement or suspends the use of any prospectus or prospectus supplement in connection with any Registration Statement.  The Company shall promptly prepare and file a supplement or amendment to such prospectus so that it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing;

 

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5.11                        Furnish, on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, (a) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to each selling Stockholder of Registrable Shares covered by such Registration Statement and (b) a letter dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering addressed to the underwriters and to each selling Stockholder of Registrable Shares covered by such Registration Statement;

 

5.12                        If the Company has delivered preliminary or final prospectuses to the selling Stockholders and after having done so the prospectus is amended to comply with the requirements of the Securities Act, the Company shall promptly notify the selling Stockholders and, if requested, the selling Stockholders shall immediately cease making offers of Registrable Shares and return all prospectuses to the Company.  The Company shall promptly provide the selling Stockholders with revised prospectuses and, following receipt of the revised prospectuses, the selling Stockholders shall be free to resume making offers of the Registrable Shares; and

 

5.13                        Cause all such Registrable Shares to be listed on or included in each securities exchange or quotation system on which similar securities issued by the Company are then listed.

 

Section 6.                                           Allocation of Expenses.  The Company will pay all Registration Expenses (as defined below) of all registrations under this Agreement; provided, however, that if a registration under Section 3.1 is withdrawn at the request of the Initiating Stockholders (other than as a result of information concerning the business or financial condition of the Company that is made known in writing to the Stockholders requesting registration after the date on which such registration was requested) and if the Initiating Stockholders elect not to have such registration counted as a registration requested under Section 3.1, the Initiating Stockholders shall pay the Registration Expenses of such registration pro rata in accordance with the number of their Registrable Shares requested to be included in such registration.  The term “Registration Expenses” shall mean all expenses incurred in complying with this Agreement, including all registration and filing fees, exchange listing fees, printing expenses, fees and disbursements of counsel for the Company and the reasonable fees and expenses in an amount up to $75,000 of one (1) counsel selected by the selling Stockholders to represent the selling Stockholders, state Blue Sky fees and expenses, and the expense of any special audits or “cold comfort” letters incident to or required by any such registration, but excluding underwriting discounts and selling commissions.

 

Section 7.                                           Indemnification and Contribution.

 

7.1                               In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this Agreement, to the extent permitted by law, the Company will indemnify and hold harmless each selling Stockholder (including each member, manager, partner, Affiliate, officer and director thereof and legal counsel and independent accountant thereto), each underwriter of such selling Stockholder, and each other Person, if any, who controls such selling

 

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Stockholder or underwriter within the meaning of the Securities Act or the Exchange Act (each, a “Stockholder Indemnified Party”) against any expenses, losses, claims, damages or liabilities (“Damages”), joint or several, to which such Stockholder Indemnified Party may become subject under the Securities Act, the Exchange Act, state securities or Blue Sky laws or otherwise, including any of the foregoing incurred in connection with the settlement of any commenced or threatened litigation, insofar as such Damages (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in (a) any Registration Statement under which such Registrable Shares were registered under the Securities Act, (b) any preliminary prospectus or final prospectus contained in the Registration Statement or (c) any amendment or supplement to such Registration Statement, or arise out of or are based upon the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading or any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities laws or otherwise in connection with the offering covered by such Registration Statement; and the Company will reimburse such Stockholder Indemnified Party for any legal or any other expenses reasonably incurred by such Stockholder Indemnified Party in connection with investigating or defending any such Damages (or actions in respect thereof); provided, however, that the Company will not be liable to any Stockholder Indemnified Party in any such case to the extent that any such Damages arise out of or are based upon any untrue statement or omission made in such Registration Statement, final prospectus, or any such amendment or supplement, in reasonable reliance upon and in conformity with information furnished (or not furnished in the case of an omission or alleged omission) to the Company, in writing, by or on behalf of such Stockholder Indemnified Party specifically for use in the preparation thereof.

 

7.2                               In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this Agreement, to the extent permitted by law, each selling Stockholder, severally and not jointly, will indemnify and hold harmless the Company, each of the Company’s directors and officers, each underwriter, if any, the Company’s legal counsel and independent accountants, each Person, if any, who controls the Company or any such underwriter within the meaning of the Securities Act or the Exchange Act, any other seller of Registrable Shares or any such seller’s members, managers, partners, Affiliates, officers and directors, thereof, and legal counsel and independent accountant thereto, and each Person, if any, who controls such seller within the meaning of the Securities Act and the Exchange Act (each, a “Company Indemnified Party”; and together with the Stockholder Indemnified Parties, the “Indemnified Parties”) against any Damages, joint or several, to which the Company Indemnified Party may become subject under the Securities Act, Exchange Act, state securities or Blue Sky laws or otherwise, including any of the foregoing incurred in connection with the settlement of any commenced or threatened litigation, insofar as such Damages (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in (a) any Registration Statement under which such Registrable Shares were registered under the Securities Act, (b) any preliminary prospectus or final prospectus contained in the Registration Statement, or (c) any amendment or supplement to the Registration Statement, or arise out of or are based upon any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and each such seller of Registrable Shares will reimburse each Company Indemnified Party for any legal or any other expenses reasonably

 

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incurred by each Company Indemnified Party entitled to indemnification in connection with investigating or defending any such Damages (or actions in respect thereof) but only if and to the extent the statement or omission was made in reliance upon and in conformity with information furnished (or not furnished in the case of an omission or alleged omission) in writing to the Company by or on behalf of such seller, specifically for use in connection with the preparation of such Registration Statement, prospectus, amendment or supplement; provided, however, that the obligations of each such Stockholder hereunder shall be limited to an amount equal to the net proceeds received by such Stockholder in connection with such offering of such Registrable Shares; provided, further, however, that no such Stockholder will be liable for any amount paid in settlement of any such claim, loss, damage, liability or action if such settlement is effected without the consent of such Stockholder, which consent shall not be unreasonably withheld, conditioned or delayed.

 

7.3                               Each Indemnified Party entitled to indemnification under this Section 7 shall give written notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom; provided, however, that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party, whose approval shall not be unreasonably withheld, conditioned or delayed; and, provided, further, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement, except to the extent that the Indemnifying Party’s ability to defend against such claim or litigation is materially impaired as a result of such failure to give notice.  The Indemnified Party may participate in such defense at such party’s expense; provided, however, that the Indemnifying Party shall pay such expense if representation of such Indemnified Party by the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential conflicts of interests between the Indemnified Party and any other party represented by such counsel in such proceeding.  No Indemnifying Party in the defense of any such claim or litigation shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such claim or litigation, and no Indemnified Party shall consent to entry of any judgment or settle such claim or litigation without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld, conditioned or delayed.  Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation resulting therefrom.

 

7.4                               In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in this Section 7 is due in accordance with its terms but for any reason is held to be unavailable to an Indemnified Party in respect to any Damages referred to herein, then the Indemnifying Party shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such Damages to which such party may be subject in proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and the Indemnified Party on the other in connection with the statements or omissions that resulted in such Damages, as well as any other relevant equitable

 

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considerations.  The relative fault of the Indemnifying Party and the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement or omission of material fact related to information supplied by the Indemnifying Party or the Indemnified Party (or not supplied in the case of an omission or alleged omission) and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The Company and the Stockholders agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to above.  Notwithstanding the provisions of this paragraph of Section 7, (a) in no case shall any one (1) Stockholder be liable or responsible for any amount in excess of the net proceeds received by such Stockholder from the offering of Registrable Shares and (b) the Company shall be liable and responsible for any amount in excess of such proceeds; provided, however, that no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution for any Person who was not guilty of such fraudulent misrepresentation.  Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party or parties under this Section 7.4, notify in writing such party or parties from whom such contribution may be sought, but the omission so to notify such party or parties from contribution may be sought shall not relieve such party from any other obligation it or they may have thereunder or otherwise under this Section 7.4.  No party shall be liable for contribution with respect to any action, suit, proceeding or claim settled without its prior written consent, which consent shall not be unreasonably withheld, condition or delayed.

 

7.5                               The obligations of the Company and the Stockholders under this Section 7 shall survive completion of any offering of Registrable Shares in any Registration Statement and the termination of this Agreement.

 

Section 8.                                           Indemnification with Respect to Underwritten Offering.  In the event that Registrable Shares are sold pursuant to a Registration Statement in an underwritten offering pursuant to Section 3, the Company agrees to enter into an underwriting agreement containing customary representations and warranties with respect to the business and operations of an issuer of the securities being registered and customary covenants and agreements to be performed by such issuer, including customary provisions with respect to indemnification by the Company of the underwriters of such offering.

 

Section 9.                                           Information by Holder.  As a condition to be included in any Registration Statement, each holder of Registrable Shares included in any registration shall furnish to the Company such information regarding such holder and the distribution proposed by such holder as the Company may reasonably request in writing and as shall be required in connection with any registration, qualification or compliance referred to in this Agreement.

 

Section 10.                                    Market Stand-Off Agreement.  In connection with the initial underwritten public offering of the Common Stock, each Stockholder, if requested by the Company and the underwriters managing such public offering, shall agree not to (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly

 

12

 

or indirectly) for Common Stock held immediately before the effective date of the registration statement for such offering or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise (other than those Registrable Shares sold to an underwriter pursuant to an underwriting agreement and included in the public offering) for a specified period of time determined by the Company and the underwriters following the effective date of a Registration Statement; provided, however, that:

 

(a)                                 such agreement shall not exceed 180 days from the effective date of such registration except as may be required by applicable law or regulations promulgated by the Securities Act, the Exchange Act, any state securities laws, or any governing body (including, FINRA Rule 2711(F)(4) or NYSE Rule 472(F)(4) or any successor provisions or amendments thereto);

 

(b)                                 all other holders of more than one percent (1%) of the Company’s outstanding Common Stock (including shares of Common Stock issuable upon the conversion of the Preferred Stock or other convertible securities, or upon the exercise of options, warrants or other rights) and all officers and directors of the Company enter into similar agreements; provided, however, that any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Stockholders  subject to such agreements, based on the number of shares subject to such agreements;

 

(c)                                  such agreement shall only apply to the first such Registration Statement covering Common Stock of the Company to be sold on its behalf to the public in an underwritten offering; and

 

(d)                                 such agreement shall not apply to the transfer of any shares to any trust for the direct or indirect benefit of any Family Member of a Stockholder, provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided  further that any such transfer shall not involve a disposition for value.

 

Such agreement shall be in writing in a form reasonably satisfactory to the Company and such underwriter, and the underwriters in connection with such registration are intended third-party beneficiaries of this Section 10 and shall have the right, power and authority to enforce the provisions hereof as if they were parties hereto.  The Company may impose stop-transfer instructions with respect to the Registrable Shares or other securities subject to the foregoing restriction until the end of the stand-off period.

 

Section 11.                                    Limitations on Subsequent Registration Rights.  The Company shall not, without the prior written consent of the Separate Series Required Holders, enter into any agreement with any holder or prospective holder of any securities of the Company that would allow such holder or prospective holder to (a) include securities of the Company in any registration filed under Section 3 or Section 4, (b) make a demand registration or (c) have registration rights that are pari passu with or superior to the rights granted to the Stockholders under this Agreement.

 

13

 

Section 12.                                   Rule 144 Requirements.  After the earliest of (a) the closing of the sale of securities of the Company pursuant to a Registration Statement, (b) the registration by the Company of a class of securities under Section 12 of the Exchange Act or (c) the issuance by the Company of an offering circular pursuant to Regulation A under the Securities Act, the Company agrees to:

 

(a)                                 comply with the requirements of Rule 144(c) under the Securities Act with respect to making and keeping available current public information about the Company;

 

(b)                                 use its best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); and

 

(c)                                  furnish to any holder of Registrable Shares promptly after receipt of a written request (i) a written statement by the Company as to its compliance with the requirements of said Rule 144(c), and the reporting requirements of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), (ii) a copy of the most recent annual or quarterly report of the Company, and (iii) such other reports and documents of the Company as such holder may reasonably request to avail itself of any similar rule or regulation of the Commission allowing it to sell any such securities without registration, including Rules 144 and 144A.

 

Section 13.                                    Selection of Underwriter.  The Company shall have the right to designate the managing underwriter in any underwritten offering, except for any registration effected pursuant to Section 3, which designation shall be subject to the approval of the Stockholders holding a majority of the Preferred Registrable Shares that all Stockholders requested to be included in such offering, and which approval shall not be unreasonably withheld, conditioned or delayed.

 

Section 14.                                    Mergers, Etc.  The Company shall not, directly or indirectly, enter into any merger, consolidation, or reorganization in which the Company shall not be the surviving corporation unless the proposed surviving entity shall, prior to such merger, consolidation, or reorganization, agree in writing to assume the obligations of the Company under this Agreement, and for that purpose references hereunder to “Registrable Shares” shall be deemed to be references to the securities that the Stockholders would be entitled to receive in exchange for Registrable Shares under the terms of any such merger, consolidation, or reorganization; provided, however, that the provisions of this Agreement shall not apply in the event of any merger, consolidation, or reorganization in which the Company is not the surviving entity if all Stockholders are entitled to receive in exchange for their Registrable Shares consideration consisting solely of (i) cash, (ii) securities of the acquiring entity that may be immediately sold to the public without registration under the Securities Act, or (iii) securities of the acquiring entity that the acquiring entity has agreed to register within ninety (90) days of completion of the transaction for resale to the public pursuant to the Securities Act.

 

Section 15.                                    Successors and Assigns.  Except as provided in Section 16, the provisions of this Agreement shall be binding upon, and inure to the benefit of, the respective successors, assigns, heirs, executors and administrators of the parties hereto.

 

14

 

Section 16.                                    Transfers of Certain Rights.

 

16.1                        Transfer of Rights.  The rights of each Stockholder under this Agreement may be transferred to a transferee or assignee of the Registrable Shares; provided that the Stockholder shall, within ten (10) business days after such transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the number of Registrable Shares with respect to which such rights are being assigned.  The transferee or assignee of a Stockholder’s rights and obligations hereunder shall be deemed a “Stockholder” for purposes of this Agreement.

