Document:

Exhibit

EXHIBIT 10.7

THE RUBICON PROJECT, INC.
2014 EQUITY INCENTIVE PLAN
MARKET STOCK AWARD AGREEMENT 
(Performance-Based Vesting)
This Market Stock Award Agreement consisting of the Notice of Grant immediately below (the “Notice of Grant”) and the accompanying Market Stock Award Agreement (the “Market Stock Award Agreement” and together with the Notice of Grant, the “Agreement”) is made between The Rubicon Project, Inc. (the “Company”) and ________________ (“Participant”) as of the Issuance Date set forth in the Notice of Grant below.  
NOTICE OF GRANT

The Company hereby grants to Participant a market stock award (the “MSA”) consisting of shares of Common Stock subject to vesting as set forth below (“Market Stock”), and subject to the terms and conditions of the Plan and this Agreement.  Unless otherwise defined herein, the terms defined in the 2014 Stock Incentive Plan, as amended (the “Plan”) shall have the same defined meanings in this Agreement, and the terms Involuntary Termination, Disability, and Sale Transaction as used herein have the meanings given to them in the Severance Agreement. 

For purpose of this Agreement, the terms in the left-hand column below have the corresponding meanings set forth opposite them in the right-hand column. 

	
		
	Common Stock
	Common stock of the Company, par value $.0001 per share.

	Issuance Date   
	_______

	Issuance Date Fair Market Value
	$____, which is the Fair Market Value on the Issuance Date.

	Issuance Date Performance Value
	$_______, which is the arithmetic mean of the closing prices for the Common Stock on the New York Stock Exchange as reported by _______ for each of the 20 consecutive trading days ending on and including the Issuance Date.

	Issued Shares         
	_____ shares of Common Stock, which is 150% of the initial Target Shares (rounded to the nearest whole share with a result ending in .5 being rounded to the next higher whole share).

	Measurement Date
	The first to occur of (i) _______, (ii) the effective date of a Sale Transaction, or (iii) the date of termination of Participant’s Continuous Service as a result of an Involuntary Termination, death, or Disability.  

	Measurement Date Performance Value
	The arithmetic mean of the closing prices for the Common Stock on the New York Stock Exchange (or such other exchange or market system as may then be the primary exchange or market system upon which the Common Stock trades for at least a majority of the 20 trading days included in the average) as reported by _______ (or if _______ is not then reporting closing prices, then by a source of national standing that the Board or Committee deems reliable) for each of the 20 consecutive trading days ending on and including the Measurement Date, except that if the Measurement Date is the effective Date of a Sale Transaction, then the Measurement Date Performance Value is the effective value per share of Common Stock in the Sale Transaction rather than a trailing average.

	
		
	Performance Factor
	If the Calculated Quotient is less than 50%, the Performance Factor is zero.  If the Calculated Quotient is more than 150%, the Performance Factor is 150%.  If the Calculated Quotient is at least 50% but not more than 150%, the Performance Factor is equal to the Calculated Quotient.  For this purpose, the “Calculated Quotient” is obtained by dividing the Measurement Date Performance Value by the Issuance Date Performance Value.

	Severance Agreement
	That certain Executive Severance and Vesting Acceleration Agreement between the Company and Participant.

	Target Shares            
	Is initially _____ shares of Common Stock, which is determined as the quotient obtained by dividing$___________ by the Issuance Date Fair Market Value (rounded to the nearest whole share with a result ending in .5 being rounded to the next higher whole share). Subject to Section 3 of this Notice, if Participant’s Continuous Service terminates before the earlier of _______ and the effective date of a Sale Transaction, on account of Participant’s (i) death, (ii) Disability, (iii) Involuntary Termination not in connection with a Sale Transaction , or (iv) voluntary termination initiated by Participant, then the Target Shares shall be reduced to an amount equal to the product obtained by multiplying the initial Target Shares by a fraction, the numerator of which is the number of days from the Issuance Date to the date of termination of Participant’s Continuous Service and the denominator of which is 1,066.

	Vested Shares
	The number of shares of Common Stock, consisting of none, some, or all of the Issued Shares, determined as the product obtained by multiplying the Performance Factor times the Target Shares as of the Measurement Date, after giving effect to any reduction in the number of Target Shares that results from termination of Participant’s Continuous Service for any reason set forth in the section entitled “Target Shares”.

	Vesting Date
	The date that the Board or Committee certifies the Measurement Date Performance Value, the Performance Factor, and the Vested Shares, as calculated by the Company as of the Measurement Date.  If the Measurement Date is _______, it is anticipated that the Board or Committee will certify on May 15, _______, so that the Vesting Date coincides with the Company’s regular May 15 vesting date for restricted stock and restricted stock unit awards, but the Board or Committee is not required to certify on May 15, _______.

		
	1.
	As of the Issuance Date, the Company shall issue to Participant all of the Issued Shares.

2.  The Issued Shares are subject to vesting as described in this Notice of Grant, and non-transferable prior to vesting as described in Section 14 of the Market Stock Award Agreement below.  None of the Issued Shares will vest before the Vesting Date, and vesting of Issued Shares will occur only on the Vesting Date, without any ratable vesting for periods of time before the Vesting Date.
3.  If Participant’s Continuous Service is terminated by the Company with Cause at any time before the Vesting Date, or by Participant without Good Reason at any time before the first anniversary of the Issuance Date, then there will be no Measurement Date or Vesting Date, the MSA will automatically terminate, and the Issued Shares will be forfeited to and automatically reacquired by the Company at no cost to the Company, and Participant will have no further rights to the Issued Shares or otherwise under the MSA.

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4.  As of the Measurement Date, the Company shall determine and the Board or Committee shall certify the Measurement Date Performance Value, the Performance Factor, and the Vested Shares.  Notwithstanding anything else, the Vested Shares may not exceed 150% of the Target Shares, as adjusted.
5.  As of the Vesting Date, the transfer restrictions applicable to the Vested Shares shall lapse, and as promptly as practicable on or following the Vesting Date the Vested Shares shall be released from Escrow and delivered to Participant.  If the application of the vesting methodology results in the vesting of a fractional Share, the number of Shares that shall become vested on the Vesting Date shall be rounded to the nearest whole Share.
6.  Following the Measurement Date and any related Vesting Date, any and all Issued Shares in excess of the Vested Shares will be forfeited to and reacquired by the Company at no cost to the Company and Participant will have no further rights with respect to such forfeited shares.  
7.  Handling of the Issued Shares in case of Involuntary Termination of Participant’s Continuous Service is set forth in this Agreement, and accordingly the vesting acceleration provisions of the Severance Agreement (i.e. Sections 2(b)(iv), 2(c)(iii), and 2(d) thereof) do not apply to the MSA or the Issued Shares.

Participant acknowledges receipt of a copy of the Plan and represents that Participant has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement, and fully understands this Agreement and the Plan. Participant further acknowledges that this Agreement and the Plan (including any exhibits to each document) set forth the entire understanding between Participant and the Company regarding the Shares subject to this Agreement and supersede all prior oral and written agreements with respect thereto, including, but not limited to, any other agreement or understanding between Participant and the Company relating to Participant’s Continuous Service and any termination thereof, compensation, or rights, claims or interests in or to the Shares.
	
					
	 
	 
	 
	 
	 

	PARTICIPANT:
	 
	 
	THE RUBICON PROJECT, INC.:
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	 
	 

	Signature
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

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MARKET STOCK AWARD AGREEMENT
1.    Grant of Market Stock.  The Company hereby grants to the Participant named in the Notice of Grant an award of Restricted Stock, subject to all of the terms and conditions in this Market Stock Award Agreement and the Plan, which are incorporated herein by reference.  The Notice of Grant above is referred to in this Agreement as the “Notice of Grant.” This Market Stock Award Agreement and the Notice of Grant are referred to collectively as the “Agreement” relating to the Restricted Stock described in the Notice of Grant.  Restricted Stock issued pursuant to the Agreement is referred to in this Agreement as “Restricted Stock.”
2.    Company’s Issuance of Common Stock.  As of the Issuance Date set forth in the Notice of Grant, the Company issues to Participant the Issued Shares as set forth in the Notice of Grant subject to the vesting requirements set forth in the Notice of Grant (each, a “Share” and collectively, the “Shares”).  All Shares shall be held in escrow by an authorized officer of the Company in accordance with the terms of the Joint Escrow Instructions attached hereto as Exhibit A.  Participant will have no right to the release of any Shares from the escrow created by the Joint Escrow Instructions (the “Escrow”) unless and until the Shares have vested in the manner set forth in Section 4 and the restrictions in Section 14 shall have lapsed.  
3.    Participant Representations. 
(a)  Participant acknowledges that (i) Participant was and is free to use professional advisors of Participant’s choice in connection with this Agreement and any grant of Restricted Stock, that Participant understands this Agreement and the meaning and consequences of receiving a grant of Restricted Stock and unrestricted Shares released from the Escrow upon vesting of such Restricted Stock, and is entering into this Agreement freely and without coercion or duress; and (ii) Participant has not received and is not relying, and will not rely, upon any advice, representations or assurances made by or on behalf of the Company or any of its Affiliates or any employee of or counsel to the Company or any of its Affiliates regarding any tax or other effects or implications of receiving a grant of Restricted Stock or the holding of Shares or other matters contemplated by this Agreement.

(b)  Participant is aware of the Company’s business affairs and financial condition and understands that an investment in the Shares involves a high degree of risk.  Participant is aware of the lack of liquidity of the Shares and the restrictions on transferability on the Restricted Stock and the Shares, whether vested or unvested, including that Participant may not be able to sell or dispose of them or use them as collateral for loans. 
 (c)  If at the time of issuance or release from Escrow of any Restricted Stock, there is not in effect under the Securities Act of 1933, as amended (the “Securities Act”) a registration statement covering the Shares to be issued, and available for delivery a prospectus meeting the requirements of Section 10(a)(3) of the Securities Act, Participant shall, if required by the Company, as a condition to issuance or delivery of the Shares, (i) deliver to the Company Participant’s Investment Representation Statement in the form attached hereto as Exhibit B; and/or (ii) make appropriate representations in a form satisfactory to the Company that such Shares will not be sold other than (A) pursuant to an effective registration statement under the Securities Act, or an applicable exemption from the registration requirements of such Act; (B) in compliance with all applicable state securities laws and regulations; and (C) in compliance with all terms and conditions of the Plan, this Notice, and any other written agreement between Participant and the Company or any Affiliates. 

