Document:

Exhibit 10.1

 

MEMORANDUM
OF UNDERSTANDING

 

 

 

This
Memorandum of Understanding (“MOU”) is made effective June 2, 2021 (the “Effective Date”) by and between Sugarmade,
Inc., a California corporation with an office located at 750 Royal Oaks Drive, Suite 108 Monrovia, CA 91016 (“Company”);
and Zarian Hadley, an individual resident of the State of California (“Applicant”), whose address for purposes of this MOU
shall be 4177 Figueroa St., Los Angeles, CA 90037. Company and Applicant shall be referred to herein individually as a “Party”
and collectively as the “Parties”. In addition, this MOU is witnessed by Edward Manolos (“Finder”), whose address
for purposes of this MOU shall be 446 La Terraza Street South Pasadena, CA 91030, with respect to Finder services provided by Finder
to the Parties to date and compensation to be paid Finder as further provided herein:

 

		1.	PURPOSE
                                            & SCOPE. The purpose of this MOU is to set forth the terms and conditions, scope of work
                                            and responsibilities of the Parties associated with their collaboration on obtaining up to
                                            three (3) Los Angeles Dept. of Cannabis Regulation (“DCR”) retail delivery only
                                            licenses and related California Bureau of Cannabis Control (“BCC”) licenses as
                                            required (collectively, the “Licenses”, in the singular “License”,
                                            each as may be awarded to a “Licensed Entity”). Specifically, the Parties will
                                            cooperate on developing and submitting all documentation reasonably necessary to obtain each
                                            License in accordance with DCR and BCC regulations, including without limitation filing all
                                            ownership documentation as well as corporate governance documents or documents required by
                                            any government agency, including but not limited to the DCR, BCC and/or the Security and
                                            Exchange Commission (“SEC”).

 

		2.	BACKGROUND.
                                            Both Parties have determined that each brings sufficient expertise, experience and resources
                                            to accomplish the objectives outlined herein, as follows.

 

		a.	Company
                                            is a publicly traded product and branding/marketing enterprise investing in operations and
                                            technologies with disruptive potential, including without limitation the Company’s
                                            present investments in California licensed cannabis cultivation, distribution and delivery
                                            concerns.

 

		b.	Applicant
                                            has experience in the Southern California cannabis industry and has submitted and maintained
                                            DCR Social Equity Program (“SEP”) Tier 1 and Tier 2 applications and confirmations
                                            which may be applied to the Licenses potentially available hereunder.

 

		3.	COMPANY
                                            RESPONSIBILITIES AND EQUITY ALLOCATION. Company shall provide and pay for miscellaneous legal
                                            and other compliance services related to the DCR/BCC License application and award process
                                            as further provided herein, as well as venture financing for Licensed entities and related
                                            cannabis cultivation, supply or procurement. In exchange for these services, Company shall
                                            be entitled to not less than sixty-six and sixty-six hundredths’ percent (66.66%) equity
                                            interest in each Licensed Entity.

 

    	 

     

    

 

		4.	APPLICANT
                                            RESPONSIBILITIES AND EQUITY ALLOCATION. Applicant shall provide services related to the DCR/BCC
                                            License application and award process hereunder, including without limitation maintaining
                                            his DCR SEP Tier 1 and Tier 2 application status in good standing, and maintaining compliance
                                            with all relevant DCR and BCC regulations. Upon the award of a License to any entity applicant
                                            as provided herein, Applicant shall be offered a position in that Licensed Entity, and shall
                                            be provided voting and profit distribution rights equal to his ownership percentage in such
                                            Licensed Entity, which shall be not less than thirty-three and thirty-four hundredths percent
                                            (33.34%).

 

APPLICANT
shall also execute, on behalf of the licensing entity a licensing and intellectual property royalty agreement for the use of Company
intellectual property (“Company IP”).

 

		5.	DEFINITIVE
                                            AGREEMENTS. This MOU is intended to and shall be implemented by more definitive documents
                                            containing further material terms and conditions regarding the transactions discussed herein,
                                            which shall include all provisions, mechanisms, covenants indemnities, and performances which
                                            are reasonably required for the award and operation of the Licenses to be procured (the more
                                            definitive documents referred to herein as the “Definitive Agreements”). For
                                            example, and not by way of limitation, the Definitive Agreements will include the LLC operating
                                            agreement, Intellectual Property Licensing agreement, and management agreements for each
                                            prospective Licensed Entity. Accordingly, this MOU shall be binding on the Parties, but they
                                            acknowledge and agree that the Definitive Agreements shall further define their rights and
                                            obligations regarding related License applications, License awards, and operation of Licensed
                                            Entities, and such Definitive Agreements may materially modify the terms and conditions herein.

 

		6.	FUNDING;
                                            COSTS. The Parties shall each be solely responsible for any and all costs associated with
                                            their responsibilities under this MOU as described above. Each Party shall bear legal and
                                            financial responsibility for the actions of its respective employees, officers, agents, representatives
                                            and contractors until otherwise allocated under related Definitive Agreements, including
                                            without limitation operating or management agreements for Licensed Entities.

 

		7.	INCENTIVE
                                            PAYMENT SCHEDULE. Payments shall be made by Company to Applicant or Finder as follows.

 

	Event	 	Payment	 	Receiving
    Party (or Finder); comments
	Execution
    of Definitive Agreements and submission of each a License application	 	$50,000.00*1	 	Applicant
	DCR
    approval of License application	 	$75,000.00*	 	Applicant
	BCC approval of License application	 	$75,000.00*	 	Applicant
	License award	 	$50,000.00**2	 	Finder fee
	TOTAL	 	$250,000.00 (per License)	 	Applicant; Finder

 

 

1
* Payments made to Applicant shall be made against Applicant’s equity share of future profit distributions by Licensed entities.
Company shall have sole responsibility for accounting and payment of future profit distributions.

