Document:

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Exhibit 4.2

STEELCLOUD, INC.

2007 STOCK OPTION PLAN

As adopted May 8, 2007

1. PURPOSE OF PLAN; ADMINISTRATION

     1.1 Purpose.

     The SteelCloud, Inc. 2007 Stock Option Plan (hereinafter, the “Plan”) is hereby established to
grant to officers and other employees of SteelCloud, Inc. (the “Company”) or of its parents or
subsidiaries (as defined in Sections 424(e) and (f), respectively, of the Internal Revenue Code of
1986, as amended (the “Code”)), if any (individually and collectively, the Company”), and to
non-employee directors, consultants and advisors and other persons who may perform significant
services for or on behalf of the Company, a favorable opportunity to acquire common stock, $.001
par value (“Common Stock”), of the Company and, thereby, to create an incentive for such persons to
remain in the employ of or provide services to the Company and to contribute to its success.

     The Company may grant under the Plan both incentive stock options within the meaning of
Section 422 of the Code (“Incentive Stock Options”) and stock options that do not qualify for
treatment as Incentive Stock Options (“Nonstatutory Options”). Unless expressly provided to the
contrary herein, all references herein to “options,” shall include both incentive Stock Options and
Nonstatutory Options.

     1.2 Administration.

     The Plan shall be administered by the Board of Directors of the Company (the “Board”), if each
member is a “Non-Employee Director” within the meaning of Rule 16b-3 under the Securities Exchange
Act of 1934, as amended (“Rule 16b-3”), or a committee (the “Committee”) of two or more directors,
each of whom is a Non-Employee Director. Appointment of Committee members shall be effective upon
acceptance of appointment. Committee members may resign at any time by delivering written notice
to the Board. Vacancies in the Committee may be filled by the Board. Until such time that the
Committee is properly appointed, the Board shall administer the Plan in accordance with the terms
of this Section 1.2.

     A majority of the members of the Committee shall constitute a quorum for the purposes of the
Plan. Provided a quorum is present, the Committee may take action by affirmative vote or consent
of a majority of its members present at a meeting. Meetings may be held telephonically as long as
all members are able to hear one another, and a member of the Committee shall be deemed to be
present for this purpose if he or she is in simultaneous communication by telephone with the other
members who are able to hear one another. In lieu of action at a meeting, the Committee may act by
written consent of a majority of its members.

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     Subject to the express provisions of the Plan, the Committee shall have the authority to
construe and interpret the Plan and all Stock Option Agreements (as defined in Section 3.4) entered
into pursuant hereto and to define the terms used therein, to prescribe, adopt, amend and rescind
rules and regulations relating to the administration of the Plan and to make all other
determinations necessary or advisable for the administration of the Plan; provided, however, that
the Committee may delegate nondiscretionary administrative duties to such employees of the Company
as it deems proper; and, provided, further, in its absolute discretion, the Board may at any time
and from time to time exercise any and all rights and duties of the Committee under the Plan.
Subject to the express limitations of the Plan, the Committee shall designate the individuals from
among the class of persons eligible to participate as provided in Section 1.3 who shall receive
options, whether an optionee will receive Incentive Stock Options or Nonstatutory Options, or both,
and the amount, price, restrictions and all other terms and provisions of such options (which need
not be identical).

     Members of the Committee shall receive such compensation for their services as members as may
be determined by the Board. All expenses and liabilities which members of the Committee incur in
connection with the administration of this Plan shall be borne by the Company. The Committee may,
with the approval of the Board, employ attorneys, consultants, accountants, appraisers, brokers or
other persons. The Committee, the Company and the Company’s officers and directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons. No members of the
Committee or Board shall be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan, and all members of the Committee shall be fully protected
by the Company in respect of any such action, determination or interpretation.

     1.3 Participation.

     Officers and other employees of the Company, non-employee directors, consultants and advisors
and other persons who may perform significant services on behalf of the Company shall be eligible
for selection to participate in the Plan upon approval by the Committee; provided, however, that
only “employees” (within the meaning of Section 3401(c) of the Code) of the Company shall be
eligible for the grant of Incentive Stock Options. An individual who has been granted an option
may, if otherwise eligible, be granted additional options if the Committee shall so determine. No
person is eligible to participate in the Plan by matter of right; only those eligible persons who
are selected by the Committee in its discretion shall participate in the Plan.

     1.4 Stock Subject to the Plan.

     Subject to adjustment as provided in Section 3.5, the stock to be offered under the Plan shall
be shares of authorized but unissued Common Stock, including any shares repurchased under the terms
of the Plan or any Stock Option Agreement entered into pursuant hereto. The cumulative aggregate
number of shares of Common Stock to be issued under the Plan shall not exceed 1,500,000, subject to
adjustment as set forth in Section 3.5.

     If any option granted hereunder shall expire or terminate for any reason without having been
fully exercised, the unpurchased shares subject thereto shall again be available for the purposes
of the Plan. For purposes of this Section 1.4, where the exercise price of options is paid by
means of the grantee’s surrender of previously owned shares of Common Stock, only the net number of
additional shares issued and which remain outstanding in connection with such exercise shall be
deemed “issued” for purposes of the Plan.

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2. STOCK OPTIONS

     2.1 Exercise Price; Payment.

     (a) The exercise price of each Incentive Stock Option granted under the Plan shall be
determined by the Committee, but shall not be less than 100% of the “Fair Market Value” (as defined
below) of Common Stock on the date of grant. If an Incentive Stock Option is granted to an
employee who at the time such option is granted owns (within the meaning of section 424(d) of the
Code) more than 10% of the total combined voting power of all classes of capital stock of the
Company, the option exercise price shall be at least 110% of the Fair Market Value of Common Stock
on the date of grant. The exercise price of each Nonstatutory Option also shall be determined by
the Committee, but shall not be less than 85% of the Fair Market Value of Common Stock on the date
of grant. The status of each option granted under the Plan as either an Incentive Stock Option or
a Nonstatutory Option shall be determined by the Committee at the time the Committee acts to grant
the option, and shall be clearly identified as such in the Stock Option Agreement relating thereto.