 

16.2                        Transferees.  Any transferee of a Stockholder’s Registrable Shares shall, as a condition to such transfer, deliver to the Company a written instrument by which such transferee agrees to be bound by the obligations imposed upon the Stockholders under this Agreement to the same extent as if such transferee were a Stockholder hereunder.

 

16.3                        Subsequent Transferees.  A transferee to whom rights are transferred pursuant to this Section 16 may not again transfer such rights to any other Person, other than as provided in Sections 16.1 or 16.2 above.

 

Section 17.                                    Miscellaneous.

 

17.1                        Counterparts; Execution by Electronic Means.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same document.  This Agreement may be executed by signatures exchanged via facsimile or other electronic means.

 

17.2                        No Inconsistent Agreements.  The Company will not hereafter enter into any agreement with respect to its securities that is inconsistent with, grants any rights equal or superior to, or violates the rights granted to the holders of Registrable Shares in this Agreement, without first obtaining the prior written consent of the Required Holders.

 

17.3                        Adjustments Affecting Registrable Shares.  The Company will not take any action, or permit any change to occur, with respect to its securities that would adversely affect the ability of the holders of Registrable Shares to include such Registrable Shares in a registration undertaken pursuant to this Agreement or that would adversely affect the marketability of such Registrable Shares in any such registration (including effecting a stock split or a combination of shares).

 

17.4                        No Waiver.  No waiver of any provision or consent to any action shall constitute a waiver of any other provision or consent to any other action, whether or not similar.  No waiver or consent shall constitute a continuing waiver or consent or commit a party to provide a waiver in the future except to the extent specifically set forth in writing.

 

17.5                        Amendments and Waivers.  Any provision of this Agreement may be amended or the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only by the written consent of the Required Holders and, as to any amendment or waiver adversely changing a specified enumerated right or obligation hereunder of the Company, the Company; provided that the written consent of the Required Holders shall not be required for the Company to amend Schedule A to add a Stockholder as a

 

15

 

party to this Agreement in accordance with the terms of Section 17.7.  Any amendment or waiver effected in accordance with this Section 17.5 shall be binding upon the Company and each of the Stockholders and their respective successors and assigns and the Company shall promptly notify any Stockholder who did not consent or approve such amendment or waiver following the taking of such action.  Notwithstanding the foregoing, no amendment or waiver that would:

 

(a)                                 (i) impose any additional obligations or liabilities on, or increase any liabilities of, A16Z, a Series B Investor or Carrick Investor, or (ii) have a disproportionately adverse effect on A16Z or any Series B Investor or Carrick Investor when compared with the other holders of Preferred Registrable Shares, will be effective against A16Z or such affected Series B Investor or Carrick Investor without the prior written consent of A16Z or such affected Series B Investor or Carrick Investor;

 

(b)                                 be adverse to the holders of Series A Preferred Stock as a whole will be effective without the prior written consent of the holders of at least 75% of the then outstanding shares of Series A Preferred Stock, voting as a separate class, unless such amendment or waiver (i) is similarly adverse to the holders of any other Securities of the Company that rank pari passu with the Series A Preferred Stock and (ii) is effected in connection with a bona fide financing transaction that is led or co-led by a Person not otherwise a Stockholder or an Affiliate thereof;

 

(c)                                  be adverse to the holders of Series B Preferred Stock as a whole will be effective without the prior written consent of the holders of at least 75% of the then outstanding shares of Series B Preferred Stock, voting as a separate class, unless such amendment or waiver (i) is similarly adverse to the holders of any other Securities of the Company that rank pari passu with the Series B Preferred Stock and (ii) is effected in connection with a bona fide financing transaction that is led or co-led by a Person not otherwise a Stockholder or an Affiliate thereof;

 

(d)                                 be adverse to the holders of Series C Preferred Stock as a whole will be effective without the prior written consent of the holders of at least 75% of the then outstanding shares of Series C Preferred Stock, voting as a separate class, unless such amendment or waiver (i) is similarly adverse to the holders of any other Securities of the Company that rank pari passu with the Series C Preferred Stock and (ii) is effected in connection with a bona fide financing transaction that is led or co-led by a Person not otherwise a Stockholder or an Affiliate thereof;

 

(e)                                  be adverse to the holders of Series D Preferred Stock as a whole will be effective without the prior written consent of the holders of at least 75% of the then outstanding shares of Series D Preferred Stock, voting as a separate class, unless such amendment or waiver (i) is similarly adverse to the holders of any other Securities of the Company that rank pari passu with the Series D Preferred Stock and (ii) is effected in connection with a bona fide financing transaction that is led or co-led by a Person not otherwise a Stockholder or an Affiliate thereof;

 

(f)                                   be adverse to the holders of Series E Preferred Stock as a whole will be effective without the prior written consent of the holders of at least 66.7% of the then outstanding shares of Series E Preferred Stock, voting as a separate class, unless such amendment or waiver (i) is similarly adverse to the holders of any other Securities of the Company that rank pari passu with the Series E Preferred Stock and (ii) is effected in connection with a bona fide

 

16

 

financing transaction that is led or co-led by a Person not otherwise a Stockholder or an Affiliate thereof; or

 

(g)                                  adversely alter the rights of the holders of Series F Preferred Stock in a manner that is disproportionate to, or different than, the manner in which it alters the rights of the holders of other series of Preferred Stock, will be effective without the prior written consent of the holders of at least a majority of the then outstanding shares of Series F Preferred Stock, voting as a separate class.

 

The parties hereto expressly acknowledge and agree that the authorization and issuance of shares of any new series of Preferred Stock that is merely pari passu with or senior to the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock or Series F Preferred Stock shall not, in and of itself, (x) be deemed to adversely affect the rights of such Preferred Stock or (y) require the approvals provided for in subsections (a) through (e) of this Section 17.5.  In connection with any transfer by a Series B Investor or Carrick Investor of any of their respective Securities of the Company to an Affiliate, such Affiliate will be considered a Series B Investor or Carrick Investor for all purposes under this Section 17.5.

 

17.6                        Specific Performance.  In addition to any and all other remedies that may be available under this Agreement and applicable law, in the event of any breach of this Agreement, each Stockholder shall be entitled to specific performance of the agreements and obligations of the Company hereunder and to such other injunctive or other equitable relief as may be granted by a court of competent jurisdiction.

 

17.7                        Joinder.  The Company and, if applicable, each party hereto, shall require any Person that acquires, at any time following the date of this Agreement, Registrable Securities (whether from the Company or another Stockholder) to, upon and as a condition to such acquisition, execute a joinder pursuant to which such Person agrees to become subject to the obligations and restrictions applicable to a Stockholder pursuant to the terms of this Agreement

 

17.8                        Remedies Cumulative.  No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

 

17.9                        Jury Trial Waiver.  To the fullest extent permitted by law, and as separately bargained-for-consideration, each party hereby waives any right to trial by jury in any action, suit, proceeding or counterclaim of any kind arising out of or relating to this Agreement.

 

17.10                 Governing Law and Jurisdiction.  This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware, as applicable to contracts executed and delivered in Delaware between Delaware residents and which are to be performed wholly within Delaware, without regard to principles of conflicts of law.  Any proceeding brought with respect to this Agreement must be brought in any court of competent jurisdiction sitting in the State of Delaware and, by execution and delivery of this Agreement, each party (a) accepts, generally and unconditionally, the exclusive jurisdiction of such courts and any related appellate court and irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement and (b) irrevocably waives any objection it may now or hereafter

 

17

 

have as to the venue of any such suit, action or proceeding brought in such a court or that such court is an inconvenient forum.

 

17.11                 Notices.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified; (b) when sent by confirmed facsimile or other electronic means if sent during normal business hours of the recipient; if not, then on the next business day; (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the Company at the address as set forth on the signature page hereof and to a Stockholder at such Stockholder’s address as set forth on Schedule A attached hereto, or at such other address as the Company or a Stockholder may designate by ten (10) days advance written notice to the other parties hereto.

 

17.12                 Severability.  If any term or provision of this Agreement is determined to be illegal, unenforceable or invalid in whole or in part for any reason, such illegal, unenforceable or invalid provisions or part thereof shall be stricken from this Agreement, and such provision shall not affect the legality, enforceability or validity of the remainder of this Agreement.  If any provision or part thereof of this Agreement is stricken in accordance with the provisions of this Section 17.12, then such stricken provision shall be replaced, to extent possible, with a legal, enforceable and valid provision that is as similar in tenor to the stricken provision as is legally possible.

 

17.13                 Section Headings.  The section headings are for the convenience of the parties and in no way alter, modify, amend, limit or restrict the contractual obligations of the parties.

 

17.14                 No Registration of Preferred Stock.  The registration rights contained herein apply only to the Company’s Common Stock, and the Company shall not be obligated to register any shares of the Preferred Stock.

 

17.15                 Expenses.  The Company shall pay, and hold the Stockholders and all holders of Registrable Shares harmless against liability for the payment of the reasonable fees and expenses incurred with respect to the enforcement of the rights granted under, or any amendments or waivers to, this Agreement.

 

17.16                 Termination of Agreement.  This Agreement and the rights and obligations set forth herein shall terminate upon the earliest of (i) five (5) years following the consummation of a Qualified IPO (as defined in the Certificate of Incorporation), (b) at such time following an initial public offering as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares during a three-month period without registration, (iii) the consummation of a Sale Transaction (as defined in the Certificate of Incorporation) or (iv) the effectiveness of a Liquidation Event (as defined in the Certificate of Incorporation).

 

17.17                 Entire Agreement.  This Agreement and schedules referred to herein constitute the entire agreement among the parties and supersede all prior communications,

 

18

 

representations, understandings and agreements of the parties with respect to the subject matter hereof, including the Prior Agreement.  All schedules hereto are hereby incorporated herein by reference.  Nothing in this Agreement, express or implied, is intended to confer upon any third party any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

17.18                 General Interpretation.  The terms of this Agreement have been negotiated by the parties hereto and the language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent.  This Agreement shall be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted, or in favor of the party receiving a particular benefit under this Agreement.  No rule of strict construction will be applied against any Person.

 

17.19                 Rules of Construction.  The words “hereby,” “herein,” “hereof;” “hereunder” and words of similar import refer to this Agreement as a whole (including any Exhibits and Schedules hereto) and not merely to the specific section, paragraph or clause in which such word appears.  All references herein to Articles, Sections, Exhibits, and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, this Agreement unless the context shall otherwise require.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The definitions given for terms in this Agreement shall apply equally to both the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  Except as otherwise expressly provided herein, all references to “dollars” or “$” shall be deemed references to the lawful money of the United States of America.  The use of “or” is not intended to be exclusive unless expressly indicated otherwise.

 

17.20                 Amendment and Restatement of Prior Agreement.  The Prior Agreement is hereby amended and superseded in its entirety and restated herein.  Such amendment and restatement is effective upon execution of this Agreement by the Company and by Stockholders holding at least seventy-five percent (75%) of the shares of Preferred Stock outstanding as of the date hereof, voting together as a single class on an as-converted basis.  Upon such execution, all provisions of, rights granted and covenants made in the Prior Agreement are hereby waived, released and superseded in their entirety and shall have no further force to effect.

 

[Signatures on following pages]

 

19

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
ACCOLADE, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rajeev Singh
    
	
 
    	
Name:
    	
Rajeev Singh
    
	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    	
660 W. Germantown Pike   Suite 500
    
	
 
    	
 
    	
Plymouth Meeting, PA   19462
    
	
 
    	
 
    	
Fax: (610) 834-5738
    
				

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:   
    
	
 
    	
 
    
	
 
    	
AVANTI   HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rajeev Singh
    
	
 
    	
Name:
    	
Rajeev Singh
    
	
 
    	
Title:
    	
Partner
    
	
 
    	
 
    
	
 
    	
RAJEEV   SINGH
    
	
 
    	
 
    
	
 
    	
/s/ Rajeev Singh
    
	
 
    	
(Signature)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
HILTON   FAMILY TRUST
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/Michael Hilton
    
	
 
    	
Name: 
    	
Michael Hilton
    
	
 
    	
Title: 
    	
Trustee
    
	
 
    	
 
    
	
 
    	
MICHAEL   HILTON
    
	
 
    	
 
    
	
 
    	
/s/ Michael Hilton
    
	
 
    	
(Signature)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

STOCKHOLDER:

 

	
 
    	
 
    
	
 
    	
Name of Entity (if Stockholder is not an individual
    
	
 
    	
 
    
	
 
    	
/s/ William Frist
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
Senator William Frist
    
	
 
    	
Name of Signing Person (Printed)
    
	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
(if Stockholder is not an individual)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
ACCRETIVE   CARE HOLDING PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By Accretive II GP, LLC, General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Michael Cline
    
	
 
    	
Name: 
    	
J. Michael Cline
    
	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
ACCRETIVE   II, L.P.
    
	
 
    	
 
    
	
 
    	
By Accretive II GP, LLC, General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Michael Cline
    
	
 
    	
Name: 
    	
J. Michael Cline
    
	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
ACCRETIVE   II COINVESTMENT, L.P.
    