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4.    Vesting Schedule.  The Shares will vest in accordance with the vesting schedule and other provisions set forth or referred to in the Notice of Grant, whereupon the Escrow and restrictions on transfer applicable to such vested Shares under this Agreement will lapse.  Any restrictions that lapse with respect to shares of Restricted Stock upon vesting will lapse with respect to whole Shares.  Any Shares that do not become vested and released from Escrow following a Measurement Date or termination of Participant’s Continuous Service not resulting in a Measurement Date will be forfeited to and reacquired by the Company at no cost to the Company and Participant will have no further rights with respect to such forfeited Shares.
5.    Lock-Up.  In connection with any underwritten public offering by the Company of its equity securities pursuant to a registration statement filed under the Securities Act, upon the request of the Company or the underwriters managing such offering, during the Lock-up Period (as defined below) Participant shall not, without the prior written consent of the Company or its underwriters, directly or indirectly sell (except for tax-related sales described in Section 8(d)), make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, enter into any swap, hedging or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Shares or other securities into which the Shares may be converted or that are issued in respect of the Shares (other than those included in the registration).  For this purpose, the “Lock-up Period” means such period of time after the effective date of the registration as is requested by the Company or the underwriters; provided that such period shall not exceed 180 days (or such additional period as may reasonably be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports or (ii) analyst recommendations and opinions, including (without limitation) the restrictions set forth in Rule 2711(f)(4) of the National Association of Securities Dealers and Rule 472(f)(4) of the New York Stock Exchange, as amended, or any similar successor rules).  The Company’s underwriters shall be beneficiaries of the agreement set forth in this Section 5, and Participant shall execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters that are consistent with the foregoing or that are necessary to give further effect thereto. In addition, if requested by the Company or the underwriters of Common Stock (or other securities) of the Company, Participant shall provide, within ten (10) days of such request, such information as may be required or reasonably requested by the Company or the underwriters in connection with the completion of any public offering of the Company’s securities pursuant to a registration statement filed under the Securities Act. The obligations described in this Section 5 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future.  The Company may impose stop-transfer instructions with respect to the Shares (or other securities) subject to the foregoing restriction until the end of said one hundred and eighty (180) day (or other) period. Participant agrees, and will cause any transferee to agree, that any transferee of the award of Restricted Stock or Shares acquired pursuant to the award of Restricted Stock shall be bound by this Section 5.    
6.    Section 409A.  It is the intent of this Agreement that the issuance of Restricted Shares be exempt from the requirements of Section 409A pursuant to the regulations promulgated so that none of the Shares granted under the award of Restricted Stock will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.  For purposes of this Agreement, “Section 409A” means Section 409A of the Code, and any proposed, temporary or final Treasury Regulations and Internal Revenue Service guidance thereunder, as each may be amended from time to time.
7.    Death of Participant.  Any distribution or delivery of Shares to be made to Participant under this Agreement (including the Joint Escrow Instructions) will, if Participant is then deceased, be made 

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to Participant’s designated beneficiary, or if no beneficiary survives Participant, the administrator or executor of Participant’s estate.  Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer, and (c) the agreement contemplated by Section 14(b).
8.    Tax Consequences, Withholding, and Liability. 
(a)  Participant understands that Participant may suffer adverse tax consequences as a result of the grant or vesting of the Restricted Stock and issuance and/or disposition of the Shares.  Participant understands that the actual tax consequences associated with the Restricted Stock and Shares are complicated and depend, in part, on Participant’s specific situation and may also depend on the resolution of currently uncertain tax law and other variables not within the control of the Company.  THEREFORE, PARTICIPANT SHOULD SEEK INDEPENDENT ADVICE REGARDING THE APPLICABLE PROVISIONS OF THE FEDERAL TAX LAW AND THE TAX LAWS OF ANY MUNICIPALITY, STATE OR FOREIGN COUNTRY TO WHICH PARTICIPANT IS SUBJECT.  By receiving and acknowledging this grant of Restricted Stock, Participant acknowledges and agrees that Participant has either consulted with a competent tax advisor independent of the Company to obtain tax advice concerning the Restricted Stock and Shares in light of Participant’s specific situation or has had the opportunity to consult with such a tax advisor and has chosen not to do so.  Neither the Company nor any of its employees, counsel or agents has provided to Participant, and Participant has not relied upon from the Company nor any of its employees, counsel or agents, any written or oral advice or representation regarding the U.S. federal, state, local and foreign tax consequences of the receipt, ownership and vesting of the Restricted Stock, the issuance of Shares pursuant to the grant of Restricted Stock, the other transactions contemplated by this Agreement, or the value of the Company or the Restricted Stock at any time.  With respect to such matters, Participant relies solely on Participant’s own advisors.  
(b)  Participant (and not the Company) shall be responsible for Participant’s own tax liability that may arise as a result of the receipt, ownership and vesting of the Restricted Stock, the issuance of Shares pursuant to the award of Restricted Stock, or the other transactions contemplated by this Agreement.  Pursuant to such procedures as the Board or its Committee may specify from time to time, the Company shall satisfy its obligations to pay withholding taxes or other tax deposits in connection with the receipt, ownership and/or vesting of the Restricted Stock, the issuance of Shares pursuant to the award of Restricted Stock, or the other transactions contemplated by this Agreement in the minimum amount required to satisfy such obligations in accordance with applicable law or regulation (the “Tax Obligations”).  If amounts paid by the Company in respect of Tax Obligations are less than Participant’s tax obligations, Participant is solely responsible for any additional taxes due.  If amounts paid by the Company in respect of Tax Obligations exceed Participant’s tax obligations, Participant’s sole recourse will be against the relevant taxing authorities, and the Company and its Affiliates will have no obligation to issue additional shares or pay cash to Participant in respect thereof.  Participant is responsible for determining Participant’s actual income tax liabilities and making appropriate payments to the relevant taxing authorities to fulfill Participant’s tax obligations and avoid interest and penalties.
(c)  Payment by the Company of the Tax Obligations will result in a commensurate obligation of Participant to pay, or cause to be paid, to the Company or its Affiliate the amount of Tax Obligations so paid, and the Escrow Agent shall not be required to release any of the affected Shares from the Escrow and the Company shall not be obligated to deliver any pecuniary interest in the affected Shares to the Participant unless and until Participant has satisfied this obligation. Subject to the preceding sentence, the Board or its Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, may 

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permit Participant to satisfy the Tax Obligations, in whole or in part (without limitation) by any of the following means or any combination of two or more of the following means: (i) paying cash, (ii)  having the Escrow Agent deliver to the Company Shares otherwise deliverable to Participant having a Fair Market Value equal to the amount of such Tax Obligations, (iii) having the Company withhold the amount of such Tax Obligations from Participant’s paycheck(s), (iv) delivering to the Company already vested and owned Shares having a Fair Market Value equal to such Tax Obligations, or (v) selling such number of such Shares otherwise deliverable to Participant having an aggregate Fair Market Value equal to the amount of the Tax Obligations through such means as the Company may determine in its sole discretion (whether through a broker or otherwise).   To the extent determined appropriate by the Company in its discretion, it shall have the right (but not the obligation) to cause Participant to satisfy any or all Tax Obligations by having the Escrow Agent deliver to the Company Shares otherwise deliverable to Participant having an aggregate Fair Market Value equal to the amount of such Tax Obligations. If, at the time Shares are to be issued, to the extent that those Shares cannot be sold within three months pursuant to Rule 144 and are not otherwise freely tradeable on a national securities exchange or market system (and for this purpose, a blackout pursuant to the Company’s insider trading policy will not be considered to render the Shares not freely tradeable), Participant may in Participant’s sole discretion satisfy the Tax Obligations by electing to have the Escrow Agent deliver to the Company such number of Shares otherwise deliverable to Participant, and/or by surrendering such number of Shares already delivered to Participant or other shares of the Company’s common stock, having an aggregate Fair Market Value equal to the amount of such Tax Obligations.  In order to satisfy the Tax Obligations, the Company will not withhold the amount of such Tax Obligations from Participant’s paycheck[s] and/or any other amounts payable to Participant unless the amount generated by any other method used to satisfy such Tax Obligations is not sufficient to satisfy such Tax Obligations in their entirety.
(d)  If (i) on a date that the risk of forfeiture to the Company as described in this Notice lapses with respect to some or all of the Restricted Stock (“Lapse Date”) the Company’s Common Stock is listed and trades on a recognized stock exchange or market system; and (ii) Participant incurs a tax liability on such Lapse Date as a result of such lapse, then the Applicable Percentage (as defined below) of the Restricted Stock with respect to which the risk of forfeiture shall have lapsed on the Lapse Date, shall be sold within an administratively reasonable period of time on or after the Lapse Date by a broker selected or approved by the Company at such fees and pursuant to such rules and process as the Company may reasonably approve. Participant will bear the brokerage fees and other costs associated with sales and related transmission of funds.  The net proceeds from such sale shall be remitted to the relevant tax authorities as determined by the Company for Participant’s benefit in the amounts directed by the Company, or paid to the Company in reimbursement of any Tax Obligations paid by the Company, and any remaining net proceeds shall be delivered to Participant or a brokerage account maintained for Participant.  For these purposes the “Applicable Percentage” means forty-five percent (45%), provided that the Company may in its discretion from time to time adjust the Applicable Percentage to an amount reasonably expected to be required to satisfy any or all Tax Obligations and selling expenses.  Participant shall have no right to affect or influence any adjustments that the Company may elect to make to the Applicable Percentage for this purpose.  There is no assurance that sale of the Applicable Percentage of the Shares will be adequate to cover Participant’s tax liabilities, and Participant is responsible for payment of any taxes in excess of amounts paid on behalf of Participant.
(e)  Under Section 83(a) of the Code, Participant will generally be taxed on the shares of Restricted Stock subject to this award on the date(s) such shares of Restricted Stock vest and the forfeiture restrictions lapse, based on their Fair Market Value on such date, at ordinary income rates subject to payroll and withholding tax and tax reporting, as applicable.  Under Section 83(b) of the Code, Participant may elect to be taxed on the shares of Restricted Stock on the Issuance Date, based upon their Fair Market Value on 

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such date, at ordinary income rates subject to payroll and withholding tax and tax reporting, as applicable.  If Participant elects to accelerate the date on which Participant is taxed on the shares of Restricted Stock under Section 83(b), an election (an “83(b) Election”) to such effect must be filed with the Internal Revenue Service within 30 days from the Issuance Date and applicable withholding taxes must be paid to the Company at that time.  The foregoing is only a summary of the federal income tax laws that apply to the shares of Restricted Stock under this Agreement and does not purport to be complete.  The actual tax consequences of receiving or disposing of the shares of Restricted Stock are complicated and depend, in part, on Participant’s specific situation and may also depend on the resolution of currently uncertain tax law and other variables not within the control of the Company.  THEREFORE, PARTICIPANT SHOULD SEEK INDEPENDENT ADVICE REGARDING THE APPLICABLE PROVISIONS OF THE FEDERAL TAX LAW AND THE INCOME TAX LAWS OF ANY MUNICIPALITY, STATE OR FOREIGN COUNTRY TO WHICH PARTICIPANT IS SUBJECT.  By receiving this grant of Restricted Stock, Participant acknowledges and agrees that Participant has either consulted with a competent tax advisor independent of the Company to obtain tax advice concerning the Shares in light of Participant’s specific situation or has had the opportunity to consult with such a tax advisor and has chosen not to do so.  If Participant determines to make an 83(b) Election, it is Participant’s responsibility to file such an election with the Internal Revenue Service within the 30-day period after the Issuance Date, to deliver to the Company a signed copy of the 83(b) Election, to file an additional copy of such election form with Participant ’s federal income tax return for the calendar year in which the Issuance Date occurs, and to pay applicable withholding taxes to the Company at the time that the 83(b) Election is filed with the Internal Revenue Service.  
9.    Rights as Stockholder.  Neither Participant nor any person claiming under or through Participant will have any of the rights or privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until such Shares have been issued and recorded on the records of the Company or its transfer agents or registrars.  No adjustment shall be made for any dividends (ordinary or extraordinary, whether cash, securities, or other property) or distributions or other rights for which the record date is prior to the date Shares are issued, except as provided in Section 11.  After such issuance and recordation, Participant will have all the rights of a stockholder of the Company with respect to voting such Shares and receipt of dividends and distributions on such Shares.  Any dividends or distributions payable with respect to unvested Restricted Stock will be subject to the same restrictions and vesting requirements as the shares of Restricted Stock with respect to which they are paid and shall be held in escrow by an authorized officer of the Company in accordance with the terms of the Joint Escrow Instructions attached hereto as Exhibit A.  
10.    No Guarantee of Continued Service.  PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE RESTRICTED STOCK PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY SATISFYING THE CONDITIONS SET FORTH THEREIN AND CONTINUING, PURSUANT TO THE TERMS OF THIS AGREEMENT, TO PROVIDE SERVICE AT THE WILL OF THE COMPANY (OR THE AFFILIATE EMPLOYING OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OF RESTRICTED STOCK OR ACQUIRING SHARES HEREUNDER.  PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT TO PROVIDE SERVICES FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE AFFILIATE EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANT’S SERVICE AT ANY TIME, FOR ANY REASON OR NO REASON, WITH OR WITHOUT NOTICE, AND WITH OR WITHOUT CAUSE.  