2
** Payment shall be made in two installments. One half to be paid upon execution of this agreement and submission the retail delivery
application and one half to be paid upon issuances of the license by the BCC.

 

    	MOU, Sugarmade/Hadley	2

     

    

 

		8.	INDEMNIFICATION.
                                            Each Party agrees to indemnify, defend and hold harmless the other to the fullest extent
                                            permitted by law from and against any and all demands, claims, actions, liabilities, losses,
                                            damages, and costs, including reasonable attorney’s fees, arising out of or resulting
                                            from the indemnifying Party’s misrepresentations, acts or omissions related to its
                                            breach or performance of this MOU, and each Party shall bear its proportionate cost of any
                                            damages attributable to the fault of such Party, its officers, agents, employees and contractors.
                                            It is the intention of the Parties that, where fault is determined to have been contributory,
                                            principles of comparative fault will be applied.

 

		9.	INSURANCE.
                                            Each Party, at its sole cost and expense, shall carry insurance or self-insure to cover its
                                            activities in connection with this MOU until the execution of Definitive Agreements regarding
                                            the insurance to be carried by each Licensed Entity in accordance with applicable law. The
                                            Parties acknowledge and agree that each Licensed Entity may be required to obtain, keep in
                                            force and maintain, insurance or equivalent programs of self- insurance, for general liability,
                                            workers compensation and business automobile liability adequate to cover potential liabilities.

 

		10.	CONFIDENTIALITY.
                                            Under this MOU the Parties and Finder may exchange trade secrets, intellectual property,
                                            technical, business and marketing plans, prospective supplier/customer information and License
                                            application information and data as are reasonably required for each to perform their obligations
                                            hereunder. Each Party and Finder mutually agrees to keep in confidence and to use the same
                                            degree of care as it uses with respect to its own proprietary information to prevent disclosure
                                            to third parties of all such trade secrets, technical information and/or confidential business
                                            information received from a Party or Finder under this MOU (collectively “Confidential
                                            Information”). Unless otherwise agreed by the Parties and Finder, the confidentiality
                                            obligations herein shall survive termination of this MOU and shall extend in perpetuity.
                                            These restrictions of confidentiality above shall not apply to any information which:

 

		a.	is
                                            in the public domain at the time of the disclosure or subsequently becomes in the public
                                            domain without any act or omission by the receiving Party, or Finder;

 

		b.	can
                                            be shown by the receiving Party or Finder to be already in its possession; or

 

		c.	is
                                            received by a Party to this MOU from a third party under no obligation of confidentiality
                                            to the other Party to this MOU.

  

    	MOU, Sugarmade/Hadley	3

     

    

 

In
the event disclosure of Confidential Information is compelled by judicial or other official process, including without limitation the
License application process, the Parties and Finder will cooperate on any and all measures available to limit such disclosures, including
without limitation applications for protective orders or other protections provided by applicable law.

 

		11.	RETURN
                                            OF INFORMATION. In the event that the Parties are unsuccessful in completing any of the Definitive
                                            Agreements or receiving any or all of the Licenses contemplated by this MOU, each Party and
                                            Finder will, at its own expense, promptly return all copies of any Confidential Information
                                            to the producing Party upon request, except for that portion of the information which consists
                                            of derivative information, which will be destroyed and in the case of information stored
                                            in electronic form, it will be erased to the maximum extent practically possible. To the
                                            extent that data or electronic records containing information are retained by the receiving
                                            Party or Finder as data or records for the purposes of backup, recovery, contingency planning
                                            or business continuity planning or are otherwise not accessible in the ordinary course of
                                            business, such data or records, to the extent not otherwise permanently deleted or overwritten
                                            in the ordinary course of business, will not be accessed except as required for backup, recovery,
                                            contingency planning or business continuity purposes and, if restored or otherwise becoming
                                            accessible, will be permanently deleted forthwith. Notwithstanding the return or destruction
                                            of the information, the Parties and Finder shall continue to be bound by the confidentiality
                                            and other obligations under this MOU.

 

		12.	TERM.
                                            This MOU shall expire in whole or in part (i) on the date that the Parties enter into one
                                            or more specific Definitive Agreements governing the obligations herein (for example and
                                            not by way of limitation, upon execution of a licensing agreement with Company or an LLC
                                            operating agreement for a Licensed Entity granting the equity shares recited herein); or
                                            (ii) upon the Parties’ failure to receive any or all the Licenses sought hereunder.
                                            The rights and obligations of the Parties contained in the Confidentiality sections 10 and
                                            11 of this MOU shall continue in effect notwithstanding the termination of this MOU.

 

		13.	DISPUTE
                                            RESOLUTION.

 

		a.	Dispute
                                            Resolution. In the event a dispute arises, the parties shall attempt in good faith to resolve
                                            any dispute arising out of or relating to this Agreement, including without limitation the
                                            determination of the scope or applicability of this Agreement to arbitrate (each, a “Dispute”),
                                            promptly by negotiation between the signatories who have authority to settle the controversy.
                                            Any party may give the other party written notice of any Dispute not resolved in the normal
                                            course of business. Within fifteen (15) days after delivery of the written notice, the receiving
                                            party shall submit to the other a written response. The notice and response shall include
                                            with reasonable particularity (i) a statement of each party’s position and a summary
                                            of arguments supporting that position, and (ii) the name and title of the executive who will
                                            represent that party and of any other person who will accompany the executive. Within thirty
                                            (30) days after delivery of the written notice, the executives of both parties shall meet
                                            at a mutually acceptable time and place. Unless otherwise agreed in writing by the negotiating
                                            parties, the above-described negotiation shall end at the close of the first meeting of executives
                                            described above (“First Meeting”). Such closure shall not preclude continuing
                                            or later negotiations, if desired.