     “Fair Market Value” for purposes of the Plan shall mean: (i) the closing price of a share of
Common Stock on the principal exchange on which shares of Common Stock are then trading, if any, on
the day immediately preceding the date of grant, or, if shares were not traded on the day preceding
such date of grant, then on the next preceding trading day during which a sale occurred; or (ii) if
Common Stock is not traded on an exchange but is quoted on Nasdaq or a successor quotation system,
(1) the last sales price (if Common Stock is then listed on the Nasdaq Stock Market) or (2) the
mean between the closing representative bid and asked price (in all other cases) for Common Stock
on the day prior to the date of grant as reported by Nasdaq or such successor quotation system; or
(iii) if there is no listing or trading of Common Stock either on a national exchange or
over-the-counter, that price determined in good faith by the Committee to be the fair value per
share of Common Stock, based upon such evidence as it deems necessary or advisable.

     (b) In the discretion of the Committee at the time the option is exercised, the exercise price
of any option granted under the Plan shall be paid in full in cash, by check or by the optionee’s
interest-bearing promissory note (subject to any limitations of applicable state corporations law)
delivered at the time of exercise; provided, however, that subject to the timing requirements of
Section 2.7, in the discretion of the Committee and upon receipt of all regulatory approvals, the
person exercising the option may deliver as payment in whole or in part of such exercise price
certificates for Common Stock of the Company (duly endorsed or with duly executed stock powers
attached), which shall be valued at its Fair Market Value on the day of exercise of the option, or
other property deemed appropriate by the Committee; and, provided further, that, subject to Section
422 of the Code, so-called cashless exercises as permitted under applicable rules and regulations
of the Securities and Exchange Commission and the Federal Reserve Board shall be permitted in the
discretion of the Committee. Without limiting the Committee’s discretion in this regard,
consecutive book entry stock-for-stock exercises of options (or “pyramiding”) also are permitted in
the Committee’s discretion.

     Irrespective of the form of payment, the delivery of shares issuable upon the exercise of an
option shall be conditioned upon payment by the optionee to the Company of amounts sufficient to
enable the Company to pay all federal, state, and local withholding taxes resulting, in the
Company’s judgment, from the exercise. In the discretion of the Committee, such payment to the
Company may be effected through (i) the Company’s withholding from the number of shares of Common
Stock that would otherwise be delivered to the optionee by the Company on exercise of the option a
number of shares of Common Stock equal in value (as determined by the Fair Market Value of Common
Stock on the date of exercise) to the aggregate withholding taxes, (ii) payment by the optionee to
the Company of the aggregate withholding taxes in cash, (iii) withholding by the Company from other
amounts contemporaneously owed by the Company to the optionee, or (iv) any combination of these
three methods, as determined by the Committee in its discretion.

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     2.2 Option Period.

     (a) The Committee shall provide, in the terms of each Stock Option Agreement, when the option
subject to such agreement expires and becomes unexercisable, but in no event will an Incentive
Stock Option granted under the Plan be exercisable after the expiration of ten years from the date
it is granted. Without limiting the generality of the foregoing, the Committee may provide in the
Stock Option Agreement that the option subject thereto expires 30 days following a Termination of
Employment (as defined in Section 3.2 hereof) for any reason other than death or disability, or six
months following a Termination of Employment for disability or following an optionee’s death.

     (b) Outside Date for Exercise. Notwithstanding any provision of this Section 2.2, in no event
shall any option granted under the Plan be exercised after the expiration date of such option set
forth in the applicable Stock Option Agreement.

     2.3 Exercise of Options.

     Each option granted under the Plan shall become exercisable and the total number of shares
subject thereto shall be purchasable, in a lump sum or in such installments, which need not be
equal, as the Committee shall determine; provided, however, that each option shall become
exercisable in full no later than ten years after such option is granted, and each option shall
become exercisable as to at least 10% of the shares of Common Stock covered thereby on each
anniversary of the date such option is granted; and provided, further, that if the holder of an
option shall not in any given installment period purchase all of the shares which such holder is
entitled to purchase in such installment period, such holder’s right to purchase any shares not
purchased in such installment period shall continue until the expiration or sooner termination of
such holder’s option. The Committee may, at any time after grant of the option and from time to
time, increase the number of shares purchasable in any installment, subject to the total number of
shares subject to the option and the limitations set forth in Section 2.5. At any time and from
time to time prior to the time when any exercisable option or exercisable portion thereof becomes
unexercisable under the Plan or the applicable Stock Option Agreement, such option or portion
thereof may be exercised in whole or in part; provided, however, that the Committee may, by the
terms of the option, require any partial exercise to be with respect to a specified minimum number
of shares. No option or installment thereof shall be exercisable except with respect to whole
shares. Fractional share interests shall be disregarded, except that they may be accumulated as
provided above and except that if such a fractional share interest constitutes the total shares of
Common Stock remaining available for purchase under an option at the time of exercise, the optionee
shall be entitled to receive on exercise a certified or bank cashier’s check in an amount equal to
the Fair Market Value of such fractional share of stock.

     2.4 Transferability of Options.

     Except as the Committee may determine as aforesaid, an option granted under the Plan shall, by
its terms, be nontransferable by the optionee other than by will or the laws of descent and
distribution, or pursuant to a qualified domestic relations order (as defined by the Code), and
shall be exercisable during the optionee’s lifetime only by the optionee or by his or her guardian
or legal representative. More particularly, but without limiting the generality of the immediately
preceding sentence, an option may not be assigned, transferred (except as provided in the preceding
sentence), pledged or hypothecated (whether by operation of law or otherwise), and shall not be
subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge,
hypothecation or other disposition of any option contrary to the provisions of the Plan and the
applicable Stock Option Agreement, and any levy of any attachment or similar process upon an
option, shall be null and void, and otherwise without effect, and the Committee may, in its sole
discretion, upon the happening of any such event, terminate such option forthwith.

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     2.5 Limitation on Exercise of Incentive Stock Options.