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11.    Capital Structure Adjustments.  Except as otherwise provided herein, appropriate and proportionate adjustments shall be made in the number and class of Shares (or any other securities or other property as to which the Shares may be exchanged for, converted into, or otherwise transferred) subject to the award of Restricted Stock in the event of a stock dividend, stock split, reverse stock split, recapitalization, reorganization, merger, consolidation, separation, or like change in the capital structure of the Company that directly affects the class of shares to which such Shares belong. 

12.    Additional Conditions to Issuance of Stock.  

(a)    Legal and Regulatory Compliance. The issuance and release from Escrow of Shares shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities.  If at any time the Company determines, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary as a condition to the issuance or release from Escrow of Shares to Participant (or his or her estate), such issuance or delivery will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company.  If the Company determines that the issuance or delivery of any Shares will violate federal securities laws or other applicable laws or regulations or the requirements of any exchange or market system upon which the Shares are listed, the Company may defer issuance or release from Escrow until the earliest date at which the Company reasonably anticipates that the issuance or release from Escrow of Shares will no longer cause such violation.  The Company will make all reasonable efforts to meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval of any such governmental authority, but the inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance or release from Escrow of any Shares shall relieve the Company of any liability in respect of the failure to issue or release from Escrow such Shares as to which such requisite authority shall not have been obtained.  As a condition to the issuance or release from Escrow of Shares, the Company may require Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.

(b)    Obligations to the Company.  As a condition to vesting and release from Escrow of any shares of Restricted Stock, Participant must enter into the Company’s Intellectual Property Assignment and Confidential Information Agreement, or a similar or successor agreement for the protection of the Company’s intellectual property and confidential information, in form specified by the Company (the “Proprietary Interests Agreement”), if the Participant has not already done so, and Participant’s receipt of any Shares released from the Escrow will constitute Participant’s agreement to the Proprietary Interests Agreement.  If Participant breaches in any material respect the Proprietary Interests Agreement or any other contract between Participant and the Company, or Participant’s common law duty of confidentiality or trade secret protection, the Company may suspend any vesting of any Restricted Stock pending Participant’s cure of such breach. 
13.    Handling of Shares; Restrictive Legends and Stop-Transfer Orders.
(a)    Certificates or Book Entries.  The Company may in its discretion issue physical certificates representing Shares, or cause the Shares to be recorded in book entry or other electronic form and reflected in records maintained by or for the Company.  The Secretary of the Company, or such other escrow holder as the Secretary may appoint, shall retain physical custody of any certificate representing Shares that have not vested and been released from Escrow.

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(b)    Legends.  Each certificate or data base entry representing any Shares may be endorsed with legends substantially as set forth below, as well as such other legends as the Company may deem appropriate to comply with applicable laws and regulations:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A PERIOD OF TIME FOLLOWING THE EFFECTIVE DATE OF ANY UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S SECURITIES SET FORTH IN AN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER PRIOR TO THE EXPIRATION OF SUCH PERIOD WITHOUT THE CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING REQUIREMENTS AND RESTRICTIONS ON TRANSFER SET FORTH IN A RESTRICTED STOCK AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.  SUCH REQUIREMENTS AND RESTRICTIONS IN FAVOR OF THE ISSUER OR ITS ASSIGNEE(S) ARE BINDING ON THE TRANSFEREES OF THESE SHARES.

(c)    Stop-Transfer Notices.  In order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

(d)    Refusal to Transfer.  The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or any other agreement to which the Shares are subject or any laws governing the Shares or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.  

14.    Restrictions on Transfer.  
(a)  Restricted Stock.  Except as otherwise expressly provided in this Agreement, the Restricted Stock that has not vested and been released from Escrow and the rights and privileges conferred by this Agreement will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of any Restricted Stock that has not vested and been released from Escrow or any right or privilege conferred by this Agreement, or upon any attempted sale under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void.  
(b)  Restrictions Binding on Transferees.   In addition to any other restrictions set forth herein, any transfer of Shares that have not vested and been released from Escrow or any interest therein shall be conditioned upon the transferee agreeing in writing, on a form prescribed by the Company, to be bound by all provisions of this Agreement.  Any sale or transfer of the Shares shall be void unless the provisions of this Agreement are satisfied.  

10

15.    Additional Agreements.  
(a)  Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to Restricted Stock by electronic means or request Participant’s consent to participate in the Plan by electronic means.  Participant hereby consents to receive such documents by electronic delivery and agrees to administration of this Agreement, the Restricted Stock through any on-line or electronic system established and maintained by the Company or another third party designated by the Company.
(b) Personal Information. To facilitate the administration of the Plan and this Agreement, it may be necessary for the Company (or its payroll administrators) to collect, hold and process certain personal information about Participant, including, but not limited to, Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of Company Common Stock or directorships held in the Company, details of all awards issued under the Plan or any other entitlement to shares of Company Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”) and to transfer this Data to certain third parties such as transfer agents, stock plan administrators, and brokers with whom Participant or the Company may elect to deposit any Shares.  Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant’s Data for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan.  Participant understands that Data will be transferred to the Company’s transfer agent, broker, administrative agents or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  Participant understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than Participant’s country.  Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  The Participant authorizes the Company, the Company’s broker, administrative agents, and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Participant’s participation in the Plan.  The Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant’s participation in the Plan.  The Participant understands if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative.  Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis.  If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her employment status or service and career with the Company will not be adversely affected; the only adverse consequence of refusing or withdrawing Participant's consent is that the Company would not be able to grant Restricted Stock or other equity awards or administer or maintain such awards.  Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participant’s ability to participate in the Plan.  For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative. Finally, upon request of the Company, Participant agrees to provide an executed data privacy consent form to the Company that the Company may deem necessary to obtain under applicable data privacy laws or regulations, either now or in the future.  Participant understands that he or she will not be able to participate in the Plan if he or she fails to execute any such consent or agreement. 

11

(c)  Proprietary Information.  Participant agrees that all financial and other information relating to the Company furnished to Participant constitutes “Proprietary Information” that is the property of the Company.  Participant shall hold in confidence and not disclose or, except within the scope of Participant’s Service, use any Proprietary Information.  Participant shall not be obligated under this paragraph with respect to information Participant can document is or becomes readily publicly available without restriction through no fault of Participant.  Upon termination of Participant’s employment, Participant shall promptly return to Company all items containing or embodying Proprietary Information (including all copies).  This paragraph supplements, but does not limit, any other agreement between Participant and the Company, or any applicable law, related to protection, ownership, or use of the Company’s information or property.
(d)  Consideration.  Except as may otherwise be set forth in the applicable Notice of Grant, Restricted Stock is issued in consideration of services provided by Participant and/or other benefit to the corporation within the meaning of Section 152 of the General Corporation Law of the State of Delaware; Participant is not required to make any cash payment to the Company in respect of issuance or delivery of Restricted Stock.
16.    General.
(a)  No Waiver; Remedies.  Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision , or prevent that party from thereafter enforcing such provision and each and every other provision of this Agreement.  The rights granted both parties herein are cumulative and shall not constitute a waiver of either party’s right to assert all other legal remedies available to it under the circumstances.
(b)  Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Participant and Participant’s heirs, executors, administrators, successors and assigns.  The rights and obligations of Participant under this Agreement may only be assigned with the prior written consent of the Company.
(c)  Notices.  Any notice under this Agreement shall be in writing (which shall include electronic transmission) and shall be deemed received (i) the business day following electronic verification of receipt if sent electronically, (ii) upon personal delivery to the party to whom the notice is directed, (iii) the business day following deposit with a reputable overnight courier, or (iv) five days after deposit in the U.S. mail, First Class with postage prepaid.  Notice shall be addressed to the Company at its principal executive office and to Participant at the address that he or she most recently provided to the Company.  Participant agrees that it is Participant’s responsibility to notify the Company of any changes to his or her mailing address so that Participant may receive any shareholder information to be delivered by regular mail.

(d)  Interpretation.  Headings herein are for convenience of reference only, do not constitute a part of this Agreement, and will not affect the meaning or interpretation of this Agreement.  References herein to Sections are references to the referenced Section hereof, unless otherwise specified.  The Board or its Committee will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any shares of Restricted Stock have vested).  All actions taken and all interpretations and determinations made by the Plan Administrator in good faith will be final and binding upon Participant, the Company and all other interested 

12

persons.  Neither the Board or its Committee nor any person acting on behalf of the Board or its Committee will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.  
(e)  Modifications to the Agreement.  Modifications to this Agreement can be made only in an express written contract executed by a duly authorized officer of the Company and shall not require the consent of the Participant unless such modification would materially adversely affect the rights of the Participant under this Agreement.  Notwithstanding anything to the contrary in the Plan or this Agreement, the Company reserves the right to revise this Agreement as it deems necessary or advisable, in its sole discretion and without the consent of Participant, to comply with Section 409A or to otherwise avoid imposition of any additional tax or income recognition under Section 409A in connection to this award of Restricted Stock.
(f)  Governing Law; Severability.  This Agreement is governed by the internal substantive laws, but not the choice of law rules, of Delaware.  If any provision of this Agreement becomes or is declared by a court or arbitrator having jurisdiction over a dispute hereunder to be illegal, unenforceable or void, such provision shall be amended to the extent necessary to conform to applicable law so as to be valid and enforceable and to achieve, to the extent possible, the economic, business and other purposes of such illegal, unenforceable, or void provision or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision shall deleted from this Agreement and the remainder of this Agreement shall continue in full force and effect. 
(g)  Entire Agreement. The Plan is incorporated herein by reference. The Plan and this Agreement (including the exhibits referenced herein, including the Joint Escrow Instructions), along with any Separate Agreement (to the extent applicable) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof. Participant expressly warrants that Participant is not executing this Agreement in reliance on any promises, representations, or inducements other than those contained herein.  Participant has read and understands the terms and provisions of the Plan and this Agreement, and agrees with the terms and conditions of this grant of Restricted Stock in accordance with the Plan and this Agreement.
(h)  Counterparts.  This Agreement may be executed in more than one counterpart, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument.  Facsimile or photographic copies of originally signed copies of this Agreement will be deemed to be originals.

