Document:

2006 EQUITY INCENTIVE PLAN AS AMENDED AND RESTATED

 Exhibit 10.1 

AVALARA, INC. 
 2006
EQUITY INCENTIVE PLAN 
 (as amended and restated effective as of August 15, 2017) 

1. PURPOSES. 
 (a)
Eligible Stock Award Recipients. The persons eligible to receive Stock Awards are the Employees, Directors and Consultants of the Company and its Affiliates. 

(b) Available Stock Awards. The purpose of the Plan is to provide a means by which eligible recipients of Stock Awards may
be given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) stock bonuses and (iv) rights to
acquire restricted stock. 
 (c) General Purpose. The Company, by means of the Plan, seeks to retain the services of the
group of persons eligible to receive Stock Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 

2. DEFINITIONS. 

(a) “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now
or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 
 (b)
“Board” means the Board of Directors of the Company. 
 (c) “Code” means the
Internal Revenue Code of 1986, as amended. 
 (d) “Committee” means a committee of two (2) or more
members of the Board appointed by the Board in accordance with subsection 3(c). 
 (e) “Common Stock”
means the common stock of the Company. 
 (f) “Company” means Avalara, Inc., a Washington corporation.

 (g) “Consultant” means any person, including an advisor, (i) engaged by the Company or an
Affiliate to render consulting or advisory services and who is compensated for such services or (ii) who is a member of the Board of Directors of an Affiliate. However, the term “Consultant” shall not include either Directors
who are not compensated by the Company for their services as Directors or Directors who are merely paid a director’s fee by the Company for their services as Directors. 

(h) “Continuous Service” means that the Participant’s service with the Company or an Affiliate,
whether as an Employee, Director or Consultant, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders
service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s Continuous
Service. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or a Director will not constitute an interruption of Continuous Service. The Board, in its sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. 

  

					
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 (i) “Director” means a member of the Board of Directors of the
Company. 
 (j) “Disability” means the permanent and total disability of a person within the meaning of
Section 22(e)(3) of the Code. 
 (k) “Employee” means any person employed by the Company or an
Affiliate. Mere service as a Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate. 

(l) “Fair Market Value” means, as of any date, the value of the Common Stock determined as 

follows: 
 (i) If the Common Stock is
listed on any established stock exchange or traded on the Nasdaq Stock Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Board
deems reliable. 
 (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith
by the Board. 
 (m) “Incentive Stock Option” means an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (n)
“Listing Date” means the first date upon which any security of the Company is listed (or approved for listing) upon notice of issuance on any securities exchange or designated (or approved for designation) upon
notice of issuance as a national market security on an interdealer quotation system. 
 (o) “Nonstatutory Stock
Option” means an Option not intended to qualify as an Incentive Stock Option. 
 (p) “Officer”
means a person who is an officer of the Company or an Affiliate. 
 (q) “Option” means an Incentive
Stock Option or a Nonstatutory Stock Option granted pursuant 
 to the Plan. 

(r) “Option Agreement” means a written agreement between the Company and an Optionholder
evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 

(s) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option. 
 (t) “Outside Director” means a
Director who either (i) is not a current employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of
the Company or an “affiliated corporation” receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company or an “affiliated corporation” at any time and is
not currently receiving direct or indirect remuneration from the Company or an “affiliated corporation” for services in any capacity other than as a Director or (ii) is otherwise considered an “outside director” for purposes
of Section 162(m) of the Code. 

  

					
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 (u) “Participant” means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 
 (v)
“Plan” means this Avalara, Inc. 2006 Equity Incentive Plan. 
 (w) “Securities Act”
means the Securities Act of 1933, as amended. 
 (x) “Stock Award” means any right granted under the
Plan, including an Option, a stock bonus and a right to acquire restricted stock. 
 (y) “Stock Award
Agreement” means a written agreement between the Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and
conditions of the Plan. 
 (z) “Ten Percent Shareholder” means a person who owns (or is deemed to own pursuant
to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any of its Affiliates. 

3. ADMINISTRATION. 

(a) Administration by Board. The Board shall administer the Plan unless and until the Board delegates responsibility for
administering the Plan to a Committee, as provided in subsection 3(c). 
 (b) Powers of Board. The Board shall have the power,
subject to, and within the limitations of, the express provisions of the Plan: 
 (i) To determine from time to time which of
the persons eligible under the Plan shall be granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to receive Common Stock pursuant to a Stock Award; and the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person. 

(ii) To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully
effective. 
 (iii) To amend the Plan or a Stock Award as provided in Section 12. 

(iv) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests
of the Company which are not in conflict with the provisions of the Plan. 

  

					
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 (c) Delegation to Committee. The Board may delegate concurrent responsibility
for administering the Plan to a Committee or Committees of two (2) or more members of the Board, and the term “Committee” shall apply to any persons to whom such authority has been delegated. If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter also be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.
The Board may abolish the Committee at any time and re-vest in the Board the administration of the Plan. 

(d) Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith
shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 
 4. SHARES
SUBJECT TO THE PLAN. 
 (a) Share Reserve. Subject to the
provisions of Section 11 relating to adjustments upon changes in Common Stock, the Common Stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate 33,143,496 shares of Common Stock. 

(b) Reversion of Shares to the Share Reserve. If any Stock Award shall for any reason expire or otherwise terminate, in
whole or in part, without having been exercised in full, the shares of Common Stock not acquired under such Stock Award shall revert to and again become available for issuance under the Plan. 

5. ELIGIBILITY. 

(a) Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to Employees. Stock Awards other
than Incentive Stock Options may be granted to Employees, Directors and Consultants. 
 (b) Ten Percent Shareholders. A Ten
Percent Shareholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and the Option is not
exercisable after the expiration of five (5) years from the date of grant. 
 (c) Consultants. 

(i) A Consultant shall not be eligible for the grant of a Stock Award if, at the time of grant, either the offer or the sale of the
Company’s securities to such Consultant is not exempt under Rule 701 of the Securities Act (“Rule 701”) because of the nature of the services that the Consultant is providing to the Company, or because the Consultant is
not a natural person, or as otherwise provided by Rule 701, unless the Company determines that such grant need not comply with the requirements of Rule 701 and will satisfy another exemption under the Securities Act as well as comply with the
securities laws of all other relevant jurisdictions. 
 (ii) Rule 701 generally is available to consultants and advisors only if
(i) they are natural persons; (ii) they provide bona fide services to the issuer, its parents, its majority-owned subsidiaries or majority-owned subsidiaries of the issuer’s parent; and (iii) the services are not in connection
with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the issuer’s securities. 

  

					
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 6. OPTION PROVISIONS. 

Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be
separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock purchased on exercise of each type of
Option. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 

(a) Term. Subject to the provisions of subsection 5(b) regarding Ten Percent Shareholders, no Incentive Stock Option shall
be exercisable after the expiration of ten (10) years from the date it was granted. 
 (b) Exercise Price of an Option.
Subject to the provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise price of each Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the
date the Option is granted. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in
a manner satisfying the provisions of Section 424(a) of the Code. Further, notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with an exercise price less than one hundred percent (100%) of the Fair Market Value of the
Common Stock subject to the Option on the date the Option is granted if the Option meets the requirements for Stock Awards that are considered “deferred compensation” within the meaning of Section 409A of the Code. 

(c) Consideration. The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the extent
permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised or (ii) pursuant to any other method permitted by the Company, which may include one or more of the following, each as may be set
forth in Section 4 of the Option Agreement: (1) a Regulation T program, (2) exchange, (3) a cashless exercise, or (4) deferred payment. 

(d) Transferability of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by
the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory
to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 

(e) Transferability of a Nonstatutory Stock Option. A Nonstatutory Stock Option shall be transferable to the extent
provided in the Option Agreement. If the Nonstatutory Stock Option does not provide for transferability, then the Nonstatutory Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of
the death of the Optionholder, shall thereafter be entitled to exercise the Option. 
 (f) Vesting Generally. The total number
of shares of Common Stock subject to an Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or
times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this subsection 6(f) are subject to any Option
provisions governing the minimum number of shares of Common Stock as to which an Option may be exercised. 

  

					
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 (g) Termination of Continuous Service. In the event an Optionholder’s
Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of
termination) but only within such period of time ending on the earlier of (i) the date ninety (90) days following the termination of the Optionholder’s Continuous Service (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Option Agreement, the Option shall
terminate. 
 (h) Extension of Termination Date. An Optionholder’s Option Agreement may also provide that if the
exercise of the Option following the termination of the Optionholder’s Continuous Service (other than upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would
violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in subsection 6(a) or (ii) the expiration of a period of ninety
(90) days after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration requirements. 

(i) Disability of Optionholder. In the event that an Optionholder’s Continuous Service terminates as a result of the
Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of
(i) the date twelve (12) months following such termination (or such longer or shorter period specified in the Option Agreement) or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after
termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate. 
 (j)
Death of Optionholder. In the event (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death or (ii) the Optionholder dies within the period (if any) specified in the Option
Agreement after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the
Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder’s death pursuant to subsection 6(d) or 6(e), but only within
the period ending on the earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement) or (2) the expiration of the term of such Option as set forth in
the Option Agreement. If, after death, the Option is not exercised within the time specified herein, the Option shall terminate. 

(k) No Early Exercise. The Option may not include a provision whereby the Optionholder may elect at any time before the
Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option. 

(l) Right of Repurchase. Unless otherwise provided in the Option Agreement, the Company may elect, prior to the Listing
Date, to repurchase all or any part of the shares of Common Stock acquired by the Optionholder pursuant to the exercise of the Option. This right of repurchase shall be exercisable only by written notice delivered to the Optionholder. The notice
shall set forth the date on which the repurchase is to be effected. Such date shall not be more than thirty (30) days after the date of the notice. The certificate(s) representing the shares to be repurchased shall, prior to the close of
business on the date specified for the repurchase, be delivered to the Company properly endorsed for transfer. The Company shall, concurrently with the receipt of such certificate(s), pay to the Optionholder a purchase price equal to the Fair Market
Value of the shares being acquired. Payment shall be made in cash or cash equivalents or by canceling indebtedness to the Company incurred by the Optionholder. 

  

					
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 (m) Right of First Refusal. Unless otherwise provided in the Option Agreement, the
Company may elect, prior to the Listing Date, to exercise a right of first refusal following receipt of notice from the Optionholder of the intent to transfer all or any part of the shares of Common Stock received upon the exercise of the
Option. If the Optionholder desires to transfer such shares, the Optionholder must give a written notice to the Company describing fully the proposed transfer, including the number of shares proposed to be transferred, the proposed transfer price,
the name and address of the proposed transferee and proof satisfactory to the Company that the proposed sale or transfer will not violate any applicable federal or state securities laws. The Company shall have the right to purchase all, and not less
than all, of such shares on the terms of the proposal described in the notice by delivery of a notice of exercise of the right of first refusal, along with proper consideration, within thirty (30) days after the date when the notice was
received by the Company. 
 7. PROVISIONS OF STOCK AWARDS OTHER
THAN OPTIONS. 
 (a) Stock Bonus Awards. Each stock bonus agreement shall be in such form and
shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of stock bonus agreements may change from time to time, and the terms and conditions of separate stock bonus agreements need not be
identical, but each stock bonus agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

(i) Consideration. A stock bonus may be awarded in consideration for past services actually rendered to the Company or an
Affiliate for its benefit. 
 (ii) Vesting. Shares of Common Stock awarded under the stock bonus agreement may, but need
not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 

(iii) Termination of Participant’s Continuous Service. In the event a Participant’s Continuous Service
terminates, the Company may reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination under the terms of the stock bonus agreement. 

(iv) Transferability. Rights to acquire shares of Common Stock under the stock bonus agreement shall be transferable by
the Participant only upon such terms and conditions as are set forth in the stock bonus agreement, as the Board shall determine in its discretion, so long as Common Stock awarded under the stock bonus agreement remains subject to the terms of the
stock bonus agreement. 
 (b) Restricted Stock Awards. Each restricted stock purchase agreement shall be in such form
and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of the restricted stock purchase agreements may change from time to time, and the terms and conditions of separate restricted stock
purchase agreements need not be identical, but each restricted stock purchase agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

(i) Purchase Price. The purchase price of restricted stock awards shall not be less than eighty-five percent (85%) of the
Common Stock’s Fair Market Value on the date such award is made or at the time the purchase is consummated. 

  

					
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 (ii) Consideration. The purchase price of Common Stock acquired pursuant to the
restricted stock purchase agreement shall be paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board, according to a deferred payment or other similar arrangement with the Participant; or (iii) in any
other form of legal consideration that may be acceptable to the Board in its discretion; provided, however, that at any time that the Company is incorporated in Delaware, then payment of the Common Stock’s “par value,” as defined in
the Delaware General Corporation Law, shall not be made by deferred payment. 
 (iii) Vesting. Shares of Common Stock acquired
under the restricted stock purchase agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 

(iv) Termination of Participant’s Continuous Service. In the event a Participant’s Continuous Service
terminates, the Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination under the terms of the restricted stock purchase agreement. 

(v) Transferability. Rights to acquire shares of Common Stock under the restricted stock purchase agreement shall be
transferable by the Participant only upon such terms and conditions as are set forth in the restricted stock purchase agreement, as the Board shall determine in its discretion, so long as Common Stock awarded under the restricted stock purchase
agreement remains subject to the terms of the restricted stock purchase agreement. 
 8. COVENANTS OF THE
COMPANY. 
 (a) Availability of Shares. During the terms of the Stock Awards, the Company shall keep
available at all times the number of shares of Common Stock required to satisfy such Stock Awards. 
 (b) Securities Law
Compliance. The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of
the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after reasonable
efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from
any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained. 
 9.
USE OF PROCEEDS FROM STOCK. 
 Proceeds from the sale of
Common Stock pursuant to Stock Awards shall constitute general funds of the Company. 
 10. MISCELLANEOUS. 

(a) Acceleration of Exercisability and Vesting. The Board shall have the power to accelerate the time at which a Stock
Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during
which it will vest. 

  

					
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 (b) Shareholder Rights. No Participant shall be deemed to be the holder of, or to
have any of the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms. 

(c) No Employment or other Service Rights. Nothing in the Plan or any instrument executed or Stock Award granted pursuant
thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the
employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate or (iii) the service of a Director
pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be. 

(d) Investment Assurances. The Company may require a Participant, as a condition of exercising or acquiring Common Stock
under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the
Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the
Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of Common Stock under the Stock Award has
been registered under a then currently effective registration statement under the Securities Act or (2) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with
applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock. 
 (e) Withholding
Obligations. To the extent provided by the terms of a Stock Award Agreement, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under a Stock Award by
any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to
withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award, provided, however, that no shares of Common Stock are withheld
with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered shares of Common Stock. 