     To the extent that the aggregate Fair Market Value (determined on the date of grant as
provided in Section 2.1 above) of the Common Stock with respect to which Incentive Stock Options
granted hereunder (together with all other Incentive Stock Option plans of the Company) are
exercisable for the first time by an optionee in any calendar year under the Plan exceeds $100,000,
such options granted hereunder shall be treated as Nonstatutory Options to the extent required by
Section 422 of the Code. The rule set forth in the preceding sentence shall be applied by taking
options into account in the order in which they were granted.

     2.6 Disqualifying Dispositions of Incentive Stock Options.

     If Common Stock acquired upon exercise of any Incentive Stock Option is disposed of in a
disposition that, under Section 422 of the Code, disqualifies the option holder from the
application of Section 421(a) of the Code, the holder of the Common Stock immediately before the
disposition shall comply with any requirements imposed by the Company in order to enable the
Company to secure the related income tax deduction to which it is entitled in such event.

     2.7 Certain Timing Requirements.

     At the discretion of the Committee, shares of Common Stock issuable to the optionee upon
exercise of an option may be used to satisfy the option exercise price or the tax withholding
consequences of such exercise, in the case of persons subject to Section 16 of the Securities
Exchange Act of 1934, as amended, only (i) during the period beginning on the third business day
following the date of release of the quarterly or annual summary statement of sales and earnings of
the Company and ending on the twelfth business day following such date or (ii) pursuant to an
irrevocable written election by the optionee to use shares of Common Stock issuable to the optionee
upon exercise of the option to pay all or part of the option price or the withholding taxes made at
least six months prior to the payment of such option price or withholding taxes.

     2.8 No Effect on Employment.

     Nothing in the Plan or in any Stock Option Agreement hereunder shall confer upon any optionee
any right to continue in the employ of the Company, any Parent Corporation or any Subsidiary or
shall interfere with or restrict in any way the rights of the Company, its Parent Corporation and
its Subsidiaries, which are hereby expressly reserved, to discharge any optionee at any time for
any reason whatsoever, with or without cause.

     For purposes of the Plan, “Parent Corporation” shall mean any corporation in an unbroken chain
of corporations ending with the Company if each of the corporations other than the Company then
owns stock possessing 50% or more of the total combined voting power of all classes of stock in one
of the other corporations in such chain. For purposes of the Plan, “Subsidiary” shall mean any
corporation in an unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain then owns stock possessing 50%
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

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3. OTHER PROVISIONS

     3.1 Sick Leave and Leaves of Absence.

     Unless otherwise provided in the Stock Option Agreement, and to the extent permitted by
Section 422 of the Code, an optionee’s employment shall not be deemed to terminate by reason of
sick leave, military leave or other leave of absence approved by the Company if the period of any
such leave does not exceed a period approved by the Company, or, if longer, if the optionee’s right
to reemployment by the Company is guaranteed either contractually or by statute. A Stock Option
Agreement may contain such additional or different provisions with respect to leave of absence as
the Committee may approve, either at the time of grant of an option or at a later time.

     3.2 Termination of Employment.

     For purposes of the Plan “Termination of Employment,” shall mean the time when the
employee-employer relationship between the optionee and the Company, any Subsidiary or any Parent
Corporation is terminated for any reason, including, but not by way of limitation, a termination by
resignation, discharge, death, disability or retirement; but excluding (i) terminations where there
is a simultaneous reemployment or continuing employment of an optionee by the Company, any
Subsidiary or any Parent Corporation, (ii) at the discretion of the Committee, terminations which
result in a temporary severance of the employee-employer relationship, and (iii) at the discretion
of the Committee, terminations which are followed by the simultaneous establishment of a consulting
relationship by the Company, a Subsidiary or any Parent Corporation with the former employee.
Subject to Section 3.1, the Committee, in its absolute discretion, shall determine the affect of
all matters and questions relating to Termination of Employment; provided, however, that, with
respect to Incentive Stock Options, a leave of absence or other change in the employee-employer
relationship shall constitute a Termination of Employment if, and to the extent that such leave of
absence or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and
the then-applicable regulations and revenue rulings under said Section.

     3.3 Issuance of Stock Certificates.

     Upon exercise of an option, the Company shall deliver to the person exercising such option a
stock certificate evidencing the shares of Common Stock acquired upon exercise. Notwithstanding
the foregoing, the Committee in its discretion may require the Company to retain possession of any
certificate evidencing stock acquired upon exercise of an option which remains subject to
repurchase under the provisions of the Stock Option Agreement or any other agreement signed by the
optionee in order to facilitate such repurchase provisions.

     3.4 Terms and Conditions of Options.

     Each option granted under the Plan shall be evidenced by a written Stock Option Agreement
(“Stock Option Agreement”) between the option holder and the Company providing that the option is
subject to the terms and conditions of the Plan and to such other terms and conditions not
inconsistent therewith as the Committee may deem appropriate in each case.

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     3.5 Adjustments Upon Changes in Capitalization; Merger and Consolidation.

     If the outstanding shares of Common Stock are changed into, or exchanged for cash or a
different number or kind of shares or securities of the Company or of another corporation through
reorganization, merger, recapitalization, reclassification, stock split-up, reverse stock split,
stock dividend, stock consolidation, stock combination, stock reclassification or similar
transaction, an appropriate adjustment shall be made by the Committee in the number and kind of
shares as to which options may be granted. In the event of such a change or exchange, other than
for shares or securities of another corporation or by reason of reorganization, the Committee shall
also make a corresponding adjustment changing the number or kind of shares and the exercise price
per share allocated to unexercised options or portions thereof, which shall have been granted prior
to any such change, shall likewise be made. Any such adjustment, however, shall be made without
change in the total price applicable to the unexercised portion of the option (except for any
change in the aggregate price resulting from rounding-off of share quantities or prices).

     In the event of a “spin-off” or other substantial distribution of assets of the Company which
has a material diminutive effect upon the Fair Market Value of the Common Stock, the Committee in
its discretion shall make an appropriate and equitable adjustment to the exercise prices of options
then outstanding under the Plan.