13

EXHIBIT A

EXPLANATORY COVER SHEET
JOINT ESCROW INSTRUCTIONS
These Joint Escrow Instructions are intended for use with The Rubicon Project, Inc. 2014 Stock Incentive Plan Market Stock Award Agreement (the “Restricted Stock Agreement”).  
These Joint Escrow Instructions are used for issuances of shares of the Corporation’s Common Stock subject to vesting (“Restricted Stock”) pursuant to the Restricted Stock Agreement.  The Restricted Stock is subject to forfeiture to the Corporation unless and until the Restricted Stock shall have vested in the manner set forth in the Restricted Stock Agreement and the restrictions set forth in the Restricted Stock Agreement shall have lapsed.  The Restricted Stock is also subject to various restrictions on transfer as set forth in the Restricted Stock Agreement until the time that the Common Stock is publicly traded and any lock-up period has expired or a Change in Control of the Corporation occurs. The Escrow Agent, generally the Secretary, Assistant Secretary or General Counsel of the Corporation, holds any stock certificate or other documentation representing the shares underlying the grant of Restricted Stock in escrow in a secure location.  If the Corporation is holding the certificate or other documentation, please use the following procedures:
Get an originally signed copy of the Restricted Stock Agreement and the Joint Escrow Instructions.
Place these original documents, together with any original stock certificate or other original documentation representing the escrowed shares and a copy of the check used for payment (if applicable) in a secure (preferably locked) location.  These documents should be delivered personally to the Escrow Agent.  The documents should be in an envelope (one for each grantee) clearly labeled with the grantee’s name and the grant number on the outside.
Place a note in any other files or records referring to the Restricted Stock Agreement that the original stock certificate or other documentation has been transferred to the secure location on a specific date.  Put a copy of the stock certificate or other documentation, the Restricted Stock Agreement and the Joint Escrow Instructions in a separate file used for day to day administration of the 2014 Equity Incentive Plan.
Calendar the expiration of the vesting on the administrative calendar so that the shares can be released from escrow in a timely manner.  Confirm that the restrictions on transfer have lapsed before releasing any shares from escrow, even vested shares.

14

JOINT ESCROW INSTRUCTIONS
[Escrow Agent]THE RUBICON PROJECT, INC. 
12181 BLUFF CREEK DRIVE, 4TH FLOOR 
LOS ANGELES, CALIFORNIA 90094
Dear Sir:
As Escrow Agent for both The Rubicon Project, Inc., a Delaware corporation (“Corporation”), and the undersigned grantee of stock of the Corporation (“Grantee”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain The Rubicon Project, Inc. 2014 Equity Incentive Plan Market Stock Award Agreement (“Agreement”), dated ________, to which a copy of these Joint Escrow Instructions is attached as Exhibit A, in accordance with the following instructions:
These Joint Escrow Instructions are used for issuances of shares of the Corporation’s Common Stock subject to vesting (“Restricted Stock”) pursuant to the Agreement.  The Restricted Stock is subject to forfeiture to the Corporation unless and until the Restricted Stock shall have vested in the manner set forth in the Agreement and the restrictions set forth in the Agreement shall have lapsed.  At such time, the shares underlying the Restricted Stock shall be released from escrow to the Grantee.
Any dividends or distributions payable with respect to unvested Restricted Stock will be subject to the same restrictions as the shares of Common Stock underlying the Restricted Stock with respect to which they are paid and will be deposited in the Escrow and held by the Escrow Agent, and will be released from the Escrow at the same time as the underlying shares of Restricted Stock.
In the event the Restricted Stock shall fail to vest as set forth in the Agreement, the Corporation or its assignee will give to Grantee and you a written notice specifying the number of shares of stock to be forfeited to the Corporation, the purchase price (if any), and the time for a closing hereunder at the principal office of the Corporation.  Grantee and the Corporation hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of said notice.
At the closing you are directed (a) to date any stock assignments necessary for the transfer in question, (b) to fill in the number of shares being transferred, and (c) to deliver same, together with any certificate or other documentation evidencing the shares of stock to be transferred, to the Corporation against the simultaneous delivery to you of the purchase price (if any) of the number of shares of stock being forfeited to the Corporation.
Grantee irrevocably authorizes the Corporation to deposit with you any certificates or other documentation evidencing shares of stock to be held or controlled by you hereunder and any additions and substitutions to said shares as specified in the Agreement.  Grantee does hereby irrevocably constitute and appoint you as Grantee’s attorney-in-fact and agent for the 

15

term of this escrow to execute with respect to such securities and other property all documents of assignment and/or transfer and all stock certificates or other documentation necessary or appropriate to make all securities negotiable and complete any transaction herein contemplated.
This escrow shall terminate upon vesting of the Restricted Stock but only if the restrictions placed on the Restricted Stock and described in the Agreement relating to restrictions on transfer shall have lapsed.  At such time, the shares underlying the Restricted Stock shall be released to the Grantee but only upon Grantee’s satisfaction of any and all Tax Obligations (as defined in the Agreement) and other applicable conditions under the Restricted Stock Agreement and the Plan.  
If at the time of termination of this escrow you have in your possession any documents, securities, or other property belonging to Grantee, you shall deliver all of same to Grantee and shall be discharged of all further obligations hereunder; provided, however, that if at the time of termination of this escrow you are advised by the Corporation that the property subject to this escrow is the subject of a pledge or other security agreement, you shall deliver all such property to the pledgeholder or other person designated by the Corporation.
Except as otherwise provided in these Joint Escrow Instructions, your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto.
You shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties or their assignees.  You shall not be personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for Grantee while acting in good faith and any act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of such good faith.
You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, excepting only orders or process of courts of law, and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court.  In case you obey or comply with any such order, judgment or decree of any court, you shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction.
You shall not be liable in any respect on account of the identity, authority or rights of the parties executing or delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder.
You shall not be liable for the outlawing of any rights under any statute of limitations with respect to these Joint Escrow Instructions or any documents deposited with you.

16

Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an employee of the Corporation or if you shall resign by written notice to each party.  In the event of any such termination, the Corporation may appoint any officer or assistant officer of the Corporation as successor Escrow Agent and Grantee hereby confirms the appointment of such successor or successors as Grantee’s attorney-in-fact and agent to the full extent of your appointment.
If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall cooperate in furnishing such instruments.
It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the securities, you are authorized and directed to retain in your possession or control without liability to any person all or any part of said securities until such dispute shall have been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment of a court of competent jurisdiction after the  time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to institute or defend any such proceedings.
Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, delivery by express courier or five days after deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties hereunto entitled at the following addresses, or at such other addresses as a party may designate by ten days’ advance written notice to each of the other parties hereto:
CORPORATION:    THE RUBICON PROJECT, INC.
12181 Bluff Creek Drive, Suite 400
Los Angeles, CA  90094
Attn: General Counsel
GRANTEE:    NAME
    
    
ESCROW AGENT:    [Name]
The Rubicon Project, Inc.
12181 Bluff Creek Drive, Suite 400
Los Angeles, CA  90094
By signing these Joint Escrow Instructions you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Agreement.
You shall be entitled to employ such legal counsel and other experts (including without limitation the firm of Gibson, Dunn & Crutcher LLP) as you may deem necessary properly to advise you in connection with your obligations hereunder.  You may rely upon the advice of such 

17

counsel, and may pay such counsel reasonable compensation therefor.  The Corporation shall be responsible for all fees generated by such legal counsel in connection with your obligations hereunder.
This instrument shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  It is understood and agreed that references to “you” or “your” herein refer to the original Escrow Agent and to any and all successor Escrow Agents.  It is understood and agreed that the Corporation may at any time or from time to time assign its rights under the Agreement and these Joint Escrow Instructions in whole or in part.
This Agreement shall be governed by and interpreted and determined in accordance with the laws of the State of California, as such laws are applied by the California courts to contracts made and to be performed entirely in California by residents of that state.
Very truly yours,
	
					
	 
	 
	 
	 
	 

	 
	 
	 
	THE RUBICON PROJECT, INC.:
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	GRANTEE:
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	NAME
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	ESCROW AGENT:
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

18

EXHIBIT B
INVESTMENT REPRESENTATION STATEMENT

PARTICIPANT     :    

COMPANY    :    THE RUBICON PROJECT, INC.

SECURITY    :    COMMON STOCK

AMOUNT    :    
DATE            :    
    
In connection with the receipt of the above-listed Securities, the undersigned Participant represents to the Company the following:
(a)Participant is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Participant is acquiring these Securities for investment for Participant’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).
(b)    Participant acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Participant’s investment intent as expressed herein. In this connection, Participant understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Participant’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future. Participant further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Participant further acknowledges and understands that the Company is under no obligation to register the Securities. Participant understands that the certificate evidencing the Securities shall be imprinted with any legend required under applicable securities laws and regulations.
(c)    Participant is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions.  Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of Restricted Stock to Participant, the grant shall be exempt from registration under the Securities Act.  In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of the applicable conditions specified by Rule 144, including in the case of Affiliates (1) the availability of certain public information about the Company, (2) the amount of Securities being sold during any three (3) 

19

month period not exceeding specified limitations, (3) the resale being made in an unsolicited “broker’s transaction”, transactions directly with a “market maker” or “riskless principal transactions” (as those terms are defined under the Securities Exchange Act of 1934) and (4) the timely filing of a Form 144, if applicable.

If the Company does not qualify under Rule 701 at the time of grant of Restricted Stock, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require (i) the availability of current public information about the Company; (ii) the resale to occur more than a specified period after the purchase and full payment (within the meaning of Rule 144) for the Securities; and (iii) in the case of the sale of Securities by an Affiliate, the satisfaction of the conditions set forth in sections (2), (3) and (4) of the paragraph immediately above.
(d)    Participant further understands that if all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption shall be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 shall have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Participant understands that no assurances can be given that any such other registration exemption shall be available in such event.
	
					
	 
	 
	 
	 
	 

	 
	 
	 
	PARTICIPANT:
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Signature
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Print Name
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Date:
	 

 

20Exhibit 4.3

 

Alcobra
Ltd.

 

The 2010 Incentive Option Plan

 

 

		1.	PURPOSE OF THE PLAN

 

The purpose of this 2010 Incentive
Option Plan (the “Plan”) is to advance the interests of Alcobra Ltd. (the “Company”) and
its shareholders by attracting and retaining the best available personnel for positions of substantial responsibility, providing
additional incentive to employees, office holders and service providers and promoting a close identity of interests between those
individuals and entities and the Company.

 

		2.	DEFINITIONS

 

As used
herein, the following definitions shall apply:

		2.1.	"Administrator" means the Board or the Committee, as shall administer the Plan,
as set forth herein.

		2.2.	“Articles” mean the Company’s Articles of Association, as amended from
time to time.

		2.3.	"Board" means the Board of Directors of the Company.

		2.4.	"Committee" means the Company’s compensation committee, or in the case there
is no such committee, a committee appointed in order to administer the Plan, and until such committee is appointed, the Board.

		2.5.	“Companies Law” means the Israeli Companies Law 5759 - 1999.