 

    	MOU, Sugarmade/Hadley	4

     

    

 

		b.	Arbitration.
                                            If the parties do not agree on a written resolution of a Dispute pursuant to the procedures
                                            set forth in this section, Section 13, by the end of the First Meeting, then, except as otherwise
                                            provided in this Agreement, any Dispute shall be submitted to binding arbitration in Los
                                            Angeles County, California by a single arbitrator mutually chosen by the parties in writing,
                                            who shall be a retired judge or litigator with ten (10) years or more of experience with
                                            claims similar to the Dispute (provided, that lack of experience with claims involving the
                                            cannabis industry shall not be a cause for disqualification). If the parties cannot agree
                                            on an arbitrator, JAMS shall provide a list of six (6) candidates, and each party shall take
                                            turns striking candidates (beginning with the party who received the notice of arbitration)
                                            until there is a single arbitrator. The costs of the arbitration, including any JAMS administration
                                            fee, the arbitrator’s fee, and costs for the use of facilities during the hearings,
                                            shall be borne equally by the parties to the arbitration; provided that all costs and expenses
                                            of the dispute, including arbitrator fees and reasonable attorneys’ fees and costs
                                            incurred, shall be awarded to the prevailing or most prevailing party as determined by the
                                            arbitrator. The arbitrator shall not have any power to alter, amend, modify or change any
                                            of the terms of this Agreement nor to grant any remedy which is either prohibited by the
                                            terms of this Agreement, or not available in a court of law. The arbitrator shall render
                                            a written opinion not later than thirty (30) days after conclusion of the arbitration proceedings
                                            setting forth a determination of award, if any, and the basis for awarding (or not awarding)
                                            the relief sought by the parties, including findings of fact and conclusions of law. If JAMS
                                            refuses to arbitrate a Dispute, the parties shall cooperate in good faith to find an alternative
                                            arbitrator reasonably acceptable to the parties in writing. An arbitrator exceeds his or
                                            her powers by voiding or refusing to enforce any contracts or arbitration agreements between
                                            Parties based solely on the cannabis related nature of the contract.

 

		c.	Irreparable
                                            Harm. Notwithstanding anything to the contrary in Section 13 if either Party in its sole
                                            judgment, acting reasonably, believes that any such dispute could cause it irreparable harm,
                                            such Party (a) will be entitled to seek equitable relief in order to avoid such irreparable
                                            harm and (b) will not be required to follow the procedures set forth in this Section 13.

 

		14.	GENERAL
                                            PROVISIONS.

 

		a.	Governing
                                            Law and Venue.This MOU shall be governed and interpreted in accordance with the laws of the
                                            State of California excepting its rules regarding choice or conflicts of law. Any dispute
                                            regarding the terms of the conditions of this MOU shall be resolved in the County of Los
                                            Angeles, State of California.

 

		b.	Amendments.
                                            This MOU may only be amended or modified by a mutually executed written instrument between
                                            the Parties, including without limitation a Definitive Agreement.

 

		c.	Entire
                                            Agreement. This MOU represents the entire agreement between the Parties as of the Effective
                                            Date and supersedes all prior negotiations, representations and agreements, whether written
                                            or oral between the Parties; provided, it is expressly subject to further definition and
                                            implementation via the Definitive Agreements.

 

		d.	Severability.
                                            Should any portion of this MOU be judicially determined to be illegal or unenforceable, the
                                            remainder of the MOU shall continue in full force and effect, and either Party may renegotiate
                                            the terms affected by the severance.

 

    	MOU, Sugarmade/Hadley	5

     

    

 

IN
WITNESS WHEREOF the parties have each caused this MOU to be executed and delivered by a duly authorized representative as of the Effective
Date.

 

	SUGARMADE,
    INC. (COMPANY)	 	 	 
	 	 	 	 
	/s/ Jimmy Chan	 	6/3/2021	 
	Jimmy
    Chan, CEO	 	Date	 
	 	 	 	 
	APPLICANT	 	 	 
	 	 	 	 
	/s/ Zarian Hadley	 	6/6/2021	 
	Zarian
    Hadley	 	Date	 
	 	 	 	 
	FINDER	 	 	 
	 	 	 	 
	/s/ Edward Manolos	 	6/3/2021	 
	Edward
    Manolos	 	Date	 

 

    	MOU, Sugarmade/Hadley	6Document

EXHIBIT 4.5

LightStep, Inc.
2013 Stock Plan
Adopted on October 11, 2013
amended and restated May 7, 2021 