     Where an adjustment under this Section 3.5 of the type described above is made to an Incentive
Stock Option, the adjustment will be made in a manner which will not be considered a “modification”
under the provisions of subsection 424(b)(3) of the Code.

     In connection with the dissolution or liquidation of the Company or a partial liquidation
involving 50% or more of the assets of the Company, a reorganization of the Company in which
another entity is the survivor, a merger or reorganization of the Company under which more than 50%
of the Common Stock outstanding prior to the merger or reorganization is converted into cash or
into a security of another entity, a sale of more than 50% of the Company’s assets, or a similar
event that the Committee determines, in its discretion, would materially alter the structure of the
Company or its ownership, the Committee, upon 30 days prior written notice to the option holders,
may, in its discretion, do one or more of the following: (i) shorten the period during which
options are exercisable (provided they remain exercisable for at least 30 days after the date the
notice is given); (ii) accelerate any vesting schedule to which an option is subject; (iii) arrange
to have the surviving or successor entity grant replacement options with appropriate adjustments in
the number and kind of securities and option prices, or (iv) cancel options upon payment to the
option holders in cash, with respect to each option to the extent then exercisable (including any
options as to which the exercise has been accelerated as contemplated in clause (ii) above), of any
amount that is the equivalent of the Fair Market Value of the Common Stock (at the effective time
of the dissolution, liquidation, merger, reorganization, sale or other event) or the fair market
value of the option. In the case of a change in corporate control, the Committee may, in
considering the advisability or the terms and conditions of any acceleration of the exercisability
of any option pursuant to this Section 3.5, take into account the penalties that may result
directly or indirectly from such acceleration to either the Company or the option holder, or both,
under Section 280G of the Code, and may decide to limit such acceleration to the extent necessary
to avoid or mitigate such penalties or their effects.

     No fractional share of Common Stock shall be issued under the Plan on account of any
adjustment under this Section 3.5.

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     3.6 Rights of Participants and Beneficiaries.

     The Company shall pay all amounts payable hereunder only to the option holder or beneficiaries
entitled thereto pursuant to the Plan. The Company shall not be liable for the debts, contracts or
engagements of any optionee or his or her beneficiaries, and rights to cash payments under the Plan
may not be taken in execution by attachment or garnishment, or by any other legal or equitable
proceeding while in the hands of the Company.

     3.7 Government Regulations.

     The Plan, and the grant and exercise of options and the issuance and delivery of shares of
Common Stock under options granted hereunder, shall be subject to compliance with all applicable
federal and state laws, rules and regulations (including but not limited to state and federal
securities law) and federal margin requirements and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable
in connection therewith. Any securities delivered under the Plan shall be subject to such
restrictions, and the person acquiring such securities shall, if requested by the Company, provide
such assurances and representations to the Company as the Company may deem necessary or desirable
to assure compliance with all applicable legal requirements. To the extent permitted by applicable
law, the Plan and options granted hereunder shall be deemed amended to the extent necessary to
conform to such laws, rules and regulations.

     3.8 Amendment and Termination.

     The Board or the Committee may at any time suspend, amend or terminate the Plan and may, with
the consent of the option holder, make such modifications of the terms and conditions of such
option holder’s option as it shall deem advisable, provided, however, that, without approval of the
Company’s stockholders given within twelve months before or after the action by the Board or the
Committee, no action of the Board or the Committee may, (A) materially increase the benefits
accruing to participants under the Plan; (B) materially increase the number of securities which may
be issued under the Plan; or (C) materially modify the requirements as to eligibility for
participation in the Plan. No option may be granted during any suspension of the Plan or after
such termination. The amendment, suspension or termination of the Plan shall not, without the
consent of the option holder affected thereby, alter or impair any rights or obligations under any
option theretofore granted under the Plan. No option way be granted during any period of
suspension nor after termination of the Plan, and in no event may any option be granted under the
Plan after the expiration of ten years from the date the Plan is adopted by the Board.

     3.9 Time of Grant And Exercise of Option.

     An option shall be deemed to be exercised when the Secretary of the Company receives written
notice from an option holder of such exercise, payment of the exercise price determined pursuant to
Section 2.1 of the Plan and set forth in the Stock Option Agreement, and all representations,
indemnifications and documents reasonably requested by the Committee.

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     3.10 Privileges of Stock Ownership; Non-Distributive Intent; Reports to Option Holders.

     A participant in the Plan shall not be entitled to the privilege of stock ownership as to any
shares of Common Stock not actually issued to the optionee. Upon exercise of an option at a time
when there is not in effect under the Securities Act of 1933, as amended, a Registration Statement
relating to the Common Stock issuable upon exercise or payment therefor and available for delivery
a Prospectus meeting the requirements of Section 10(a)(3) of said Act, the optionee shall represent
and warrant in writing to the Company that the shares purchased are being acquired for investment
and not with a view to the distribution thereof.

     The Company shall furnish to each optionee under the Plan the Company’s annual report and such
other periodic reports, if any, as are disseminated by the Company in the ordinary course to its
stockholders.

     3.11 Legending Share Certificates.

     In order to enforce any restrictions imposed upon Common Stock issued upon exercise of an
option granted under the Plan or to which such Common Stock may be subject, the Committee may cause
a legend or legends to be placed on any share certificates representing such Common Stock, which
legend or legends shall make appropriate reference to such restrictions, including, but not limited
to, a restriction against sale of such Common Stock for any period of time as may be required by
applicable laws or regulations. If any restriction with respect to which a legend was placed on
any certificate ceases to apply to Common Stock represented by such certificate, the owner of the
Common Stock represented by such certificate may require the Company to cause the issuance of a new
certificate not bearing the legend.

     Additionally, and not by way of limitation, the Committee may impose such restrictions on any
Common Stock issued pursuant to the Plan as it may deem advisable, including, without limitation,
restrictions under the requirements of any stock exchange upon which Common Stock is then traded.

     3.12 Use of Proceeds.

     Proceeds realized pursuant to the exercise of options under the Plan shall constitute general
funds of the Company.