	
 
    	
 
    
	
 
    	
By Accretive II GP, LLC, General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Michael Cline
    
	
 
    	
Name: 
    	
J. Michael Cline
    
	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
ACCRETIVE   COINVESTMENT PARTNERS, LLC
    
	
 
    	
 
    
	
 
    	
By Accretive Associates I, LLC, Managing Member
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Michael Cline
    
	
 
    	
Name: 
    	
J. Michael Cline
    
	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
ACCRETIVE   INVESTORS SBIC, LP
    
	
 
    	
 
    
	
 
    	
By Accretive Associates SBIC, LLC, General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Michael Cline
    
	
 
    	
Name: 
    	
J. Michael Cline
    
	
 
    	
Title: 
    	
Managing Member
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name of Entity (if Stockholder is not an individual
    
	
 
    	
 
    
	
 
    	
/s/ Thomas J. Neff
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
Thomas J. Neff
    
	
 
    	
Name of Signing Person (Printed)
    
	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
(if Stockholder is not an individual)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER: 
    
	
 
    	
 
    
	
 
    	
MS PACE LP
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Buzz Benson
    
	
 
    	
Name: 
    	
Buzz Benson
    
	
 
    	
Title: 
    	
Managing Director
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:   
    
	
 
    	
 
    
	
 
    	
STEPHEN   H. BARNES
    
	
 
    	
 
    
	
 
    	
/s/ Stephen H. Barnes
    
	
 
    	
(Signature)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:   
    
	
 
    	
 
    
	
 
    	
MCKESSON   VENTURES, LLC
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Thomas L. Rodgers
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
Name:
    	
Thomas L. Rodgers
    
	
 
    	
(Printed Name)
    
	
 
    	
 
    
	
 
    	
Title: 
    	
SVP, Managing Director
    
					

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
MADERA   TECHNOLOGY MASTER FUND, LTD.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kris Drankiewicz
    
	
 
    	
Name: 
    	
Kris Drankiewicz
    
	
 
    	
Title: 
    	
Managing Partner
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
MADRONA   VENTURE FUND VI, LP
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Matt McIlwain
    
	
 
    	
Name: 
    	
Matt McIlwain
    
	
 
    	
Title: 
    	
Managing director
    
	
 
    	
 
    
	
 
    	
MADRONA   VENTURE FUND VI-A, LP
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Matt McIlwain
    
	
 
    	
Name: 
    	
Matt McIlwain
    
	
 
    	
Title: 
    	
Managing director
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
The Thomas K. Spann Family Trust dated January 18, 2012
    
	
 
    	
Name of Entity (if Stockholder is not an individual)
    
	
 
    	
 
    
	
 
    	
/s/ Thomas K. Spann
    
	
 
    	
Signature
    
	
 
    	
 
    
	
 
    	
Thomas K. Spann
    
	
 
    	
Name of Signing Person (Printed)
    
	
 
    	
 
    
	
 
    	
Title: 
    	
Person
    
	
 
    	
(if Stockholder is not an individual)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name of Entity (if Stockholder is not an individual)
    
	
 
    	
 
    
	
 
    	
/s/ Thomas K. Spann
    
	
 
    	
Signature
    
	
 
    	
 
    
	
 
    	
Thomas K. Spann
    
	
 
    	
Name of Signing Person (Printed)
    
	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
(if Stockholder is not an individual)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:   
    
	
 
    	
 
    
	
 
    	
COMCAST   VENTURES, LP
    
	
 
    	
 
    
	
 
    	
By: Comcast CV GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Derek Squire
    
	
 
    	
Name: 
    	
Derek Squire
    
	
 
    	
Title: 
    	
General Counsel
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
Humana, Inc.
    
	
 
    	
Name of Entity (if Stockholder is not an individual)
    
	
 
    	
 
    
	
 
    	
/s/ Brian A. Kane
    
	
 
    	
Signature
    
	
 
    	
 
    
	
 
    	
Brian A. Kane
    
	
 
    	
Name of Signing Person (Printed)
    
	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
(if Stockholder is not an individual)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
CARRICK   CAPITAL ASSOCIATES FUND
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James C. Madden, V
    
	
 
    	
Name: 
    	
James C. Madden, V
    
	
 
    	
Title: 
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
CARRICK   CAPITAL PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James C. Madden, V
    
	
 
    	
Name: 
    	
James C. Madden, V
    
	
 
    	
Title: 
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
CARRICK   CAPITAL FOUNDERS FUND
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James C. Madden, V
    
	
 
    	
Name: 
    	
James C. Madden, V
    
	
 
    	
Title: 
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
CARRICK   CAPITAL PARTNERS II CO-INVESTMENT FUND, LP
    
	
 
    	
 
    
	
 
    	
By: Carrick Management Partners II, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James C. Madden, V
    
	
 
    	
Name: 
    	
James C. Madden, V
    
	
 
    	
Title: 
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
CARRICK   CAPITAL PARTNERS II CO-INVESTMENT FUND II, LP
    
	
 
    	
 
    
	
 
    	
By: Carrick Management Partners II, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James C. Madden, V
    
	
 
    	
Name: 
    	
James C. Madden, V
    
	
 
    	
Title: 
    	
Managing Director
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
JAMES   C. MADDEN, V. LIVING TRUST, ESTABLISHED NOVEMBER 18, 1999
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James C. Madden, V
    
	
 
    	
Name: 
    	
James C. Madden, V
    
	
 
    	
Title: 
    	
Trustee
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
CROSS   CREEK CAPITAL II, L.P.
    
	
 
    	
By: Cross Creek Capital II GP, LLC Its Sole General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Karey Barker
    
	
 
    	
Name: 
    	
Karey Barker
    
	
 
    	
Title: 
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
CROSS   CREEK CAPITAL PARTNERS IV, L.P.
    
	
 
    	
By:
    	
Cross Creek Capital Partners IV GP, LLC Its Sole General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Karey Barker
    
	
 
    	
Name: 
    	
Karey Barker
    
	
 
    	
Title: 
    	
Managing Director
    
				

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:   
    
	
 
    	
 
    
	
 
    	
ROBERT   CAVANAUGH
    
	
 
    	
 
    
	
 
    	
/s/ Robert Cavanaugh
    
	
 
    	
(Signature)
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Fifth Amended and Restated Registration Rights Agreement as of the date first above written.

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
ANDREESSEN   HOROWITZ FUND IV, L.P.
    
	
 
    	
For itself and as nominee for Andreessen 
    
	
 
    	
Horowitz Fund IV-A, L.P.,
    
	
 
    	
Andreessen Horowitz Fund IV-B, L.P. and 
    
	
 
    	
Andreessen Horowitz Fund IV-Q, L.P.
    
	
 
    	
 
    
	
 
    	
By: AH Equity Partners IV, L.L.C.
    
	
 
    	
Its General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ben Horowitz
    
	
 
    	
Name: 
    	
Ben Horowjtz
    
	
 
    	
Title: 
    	
Managing Member
    
	
 
    	
 
    
	
 
    	
AH   PARALLEL FUND IV, L.P.
    
	
 
    	
For itself and as nominee for AH 
    
	
 
    	
Parallel Fund IV-A, L.P., AH 
    
	
 
    	
Parallel Fund IV-B, L.P. and AH 
    
	
 
    	
Parallel Fund IV-Q, L.P.
    
	
 
    	
 
    
	
 
    	
By: AH Equity Partners IV, L.L.C.
    
	
 
    	
Its General Partner
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Ben Horowitz
    
	
 
    	
Name: 
    	
Ben Horowjtz
    
	
 
    	
Title: 
    	
Managing Member
    

 

[Signature page to Fifth Amended and Restated Registration Rights Agreement of Accolade, Inc.]

 

 

SCHEDULE A

 

LIST OF STOCKHOLDERS

 

	
Andreessen Horowitz   Fund IV, L.P.
    	
 
    
	
AH Parallel Fund IV,   L.P.
    	
 
    
	
 
    	
 
    
	
2865 Sand Hill Road,   Suite 101
    	
 
    
	
Menlo Park, CA 94025
    	
 
    
	
Attention:
    	
 
    
	
 
    	
 
    
	
Humana, Inc.
    	
 
    
	
500 W. Main St., 21st   Floor
    	
 
    
	
Louisville, Kentucky   40202
    	
 
    
	
 
    	
 
    
	
Madrona Venture Fund   VI, LP
    	
 
    
	
Madrona Venture Fun   VI-A, LP
    	
 
    
	
c/o Madrona Venture   Group
    	
 
    
	
999 3rd Avenue
    	
 
    
	
Seattle, WA 98104
    	
 
    
	
 
    	
 
    
	
AmeriHealth, Inc.
    	
 
    
	
1901 Market St.
    	
 
    
	
Philadelphia, PA 19103
    	
 
    
	
Attention: Alan   Krigstein
    	
 
    
	
 
    	
 
    
	
McKesson Ventures LLC
    	
 
    
	
One Post Street
    	
 
    
	
San Francisco, CA 94104
    	
 
    
	
Attn: Tom Rodgers
    	
 
    
	
 
    	
 
    
	
Medtronic, Inc.
    	
 
    
	
710 Medtronic Parkway
    	
 
    
	
Minneapolis, MN, 55432
    	
 
    
	
 
    	
 
    
	
Avanti Holdings, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Michael Hilton
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Hilton Family Trust
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Stephen H. Barnes
    	
 
    
	
 
    	
 
    

 

Schedule A-1

 

	
Luca Trust
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Thomas J. McGill
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Journey Partners, LLC
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Prentice Family   Partners LLC
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Elisabeth L. Levin
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Carl M. Loeb Trust FBO   Elisabeth L. Levin
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Arthur L. Loeb
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Carl M Loeb Trust — FBO   Jean Troubh
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Carrick Capital   Partners, L.P.
    	
 
    
	
160 Spear Street,   Suite 1620
    	
 
    
	
San Francisco, CA 94105
    	
 
    
	
Attention: James C.   Madden, V
    	
 
    
	
Fax: (415) 432-4101
    	
 
    

 

Schedule A-2

 

	
Carrick Capital   Associates Fund, L.P.
    	
 
    
	
160 Spear Street,   Suite 1620
    	
 
    
	
San Francisco, CA 94105
    	
 
    
	
Attention: James C.   Madden, V
    	
 
    
	
Fax: (415) 432-4101
    	
 
    
	
 
    	
 
    
	
Carrick Capital   Founders Fund, L.P.
    	
 
    
	
160 Spear Street,   Suite 1620
    	
 
    
	
San Francisco, CA 94105
    	
 
    
	
Attention: James C.   Madden, V
    	
 
    
	
Fax: (415) 432-4101
    	
 
    
	
 
    	
 
    
	
Carrick Capital   Partners II Co-Investment Fund II, LP
    	
 
    
	
One California Street.,   Suite 1900
    	
 
    
	
San Francisco, CA 94111
    	
 
    
	
 
    	
 
    
	
Carrick Capital   Partners II Co-Investment Fund, LP
    	
 
    
	
One California Street.,   Suite 1900
    	
 
    
	
San Francisco, CA 94111
    	
 
    
	
 
    	
 
    
	
Accretive II, L.P.
    	
 
    
	
c/o Accretive, LLC
    	
 
    
	
116 West 32nd St., 9th   Fl.
    	
 
    
	
New York, New York   10001
    	
 
    
	
Attention: J. Michael   Cline
    	
 
    
	
Fax: (646) 282-3138
    	
 
    
	
Email:   ashelley@accretivellc.com
    	
 
    
	
 
    	
 
    
	
Accretive Investors   SBIC, L.P.
    	
 
    
	
c c/o Accretive, LLC
    	
 
    
	
116 West 32nd St., 9th   Fl.
    	
 
    
	
New York, New York   10001
    	
 
    
	
Attention: J. Michael   Cline
    	
 
    
	
Fax: (646) 282-3138
    	
 
    
	
Email:   ashelley@accretivellc.com
    	
 
    
	
 
    	
 
    
	
Accretive Coinvestment   Partners, LLC
    	
 
    
	
c/o Accretive, LLC
    	
 
    
	
116 West 32nd St., 9th   Fl.
    	
 
    
	
New York, New York   10001
    	
 
    
	
Attention: J. Michael   Cline
    	
 
    
	
Fax: (646) 282-3138
    	
 
    
	
Email: ashelley@accretivellc.com
    	
 
    

 

Schedule A-3

 

	
Accretive II   Coinvestment Partners, L.P.
    	
 
    
	
c/o Accretive, LLC
    	
 
    
	
116 West 32nd St., 9th   Fl.
    	
 
    
	
New York, New York   10001
    	
 
    
	
Attention: J. Michael   Cline
    	
 
    
	
Fax: (646) 282-3138
    	
 
    
	
Email:   ashelley@accretivellc.com
    	
 
    
	
 
    	
 
    
	
Accretive Care Holding   Partnership
    	
 
    
	
c/o Accretive, LLC
    	
 
    
	
116 West 32nd St., 9th   Fl.
    	
 
    
	
New York, New York   10001
    	
 
    
	
Attention: J. Michael   Cline
    	
 
    
	
Fax: (646) 282-3138
    	
 
    
	
Email: ashelley@accretivellc.com
    	
 
    
	
 
    	
 
    
	
Comcast Ventures, LP
    	
 
    
	
One Comcast Center
    	
 
    
	
1701 John F. Kennedy   Blvd.
    	
 
    
	
Philadelphia, PA 19103
    	
 
    
	
Attention: General   Counsel
    	
 
    
	
e-mail:   cv_legal@comcast.com
    	
 
    
	
 
    	
 
    
	
Comcast Holdings   Corporation
    	
 
    
	
One Comcast Center
    	
 
    
	
1701 John F. Kennedy   Blvd.
    	
 
    
	
Philadelphia, PA 19103
    	
 
    
	
Attention: General   Counsel
    	
 
    
	
e-mail:   corporate_legal@comcast.com
    	
 
    
	
 
    	
 
    
	
FW Accolade Investors,   L.P.
    	
 
    
	
201 Main Street
    	
 
    
	
Suite 3100
    	
 
    
	
Fort Worth, TX 76102
    	
 
    
	
Fax No.: (817) 820-1625
    	
 
    
	
 
    	
 
    
	
Thomas K. Spann
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
The Thomas K. Spann   Family Trust Dated January 18, 2012
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
John C. Stoddard
    	
 
    
	
 
    	
 
    

 

Schedule A-4

 

	
Spiegel Family, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
James   C. Madden, V. Living Trust, established November 18, 1999
    
	
c/o Carrick Capital   Partners, L.P.
    	