(f) Section 409A. The Plan and Stock Awards granted thereunder are intended to be exempt from the requirements of
Section 409A of the Code (“Section 409A”) to the maximum extent possible. To the extent Section 409A is applicable to the Plan or any Stock Award, it is intended that the Plan and
any Stock Awards comply with the deferral, payout, plan termination and other limitations and restrictions imposed under Section 409A. Notwithstanding any other provision of the Plan or any Stock Award to the contrary, the Plan and any Stock
Award shall be interpreted, operated and administered in a manner consistent with such intentions; provided, however, that the Company and the Board make no representations that Stock Awards shall be exempt from or comply with Section 409A and
make no undertaking to preclude Section 409A from applying to Stock Awards. Without limiting the generality of 

  

					
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 the foregoing, and notwithstanding any other provision of the Plan or any Stock Award to the contrary, with
respect to any payments and benefits under the Plan or any Stock Award to which Section 409A applies, all references in the Plan or any Stock Award to the termination of a Participant’s employment or service are intended to mean the
Participant’s “separation from service,” within the meaning of Section 409A(a)(2)(A)(i) to the extent necessary to avoid subjecting the Participant to the imposition of any additional tax under Section 409A. In addition, if
the Participant is a “specified employee,” within the meaning of Section 409A, then to the extent necessary to avoid subjecting the Participant to the imposition of any additional tax under Section 409A, amounts that would
otherwise be payable under the Plan or any Stock Award granted under the Plan during the six (6)-month period immediately following the Participant’s “separation from service,” within the meaning of Section 409A(a)(2)(A)(i),
shall not be paid to the Participant during such period, but shall instead be accumulated and paid to the Participant (or, in the event of the Participant’s death, the Participant’s estate) in a lump sum on the first business day after the
earlier of the date that is six (6) months following the Participant’s separation from service or the Participant’s death. Notwithstanding any other provision of the Plan to the contrary, the Board, to the extent it deems necessary or
advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify the Plan and any Stock Award so that the Stock Award qualifies for exemption from or complies with Section 409A. 

(g) California Appendix Provisions. To the extent required by applicable law, Participants who are residents of the State
of California shall be subject to the additional terms and conditions set forth in Appendix A to the Plan until such time as the Common Stock becomes a “listed security” under the Securities Act. 

11. ADJUSTMENTS UPON CHANGES IN STOCK. 

(a) Capitalization Adjustments. If any change is made in the Common Stock subject to the Plan, or subject to any Stock
Award, without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject to the Plan
pursuant to subsection 4(a), and the outstanding Stock Awards will be appropriately adjusted in the class(es) and number of securities and price per share of Common Stock subject to such outstanding Stock Awards. The Board shall make such
adjustments, and its determination shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction “without receipt of consideration” by the Company.) 

(b) Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company, then all outstanding Stock
Awards shall terminate immediately prior to such event. 
 (c) Asset Sale, Merger, Consolidation or Reverse Merger. In the
event of (i) a sale, lease or other disposition of all or substantially all of the assets of the Company, (ii) a merger or consolidation in which the Company is not the surviving corporation or (iii) a reverse merger in which
the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise (individually, a
“Corporate Transaction”), then with respect to Stock Awards outstanding under the Plan and held by Participants whose Continuous Service has not terminated, the vesting of such Stock Awards (and, if applicable, the time during which such
Stock Awards may be exercised) shall be accelerated by an amount of time equal to the vesting period prior to the date of the Corporate Transaction (e.g., if a Stock Award is otherwise vested by 16 months, upon a Corporate Transaction, that Stock
Award will be deemed vested 32 months) whether or not any surviving corporation or acquiring corporation assumes any Stock Awards outstanding under the Plan or substitutes similar stock awards (including an award to 

  

					
		  	-10-	  	2006 Equity Incentive Plan

 acquire the same consideration paid to the shareholders in the Corporate Transaction) for those Stock Awards
outstanding under the Plan. If the surviving corporation or acquiring corporation does not assume such Stock Awards, the Stock Awards shall terminate if not exercised (if applicable) at or prior to the Corporate Transaction and, with respect to any
other Stock Awards outstanding under the Plan, such Stock Awards shall terminate if not exercised (if applicable) prior to the Corporate Transaction. 

12. AMENDMENT OF THE PLAN AND STOCK AWARDS.

 (a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan. However, except as
provided in Section 11 relating to adjustments upon changes in Common Stock, no amendment shall be effective unless approved by the shareholders of the Company to the extent shareholder approval is necessary to satisfy the requirements of
Section 422 of the Code. 
 (b) Shareholder Approval. The Board may, in its sole discretion, submit any other amendment
to the Plan for shareholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based
compensation from the limit on corporate deductibility of compensation paid to certain executive officers. 
 (c) Contemplated
Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of
the Code and the regulations promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options granted under it into compliance therewith. 

(d) No Impairment of Rights. Rights under any Stock Award granted before amendment of the Plan shall not be impaired by
any amendment of the Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 

(e) Amendment of Stock Awards. The Board at any time, and from time to time, may amend the terms of any one or more Stock
Awards; provided, however, subject to subsection 10(f), that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in
writing. 
 13. TERMINATION OR SUSPENSION OF THE PLAN. 

(a) Plan Term. The Plan shall have no fixed expiration date; however, the Board may suspend or terminate the Plan at any
time. Notwithstanding the foregoing, Incentive Stock Options may not be granted under the Plan more than ten (10) years after the date the Plan (or any amendment to the Plan that constitutes the adoption of a new plan for purposes of
Section 422 of the Code) is adopted by the Board or approved by the shareholders of the Company, whichever is earlier. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated. No Stock Awards may be
granted under the Plan after the Listing Date. 
 (b) No Impairment of Rights. Suspension or termination of the Plan shall not
impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the Participant. 

  

					
		  	-11-	  	2006 Equity Incentive Plan

 14. EFFECTIVE DATE OF PLAN. 

The Plan shall become effective as determined by the Board, but no Stock Award shall be exercised (or, in the case of a stock bonus, shall be
granted) unless and until the Plan has been approved by the shareholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board. 

15. CHOICE OF LAW. 

The law of the State of Washington shall govern all questions concerning the construction, validity and interpretation of this Plan, without
regard to such state’s conflict of laws rules. 

  

					
		  	-12-	  	2006 Equity Incentive Plan

 APPENDIX A 

TO THE AVALARA, INC. 

2006 EQUITY INCENTIVE PLAN 

(For California Residents Only) 

This Appendix A to the Avalara, Inc. 2006 Equity Incentive Plan (the “Plan”) shall have application only to
Participants who are residents of the State of California. Capitalized terms contained herein shall have the same meanings given to them in the Plan, unless otherwise provided in this Appendix. Notwithstanding any other provision of the Plan to
the contrary and to the extent required by applicable law, the following terms and conditions shall apply to all Stock Awards granted to residents of the State of California, until such time as the Common Stock becomes a “listed
security” under the Securities Act: 
 1. An Option shall have a term of not more than ten (10) years from the date it
was granted. 
 2. Stock Awards shall be nontransferable other than by will or the laws of descent and distribution. Notwithstanding the
foregoing, and to the extent permitted by Section 422 of the Code with respect to Incentive Stock Options, the Board, in its discretion, may permit transfer of a Stock Award to a revocable trust or as otherwise permitted by Rule 701 of the
Securities Act. 
 3. Unless employment or services are terminated for cause, the right to exercise an Option in the event a
Participant’s Continuous Service terminates, to the extent that the Participant is otherwise entitled to exercise an Option on the date of such termination of Continuous Service, shall be for: 

(a) at least six (6) months from the date a Participant’s Continuous Service terminates if termination was caused by death or
Disability; and 
 (b) at least thirty (30) days from the date a Participant’s Continuous Service terminates if termination was
caused by other than death or Disability; 
 (c) but in no event later than the expiration of the term of the Option. 

4. No Stock Award may be granted to a resident of California more than ten (10) years after the earlier of the date the Board adopts the
Plan and the date the shareholders of the Company approve the Plan. 
 5. Shareholders of the Company must approve the Plan by the later of
(a) within 12 months before or after the Plan is adopted by the Board and (b) (i) with respect to Options, prior to or within twelve (12) months of the grant of an Option under the Plan to a resident of the State of California, and
(ii) with respect to Stock Awards other than Options, prior to the issuance of such Stock Awards to a resident of the State of California. Any Option exercised by a California resident or shares issued under a Stock Award to a California resident
shall be rescinded if shareholder approval is not obtained in the foregoing manner. Shares subject to such Stock Awards shall not be counted in determining whether such approval is obtained. 

6. To the extent required by applicable law, the Company shall provide annual financial statements of the Company to each California resident
holding an outstanding Stock Award under the Plan. Such financial statements need not be audited and need not be issued to key persons whose duties at the Company assure them access to equivalent information. 

  

					
		  		  	2006 Equity Incentive Plan

			
	PLAN HISTORY
		
	March 15, 2006	  	Board adopts the Plan, with an initial reserve of 360,000 shares.
		
	June 1, 2006	  	Shareholders approve the Plan, with an initial reserve of 360,000 shares.
		
	July 16, 2007	  	Board approves a 240,000 increase in the share reserve pool, for an aggregate reserve of 600,000 shares.
		
	August 23, 2007	  	Shareholders approve a 240,000 increase in the share reserve pool, for an aggregate reserve of 600,000 shares.
		
	January 11, 2008	  	Board approves a 2,014,558 increase in the share reserve pool, for an aggregate reserve of 2,614,558 shares.
		
	March 23, 2008	  	Shareholders approve a 2,014,558 increase in the share reserve pool, for an aggregate reserve of 2,614,558 shares.
		
	June 22, 2009	  	Board approves a 1,780,000 increase in the share reserve pool, for an aggregate reserve of 4,394,558 shares.
		
	May 14, 2010	  	Shareholders approve a 1,780,000 increase in the share reserve pool, for an aggregate reserve of 4,394,558 shares.
		
	November 2, 2010	  	Board approves a 3,000,000 increase in the share reserve pool, for an aggregate reserve of 7,394,558 shares.
		
	November 5, 2010	  	Shareholders approve a 3,000,000 increase in the share reserve pool, for an aggregate reserve of 7,394,558 shares.
		
	February 18, 2011	  	Board approves an amendment to Section 11(c) regarding acceleration in connection with a Corporate Transaction. Section 11(c) is restated in its entirety as follows:
		
		  	11(c) Asset Sale, Merger, Consolidation or Reverse Merger. In the event of (i) a sale, lease or other disposition of all or substantially all of the assets of the Company, (ii) a merger or consolidation in which the
Company is not the surviving corporation or (iii) a reverse merger in which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other
property, whether in the form of securities, cash or otherwise (individually, a “Corporate Transaction”), then with respect to Stock Awards outstanding under the Plan and held by Participants whose Continuous Service has not terminated,
the vesting of such Stock Awards (and, if applicable, the time during which such Stock Awards may be exercised) shall be accelerated by an amount of time equal to the vesting period prior to the date of the Corporate Transaction (e.g., if a Stock
Award is otherwise vested by 16 months, upon a Corporate Transaction, that Stock Award will be deemed vested 32 months) whether or not any surviving corporation or acquiring corporation assumes any Stock Awards outstanding under the Plan or
substitutes similar stock awards (including an award to acquire the same

			
		  	consideration paid to the shareholders in the Corporate Transaction) for those Stock Awards outstanding under the Plan. If the surviving corporation or acquiring corporation does not assume such Stock Awards, the Stock Awards shall
terminate if not exercised (if applicable) at or prior to the Corporate Transaction and, with respect to any other Stock Awards outstanding under the Plan, such Stock Awards shall terminate if not exercised (if applicable) prior to the Corporate
Transaction.
		
	March 28, 2011	  	Board approves a 1,000,000 increase in the share reserve pool, for an aggregate reserve of 8,394,558 shares.
		
	April 14, 2011	  	Shareholders approve a 1,000,000 increase in the share reserve pool, for an aggregate reserve of 8,394,558 shares.
		
	June 18, 2012	  	Board and shareholders approve a 3,324,000 increase in the share reserve pool, for an aggregate reserve of 11,718,558 shares.
		
	August 13, 2013	  	Board approves a 1,318,070 increase in the share reserve pool, for an aggregate reserve of 13,036,628 shares.
		
	August 23, 2013	  	Shareholders approve a 1,318,070 increase in the share reserve pool, for an aggregate reserve of 13,036,628 shares.
		
	February 12, 2014	  	Board and shareholders approve a 3,362,934 increase in the share reserve pool, for an aggregate reserve of 16,399,562 shares.
		
	May 20, 2014	  	Board approves a 2,500,000 increase in the share reserve pool, for an aggregate reserve of 18,899,562 shares.
		
	May 30, 2014	  	Shareholders approve a 2,500,000 increase in the share reserve pool, for an aggregate reserve of 18,899,562 shares.
		
	April 28, 2015	  	Board approves the amendment and restatement of the Plan in its entirety, including (i) a 7,000,000 increase in the share reserve pool, for an aggregate reserve of 25,899,562 shares, and (ii) various other
updates.
		
	January 26, 2016	  	Shareholders approve the amendment and restatement of the Plan in its entirety, including (i) a 7,000,000 increase in the share reserve pool, for an aggregate reserve of 25,899,562 shares, and (ii) various other
updates.
		
	June 16, 2016	  	Compensation and Leadership Development Committee approves a 2,000,000 increase in the share reserve pool, for an aggregate reserve of 27,899,562 shares, and the restatement of the Plan, as amended.
		
	September 9, 2016	  	Shareholders approve a 2,000,000 increase in the share reserve pool, for an aggregate reserve of 27,899,562 shares.
		
	August 15, 2017	  	Board approves a 5,243,934 increase in the share reserve pool, for an aggregate reserve of 33,143,496 shares, and the restatement of the Plan, as amended.

  
 -2- 

 AVALARA, INC. 

GLOBAL STOCK OPTION GRANT NOTICE 

(2006 EQUITY INCENTIVE PLAN) 

Avalara, Inc. (the “Company”), pursuant to its 2006 Equity Incentive Plan (the “Plan”), hereby
grants to Optionholder (identified below) an option to purchase the number of shares of the Company’s Common Stock set forth below. This option is subject to all the terms and conditions set forth herein and in the Global Stock Option
Agreement, including any Country-Specific Terms and Conditions for Optionholder’s country attached thereto as Appendix A (together, the “Agreement”), and the Plan, all of which are incorporated herein in their entirety.
Capitalized terms used but not otherwise defined herein shall have the meaning given to such terms in the Agreement and the Plan. 
  