     3.13 Changes in Capital Structure; No Impediment to Corporate Transactions.

     The existence of outstanding options under the Plan shall not affect the Company’s right to
effect adjustments, recapitalizations, reorganizations or other changes in its or any other
corporation’s capital structure or business, any merger or consolidation, any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting Common Stock, the dissolution
or liquidation of the Company’s or any other corporation’s assets or business, or any other
corporate act, whether similar to the events described above or otherwise.

     3.14 Effective Date of the Plan.

     The Plan shall be effective as of the date of its approval by the stockholders of the Company
within twelve months after the date of the Board’s initial adoption of the Plan. Options may be
granted but not exercised prior to stockholder approval of the Plan. If any options are so granted
and stockholder approval shall not have been obtained within twelve months of the date of adoption
of this Plan by the Board of Directors, such options shall terminate retroactively as of the date
they were granted.

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     3.15 Termination.

     The Plan shall terminate automatically as of the close of business on the day preceding the
tenth anniversary date of its adoption by the Board or earlier as provided in Section 3.8. Unless
otherwise provided herein, the termination of the Plan shall not affect the validity of any option
agreement outstanding at the date of such termination.

     3.16 No Effect on Other Plans.

     The adoption of the Plan shall not affect any other compensation or incentive plans in effect
for the Company, any Subsidiary or any Parent Corporation. Nothing in the Plan shall be construed
to limit the right of the Company (i) to establish any other forms of incentives or compensation
for employees of the Company, any Subsidiary or any Parent Corporation or (ii) to grant or assume
options or other rights otherwise than under the Plan in connection with any proper corporate
purpose including but not by way of limitation, the grant or assumption of options in connection
with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock
or assets of any corporation, partnership, firm or association.

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Exhibit 4.3

STEELCLOUD, INC.

AMENDED EMPLOYEE STOCK PURCHASE PLAN

          WHEREAS, on May 3, 1999, SteelCloud, Inc. (the “Company”) shareholders approved the adoption
of the Company’s Employee Stock Purchase Plan (the “Plan”); and

          WHEREAS, on May 8, 2007 the Board of Directors of the Company deem it advisable and in the
best interests of the Company to amend the Plan to increase the number of shares of common stock
that may be issued thereunder by 300,000.

          WHEREAS, the Company has currently issued 293,829 shares of common stock under the Plan.

ARTICLE I

PURPOSE

     1.01. PURPOSE. The STEELCLOUD AMENDED Employee Stock Purchase Plan is intended to provide a
method whereby employees of STEELCLOUD, INC. (the “Company”) and its subsidiary corporations will
have an opportunity to acquire a proprietary interest in the Company through the purchase of shares
of the Common Stock of the Company. It is the intention of the Company to have the Plan qualify as
an “employee stock purchase plan” under ss.423 of the Internal Revenue Code of 1986, as amended
(the “Code”). The provisions of the Plan shall be construed so as to extend and limit
participation in a manner consistent with the requirements of that section of the Code.

ARTICLE II

DEFINITIONS

     2.01 BASE PAY. “Base Pay” means regular straight-time earnings excluding payments for
overtime, shift premium, bonuses and other special payments, commissions and other marketing
incentive payments.

     2.02 BOARD. “Board of Directors” or “Board” means the Board of Directors of the Company.

     2.03 COMMITTEE. “Committee” means the individuals described in Article XI.

     2.04 COMMON STOCK. “Common Stock” means the common stock of the Company.

     2.05 DESIGNATED SUBSIDIARY CORPORATION. “Designated Subsidiary Corporation” means a
Subsidiary Corporation which is designated by the Company’s Board of Directors to participate in
the Plan.

     2.06 EMPLOYEE. “Employee” means any person who is employed by the Company or a Designated
Subsidiary Corporation.

     2.07 SUBSIDIARY CORPORATION. “Subsidiary Corporation” means any present or future corporation
which would be a “subsidiary corporation” of the Company as that term is defined in ss.424 of the
Code.

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ARTICLE III

ELIGIBILITY AND PARTICIPATION

     3.01 INITIAL ELIGIBILITY. All Employees are eligible to participate hereunder, commencing on
any Offering Commencement Date.

     3.02 COMMENCEMENT OF PARTICIPATION. An eligible Employee may become a participant by
completing an authorization for a payroll deduction on the form provided by the Company and filing
it with the office of the Human Resources Director of the Company on or before the date set
therefor by the Committee, which date shall be prior to the Offering Commencement Date for the
Offering (as such terms are defined below). Payroll deductions for a participant shall commence on
the applicable Offering Commencement Date when his authorization for a payroll deduction becomes
effective and shall end on the Offering Termination Date of the Offering to which such
authorization is applicable unless sooner terminated by the participant as provided in Article
III.

     3.03 RESTRICTIONS ON PARTICIPATION. Notwithstanding any provision of the Plan to the
contrary, no Employee shall be granted an option to participate in the Plan:

          (a) if, immediately after the grant, such Employee would own stock, and/or hold outstanding
options to purchase stock, possessing 5% or more of the total combined voting power or value of all
classes of stock of the Company or any Subsidiary Corporation. (For purposes of this paragraph, the
rules of ss.424(d) of the Code shall apply in determining stock ownership of any Employee); or

          (b) which permits his rights to purchase stock under all employee stock purchase plans of the
Company and its Subsidiary Corporations to accrue at a rate which exceeds $25,000 in fair market
value of the stock (determined at the time such option is granted) for each calendar year in which
such option is outstanding.

     3.04 LEAVE OF ABSENCE. For purposes of participation in the Plan, a person on leave of
absence shall be deemed to be an Employee for the first 90 days of such leave of absence and such
Employee’s employment shall be deemed to have terminated at the close of business on the 90th day
of such leave of absence unless such Employee shall have returned to regular full-time or part-time
employment (as the case may be) prior to the close of business on such 90th day. Termination by
the Company of any Employee’s leave of absence, other than termination of such leave of absence on
return to full time or part time employment, shall terminate an Employee’s employment for all
purposes of the Plan and shall terminate such Employee’s participation in the Plan and right to
exercise any option.