		2.6.	"Employee" means: (I) any person, employed by the Company or employed by any Related
Entity; and (II) any Office Holder (as such term is defined in the Companies Law), officer or Director of the Company or a Related
Entity.

		2.7.	“Exercise Price” means the price that is to be paid in order to exercise an
Option.

		2.8.	“Group” means the Company and the Related Entities taken together.

		2.9.	“IPO” means an initial public offering of the Company's Shares.

		2.10.	"Option" means an option to purchase a Share according to the provisions of this
Plan.

		2.11.	“Option Grant” means a single grant of Options to a certain Participant as determined
by the Board or the Committee.

 

    	 

    	-2-

    

 

		2.12.	"Option Grant Letter Agreement" means the notice letter attached to this Plan
as Exhibit A.

		2.13.	"Participant" means a person or entity that has been granted Options.

		2.14.	“Related Entity” means any parent or subsidiary of the Company. In addition,
Related Entity shall include any business, corporation, partnership, limited liability company or other entity in which the Company,
or the Company’s parent or a subsidiary holds a substantial ownership and/or interest, directly or indirectly, and is determined
by the Board to be a Related Entity.

		2.15.	“Service Provider” means a person or entity who is engaged by the Company or
any Related Entity to render services (e.g., consulting services, advisory services, development services, marketing and sale services
or any other services, including suppliers) to the Company or a Related Entity.

		2.16.	"Share" means the Company’s Ordinary Share of NIS 0.01 par value, or that
was issued following an exercise of an Option.

		2.17.	“Total Option Amount” means the amount of Options granted to a Participant in
a single Option Grant.

 

		3.	ADMINISTRATION OF THE PLAN

 

		3.1.	Subject to the provisions of the Plan, any applicable law, the Articles and any other binding commitments
taken by the Company, the Board or the Committee shall have the power and authority to administer the Plan. Such power and authority
shall include, but not be limited to: (i) approval of Option Grants and the determination of the terms and provisions of
respective Option Grants, including, the vesting schedules of the Options; the Exercise Price thereof; provisions concerning the
time or times when and the extent to which Options may be exercised; the nature and duration of restrictions as to transferability;
or any other special conditions relating to an Option Grant; (ii) the acceleration of any Participant’s right to exercise
Options, in whole or in part; (iii) the interpretation of the provisions of the Plan; (iv) altering, amending or rescinding any
resolution or act previously taken by the Committee; and (v) the determination of any other matter which is necessary or desirable
for, or incidental to, the administration of the Plan, as set forth in the Plan.

		3.2.	Notwithstanding the above, the Board shall have the power and authority to take any act the Committee
is empowered and authorized to take, and to alter amend or rescind any act or resolution taken by the Committee.

 

    	 

    	-3-

    

 

		3.3.	The Committee shall consist of such number of directors as may be appointed by the Board.

		3.4.	The Board shall have the exclusive discretion and power to grant Options. Such power may be delegated
by the Board to the Committee subject to the provisions of the Companies Law.

		3.5.	All Committee resolutions and decisions, including the interpretation and construction of any provision
of the Plan, shall be final and conclusive unless otherwise determined by the Board.

		3.6.	No member of the Board or of the Committee shall be held liable for any act or determination made
in good faith with respect to the Plan or any Option Grant.

 

		4.	SHARES RESERVED FOR THE PLAN

 

		4.1.	Subject to adjustments, as set forth in Section 9 below, a total of 3,078,102 Ordinary
                                                                   Shares, of NIS 0.01 par value each, from the Company’s authorized share capital shall be reserved and subject to the
                                                                   Plan (the “Reserved Shares”).

		4.2.	Until termination of the Plan the Company shall at all times reserve sufficient number of Ordinary
Shares in its authorized share capital to cover for all Reserved Shares that were not issued.

		4.3.	Without derogating from Section 4.2 above:

		4.3.1.	The Company need not reserve Shares with respect to Options that terminated, expired or were canceled
for any reason prior to exercise thereof.

		4.3.2.	In the case that there are certain Reserved Shares, which remain unissued and which are not subject
to outstanding Options, then the Board may resolve that such Reserved Shares shall cease to be reserved.

 

		5.	DESIGNATION OF PARTICIPANTS; OPTION GRANTS

 

		5.1.	The Board may grant Option Grants to the following persons and entities:

		5.1.1.	Employees.

		5.1.2.	Service Providers and their employees.

		5.2.	Unless determined otherwise by the Board or Committee, a Participant shall not be required to pay
any consideration for an Option Grant.

 

    	 

    	-4-

    

  

		6.	VESTING; EXERCISE PERIOD 

 

		6.1.	Unless determined otherwise by the Committee or Board, upon approval of the Option Grant or thereafter,
Options underlying an Option Grant shall vest over four years, commencing on the vesting commencement date (the "Vesting
Commencement Date") as determined by the Committee.

		6.2.	The vesting schedule of each Option Grant shall be as determined by the Committee. However, unless
determined otherwise by the Committee or Board, upon approval of the Option Grant or thereafter, the following shall apply:

25% of the
Total Option Amount shall vest on the first anniversary of the Vesting Commencement Date, and additional 6.25% of the Total Option
Amount shall vest on the last day of each three months period immediately after the first anniversary of the Vesting Commencement
Date.

In the case
that as a consequence of the vesting schedule mentioned above a fraction of vested Option is created, then such fraction shall
be rounded up or down, as determined by the Board.

		6.3.	Notwithstanding anything to the contrary in this Plan, all Options shall terminate and not bestow
any rights on their owner after ten years from the date the Options were granted. All Options that have not been exercised by such
date shall expire immediately and the Participants shall not have any claim against the Company with respect thereto.

		6.4.	The period within which Options are exercisable shall be called the “Exercise Period”.
Options which have not been exercised during the Exercise Period shall expire immediately, and will be automatically returned to
the Options pool and may be re-allocated.

 

		7.	TERMINATION OF EMPLOYMENT WITH THE GROUP 

 

In the event
that the Participant is an Employee at the time of the Option Grant, whose employment with the Group was subsequently terminated,
for whatever reason but subject to Section 7.6 (including but not limited to (i) dismissal of a Participant or (ii) a Participant’s
resignation, or (iii) death of a Participant or (iv) disability of a Participant), then the following provisions shall apply:

		7.1.	The date on which employment was terminated under applicable labor laws, or, in the case an Employee
is not an employee under applicable labor laws the date in which such Employee ceases to be an Employee as defined in the Plan,
shall be deemed the date in which such Employee’s employment was terminated (“Employment Termination Date”).

		7.2.	On the Employment Termination Date all Options that are not vested shall immediately expire.

 

    	 

    	-5-

    

 

		7.3.	In the event that the Participant's termination of employment is not due to the Participant's death
(but does include termination due to Disability), then the Participant will be entitled to exercise all, or part of, the vested
Options that have not expired, for a period of thirty (30) days after the Employment Termination Date. After such thirty days period,
all unexercised Options will automatically expire.

For purposes
of this Section 7.3, "Disability" shall mean the inability in 100%, due to illness or injury, to engage in any gainful
occupation for which the individual is suited by education, training or experience, which condition continues for at least six
(6) months.

		7.4.	Notwithstanding the above, in the event of termination of employment due to the Participant's death
or Disability, the Participant (if applicable) or Participant's estate, or other person who acquired the right to exercise the
Options by way of bequest or inheritance, may, but only within six (6) months after the date of such death or the Employment Termination
Date (in the case of Disability), exercise all, or part of, the vested Options that have not expired. After such six (6) months
period, all unexercised options shall automatically expire.

		7.5.	Notwithstanding Section 7.3 above, all Options granted to a certain Employee (whether vested or
unvested) will immediately expire if the termination of the Participant’s employment is due to Participant’s breach
of his/her employment agreement (whether written or oral) including without limitation, a breach of non compete obligations, or
breach of his/her fiduciary duties towards the Company or a Related Entity as determined by the Committee or the Board, in their
sole discretion, or in the case that competent court or other authority resolves that such employee is not entitled to discharge
compensation.

		7.6.	For the purposes of this Plan, the Committee or Board is authorized to determine if and when a
Participant terminated his/her employment with the Company, and due to what reason, subject to the provisions of Israeli labor
laws with respect to Israeli employees.

		7.7.	The Committee or the Board shall be entitled, prospectively and retroactively, to extend the periods
in which Options (either vested or unvested) do not expire and remain exercisable after the Employment Termination Date.

 

		8.	TERMINATION OF ENGAGEMENT WITH THE GROUP 

 

In the event that a Participant
is not an Employee, and the agreement of such Participant with the Group is terminated, then, unless otherwise specified in the
Option Grant Letter Agreement, or otherwise determined by the Committee, on the date of such termination, all Options that have
not vested by then shall expire and the vested options shall remain exercisable as specified in sections 7.3, 7.4 or 7.5, as the
case may be, which shall apply mutatis mutandis to such Participant (where if such Participant has more than one agreement
with the Group, then the foregoing shall apply to the Options underlying the terminated agreement or issued in connection therewith).

 

    	 

    	-6-

    

 

		9.	ADJUSTMENTS 

 

		9.1.	Merger, Sale of the Company or Sale of the Company’s Assets.

In the event
of a merger of the Company into another corporation, in a way that the Company shall no longer continue to exist as a legal entity
subsequent to such merger, the sale of all, or substantially all of the Company’s issued and outstanding shares to a third
party or the sale of all, or substantially all of the assets of the Company (each of them, a “Transaction”),
then the following provisions shall apply:

		9.1.1.	Each outstanding Option shall be assumed by, or an equivalent option shall be substituted by the
successor corporation or a parent or subsidiary of the successor corporation.

		9.1.2.	In the event that the successor corporation does not agree to assume the Options or to substitute
them with equivalent options, the Committee may in lieu of such assumption or substitution, provide for the Participant to have
the right to exercise the Options as to all, or part of the Shares, including certain Shares as to which it would not otherwise
be exercisable.

		9.1.3.	In addition to Section 9.1.2 above, and if Section 9.1.1 does not apply, the Committee may notify
the Participants that all Options that are exercisable shall remain so for a period of no less then seven (7) days from the date
of such notice, and that all Options will terminate upon the expiration of such period. In any case, the Committee may condition
the termination of all said Options upon consummation of the Transaction.

		9.2.	Bonus Shares

In the event
that the Company issues any of its shares as bonus shares to all its shareholders, on a pro rata basis, then the number of Shares
received upon exercise of certain Options shall be increased to the number of Shares the Participant would have held after the
issuance of the bonus shares had such Participant exercised such Options immediately before the issuance of the bonus shares.

		9.3.	Reorganization; Separation

If the Company
is separated, reorganized, or consolidated with another corporation (other than as part of a Transaction) while Options which were
not yet exercised remain outstanding under this Plan, the Company shall use reasonable efforts to maintain the rights of each Participant
through such separations, reorganizations or consolidations, or compensate the Participant for such event in lieu of the Options
such Participant holds. The Committee, at its sole discretion, shall determine what steps shall be taken according to this section
9.3.