			
	Optionholder:	  	 
		
	Grant Date:	  	 
		
	Vesting Commencement Date:	  	 
		
	Number of Shares Subject to Option:	  	 
		
	Exercise Price Per Share:	  	 
		
	Total Exercise Price:	  	 
		
	Expiration Date:	  	 
		
	Type of Grant:	  	☐ Nonstatutory Option ☐ Incentive Stock Option1
		
	Vesting Schedule:	  	 

 Additional Terms/Acknowledgments: 

1. The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this Global Stock Option Grant Notice, the Agreement
and the Plan. Optionholder further acknowledges that as of the Grant Date, this Global Stock Option Grant Notice, the Agreement and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock
in the Company and supersede all prior oral and written agreements on that subject with the exception of (i) options previously granted and delivered to Optionholder under the Plan and (ii) the following agreements only: 

 

			
	OTHER AGREEMENTS:	  	 
		
		  	 

 2. Electronic Transmission for Shareholder Notices. By providing Optionholder’s email address
below, if and when Optionholder exercises this option with respect to any of the shares of Common Stock, Optionholder hereby consents to receive electronically transmitted notices for any and all purposes under the Washington Business Corporation
Act at the email address provided or as subsequently modified by written notice. Unless otherwise required by law, such electronic notice, if sent during normal business hours of the recipient, will be effective on the next business day. 

 

	1 	If this is an Incentive Stock Option, it (plus Optionholder’s other outstanding incentive stock options) cannot be first exercisable for more than $100,000 in any calendar year. Any excess over
$100,000 is a nonstatutory stock option. 

 3. Exercise Price. The exercise price per share of this option represents an amount the
Company believes to be no less than the Fair Market Value of a share of Common Stock as of the Grant Date, determined in good faith in compliance with the requirements of Section 409A of the U.S. Internal Revenue Code. There is no guarantee
that the U.S. Internal Revenue Service (“IRS”) or any relevant tax authorities outside the United States will agree with the Company’s determination. A subsequent determination by the IRS or a relevant tax authority
outside the United States that the exercise price is less than such Fair Market Value could result in adverse tax consequences to Optionholder. By signing below, Optionholder agrees that the Company, its directors, officers and shareholders shall
not be held liable for any tax, penalty, interest or cost incurred by Optionholder as a result of such determination. Optionholder is urged to consult with his or her own tax adviser regarding the tax consequences of the option, including the
application of Section 409A (for U.S. taxpayers). 
  

									
	AVALARA, INC.	 		 	OPTIONHOLDER:
				
	By:	 	 	 		 	 
	Name:	 	 	 		 	
	Title:	 	 	 		 	
					
	Date:	 	 	 		 	Date:	 	 
			
	Address:	 		 	Address:
			
	 100 Ravine Lane N.E., Suite 220

Bainbridge Island, WA 98110
	 		 	 
	 		 	 
					
		 		 		 	Email:	 	 

 ATTACHMENTS: Global Stock Option Agreement and 2006 Equity Incentive Plan 

 AVALARA, INC. 

2006 EQUITY INCENTIVE PLAN 

GLOBAL STOCK OPTION AGREEMENT 

(INCENTIVE STOCK OPTION OR NONSTATUTORY STOCK
OPTION) 
 Pursuant to your Global Stock Option Grant Notice (“Grant
Notice”) and this Global Stock Option Agreement, including any Country-Specific Terms and Conditions for your country attached hereto as Appendix A (collectively, this “Stock Option
Agreement”), Avalara, Inc. (the “Company”) has granted you an option under its 2006 Equity Incentive Plan, as amended and restated (the
“Plan”), to purchase the number of shares of the Company’s Common Stock indicated in your Grant Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly defined in
this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan. 
 The details of your option are as
follows: 
 1. VESTING AND EXERCISABILITY. Subject to the limitations contained herein,
your option will vest and become exercisable as provided in your Grant Notice, provided that vesting will cease upon the termination of your Continuous Service. 

2. NUMBER OF SHARES AND EXERCISE PRICE. The
number of shares of Common Stock subject to your option and your exercise price per share referenced in your Grant Notice may be adjusted from time to time for adjustments in the capitalization of the Company, as provided in Section 11(a) of the
Plan. 
 3. NO EXERCISE PRIOR TO VESTING. An Optionholder
shall not be permitted to exercise any nonvested portion of an option. 
 4. METHOD OF
PAYMENT. Payment of the exercise price is due in full upon exercise of all or any part of your option. You may elect to make payment of the exercise price in cash or by check or in any other manner permitted by the Company, which
may include one or more of the following: 
 (a) By Regulation T Program. If at the time of exercise the Common Stock is publicly
traded and quoted regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either (i) the receipt of cash
(or check) by the Company or (ii) the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds. 

(b) By Exchange. If at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street
Journal, by delivery of already-owned shares of Common Stock either that you have held for the period required to avoid a charge to the Company’s reported earnings (generally six months) or that you did not acquire, directly or indirectly
from the Company, that are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes shall include delivery to the Company
of your attestation of ownership of such shares of Common Stock in a form approved by the Company. The use of this method of payment requires the Company’s prior approval. Notwithstanding the foregoing, you may not exercise your option by
tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. 

 (c) By Cashless Exercise. By delivery of a request to convert an option, in whole or in
part, into that number of shares of Common Stock equal to the quotient obtained by dividing [(A - B)(X)] by (A), where: A= the Fair Market Value of one share of Common Stock on the date of exercise of the option; B = the exercise price for one share
of Common Stock under the option; and X = the number of shares of Common Stock being surrendered pursuant to an executed notice of exercise (in a form designated by the Company). If the above calculation results in a negative number, then no shares
of Common Stock shall be issued or issuable upon conversion of the option. The use of this method of payment requires the Company’s prior approval. 

(d) By Deferred Payment. Pursuant to the following deferred payment alternative; provided, however, that the use of this method of
payment requires the Company’s prior approval: 
 (i) Not less than one hundred percent (100%) of the aggregate exercise price, plus
accrued interest, shall be due four (4) years from date of exercise or, at the Company’s election, upon termination of your Continuous Service. 

(ii) Interest shall be compounded at least annually and shall be charged at the market rate of interest necessary to avoid a charge to
earnings for financial accounting purposes. 
 (iii) At any time that the Company is incorporated in Delaware or any other state with a
similar par value payment requirement, payment of the Common Stock’s “par value,” as defined in the Delaware General Corporation Law, shall be made in cash and not by deferred payment. 

(iv) In order to elect the deferred payment alternative, you must, as a part of your written notice of exercise, give notice of the election
of this payment alternative and, in order to secure the payment of the deferred exercise price to the Company hereunder, if the Company so requests, you must tender to the Company a promissory note and a security agreement covering the purchased
shares of Common Stock, both in form and substance satisfactory to the Company, or such other or additional documentation as the Company may request. 

5. WHOLE SHARES. You may exercise your option only for whole shares of Common Stock. 

6. SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary contained herein,
you may not exercise your option unless the shares of Common Stock issuable upon such exercise are then registered under the Securities Act or, if such shares of Common Stock are not then so registered, the Company has determined that such exercise
and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option must also comply with other applicable laws and regulations governing your option, and you may not exercise your option if the Company
determines that such exercise would not be in material compliance with such laws and regulations. 
 7. TERM. You may
not exercise your option before the commencement of its term or after its term expires. The term of your option commences on the date of grant specified in the Grant Notice (the “Grant Date”) and expires upon
the earliest of the following: 
 (a) Ninety (90) days after the termination of your Continuous Service for any reason other
than your Disability or death, provided that if during any part of such 90-day period your option is not exercisable solely because of the condition set forth in the preceding paragraph relating to
“Securities Law Compliance,” your option shall not expire until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of 90 days after the termination of your Continuous Service; 

 (b) twelve (12) months after the termination of your Continuous Service due to your
Disability; 
 (c) eighteen (18) months after your death if you die either during your Continuous Service or within 90 days after your
Continuous Service terminates; or 
 (d) the Expiration Date indicated in your Grant Notice. 

For purposes of the option, your Continuous Service will be considered terminated as of the date you are no longer actively providing services
to the Company or an Affiliate (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any),
and unless otherwise expressly provided in this Stock Option Agreement or determined by the Company, (i) your right to vest in the option under the Plan, if any, will terminate as of such date and will not be extended by any notice period
(e.g., your period of Continuous Service would not include any contractual notice period or any period of” garden leave” or similar period mandated under employment laws in the jurisdiction where you are employed or the terms of
your employment agreement, if any); and (ii) the period (if any) during which you may exercise the option after such termination of your Continuous Service will commence on the date you cease to actively provide services and will not be
extended by any notice period mandated under employment laws in the jurisdiction where you are employed or terms of your employment agreement, if any; the Company shall have the exclusive discretion to determine when you are no longer actively
providing services for purposes of your option (including whether you may still be considered to be providing services while on a leave of absence). 

If you are U.S. taxpayer and your option is an Incentive Stock Option, note that, to obtain the U.S. federal income tax advantages associated
with an “incentive stock option,” the Code requires that at all times beginning on the Grant Date of your option and ending on the day three (3) months before the date of your option’s exercise, you must be an employee of the
Company or an Affiliate, except in the event of your death or Disability. The Company has provided for extended exercisability of your option under certain circumstances for your benefit, but cannot guarantee that your option will necessarily be
treated as an “incentive stock option” if you continue to provide services to the Company or an Affiliate as a Consultant or Director after your employment terminates or if you otherwise exercise your option more than three (3) months
after the date your employment terminates. 
 8. EXERCISE. 

(a) You may exercise the vested and exercisable portion of your option during its term by delivering a notice of exercise (in a form
designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then
require. In the event your option does not become exercisable during its term, it will automatically expire at the expiration of its term without having become exercisable. 

(b) By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into an
arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (1) the exercise of your option, (2) the lapse of any substantial risk of forfeiture to which the shares of
Common Stock are subject at the time of exercise, or (3) the disposition of shares of Common Stock acquired upon such exercise. 

 (c) If your option is an Incentive Stock Option, by exercising your option you agree that you
will notify the Company in writing within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your option that occurs within two (2) years after the date of your option grant or
within one (1) year after such shares of Common Stock are transferred upon exercise of your option. 
 (d) By exercising your option
you agree that the Company (or a representative of the underwriter(s)) may, in connection with the first underwritten registration of the offering of any securities of the Company under the Securities Act, require that you not sell, dispose of,
transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any shares of Common Stock or other securities of the Company held by you, for a period
of time specified by the underwriter(s) (not to exceed one hundred eighty (180) days or such longer period requested by the underwriter(s) to comply with FINRA rules) following the effective date of the registration statement of the Company filed
under the Securities Act. You further agree to execute and deliver such other agreements as may be reasonably requested by the Company and/or the underwriter(s) that are consistent with the foregoing or that are necessary to give further effect
thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to your shares of Common Stock until the end of such period. The underwriters of the Company’s stock are intended third party
beneficiaries of this Section 8(d) and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 

9. TRANSFERABILITY. Your option is not transferable, except by will or by the laws of descent and
distribution, and is exercisable during your life only by you. 
 10. RIGHT OF FIRST
REFUSAL. The shares of Common Stock you acquire pursuant to the exercise of your option are subject to the right of first refusal set forth in the Plan. 

11. RIGHT OF REPURCHASE. The shares of Common Stock you acquire pursuant to
the exercise of your option are subject to the right of repurchase set forth in the Plan. 
 12. OPTION NOT
A SERVICE CONTRACT. Your option is not an employment or service contract, and nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to
continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to continue your employment. In addition, nothing in your option shall obligate the Company or an Affiliate, their respective shareholders, Boards of Directors,
Officers or Employees to continue any relationship that you might have as a Director or Consultant for the Company or an Affiliate. 

13. TAX CONSEQUENCES. You acknowledge that, regardless of any action taken by the Company
or, if different, your employer (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax related items related to your
participation in the Plan and legally applicable to you (“Tax-Related Items”) is and remains your responsibility and may exceed the amount actually withheld by the Company
or the Employer. You further acknowledge that the Company and/or the Employer (I) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of
the option, including, but not limited to, the grant, vesting or exercise of the option, the subsequent sale of shares of Common Stock acquired pursuant to such exercise and the receipt of any dividends; and (2) do not commit to and are under
no obligation to structure the terms of the grant or any aspect of the option to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are subject to Tax-Related Items in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, as applicable, you acknowledge that the Company and/or the Employer (or former
employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. 

 14. WITHHOLDING OBLIGATIONS. 

(a) Prior to the relevant taxable or tax withholding event, as applicable, you agree to make adequate arrangements satisfactory to the Company
and/or the Employer to satisfy all Tax-Related Items. In this regard, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for all
applicable Tax-Related Items withholding obligations of the Company or the Employer, if any, which arise in connection with your option. 

(b) Subject to compliance with any applicable conditions or restrictions of law, the Company may withhold from shares of Common Stock
otherwise issuable to you upon the exercise of your option a number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of Tax-Related Items required
to be withheld by law. If the obligation for Tax-Related Items is satisfied by withholding in shares of Common Stock, for tax purposes, you are deemed to have been issued the full number of shares of Common
Stock subject to the exercised portion of your option, notwithstanding that a number of the shares of Common Stock are held back solely for the purpose of paying the Tax-Related Items. Any adverse consequences
to you arising in connection with such share withholding procedure shall be your sole responsibility 
 (c) You may not exercise your option
unless the Tax-Related Items withholding obligations of the Company and/or the Employer are satisfied. Accordingly, you may not be able to exercise your option when desired even though your option is vested
and exercisable, and the Company shall have no obligation to issue a certificate for such shares of Common Stock or release such shares of Common Stock from any escrow provided for herein. 

15. NATURE OF GRANT. In accepting this option, you acknowledge, understand
and agree that: 
 (a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified,
amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan; 
 (b) the grant of this option is
voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted in the past; 

(c) all decisions with respect to future options or other grants, if any, will be at the sole discretion of the Company; 

(d) you are voluntarily participating in the Plan; 

(e) unless otherwise agreed with the Company, this option and the shares of Common Stock subject to this option, and the income and value of
same, are not granted as consideration for, or in connection with the service you may provide as a director of a subsidiary of the Company; 

(f) this option and the shares of Common Stock subject to this option are not intended to replace any pension rights or compensation; 

 (g) this option and the shares of Common Stock subject to this option, and the income and value
of same, are not part of normal or expected compensation for any purpose, including, without limitation, calculating any severance, resignation, termination, redundancy, dismissal,
end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits or similar payments; 

(h) the future value of the shares of Common Stock underlying this option is unknown, indeterminable and cannot be predicted with certainty;

 (i) if the shares of Common Stock underlying this option do not increase in value, this option will have no value; 

(j) if you exercise this option and acquire shares of Common Stock, the value of the shares of Common Stock may increase or decrease in value,
including below the option exercise price; 
 (k) no claim or entitlement to compensation or damages shall arise from forfeiture of this
option resulting (i) from the termination of your Continuous Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are providing services or the terms of your
employment agreement, if any) or (ii) from expiration of this option prior to its becoming exercisable; and 
 (l) neither the
Employer, the Company nor any Affiliate shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of this option or of any amounts due to you pursuant to exercise of
this option or the subsequent sale of any shares of Common Stock acquired upon exercise. 
 16. NO ADVICE
REGARDING GRANT. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of
shares underlying this option. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan. 