ARTICLE IV

OFFERINGS

     4.01 SEMI-ANNUAL OFFERING PERIODS.

          (a) Offering Periods. The Plan will be implemented by Offerings in consecutive Offering
Periods, each constituting a six month period. Such Offering Periods shall continue until the
termination of the Plan in accordance with Section 12.05. The first such Offering Period shall be
the six month period beginning on April 1, 2007, and ending on September 30, 2007. Subsequent
Offering Periods will begin on April 1st and October 1st of each year.

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          (b) Offering Commencement Date. The Offering Commencement Date is the first day of an
Offering Period during which the NASDAQ system is open for trading.

          (c) Offering Termination Date. The Offering Termination Date is the last day of an Offering
Period during which the NASDAQ System is open for trading.

     4.02 REVISED OFFERING PERIODS. In the discretion of the Committee, semi-annual Offering
Periods may be divided into quarterly Offering Periods or combined into annual Offering Periods.
The maximum number of shares available during an Offering Period under Section 10.01 shall be
adjusted appropriately.

ARTICLE V

PAYROLL DEDUCTIONS

     5.01 AMOUNT OF DEDUCTION. At the time a participant files his authorization for payroll
deduction, he shall elect to have deductions made from his pay on each payday during the Offering
Period at the rate of 1, 2, 3, 4, 5, 6, 7, 8, 9 or 10% of his base pay in effect at any such
payday.

     5.02 PARTICIPANT’S ACCOUNT. All payroll deductions made for a participant shall be credited
to his account under the Plan. A participant may not make any separate cash payment into such
account except when on leave of absence and then only as provided in ss.5.04.

     5.03 CHANGES IN PAYROLL DEDUCTIONS. A participant may discontinue his participation in the
Plan as provided in Article VIII, but no other change can be made during an Offering and,
specifically, a participant may not alter the amount of his payroll deductions for that Offering.
The payroll deduction form may provide that it shall continue from Offering Period to Offering
Period unless changed by a participant before the beginning of a subsequent Offering Period.

     5.04 LEAVE OF ABSENCE. If a participant goes on a leave of absence, such participant shall
have the right to elect: (a) to withdraw the balance in his or her account pursuant to ss.7.02, (b)
to discontinue contributions to the Plan but remain a participant in the Plan, or (c) remain a
participant in the Plan during such leave of absence (provided the individual was eligible to
Participate at the Offering Commencement Date), authorizing deductions to be made from payments by
the Company or its Designated Subsidiary Corporations to the participant during such leave of
absence and undertaking to make cash payments to the Plan at the end of each payroll period to the
extent that amounts payable by the Company and its Designated Subsidiary Corporations to such
participant are insufficient to meet such participant’s authorized Plan deductions.

ARTICLE VI

GRANTING OF OPTION

     6.01 NUMBER OF OPTION SHARES. On the Offering Commencement Date of each Offering, a
participating Employee shall be deemed to have been granted a qualified option to purchase on the
Offering Termination Date of such Offering Period (at the Option Price in Section 6.02) the number
of shares of the Company’s Common Stock determined by dividing such Employee’s payroll deductions
accumulated during such Offering Period and retained in the participant’s account as of the
Offering Termination Date by the applicable Option Price.

     6.02 OPTION PRICE. The Option Price of Common Stock purchased with payroll deductions made
during an Offering Period for a participant therein shall be the lower of:

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          (a) 85% of the closing price of the stock on the Offering Commencement Date, or (in the event
the stock was not traded on such date) the nearest prior business day on which trading of the
Company’s Common Stock occurred, on the NASDAQ National Market System; or

          (b) 85% of the closing price of the stock on the Offering Termination Date, or (in the event
the stock was not traded on such date) the nearest prior business day on which trading of the
Company’s Common Stock occurred, on the NASDAQ National Market System. If the Company’s Common
Stock is not admitted to trading on the NASDAQ National Market System on any of the aforesaid dates
for which closing prices of the stock are to be determined, then reference shall be made to the
fair market value of the stock on that date, as determined on such basis as shall be established or
specified for the purpose by the Committee.

ARTICLE VII

EXERCISE OF OPTION

     7.01 AUTOMATIC EXERCISE. Unless a participant gives written notice to the Company as
hereinafter provided, his option for the purchase of stock with payroll deductions made during any
Offering will be deemed to have been exercised automatically on the Offering Termination Date
applicable to such Offering, for the purchase of the number of full shares of Common Stock which
the accumulated payroll deductions in his account at that time will purchase at the applicable
Option Price, subject to the maximum stated in Section 10.01. Except as provided in Section 7.03,
any excess in his account at that time will be refunded to him.

     7.02 WITHDRAWAL OF ACCOUNT. By written notice to the Human Resources Director of the Company,
at any time prior to the Offering Termination Date applicable to any Offering, a participant may
elect to withdraw all of the accumulated payroll deductions in his account at such time.

     7.03 FRACTIONAL SHARES. Fractional shares will not be issued under the Plan. Any accumulated
payroll deductions which would have been used to purchase fractional shares will be carried over
and applied to purchase shares in the succeeding Offering Period, if the Employee elects to
participate in such Offering Period. If not, such excess payroll deductions will be promptly
returned to the Employee.

     7.04 TRANSFERABILITY OF OPTION. During a participant’s lifetime, options held by such
participant shall be exercisable only by that participant.

     7.05 DELIVERY OF STOCK. As promptly as practicable after the Offering Termination Date of
each Offering, the Company will deliver to each participant, as appropriate, the stock purchased
upon exercise of his option.

ARTICLE VIII

WITHDRAWAL

     8.01 IN GENERAL. As indicated in ss.7.02, a participant may withdraw payroll deductions
credited to his account under the Plan at any time prior to an Offering Termination Date by giving
written notice to the Human Resources Director of the Company. All of the participant’s payroll
deductions credited to his account will be paid to him promptly after receipt of his notice of
withdrawal, and no further payroll deductions will be made from his pay during such Offering. The
Company may, at its option, treat any attempt to borrow by an Employee on the security of his
accumulated payroll deductions as an election, under ss.7.02, to withdraw such deductions.

