Document:

exv10w7

 

Exhibit 10.7

GOMEZ, INC.

2005 STOCK INCENTIVE PLAN

(INCLUDING THE ENTERPRISE MANAGEMENT INCENTIVE SUBPLAN 2005)

Approved by the Board of Directors on September 06, 2005

     1. Purpose. This 2005 Stock Incentive Plan (the “Plan”) is intended to
provide incentives: (a) to the officers and other employees of Gomez, Inc., a Delaware corporation
(the “Company”), and any present or future parent or subsidiaries of the Company
(collectively, “Related Corporations”) by providing them with opportunities to purchase
stock in the Company pursuant to options granted hereunder which qualify as “incentive stock
options” under Section 422(b) of the U.S. Internal Revenue Code of 1986, as amended (the
“Code”) (“ISO” or “ISOs”), or, for any officers or other employees in the
United Kingdom, with “enterprise management incentive” options in accordance with Schedule 5 of the
U.K. Income Tax (Earnings and Pensions) Act 2003, as amended (the “Income Tax Act”)
(“EMI” or “EMIs”); (b) to directors, officers, employees, consultants and advisors
of the Company and Related Corporations by providing them with opportunities to purchase stock in
the Company pursuant to options granted hereunder which do not qualify as ISOs (“Non-Qualified
Option” or “Non- Qualified Options”); (c) to directors, officers, employees, consultants and
advisors of the Company and Related Corporations by providing them with opportunities to receive
awards of stock in the Company whether such stock awards are in the form of bonus shares, deferred
stock awards, or of performance share awards (“Awards”); and (d) to directors, officers, employees,
consultants and advisors of the Company and Related Corporations by providing them with
opportunities to make direct purchases of restricted stock in the Company (“Restricted Stock
Purchases”). Both ISOs and Non-Qualified Options are referred to hereafter individually as an
“Option” and collectively as “Options”. Options, Awards and authorizations to make Restricted
Stock Purchases are referred to hereafter individually as a “Stock Right” and collectively
as “Stock Rights”. As used herein, the terms “parent” and “subsidiary” mean “parent corporation”
and “subsidiary corporation”, respectively, as those terms are defined in Section 424 of the Code.

     2. Administration of the Plan.

     A. Board or Committee Administration. The Plan shall be administered by the Board of
Directors of the Company (the “Board”). The Board may appoint a Compensation Committee or a Stock
Incentive Plan Committee (as the case may be, the “Committee”) of two (2) or more of its
members to administer the Plan and to grant Stock Rights hereunder, provided such Committee is
delegated such powers in accordance with applicable state law. (All references in this Plan to the
“Committee” shall mean the Board if no such Compensation Committee or Stock Incentive Plan
Committee has been so appointed). If the Company registers any class of any equity security
pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), the Plan shall be administered in accordance with the applicable rules set forth in Rule
16b-3 or any successor provisions of the Exchange Act (“Rule 16b-3”). From and after the
date the Company becomes subject to Section 162(m) of the Code with respect to compensation earned
under this Plan, each member of the Committee shall also be an “outside director” within the
meaning of Section 162(m) of the Code and the regulations promulgated thereunder.

 

 

     B. Authority of the Committee. Subject to the terms of the Plan, the Committee shall
have the authority to: (i) determine the employees of the Company and Related Corporations (from
among the class of employees eligible under Paragraph 3 to receive ISOs) to whom ISOs may be
granted, and to determine (from among the class of individuals and entities eligible under
Paragraph 3 to receive Non-Qualified Options and Awards and to make Restricted Stock Purchases) to
whom Non-Qualified Options, Awards and authorizations to make Restricted Stock Purchases may be
granted; (ii) determine the time or times at which Options or Awards may be granted or Restricted
Stock Purchases made; (iii) determine the exercise price of shares subject to each Option, which
price shall not be less than the minimum price specified in Paragraph 6, and the purchase price of
shares subject to each Restricted Stock Purchase; (iv) determine whether each Option granted shall
be an ISO or a Non-Qualified Option; (v) determine (subject to Paragraph 7) the time or times when
each Option shall become exercisable and the duration of the exercise period; (vi) determine
whether restrictions such as repurchase options and “drag along” rights and rights of first refusal
are to be imposed on shares subject to Options, Awards and Restricted Stock Purchases and the
nature of such restrictions, if any; (vii) impose such other terms and conditions with respect to
capital stock issued pursuant to Stock Rights not inconsistent with the terms of this Plan as it
deems necessary or desirable; and (viii) interpret the Plan and prescribe and rescind rules and
regulations relating to it.