17. DATA PRIVACY. You hereby explicitly and unambiguously consent to the collection,
use and transfer, in electronic or other form, of your personal data as described in this Stock Option Agreement and any other option grant materials by and among, as applicable, the Employer, the Company and any Affiliate for the exclusive purpose
of implementing, administering and managing your participation in the Plan. 
 You understand that the Company and the
Employer may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, email address, social insurance number, passport or other identification number, salary,
nationality, job title, any shares of stock or directorships held in the Company, details of all options or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor (“Data”), for
the exclusive purpose of implementing, administering and managing the Plan. 
 You understand that Data will be transferred to
E*TRADE Financial Corporate Services, Inc., 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. You understand
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 your country. You understand that, if you
reside outside the United States, you may request a list 

 
with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You authorize the Company, E*TRADE Financial Corporate Services,
Inc., 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 your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that, if
you reside outside the United States, you 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 your local human resources representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your consent, your
service and career with the Employer will not be affected; the only consequence of refusing or withdrawing your consent is that the Company would not be able to grant you options or other equity awards or administer or maintain such awards.
Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact
your local human resources representative. 
 18. GOVERNING LAW;
VENUE. The validity, construction and effect of this Stock Option Agreement, and of any determinations or decisions made by the Company relating to this Agreement, and the rights of any
and all persons having or claiming to have any interest under this Stock Option Agreement, shall be determined exclusively in accordance with the laws of the State of Washington, without regard to its provisions concerning the applicability of laws
of other jurisdictions. As a condition of this Stock Option Agreement, you agree that you will not bring any action arising under, as a result of, pursuant to or relating to, this Stock Option Agreement in any court other than a federal or state
court in the State of Washington, and you hereby agree and submit to the personal jurisdiction of any federal or state court located in the State of Washington. You further agree that you will not deny or attempt to defeat such personal jurisdiction
or object to venue by motion or other request for leave from any such court. 
 19.
NOTICES. Any notices provided for in your option or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by mail by the
Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 

20. GOVERNING PLAN DOCUMENT. Your option is subject to all
the provisions of the Plan, the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan.
In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. 

21. ISO EXERCISE LIMITATION. If you are U.S. taxpayer and your option is an
Incentive Stock Option, the following provisions shall apply: 
 (a) The aggregate Fair Market Value of the shares of Common Stock with
respect to which you may exercise your option for the first time during any calendar year, when added to the aggregate Fair Market Value of the shares of Common Stock subject to any other options designated as Incentive Stock Options and granted to
you under any stock option plan of the Company or an Affiliate prior to the Grant Date with respect to which such options are exercisable for the first time during the 

 
same calendar year, shall not exceed $100,000 (the “ISO Exercise Limitation”) unless applicable law requires that your option be exercisable sooner.1 
 (b) Your option shall be deemed a Nonstatutory Stock Option to the extent of the number
of vested shares of Common Stock subject to your option otherwise exceed the ISO Exercise Limitation. 
 (c) The ISO Exercise Limitation
shall terminate, and you may fully exercise your option, as to all shares of Common Stock subject to your option for which your option would have been exercisable in the absence of the ISO Exercise Limitation upon the earlier of the following
events: 
 (i) the date of termination of your Continuous Service, 

(ii) the day immediately prior to the effective date of a Corporate Transaction described in subsection 11(c) the Plan in which your option
is not assumed or substituted for as provided in the Plan, or 
 (iii) the day that is ten (10) days prior to the Expiration Date of your
option. 
 22. LANGUAGE. If you have received this Stock Option Agreement or any other
document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. 

23. SEVERABILITY. The provisions of this Stock Option Agreement are severable and if any one or more provisions is
determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 

24. ELECTRONIC DELIVERY AND ACCEPTANCE. The Company may, in its sole
discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. 

25. APPENDIX FOR NON-U.S.
OPTIONHOLDERS. Notwithstanding any provisions in this Stock Option Agreement, if you reside and/or work outside the United States you shall be subject to any Country-Specific Terms and Conditions for your country attached hereto
as Appendix A. If you relocate to or between any of the countries included in Appendix A, the special terms and conditions for such country will apply to you, to the extent the Company determines that the application of such terms and conditions is
necessary or advisable for legal or administrative reasons. Appendix A constitutes part of this Stock Option Agreement. 
 26.
IMPOSITION OF OTHER REQUIREMENTS. The Company reserves the right to impose other requirements on your participation in the Plan, on this option and on any shares of Common Stock
acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

  
  

	1 	For purposes of this provision, your options designated as Incentive Stock Options shall be taken into account in the order in which they were granted to you, and the Fair Market Value of shares of Common Stock shall be
determined as of the time the option with respect to such shares of Common Stock is granted. If Section 422 of the Code is amended to provide for a different limitation from that set forth in this provision, the ISO Exercise Limitation shall be
deemed amended effective as of the date required or permitted by such amendment to the Code. 

 27. WAIVER. You acknowledge that a waiver by the Company of
breach of any provision of this Stock Option Agreement shall not operate or be construed as a waiver of any other provision of this Stock Option Agreement, or of any subsequent breach by you or any other Optionholder. 

28. FOREIGN ASSET/ACCOUNT, EXCHANGE CONTROL AND
TAX REPORTING. Your country may have certain foreign asset/account, exchange control and/or tax reporting requirements, which may affect your ability to acquire or hold shares of Common Stock under
the Plan or cash received from participating in the Plan (including from any sale proceeds arising from the sale of shares of Common Stock) in a brokerage or bank account outside your country. You may be required to report such accounts, assets or
transactions to the tax or other authorities in your country. You also may be required to repatriate the sale proceeds or other funds received as a result of your participation in the Plan to your country through a designated bank or broker and/or
within a certain time after receipt. You acknowledge that it is your responsibility to be compliant with such regulations and you should consult your personal legal advisor for any details. 

29. INSIDER TRADING RESTRICTIONS/MARKET ABUSE
LAWS. You acknowledge that you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell shares of Common Stock or rights to shares of Common Stock
(e.g., options) under the Plan during such times as you are considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from
and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. You are responsible for ensuring compliance with any applicable restrictions and are advised to consult your personal legal advisor on this
matter. 

 APPENDIX A 

AVALARA, INC. 

2006 EQUITY INCENTIVE PLAN 

GLOBAL STOCK OPTION AGREEMENT 

COUNTRY-SPECIFIC TERMS AND CONDITIONS 

Capitalized terms used but not otherwise defined herein shall have the meaning given to such terms in your Stock Option Grant Notice, the Stock Option
Agreement and the Plan. 
 Terms and Conditions 

This Appendix A includes additional terms and conditions that govern the option if you reside and/or work in one of the countries listed below.
If you are a citizen or resident of a country (or are considered as such for local law purposes) other than the one in which you are currently residing and/or working or if you move to another country after receiving the grant of the options, the
Company will, in its discretion, determine the extent to which the terms and conditions herein will be applicable to you. 
 Notifications

 This Appendix A also includes information regarding exchange controls and certain other issues of which you should be aware with
respect to your participation in the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries as of August 2014. Such laws are often complex and change frequently. As a result, the
Company strongly recommends that you not rely on the information in this Appendix A as the only source of information relating to the consequences of your participation in the Plan because the information may be out of date at the time that you
exercise the option or sell shares of Common Stock acquired under the Plan. 
 In addition, the information contained herein is general in
nature and may not apply to your particular situation and the Company is not in a position to assure you of a particular result. Accordingly, you are advised to seek appropriate professional advice as to how the relevant laws in your country may
apply to your situation. 
 If you are a citizen or resident of a country other than the one in which you are currently residing and/or
working (or if you are considered as such for local law purposes) or if you move to another country after receiving the grant of the options, the information contained herein may not be applicable to you in the same manner. 

BRAZIL 
 Terms and Conditions

 COMPLIANCE WITH LAW. You must comply with applicable Brazilian laws and are
responsible for paying any and all applicable taxes associated with the exercise of this option and the sale of shares of Common Stock acquired under the Plan. 

LABOR LAW POLICY AND ACKNOWLEDGMENT. By accepting this
option, you agree that (i) you are making an investment decision, (ii) the shares of Common Stock will be issued to you only if the vesting conditions are met and any necessary services are rendered by you over the vesting period and
(iii) the value of the underlying shares of Common Stock is not fixed and may increase or decrease in value over the vesting period without compensation to you. 

 TAX ON FINANCIAL TRANSACTIONS (IOF). You
acknowledge that the transfer of funds to the United States of America and the conversion of such amounts from BRL to USD will be subject to the Tax on Financial Transactions. You also understand that if you repatriate amounts from the sale of
shares of Common Stock you also may be subject to a Tax on Financial Transactions when funds are converted from USD to BRL. 
 Notifications

 EXCHANGE CONTROL INFORMATION. If you are resident or domiciled in Brazil, you will be required
to submit an annual declaration of assets and rights held outside of Brazil, including any shares of Common Stock acquired under the Plan, to the Central Bank of Brazil if the aggregate value of such assets and rights equals or exceeds US$100,000.
More frequent reporting is required if the aggregate value of such assets and rights exceeds US$100,000,000. Foreign individuals holding Brazilian visas are considered Brazilian residents for purposes of this reporting requirement and must declare
at least the assets held abroad that were acquired subsequent to the date of admittance as a resident of Brazil. 
 CANADA 

Terms and Conditions 
 METHOD
OF PAYMENT; WITHHOLDING OBLIGATIONS. This provision supplements Sections 4 and 14 of the Stock Option Agreement: 

Notwithstanding anything to the contrary in the Plan or the Stock Option Agreement, you will not be permitted to pay the exercise price or any Tax-Related Items by delivery to the Company, or attestation to the Company of ownership, of other shares of Common Stock, or by using a “net exercise” arrangement. 

TERMINATION OF SERVICE. This provision replaces the sixth paragraph of Section 7 of
the Stock Option Agreement: 
 For purposes of the option, your Continuous Service will be considered terminated as of the date that is the earlier of:
(a) the date you receive notice of termination of employment, or (b) the date you are no longer actively employed or actively providing services to the Company or any Affiliate, regardless of any notice period or period of pay in lieu of
such notice required under local law (“Notice Period’’) (including, but not limited to statutory law, regulatory law and/or common law), and unless otherwise expressly provided in this Stock Option
Agreement or determined by the Company, (i) your right to vest in the option under the Plan, if any, will terminate as of such date and will not be extended by any Notice Period; and (ii) the period (if any) during which you may exercise
the option after such termination of your Continuous Service will commence on the date you cease to actively provide services and will not be extended by any Notice Period. The Company shall have the exclusive discretion to determine when you are no
longer actively providing services for purposes of your option (including whether you may still be considered to be providing services while on a leave of absence). 

 The following provisions will apply if the Optionholder is a resident of Quebec: 

LANGUAGE CONSENT. You and the Company acknowledge that it is your express wish that the Stock Option
Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. 

CONSENTEMENT RELATIF A LA LANGUE
UTILISEE. Les parties reconnaissent avoir exigé la rédaction en anglais de la présente convention («Stock Option Agreement »), ainsi que de tous documents exécutés,
avis donnés et procédures judiciaires intentées en vertu de ou liés directement ou indirectement à la présente convention («Stock Option Agreement »). 

DATA PRIVACY. This provision supplements Section 17 of the Stock Option Agreement: 

You hereby authorize the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel, professional
or not, involved in the administration and operation of the Plan. You further authorize the Company, any Affiliate and E*TRADE Financial Corporate Services, Inc. to disclose and discuss the Plan with their advisors. You further authorize the
Company, any Affiliate and E*TRADE Financial Corporate Services, Inc. to record such information and to keep such information in your employee file. 

Notifications 
 FOREIGN
ASSET / ACCOUNT REPORTING NOTIFICATION. Canadian residents are required to report to the tax authorities any foreign property held outside of Canada
(including options and shares of Common Stock acquired under the Plan) annually on form T1135 (Foreign Income Verification Statement) if the total value of the foreign property exceeds C$100,000 at any time during the year. Thus, if the C$100,000
cost threshold is exceeded by other foreign property held, options must be reported (generally at a nil cost). For purposes of such reporting, shares of Common Stock acquired under the Plan may be reported at their adjusted cost bases
(“ACB”). The ACB of a share of Common Stock is generally equal to the fair market value of such share at the time of acquisition; however, if you own other shares of Common Stock (e.g., acquired under other circumstances or
at another time), the ACB may have to be averaged with the ACB of the other shares. 
 You should consult your personal legal advisor to ensure
compliance with applicable reporting obligations. 

 INDIA 

Terms and Conditions 
 METHOD
OF PAYMENT. This provision supplements Section 4 of the Stock Option Agreement: 
 Due to legal restrictions in
India, even if the shares of Common Stock are listed on a recognized national securities exchange at the time of exercise, you may not exercise your option using a cashless sell-to-cover exercise, whereby you
direct a broker or transfer agent to sell some (but not all) of the shares of Common Stock subject to the option and deliver to the Company the amount of the sale proceeds to pay the exercise price and any
Tax-Related Items. However, payment of the exercise price may be made by any of the other methods of payment set forth in the Stock Option Agreement. The Company reserves the right to provide you with this
method of payment depending on the development of local law. 
 Notifications 

EXCHANGE CONTROL INFORMATION. Indian residents are required to repatriate any proceeds from the sale of
shares of Common Stock to India within 90 days of receipt. Upon repatriation, Indian residents should obtain a foreign inward remittance certificate (“FIRC”) from the bank where they deposit the foreign currency
and should maintain the FIRC as evidence of the repatriation of funds in the event the Reserve Bank of India or the Employer requests proof of repatriation. 