 
    
	
160 Spear Street,   Suite 1620
    	
 
    
	
San Francisco, CA 94105
    	
 
    
	
Fax: (415) 432-4101
    	
 
    
	
 
    	
 
    
	
John Rollins
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
The   John D. Rollins Irrevocable Children’s Trust Dated May 22, 2005
    
	
 
    	
 
    
	
 
    	
 
    
	
Thomas J. Neff
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dale Prestipino
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MLPF&S as Cust FBO   Dale Prestipino IRRA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Pensco Trust Company   LLC FBO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
FBO Dale Prestipino IRA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Brian Doyle
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Susan Ray
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Equity   Trust Company Custodian fbo Thomas R Boldt, IRA 137649
    
	
 
    	
 
    

 

Schedule A-5

 

	
Thomas Boldt
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Alan H. Spiro
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Michael Mossman
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jill LaVigne
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Michael Viola
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Eduardo Cisneros
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Roberta Greenberg
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
William Frist
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Amy Loftus
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jeff Smith
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Elizabeth Napolitano
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Paula Bush
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
John Geiger
    	
 
    
	
 
    	
 
    

 

Schedule A-6

 

	
Kristin Heinly
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Michael Perlmutter
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jeff Rubin
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Donna Snow
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Maria Canfield
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
John Hamlin
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Marc Harfeld
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Scott Hudgins
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Brad Loftus
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Julie Stern
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sean Brady
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Ronald Alleva
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Toni Lo Sasso
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Kyle Hood
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sean McGowan
    	
 
    
	
 
    	
 
    

 

Schedule A-7

 

	
Sarah Kline
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Lorraine Knerr
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sean Engle
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Mary Creedon
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Virginia Ferlise
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Bryan Walton
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Eric Campbell
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jocelyn Stauffer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Maria Buera
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Betty Nelson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Marybeth McMurray
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Chris Simpkins
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Kathleen Shelmerdine
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sean Purvis
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Cross Creek Capital II,   L.P.
    	
 
    
	
505 South Wakara Way,   Suite 215
    	
 
    
	
Salt Lake City, UT   84108
    	
 
    

 

Schedule A-8

 

	
Cross Creek Capital   Partners IV, L.P.
    	
 
    
	
505 South Wakara Way,   Suite 215
    	
 
    
	
Salt Lake City, UT   84108
    	
 
    
	
 
    	
 
    
	
Charles Patton
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Harish Naidu
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Colin McHugh
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Escalate Capital   Partners SBIC III, LP
    	
 
    
	
300 W. 6th,   Suite 2230
    	
 
    
	
Austin, TX 78701
    	
 
    
	
 
    	
 
    
	
Madera Technology   Master Fund, Ltd.
    	
 
    
	
379 West Broadway
    	
 
    
	
New York, NY 10012
    	
 
    
	
Attn: Kris Drankiewicz
    	
 
    
	
Email: kris@maderatp.com
    	
 
    
	
 
    	
 
    
	
MF Partners, LLC
    	
 
    
	
660 Newport Center   Drive, Suite 1220
    	
 
    
	
Newport Beach, CA 92660
    	
 
    
	
 
    	
 
    
	
MZ Partners, LLC
    	
 
    
	
660 Newport Center   Drive, Suite 1220
    	
 
    
	
Newport Beach, CA 92660
    	
 
    
	
 
    	
 
    
	
WST Partners, LLC
    	
 
    
	
660 Newport Center   Drive, Suite 1220
    	
 
    
	
Newport Beach, CA 92660
    	
 
    
	
 
    	
 
    
	
William S. Thompson III   Special Trust
    	
 
    
	
660 Newport Center   Drive, Suite 1220
    	
 
    
	
Newport Beach, CA 92660
    	
 
    
	
 
    	
 
    
	
Emily M. Thompson   Special Trust
    	
 
    
	
660 Newport Center   Drive, Suite 1220
    	
 
    
	
Newport Beach, CA 92660
    	
 
    
	
 
    	
 
    
	
Bradley D. Thompson   Special Trust
    	
 
    
	
660 Newport Center   Drive, Suite 1220
    	
 
    
	
Newport Beach, CA 92660
    	
 
    
	
 
    	
 
    
	
Ronald A. and Angela M.   Zeliski
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
John W. Meisenbach
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Paul N. Bordonaro Trust
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Monica B. Wooden   Revocable Trust
    	
 
    
	
 
    	
 
    

 

Schedule A-9

 

	
1P Ventures, LLC
    	
 
    
	
1948 Parnell Ave.
    	
 
    
	
Los Angeles, CA 90025
    	
 
    
	
 
    	
 
    
	
AVGF - BIV2 Accolade   2018, LLC
    	
 
    
	
201 Jones Rd.
    	
 
    
	
Waltham, MA 02451
    	
 
    
	
 
    	
 
    
	
Joe Payne
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Neil Baisler
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Ben Franklin   Technology Partners of Southeastern Pennsylvania
    
	
Building 100 Innovation   Center, Suite 200
    	
 
    
	
4801 S. Broad Street,   The Navy Yard
    	
 
    
	
Philadelphia, PA 19112
    	
 
    
	
 
    	
 
    
	
Daversa Partners
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
konciergeMD
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Veronica Kwong
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Tara Cohn
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Laura Janssen
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Deborah F. Cohen
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dan Klein
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Craig Hersh
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Christopher Smiley
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Michael Scofield
    	
 
    
	
 
    	
 
    

 

Schedule A-10

 

	
Theresa M. Dougherty
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Julia Babij
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Carolyn Young
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Amit Aronson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Robert Patterson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Wendi McNeilly
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jillian Faccone
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Teresa Dolan
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Peter Muller
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Susan Cepil
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Robert Cavanaugh
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Richard Eskew
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Phong Nguyen
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Rajeev Singh
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jerame Thurik
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Marc Jacobs
    	
 
    
	
 
    	
 
    

 

Schedule A-11

 

	
Ricardo Barrera
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Lynn Childs
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
David Burdge
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Subha Bhattacharyay
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Vamsi Krishna Kishore   Manchella
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Xin Tang
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Patrick Doody
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Scott Cariello
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Daniel McKetta
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Elizabeth Sanford
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Todd Grove
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Kevin Wheeler
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jerry Heller
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Christy Scheuerman
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sheila Burke
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
Shah Asset Management,   LLC
    	
 
    
	
Raj Shah
    	
 
    
	
14 West Roy Street
    	
 
    
	
Seattle, WA 98119
    	
 
    

 

Schedule A-12

 

	
Ivor Horn
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Virginia Nash
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Courtney Nash
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Alyson Hemberger
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Steve Thompson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
David Crossgrove
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Robert Lesicki
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Carmen Spohn
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Debra Ryherd
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
John   D. Rollins Irrevocable Children’s Trust FBO Anne Rollins
    
	
 
    
	
 
    	
 
    
	
John   D. Rollins Irrevocable Children’s Trust FBO David Rollins
    
	
 
    
	
 
    	
 
    
	
John   D. Rollins Irrevocable Children’s Trust FBO Margaret Rollins
    
	
 
    
	
 
    	
 
    
	
Jennifer Nishio
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Matthew Wurst
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Brianne Miller
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Timothy Fitzgerald
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jakub Zeman
    	
 
    
	
 
    	
 
    

 

Schedule A-13

 

	
Ashley Haugdahl
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Carrie Keener
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Colin Rigby
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Greatjoy Ndlovu
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Basheer Malaa
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Samuel Hammerman
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Tanikia James
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Adam Perlman
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Lauren Dicair
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Heather Duffy
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Roger Robson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Kathryn Mowers
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Joanne Stumm
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Janet Delage
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Beth Ralls
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Cindy Pius
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Allyson Wood
    	
 
    
	
 
    	
 
    

 

Schedule A-14

 

	
William Johnson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Randy DeOrio
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Leslie Barretta
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Daren Connelly
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Jian Tan
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Saul Weiner
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Mary Johnston
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Radim Bosticka
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Lyndi Thompson
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Lea Lonnberg-Hickling
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Pamela Seplow
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Joe Galley
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Gabriella Napoli
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Amy Ziring
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Sarah Morvin
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Craig Shellenberger
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Judith Crouthamel
    	
 
    
	
 
    	
 
    

 

Schedule A-15

 

	
Michael Sheward
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Amy Whitworth
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Ryan Beaini
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Amy Loftus
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Robert Discolo
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    
	
 
    	
 
    
	
GC&H Investments,   LLC
    	
 
    
	
101 California Street   5th Floor
    	
 
    
	
San Francisco, CA 94111
    	
 
    
	
 
    	
 
    
	
PCOM Primary Care   Innovation Fund LLC
    	
 
    
	
4170 City Avenue
    	
 
    
	
Philadelphia, PA 19131
    	
 
    
	
 
    	
 
    
	
MS Pace LP
    	
 
    
	
c/o SightLine Partners   LLC
    	
 
    
	
8500 Normandale Lake   Boulevard, Suite 1070
    	
 
    
	
Bloomington, MN 55437
    	
 
    
	
 
    	
 
    
	
Lori Discolo
    	
 
    
	
c/o Accolade, Inc.
    	
 
    
	
660 W. Germantown Pike,   Suite #500
    	
 
    
	
Plymouth Meeting, PA   19462
    	
 
    

 

Schedule A-16Exhibit 10.1

ACCOLADE, INC.

AMENDED AND RESTATED 2007 STOCK OPTION PLAN

 

AS AMENDED AND RESTATED EFFECTIVE APRIL 25, 2014

 

ARTICLE ONE

 

GENERAL PROVISIONS

 

I.                                        PURPOSE OF THE PLAN

 

This Amended and Restated 2007 Stock Option Plan is intended to promote the interests of Accolade, Inc., successor-in-interest to Accolade LLC (the “Company”), by providing eligible persons with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Company as an incentive for them to remain in the service of the Company.

 

Capitalized terms herein shall have the meanings assigned to such terms in the attached Appendix.

 

II.                                   STRUCTURE OF THE PLAN

 

The Plan shall be an Equity Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted Awards. Each option for Common Shares issued under the Accolade LLC 2007 Stock Option Plan (the “Existing Plan”) remains outstanding and continues to represent an option for the purchase of shares of Common Stock under the Plan on the same terms and conditions as such option was subject to under the Existing Plan including without limitation, the same number of shares, exercise price, vesting conditions, forfeiture, termination and other restrictions.

 

III.                              ADMINISTRATION OF THE PLAN

 

A.                                    The Plan shall be administered by the Board. However, any or all administrative functions otherwise exercisable by the Board may be delegated to the Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time terminate the functions of the Committee and reassume all powers and authority previously delegated to the Committee.

 

B.                                    The Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue such interpretations of, the Plan and any outstanding Awards thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any Award thereunder.

 

 

IV.                               ELIGIBILITY

 

A.                                    The persons eligible to participate in the Plan are as follows:

 

(1)                                 Employees;

 

(2)                                 non-employee members of the Board or the non-employee members of the board of directors of any Subsidiary; and

 

(3)                                 consultants and other independent advisors who provide services to the Company (or any Subsidiary).

 

B.                                    The Plan Administrator shall have full authority to determine which eligible persons are to receive Awards, the time or times when such Awards are to be made, the number of shares to be covered by each such Award, the status of a granted option as either an Incentive Option or a Non-Statutory Option, the time or times at which an option is to become exercisable, the vesting schedule (if any) applicable to the Awards and the maximum term for which an option is to remain outstanding.

 

C.                                    The Plan Administrator shall have the absolute discretion to grant Awards in accordance with the Equity Grant Program.

 

V.                                    STOCK SUBJECT TO THE PLAN

 

A.                                    The shares issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock. The maximum number of shares of Common Stock which may be issued over the term of the Plan shall not exceed 65,584,959 shares.

 

B.                                    Shares of Common Stock subject to Awards shall be available for subsequent issuance under the Plan to the extent that (i) in the case of options, the options expire or terminate for any reason prior to exercise in full, (ii) in the case of Restricted Stock, the Restricted Stock is cancelled or forfeited for any reason, or (iii) the Awards are cancelled in accordance with the cancellation-regrant provisions of Article Two. Shares issued under the Plan and subsequently repurchased by the Company pursuant to the Company’s repurchase rights under the Plan shall also be available for reissuance through one or more subsequent Award grants under the Plan.

 

C.                                    Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan and (ii) the number and/or class of securities and the exercise price per share (as applicable) in effect under each outstanding Award in order to prevent the dilution or enlargement of benefits thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of one or more outstanding shares of preferred stock of the Company into shares of Common Stock.

 

2

 

ARTICLE TWO

 

EQUITY GRANT PROGRAM

 

I.                                        OPTION TERMS

 

Each option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided,  however, that each such document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to such options.

 

A.                                    Exercise Price.

 

(1)                                 The exercise price per share shall be fixed by the Plan Administrator and may be equal to, less than or greater than the Fair Market Value per share of Common Stock on the option grant date.

 

(2)                                 The exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section I of Article Three and the documents evidencing the option, be payable in cash or check made payable to the Company. Should the Common Stock be registered under Section 12(g) of the 1934 Act at the time the option is exercised, then the exercise price may also be paid as follows:

 

a)                                     in shares of Common Stock held for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, or

 

b)                                     to the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Participant shall concurrently provide irrevocable written instructions (i) to a Company-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Company by reason of such exercise and (ii) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale.

 

Except to the extent such sale and remittance procedure is utilized, payment of the exercise price of the purchased shares must be made on the Exercise Date.

 

B.                                    Exercise and Term of Options. Each option shall be exercisable at such time or times, during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option. However, no option shall have a term in excess of ten (10) years measured from the option grant date. If no vesting schedule is specified by the Plan Administrator, (i) the Participant shall vest in twenty-five percent (25%) of the shares of Common Stock issuable upon exercise of an option upon

 

3

 

completion of one (1) year of continuous Service from the vesting commencement date specified by the Plan Administrator and (ii) the Participant shall vest in the balance of such shares in a series of equal installments of 1/48 of the shares subject to the initial grant on a monthly basis upon the Participant’s completion of each successive month of Service within the thirty-six (36) month period beginning on the first anniversary of the initial vesting commencement date.

 

C.                                    Effect of Termination of Service.

 

(1)                                 The following provisions shall govern the exercise of any options held by the Participant at the time of cessation of Service:

 

a)                                     Any option outstanding at the time of the Participant’s cessation of Service for any reason shall remain exercisable for a period of forty-five (45) days thereafter, except as otherwise determined by the Plan Administrator and set forth in the documents evidencing the option, but no such option shall be exercisable after the expiration of the option term.

 

b)                                     During the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested shares for which the option is exercisable on the date of the Participant’s cessation of Service. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Participant’s cessation of Service, terminate and cease to be outstanding to the extent the option is not otherwise at that time exercisable for vested shares.