     If the Committee determines to issue a Non-Qualified Option, the Committee shall take whatever
actions it deems necessary, under the Code and the regulations promulgated thereunder, to ensure
that such Option is not treated as an ISO. The interpretation and construction by the Committee of
any provisions of the Plan or of any Stock Right granted under it shall be final unless otherwise
determined by the Board. The Committee may from time to time adopt such rules and regulations for
carrying out the Plan as it may deem best. No member of the Board or the Committee shall be liable
for any action or determination made in good faith with respect to the Plan or any Stock Right
granted under it.

     C. Delegation of Authority to Grant Awards to Officer. Without limiting the
foregoing, the Board, in its discretion, may also delegate to a single officer of the Company who
is a member of the Board (to the extent consistent with state law) all or part of the Board’s or
Committee’s authority and duties with respect to the granting of Stock Rights to individuals who
are not subject to the reporting and other provisions of Section 16 of the Exchange Act or “covered
employees” within the meaning of Section 162(m) of the Code, subject to such limitations as the
Board or the Committee deems appropriate, including without limitation as to the amount of Stock
Rights that may be granted during the period of delegation, and guidelines as to the determination
of the exercise price of any Option, the purchase price of other Stock Rights and the setting of
vesting schedules or criteria. Such officer (the “Delegated Officer”) shall act as a one
member committee of the Board, and shall in any event be subject to the same limitations as are
applicable to the Committee. References to the Committee in this Plan shall also include the
Delegated Officer, but only to the extent consistent with the authorities and duties delegated to
the Delegated Officer by the Board. The Board may revoke or amend the terms of a delegation at any
time but such action shall not invalidate any prior actions of the Delegated Officer that were
consistent with the terms of the Plan.

     D. Committee Actions. The Committee may select one of its members as its chairman and
shall hold meetings at such time and places as it may determine. Acts by a majority of the
Committee, acting at a meeting (whether held in person or by teleconference), or

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acts reduced to or approved in writing by all of the members of the Committee, shall be the
valid acts of the Committee. From time to time the Board may increase the size of the Committee
and appoint additional members thereof, remove members (with or without cause) and appoint new
members in substitution therefor, fill vacancies however caused, or remove all members of the
Committee and thereafter directly administer the Plan, subject to compliance with Paragraph 2A.

     E. Grant of Stock Rights to Board Members. Stock Rights may be granted to members of
the Board, subject to compliance with Rule 16b-3 when required by Paragraph 2A. All grants of
Stock Rights to members of the Board shall in all respects be made in accordance with the
provisions of this Plan applicable to other eligible persons.

     3. Eligible Employees and Others. ISOs may be granted to any employee of the Company
or any Related Corporation. Those officers and directors of the Company who are not employees may
not be granted ISOs under the Plan. Non-Qualified Options, Awards and authorizations to make
Restricted Stock Purchases may be granted to any employee, officer or director (whether or not also
an employee) of or consultant or advisor to the Company or any Related Corporation. The Committee
may take into consideration a recipient’s individual circumstances in determining whether to grant
a Stock Right. Granting a Stock Right to any individual or entity shall neither entitle that
individual or entity to, nor disqualify him from, participation in any other grant of Stock Rights.
For so long as the Company is a “qualifying company” as defined by Part 3 of Schedule 5 of the
Income Tax Act, all U.K. employees who are “eligible employees” as defined in Part 4 of Schedule 5
of the Income Tax Act may be granted EMIs, and all such options shall be issued pursuant to and
governed by the Company’s Enterprise Management Incentive Subplan 2005, attached hereto as Appendix
1 (the “EMI Subplan”).

     4. Stock. The stock subject to Stock Rights shall be authorized but unissued shares
of Common Stock of the Company, $.001 par value (the “Common Stock”), or shares of Common
Stock reacquired by the Company in any manner. The aggregate number of shares which may be issued
pursuant to the Plan, including any shares which may be issued pursuant to the EMI Subplan, is
2,340,655 , subject to adjustment as provided in Paragraph 13, provided, however, that of such
2,340,655 shares, 216,076 shares are reserved and the Company may only issue a Stock Right or EMI
for such reserved shares upon the cancellation of Stock Rights for a corresponding number of shares
under the Company’s 2001 Stock Plan. Any such shares may be issued pursuant to the exercise of
ISOs, Non Qualified Options or EMIs, or pursuant to Restricted Stock Purchases or Awards, so long
as the aggregate number of shares so issued does not exceed such number, as adjusted.