FOREIGN ASSET / ACCOUNT REPORTING NOTIFICATION.
Indian residents are required to declare any foreign bank accounts and any foreign financial assets (including shares of Common Stock held outside of India) in their annual tax returns. You are responsible for complying with this reporting
obligation and are encouraged to confer with your personal tax advisor in this regard. 
 IRELAND 

Notifications 
 DIRECTOR
REPORTING OBLIGATION. If you are a director, shadow director or secretary of an Affiliate in Ireland, and your interests in the Company represent more than 1% of the Company’s voting share
capital, you must notify the Irish Affiliate in writing within five business days of receiving or disposing of an interest in the Company (e.g., options, shares of Common Stock), or within five business days of becoming aware of the event
giving rise to the notification requirement or within five days of becoming a director or secretary if such an interest exists at the time. This notification requirement also applies with respect to the interests of your spouse or children under the
age of 18 (whose interests will be attributed to you if you are a director, shadow director or secretary). 
 UNITED KINGDOM

 Terms and Conditions 

UNAPPROVED OPTION. This option is an unapproved option for United Kingdom tax purposes. 

SECTION 431 ELECTION. As a condition of participation in the Plan and the exercise of the option, you agree that, jointly
with the Employer, you shall enter into the joint election within Section 431 of the U.K. Income Tax (Earnings and Pensions) Act 2003 (“ITEPA 2003”) in respect of computing any tax charge on the acquisition
of “Restricted Securities” (as defined in Sections 423 and 424 of ITEPA 2003), and that 

 
you will not revoke such election at any time. This election will be to treat the shares of Common Stock acquired pursuant to the exercise of the option as if such shares of Common Stock were not
“Restricted Securities” for U.K. tax purposes. You must enter into the form of election, which will be provided by the Company, concurrent with the execution of the Stock Option Agreement. 

WITHHOLDING OBLIGATIONS. The following provisions supplement Section 14 of the Stock Option Agreement: 

If payment or withholding of the income tax due is not made within ninety (90) days of the end of the tax year in which the taxable event occurs or such
other period specified in Section 222(l)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected income tax will constitute a loan owed by you to
the Company or the Employer, effective on the Due Date. You agree that the loan will bear interest at the then-current Official Rate of Her Majesty’s Revenue and Customs (“HMRC”), it will be
immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 14 of the Stock Option Agreement. 

Notwithstanding the foregoing, if you are a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act), you
will not be eligible for such a loan to cover the income tax due as described above. In the event that you are such a director or executive officer and the income tax is not collected from or paid by you by the Due Date, the amount of any
uncollected income tax may constitute a benefit to you on which additional income tax and national insurance contributions may be payable. You are responsible for reporting and paying any income tax due on this additional benefit directly to HMRC
under the self-assessment regime. You are responsible for reimbursing the Company or the Employer (as applicable) for the value of any employee national insurance contribution due on this additional benefit and acknowledge that the Company or the
Employer may recover such amount from you by any of the means referred to in Section 14 of the Stock Option Agreement. 
 JOINT
ELECTION. As a condition of your participation in the Plan, you agree to accept any liability for secondary Class I national insurance contributions which may be payable by the Company and/or the Employer in connection with
the option and any event giving rise to Tax-Related Items (the “Employer’s NICs”). Without limitation to the foregoing, you agree to enter into a joint
election with the Company (the “Joint Election”), the form of such Joint Election being formally approved by HMRC, and to execute any other consents or elections required to accomplish the transfer of the
Employer’s NICs to you. You further agree to execute such other joint elections as may be required between you and any successor to the Company and/or the Employer. You further agree that the Company and/or the Employer may collect the
Employer’s NICs from you by any of the means set forth in Section 14 of the Stock Option Agreement. 
 If you do not enter into a Joint Election,
or if approval of the Joint Election has been withdrawn by HMRC, the Company, in its sole discretion and without any liability to the Company or the Employer, may choose not to issue or deliver any shares of Common Stock to you upon exercise of the
option. 

 Please note: Exercising an option to purchase shares of stock is complex. Please allow time
to consult a financial advisor and a tax advisor before you make a decision to exercise. Also, please contact Stock Plan Administrator at legal@avalara.com at least one week prior to the date of option exercise (at the very latest) in
order to receive disclosure documents and for assistance to complete the forms and correctly calculate how much you will need to pay (or have withheld from a paycheck, if applicable) to cover the option and estimated withholding taxes under the
terms of the Plan and your Option Agreement as detailed in this Notice. 
  

					
	☐ Incentive Stock Option	  	Optionholder Name (print):	 	  

			
	☐ Nonstatutory Stock Option	  	Date:	 	  

 NOTICE OF EXERCISE OF STOCK OPTION 

Avalara, Inc. 
 100 Ravine Lane N.E., Suite 220 

Bainbridge Island, WA 98110 
 Ladies and Gentlemen: 

1. Option. I was granted an option (the “Option”) to purchase shares of the common stock
(the “Shares”) of Avalara, Inc. (the “Company”) pursuant to the Company’s (choose one) ☐ 2006 Equity Incentive Plan or ☐ 2004 Equity Incentive Plan
or the ☐ Taxcient, Inc. 2005 Stock Option Plan (each, a “Plan”), my Stock Option Agreement (the “Option Agreement”) and/or my Notice of Grant of Stock Option (the
“Notice”), as follows: 
  

					
	 Date of Option Grant:
	  			
		  	  
	  
	 
		
	 Total Number of Option Shares Granted:
	  			
		  	  
	  
	 
		
	 Exercise Price per Share:
	  	$	                                	 
		  	  
	  
	 

 2. Exercise of Option. I hereby elect to exercise the Option to purchase the following number of
Shares, all of with are Vested Shares in accordance with the Notice and/or Option Agreement: 
  

			
	 Total Shares Purchased:
	 	
		 	  

		
	 Total Exercise Price (Total Shares x Price Per Share):
	 	$
		 	  

		
	 Certificate(s) to be issued in the name of:
	 	
		 	  

 3. Payments. Form of payment enclosed [check all that apply]: 

 

	 	☐	Check for $            , made payable to “AVALARA, INC.” 

 

	 	☐	Cashless Exercise. (These shares will be valued as of the date when this notice is received by the Company.) 

  

	 	☐	Other permitted method pursuant to terms applicable to grant. If other, describe: 

 NOTICE OF
EXERCISE OF STOCK OPTION 

 4. Optionholder Information. 

My address is set forth below. 

5. Acknowledgments and Representations. 

By this exercise, I agree (i) to provide such additional documents as you may require pursuant to the terms of the Plan, (ii) to
provide for the payment by me to you (in the manner designated by you) of your withholding obligation, if any, relating to the exercise of this option, and (iii) if this exercise relates to an incentive stock option, to notify you in writing
within fifteen (15) days after the date of any disposition of any of the shares of Common Stock issued upon exercise of this option that occurs within two (2) years after the date of grant of this option or within one (1) year after
such shares of Common Stock are issued upon exercise of this option. 
 I hereby make the following certifications and representations with
respect to the number of shares of Common Stock of the Company listed above (the “Shares”), which are being acquired by me for my own account upon exercise of the Option as set forth above: 

I acknowledge that the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are
deemed to constitute “restricted securities” under Rule 701 and “control securities” under Rule 144 promulgated under the Securities Act. I warrant and represent to the Company that I have no present intention of distributing or
selling said Shares, except as permitted under the Securities Act and any applicable state securities laws. 
 I further acknowledge that I
will not be able to resell the Shares for at least ninety days (90) after the stock of the Company becomes publicly traded (i.e., subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934)
under Rule 701 and that more restrictive conditions apply to affiliates of the Company under Rule 144. 
 I further acknowledge that all
certificates representing any of the Shares subject to the provisions of the Option shall have endorsed thereon appropriate legends reflecting the foregoing limitations, as well as any legends reflecting restrictions pursuant to the Company’s
Articles of Incorporation, Bylaws and/or applicable securities laws. 
 I further agree that, if required by the Company (or a
representative of the underwriters) in connection with the first underwritten registration of the offering of any securities of the Company under the Securities Act, I will not sell, dispose of, transfer, make any short sale of, grant any option for
the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Shares or other securities of the Company held by me, for a period of time specified by the underwriter(s) (not to exceed one hundred
eighty (180) days) following the effective date of the registration statement of the Company filed under the Securities Act. I further agree to execute and deliver such other agreements as may be reasonably requested by the Company and/or the
underwriter(s) that are consistent with the foregoing or that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to my Shares until the end of such
period. 
 NOTICE OF EXERCISE OF STOCK OPTION 

 I understand and acknowledge that, as a condition to my receipt of the Shares, I may be required
to execute additional agreements, such as a shareholder agreement, right of first refusal and co-sale agreement, voting agreement and/or otherwise, which may subject the Shares to additional restrictions with regards to transfer, voting or
otherwise. 
 I understand that I am purchasing the Shares pursuant to the terms of the Plan, my Option Agreement and/or Notice, copies of
which I have received and carefully read and understand. 
 6. Electronic Transmission for Shareholder Notices. By providing
Optionholder’s email address below, if and when Optionholder exercises this Option with respect to any of the Shares, Optionholder hereby consents to receive electronically transmitted notices for any and all purposes under the Washington
Business Corporation Act at the email address provided or as subsequently modified by written notice. Unless otherwise required by law, such electronic notice, if sent during normal business hours of the recipient, will be effective on the next
business day. 
  

			
	Very truly yours,
	
	  

	
	  

	(Print Name)
		
	Address:	 	  

	
	  

		
	Email:	 	  

 Receipt of the above is hereby acknowledged. 
  

			
	AVALARA, INC.
		
	By:	 	  

		
	Title:	 	  

		
	Dated:	 	  

 NOTICE OF EXERCISE OF STOCK OPTION2005 STOCK OPTION PLAN

 EXHIBIT 10.2 

vAUDIT GROUP, INC. 
 2005
STOCK OPTION PLAN 
 1. PURPOSE. This Stock Option Plan (the “Plan”) is intended to serve as an incentive to, and to encourage stock
ownership by, certain eligible participants rendering services to vAudit Group, Inc., a California corporation (the “Corporation”), and certain affiliates as set forth below, so that they may acquire or increase their proprietary interest
in the Corporation. 
 2. ADMINISTRATION. 

2.1 Committee. The Plan shall be administered by the Board of Directors of the Corporation (the “Board of Directors”) or a
committee of two or more members appointed by the Board of Directors (the “Committee”). If the Board of Directors does not appoint a Committee, reference to the Committee hereinbelow, shall mean the Board of Directors. At the time that the
Corporation has a class of equity securities which are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or is a publicly-held corporation under Internal Revenue Code
Section 162(m), membership in the Committee is limited to Non-Employee Directors as defined in Rule 16b-3 promulgated under Section 16 of the Exchange Act and outside directors as defined in Treasury Regulation § 1.162-27(e)(3).
The Committee shall select one of its members as Chairman and shall appoint a Secretary, who need not be a member of the Committee. The Committee shall hold meetings at such times and places as it may determine and minutes of such meetings shall be
recorded. Acts by a majority of the Committee in a meeting at which a quorum is present and acts approved in writing by a majority of the members of the Committee shall be valid acts of the Committee. 

2.2 Term. If the Board of Directors selects a Committee, the members of the Committee shall serve on the Committee for the period of
time determined by the Board of Directors and shall be subject to removal by the Board of Directors at any time. The Board of Directors may terminate the function of the Committee at any time and resume all powers and authority previously delegated
to the Committee. 
 2.3 Authority. The Committee shall have sole discretion and authority to grant options under the Plan to
eligible participants rendering services to the Corporation or any “parent” or “subsidiary” of the Corporation, as defined in Section 424 of the Internal Revenue Code of 1986, as amended (the “Code”)
(“Parent” or “Subsidiary”), at such times, under such terms and in such amounts as it may decide. For purposes of this Plan and any Stock Option Agreement (as defined below), the term “Corporation” shall include any
Parent or Subsidiary, if applicable. Subject to the express provisions of the Plan, the Committee shall have complete discretion and authority to interpret the Plan, to prescribe, amend and rescind the rules and regulations relating to the Plan, to
determine the details /and provisions of any Stock Option Agreement, to accelerate any options granted under the Plan and to make all other determinations necessary or advisable for the administration of the Plan. 

2.4 Type of Option. The Committee shall have full authority and discretion to determine, and shall specify, whether the eligible
individual will be granted options intended to qualify as incentive options under Section 422 of the Code (“Incentive Options”) or options 

  
 1 

 
which are not intended to qualify under Section 422 of the Code (“Non-Qualified Options”); provided, however, that Incentive Options shall only be granted to employees of the
Corporation, or a Parent or Subsidiary thereof, and shall be subject to the special limitations set forth herein attributable to Incentive Options. 

2.5 Interpretation. The interpretation and construction by the Committee of any provisions of the Plan or of any option granted under
the Plan shall be final and binding on all parties having an interest in this Plan or any option granted hereunder. No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any option
granted under the Plan. 
 3. ELIGIBILITY. 

3.1 General. All directors, officers, employees of and certain persons rendering services to the Corporation, or any Parent or
Subsidiary, relative to the Corporation’s, or any Parent’s or Subsidiaries’, management, operation or development shall be eligible to receive options under the Plan. The selection of recipients of options shall be within the sole and
absolute discretion of the Committee. No person shall be granted an option under this Plan unless such person has executed the grant representation letter set forth on Exhibit “A,” as such Exhibit may be amended by the Committee
from time to time and no person shall be granted an Incentive Option under this Plan unless such person is an employee of the Corporation, or a Parent or Subsidiary, on the date of grant. 

3.2 Termination of Eligibility. 

3.2.1 If an optionee ceases to be employed by the Corporation, or its Parent or Subsidiary, is no longer an officer or member
of the Board of Directors of the Corporation or no longer performs services for the Corporation, or its Parent or Subsidiary for any reason (other than for “cause,” as hereinafter defined, or such optionee’s death), any option granted
hereunder to such optionee shall expire three months after the date the occurrence giving rise to such termination of eligibility (or 1 year in the event an optionee is “disabled,” as defined in Section 22(e)(3) of the Code) or
upon the date it expires by its terms, whichever is earlier. Any option that has not vested in the optionee as of the date of such termination shall immediately expire and shall be null and void. The Committee shall, in its sole and absolute
discretion, decide, using the provisions set forth in Treasury Regulations Section 1.421-7(h), whether an authorized leave of absence or absence for military or governmental service, or absence for any other reason, shall constitute termination
of eligibility for purposes of this Section. 
 3.2.2 If an optionee ceases to be employed by the Corporation, or its Parent
or Subsidiary, is no longer an officer or member of the Board of Directors of the Corporation, or no longer performs services for the Corporation, or its Parent or Subsidiary and such termination is as a result of “cause,” as hereinafter
defined, then all options granted hereunder to such optionee shall expire on the date of the occurrence giving rise to such termination of eligibility or upon the date it expires by its terms, whichever is earlier, and such optionee shall have no
rights with respect to any unexercised options. For purposes of this Plan, “cause” shall mean an optionee’s personal dishonesty, misconduct, breach of fiduciary duty, incompetence, intentional failure to perform stated obligations,
willful violation of any law, rule, regulation or final cease and desist order, or any material breach of any provision of this Plan, any Stock Option Agreement or any employment agreement. The Board of Directors shall have complete discretion and
authority to determine whether the termination of the optionee is for cause. 