TABLE OF CONTENTS
						
		Page
	SECTION 1.    ESTABLISHMENT AND PURPOSE
	1

	SECTION 2.    ADMINISTRATION
	1

	(a)Committees of the Board of Directors
	1

	(b)Authority of the Board of Directors
	1

	SECTION 3.    ELIGIBILITY
	1

	(a)General Rule
	1

	(b)Ten-Percent Stockholders
	1

	SECTION 4.    STOCK SUBJECT TO PLAN
	2

	(a)Basic Limitation
	2

	(b)Additional Shares
	2

	SECTION 5.    TERMS AND CONDITIONS OF AWARDS OR SALES
	2

	(a)Stock Grant or Purchase Agreement
	2

	(b)Duration of Offers and Nontransferability of Rights
	2

	(c)Purchase Price
	2

	SECTION 6.    TERMS AND CONDITIONS OF OPTIONS
	3

	(a)Stock Option Agreement
	3

	(b)Number of Shares
	3

	(c)Exercise Price
	3

	(d)Exercisability
	3

	(e)Basic Term
	3

	(f)Termination of Service (Except by Death)
	3

	(g)Leaves of Absence
	4

	(h)Death of Optionee
	4

	(i)Restrictions on Transfer of Options
	5

	(j)No Rights as a Stockholder
	5

	(k)Modification, Extension and Assumption of Options
	5

	(l)Company’s Right to Cancel Certain Options
	5

	SECTION 7.    TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS
	5

	(a)Restricted Stock Unit Agreement
	5

	(b)Number of Shares
	5

	(c)Terms and Conditions of RSU Award
	6

	(d)Form and Timing of Settlement
	6

	(e)Termination of Service
	6

	(f)Payment for Restricted Stock Units
	6

	(g)Modification, Extension and Assumption of Restricted Stock Units
	6

	(h)Restrictions on Transfer of Restricted Stock Units
	6

	(i)Voting and Dividend Rights
	6

	(j)Insider Trading Policy
	7

i

						
	SECTION 8.    PAYMENT FOR SHARES
	7

	(a)General Rule
	7

	(b)Services Rendered
	7

	(c)Promissory Note
	7

	(d)Surrender of Stock
	7

	(e)Exercise/Sale
	7

	(f)Net Exercise
	7

	(g)Other Forms of Payment
	8

	SECTION 9.    ADJUSTMENT OF SHARES
	8

	(a)General
	8

	(b)Corporate Transactions
	8

	(c)Reservation of Rights
	10

	SECTION 10.     MISCELLANEOUS PROVISIONS
	10

	(a)Securities Law Requirements
	10

	(b)No Retention Rights
	10

	(c)Treatment as Compensation
	10

	(d)Governing Law
	10

	(e)Conditions and Restrictions on Shares
	10

	(f)Tax Matters
	11

	SECTION 11.     DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL
	11

	(a)Term of the Plan
	11

	(b)Right to Amend or Terminate the Plan
	12

	(c)Effect of Amendment or Termination
	12

	(d)Stockholder Approval
	12

	SECTION 12.  DEFINITIONS
	12

ii

LightStep, Inc. 2013 Stock Plan
SECTION 1.ESTABLISHMENT AND PURPOSE.
The purpose of this Plan is to offer persons selected by the Company an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by acquiring Shares of the Company’s Stock.  The Plan provides both for the direct award or sale of Shares and for the grant of Options to purchase Shares and for the grant of Restricted Stock Units.  Options granted under the Plan may be ISOs intended to qualify under Code Section 422 or NSOs which are not intended to so qualify.
Capitalized terms are defined in Section 12.
SECTION 2.ADMINISTRATION.
(a)Committees of the Board of Directors.  The Plan may be administered by one or more Committees.  Each Committee shall consist, as required by applicable law, of one or more members of the Board of Directors who have been appointed by the Board of Directors.  Each Committee shall have such authority and be responsible for such functions as the Board of Directors has assigned to it.  If no Committee has been appointed, the entire Board of Directors shall administer the Plan.  Any reference to the Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom the Board of Directors has assigned a particular function.
(b)Authority of the Board of Directors.  Subject to the provisions of the Plan, the Board of Directors shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan.  Notwithstanding anything to the contrary in the Plan, with respect to the terms and conditions of awards granted to Participants outside the United States, the Board of Directors may vary from the provisions of the Plan to the extent it determines it necessary and appropriate to do so; provided that it may not vary from those Plan terms requiring stockholder approval pursuant to Section 11(d) below.  All decisions, interpretations and other actions of the Board of Directors shall be final and binding on all Participants and all persons deriving their rights from a Participant. 
SECTION 3.ELIGIBILITY.
(a)General Rule.  Only Employees, Outside Directors and Consultants shall be eligible for the grant of NSOs, Restricted Stock Units or the direct award or sale of Shares.  Only Employees shall be eligible for the grant of ISOs.  
(b)Ten-Percent Stockholders.  A person who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries shall not be eligible for the grant of an ISO unless (i) the Exercise Price is at least 110% of the Fair Market Value of a Share on the Date of Grant and (ii) such ISO by its terms is not exercisable after the expiration of five years from the Date of Grant.  For purposes of 
1

this Subsection (b), in determining stock ownership, the attribution rules of Code Section 424(d) shall be applied.
SECTION 4.STOCK SUBJECT TO PLAN.
(a)Basic Limitation.  Not more than 14,529,684 Shares may be issued under the Plan, subject to Subsection (b) below and Section 9(a), all of which may be issued upon the exercise of ISOs.  The number of Shares that are subject to Options, Restricted Stock Units or other rights outstanding at any time under the Plan may not exceed the number of Shares that then remain available for issuance under the Plan.  The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan.  Shares offered under the Plan may be authorized but unissued Shares or treasury Shares.
(b)Additional Shares.  In the event that Shares previously issued under the Plan are reacquired by the Company, such Shares shall be added to the number of Shares then available for issuance under the Plan.  In the event that Shares that otherwise would have been issuable under the Plan are withheld by the Company in payment of the Purchase Price, Exercise Price or withholding taxes, such Shares shall remain available for issuance under the Plan.  In the event that an outstanding Option, Restricted Stock Unit or other right for any reason expires or is canceled, the Shares allocable to the unexercised portion of such Option, the unsettled portion of the Restricted Stock Unit or other right shall be added to the number of Shares then available for issuance under the Plan.
SECTION 5.TERMS AND CONDITIONS OF AWARDS OR SALES.
(a)Stock Grant or Purchase Agreement.  Each award of Shares under the Plan shall be evidenced by a Stock Grant Agreement between the Grantee and the Company.  Each sale of Shares under the Plan (other than upon exercise of an Option or settlement of Restricted Stock Units) shall be evidenced by a Stock Purchase Agreement between the Purchaser and the Company.  Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Grant Agreement or Stock Purchase Agreement.  The provisions of the various Stock Grant Agreements and Stock Purchase Agreements entered into under the Plan need not be identical.
(b)Duration of Offers and Nontransferability of Rights.  Any right to purchase Shares under the Plan (other than an Option) shall automatically expire if not exercised by the Purchaser within 30 days (or such other period as may be specified in the Award Agreement) after the grant of such right was communicated to the Purchaser by the Company.  Such right is not transferable and may be exercised only by the Purchaser to whom such right was granted.
(c)Purchase Price.  The Board of Directors shall determine the Purchase Price of Shares to be offered under the Plan at its sole discretion.  The Purchase Price shall be payable in a form described in Section 8.
2