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     8.02 EFFECT ON SUBSEQUENT PARTICIPATION. A participant’s withdrawal from any Offering will
not have any effect upon his eligibility to participate in any succeeding Offering or in any
similar plan which may hereafter be adopted by the Company.

     8.03 TERMINATION OF EMPLOYMENT. Upon termination of the participant’s employment for any
reason, including retirement or death (but excluding continuation of a leave of absence for a
period beyond 90 days), the payroll deductions credited to his account will be returned to him, or,
in the case of his death, to the person or persons entitled thereto under ss.12.01.

ARTICLE IX

INTEREST

     9.01 NO PAYMENT OF INTEREST. No interest will be paid or allowed on any money paid into the
Plan or credited to the account of any participating Employee.

ARTICLE X

STOCK

     10.01 SHARES SUBJECT TO PLAN. The stock subject to the Plan shall be shares of the Company’s
Common Stock, which may be (i) authorized but unissued shares, (ii) treasury shares and/or (iii)
shares purchased on the open market by a broker designated by the Company. The maximum number of
shares of Common Stock which shall be issued under the Plan, subject to adjustment upon changes in
capitalization of the Company as provided in ss.12.04, shall be 75,000 shares in each Offering plus
in each Offering all unissued shares from prior Offerings, whether offered or not, not to exceed
600,000 shares for all Offerings. No participant may purchase more than 2,500 shares in any one
Offering Period. If the total number of shares for which options are exercised on any Offering
Termination Date in accordance with Article VI exceeds the maximum number of shares for the
applicable offering, the Company shall make a pro rata allocation of the shares available for
delivery and distribution in as nearly a uniform manner as shall be practicable and as it shall
determine to be equitable, and the balance of payroll deductions credited to the account of each
participant under the Plan shall be returned to him as promptly as possible.

     10.02 PARTICIPANT’S INTEREST IN OPTION STOCK. The participant will have no interest in stock
covered by his option until such option has been exercised.

     10.03 ISSUANCE OF STOCK. Stock purchased under the Plan will be issued in the name of the
participant, or, if the participant so directs by written notice to the Human Resources Director of
the Company prior to the Offering Termination Date applicable thereto, in the names of the
participant and one such other person as may be designated by the participant, as joint tenants
with rights of survivorship or as tenants by the entireties, to the extent permitted by applicable
law.

     10.04 RESTRICTIONS ON EXERCISE. The Board of Directors may, in its discretion, require as
conditions to the exercise of any option that the shares of Common Stock reserved for issuance upon
the exercise of the option shall have been duly listed, upon official notice of issuance, upon a
stock exchange, and that either:

          (a) a registration statement under the Securities Act of 1933, as amended, with respect to
said shares shall be effective, or

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          (b) the participant shall have represented at the time of purchase, in form and substance
satisfactory to the Company, that it is his intention to purchase the shares for investment and not
for resale or distribution.

ARTICLE XI

ADMINISTRATION

     11.01 APPOINTMENT OF COMMITTEE. The Board of Directors shall appoint a committee (the
“Committee”) to administer the Plan, which shall consist of either (a) the full Board of Directors
or (b) no fewer than two members of the Board of Directors.

     11.02 AUTHORITY OF COMMITTEE. Subject to the express provisions of the Plan, the Committee
shall have plenary authority in its discretion to interpret and construe any and all provisions of
the Plan, to adopt rules and regulations for administering the Plan, and to make all other
determinations deemed necessary or advisable for administering the Plan. The Committee’s
determination on the foregoing matters shall be conclusive.

     11.03 RULES GOVERNING THE ADMINISTRATION OF THE COMMITTEE. The Board of Directors may from
time to time appoint members of the Committee in substitution for or in addition to members
previously appointed and may fill vacancies, however caused, in the Committee. The Committee may
select one of its members as its Chairman and shall hold its meetings at such times and places as
it shall deem advisable and may hold telephonic meetings. A majority of its members shall
constitute a quorum. All determinations of the Committee shall be made by a majority of its
members. The Committee may correct any defect or omission or reconcile any inconsistency in the
Plan, in the manner and to the extent it shall deem desirable. Any decision or determination
reduced to writing and signed by a majority of the members of the Committee shall be as fully
effective as if it had been made by a majority vote at a meeting duly called and held. The
Committee may appoint a secretary and shall make such rules and regulations for the conduct of its
business as it shall deem advisable.

     11.04 LIMITED LIABILITY; INDEMNIFICATION. To the maximum extent permitted by Virginia law,
neither the Company, Board or Committee nor any of its members shall be liable for any action or
determination made in good faith with respect to this Plan. In addition to such other rights of
indemnification that they may have, the members of the Board and Committee shall be indemnified by
the Company to the maximum extent permitted by Virginia law against any and all liabilities and
expenses incurred in connection with their service in connection with the Plan in such capacity.

ARTICLE XII

MISCELLANEOUS

     12.01 DESIGNATION OF BENEFICIARY. A participant may file a written designation of a
beneficiary who is to receive any Common Stock which has not been issued or cash which is in the
participant’s account at the time of the participant’s death. Such designation of beneficiary may
be changed by the participant at any time by written notice to the Human Resources Director of the
Company. Upon the death of a participant and upon receipt by the Company of proof of identity and
existence at the participant’s death of a beneficiary validly designated by him under the Plan, the
Company shall deliver such stock and/or cash to such beneficiary. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the Plan who is living at
the time of such participant’s death, the Company shall deliver such stock and/or cash to the
executor or administrator of the estate of the participant, or if no such executor or administrator
has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver
such stock and/or cash to the spouse or to any one or more dependents of the participant as the
Company may designate. No beneficiary shall, prior to the death of the participant by whom he has
been designated, acquire any interest in the stock or cash credited to the participant under the
Plan.