 

c)                                      The effect which death, Disability, Involuntary Termination or other event designated by the Plan Administrator is to have on the vesting schedule shall be determined by the Plan Administrator and incorporated into the Stock Option Agreement and shall supersede any provisions to the contrary in this section.

 

d)                                     In the event of an Involuntary Termination following a Company Transaction, the provisions of Section III of this Article Two shall govern the period for which the outstanding options are to remain exercisable following the Participant’s cessation of Service and shall supersede any provisions to the contrary in this section.

 

(2)                                 The Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while the option remains outstanding, to:

 

a)                                     extend the period of time for which the option is to remain exercisable following Participant’s cessation of Service from the limited period otherwise in effect for that option to such greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or

 

4

 

b)                                     permit the option to be exercised, during the applicable post- Service exercise period, not only with respect to the number of vested shares of Common Stock for which such option is exercisable at the time of the Participant’s cessation of Service but also with respect to one or more additional installments in which the Participant would have vested under the option had the Participant continued in Service.

 

D.                                    Shareholder Rights. The holder of an option shall have no shareholder rights with respect to the shares subject to the option until such person shall have exercised the option, paid the exercise price and become a holder of record of the purchased shares and, unless otherwise specified by the Plan Administrator, until such shares shall have vested.

 

E.                                     Repurchase Rights. The Plan Administrator shall have the discretion to grant options which are exercisable for vested or unvested shares of Common Stock. Should the Participant cease Service while holding such shares, the Company shall have the right to repurchase in the case of vested shares at Fair Market Value and in the case of unvested shares at the exercise price paid per share or, if less, Fair Market Value. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right.

 

F.                                      Shareholder Agreements. Each Participant shall, upon and as a condition to the receipt of any shares of Common Stock issued upon the exercise of any options granted under the Plan, become a party to an Investor Rights Agreement, Right of First Refusal and Co-Sale Agreement and Registration Rights Agreement dated as of June 14, 2010 between the Company and holders of capital stock in the Company party thereto, as amended and/or restated from time to time, and agree to be bound by all terms and conditions set forth therein.

 

G.                                    Limited Transferability of Shares. Until such time as the Common Stock is first registered under Section 12(g) of the 1934 Act, the Board shall have the right to consent in its absolute discretion to any proposed disposition by the Participant (or any successor in interest) of any shares of Common Stock issued under the Plan.

 

H.                                   Limited Transferability of Options. During the lifetime of the Participant, the option shall be exercisable only by the Participant and shall not be assignable or transferable other than by will or by the laws of descent and distribution following the Participant’s death.

 

I.                                        Withholding. The Company’s obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements.

 

II.                                   INCENTIVE OPTIONS

 

The terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of the Plan shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options shall not be subject to the terms of this Section II.

 

5

 

A.                                    Eligibility. Incentive Options may only be granted to Employees.

 

B.                                    Exercise Price. The exercise price per share shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date.

 

C.                                    Dollar Limitation. The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Company or any Subsidiary) may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted.

 

D.                                    10% Shareholders. If any Employee to whom an Incentive Option is granted is a 10% Shareholder, then the exercise price per share shall not be less than one hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date and the option term shall not exceed five (5) years measured from the option grant date.

 

III.                              RESTRICTED STOCK

 

The terms specified below shall be applicable to all Restricted Stock. Except as modified by the provisions of this Section III, all the provisions of the Plan shall be applicable to Restricted Stock

 

A.                                    Issuance. Restricted Stock may be issued either alone or in conjunction with other Awards. The Board will determine the time or times within which Restricted Stock may be subject to forfeiture, and all other conditions of such Awards.

 

B.                                    Awards and Certificates. Restricted Stock issue shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided, however, that each document shall comply with the terms specified below. The purchase price for Restricted Stock may, but need not, be zero.

 

Any share certificate issued in connection with an Award of Restricted Stock will be registered in the name of the Participant receiving the Award, and will bear any legend required by the document evidencing the Award or any shareholder, voting or similar agreement entered into by the stockholders of the Company.

 

Share certificates evidencing Restricted Stock will be held in custody by the Company or in escrow by an escrow agent until the restrictions have lapsed. As a condition to any Restricted Stock award, the Participant may be required to deliver to the Company a share power, endorsed in blank, relating to the Shares covered by such Award.

 

C.                                    Restrictions and Conditions. Restricted Stock will be subject to the following restrictions and conditions, and any other restrictions and conditions set forth in the applicable document evidencing the Award.

 

6

 

(1)                                 During a period commencing with the date of an Award of Restricted Stock and ending at such time or times as specified by the Board (the “Restriction Period”), the Participant will not be permitted to sell, transfer, pledge, assign or otherwise encumber Restricted Stock awarded under the Plan. The Board may condition the lapse of restrictions on Restricted Stock upon the continued employment or service of the recipient, the attainment of specified individual or corporate performance goals, or such other factors as the Board may determine, in its sole and absolute discretion.

 

(2)                                 Except as provided in this Paragraph (2) or the applicable document evidencing the award, the Participant will have, with respect to the Restricted Stock, all of the rights of a holder of the Company’s Common Stock, including the right to receive any cash distributions or dividends. The Board, in its sole discretion, may require cash distributions or dividends to be subjected to the same Restriction Period as is applicable to the Restricted Stock with respect to which such amounts are paid, or, if the Board so determines, reinvested in additional Restricted Stock to the extent Shares are available under Section V(A) of Article One. Any distributions or dividends paid in the form of securities with respect to Restricted Stock will be subject to the same terms and conditions as the Restricted Stock with respect to which they were paid, including, without limitation, the same Restriction Period.

 

(3)                                 Subject to the applicable provisions of the document evidencing the Award, if a Participant’s service with the Company terminates prior to the expiration of the Restriction Period, all of that Participant’s Restricted Stock which then remain subject to forfeiture will then be forfeited automatically.

 

(4)                                 If any when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject to such Restriction Period (or if and when the restrictions applicable to Restricted Stock are removed pursuant to a Company Transaction or otherwise), any certificates for such Shares will be replaced with new certificates, without the restrictive legend applicable to such lapsed restrictions, and such new certificates will be promptly delivered to the Participant, the Participant’s representative (if the Participant has suffered a Disability), or the Participant’s estate or heir (if the Participant has died).

 

D.                                    Repurchase Rights. Should the Participant cease Service while holding shares of Restricted Stock, the Company shall have the right to repurchase the Common Stock, in the case of vested shares, at Fair Market Value and, in the case of unvested shares, the lesser of the original purchase price paid per share or Fair Market Value. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right.

 

E.                                     Shareholder Agreements. Each Participant shall, upon and as a condition to the receipt of any shares of Common Stock issued pursuant to any Award granted under the Plan, become a party to an Investor Rights Agreement, Right of First Refusal and Co-Sale Agreement and Registration Rights Agreement dated as of June 14, 2010 between the Company and holders

 

7

 

of capital stock in the Company party thereto, as amended and/or restated from time to time, and agree to be bound by all terms and conditions set forth therein.

 

F.                                      Limited Transferability of Shares. Until such time as the Common Stock is first registered under Section 12(g) of the 1934 Act, the Board shall have the right to consent in its absolute discretion to any proposed disposition by the Participant (or any successor in interest) of any shares of Common Stock issued under the Plan.

 

G.                                    Withholding. The Company’s obligation to deliver shares of Common Stock upon the exercise of any Award granted under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements.

 

IV.                               COMPANY TRANSACTION

 

A.                                    In the event of any Company Transaction, each outstanding Award shall be (i) assumed by the successor entity (or parent thereof), (ii) in the case of an option, replaced with a comparable option to purchase shares of the successor entity (or parent thereof) or with a cash incentive program of the successor entity which preserves the spread existing on the unvested option shares at the time of the Company Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to such option, or (iii) in the case of Restricted Stock, cancelled in exchange for restricted stock with respect to the capital stock of the successor entity (or parent thereof). The determination of option comparability under clause (ii) above shall be made by the Plan Administrator, and its determination shall be final, binding and conclusive. However, to the extent the successor entity (or parent thereof) does not effect such assumption or replacement, each outstanding option shall automatically accelerate so that each such option shall, immediately prior to the effective date of the Company Transaction, become fully exercisable for all of the shares of Common Stock at the time subject to such option and may be exercised for any or all of those shares as fully-vested shares of Common Stock.

 

B.                                    All outstanding repurchase rights shall also be assigned to the successor entity (or parent thereof) in the event of any Company Transaction. However, to the extent the successor entity (or parent thereof) does not accept such assignment, the outstanding repurchase rights shall terminate automatically, and the shares of Common Stock subject to those terminated rights shall immediately vest in full, upon the consummation of the Company Transaction, except to the extent such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued.

 

C.                                    Unless otherwise provided by the Plan Administrator, immediately following the consummation of the Company Transaction, all outstanding options shall terminate and cease to be outstanding, except to the extent assumed by the successor entity (or parent thereof).

 

D.                                    Each option which is assumed in connection with a Company Transaction shall be appropriately adjusted, immediately after such Company Transaction, to apply to the number and class of securities which would have been issuable to the Participant in consummation of such Company Transaction, had the option been exercised immediately prior to such Company Transaction. Appropriate adjustments shall also be made to (i) the number and class of securities

 

8

 

available for issuance under the Plan following the consummation of such Company Transaction and (ii) the exercise price payable per share under each outstanding option, provided the aggregate exercise price payable for such securities shall remain the same.

 

E.                                     The Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while an option remains outstanding, to provide for the automatic acceleration, in whole or in part, of one or more outstanding options (and the automatic termination, in whole or in part, of one or more outstanding repurchase rights, with the immediate vesting of the shares of Common Stock subject to those terminated rights) upon the occurrence of a Company Transaction, whether or not those options are to be assumed or replaced (or those repurchase rights are to be assigned) in the Company Transaction. In the case of Restricted Stock, the Plan Administrator shall have the discretion to cause any or all outstanding Restricted Stock to become non-forfeitable, in whole or in part, upon the occurrence of a Company Transaction, whether or not the Restricted Stock is to be assumed or exchanged in the Company Transaction.

 

F.                                      The Plan Administrator shall also have full power and authority to grant options under the Plan which will automatically accelerate in whole or in part should the Participant’s Service subsequently terminate by reason of an Involuntary Termination within a designated period (not to exceed twelve (12) months) following the effective date of any Company Transaction in which those options are assumed or replaced and do not otherwise accelerate. Any options so accelerated shall remain exercisable for fully- vested shares until the earlier of (i) the expiration of the option term or (ii) the expiration of the ninety (90) day period measured from the effective date of the Involuntary Termination. In addition, the Plan Administrator may provide that one or more of the Company’s outstanding repurchase rights with respect to shares held by the Participant at the time of such Involuntary Termination shall immediately terminate in whole or in part, and the shares subject to those terminated rights shall accordingly vest. In the case of Restricted Stock, the Plan Administrator shall also have full power and authority to grant Restricted Stock under the Plan which will automatically become non-forfeitable in whole or in part should the Participant’s Service subsequently terminate by reason of an Involuntary Termination within a designated period (not to exceed twelve (12) months) following the effective date of any Company Transaction in which Restricted Stock is not assumed or exchanged and does not otherwise become non-forfeitable.

 

G.                                    The portion of any Incentive Option accelerated in connection with a Company Transaction shall remain exercisable as an Incentive Option only to the extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non- Statutory Option under the Federal tax laws.

 

H.                                   The grant of Awards under the Plan shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

9

 

V.                                    CANCELLATION AND REGRANT OF OPTIONS

 

The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the affected option holders, the cancellation of any or all outstanding options under the Plan and to grant in substitution therefor new options covering the same or different number of shares of Common Stock but with an exercise price per share based on the Fair Market Value per share of Common Stock on the new option grant date.

 

ARTICLE THREE

 

MISCELLANEOUS

 

I.                                        FINANCING

 

The Plan Administrator may permit any Participant to pay the option exercise price for shares issued to such person under the Plan by delivering a promissory note that constitutes valid consideration under the applicable state law payable in one or more installments. The terms of any such promissory note (including the interest rate and the terms of repayment) shall be established by the Plan Administrator in its sole discretion. Promissory notes may be authorized with or without security or collateral. In all events, the maximum credit available to the Participant may not exceed the sum of (i) the aggregate option exercise price payable for the purchased shares (less the par value of such shares) plus (ii) any Federal, state and local income and employment tax liability incurred by the Participant in connection with the option exercise.

 

II.                                   EFFECTIVE DATE AND TERM OF PLAN

 

A.                                    The Plan shall become effective when adopted by the Board, but no option granted under the Plan may be exercised, and no shares shall be issued under the Plan, until the Plan is approved by the Company’s shareholders. If such shareholder approval is not obtained within twelve (12) months after the date of the Board’s adoption of the Plan, then all options previously granted under the Plan shall terminate and cease to be outstanding, and no further options shall be granted and no shares shall be issued under the Plan. Subject to such limitation, the Plan Administrator may grant options and issue shares under the Plan at any time after the effective date of the Plan and before the date fixed herein for termination of the Plan.

 

B.                                    The Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured from the date the Plan is adopted by the Board, (ii) the date on which all shares available for issuance under the Plan shall have been issued or (iii) the termination of all outstanding Awards in connection with a Company Transaction. Upon such Plan termination, all options and unvested share issuances outstanding under the Plan shall continue to have full force and effect in accordance with the provisions of the documents evidencing such options or issuances.

 

III.                              AMENDMENT OF THE PLAN

 

A.                                    The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall

 

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adversely affect the rights and obligations with respect to Awards at the time outstanding under the Plan unless the Participant consents to such amendment or modification.

 

B.                                    Options to purchase shares of Common Stock may be granted under the Plan and shares of Common Stock may be issued under the Plan that are in each instance in excess of the number of shares then available for issuance under the Plan, provided any excess shares actually issued under the Plan are held in escrow until there is obtained shareholder approval of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such shareholder approval is not obtained with twelve (12) months after the date the first such excess issuances are made, then (i) any unexercised options granted on the basis of such excess shares shall terminate and cease to be outstanding, (ii) any outstanding Restricted Stock granted on the basis of such excess shares shall be forfeited, and (iii) the Company shall promptly refund to the Participants the exercise price paid for any excess shares issued under the Plan and held in escrow, together with interest (at the applicable Short-Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding.