SECTION 6.TERMS AND CONDITIONS OF OPTIONS.
(a)Stock Option Agreement.  Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company.  The Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Board of Directors deems appropriate for inclusion in a Stock Option Agreement.  The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.
(b)Number of Shares.  Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 9.  The Stock Option Agreement shall also specify whether the Option is an ISO or an NSO.
(c)Exercise Price.  Each Stock Option Agreement shall specify the Exercise Price.  The Exercise Price of an Option shall not be less than 100% of the Fair Market Value of a Share on the Date of Grant, and in the case of an ISO a higher percentage may be required by Section 3(b).  Subject to the preceding sentence, the Exercise Price shall be determined by the Board of Directors at its sole discretion.  The Exercise Price shall be payable in a form described in Section 8.  This Subsection (c) shall not apply to an Option granted pursuant to an assumption of, or substitution for, another option in a manner that complies with Code Section 424(a) (whether or not the Option is an ISO).
(d)Exercisability.  Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable.  No Option shall be exercisable unless the Optionee (i) has delivered an executed copy of the Stock Option Agreement to the Company or (ii) otherwise agrees to be bound by the terms of the Stock Option Agreement.  The Board of Directors shall determine the exercisability provisions of the Stock Option Agreement at its sole discretion.  
(e)Basic Term.  The Stock Option Agreement shall specify the term of the Option.  The term shall not exceed 10 years from the Date of Grant, and in the case of an ISO, a shorter term may be required by Section 3(b).  Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to expire.
(f)Termination of Service (Except by Death).  If an Optionee’s Service terminates for any reason other than the Optionee’s death, then the Optionee’s Options shall expire on the earliest of the following dates:
(i)The expiration date determined pursuant to Subsection (e) above;
(ii)The date three months after the termination of the Optionee’s Service for any reason other than Disability, or such earlier or later date as the Board of Directors may determine (but in no event earlier than 30 days after the termination of the Optionee’s Service); or
3

(iii)The date six months after the termination of the Optionee’s Service by reason of Disability, or such later date as the Board of Directors may determine.
The Optionee may exercise all or part of the Optionee’s Options at any time before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination).  The balance of such Options shall lapse when the Optionee’s Service terminates.  In the event that the Optionee dies after the termination of the Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination).
(g)Leaves of Absence.  For purposes of Subsection (f) above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company).
(h)Death of Optionee.  If an Optionee dies while the Optionee is in Service, then the Optionee’s Options shall expire on the earlier of the following dates:
(i)The expiration date determined pursuant to Subsection (e) above; or
(ii)The date 12 months after the Optionee’s death, or such earlier or later date as the Board of Directors may determine (but in no event earlier than six months after the Optionee’s death).
All or part of the Optionee’s Options may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s death (or became exercisable as a result of the death) and the underlying Shares had vested before the Optionee’s death (or vested as a result of the Optionee’s death).  The balance of such Options shall lapse when the Optionee dies.
(i)Restrictions on Transfer of Options.  An Option shall be transferable by the Optionee only by (i) a beneficiary designation, (ii) a will or (iii) the laws of descent and distribution, except as provided in the next sentence.  If the applicable Stock Option Agreement so provides, an NSO shall also be transferable by gift or domestic relations order to a Family 
4