 

    	 

    	-7-

    

 

		9.4.	Changes in Capitalization

If the outstanding
shares of the Company shall at anytime be changed or exchanged by declaration of a share split, reverse share split, combination
or reclassification of Ordinary Shares, or any other increase or decrease in the number Company’s Ordinary Shares effected
without receipt of consideration by the Company from the shareholders, then the number, class and kind of Shares subject to this
Plan or subject to any Options therefore granted, and the Exercise Prices of the Options, shall be appropriately and equitably
adjusted so as to maintain the proportionate number of Shares without changing the aggregate Exercise Prices of the Options (except
in case the Exercise Price is equal to the par value of the shares, in which case the Exercise Price will be increased respectively).
However no adjustment shall be made by reason of the distribution of subscription rights on outstanding shares, or conversion of
securities into shares of the Company.

		9.5.	Other terms and conditions

		9.5.1.	The allocation of each Option Grant hereunder is subject to the relevant Participant’s agreement
to sign any document he/she is required to sign pursuant to the provisions of this section 9. If a Participant refuses to sign
any such documents, the Committee or Board may determine that the Options held by the Participant or by a trustee for such Participant’s
benefit shall immediately expire.

		9.5.2.	Such adjustments as mentioned in this Section 9 shall be made by the Committee, whose determination
in such respect shall be final, binding and conclusive.

		9.5.3.	Anything herein to the contrary notwithstanding, if prior to an IPO, there is a bona fide offer
to purchase all or substantially all of the issued and outstanding shares of the Company, or upon a reorganization separation or
the like, all or substantially all of the shares of the Company are to be exchanged for securities of another company, then each
Participant shall be obliged to sell or exchange (in accordance with the value of such Participant’s Options and Shares pursuant
to the terms of such transaction) as the case may be, any Shares such Participant purchases hereunder, in accordance with the instructions
issued by the Board in connection with such transaction, which will be given according to a policy of the Board concerning all
of the Participants under the Plan.

 

		10.	ASSIGNABILITY AND SALE OF OPTIONS

 

No Option
shall be assignable, transferable, given as collateral, hypothecated pledged or encumbered and no right with respect to the Options
shall be given to any third party whatsoever, and during the lifetime of each Participant, each and all of such Participant’s
rights to purchase Shares hereunder shall be exercisable only by such Participant.

 

    	 

    	-8-

    

 

		11.	TERM AND EXERCISE OF OPTIONS

 

		11.1.	Options shall be exercised by a Participant by giving written notice to the Company, in the form
substantially attached hereto as Exhibit B or such other form(s) and method as may be determined by the Company from
time to time (the “Exercise Notice”).

		11.2.	The Exercise Price shall be payable upon the exercise of the Option in cash or by check, or other
form satisfactory to the Committee.

		11.3.	The Exercise Price will be paid in NIS, or if the Exercise Price is fixed in U.S. dollars, in U.S.
dollars or in accordance with the representative rate of exchange of the U.S. dollar, last published by the Bank of Israel at the
time of actual payment, or as provided for by the Company.

		11.4.	Each Participant will be entitled to exercise, upon signing the Exercise Notice and any additional
documents as required by the Company, and paying the Exercise Price, all, or part of the Options that are vested at the Exercise
Period.

		11.5.	Options shall not be deemed exercised unless: (I) the Company receives duly signed Exercise Notice
including all relevant details; and (II) the Company receives the Exercise Price.

		11.6.	The Options may be exercised only to purchase whole Shares, and in no case may a fraction of a
Share be purchased. If any fractional Shares would be deliverable upon exercise, such fraction shall be rounded up or down, to
the nearest whole number. Half of a Share will be rounded up.

		11.7.	Each Option granted under this Plan shall be exercisable during the Exercise Period. Subject to
adjustments, as set forth in Section 9 above, the exercise of one Option shall entitle the Participant to hold one Share.

		11.8.	Without derogating from any restrictions mentioned hereinabove, the exercise of the Options is
being subject to the following terms, restrictions and conditions as may be in effect on the time of the exercise of the Options
is requested: (i) any applicable law or regulation; (ii) any order or limitation set by any stock exchange in which the Company’s
securities may be traded (e.g., blackout periods, and lock up after an IPO); and (iii) any limitation undertaken by the Company
with respect of the shares of the Company, including limitations set forth by Company’s underwriters. Such period of restriction
of sale or exercise shall not be counted as part of the applicable exercise period.

 

    	 

    	-9-

    

 

		11.9.	Notwithstanding the foregoing, starting as of the Employment Termination Date of a certain Participant
and during the period that the vested Options are exercisable, the Company shall be entitled (subject to the provisions of applicable
law) to purchase the vested Options held by such Participant by sending the Participant a purchase notice (the "Purchase
Notice"). The purchase price of each Option shall be the Market Value of an Ordinary Share less the Exercise Price of
the Option. The Market Value of an Ordinary Share shall be determined as follows: (i) in case the Company's shares are listed on
a stock exchange, the Market Value shall be the average price of the Shares during 5 days prior to the Purchase Notice; or (ii)
in case the Company's shares are not traded, the Market Value shall be the value determined in good faith unanimously by the Board
and in the event the Board members are unable to reach an agreement with respect to the Market Value within 10 days of the
Purchase Notice to the Participant, the Board will refer to an external expert. The Committee or the Board shall be entitled
to establish further processes for the purchase of the Options as set forth above, provided, however, that if the Company receives
the Participant’s Exercise Notice prior to the receipt of the Purchase Notice from the Company, then the Company’s
right to purchase the said Options shall become null and void and the Participant may exercise the vested Options pursuant to their
terms.

 

		12.	RIGHTS AND OBLIGATIONS ATTACHED TO THE SHARES

 

		12.1.	No Participant shall have any of the rights or privileges of a shareholder of the Company with
respect to any of the Shares, unless and until, following exercise, the registration of the Participant as holder of such Shares
in the Company’s register of members is duly completed.

		12.2.	The rights and obligations attached to the Shares will be as set forth in the Articles. The Shares
may be subject to rights of first refusal, co-sale rights and other rights specified in the Articles.

		12.3.	The Participant waives any of the following rights to the extent such rights are attached to the
Shares: (i) pre-emptive rights in relation to issuance of new securities in the Company; (ii) rights of first refusal in relation
with any sale of shares of the Company; (iii) co-sale rights in relation with any sale of shares of the Company.

		12.4.	Unless provided otherwise by the Committee, until an IPO, all voting rights, and rights to receive
information from the Company with respect to the Shares shall be granted to the Board or as determined by the Board, in accordance
with Exhibit C attached hereto.

 

    	 

    	-10-

    

 

		12.5.	Without derogating from any restrictions mentioned hereinabove, by accepting an Option Grant, each
Participant agrees that the sale or disposal of Shares is subject to the following terms, restrictions and conditions as may be
in effect on the time when such sale or disposal is requested: (i) any applicable law or regulation; (ii) any order or limitation
set by any stock exchange in which the Company’s securities may be traded (e.g., blackout periods, and lock up after an IPO);
and (iii) any limitation undertaken by the Company with respect of the shares of the Company, including limitations set forth by
Company’s underwriters.

		12.6.	Until an IPO the Company shall have the authority to endorse upon the certificate or certificates
representing the Shares such legends referring to the foregoing restrictions, and any other applicable restrictions, as it may
deem appropriate (and which do not violate the Participant's rights according to this Agreement).

		12.7.	By accepting an Option Grant, each Participant agrees that in the case of an IPO or after registering
the Company’s securities for trading, to sign any document and approve any resolution or restriction upon the Shares, or
modify the terms of allocation of the Shares, if such Participants signature or approval or such restriction or modification were
reasonably required, in the Committee’s discretion, in order to facilitate the Company in meeting all the underwriters and
stock exchange demands and all applicable securities and corporate laws and regulations.

		12.8.	The Participant shall not sell, pledge, transfer or otherwise dispose of any Shares in transactions
which violate, according to the Company’s sole discretion, any applicable laws, rules and regulations, or the Articles.

		12.9.	No transfer of Shares shall be effective if the Committee determines that the transferee is a competitor
of the Company (either directly or indirectly).

		12.10.	Notwithstanding anything to the contrary in this Section 12, as long as Shares are held by a trustee
for the benefit of a Participant (if applicable) the Shares shall not be sold, pledged, transferred or otherwise disposed of, by
the Participant until an IPO, or until such time or event as determined by the Committee, either individually or with respect to
all Participants.

 

		13.	TERM OF THE PLAN

 

This Plan shall be effective
as of January 1, 2010, which is the day it was adopted by the Board and shall terminate when all the Options are exercised into
Shares or expired in accordance with the provisions of this Plan or such other date as shall be determined by the Board, which
date shall be no later than January 1, 2020.

 

    	 

    	-11-

    

 

		14.	AMENDMENTS; TERMINATION

 

		14.1.	The Board may, at any time and from time to time, amend, alter or terminate the Plan, provided,
however, that the rights of the Participants shall not be adversely affected, unless such Participants agreed to such amendment,
alteration or termination.

		14.2.	The Plan may be terminated at any time by an action of the Board, but any such termination will
not terminate any Options granted under this Plan, which are then outstanding, without the consent of the Participant that is holding
such Options.

 

		15.	BINDING EFFECT

 

The provisions of the Plan
shall be binding upon the heirs, executors, administrators, and successors of the Participants.

 

		16.	GOVERNMENT REGULATIONS AND OTHER RESTRICTIONS

 

		16.1.	This Plan, the Option Grant Letter Agreements, the grant and exercise of Options hereunder, the
obligation of the Company to issue the Shares, and any other act or obligation of the Company or any related individual or entity
acting in connection with this Plan are all subject to the Articles, all applicable laws, rules, and regulations, whether of the
State of Israel or of the United States or any other state having jurisdiction over the Company and any Participant.

		16.2.	By accepting an Option Grant, each Participant agrees not to sell, pledge, transfer or otherwise
dispose of any of the Shares such Participant may hold except in compliance with: (I) the United States Securities Act of 1933,
as amended, and the rules and regulations thereunder if applicable; and (II) the Israeli Securities Law 5728 – 1968; and
(III) any other applicable securities law, regulations or other rules set by any stock exchange in which the Company's securities
may be traded; and to further agree that certificates evidencing any of such Shares shall bear appropriate legend to reflect such
restrictions. The Company does not obligate itself to register any shares under the United States Securities Act of 1933, as amended
or any other securities laws.

 

		17.	TAX CONSEQUENCES, INDEMNIFICATION

 

		17.1.	Any tax consequences (pursuant to Israeli or any other applicable law that the relevant Participant
is subject to), including tax consequences due to adjustments, made in accordance with Section 9 above, arising from the grant
or exercise of any Option, the payment for Shares covered thereby, or any other event or act (of the Company or any Participant)
relating to the Plan, shall be borne solely by each Participant.

 

    	 

    	-12-

    

 

		17.2.	The Company and/or the Board and/or the Committee and/or a trustee for the Plan shall not be required
to release any Share certificates or transfer any Shares to a Participant until all required tax payments have been fully made.

		17.3.	The Company may withhold taxes according to the requirements under the applicable laws, rules,
and regulations, including withholding taxes at source. In the case that applicable law requires so, the Company shall deduct taxes
at source. Such deduction may be made from any proceeds attributed to the exercise of the Options and sale of Shares, or from any
proceeds the Participant is entitled to receive from the Group or other proceeds such Participant owns and are held by the Group,
including from Participant’s salary or other proceeds he/she is entitled to receive from the Company or a Related Entity.
It is explicitly stated herein that each Participant who is an Employee, by accepting an Option Grant agrees to the deduction from
his/her salary of any amounts that in the Company’s determination are required to be deducted under applicable law in connection
with the Plan. In any such case, the Company shall be entitled
to offset any amounts due to such Participant on account of such taxes.