 

IV.                               USE OF PROCEEDS

 

Any cash proceeds received by the Company from the sale of Common Stock under the Plan shall be used for general corporate purposes.

 

V.                                    WITHHOLDING

 

The Company’s obligation to deliver shares of Common Stock pursuant to any Award or upon the issuance or vesting of any shares issued under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements.

 

VI.                               REGULATORY APPROVALS

 

The implementation of the Plan, the granting of any Awards under the Plan and the issuance of any shares of Common Stock pursuant to any Award shall be subject to the Company’s procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the Awards granted under it and the shares of Common Stock issued pursuant to it.

 

VII.                          NO EMPLOYMENT OR SERVICE RIGHTS

 

Nothing in the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary employing or retaining such person) or of the Participant, which rights are hereby expressly reserved by each, to terminate such person’s Service at any time for any reason, with or without cause.

 

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APPENDIX

 

The following definitions shall be in effect under the Plan:

 

A.                                    Award shall mean a grant of options to purchase Common Stock or the issuance of Restricted Stock pursuant to the provisions of this Plan.

 

B.                                    Board shall mean the Company’s Board of Directors.

 

C.                                    Code shall mean the Internal Revenue Code of 1986, as amended.

 

D.                                    Committee shall mean a committee of two (2) or more Board members appointed by the Board to exercise one or more administrative functions under the Plan.

 

E.                                     Common Stock shall mean shares of the Company’s common stock, par value $0.0001 per share.

 

F.                                      Company Transaction shall mean any of the following transactions:

 

(1)                                 Any “person,” as such term is used in Sections 13(d) and 14(d) of the 1934 Act (other than Accretive II, L.P., any of its affiliates, the Company or any Subsidiary, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any Subsidiary), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the 1934 Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of either (a) the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Board or (b) the then outstanding shares of Common Stock on an as converted basis; or

 

(2)                                 The stockholders of the Company shall approve (a) any consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the 1934 Act), directly or indirectly, shares representing in the aggregate more than fifty percent (50%) of the voting shares of the Company or the acquirer issuing cash or securities in the consolidation or merger (or of its ultimate parent company, if any), (b) any sale, lease, exclusive license, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company or (c) any plan or proposal for the liquidation or dissolution of the Company.

 

G.                                    Company shall mean Accolade, Inc., a Delaware corporation.

 

H.                                   Disability shall mean that if, as a result of the Participant’s incapacity due to physical or mental illness, the Participant shall have been absent from his duties with the Company on a full-time basis for three (3) consecutive months or an aggregate of 120 days in any twenty-four month period, and within thirty (30) days after written notice of termination is

 

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given, the Participant shall not have returned to the full-time performance of the Participant’s duties.

 

I.                                        Employee shall mean an individual who is in the employ of the Company (or any Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

 

J.                                        Equity Grant Program shall mean the equity grant program in effect under the Plan.

 

K.                                    Exercise Date shall mean the date on which the Company shall have received written notice of the option exercise.

 

L.                                     Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

 

(1)                                 If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. If there is no closing selling price for the Common Stock on the date on question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

(2)                                 If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

(3)                                 If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate.

 

M.                                 Good Reason shall mean that an individual has complied with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events: (a) a substantial diminution or other substantive adverse change, not consented to by such individual, in the nature or scope of such individual’s responsibilities, authorities, powers, functions or duties; (b) such individual is removed from his or her position other than for Misconduct; (c) an involuntary reduction in the base salary of such individual except for across-the-board reductions similarly affecting all or substantially all of the Company’s (or any Subsidiary’s) employees; or (d) a breach by the Company of any of its other material obligations under any employment agreement to which such individual is a party and the failure of the Company to cure such breach within thirty (30) days after written notice thereof by such individual; or (e) the involuntary relocation of the Company’s offices at which the individual is principally employed or the

 

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involuntary relocation of the offices of individual’s primary workgroup to a location more than fifty (50) miles from such offices, or the requirement by the Company that individual be based anywhere other than the Company’s offices at such location on an extended basis, except for required travel on the Company’s business to an extent substantially consistent with the individual’s travel obligations. “Good Reason Process” shall mean that (i) such individual reasonably determines in good faith that a “Good Reason” event has occurred; (ii) such individual notifies the Company in writing of the occurrence of the Good Reason event; (iii) such individual cooperates in good faith with the Company’s efforts, for a period not less than ninety (90) days following such notice, to modify such individual’s employment situation in a manner acceptable to such individual and the Company; and (iv) notwithstanding such efforts, one or more of the Good Reason events continues to exist and has not been modified in a manner reasonably acceptable to such individual. If the Company cures the Good Reason event in a manner reasonably acceptable to such individual during the ninety (90) day period, Good Reason shall be deemed not to have occurred.

 

N.                                    Incentive Option shall mean an option which satisfies the requirements of Code Section 422.

 

O.                                    Involuntary Termination shall mean the termination of the Service of any individual which occurs by reason of:

 

(1)                                 Such individual’s involuntary dismissal or discharge by the Company (or any Subsidiary) for reasons other than Misconduct, or

 

(2)                                 Such individual’s voluntary resignation for Good Reason.

 

P.                                      Misconduct shall mean each of the following actions, failures and events by or affecting the Participant (as determined in the reasonable opinion of the Board): (1) breach of confidentiality, nonsolicitation or noncompetition obligations by the Participant or Participant or other material breach by the Participant of any material provision of any employment agreement to which the Participant is a party or the formed policies of the Company (or any Subsidiary) applicable to the Participant which has not been cured by the Participant within thirty (30) days after receipt by the Participant of written notice from the Company of such breach; (2) gross negligence or willful misconduct of the Participant in connection with the performance of his or her duties, or the Participant’s willful refusal to perform any of her material duties or responsibilities which has not been cured by Participant within thirty (30) days after receipt by Participant of written notice from the Company of such conduct and/or refusal; (3) the Participant’s misappropriation for personal use of assets or business opportunities of the Company (or any Subsidiary); (4) the Participant’s embezzlement of the Company’s (or any Subsidiary’s) funds or property, or fraud on the part of the Participant or Participant; (5) the Participant’s conviction of, or plea of no contest to, a felony or any other crime which in the Board’s sole opinion renders the Participant unfit to serve the Company (or any Subsidiary) as contemplated herein; or (6) a knowing misrepresentation of a material fact made by the Participant to the Board, with the intention of misleading the Board.

 

Q.                                    1934 Act shall mean the Securities Exchange Act of 1934, as amended.

 

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R.                                    Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422.

 

S.                                      Participant shall mean any person to whom an Award is granted under the Plan.

 

T.                                     Plan shall mean the Company’s Amended and Restated Equity Incentive Plan, as set forth in this document.

 

U.                                    Plan Administrator shall mean either the Board or the Committee, to the extent the Committee is at the time responsible for the administration of the Plan.

 

V.                                    Restricted Stock shall mean shares of Common Stock that are subject to restrictions pursuant to Section III of Article Two.

 

W.                                 Service shall mean the provision of services to the Company (or any Subsidiary) by a person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant.

 

X.                                    Stock Exchange shall mean either the American Stock Exchange or the New York Stock Exchange.

 

Y.                                    Subsidiary shall mean any entity (other than the Company) in an unbroken chain or entities beginning with the Company, provided each entity (other than the last entity) in the unbroken chain owns, at the time of the determination, securities possessing fifty percent (50%) or more of the total combined voting power of all classes of equity securities in one of the other entities in such chain.

 

Z.                                     10% Shareholders shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company (or any Subsidiary).

 

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ACCOLADE, INC.

NOTICE OF GRANT OF STOCK OPTION

 

Notice is hereby given of the following option grant (the “Option”) to purchase shares of Common Stock of Accolade, Inc. (the “Company”):

 

	
Optionee:
    	
Optionee Name
    
	
 
    	
 
    
	
Grant Date:
    	
Month XX, 20XX
    
	
 
    	
 
    
	
Vesting   Commencement Date:
    	
Month XX, 20XX
    
	
 
    	
 
    
	
Exercise Price:
    	
$X.XX per Option   Share
    
	
 
    	
 
    
	
Number of Option   Shares:
    	
X,XXX
    
	
 
    	
 
    
	
Expiration Date:
    	
The 10th Anniversary of the Grant Date
    
	
 
    	
 
    
	
Type of Option:
    	
x    Incentive Stock Option
    
	
 
    	
 
    
	
 
    	
o    Non-Statutory Stock Option
    
	
 
    	
 
    
	
Date   Exercisable:
    	
Month XX, 20XX
    

 

Vesting Schedule:                Twenty-five percent (25%) of the shares subject to the Option shall vest on the first anniversary of the date of grant, and the remainder of the shares subject to the Option shall vest in equal installments of 1/48 of the shares subject to the initial Option grant on a monthly basis thereafter over the next three years.

 

Optionee understands and agrees that the Option is granted subject to and in accordance with the terms of the Accolade, Inc. Amended and Restated 2007 Stock Option Plan (the “Plan”). Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Stock Option Agreement attached hereto as Exhibit A. Optionee understands that any Option Shares purchased under the Option will be subject to the terms set forth in the Stock Purchase Agreement attached hereto as Exhibit B. Both the Company and Optionee agree and acknowledge that the Option Shares are granted solely in consideration for future services to be provided by Optionee subsequent to the date hereof.

 

Optionee hereby acknowledges receipt of a copy of the Plan in the form attached hereto as Exhibit C.

 

 

REPURCHASE RIGHTS. OPTIONEE HEREBY AGREES THAT ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO CERTAIN REPURCHASE RIGHTS EXERCISABLE BY THE COMPANY AND ITS ASSIGNS. THE TERMS OF SUCH RIGHTS ARE SPECIFIED IN THE ATTACHED STOCK PURCHASE AGREEMENT.

 

No Employment or Service Contract. Nothing in this Notice or in the attached Stock Option Agreement or Plan shall confer upon Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for any reason, with or without cause.

 

Definitions. All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the attached Stock Option Agreement.

 

	
Dated: Month XX, 20XX
    	
ACCOLADE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Rajeev Singh
    
	
 
    	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
OPTIONEE
    
	
 
    	
Optionee Name
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    
						

 

 

ACCOLADE, INC.

STOCK OPTION AGREEMENT

 

RECITALS

 

A.                                    The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board or the board of directors of any Subsidiary and consultants and other independent advisors who provide services to the Company (or any Subsidiary).

 

B.                                    Optionee is to render valuable services to the Company (or a Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Company’s grant of an option to Optionee.

 

C.                                    All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix.

 

AGREEMENT

 

NOW, THEREFORE, it is hereby agreed as follows:

 

1.                                      Grant of Option. The Company hereby grants to Optionee, as of the Grant Date, an option to purchase up to the number of Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at the Exercise Price.

 

2.                                      Option Term. This option shall have a term of ten (10) years measured from the Grant Date and shall accordingly expire at the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 17.

 

3.                                      Limited Transferability. This option shall be neither transferable nor assignable by Optionee other than by will or by the laws of descent and distribution following Optionee’s death and may be exercised, during Optionee’s lifetime, only by Optionee.

 

4.                                      Dates of Exercise. This option shall become exercisable for the Option Shares in one or more installments as specified in the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term under Paragraph 5 or 17.

 

5.                                      Cessation of Service. The option term specified in Paragraph 2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable:

 

(a)                                 Should Optionee cease to remain in Service for any reason (other than death or Disability) while this option is outstanding, then Optionee shall have a period of forty-

 

 

five (45) days (commencing with the date of such cessation of Service) during which to exercise this option, but in no event shall this option be exercisable at any time after the Expiration Date.

 

(b)                                 Should Optionee die while this option is outstanding, then the personal representative of Optionee’s estate or the person or persons to whom the option is transferred pursuant to Optionee’s will or in accordance with the laws of descent and distribution shall have the right to exercise this option. Such right shall lapse and this option shall cease to be outstanding upon the earlier of (i) the expiration of the one hundred eighty (180) day period measured from the date of Optionee’s death or (ii) the Expiration Date.

 

(c)                                  Should Optionee cease Service by reason of Disability while this option is outstanding, then Optionee shall have a period of one hundred eighty (180) days (commencing with the date of such cessation of Service) during which to exercise this option. In no event shall this option be exercisable at any time after the Expiration Date.

 

(d)                                 During the limited period of post-Service exercisability, this option may not be exercised in the aggregate for more than the number of vested Option Shares for which the option is exercisable at the time of Optionee’s cessation of Service. Upon the expiration of such limited exercise period or (if earlier) upon the Expiration Date, this option shall terminate and cease to be outstanding for any vested Option Shares for which the option has not been exercised. To the extent Optionee is not vested in the Option Shares at the time of Optionee’s cessation of Service, this option shall immediately terminate and cease to be outstanding with respect to those shares.

 

(e)                                  In the event of a Company Transaction, the provisions of Paragraph 6 shall govern the period for which this option is to remain exercisable following Optionee’s cessation of Service and shall supersede any provisions to the contrary in this paragraph.

 

6.                                      Company Transaction.

 

(a)                                 In the event of any Company Transaction, this option shall be (i) assumed by the successor entity (or parent thereof) or (ii) replaced with a comparable option to purchase shares of the successor entity (or parent thereof) or with a cash incentive program of the successor entity which preserves the spread existing on the unvested option shares at the time of the Company Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to such option. However, to the extent the successor entity (or parent thereof) does not effect such assumption or replacement, this option shall automatically accelerate, and the Company’s repurchase rights with respect to the Option Shares shall terminate, so that each such option shall, immediately prior to the effective date of the Company Transaction, become fully exercisable for all of the shares of Common Stock at the time subject to such option and may be exercised for any or all of those shares as fully-vested shares of Common Stock.

 

(b)                                 All outstanding repurchase rights shall also be assigned to the successor entity (or parent thereof) in the event of any Company Transaction. However, to the extent the successor entity (or parent thereof) does not accept such assignment, the outstanding repurchase rights shall terminate automatically, and the shares of Common Stock subject to those terminated rights shall immediately vest in full, upon the consummation of the Company Transaction,

 

2

 

except to the extent such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued.