Member of the Optionee.  An ISO may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative.  
(j)No Rights as a Stockholder.  An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such person files a notice of exercise, pays the Exercise Price and satisfies all applicable withholding taxes pursuant to the terms of such Option.
(k)Modification, Extension and Assumption of Options.  Within the limitations of the Plan, the Board of Directors may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options or a different type of award for the same or a different number of Shares and at the same or a different Exercise Price (if applicable).  The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such Option.
(l)Company’s Right to Cancel Certain Options.  Any other provision of the Plan or a Stock Option Agreement notwithstanding, the Company shall have the right at any time to cancel an Option that was not granted in compliance with Rule 701 under the Securities Act.  Prior to canceling such Option, the Company shall give the Optionee not less than 30 days’ notice in writing.  If the Company elects to cancel such Option, it shall deliver to the Optionee consideration with an aggregate Fair Market Value equal to the excess of (i) the Fair Market Value of the Shares subject to such Option as of the time of the cancellation over (ii) the Exercise Price of such Option.  The consideration may be delivered in the form of cash or cash equivalents, in the form of Shares, or a combination of both.  If the consideration would be a negative amount, such Option may be cancelled without the delivery of any consideration.
SECTION 7.TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS
(a)Restricted Stock Unit Agreement.  A Restricted Stock Unit (“RSU”) is an award to a Grantee covering a number of Shares that may, at the discretion of the Board of Directors, be settled in cash or by the issuance of Shares.  Each grant of Restricted Stock Units under the Plan shall be evidenced by a Restricted Stock Unit Agreement between the Grantee and the Company.  The Restricted Stock Units shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan and that the Board of Directors deems appropriate for inclusion in a Restricted Stock Unit Agreement.  The provisions of the various Restricted Stock Unit Agreements entered into under the Plan need not be identical.
(b)Number of Shares.  Each Restricted Stock Unit Agreement shall specify the number of Shares that are subject to the RSU award and shall provide for the adjustment of such number in accordance with Section 9. 
(c)Terms and Conditions of RSU Award.  The Board of Directors will determine the terms and conditions of the RSU award granted to the Grantee, including, without limitation: (i) the number of Shares subject to the RSU award; (ii) the time or times during which 
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the RSU award may vest and/or be settled; (iii) the consideration to be distributed on settlement; and (iv) the effect of the Grantee’s termination of Service on each RSU award. 
(d)Form and Timing of Settlement.   RSU awards shall be  settled as soon as practicable after satisfaction of the vesting conditions, as determined by the Board of Directors and set forth in the Restricted Stock Unit Agreement.  The Board of Directors, in its sole discretion, may settle RSUs in cash, Shares, or a combination of both.  The Board of Directors may also permit a Grantee to defer payment under an RSU award to a date or dates after the vesting conditions applicable to the RSU award are satisfied, provided that the terms of the RSU award and any deferral comply with the requirements of Code Section 409A.
(e)Termination of Service.  Except as may be set forth in the Grantee’s Restricted Stock Unit Agreement, any time-based vesting condition applicable to an RSU award ceases to be further satisfied upon the Grantee’s cessation of Services (unless determined otherwise by the Board of Directors).
(f)Payment for Restricted Stock Units.  No cash consideration shall be required of a Grantee in connection with the grant of Restricted Stock Units.
(g)Modification, Extension and Assumption of Restricted Stock Units. Within the limitations of the Plan, the Board of Directors may modify, extend or assume outstanding Restricted Stock Units or may accept the cancellation of outstanding Restricted Stock Units (whether granted by the Company or another issuer) in return for the grant of new Restricted Stock Units or a different type of award for the same or a different number of Shares. The foregoing notwithstanding, no modification of a Restricted Stock Unit shall, without the consent of the Grantee, impair the Grantee’s rights or increase the Grantee’s obligations under such Restricted Stock Unit.
(h)Restrictions on Transfer of Restricted Stock Units. A Restricted Stock Unit shall be transferable by the Grantee only by will or the laws of descent and distribution, except as provided in the next sentence. In addition, if the Board of Directors so provides, in a Restricted Stock Unit Agreement or otherwise, a Restricted Stock Unit shall also be transferable to the extent permitted by Rule 701 under the Securities Act.
(i)Voting and Dividend Rights.  The holders of Restricted Stock Units shall have no voting rights.  Prior to settlement or forfeiture, any Restricted Stock Unit granted under the Plan may, at the discretion of the Board of Directors, carry with it a right to dividend equivalents.  Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Restricted Stock Unit is outstanding.  Dividend equivalents may be converted into additional Restricted Stock Units.  Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both.  Prior to distribution, any dividend equivalents that are not paid shall be subject to the same conditions and restrictions as the Restricted Stock Units to which they attach.
(j)Insider Trading Policy. Each Grantee who receives an award of Restricted Stock Units shall comply with any policy adopted by the Company from time to time 
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covering transactions in the Company’s securities by Employees, Consultants and Outside Directors.
SECTION 8.PAYMENT FOR SHARES.
(a)General Rule.  The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents at the time when such Shares are purchased, except as otherwise provided in this Section 8.  In addition, the Board of Directors in its sole discretion may also permit payment through any of the methods described in (b) through (g) below.  
(b)Services Rendered.  Shares may be awarded under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior to the award.
(c)Promissory Note.  All or a portion of the Purchase Price or Exercise Price (as the case may be) of Shares issued under the Plan may be paid with a full-recourse promissory note.  The Shares shall be pledged as security for payment of the principal amount of the promissory note and interest thereon.  The interest rate payable under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the imputation of additional interest under the Code.  Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any) and other provisions of such note.
(d)Surrender of Stock.  All or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee.  Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value as of the date when the Option is exercised.