     5. Granting of Stock Rights. Stock Rights may be granted under the Plan at any time
after September 06, 2005 and prior to September 06, 2015. The date of grant of a Stock Right under
the Plan will be the date specified by the Committee at the time it grants the Stock Right or such
date that is specified in the instrument or agreement evidencing such Stock Right; provided,
however, that such date shall not be prior to the date on which the Committee acts to approve the
grant and that with respect to an ISO grant such date shall not be earlier than the date of
commencement of employment of the employee granted the ISO. The Committee shall have the right,
with the consent of the optionee, to convert an ISO granted under the Plan to a Non-Qualified
Option pursuant to Paragraph 17.

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     6. Minimum Option Price; ISO Limitations.

     A. Price for Options. The exercise price per share specified in the agreement
relating to each Option granted under the Plan shall not be less than the fair market value per
share of Common Stock on the date of such grant. In the case of an ISO to be granted to an
employee owning stock possessing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any Related Corporation, the price per share specified in
the agreement relating to such ISO shall not be less than one hundred ten percent (110%) of the
fair market value per share of Common Stock on the date of grant.

     B. $100,000 Annual Limitation on ISOs. Each eligible employee may be granted ISOs
only to the extent that, in the aggregate under this Plan and all other incentive stock option
plans of the Company and any Related Corporation, such ISOs do not become exercisable for the first
time by such employee during any calendar year in a manner which would entitle the employee to
purchase more than $100,000 in fair market value (determined at the time the ISOs were granted) of
Common Stock in that year. Any Options granted to an employee in excess of such amount will be
granted as Non-Qualified Options.

     C. Determination of Fair Market Value. If, at the time an Option is granted under the
Plan, the Company’s Common Stock is publicly traded, “fair market value” shall be determined as of
the last business day for which the prices or quotes discussed in this sentence are available prior
to the date such Option is granted and shall mean (i) the average (on that date) of the high and
low prices of the Common Stock on the principal national securities exchange on which the Common
Stock is traded, if the Common Stock is then traded on a national securities exchange; or (ii) the
last reported sale price (on that date) of the Common Stock on the NASDAQ National Market List, if
the Common Stock is not then traded on a national securities exchange; or (iii) the closing bid
price (or average of bid prices) last quoted (on that date) by an established quotation service for
over-the-counter securities, if the Common Stock is not then traded on a national securities
exchange and is not reported on the NASDAQ National Market List. However, if the Common Stock is
not publicly traded at the time an Option is granted under the Plan, “fair market value” shall be
deemed to be the fair value of the Common Stock as determined by the Committee or the Board after
taking into consideration all factors in good faith it deems appropriate, including, without
limitation, recent sale and offer prices of the Common Stock or other equity securities of the
Company in private transactions negotiated at arm’s length, if any.

     7. Option Duration. Subject to earlier termination as provided in Paragraphs 9, 10,
and 13B, each Option shall expire on the date specified by the Committee and set forth in the
original stock option agreement granting such Option, but not more than ten years from the date of
grant. Notwithstanding the foregoing, in the case of ISOs granted to an employee owning stock
possessing more than ten percent (10%) of the total combined voting power of all classes of stock
of the Company or any Related Corporation, such ISOs shall expire not more than five years from the
date of grant. Non-Qualified Options shall expire on the date specified in the agreement granting
such Non-Qualified Options, subject to extension as determined by the Committee. ISOs, or any part
thereof, that have been converted into Non-Qualified Options may be extended as provided in
Paragraph 17.

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     8. Exercise of Option. Subject to the provisions of Paragraphs 9 through 13, each
Option granted under the Plan shall be exercisable as follows:

     A. Vesting. Unless otherwise specified by the Committee and subject to Paragraphs 9
and 10 with respect to ISOs, Options granted to employees shall vest in accordance with the
following schedule: (a) as to one-quarter (1/4) of the shares subject to the Option, on the first
annual anniversary of the date of grant and (b) as to the remaining three-quarters (3/4) of the
shares subject to the Option, in 36 equal monthly installments beginning on the first day of the
first month following such anniversary. The Committee may also specify such other conditions
precedent as it deems appropriate to the exercise of an Option.