  
 2 

 3.3 Death of Optionee and Transfer of Option. In the event an optionee shall die, an
option may be exercised (subject to the condition that no option shall be exercisable after its expiration and only to the extent that the optionee’s right to exercise such option had accrued at the time of the optionee’s death) at any
time within six months after the optionee’s death by the executors or administrators of the optionee or by any person or persons who shall have acquired the option directly from the optionee by bequest or inheritance. Any option that has not
vested in the optionee as of the date of death or termination of employment, whichever is earlier, shall immediately expire and shall be null and void; provided however, that the Committee may include in any option agreement a provision that the
optionee’s shares will vest upon death of the optionee. No option shall be transferable by the optionee other than by will or the laws of intestate succession. 

3.4 Limitation on Incentive Options. No person shall be granted any Incentive Option to the extent that the aggregate fair market value
of the Stock (as defined below) to which such options are exercisable for the first time by the optionee during any calendar year (under all plans of the Corporation as determined under Section 422(d) of the Code) exceeds $100,000. 

4. IDENTIFICATION OF STOCK. The Stock, as defined herein, subject to the options shall be shares of the Corporation’s authorized but unissued or
acquired or reacquired common stock (the “Stock”). Subject to adjustment as provided in Section 6, the aggregate number of shares subject to outstanding options shall not exceed
                     shares of Stock, provided that the maximum number of shares that may be issued subject to Incentive Options shall be
                     shares of Stock. If any option granted hereunder shall expire or terminate for any reason without having been exercised
in full, the unpurchased shares subject thereto shall again be available for purposes of this Plan. Notwithstanding the above, at no time shall the total number of shares of Stock issuable upon exercise of all outstanding options and the total
number of shares of Stock provided for under any stock bonus or similar plan of the Corporation exceed 30% as calculated in accordance with the conditions and exclusions of §260.140.45 of Title 10, California Code of Regulations, based on the
shares of the issuer which are outstanding at the time the calculation is made. 
 5. TERMS AND CONDITIONS OF OPTIONS. Any option granted pursuant to
the Plan shall be evidenced by an agreement (“Stock Option Agreement”) in such form as the Committee shall from time to time determine, which agreement shall comply with and be subject to the following terms and conditions: 

5.1 Number of Shares. Each option shall state the number of shares of Stock to which it pertains. 

5.2 Option Exercise Price. Each option shall state the option exercise price, which shall be determined by the Committee; provided,
however, that (i) the exercise price of any Incentive Option shall not be less than the fair market value of the Stock, as determined by the Committee, on the date of grant of such option, (ii) the exercise price of any Option granted to

  
 3 

 
any person who owns more than 10% of the total combined voting power of all classes of the Corporation’s stock, as determined for purposes of Section 422 of the Code, shall not be less
than 110% of the fair market value of the Stock, as determined by the Committee, on the date of grant of such option, and (iii) the exercise price of any Non-Qualified Option shall not be less than 85% of the fair market value of the Stock, as
determined by the Committee, on the date of grant of such option. 
 5.3 Term of Option. The term of an option granted hereunder
shall be determined by the Committee at the time of grant, but shall not exceed ten years from the date of the grant. The term of any Incentive Option granted to an employee who owns more than 10% of the total combined voting power of all classes of
the Corporation’s stock, as determined for purposes of Section 422 of the Code, shall in no event exceed five years from the date of grant. All options shall be subject to early termination as set forth in this Plan. In no event shall any
option be exercisable after the expiration of its term. 
 5.4 Method of Exercise. An option shall be exercised by written notice to
the Corporation by the optionee (or successor in the event of death) and execution by the optionee of an exercise representation letter in the form set forth on Exhibit “B,” as such Exhibit may be amended by the Committee from
time to time. Such written notice shall state the number of shares with respect to which the option is being exercised and designate a time, during normal business hours of the Corporation, for the delivery thereof (“Exercise Date”), which
time shall be at least 30 days after the giving of such notice unless an earlier date shall have been mutually agreed upon. At the time specified in the written notice, the Corporation shall deliver to the optionee at the principal office of the
Corporation, or such other appropriate place as may be determined by the Committee, a certificate or certificates for such shares. Notwithstanding the foregoing, the Corporation may postpone delivery of any certificate or certificates after notice
of exercise for such reasonable period as may be required to comply with any applicable listing requirements of any securities exchange. In the event an option shall be exercisable by any person other than the optionee, the required notice under
this Section shall be accompanied by appropriate proof of the right of such person to exercise the option. 
 5.5 Medium and Time of
Payment. The option exercise price shall be payable in full on or before the option Exercise Date by certified or bank cashier’s check. 

5.6 Rights as a Shareholder. An optionee or successor shall have no rights as a shareholder with respect to any Stock underlying any
option until the date of the issuance to such optionee of a certificate for such Stock. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which
the record date is prior to the date such Stock certificate is issued, except as provided in Section 6. 
 5.7 Modification,
Extension and Renewal of Options. Subject to the terms and conditions of the Plan, the Committee may modify, extend or renew outstanding options granted under the Plan, or accept the surrender of outstanding options (to the extent not exercised)
and authorize the granting of new options in substitution therefor. 

  
 4 

 5.8 Vesting and Restrictions. The Committee shall have complete authority and discretion
to set the terms, conditions, restrictions, vesting schedules and other provisions of any option in the applicable Stock Option Agreement and shall have complete authority to require conditions and restrictions on any Stock issued pursuant to this
Plan; provided, however, that, except with respect to options granted to officers or directors of the Corporation, options granted pursuant to this Plan shall be exercisable or “vest” at the rate of at least 20% per year over the
5-year period beginning on the date the option is granted. Options granted to officers and directors shall become exercisable or “vest,” subject to reasonable conditions, at any time during any period established by the Corporation. 

5.9 Other Provisions. The Stock Option Agreements shall contain such other provisions, including without limitation, restrictions or
conditions upon the exercise of options, as the Committee shall deem advisable. 
 6. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. 

6.1 Subdivision or Consolidation. Subject to any required action by shareholders of the Corporation, the number of shares of Stock
covered by each outstanding option, and the exercise price thereof, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Stock of the Corporation resulting from a subdivision or consolidation of shares,
including, but not limited to, a stock split, reverse stock split, recapitalization, continuation or reclassification, or the payment of a stock dividend (but only on the Stock) or any other increase or decrease in the number of such shares effected
without receipt of consideration by the Corporation. Any fraction of a share subject to option that would otherwise result from an adjustment pursuant to this Section shall be rounded downward to the next full number of shares without other
compensation or consideration to the holder of such option. 
 6.2 Capital Transactions. Upon a sale or exchange of all or
substantially all of the assets of the Corporation, a merger or consolidation in which the Corporation is not the surviving corporation, a merger, reorganization or consolidation in which the Corporation is the surviving corporation and shareholders
of the Corporation exchange their stock for securities or property, a liquidation of the Corporation or similar transaction, as determined by the Committee (“Capital Transaction”), this Plan and each option issued under this Plan, whether
vested or unvested, shall terminate, unless such options are assumed by a successor corporation in a merger or consolidation, immediately prior to such Capital Transaction; provided, however, that unless the outstanding options are assumed by a
successor corporation in a merger or consolidation, subject to terms approved by the Committee or the options are repurchased pursuant to Section 8, all optionees will have the right, during the 30 days prior to such Capital Transaction, to
exercise all vested options. Notwithstanding the foregoing, in the event there is a merger or consolidation where the Corporation is not the surviving corporation, all options granted under this Plan shall vest 30 days prior to such merger or
consolidation unless such options are assumed by the successor corporation in such merger or consolidation. The Committee may (but shall not be obligated to) (i) accelerate the vesting of any option or (ii) apply the foregoing provisions,
including but not limited to termination of this Plan and any options granted pursuant to the Plan, in the event there is a sale of 50% or more of the stock of the Corporation in any one-year period or a Capital Transaction. 

  
 5 

 6.3 Adjustments. To the extent that the foregoing adjustments relate to stock or
securities of the Corporation, such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. 

6.4 Ability to Adjust. The grant of an option pursuant to the Plan shall not affect in any way the right or power of the Corporation to
make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. 

6.5 Notice of Adjustment. Whenever the Corporation shall take any action resulting in any adjustment provided for in this Section, the
Corporation shall forthwith deliver notice of such action to each optionee, which notice shall set forth the number of shares subject to the option and the exercise price thereof resulting from such adjustment. 

6.6 Limitation on Adjustments. Any adjustment, assumption or substitution of an Incentive Option shall comply with Section 425 of
the Code, if applicable. 
 7. NONASSIGNABILITY. Options granted under this Plan may not be sold, pledged, assigned or transferred in any manner
other than by will or by the laws of intestate succession, and may be exercised during the lifetime of an optionee only by such optionee. Any transfer in violation of this Section shall void such option and any Stock Option Agreement entered
into by the optionee and the Corporation regarding such transferred option shall be void and have no further force or effect. No option shall be pledged or hypothecated in any way, nor shall any option be subject to execution, attachment or similar
process. 
 8. REPURCHASE OPTION. 
 8.1
The Corporation shall have the right to purchase all Stock held by an optionee or any unexercised option held by an optionee which has been obtained pursuant to the Plan, together with any rights, securities or additional stock that has been
received pursuant to a stock dividend, stock split, reorganization or other similar transaction that has been received as a result of an employee option or Stock acquired pursuant thereto in the event (i) an optionee terminates his or her
services with the Corporation, or any Parent or Subsidiary thereof, or (ii) the Corporation so elects, in the event of a Capital Transaction. The price paid for any unexercised option or Stock shall be the fair market value of such option or
Stock as determined herein. The fair market value assigned to any option shall be the fair market value of the Stock as to which it is exercisable reduced by the exercise price. The parties shall first negotiate in good faith to reach an agreement
as to the value of the option or Stock. Absent an agreement within 30 days, the parties shall select one appraiser to determine the value of the Stock. In the event the parties cannot agree as to an appraiser, then each party shall appoint one
appraiser and the two appraisers shall jointly determine a third appraiser. In the event the two appraisers cannot determine a third appraiser, such third appraiser shall be appointed by a Judge of the Superior Court of the County of San Diego,
California. Such appraisers shall make their determination of the fair market value of the Stock, and the average of the two appraisers whose valuations are closest to each other shall control. Any appraiser selected by any party shall be an
appraiser experienced in the area of valuing similar stock. The Corporation and the optionee, or successor, shall each pay for one-half of the cost of any such appraisal. If the Corporation desires to

  
 6 

 
purchase the Stock or options held by an employee as set forth in this Section, then the Corporation shall provide written notice to such optionee at such optionee’s last known address
within 90 days after the termination of such optionee’s employment, or at least 30 days prior to a Capital Transaction. 
 8.2 The
Committee may assign the Corporation’s repurchase option under this Section to any person selected by the Committee including one or more of the shareholders of the Corporation. 

8.3 The repurchase option set forth in this Section shall terminate upon the consummation of an underwritten public offering of the
Corporation’s Stock registered under the Securities Act of 1933, as amended (the “Act”). 
 9. RIGHT OF FIRST REFUSAL. 

9.1 Stock issued pursuant to this Plan together with any rights, securities or additional stock that have been received pursuant to a stock
dividend, stock split, reorganization or other transaction that has been received as a result of an employee option or stock acquired pursuant thereto shall be subject to a right of first refusal by the Corporation in the event the holder of such
shares proposes to sell, pledge or otherwise transfer said shares or any interest in said shares to any person or entity. Any holder of shares of Stock (or other securities) acquired under the Plan desiring to transfer such Stock (or other
securities) or any interest therein shall give written notice to the Corporation describing the proposed transfer, including the price of shares proposed to be transferred, the proposed transfer price and terms, and the name and address of the
proposed transferee. Unless otherwise agreed by the Corporation and the holder of such shares, repurchases by the Corporation under this Section shall be at the proposed price and terms specified in the notice to the Corporation. The
Corporation’s rights under this Section shall be freely assignable. 
 9.2 If the Corporation fails to exercise its right of first
refusal within 30 days from the date upon which the Corporation received the shareholder’s written notice, the shareholder may, within the next 90 days, conclude a transfer of the exact number of shares covered by said notice on terms not more
favorable to the transferee than those described in the notice. Any subsequent proposed transfer by such transferee shall again be subject to the Corporation’s right of first refusal. If the Corporation exercises its right of first refusal, the
shareholder shall endorse and deliver to the Corporation the stock certificates representing the shares being repurchased, and the Corporation shall promptly pay the shareholder the total repurchase price as set forth in the terms of the agreement.
The holders of shares being repurchased pursuant to this Section shall cease to have any rights with respect to such shares immediately upon repurchase. 

9.3 No written notice of a proposed transfer shall be required under this Section and no right of first refusal shall exist with respect
to transfers by will or the laws of intestate succession. 
 9.4 The right of first refusal set forth in this Section shall terminate
upon the consummation of an underwritten public offering of the Corporation’s Stock registered under the Securities Act of 1933, as amended (the “Act”). 

  
 7 

 9.5 Any attempted transfer of any Stock or securities subject to this right of first refusal
which is not made in compliance with this Section shall be null and void. 
 9.6 The Committee may assign the Corporation’s
repurchase option under this Section to any person selected by the Committee including one or more or the shareholders of the Corporation. 
 10. NO
RIGHT OF EMPLOYMENT. Neither the grant nor exercise of any option nor anything in this Plan shall impose upon the Corporation or any other corporation any obligation to employ or continue to employ any optionee. The right of the Corporation and
any other corporation to terminate any employee shall not be diminished or affected because an option has been granted to such employee. 
 11. TERM OF
PLAN. This Plan is effective on the date the Plan is adopted by the Board of Directors and options may be granted pursuant to the Plan from time to time within a period of ten (10) years from such date, or the date of any required
shareholder approval required under the Plan, if earlier. Termination of the Plan shall not affect any option theretofore granted. 
 12. AMENDMENT OF
THE PLAN. The Board of Directors of the Corporation may, subject to any required shareholder approval, suspend, discontinue or terminate the Plan, or revise or amend it in any respect whatsoever with respect to any shares of Stock at that time
not subject to options. 
 13. APPLICATION OF FUNDS. The proceeds received by the Corporation from the sale of Stock pursuant to options may be used
for general corporate purposes. 
 14. RESERVATION OF SHARES. The Corporation, during the term of this Plan, shall at all times reserve and keep
available such number of shares of Stock as shall be sufficient to satisfy the requirements of the Plan. 
 15. NO OBLIGATION TO EXERCISE OPTION. The
granting of an option shall not impose any obligation upon the optionee to exercise such option. 
 16. APPROVAL OF BOARD OF DIRECTORS AND
SHAREHOLDERS. The Plan shall not take effect until approved by the Board of Directors of the Corporation. This Plan shall be approved by a vote of the shareholders within 12 months from the date of approval by the Board of Directors. In the
event such shareholder vote is not obtained, all options granted hereunder, whether vested or unvested, shall be null and void. Further, any Stock acquired pursuant to the exercise of any options under this Agreement may not count for purposes of
determining whether shareholder approval has been obtained. 
 17. WITHHOLDING TAXES. Notwithstanding anything else to the contrary in this Plan or
any Stock Option Agreement, the exercise of any option shall be conditioned upon payment by such optionee in cash, or other provisions satisfactory to the Committee, of all local, state, federal or other withholding taxes applicable, in the
Committee’s judgment, to the exercise or to later disposition of shares acquired upon exercise of an option (including any repurchase of an option or the Stock). 