(e)Exercise/Sale.  If the Stock is publicly traded, all or part of the Exercise Price and any withholding taxes may be paid by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company.
(f)Net Exercise.  An Option may permit exercise through a “net exercise” arrangement pursuant to which the Company will reduce the number of Shares issued upon exercise by the largest whole number of Shares having an aggregate Fair Market Value (determined by the Board of Directors as of the exercise date) that does not exceed the aggregate Exercise Price or the sum of the aggregate Exercise Price plus all or a portion of the minimum amount required to be withheld under applicable tax law (with the Company accepting from the Optionee payment of cash or cash equivalents to satisfy any remaining balance of the aggregate Exercise Price and, if applicable, any additional withholding obligation not satisfied through such reduction in Shares); provided that to the extent Shares subject to an Option are withheld in this manner, the number of Shares subject to the Option following the net exercise will be reduced by the sum of the number of Shares withheld and the number of Shares delivered to the Optionee as a result of the exercise.
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(g)Other Forms of Payment.  To the extent that an Award Agreement so provides, the Purchase Price or Exercise Price of Shares issued under the Plan may be paid in any other form permitted by the Delaware General Corporation Law, as amended.
SECTION 9.ADJUSTMENT OF SHARES.
(a)General.  In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a reclassification, or any other increase or decrease in the number of issued shares of Stock effected without receipt of consideration by the Company, proportionate adjustments shall automatically be made in each of (i) the number and kind of Shares available for future grants under Section 4, (ii) the number and kind of Shares covered by each outstanding Option, Restricted Stock Unit and any outstanding and unexercised right to purchase Shares that has not yet expired pursuant to Section 5(b), (iii) the Exercise Price under each outstanding Option and the Purchase Price applicable to any unexercised stock purchase right described in clause (ii) above, and (iv) any repurchase price that applies to Shares granted under the Plan pursuant to the terms of a Company repurchase right under the applicable Award Agreement.  In the event of a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a recapitalization, a spin-off, or a similar occurrence, the Board of Directors at its sole discretion may make appropriate adjustments in one or more of the items listed in clauses (i) through (iv) above; provided, however, that the Board of Directors shall in any event make such adjustments as may be required by Section 25102(o) of the California Corporations Code.  No fractional Shares shall be issued under the Plan as a result of an adjustment under this Section 9(a), although the Board of Directors in its sole discretion may make a cash payment in lieu of fractional Shares.
(b)Corporate Transactions.  In the event that the Company is a party to a merger or consolidation, or in the event of a sale of all or substantially all of the Company’s stock or assets, all Shares acquired under the Plan and all Options, Restricted Stock Units and other Plan awards outstanding on the effective date of the transaction shall be treated in the manner described in the definitive transaction agreement (or, in the event the transaction does not entail a definitive agreement to which the Company is party, in the manner determined by the Board of Directors in its capacity as administrator of the Plan, with such determination having final and binding effect on all parties), which agreement or determination need not treat all Options, Restricted Stock Units and awards (or all portions of an Option, Restricted Stock Unit or an award) in an identical manner. The treatment specified in the transaction agreement or as determined by the Board of Directors may include (without limitation) one or more of the following with respect to each outstanding Option, Restricted Stock Unit or award:
(i)Continuation of the Option, Restricted Stock Unit or award by the Company (if the Company is the surviving corporation).
(ii)Assumption of the Option or Restricted Stock Unit by the surviving corporation or its parent (in a manner that complies with Code Section 424(a) with respect to Options, whether or not the Option is an ISO).
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(iii)Substitution by the surviving corporation or its parent of a new option for the Option in a manner that complies with Code Section 424(a) (whether or not the Option is an ISO) or of a new restricted stock unit for the Restricted Stock Unit.
(iv)Cancellation of the Option and a payment to the Optionee with respect to each Share subject to the portion of the Option that is vested as of the transaction date equal to the excess of (A) the value, as determined by the Board of Directors in its absolute discretion, of the property (including cash) received by the holder of a share of Stock as a result of the transaction, over (B) the per-Share Exercise Price of the Option (such excess, the “Spread”).  Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent having a value equal to the Spread.  In addition, any escrow, holdback, earn-out or similar provisions in the transaction agreement may apply to such payment to the same extent and in the same manner as such provisions apply to the holders of Stock.  If the Spread applicable to an Option is zero or a negative number, then the Option may be cancelled without making a payment to the Optionee.
(v)Cancellation of the Option without the payment of any consideration; provided that the Optionee shall be notified of such treatment and given an opportunity to exercise the Option (to the extent the Option is vested or becomes vested as of the effective date of the transaction) during a period of not less than five (5) business days preceding the effective date of the transaction, unless (A) a shorter period is required to permit a timely closing of the transaction and (B) such shorter period still offers the Optionee a reasonable opportunity to exercise the Option.  Any exercise of the Option during such period may be contingent upon the closing of the transaction.
(vi)Suspension of the Optionee’s right to exercise the Option during a limited period of time preceding the closing of the transaction if such suspension is administratively necessary to permit the closing of the transaction.
(vii)Termination of any right the Optionee has to exercise the Option prior to vesting in the Shares subject to the Option (i.e., “early exercise”), such that following the closing of the transaction the Option may only be exercised to the extent it is vested.
For the avoidance of doubt, the Board of Directors has discretion to accelerate, in whole or part, the vesting and exercisability of an Option or other Plan award in connection with a corporate transaction covered by this Section 9(b), except as otherwise provided in an applicable definitive transaction agreement.  
(c)Reservation of Rights.  Except as provided in this Section 9, a Participant shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of 
9