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     12.02 TRANSFERABILITY. Neither payroll deductions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive stock under the Plan may be assigned,
transferred, pledged, or otherwise disposed of in any way by the participant other than by will or
the laws of descent and distribution. Any such attempted assignment, transfer, pledge or other
disposition shall be without effect, except that the Company may treat such act as an election to
withdraw funds in accordance with ss.7.02.

     12.03 USE OF FUNDS. All payroll deductions received or held by the Company under this Plan
may be used by the Company for any corporate purpose and the Company shall not be obligated to
segregate such payroll deductions.

     12.04 ADJUSTMENT UPON CHANGES IN CAPITALIZATION.

          (a) If, while any options are outstanding, the outstanding shares of Common Stock of the
Company have increased, decreased, changed into, or been exchanged for a different number or kind
of shares or securities of the Company through reorganization, merger, recapitalization,
reclassification, stock split, reverse stock split or similar transaction, appropriate and
proportionate adjustments may be made by the Committee in the number and/or kind of shares which
are subject to purchase under outstanding options and on the option exercise price or prices
applicable to such outstanding options. In addition, in any such event, the maximum number and/or
kind of shares which may be offered in the Offerings described in Articles IV and Section 10.01
hereof shall also be proportionately adjusted. No adjustments shall be made for stock dividends.
For the purposes of this Paragraph, any distribution of shares to shareholders in an amount
aggregating 20% or more of the outstanding shares shall be deemed a stock split and any
distributions of shares aggregating less than 20% of the outstanding shares shall be deemed a stock
dividend.

          (b) Upon the dissolution or liquidation of the Company, or upon a reorganization, merger or
consolidation of the Company with one or more corporations as a result of which the Company is not
the surviving corporation, or upon a sale of substantially all of the property or stock of the
Company to another corporation, the Committee shall take such action as it deems appropriate and
equitable, which action may include, without limitation, one of the following: (i) refund of
payroll deductions for such Offering Period; (ii) shortening of the Offering Period or (iii)
providing that the holder of each option then outstanding under the Plan will thereafter be
entitled to receive at the next Offering Termination Date upon the exercise of such option for each
share as to which such option shall be exercised, as nearly as reasonably may be determined, the
cash, securities and/or property which a holder of one share of the Common Stock was entitled to
receive upon and at the time of such transaction. In the event the Plan is continued after such
event, the Board of Directors shall take such steps in connection with such transactions as the
Board shall deem necessary to assure that the provisions of this ss.12.04 shall thereafter be
applicable, as nearly as reasonably may be determined, in relation to the said cash, securities
and/or property as to which such holder of such option might thereafter be entitled to receive.

     12.05 AMENDMENT AND TERMINATION.

          (a) Action by Board. The Board of Directors shall have complete power and authority to
terminate or amend the Plan; provided, however, that the Board of Directors shall not, without the
approval of the shareholders of the Company (i) increase the maximum number of shares which may be
issued under the Plan or under any Offering (except pursuant to ss.ss.4.02 and 12.04); or (ii)
amend the requirements as to the class of employees eligible to purchase stock under the Plan.
Upon termination of the Plan during an Offering Period, at the discretion of the Committee, cash
balances in participants accounts may be refunded or the Offering Termination Date may be
accelerated. No termination, modification, or amendment of the Plan may otherwise, without the
consent of an Employee then having an option under the Plan to purchase stock, adversely affect the
rights of such Employee under such option.

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          (b) Automatic Termination. The Plan shall automatically terminate on the earlier of August 4,
2008, or the issuance of the maximum number of shares available under the Plan pursuant to Section
10.01.

     12.06 TAX WITHHOLDING. At the time an option is exercised or at the time some or all of the
Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate
provision for the Company’s federal, state, or other tax withholding obligations, if any, which
arise upon the exercise of the option or the disposition of the Common Stock. At any time, the
Company may, but shall not be obligated to, withhold from the participant’s compensation the amount
necessary for the Company to meet applicable withholding obligations.

     12.07 DISQUALIFYING DISPOSITION. The Committee may require that a participant notify the
Company of any disposition of shares of Common Stock purchased under the Plan within a period of
two (2) years subsequent to the respective Offering Commencement Date or one (1) year from the
Offering Termination Date.

     12.08 EFFECTIVE DATE. The Amended Plan shall become effective as of May 8, 2007. If the Plan
is not so approved, the Plan shall be discontinued, any options which had been issued shall be
considered nonqualified options and any payroll deductions then held by the Company shall be
refunded to the respective Employees.

     12.09 NO EMPLOYMENT RIGHTS. The Plan does not, directly or indirectly, create in any Employee
or class of Employees any right with respect to continuation of employment by the Company, and it
shall not be deemed to interfere in any way with the Company’s right to terminate, or otherwise
modify, an Employee’s employment at any time.

     12.10 EXCLUSION FROM RETIREMENT AND FRINGE BENEFIT COMPUTATION. No
portion of the award of options under this Plan, or the proceeds from the sale of stock purchased
under the Plan, shall be taken into account as “wages,” “salary” or “compensation” for any purpose,
whether in determining eligibility, benefits or otherwise, under (i) any pension, retirement,
profit sharing or other qualified or non-qualified plan of deferred compensation, (ii) any employee
welfare or fringe benefit plan including, but not limited to, group insurance, hospitalization,
medical, and disability, or (iii) any form of extraordinary pay including, but not limited to,
bonuses, sick pay and vacation pay.

     12.11 EFFECT OF PLAN. The provisions of the Plan shall, in accordance with its terms, be
binding upon, and inure to the benefit of, all successors of each Employee participating in the
Plan, including, without limitation, such Employee’s estate and the executors, administrators or
trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of
creditors of such Employee.

     12.12 EXPENSES. Expenses of administering the Plan shall be borne by the Company except that
brokerage expenses incurred in connection with the purchase of shares shall be included as part of
the cost of the shares to participating Employees.

     12.13 GOVERNING LAW. The law of the Commonwealth of Virginia will govern all matters relating
to this Plan except to the extent it is superseded by the laws of the United States.

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