  
 8 

 18. PARACHUTE PAYMENTS. Any outstanding option under the Plan may not be accelerated to the extent any
such acceleration of such option would, when added to the present value of other payments in the nature of compensation which becomes due and payable to the optionee would result in the payment to such optionee of an excess parachute payment under
Section 280G of the Code. The existence of any such excess parachute payment shall be determined in the sole and absolute discretion of the Committee. 

19. SECURITIES LAWS COMPLIANCE. Notwithstanding anything contained herein, the Corporation shall not be obligated to grant any option under this Plan
or to sell, issue or effect any transfer of any Stock unless such grant, sale, issuance or transfer is at such time effectively (i) registered or exempt from registration under the Securities Act of 1933, as amended (the “Act”) and
(ii) qualified or exempt from qualification under the California Corporate Securities Law of 1968 and any other applicable state securities laws. As a condition to exercise of any option, each optionee shall make such representations as may be
deemed appropriate by counsel to the Corporation for the Corporation to use any available exemption from registration under the Act or qualification under any applicable state securities law. 

20. RESTRICTIVE LEGENDS. The certificates representing the Stock issued upon exercise of options granted pursuant to this Plan will bear the following
legends giving notice of restrictions on transfer under the Act and this Plan, as follows: 
 20.1 THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE BEEN ISSUED OR TRANSFERRED IN A TRANSACTION WHICH WAS NOT REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION AFFORDED BY SUCH ACT. NO SALE OR TRANSFER OF THESE SHARES SHALL BE MADE, NO ATTEMPTED
SALE OR TRANSFER SHALL BE VALID, AND THE ISSUER SHALL NOT BE REQUIRED TO GIVE ANY EFFECT TO ANY SUCH TRANSACTION UNLESS (A) SUCH TRANSACTION SHALL HAVE BEEN DULY REGISTERED UNDER THE ACT OR (B) THE ISSUER SHALL HAVE FIRST RECEIVED AN
OPINON OF COUNSEL SATISFACTORY TO IT THAT SUCH REGISTRATION IS NOT REQUIRED. 
 20.2 THE SALE, TRANSFER, HYPOTHECATION, OR ENCUMBRANCE OF
THE SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY THE PROVISIONS OF A STOCK OPTION AGREEMENT DATED                      AND A STOCK
OPTION PLAN DATED                     , 2005, A COPY OF WHICH MAY BE INSPECTED AT THE CORPORATION’S PRINCIPAL OFFICE. 

20.3 Any other legends required by applicable securities laws as determined by the Committee. 

21. NOTICES. Any notice to be given under the terms of the Plan shall be addressed to the Corporation in care of its Secretary at its principal office,
and any notice to be given to an optionee shall be addressed to such optionee at the address maintained by the Corporation for such person or at such other address as the optionee may specify in writing to the Corporation. 

  
 9 

 22. INFORMATION TO PARTICIPANTS. The Corporation shall make available to all holders of options the
information required pursuant to § 260.140.46 of the California Code of Regulations. 
 As adopted by the Board of Directors as of
                    , 2005. 
  

	
	 vAudit Group, Inc.,
 a California
corporation

	   

	Robert Schulte, CEO

  
 10 

 EXHIBIT A 

Date:                     ,
200     
 vAudit Group, Inc. 
 8745
Aero Drive, Suite 308 
 San Diego, CA 92123 
 Re: 2005 Stock
Option Plan 
 To Whom It May Concern: 
 This
letter is delivered to vAudit Group, Inc., a California corporation (the “Corporation”), in connection with the grant to
                     (the “Optionee”) of an option (the “Option”) to purchase shares of common stock of the Corporation
(the “Stock”) pursuant to the vAudit Group, Inc. 2005 Stock Option Plan dated                     , 2005 (the “Plan”) and
a Stock Option Agreement dated                      (the “Agreement”). The Optionee understands that the Corporation’s receipt
of this letter executed by the Optionee is a condition to the Corporation’s willingness to grant the Option to the Optionee. 
 The
Optionee acknowledges that the grant of the Option by the Corporation is in lieu of any and all other promises of the Corporation to the Optionee, whether written or oral, express or implied, regarding the grant of options or other rights to acquire
Stock. Accordingly, in anticipation of the grant of the Option, the Optionee hereby relinquishes all rights to such other rights, if any, to acquire stock of the Corporation. 

In addition, the Optionee makes the following representations and warranties with the understanding that the Corporation will rely upon them
in the Corporation’s determination of whether the grant of the Option meets the requirements of the “private offering” exemption provided in Section 25102(f) of the California Corporations Code and certain exemptions provided
under the Securities Act of 1933, as amended. 
 1. The Optionee acknowledges receipt of a copy of the Plan and Agreement. The Optionee has
carefully reviewed the Plan and Agreement. 
 2. The Option and the Stock will be acquired by the Optionee for investment only, for the
Optionee’s own account, and not with a view to or for sale in connection with any distribution of the Option or the Stock. The Optionee will not take, or cause to be taken, any action which would cause the Optionee, or any entity or person
affiliated with the Optionee, to be deemed an underwriter with respect to the Option or the Stock. 
 3. The Optionee either: 

 

	 	a.	has a preexisting personal or business relationship with the Corporation or any of its officers, directors or controlling persons of a nature and duration as would allow the Optionee to be aware of the character,
business acumen, general business and financial circumstances of the Corporation or of the person with whom such relationship exists; or 

  
 EXHIBIT “A”

	 	b.	by reason of the Optionee’s business or financial experience, or the business or financial experience of the Optionee’s professional advisor who is unaffiliated with and is not compensated by the Corporation
or any affiliate or selling agent of the Corporation, directly or indirectly, the Optionee has the capacity to protect the Optionee’s interests in connection with the grant of the Option and the purchase of the Stock. 

4. The Optionee acknowledges that an investment in the Corporation represents a speculative investment and a high degree of risk. The Optionee
acknowledges that the Optionee has had the opportunity to obtain and review all information from the Corporation necessary to make a reasonably informed investment decision and that the Optionee has had all questions asked of the Corporation
answered to the reasonable satisfaction of the Optionee. The Optionee is able to bear the economic risk of an investment in the Option and the Stock. 

5. The grant of the Option has not been accompanied by the publication of any advertisement. 

6. The Optionee understands and acknowledges that the Stock has not been, and will not be, registered under the Securities Act of 1933, as
amended, or qualified under the California Corporate Securities Law of 1968. The Optionee understands and acknowledges that the Stock may not be sold without compliance with the registration requirements of federal and applicable state securities
laws unless an exemption from such laws is available. The Optionee understands that the certificate representing the Stock shall bear the legends set forth in the Plan. 

7. The Optionee understands and acknowledges that the Option and the Stock are subject to the terms and conditions of the Plan. 

8. The Optionee understands and agrees that, at the time of exercise of any part of the Option for Stock, the Optionee may be required to
provide the Corporation with additional representations, warranties and/or covenants similar to those contained in this letter. 
 9. The
Optionee is a resident of the State of                     . 

10. The Optionee will notify the Corporation immediately of any change in the above information which occurs before the Option is exercised in
full by the Optionee. 
 The foregoing representations and warranties are given on
                    , 200     at
                                         
               . 
  

	
	OPTIONEE:
	   

  
 EXHIBIT “A”

 EXHIBIT B 
  

							
		  		  	Address of Optionee:  	  	 
		  		  		  	 
		  		  		  	 

 Date:
                    , 200     

vAudit Group, Inc. 
 8745 Aero Drive, Suite 308 

San Diego, CA 92123 
 Re: 2005 Stock Option Plan 

To Whom It May Concern: 
 I (the
“Optionee”) hereby exercise my right to purchase                      shares of common stock (the “Stock”) of vAudit
Group, Inc., a California corporation (the “Corporation”), pursuant to, and in accordance with, the vAudit Group, Inc. 2005 Stock Option Plan dated
                     (the “Plan”) and Stock Option Agreement (the “Agreement”) dated
                    , 200    . As provided in such Plan, I deliver herewith payment as set forth in the Plan in the
amount of the aggregate option exercise price. Please deliver to me at my address as set forth above stock certificates representing the subject shares registered in my name (and (spouse)
                    , as
                     (style of vesting)). 

1. The Optionee acknowledges receipt of a copy of the Plan and Agreement. The Optionee has carefully reviewed the Plan and Agreement. 

2. The Optionee either: 

a. has a preexisting personal or business relationship with the Corporation or any of its officers, directors or controlling
persons of a nature and duration as would allow the undersigned to be aware of the character, business acumen, general business and financial circumstances of the Corporation or of the person with whom such relationship exists; or 

b. by reason of the Optionee’s business or financial experience or the business or financial experience of the
Optionee’s professional advisor(s) who is (are) unaffiliated with and is (are) not compensated by the Corporation or any affiliate or selling agent of the Corporation, directly or indirectly, has the capacity to protect the Optionee’s
interests in connection with the purchase of nonqualified stock options of the Corporation and Stock issuable upon the exercise thereof. 

  
 EXHIBIT “B”

 3. The Optionee is able to bear the economic risk of his investment in the stock options of the
Corporation and the Stock issuable upon exercise thereof. 
 4. The Optionee acknowledges that an investment in the Corporation represents a
speculative investment and a high degree of risk. The Optionee acknowledges that the Optionee has had the opportunity to obtain and review all information from the Corporation necessary to make a reasonably informed investment decision and that the
Optionee has had all questions asked of the Corporation answered to the reasonable satisfaction of the Optionee. 
 5. The grant of Options
for Stock and the exercise of the Options has not been accompanied by the publication of any advertisement. 
 6. The Optionee understands
and acknowledges that the Stock has not, and will not, be registered under the Securities Act of 1933, as amended, or qualified under the California Securities Law of 1968. The Optionee understands and acknowledges that the Stock may not be sold
without compliance with the registration and qualification requirements of federal and applicable state securities laws unless exemptions from such laws are available. The Optionee understands that the certificate representing the Stock shall bear
the legends set forth in the Plan. 
 7. The Optionee is a resident of the State of
                                        
                            . 

8. The Optionee hereby is purchasing for the Optionee’s own account and not with a view to or for sale in connection with any
distribution of the stock options of the Corporation or any Stock issuable upon exercise thereof. 
 The foregoing representations and
warranties are given on                     , 200     at
                    . 
  

	
	OPTIONEE:
	   

  
 EXHIBIT “B”

 AMENDMENT TO 2005 STOCK OPTION PLAN 

This Amendment to the 2005 Stock Option Plan of the vAudit Group, Inc. is made as of November 17, 2006. 

RECITALS 
 A. vAudit
Group, Inc. (the “Corporation”) adopted a 2005 Stock Option Plan dated July 14, 2005 (the “Plan”). 

B. The Corporation desires to amend the Plan as hereinafter provided. 

AMENDMENT 
 1.
Section 3.2.1 of the Plan is amended by deleting the sentence which reads “Any option that is not vested in the optionee as of the date of such termination shall immediately expire and shall be null and void” and the following
substituted in its place and stead: 
 “Subject to any provision in an applicable Stock Option Agreement issued
pursuant to Section 5.8, any option that is not vested in the optionee as of the date of such termination shall immediately expire and shall be null and void.” 

2. Section 4 of the Plan is hereby deleted and the following substituted in its place and stead. 

“Identification of Stock. The Stock, as defined herein, subject to the options shall be shares of the
Corporation’s authorized but unissued or acquired or reacquired common stock (the “Stock”). Subject to adjustment as provided in Section 6, the aggregate number of shares subject to outstanding options shall not exceed
1,800,000 shares of Stock, provided that the maximum number of shares that may be issued subject to Incentive Options shall be 800,000 shares of Stock. If any option granted hereunder shall expire or terminate for any reason without having been
exercised in full, the unpurchased shares subject thereto shall again be available for purposes of this Plan. Notwithstanding the above, at no time shall the total number of shares of Stock issuable upon exercise of all outstanding options and the
total number of shares of Stock provided for under any stock bonus or similar plan of the Corporation exceed 50% as calculated in accordance with the conditions and exclusions of §260.140.45 of Title 10, California Code of Regulations, based on
the shares of the issuer which are outstanding at the time the calculation is made.” 

 As adopted by the Board of Directors as of November 17, 2006. 

 

			
	 VAUDIT GROUP, INC.,
 A
California corporation

		
	By:	 	/s/ Larry Wolfe
		 	Larry Wolfe, President and CEO

 AMENDMENT TO THE 

TAXCIENT, INC. (f/k/a vAudit Group, Inc.) 

2005 STOCK OPTION PLAN 

This Amendment amends the Taxcient, Inc. 2005 Stock Option Plan (the “Plan”) of Taxcient, Inc. (flea vAudit Group,
Inc.), a California corporation (the “Corporation”), as previously amended, effective January     , 2009. Unless otherwise specifically defined herein, each capitalized term used herein shall have the
meaning afforded such term under the Plan. 
 WITNESSETH: 

WHEREAS, pursuant to a unanimous written consent of the Board of Directors of the Corporation dated as of
January     , 2009, the Board of Directors determined it to be in the best interests of the Corporation to amend the Plan to increase the number of shares of Stock authorized for issuance thereunder by Four
Hundred Thousand (400,000) shares1; 
 NOW, THEREFORE, be it resolved that
the Plan is hereby amended as follows: 
 1. Stock Subject to the Plan. Section 4 of the Plan is hereby amended to read in its
entirety as follows: 
 IDENTIFICATION OF STOCK. The Stock, as defined herein, subject to the options shall be shares of the
Corporation’s authorized but unissued or acquired or reacquired common stock (the “Stock”). Subject to adjustment as provided in Section 6, the aggregate number of shares subject to outstanding options shall not exceed
2,200,000 shares of Stock, provided that the maximum number of shares that may be issued subject to Incentive Options shall be 1,200,000 shares of Stock. If any option granted hereunder shall expire or terminate for any reason without having been
exercised in full, the unpurchased shares subject thereto shall again be available for purposes of this Plan. 
 2. Approval of
Amendment. To record the adoption of this Amendment to the Plan by the Board of Directors as of January     , 2009, and the approval by the shareholders of this Amendment as of
January     , 2009, the Company has caused its authorized officer to execute the same. 
  