 

(c)                                  Immediately following the consummation of the Company Transaction, all outstanding options shall terminate and cease to be outstanding, except to the extent assumed by the successor entity (or parent thereof).

 

(d)                                 If this option is assumed in connection with a Company Transaction, then this option shall be appropriately adjusted, immediately after such Company Transaction, to apply to the number and class of securities which would have been issuable to Optionee in consummation of such Company Transaction had the option been exercised immediately prior to such Company Transaction, and appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same.

 

(e)                                  This Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

7.                                      Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder.

 

8.                                      Shareholder Rights. The holder of this option shall not have any shareholder rights with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares and until such Option Shares have vested.

 

9.                                      Manner of Exercising Option.

 

(a)                                 In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions:

 

(i)                                     Execute and deliver to the Company a Purchase Agreement for the Option Shares for which the option is exercised.

 

(ii)                                  Pay the aggregate Exercise Price for the Option Shares in cash or check made payable to the Company.

 

(b)                                 Should the Common Stock be registered under Section 12(g) of the 1934 Act at the time the option is exercised, then the Exercise Price may also be paid as follows:

 

(i)                                     in shares of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary

 

3

 

to avoid a charge to the Company’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date; or

 

(ii)                                  to the extent the option is exercised for vested Option Shares, through a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall concurrently provide irrevocable written instructions (a) to a Company-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Company by reason of such exercise and (b) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale.

 

(c)                                  Except to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price must accompany the Purchase Agreement delivered to the Company in connection with the option exercise and the Optionee must:

 

(i)                                     Furnish to the Company appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option.

 

(ii)                                  execute and deliver to the Company such written representations as may be requested by the Company in order for it to comply with the applicable requirements of Federal and state securities laws.

 

(iii)                               make appropriate arrangements with the Company (or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state and local income and employment tax withholding requirements applicable to the option exercise.

 

(d)                                 As soon as practical after the Exercise Date, the Company shall issue to or on behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto.

 

(e)                                  In no event may this option be exercised for any fractional shares.

 

10.                               REPURCHASE RIGHTS. ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF THIS OPTION SHALL BE SUBJECT TO CERTAIN RIGHTS OF THE COMPANY AND ITS ASSIGNS TO REPURCHASE THOSE SHARES IN ACCORDANCE WITH THE TERMS SPECIFIED IN THE PURCHASE AGREEMENT.

 

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11.                               Compliance with Laws and Regulations.

 

(a)                                 The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Company and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock may be listed for trading at the time of such exercise and issuance.

 

(b)                                 The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use its best efforts to obtain all such approvals.

 

12.                               Successors and Assigns. Except to the extent otherwise provided in Paragraphs 3 and 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s assigns and the legal representatives, heirs and legatees of Optionee’s estate.

 

13.                               Notices. Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

 

14.                               Financing. The Plan Administrator may, in its absolute discretion and without any obligation to do so, permit Optionee to pay the Exercise Price for the purchased Option Shares by delivering a promissory note that constitutes valid consideration under applicable state law. The terms of any such promissory note (including the interest rate, the requirements for collateral and the terms of repayment) shall be established by the Plan Administrator in its sole discretion.

 

15.                               Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option.

 

16.                               Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without resort to that State’s conflict-of-laws rules.

 

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17.                               Shareholder Approval.

 

(a)                                 The grant of this option is subject to approval of the Plan by the Company’s shareholders within twelve (12) months after the adoption of the Plan by the Board. Notwithstanding any provision of this Agreement to the contrary, this option may not be exercised in whole or in part until such shareholder approval is obtained. In the event that such shareholder approval is not obtained, then this option shall terminate in its entirety and Optionee shall have no further rights to acquire any Option Shares hereunder.

 

(b)                                 If the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may without shareholder approval be issued under the Plan, then this option shall be void with respect to such excess shares, unless shareholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan.

 

18.                               Additional Terms Applicable to an Incentive Option. In the event this option is designated an Incentive Option in the Grant Notice, the following terms and conditions shall also apply to the grant:

 

(a)                                 This option shall cease to qualify for favorable tax treatment as an Incentive Option if (and to the extent) this option is exercised for one or more Option Shares: (i) more than three (3) months after the date Optionee ceases to be an Employee for any reason other than death or Disability or (ii) more than twelve (12) months after the date Optionee ceases to be an Employee by reason of Disability.

 

(b)                                 This option shall not become exercisable in the calendar year in which granted if (and to the extent) the aggregate Fair Market Value (determined at the Grant Date) of the Common Stock for which this option would otherwise first become exercisable in such calendar year would, when added to the aggregate value (determined as of the respective date or dates of grant) of the Common Stock and any other securities for which one or more other Incentive Options granted to Optionee prior to the Grant Date (whether under the Plan or any other option plan of the Company or any Subsidiary) first become exercisable during the same calendar year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. To the extent the exercisability of this option is deferred by reason of the foregoing limitation, the deferred portion shall become exercisable in the first calendar year or years thereafter in which the One Hundred Thousand Dollar ($100,000) limitation of this Paragraph 18(b) would not be contravened, but such deferral shall in all events end immediately prior to the effective date of a Company Transaction in which this option is not to be assumed, whereupon the option shall become immediately exercisable as a Non-Statutory Option for the deferred portion of the Option Shares.

 

(c)                                  Should Optionee hold, in addition to this option, one or more other options to purchase Common Stock which become exercisable for the first time in the same calendar year as this option, then the foregoing limitations on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted.

 

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APPENDIX

 

The following definitions shall be effect under the Agreement:

 

A.                                    Agreement shall mean this Option Agreement.

 

B.                                    Board shall mean the Company’s Board of Directors.

 

C.                                    Code shall mean the Internal Revenue Code of 1986, as amended.

 

D.                                    Common Stock shall mean shares of the Company’s common stock, par value $0.0001 per share.

 

E.                                     Company Transaction shall mean any of the following transactions:

 

1.                                      Any “person,” as such term is used in Sections 13(d) and 14(d) of the 1934 Act (other than Accretive II, L.P., any of its affiliates, the Company or any Subsidiary, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any Subsidiary), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the 1934 Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of either (a) the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Board or (b) the then outstanding shares of Common Stock on an as converted basis; or

 

2.                                      The stockholders of the Company shall approve (a) any consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the 1934 Act), directly or indirectly, shares representing in the aggregate more than fifty percent (50%) of the voting shares of the Company or the acquirer issuing cash or securities in the consolidation or merger (or of its ultimate parent company, if any), (b) any sale, lease, exclusive license, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company or (c) any plan or proposal for the liquidation or dissolution of the Company.

 

F.                                      Company shall mean Accolade, Inc., a Delaware corporation.

 

G.                                    Disability shall mean that if, as a result of the Optionee’s incapacity due to physical or mental illness, Optionee shall have been absent from his duties with the Company on a full-time basis for three (3) consecutive months or an aggregate of 120 days in any twenty-four month period, and within thirty (30) days after written notice of termination is given, Optionee shall not have returned to the full-time performance of Optionee’s duties.

 

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H.                                   Employee shall mean an individual who is in the employ of the Company (or any Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

 

I.                                        Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of the Agreement.

 

J.                                        Exercise Price shall mean the exercise price per share as specified in the Grant Notice.

 

K.                                    Expiration Date shall mean the date on which the option expires as specified in the Grant Notice.

 

L.                                     Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

 

1.                                      If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as the price is reported by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

2.                                      If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

3.                                      If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate.

 

M.                                 Grant Date shall mean the date of grant of the option as specified in the Grant Notice.

 

N.                                    Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby.

 

O.                                    Incentive Option shall mean an option which satisfies the requirements of Code Section 422.

 

P.                                      1934 Act shall mean the Securities Exchange Act of 1934, as amended.

 

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Q.                                    Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422.

 

R.                                    Option Shares shall mean the number of shares of Common Stock subject to the option.

 

S.                                      Optionee shall mean the person to whom the option is granted as specified in the Grant Notice.

 

T.                                     Plan shall mean the Company’s Amended and Restated 2007 Stock Option Plan.

 

U.                                    Plan Administrator shall mean either the Board or a committee of Board members, to the extent the committee is at the time responsible for the administration of the Plan.

 

V.                                    Purchase Agreement shall mean the stock purchase agreement in substantially the form of Exhibit B to the Grant Notice.

 

W.                                 Service shall mean the Optionee’s performance of services for the Company (or any Subsidiary) in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor.

 

X.                                    Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange.

 

Y.                                    Subsidiary shall mean any entity (other than the Company) in an unbroken chain of entities beginning with the Company, provided each entity (other than the last entity) in the unbroken chain owns, at the time of the determination, securities possessing fifty percent (50%) or more of the total combined voting power of all classes of equity securities in one of the other entities in such chain.

 

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Exhibit B

 

ACCOLADE, INC.

 

STOCK PURCHASE AGREEMENT

 

(FULLY VESTED OPTION EXERCISES)

 

This STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of this          day of                      , 20     by and among Accolade, Inc., a Delaware corporation, and                            , an individual (“Optionee”).

 

All capitalized terms in this Agreement shall have the meaning assigned to them in this Agreement or in the attached Appendix.

 

A.                                    EXERCISE OF OPTION

 

1.                                      Exercise. Optionee hereby purchases                         shares of Common Stock (the “Purchased Shares”) pursuant to that certain option (the “Option”) granted Optionee on the            day of                   ,              (the “Grant Date”) to purchase up to shares of Common Stock under the Plan (the “Purchased Shares”) at the exercise price of $          per share (the “Exercise Price”).

 

2.                                      Payment. Concurrently with the delivery of this Agreement to the Company, Optionee shall pay the Exercise Price for the Purchased Shares in accordance with the provisions of the Option Agreement and shall deliver whatever additional documents may be required by the Option Agreement as a condition for exercise.

 

3.                                      Shareholder Rights. Until such time as the Company exercises the Repurchase Right, Optionee (or any successor in interest) shall have all the rights of a shareholder (including dividend, liquidation and voting rights) with respect to the Purchased Shares, subject, however, to the transfer restrictions of Articles B and C.

 

B.                                    SECURITIES LAW COMPLIANCE

 

1.                                      Restricted Securities. The Purchased Shares have not been registered under the 1933 Act and are being issued to Optionee in reliance upon the exemption from such registration provided by SEC Rule 701 for securities issuances under compensatory benefit plans such as the Plan. Optionee hereby confirms that Optionee has been informed that the Purchased Shares are restricted securities under the 1933 Act and may not be resold or transferred unless the Purchased Shares are first registered under the Federal securities laws or unless an exemption from such registration is available. Accordingly, Optionee hereby acknowledges that Optionee is prepared to hold the Purchased Shares for an indefinite period and that Optionee is aware that SEC Rule 144 issued under the 1933 Act which exempts certain resales of unrestricted securities is not presently available to exempt the resale of the Purchased Shares from the registration requirements of the 1933 Act.

 

2.                                      Restrictions on Disposition of Purchased Shares. Optionee shall make no disposition of the Purchased Shares (other than a Permitted Transfer) unless and until there is compliance with all of the following requirements:

 

 

(a)                                 Optionee shall have provided the Company with a written summary of the terms and conditions of the proposed disposition.

 

(b)                                 Optionee shall have complied with all requirements of this Agreement applicable to the disposition of the Purchased Shares.

 

(c)                                  Optionee shall have complied with all requirements of the Right of First Refusal and Co-Sale Agreement dated as of June 14, 2010, as amended and/or restated from time to time applicable to the disposition of the Purchased Shares.

 

(d)                                 Optionee shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that (i) the proposed disposition does not require registration of the Purchased Shares under the 1933 Act or (ii) all appropriate action necessary for compliance with the registration requirements of the 1933 Act or any exemption from registration available under the 1933 Act (including Rule 144) has been taken.

 

The Company shall not be required (i) to transfer on its books any Purchased Shares which have been sold or transferred in violation of the provisions of this Agreement or (ii) to treat as the owner of the Purchased Shares, or otherwise to accord voting, dividend or liquidation rights to, any transferee to whom the Purchased Shares have been transferred in contravention of this Agreement.

 

3.                                      Restrictive Legends. The stock certificates for the Purchased Shares shall be endorsed with the following restrictive legends:

 

(a)                                 “The securities represented by this Certificate have not been registered under the Securities Act of 1933 or any other securities laws. These securities may not be sold, retransferred or otherwise disposed of in the absence of (1) an effective registration statement covering such securities under the Securities Act of 1933 and any other applicable securities laws, or (2) an opinion of counsel reasonably satisfactory to the Company that registration is not required.”

 

(b)                                 “The voting and sale, transfer, hypothecation, negotiation, pledge, assignment, encumbrance, or other disposition of this share certificate and the shares of Common Stock of the Company represented hereby are restricted by and are subject to all of the terms, conditions and provisions of a Stock Purchase Agreement. The shares of Common Stock of the Company represented by this Certificate are also subject to repurchase obligations under such Agreement. A copy of such Agreement may be obtained by appropriate parties upon written request to the Secretary of the Company.”

 

C.                                    TRANSFER RESTRICTIONS

 

1.                                      Restriction on Transfer. Except for any Permitted Transfer, Optionee shall not transfer, assign, encumber or otherwise dispose of any of the Purchased Shares without the consent of the Board (which may be granted or withheld in its absolute discretion).

 

2.                                      Transferee Obligations. Each person (other than the Company) to whom the Purchased Shares are transferred by means of a Permitted Transfer must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Agreement and that the transferred shares are subject to (i) the Repurchase Right, and (ii) the transfer restrictions contained in this Article C

 

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(including the Market Stand-Off), to the same extent such shares would be so subject if retained by Optionee.