shares of stock of any class.  Any issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option or Restricted Stock Unit.  The grant of an Option or Restricted Stock Unit pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.
SECTION 10.  MISCELLANEOUS PROVISIONS.
(a)Securities Law Requirements.  Shares shall not be issued under the Plan unless, in the opinion of counsel acceptable to the Board of Directors, the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded.  The Company shall not be liable for a failure to issue Shares as a result of such requirements. 
(b)No Retention Rights.  Nothing in the Plan or in any right or Option or Restricted Stock Unit granted under 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 Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.
(c)Treatment as Compensation.  Any compensation that an individual earns or is deemed to earn under this Plan shall not be considered a part of his or her compensation for purposes of calculating contributions, accruals or benefits under any other plan or program that is maintained or funded by the Company, a Parent or a Subsidiary.
(d)Governing Law.  The Plan and all awards, sales and grants under the Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State.
(e)Conditions and Restrictions on Shares.  Shares issued under the Plan shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal, other transfer restrictions and such other terms and conditions as the Board of Directors may determine.  Such conditions and restrictions shall be set forth in the applicable Award Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally.  In addition, Shares issued under the Plan shall be subject to conditions and restrictions imposed either by applicable law or by Company policy, as adopted from time to time, designed to ensure compliance with applicable law or laws with which the Company determines in its sole discretion to comply including in order to maintain any statutory, regulatory or tax advantage.
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(f)Tax Matters.  
(i)As a condition to the award, grant, issuance, vesting, purchase, exercise or transfer of any award, or Shares issued pursuant to any award, granted under this Plan, the Participant shall make such arrangements as the Board of Directors may require or permit for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such event.
(ii)Unless otherwise expressly set forth in an Award Agreement, it is intended that awards granted under the Plan shall be exempt from Code Section 409A, and any ambiguity in the terms of an Award Agreement and the Plan shall be interpreted consistently with this intent.   To the extent an award is not exempt from Code Section 409A (any such award, a “409A Award”), any ambiguity in the terms of such award and the Plan shall be interpreted in a manner that to the maximum extent permissible supports the award’s compliance with the requirements of that statute.  Notwithstanding anything to the contrary permitted under the Plan, in no event shall a modification of an Award not already subject to Code Section 409A be given effect if such modification would cause the Award to become subject to Code Section 409A unless the parties explicitly acknowledge and consent to the modification as one having that effect. A 409A Award shall be subject to such additional rules and requirements as specified by the Board of Directors from time to time in order for it to comply with the requirements of Code Section 409A.  In this regard, if any amount under a 409A Award is payable upon a “separation from service” to an individual who is considered a “specified employee” (as each term is defined under Code Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the Participant’s separation from service or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such payment from being subject to Section 409A(a)(1).  In addition, if a transaction subject to Section 9(b) constitutes a payment event with respect to any 409A Award, then the transaction with respect to such award must also constitute a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) to the extent required by Code Section 409A.
(iii)    Neither the Company nor any member of the Board of Directors shall have any liability to a Participant in the event an award held by the Participant fails to achieve its intended characterization under applicable tax law.  
SECTION 11.  DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL.
(a)Term of the Plan.  The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors, subject to approval of the Company’s stockholders under Subsection (d) below.  The Plan shall terminate automatically 10 years after the later of (i) the date when the Board of Directors adopted the Plan or (ii) the date when the Board of Directors approved the most recent increase in the number of Shares reserved under 
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Section 4 that was also approved by the Company’s stockholders.  The Plan may be terminated on any earlier date pursuant to Subsection (b) below.
(b)Right to Amend or Terminate the Plan.  Subject to Subsection (d) below, the Board of Directors may amend, suspend or terminate the Plan at any time and for any reason.
(c)Effect of Amendment or Termination.  No Shares shall be issued or sold and no Option or Restricted Stock Unit granted under the Plan after the termination thereof, except upon exercise of an Option (or any other right to purchase Shares) or settlement of Restricted Stock Units granted under the Plan prior to such termination.  The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option or Restricted Stock Unit previously granted under the Plan.
(d)Stockholder Approval.  To the extent required by applicable law, the Plan will be subject to approval of the Company’s stockholders within 12 months of its adoption date.  To the extent required by applicable law, any amendment of the Plan will be subject to the approval of the Company’s stockholders within 12 months of the amendment date if it (i) increases the number of Shares available for issuance under the Plan (except as provided in Section 9), or (ii) materially changes the class of persons who are eligible for the grant of ISOs.  In addition, an amendment effecting any other material change to the Plan terms will be subject to approval of the Company’s stockholder only if required by applicable law.  Stockholder approval shall not be required for any other amendment of the Plan.
SECTION 12.  DEFINITIONS.
(a)“Award Agreement” means a Restricted Stock Unit Agreement, Stock Grant Agreement, Stock Option Agreement or Stock Purchase Agreement.
(b)“Board of Directors” means the Board of Directors of the Company, as constituted from time to time.
(c)“Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.
(d)“Committee” means a committee of the Board of Directors, as described in Section 2(a).
(e)“Company” means LightStep, Inc., a Delaware corporation, and its successors.
(f)“Common Stock” means the common stock of the Company, par value $0.0001 per share.
(g)“Consultant” means a person, excluding Employees and Outside Directors, who performs bona fide services for the Company, a Parent or a Subsidiary as a 
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consultant or advisor and who qualifies as a consultant or advisor under Rule 701(c)(1) of the Securities Act or under Instruction A.1.(a)(1) of Form S-8 under the Securities Act.
(h)“Date of Grant” means the date of grant specified in the applicable Stock Option Agreement, which date shall be the later of (i) the date on which the Board of Directors resolved to grant the Option or (ii) the first day of the Optionee’s Service.
(i)“Disability” means that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment.
(j)“Employee” means any individual who is a commonlaw employee of the Company, a Parent or a Subsidiary.
(k)“Exchange Act” means the Securities Exchange Act of 1934, as amended.
(l)“Exercise Price” means the amount for which one Share may be purchased upon exercise of an Option, as specified by the Board of Directors in the applicable Stock Option Agreement.
(m)“Fair Market Value” means the fair market value of a Share, as determined by the Board of Directors in good faith.  Such determination shall be conclusive and binding on all persons.
(n)“Family Member” means (i) any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, (ii) any person sharing the Optionee’s household (other than a tenant or employee), (iii) a trust in which persons described in Clause (i) or (ii) have more than 50% of the beneficial interest, (iv) a foundation in which persons described in Clause (i) or (ii) or the Optionee control the management of assets and (v) any other entity in which persons described in Clause (i) or (ii) or the Optionee own more than 50% of the voting interests.
(o)“Grantee” means a person to whom the Board of Directors has awarded Shares or Restricted Stock Units under the Plan.
(p)“ISO” means an Option that qualifies as an incentive stock option as described in Code Section 422(b).  Notwithstanding its designation as an ISO, an Option that does not qualify as an ISO under applicable law shall be treated for all purposes as an NSO.  
(q)“NSO” means an Option that does not qualify as an incentive stock option as described in Code Section 422(b) or 423(b).
(r)“Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Shares.
(s)“Optionee” means a person who holds an Option.
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(t)“Outside Director” means a member of the Board of Directors who is not an Employee.
(u)“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.  A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date.
(v)“Participant” means a Grantee, Optionee or Purchaser.
(w)“Plan” means this LightStep, Inc. 2013 Stock Plan, as set forth in this document.
(x)“Purchase Price” means the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Board of Directors.
(y)“Purchaser” means a person to whom the Board of Directors has offered the right to purchase Shares under the Plan (other than upon exercise of an Option).
(z)“Restricted Stock Unit” or “RSU” means an award of restricted stock units granted under Section 7 of the Plan. 
(aa)    “Restricted Stock Unit Agreement” means the agreement between the Company and a Grantee who is awarded RSUs under the Plan that contains the terms, conditions and restrictions pertaining to the award of such RSUs, including any notice of grant and appendix attached thereto.
(bb)    “Securities Act” means the Securities Act of 1933, as amended.
(cc)    “Service” means service as an Employee, Outside Director or Consultant.
(dd)    “Share” means one share of Stock, as adjusted in accordance with Section 9 (if applicable).
(ee)    “Stock” means the Common Stock of the Company.
(ff)    “Stock Grant Agreement” means the agreement between the Company and a Grantee who is awarded Shares under the Plan that contains the terms, conditions and restrictions pertaining to the award of such Shares.
(gg)    “Stock Option Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to the Optionee’s Option.
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(hh)    “Stock Purchase Agreement” means the agreement between the Company and a Purchaser who purchases Shares under the Plan that contains the terms, conditions and restrictions pertaining to the purchase of such Shares.
(ii)    “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.  A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.
15

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