		17.4.	In the case that the Company, or any other person on its behalf is required to pay taxes, that
under applicable law should have been paid by the Participant, then such Participant shall immediately either pay such tax, or,
if such tax was already paid, reimburse the Company, or such other person for the total amount paid.

		17.5.	Neither the Company, nor any Related Entity nor anyone on their behalf, shall give, or be deemed
to be giving any Participant, or a potential Participant, advice regarding tax consequences relating to the Plan and issuance of
securities thereunder. Each Participant shall rely solely, while considering participation in the Plan, on the advice of such Participant’s
consultants.

 

		18.	CONTINUANCE OF EMPLOYMENT OR ENGAGEMENT

 

Neither the Plan nor any Option
Grant shall be construed to impose any obligation on any entity included in the Group to continue any Participant’s employment
with it (in the case that the Participant is an Employee) or to maintain any business engagement with such Participant. Nothing
in the Plan or in any Option Grant shall confer upon any Participant any right to continue to be employed by the Group or to maintain
any other business engagement with it, or restrict the right of any entity included in the Group to terminate such employment or
business engagement at any time.

 

    	 

    	-13-

    

 

		19.	RULES PARTICULAR TO SPECIFIC COUNTRIES

 

		19.1.	Notwithstanding anything herein to the contrary, the terms and conditions of the Plan may be amended
with respect to particular types of Participants as determined by the Board (for example, Israeli employees, employees that are
subject to US taxation) by an addendum to the Plan (the “Appendix”).

		19.2.	The Company may adopt one or more Appendixes. Each Appendix shall be approved by the Board and
as required or advisable under applicable law.

		19.3.	The terms of an Appendix shall govern only with respect to the types of Participants specified
in such Appendix.

		19.4.	In the case that the terms and conditions set forth in an Appendix conflict with any provisions
of the Plan, the provisions of the Appendix shall govern with respect to Participants that are subject to such Appendix, provided,
however, that such Appendix shall not be construed to grant the Participants rights not consistent with the terms of the Plan,
unless specifically provided in such Appendix.

 

		20.	NON-EXCLUSIVITY OF THE PLAN

 

		20.1.	The adoption of the Plan by the Board shall not be construed as amending, modifying or rescinding
any previously approved incentive arrangements or as creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the granting of Options other than under this Plan, and such
arrangements may be either applicable generally or only in specific cases.

		20.2.	The grant of Options hereunder shall neither entitle the recipient thereof to participate, nor
disqualify him from participating in, any other grant of Options pursuant to this Plan or any other option or stock plan of the
Company.

 

		21.	MULTIPLE AGREEMENTS; OTHER CORPORATE ACTIONS

 

		21.1.	The terms of each Option Grant may differ from other Options Grants granted under the Plan at the
same time, or at any other time. The Board may also grant more than one Option Grant to a certain Participant during the term of
this Plan, either in addition to, or in substitution for, one or more Option Grants previously granted to such Participant.

 

    	 

    	-14-

    

 

		21.2.	Under no circumstances shall the Plan be construed to grant any right to a Participant, or any
other third party, to postpone, delay or affect any corporate action resolved by the Company.

 

		22.	GOVERNING LAW & JURISDICTION

 

This Plan shall be governed
by, construed and enforced in accordance with the laws of the State of Israel, without giving effect to the principles of conflict
of laws. Any dispute or claim shall be put to the Board’s resolution. Subject to the above, the competent courts of Tel-Aviv,
Israel shall have sole jurisdiction in any matter pertaining to this Plan, and any other issue related to it.

 

		23.	NO WAIVER

 

The failure of the Company
or any other party acting on its behalf or assisting it in implementing the Plan to enforce at any time any provisions of the Plan
shall not be construed to constitute a waiver of such provision or of any other provision hereof.

 

		24.	NOTICES

		24.1.	Any notice, request, demand or other communication required or permitted under the Plan shall be
in writing and shall be deemed to have been duly given, made and received only by personal delivery or if sent by certified mail,
postage prepaid, return receipt requested, overnight delivery service, facsimile transmission (with confirmation of delivery),
or confirmed e-mail to the address of the Company (if sent to the Company), or to the address of the Participant as such was provided
by him in the Option Grant Letter Agreement, unless such address is changed by written notice received by the Company.

		24.2.	Except as otherwise set forth herein, any notice sent by mail shall be deemed to be given six days
after deposit with the relevant post service; any notice sent by overnight delivery service shall be deemed given the first business
day after deposited with the delivery service; and any notice sent by facsimile transmission or e-mail, shall be deemed given when
transmitted if sent during normal business hours or if not, on the next business day; and any notice given by personal delivery
shall be deemed given on the date of delivery.

		24.3.	In the case a certain Participant changes his or her contact details, in a way that the contact
details provided to the Company by him do not enable the Company to provide notices and other communications to such Participant,
then such Participant shall be deemed to have waived his or her right to receive any notices, and the Committee shall have the
right, in its sole discretion, to take any appropriate action under the circumstances.

 

    	 

    	-15-

    

 

Appendixes

 

Appendix A: Terms of grant of options
to Israeli employees

 

Exhibits:

 

Exhibit A: Option Grant Letter Agreement

 

Exhibit B: Form of Exercise Notice

 

Exhibit C: Proxy

 

    	 

    	-16-

    

 

Appendix A

Terms of grant of Options
to Israeli employees

 

		1.	Purpose of the Appendix 

 

		1.1.	This Appendix (the “Appendix”) is made as part of the Plan (as defined herein
whereas all terms not otherwise defined herein shall have the meaning ascribed to them in the Plan) and pursuant to the provisions
of Section 102 of the Income Tax Ordinance (as defined herein).

		1.2.	This Appendix governs grants of Options to Israeli Employees, either by a Trustee, or without a
Trustee.

 

		2.	Definitions

 

As used
herein, the following definitions shall apply:

 

		2.1.	“Capital Gain Method” means choosing the alternative of capital gain method
under Section 102.

		2.2.	“Eligible Participant” means any employee as such term is defined in Section
102. Without derogating from the foregoing Eligible Participant shall include any employee or Office Holder (as such term is defined
in the Companies Law) of the Company or any Subsidiary except for such persons that are deemed to be ‘Ba’al Shlita’
under Section 32 to the Income Tax Ordinance.

		2.3.	"Deposit Date" means the date in which options were deposited with the Trustee
for the benefit of a certain Participant.

		2.4.	“Income Tax Authorities” mean the Israeli income tax authorities that are authorized
to give approvals in relation with this Appendix and Option Grants to Eligible Participants.

		2.5.	“Income Tax Ordinance” means the Israeli Income Tax Ordinance (New Version)
1961, as amended from time to time.

		2.6.	“Labor Income Method” means choosing the alternative of labor income method
under Section 102.

		2.7.	“Participant” means any Eligible Participant who is granted with Options.

		2.8.	“Plan” means the 2010 Incentive Option Plan this Appendix is attached to.

		2.9.	“Realization Event” means, with respect to each Option Grant granted to a certain
Participant, the earlier to occur of: (I) transfer of Securities from the Trustee to such Participant; or (II) the sale of Shares
by the Trustee; or (III) one day before such Participant is no longer an Israeli resident (as provided for in Section 100A to the
Income Tax Ordinance).

 

    	 

    	-17-

    

 

	 	2.10.	“Release
    Term” means: (i) in the case of Capital Gains Method, a period ending twenty four (24) months after the Deposit
    Date; (ii) In the case of Labor Income Method ‘Release Term’ shall mean a period ending twelve (12) months after
    the Deposit Date.

 

	 	2.11.	“Section
    102” means Section 102 to the Income Tax Ordinance as amended from time to time, and / or as superseded and any
    rules regulations or instructions promulgated or enacted under such Section 102.

 

	 	2.12.	“Securities”
    mean Options subject to a certain Option Grant and Shares received subsequent exercise of such Options.

 

	 	2.13.	“Tax
    Method” means either Capital Gains Method or Labor Income Method.

 

	 	2.14.	“Trust”
    means a trust, maintained under the Trust Agreement entered into between the Company and the Trustee for administration of
    grant of Options under Section 102. 

 

	 	2.15.	“Trust
    Agreement” means the agreement between the Company and the Trustee as may be in effect from time to time specifying
    the duties and authorities of the Trustee.

 

	 	2.16.	“Trust
    Assets” mean all Securities and other assets held in Trust for the benefit of the Participants pursuant to this
    Appendix and the Trust Agreement

 

	 	2.17.	“Trustee”
    means  ESOP Trust Company Ltd. (and any successor Trustee) who was, or shall be appointed by the Board of Directors of the
    Company     and     approved     by the Income Tax Authorities to hold the Trust Assets.

 

		3.	Provisions of the Appendix shall govern

 

The provisions
of the Appendix shall supersede and govern in the case of any inconsistency or conflict arising between the provisions of the Appendix
and the provisions of the Plan, provided, however, that this Appendix shall not be construed to grant Participant rights not consistent
with the terms of the Plan, unless specifically provided herein.

 

		4.	Selection of Tax Method – Capital Gains Method

 

The Company
chooses the Capital Gain Method (‘Maslul Revach Hon’). This choice may be changed in the future, by a Board
resolution, provided, however, that the change in selection is permissible under the provisions of Section 102.

 

		5.	Holding of Securities by the Trustee 

 

		5.1.	All Securities shall be issued to the Trustee to be held in the Trust for the benefit of the relevant
Participants. All certificates representing Securities issued to the Trustee under this Appendix shall be deposited with the Trustee,
and shall be held by the Trustee until such time that such Options or Shares are released from the Trust as herein provided.

 

    	 

    	-18-

    

 

		5.2.	After the Release Term is over, a Participant shall be entitled to instruct the Trustee to transfer
the Shares held for such Participant’s benefit to such Participant, provided, however, that the Trustee confirms that all
applicable tax as set in Section 102 was actually paid and the Trustee holds a confirmation to that effect from Income Tax Authorities.

		5.3.	In the case that the Company distributes dividends, than the amount of dividends with respect of
Shares held in Trust shall be paid to the Participants that are the beneficial holders of such Shares, subject to deduction at
source of the applicable tax.

 

		6.	Provisions governing this Appendix and Plan 

 

Notwithstanding anything to
the contrary in the Plan or elsewhere in this Appendix:

 

		6.1.	The Plan shall have one, sole, Trustee.

		6.2.	The Appendix shall be subject to one Tax Method, unless the provisions of Section 102 allow otherwise.

		6.3.	The Participants shall not be entitled to cause a Realization Event to occur unless the Release
Term is fulfilled.

		6.4.	All rights or benefits that are received subsequent to the grant or exercise the Options or the
Shares underlying such Options (including and not limited to bonus shares) shall be deposited with the Trustee until the end of
the Release Term, and all such rights and benefits shall be subject to the Tax Method selected by the Company.

 

		7.	Effectiveness
of the Appendix

 

This Appendix
shall become effective, and Option Grants may be granted hereunder only after receipt the required approvals under Section 102
from the Income Tax Authorities.