			
	 TAXCIENT, INC.,
 a California
corporation

		
	By:	 	/s/ Paul Bergholm
		 	Paul Bergholm
		 	Chief Financial Officer

  

	1 	Prior to the effectiveness of this Amendment, 1,800,000 shares of Stock were subject to the Plan. 

 THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE EXERCISE OF SUCH OPTION HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS (“BLUE SKY LAWS”). ANY TRANSFER OF SUCH SECURITIES WILL BE INVALID UNLESS A REGISTRATION STATEMENT UNDER THE ACT
AND AS REQUIRED BY BLUE SKY LAWS IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY SUCH REGISTRATION IS NOT REQUIRED TO COMPLY WITH THE ACT AND BLUE SKY LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OF THE ACT.

 vAUDIT GROUP INC. 

STOCK OPTION AGREEMENT 

SECTION 1. GRANT OF OPTION. 

1.1 Option. On the terms and conditions set forth in the 2005 Stock Option Plan (the
“Plan”) and this Stock Option Agreement (“Agreement”), vAudit Group, Inc., a California corporation (the “Corporation”) grants to
                    , ☐ an Employee or ☐ an Outside Director or ☐ a Consultant (the
“Optionee”), on             ,20     (the “Date of Grant”), the option to purchase
                     (                ) shares of
Common Stock (the “Option Shares”), at the Exercise Price per share of $             (the “Exercise Price”) (not to
be less than eighty-five percent [85%] of Fair Market Value, or one hundred percent [100%] of Fair Market Value for Ten Percent Holders). This Option is intended to be ☐ an ISO (Employees only) or ☐ an NQSO. This Option
will expire ☐ sixty (60) months after the Date of Grant (maximum for an ISO granted to a Ten Percent Holder) or ☐ one hundred twenty (120) months after the Date of Grant (maximum) or ☐
                                        .
Vesting of this grant shall commence on             ,20     (“Initial Vest Date”). 

1.2 Stock Plan and Defined Terms. This Option is granted pursuant to the Plan, a copy of which is has been provided to the Optionee,
and the Optionee acknowledges having received and reviewed the Plan. The provisions of the Plan are incorporated into this Agreement by this reference. Capitalized terms not otherwise defined in this Agreement are defined in the Plan. 

SECTION 2. RIGHT TO EXERCISE. 

2.1 Exercisability and Vesting. This Option shall become exercisable and vest ☐ twenty percent (20%) on
the first anniversary of the Initial Vest Date and thereafter in a series of four (4) successive equal annual installments at the end of each of the next four (4) years (minimum for employees; vesting period may be longer officers,
directors and Consultants), ☐ twenty-five percent (25%) on the first anniversary of the Initial Vest Date, and thereafter in a series of thirty-six (36) successive equal monthly installments, or ☐ in a series of
forty-eight (48) successive equal monthly installments starting on the Initial Vest Date (or 2.0834% per month). Vesting at the end of each annual or monthly period shall occur only if Optionee is an employee, outside director or
consultant, respectively, of the Corporation at the time that such vesting is to occur. 

  
 1 

 SECTION 3. EXERCISE PROCEDURES. 

3.1 Notice of Exercise; Payment. The Optionee or the Optionee’s representative may exercise this Option by giving written
notice of such Optionee’s election to exercise this Option in substantially the form of Stock Option Exercise Notice attached to this Agreement as Exhibit A to the Corporation with payment in cash for the full amount of the aggregate
Exercise Price; provided, however, that at the time of exercise the Corporation may, in its sole discretion, permit another form of payment referenced in Section 7.5 of the Plan. 

3.2 Issuance of Shares. After receiving a proper notice of exercise, the Corporation shall cause to be issued a certificate or
certificates for the shares of Common Stock as to which this Option has been exercised, registered in the name of the person exercising this Option (or in the names of such person and such person’s spouse as community property or as joint
tenants with right of survivorship). 
 3.3 Withholding Taxes. As a condition to the exercise of this Option, the Optionee
shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the
Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the vesting or the disposition of shares of Common Stock acquired by exercising this Option. 

3.4 Fractional Shares. The Corporation shall not be required to issue fractional Shares upon exercise of this Option. 

3.5 Section 83(b) Election. The Optionee shall provide the Corporation with a copy of any timely election made pursuant to
Section 83(b) of the Internal Revenue Code or similar provision of state law (collectively, an “83(b) Election”) in connection with an exercise prior to vesting of the Option made pursuant to Section 2.2 hereof. If the
Optionee makes a timely 83(b) Election, the Optionee shall immediately pay the Corporation any amount necessary to satisfy any applicable federal, state, and local income and employment tax withholding requirements. 

SECTION 4. MISCELLANEOUS PROVISIONS. 

4.1 Notice. Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon
receipt. Such notice shall be given by personal delivery or by registered or certified mail, with postage and fees prepaid. Notice shall be addressed to the Corporation at its principal executive office and to the Optionee at the address that such
Optionee most recently provided to the Corporation. 
 4.2 Entire Agreement. This Agreement and the Plan constitute the entire
agreement between the parties to this Agreement with regard to the subject matter of this Agreement. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the
subject matter of this Agreement. In the event of 

  
 2 

 
any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall prevail. Any dispute or disagreement which may arise under, as a result of, or
pursuant to, this Agreement shall be finally and conclusively determined by the Corporation in its sole discretion, such determination to be binding upon all parties. 

4.3 No Waiver or Amendment. This Agreement may not be amended or modified except with the signed, written consent of the parties to
such amendment or modification. No right shall be deemed waived without the written consent of the party charged with waiving such right. The Corporation may at any time terminate or amend the plan in accordance with the terms thereof; provided,
however, that no such termination or amendment may adversely affect the Optionee’s rights under this Agreement. 
 4.4 Choice
of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California, exclusive of its conflicts of laws provisions. 

4.5 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall
be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 

4.6 Further Assurances. The parties shall from time to time and at all times hereafter make, do, execute, or cause or procure to be
made, done and executed such further acts, deeds, conveyances, consents and assurances without further consideration, which may reasonably be required to effect the transactions contemplated by this Agreement. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 3 

 SECTION 5. EXECUTION. 

By the Optionee’s signature and the signature of the Corporation’s representative below, the Optionee and the Corporation agree that
this Option is granted under and governed by the terms and conditions of this Agreement and the Plan, a copy of which has been provided to the Optionee and is hereby made a part of this Agreement. 

 

									
	OPTIONEE: 	 		 	CORPORATION: 
				
		 		 		 	vAudit Group, Inc.
				
	  
	 		 	By:	 	  

					
	Name:	 	  
	 		 	Name:	 	  

					
	Address:	 	  
	 		 	Title:	 	  

				
	  
	 		 		 	

 CONSENT OF SPOUSE: 
 I,
                                        ,
spouse of
                                        ,
the Optionee, have read and approve the foregoing Agreement. In consideration of granting the Option to my spouse as set forth in the Agreement, I hereby appoint my spouse as may attorney in-fact with respect to the exercise of any rights under the
Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in the Agreement or any shares of Common Stock issued pursuant thereto under the community property laws of the State of California or similar laws
relating to marital property in effect in the state of our residence as of the date of the signing of the Agreement. 
  

									
	Dated:	 	  
	 		 	Signature:	 	  

  
 4 

 EXHIBIT A 

Please note: Exercising an option to purchase shares of stock is complex. Please allow time to consult a financial advisor and a tax
advisor before you make a decision to exercise. Also, please contact Stock Plan Administrator at legal@avalara.com at least one week prior to the date of option exercise (at the very latest) in order to receive disclosure documents and
for assistance to complete the forms and correctly calculate how much you will need to pay (or have withheld from a paycheck, if applicable) to cover the option and estimated withholding taxes under the terms of the Plan and your Option Agreement as
detailed in this Notice. 
  

					
	☐ Incentive Stock Option	  	Optionholder Name (print):	  	  

			
	☐ Nonstatutory Stock Option	  	Date:	  	  

 NOTICE OF EXERCISE OF STOCK OPTION 

Avalara, Inc. 
 100 Ravine Lane N.E., Suite 220 

Bainbridge Island, WA 98110 
 Ladies and Gentlemen: 

1. Option. I was granted an option (the “Option”) to purchase shares of the common stock
(the “Shares”) of Avalara, Inc. (the “Company”) pursuant to the Company’s (choose one) ☐ 2006 Equity Incentive Plan or ☐ 2004 Equity Incentive Plan
or the ☐ Taxcient, Inc. 2005 Stock Option Plan (each, a “Plan”), my Stock Option Agreement (the “Option Agreement”) and/or my Notice of Grant of Stock Option (the
“Notice”), as follows: 
  

					
	 Date of Option Grant:
	  			
		  	  
	  
	 
		
	 Total Number of Option Shares Granted:
	  			
		  	  
	  
	 
		
	 Exercise Price per Share:
	  	$	                            	 
		  	  
	  
	 

 2. Exercise of Option. I hereby elect to exercise the Option to purchase the following number of
Shares, all of with are Vested Shares in accordance with the Notice and/or Option Agreement: 
  

					
	 Total Shares Purchased:
	  			
		  	  
	  
	 
		
	 Total Exercise Price (Total Shares x Price Per Share):
	  	$	                            	 
		  	  
	  
	 
		
	 Certificate(s) to be issued in the name of:
	  			
		  	  
	  
	 

 3. Payments. Form of payment enclosed [check all that apply]: 

 

	 	☐	Check for $            , made payable to “AVALARA, INC.” 

 

	 	☐	Cashless Exercise. (These shares will be valued as of the date when this notice is received by the Company.) 

  

	 	☐	Other permitted method pursuant to terms applicable to grant. If other, describe:
                                        

  
 A-1 

 4. Optionholder Information. 

My address is set forth below. 

5. Acknowledgments and Representations. 

By this exercise, I agree (i) to provide such additional documents as you may require pursuant to the terms of the Plan, (ii) to
provide for the payment by me to you (in the manner designated by you) of your withholding obligation, if any, relating to the exercise of this option, and (iii) if this exercise relates to an incentive stock option, to notify you in writing
within fifteen (15) days after the date of any disposition of any of the shares of Common Stock issued upon exercise of this option that occurs within two (2) years after the date of grant of this option or within one (1) year after
such shares of Common Stock are issued upon exercise of this option. 
 I hereby make the following certifications and representations with
respect to the number of shares of Common Stock of the Company listed above (the “Shares”), which are being acquired by me for my own account upon exercise of the Option as set forth above: 

I acknowledge that the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are
deemed to constitute “restricted securities” under Rule 701 and “control securities” under Rule 144 promulgated under the Securities Act. I warrant and represent to the Company that I have no present intention of distributing or
selling said Shares, except as permitted under the Securities Act and any applicable state securities laws. 
 I further acknowledge that I
will not be able to resell the Shares for at least ninety days (90) after the stock of the Company becomes publicly traded (i.e., subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934)
under Rule 701 and that more restrictive conditions apply to affiliates of the Company under Rule 144. 
 I further acknowledge that all
certificates representing any of the Shares subject to the provisions of the Option shall have endorsed thereon appropriate legends reflecting the foregoing limitations, as well as any legends reflecting restrictions pursuant to the Company’s
Articles of Incorporation, Bylaws and/or applicable securities laws. 
 I further agree that, if required by the Company (or a
representative of the underwriters) in connection with the first underwritten registration of the offering of any securities of the Company under the Securities Act, I will not sell, dispose of, transfer, make any short sale of, grant any option for
the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Shares or other securities of the Company held by me, for a period of time specified by the underwriter(s) (not to exceed one hundred
eighty (180) days) following the effective date of the registration statement of the Company filed under the Securities Act. I further agree to execute and deliver such other agreements as may be reasonably requested by the Company and/or the
underwriter(s) that are consistent with the foregoing or that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to my Shares until the end of such
period. 

  
 A-2 

 I understand and acknowledge that, as a condition to my receipt of the Shares, I may be required
to execute additional agreements, such as a shareholder agreement, right of first refusal and co-sale agreement, voting agreement and/or otherwise, which may subject the Shares to additional restrictions with regards to transfer, voting or
otherwise. 
 I understand that I am purchasing the Shares pursuant to the terms of the Plan, my Option Agreement and/or Notice, copies of
which I have received and carefully read and understand. 
 6. Electronic Transmission for Shareholder Notices. By providing
Optionholder’s email address below, if and when Optionholder exercises this Option with respect to any of the Shares, Optionholder hereby consents to receive electronically transmitted notices for any and all purposes under the Washington
Business Corporation Act at the email address provided or as subsequently modified by written notice. Unless otherwise required by law, such electronic notice, if sent during normal business hours of the recipient, will be effective on the next
business day. 
  

			
	Very truly yours,
	
	  

	
	  

	(Print Name)
		
	Address:	 	  

	
	  

		
	Email:	 	  

  

			
	Receipt of the above is hereby acknowledged.
	
	AVALARA, INC.
		
	By:	 	  

		
	Title:	 	  

		
	Dated:	 	  

  
 A-3 

 ELECTION PURSUANT TO SECTION 83(B) 

OF THE INTERNAL REVENUE CODE 
 This
statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treasury Regulations Section 1.83-2. 
  

	(1)	The person who performed the services is: 

  

					
	Name:	 	  
	 	

					
	Address:	 	  
	 	

					
	Social Security No.:	 	  
	 	

					
	Taxpayer Ident. No.:	 	  
	 	

					
	Taxable Year:	 	  
	 	

  

	(2)	The property with respect to which the election is being made is                  shares of Common Stock of vAudit Group, Inc..

  

	(3)	The property was issued on             , 20    . 

 

	(4)	The fair market value at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is
$             per share. 

  

	(5)	The amount paid for such property is $             per share. 

  

	(6)	A copy of this statement was furnished to vAudit Group, Inc., for whom the taxpayer rendered the service underlying the transfer of property. 

 

	
	  

	Tax Payer:
	
	  

	Name of Spouse (if any):
	
	Dated:             , 20    .

  
 1

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