 

3.                                      Approved Sale. If at any time after the date of this Agreement the Board approves a Company Transaction (an “Approved Sale”), Owner will consent to and agrees to raise no objections against, such Approved Sale. If the Approved Sale is structured as a (i) merger or consolidation, Owner will waive any dissenter’s rights, appraisal rights or similar rights in connection with such merger or consolidation or (ii) a sale of stock (including by recapitalization, consolidation, reorganization, combination or otherwise), Owner will agree to sell all of the Purchased Shares and all other securities of the Company held by him on the terms and conditions approved by the Board. Owner will take all necessary or desirable actions (including the exercise of options and warrants) and execute and deliver all documents in connection with consummation of the Approved Sale as requested by the Board. The proceeds of any Approved Sale will be distributed in accordance with the applicable provisions of the Company’s Certificate of Incorporation. Owner will join in any indemnification or other obligations undertaken by the sellers of the Owner’s outstanding capital stock in connection with any Approved Sale; provided, that Owner shall not be liable or obligated for any amount in excess of the net proceeds received by Owner in connection with the Approved Sale. In connection with any Approved Sale, Owner hereby appoints the Secretary of the Company as its true and lawful proxy and attorney in fact, with full power of substitution, to transfer Owner’s Purchased Shares and other securities pursuant to the terms of such Approved Sale and to execute any purchase agreement or other documentation required in connection therewith. The powers granted herein shall be deemed to be coupled with an interest, shall be irrevocable and shall survive the death or incompetency of Owner.

 

4.                                      Market Stand-Off.

 

(a)                                 In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the 1933 Act, including the Company’s initial public offering, Owner shall not sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer for value or otherwise agree to engage in any of the foregoing transactions with respect to, any Purchased Shares without the prior written consent of the Company or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for such period of time from and after the effective date of the final prospectus for the offering as may be requested by the Company or such underwriters. In no event, however, shall such period exceed one hundred eighty (180) days.

 

(b)                                 Owner shall be subject to the Market Stand-Off provided and only if the officers and directors of the Company are also subject to similar restrictions.

 

(c)                                  Any new, substituted or additional securities which are by reason of any Recapitalization or Reorganization distributed with respect to the Purchased Shares shall be immediately subject to the Market Stand-Off, to the same extent the Purchased Shares are at such time covered by such provisions.

 

(d)                                 In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Purchased Shares until the end of the applicable stand-off period.

 

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D.                                    REPURCHASE RIGHT

 

1.                                      Grant. The Company is hereby granted the right (the “Repurchase Right”), exercisable at any time during the three hundred sixty-five (365) day period following the date Optionee ceases for any reason to remain in Service, to repurchase at the Fair Market Value all or any portion of the Purchased Shares.

 

2.                                      Exercise of the Repurchase Right. The Repurchase Right shall be exercisable by written notice delivered to each Owner of the Purchased Shares prior to the expiration of the three hundred sixty five (365) day exercise period. The notice shall indicate the number of Purchased Shares to be repurchased and the date on which the repurchase is to be effected, such date to be not more than thirty (30) days after the date of such notice. The certificates representing the Purchased Shares to be repurchased shall be delivered to the Company prior to the close of business on the date specified for the repurchase. Concurrently with the receipt of such certificates, the Company shall pay to Owner, in cash or cash equivalents (including the cancellation of any purchase-money indebtedness), an amount equal to the Fair Market Value of any Purchased Shares which are to be repurchased from Owner.

 

3.                                      Termination of the Repurchase Right. The Repurchase Right shall terminate with respect to any Purchased Shares for which it is not timely exercised under Article D.2. All Purchased Shares as to which the Repurchase Right lapses shall, however, remain subject to the transfer restrictions contained in Article C (including the Market Stand-Off).

 

4.                                      Aggregate Vesting Limitation. If the Option is exercised in more than one increment so that Optionee is a party to one or more other Stock Purchase Agreements (the “Prior Purchase Agreements”) which are executed prior to the date of this Agreement, then the total number of Purchased Shares as to which Optionee shall be deemed to have a fully-vested interest under this Agreement and all Prior Purchase Agreements shall not exceed in the aggregate the number of Purchased Shares in which Optionee would otherwise at the time be vested, in accordance with the Vesting Schedule, had all the Purchased Shares (including those acquired under the Prior Purchase Agreements) been acquired exclusively under this Agreement.

 

5.                                      Recapitalization. Any new, substituted or additional securities or other property (including cash paid other than as a regular cash dividend) which is by reason of any Recapitalization distributed with respect to any Purchased Shares shall be immediately subject to the Repurchase Right, but only to the extent the Purchased Shares are at the time covered by such right. Appropriate adjustments to reflect such distribution shall be made to the number and/or class of Purchased Shares subject to this Agreement and to the price per share to be paid upon the exercise of the Repurchase Right in order to reflect the effect of any such Recapitalization upon the Company’s capital structure; provided, however, that the aggregate purchase price shall remain the same.

 

6.                                      Company Transaction.

 

(a)                                 The Repurchase Right shall be assigned to the successor entity in any Company Transaction. However, to the extent the successor entity does not accept such assignment, the Repurchase Right shall lapse immediately prior to the consummation of the Company Transaction.

 

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(b)                                 To the extent the Repurchase Right remains in effect following a Company Transaction, such right shall apply to the new capital stock or other property (including any cash payments) received in exchange for the Purchased Shares in consummation of the Company Transaction, but only to the extent the Purchased Shares are at the time covered by such right. Appropriate adjustments shall be made to the price per share payable upon exercise of the Repurchase Right to reflect the effect of the Company Transaction upon the Company’s capital structure; provided, however, that the aggregate purchase price shall remain the same.

 

E.                                     TAX DISCLAIMER

 

1.                                      The acquisition of the Purchased Shares may result in adverse tax consequences. OPTIONEE SHOULD CONSULT WITH HIS OR HER TAX ADVISOR TO DETERMINE THE TAX CONSEQUENCES OF ACQUIRING THE PURCHASED SHARES. OPTIONEE ACKNOWLEDGES THAT IT IS OPTIONEE’S SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO OBTAIN SUCH TAX ADVICE AND COMPANY WILL NOT BE LIABLE FOR ANY TAX THAT MAY BE OWED BY OPTIONEE RESULTING FROM ACQUISITION OF THE PURCHASED SHARES GENERAL PROVISIONS.

 

F.                                      GENERAL PROVISIONS

 

1.                                      Assignment.

 

(a)                                 The Company may assign the Repurchase Right to any person or entity selected by the Board, including (without limitation) one or more shareholders of the Company.

 

(b)                                 If the assignee of the Repurchase Right is other than (i) a wholly owned subsidiary of the Company or (ii) the parent company owning one hundred percent (100%) of the Company’s outstanding capital stock, then such assignee must make a cash payment to the Company, upon the assignment of the Repurchase Right, in an amount equal to the excess (if any) of (i) the Fair Market Value of the Purchased Shares at the time subject to the assigned Repurchase Right over (ii) the aggregate repurchase price payable for the Purchased Shares.

 

2.                                      No Employment or Service Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for any reason, with or without cause.

 

3.                                      Notices. Any notice required to be given under this Agreement shall be in writing and shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, registered or certified, postage prepaid and properly addressed to the party entitled to such notice at the address indicated below such party’s signature line on this Agreement or at such other address at such party may designate by ten (10) days advance written notice under this paragraph to all other parties to this Agreement.

 

4.                                      No Waiver. The failure of the Company in any instance to exercise the Repurchase Right shall not constitute a waiver of any other repurchase rights that may subsequently arise under the provisions of this Agreement or any other agreement between the Company and Optionee or Optionee’s spouse. No waiver of any breach or condition of this Agreement shall be

 

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deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature.

 

5.                                      Cancellation of Shares. If the Company shall make available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such time, the person from whom such shares are to be repurchased shall no longer have any rights as a holder of such shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such shares shall be deemed purchased in accordance with the applicable provisions hereof, and the Company shall be deemed the owner and holder of such shares, whether or not the certificates therefor have been delivered as required by this Agreement.

 

6.                                      Escrow. In order to enable the Company to exercise the Repurchase Right, certificates for the Purchased Shares (together with an appropriate assignment in blank) shall be deposited and held in escrow with the Company and released within 30 days after termination of the Repurchase Right or surrendered upon exercise thereof by the Company.

 

G.                                    MISCELLANEOUS PROVISIONS

 

1.                                      Optionee Undertaking. Optionee hereby agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either Optionee or the Purchased Shares pursuant to the provisions of this Agreement.

 

2.                                      Agreement is Entire Contract. This Agreement constitutes the entire contract between the parties hereto with regard to the subject matter hereof. This Agreement is made pursuant to the provisions of the Plan and shall in all respects be construed in conformity with the terms of the Plan.

 

3.                                      Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware without resort to that State’s conflict- of-laws rules.

 

4.                                      Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

5.                                      Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns an upon Optionee, Optionee’s permitted assigns and the legal representatives, heirs and legatees of Optionee’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to join herein and be bound by the terms hereof.

 

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SIGNATURES

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first indicated above.

 

	
 
    	
ACCOLADE, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OPTIONEE
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

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STOCK PURCHASE AGREEMENT

APPENDIX

 

The following definitions shall be effect under the Agreement:

 

A.                                    Agreement shall mean this Stock Purchase Agreement.

 

B.                                    Board shall mean the Company’s Board of Directors.

 

C.                                    Code shall mean the Internal Revenue Code of 1986, as amended.

 

D.                                    Common Stock shall mean shares of the Company’s common stock, par value $0.0001 per share.

 

E.                                     Company Transaction shall mean and include any of the following transactions:

 

(a)                                 a transaction or series of related transactions involving the Company, or its securities, whether by merger, consolidation, purchase of shares of capital stock or other reorganization or combination or otherwise, in which the beneficial holders of the Company’s outstanding shares of capital stock immediately prior to such transaction cease to own, immediately after such transaction (in substantially the same proportions to one another as immediately prior to such transaction), securities representing at least fifty percent (50%) of the voting power of the entity surviving such transaction, or its ultimate parent entity, if any, in the same classes, series and amounts (excluding the issuances of shares of capital stock by the Company to third-party investors in bona fide financing transactions) or (b) the closing of any of the following transactions: (i) any sale, lease, exclusive license, exchange or other transfer (in one (1) transaction or a series of related transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company or (iii) any plan or proposal for the liquidation or dissolution of the Company.

 

F.                                      Company shall mean Accolade, Inc., a Delaware corporation.

 

G.                                    Disability shall mean that if, as a result of Optionee’s incapacity due to physical or mental illness, Optionee shall have been absent from his duties with the Company on a full-time basis for three (3) consecutive months or an aggregate of 120 days in any twenty-four month period, and within thirty (30) days after written notice of termination is given, Optionee shall not have returned to the full-time performance of Optionee’s duties.

 

H.                                   Exercise Price shall have the meaning assigned to such term in Article A.1.

 

I.                                        Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

 

1.                                      If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as the price is reported by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. If there is no closing selling price for the Common Stock

 

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on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

2.                                      If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

3.                                      If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate.

 

J.                                        Grant Date shall have the meaning assigned to such term in Article A. 1.

 

K.                                    Grant Notice shall mean the Notice of Grant of Stock Option pursuant to which Optionee has been informed of the basic terms of the Option.

 

L.                                     Incentive Option shall mean an option which satisfies the requirements of Code Section 422.

 

M.                                 Market Stand-Off shall mean the market stand-off restriction specified in Article C.3.

 

N.                                    1933 Act shall mean the Securities Act of 1933, as amended.

 

O.                                    Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422.

 

P.                                      Option shall have the meaning assigned to such term in Article A. 1.

 

Q.                                    Option Agreement shall mean all agreements and other documents evidencing the Option.

 

R.                                    Optionee shall mean the person to whom the Option is granted under the Plan.

 

S.                                      Owner shall mean Optionee and all subsequent holders of the Purchased Shares who derive their claim of ownership through a Permitted Transfer from Optionee.

 

T.                                     Permitted Transfer shall mean (i) a gratuitous transfer of the Purchased Shares, provided and only if (A) Optionee obtains the Company’s prior written consent to such transfer, (B) prior to the completion of the transfer the transferee shall have executed documents assuming the obligations of the Optionee under this Agreement with respect to the transferred securities and (C) prior to the completion of the transfer the transferee shall have executed an irrevocable proxy appointing the transferring Optionee as the transferee’s proxy and giving the transferring Optionee full power of substitution to vote all of the shares transferred pursuant to a gratuitous transfer, (ii) a transfer of title to the Purchased Shares effected pursuant to Optionee’s will or the laws of intestate succession following Optionee’s death or (iii) a transfer to the Company in

 

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pledge as security for any purchase-money indebtedness incurred by Optionee in connection with the acquisition of the Purchased Shares.

 

U.                                    Plan shall mean the Company’s Amended and Restated 2007 Stock Option Plan.

 

V.                                    Plan Administrator shall mean either the Board or a committee of Board members, to the extent the committee is at the time responsible for administration of the Plan.

 

W.                                 Prior Purchase Agreement shall have the meaning assigned to such term in Article IV.4.

 

X.                                    Purchased Shares shall have the meaning assigned to such term in Article A. 1.

 

Y.                                    Recapitalization shall mean any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the Company’s outstanding Common Stock as a class without the Company’s receipt of consideration.

 

Z.                                     Reorganization shall mean any of the following transactions:

 

1.                                      a merger or consolidation in which the Company is not the surviving entity,

 

2.                                      a sale, transfer or other disposition of all or substantially all of the Company’s assets,

 

3.                                      a reverse merger in which the Company is the surviving entity but in which the Company’s outstanding voting securities are transferred in whole or in part to a person or persons different from the persons holding those securities immediately prior to the merger, or

 

4.                                      any transaction effected primarily to change the state in which the Company is incorporated or to create a holding company structure.

 

AA.                           Repurchase Right shall mean the right granted to the Company in accordance with Article D.

 

BB.                           SEC shall mean the Securities and Exchange Commission.

 

CC.                           Service shall mean the provision of services to the Company (or any Subsidiary) by a person in the capacity of an employee, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance, a non-employee member of the board of directors or a consultant or independent advisor.

 

DD.                           Subsidiary shall mean any entity (other than the Company) in an unbroken chain of entities beginning with the Company, provided each entity (other than the last entity) in the unbroken chain owns, at the time of the determination, securities possessing fifty percent (50%) or more of the total combined voting power of all classes of equity securities in one of the other entities in such chain.

 

EE.                             Vesting Schedule shall mean the vesting schedule specified in the Plan or in the Grant Notice.

 

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