 

		8.	Additional limitations 

 

		8.1.	The Company shall not issue Options to a Participant unless such Participant confirmed in writing
that he/she is aware of the provisions of Section 102 and the applicable Tax Method, and such Participant agreed in writing to
the terms of the Trust Agreement, and that he/she shall not cause a Realization Event to occur before the Release Term is over.
The form for the above confirmation shall be determined by the Committee, and shall be attached to the Plan as Exhibit A.

		8.2.	By accepting an Option Grant, each Participant agrees irrevocably to discharge the Trustee, the
Company and any other office holder, employee or agent thereof from any liability with respect of any action or decision duly taken
and bona fide executed in relation with the Plan, or relating to any Option Grant or Shares.

		8.3.	The Trustee shall use the voting rights vested in any such shares issued upon the exercise of any
Options granted under the Plan, in accordance with Exhibit C of the Plan.

 

		9.	Grant of Options not by a Trustee

 

Notwithstanding
the above, the Company shall be entitled to allocate Option Grants not according to the Tax Methods, but by direct grant to Participants,
provided, however, that the requirements of Section 102 are met.

 

    	 

    	-19-

    

 

ADDENDUM

 

Terms of Options granted
to United States

Employees and Service Providers

 

		10.	Purpose of the Addendum

 

This Addendum (also referred
to as the "Addendum") is part of the 2010 Incentive Option Plan of Alocbra Ltd. (the "Plan").
All terms not otherwise defined herein shall have the meaning ascribed to them in the Plan. This Addendum governs grants of Options
to United States Employees and other Service Providers.

 

		11.	Provisions of the Addendum 

 

The provisions of the Addendum
shall supersede and govern in the case of inconsistency between the provisions of the Addendum and the provisions of the Plan,
provided, however, that this Addendum shall not be construed to grant to any Participant rights not consistent with the terms of
the Plan, unless specifically provided herein.

 

		12.	Eligibility

The individuals who shall be eligible to receive Option Grants under the Plan that are subject to the provisions of this Addendum
shall be employees, directors and other individuals and entities who are United States citizens or who are resident aliens of the
United States for United States federal tax purposes (collectively, “U.S. Persons”), and who render services
to the management, operation or development of the Company or a Subsidiary and who have contributed or may be expected to contribute
materially to the success of the Company or a Subsidiary. ISOs (as defined in Section 4 below) shall not be granted to any individual
who is not an employee of a corporation for United States federal tax purposes. The term “Subsidiary” as used
in this Addendum means a corporation or other business entity of which the Company owns, directly or indirectly through an unbroken
chain of ownership, fifty percent or more of the total combined voting power of all classes of stock.

 

		13.	Terms and Conditions of Options

 

Every Option
granted to a U.S. Person shall be evidenced by a written stock option agreement (the "Stock Option Agreement")
in such form as the Committee shall approve from time to time, specifying the number of Shares that may be purchased pursuant to
the Option, the time or times at which the Option shall become exercisable in whole or in part, whether the Option is intended
to be an incentive stock option (“ISO”) or a nonqualified stock option (“NSO”) and such other
terms and conditions as the Committee shall approve, and containing or incorporating by reference the following terms and conditions.
The Plan and this Addendum shall be administered in such a manner as to permit those Options granted hereunder and specially designated
as an ISO to qualify as incentive stock options as described in Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”).

 

    	 

    	-20-

    

 

(a)
Duration. Each Option shall expire no later than ten (10) years from its grant date; provided, however, that no ISO granted
to an Employee who owns (directly or under the attribution rules of Section 424(d) of the Code) stock possessing more than ten
percent of the total combined voting power of all classes of stock of the Company or any Subsidiary shall expire later than five
(5) years from its date of grant.

 

(b)
Exercise Price. The exercise price of each Option shall be as specified by the Committee in its discretion; provided, however,
that the price shall be at least 100 percent of the Fair Market Value (as hereinafter defined) of the Shares on the date on which
the Board grants the Option (or shareholders resolution to grant such options, if such resolution is required), which shall be
considered the date of grant of the Option for purposes of fixing the price; and provided, further, that the price with respect
to an ISO granted to an Employee who at the time of grant owns (directly or under the attribution rules of Section 424(d) of the
Code) stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or of any Subsidiary
shall be at least 110 percent of the Fair Market Value of the Shares on the date of grant of the ISO. For purposes of the Plan,
except as may be otherwise explicitly provided in the Plan or in any Stock Option Agreement, the “Fair Market Value”
of a Share at any particular date shall be determined according to the following rules: (i) if the Shares are not at the time listed
or admitted to trading on a stock exchange, the Fair Market Value shall be the closing price of the Shares on the date in question
in the over-the-counter market, as such price is reported in a publication of general circulation selected by the Board and regularly
reporting the price of the Shares in such market; provided, however, that if the price of the Shares is not so reported, the Fair
Market Value shall be determined in good faith by the Board, which may take into consideration (1) the price paid for the Shares
in the most recent trade of a substantial number of shares known to the Board to have occurred at arm’s length between willing
and knowledgeable investors, (2) an appraisal by an independent party or (3) any other method of valuation undertaken in good faith
by the Board, or some or all of the above as the Board shall in its discretion elect; or (ii) if the Shares are at the time listed
or admitted to trading on any stock exchange, then the Fair Market Value shall be the last known closing price of the Shares when
the relevant Option Grant is approved by the Company. Notwithstanding Subsection (ii) above, the Administrator may adopt any other
method in order to determine the Fair Market Value of a Share, as long as use of such method will not give rise to adverse tax
consequences under Internal Revenue Code Section 409A. 

 

(c)Notice
of ISO Stock Disposition. The Participant must notify the Company promptly in the event that he sells, transfers, exchanges
or otherwise disposes of any Shares issued upon exercise of an ISO before the later of (i) the second anniversary of the date of
grant of the ISO or (ii) the first anniversary of the date the shares were issued upon his exercise of the ISO.

 

    	 

    	-21-

    

 

(d)Effect
of Cessation of Employment or Service Relationship. The Committee shall determine in its discretion and specify in each Stock
Option Agreement the effect, if any, of the termination of the Participant’s employment with or performance of services for
the Company or any Subsidiary on the exercisability of the Option.

 

(e)No
Rights as Stockholder. A Participant shall have no rights as a stockholder with respect to any Shares covered by an Option
until the date of issuance of a stock certificate to him for the Shares. No adjustment shall be made for dividends or other rights
for which the record date is earlier than the date the stock certificate is issued, other than as required or permitted by the
Plan.

 

(f)Transferability
of Options. Except as permitted by the Committee, and set forth in the terms of a Participant’s Stock Option Agreement,
an Option shall not be assignable or transferable by the Participant except by will or by the laws of descent and distribution.
During the life of the Participant, an Option shall be exercisable only by him, by a conservator or guardian duly appointed for
him by reason of his incapacity or by the person appointed by the Participant in a durable power of attorney acceptable to the
Company’s counsel.

 

		14.	Requirements
of Law

 

		(a)	The Company shall not be required to transfer Shares or to sell or issue any Shares upon the exercise
of any Option if the issuance of such Shares will result in a violation by the Participant or the Company of any provisions of
any law, statute or regulation of any governmental authority. Specifically, in connection with the Securities Act of 1933, as amended
from time to time (the “Securities Act”), upon the exercise of any Option, the Company will not be required
to issue Shares unless the Committee has received evidence satisfactory to it to the effect that the holder of the Option will
not transfer such shares except pursuant to a registration statement in effect under the Securities Act or unless an opinion of
counsel satisfactory to the Company has been received by the Company to the effect that registration is not required. Any determination
in this connection by the Committee shall be conclusive. The Company shall not be obligated to take any other affirmative action
in order to cause the exercise of an Option to comply with any law or regulations of any governmental authority, including, without
limitation, the Securities Act or applicable state securities laws.

 

		(b)	All other provisions of this Addendum and the Plan notwithstanding, this Addendum and the Plan
shall be administered and construed so as to avoid any person who receives an Option Grant incurring any adverse tax consequences
under Internal Revenue Code Section 409A. The Administrator shall suspend the application of any provisions of the Plan which could,
in its sole determination, result in an adverse tax consequence to any person under Internal Revenue Code Section 409A.

 

    	 

    	-22-

    

 

		15.	Forfeiture for Dishonesty or Termination for Cause 

 

Notwithstanding
any provision of the Plan to the contrary, if the Committee determines, after full consideration of the facts, that:

 

(a)
the Participant has been engaged in fraud, embezzlement, theft or commission of a felony in the course of his or her employment
by or involvement with the Company, a Subsidiary or a parent corporation as defined in Section 424 of the Code or any direct or
indirect subsidiary of such parent (an “Affiliate”) or has made unauthorized disclosure of trade secrets or
other proprietary information of the Company, a Subsidiary, an Affiliate or of a third party who has entrusted such information
to the Company, a Subsidiary or an Affiliate; or

 

(b)
the Participant has violated the terms of any employment, noncompetition, nonsolicitation or proprietary information agreement
to which he is a party; or

 

(c)
the Participant’s employment or involvement with the Company, a Subsidiary or an Affiliate was terminated for “cause,”
as defined in any employment agreement with the Participant, if applicable, or if there is no such agreement, as determined by
the Committee, which may determine that “cause” includes among other matters the willful failure or refusal of the
Participant to perform and carry out his or her assigned duties and responsibilities diligently and in a manner satisfactory to
the Committee;

 

then the Participant’s
right to exercise an Option shall terminate as of the date of such act (in the case of (a) or (b)) or such termination (in the
case of (c)), the Participant shall forfeit all unexercised Options and shall be required to sell to the Company or, in the case
the Company is not allowed to repurchase its own shares, to a third party approved by the Company, all or any part of the Shares
acquired by the Participant prior to such event, at a price equal to the lesser of their Fair Market Value or the amount paid to
the Company upon such transfer or exercise. If a Participant whose behavior the Company asserts falls within the provisions of
(a), (b) or (c) above has exercised or attempts to exercise an Option prior to consideration of the application of this Section
6 or prior to a decision of the Committee, the Company shall not be required to recognize such exercise until the Committee has
made its decision and, in the event any exercise shall have taken place, it shall be of no force and effect (and shall be void
ab initio) if the Committee makes an adverse determination, provided, however, that if the Committee finds in favor
of the Participant then the Participant will be deemed to have exercised the Option retroactively as of the date he or she originally
gave notice of his or her attempt to exercise or actual exercise, as the case may be. The decision of the Committee as to the cause
of a Participant’s discharge and the damage done to the Company shall be final, binding and conclusive. No decision of the
Committee, however, shall affect in any manner the finality of the discharge of such Participant by the Company. For purposes of
this Section 6, reference to the Company shall include any Subsidiary or Affiliate.

 

		16.	Tax Withholding 

 

To the extent required by law,
the Company may withhold or cause to be withheld income and other taxes with respect to any income recognized by a Participant
by reason of the exercise of an Option, and as a condition to the receipt of any Option the Participant shall agree that if the
amount payable to him by the Company and any Subsidiary in the ordinary course is insufficient to pay such taxes, then he shall
upon the request of the Company pay to the Company an amount sufficient to satisfy its tax.

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