     B. Full Vesting of Installments. Once an installment becomes exercisable it shall
remain exercisable until expiration or termination of the Option, unless otherwise specified by the
Committee.

     C. Partial Exercise. Each Option or installment may be exercised at any time or from
time to time, in whole or in part, for up to the total number of shares with respect to which it is
then exercisable, provided that the Committee may specify a certain minimum number or percentage of
the shares issuable upon exercise of any Option that must be purchased upon any exercise.

     D. Acceleration of Vesting. The Committee shall have the right to accelerate the date
of exercise of any installment of any Option, despite the fact that such acceleration may (i) cause
the application of Sections 280G and 4999 of the Code if an Acquisition, as defined below in
Paragraph 13B, occurs, or (ii) disqualify all or part of the Option as an ISO.

     9. Termination of Employment. Subject to the provisions of Paragraph 13B, if an ISO
optionee ceases to be employed by the Company and all Related Corporations other than by reason of
death or disability as defined in Paragraph 10, no further installments of his ISOs shall become
exercisable following the date of such cessation of employment, and his ISOs shall terminate after
the passage of thirty (30) days from the date of termination of his employment, but in no event
later than on their specified expiration dates, except to the extent that such ISOs (or unexercised
installments thereof) have been converted into Non-Qualified Options pursuant to Paragraph 17.
Nothing in the Plan shall be deemed to give any grantee of any Stock Right the right to be retained
in employment or other service by the Company or any Related Corporation for any period of time.

     Notwithstanding anything contained in this Paragraph 9 to the contrary, the Board or Committee
may establish rules in particular stock option agreements with respect to Misconduct, as defined
below, committed by a grantee of a Stock Right.

     “Misconduct” shall mean any one or more of the following: (i) the commission of an
act of embezzlement, fraud or dishonesty; (ii) the deliberate disregard of the rules or policies of
the Company or any Related Corporation which results in material loss, damage or injury to the
Company or any Related Corporation, whether directly or indirectly; (iii) the unauthorized
disclosure of any trade secret or confidential information of the Company or any Related
Corporation; (iv) the breach by the optionee of any agreement with the Company or any Related
Corporation, including without limitation any noncompetition agreement between the optionee

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and the Company or any Related Corporation; or (v) the willful failure by the optionee to
perform his or her material responsibilities to the Company or any Related Corporation.

     10. Death; Disability.

     A. Death. If an ISO optionee ceases to be employed by the Company and all Related
Corporations by reason of his death, or if the employee dies within the thirty (30) day period
after the employee ceases to be employed by the Company and all Related Corporations, any ISO of
his may be exercised, to the extent of the number of shares with respect to which he could have
exercised it on the date of his death, by his estate, personal representative or beneficiary who
has acquired the ISO by will or by the laws of descent and distribution, at any time prior to the
earlier of the specified expiration date of the ISO or one (1) year from the date of such
optionee’s death.

     B. Disability. If an ISO optionee ceases to be employed by the Company and all
Related Corporations by reason of his disability, he shall have the right to exercise any ISO held
by him on the date of termination of employment, to the extent of the number of shares with respect
to which he could have exercised it on that date, at any time prior to the earlier of the specified
expiration date of the ISO or one (1) year from the date of the termination of the optionee’s
employment. For the purposes of the Plan, the term “disability” shall mean “permanent and total
disability” as defined in Section 22(e)(3) of the Code or successor statute.

     11. Assignability. Except for Non-Qualified Options which may be transferred for
estate planning purposes to the extent provided in the instrument or agreement granting such
Non-Qualified Options, no Stock Right shall be assignable or transferable by the grantee except by
will or by the laws of descent and distribution, and during the lifetime of the grantee each Stock
Right shall be exercisable only by him. No Stock Right, and no right to exercise any portion
thereof, shall be subject to execution, attachment, or similar process, assignment, or any other
alienation or hypothecation. Upon any attempt so to transfer, assign, pledge, hypothecate, or
otherwise dispose of any Stock Right, or of any right or privilege conferred thereby, contrary to
the provisions thereof or hereof or upon the levy of any attachment or similar process upon any
Stock Right, right or privilege, such Stock Right and such rights and privileges shall immediately
become null and void. The foregoing shall not be construed to restrict the ability to assign or
transfer shares of Common Stock issued upon the exercise or award of a Stock Right to the extent
that the instrument or agreement granting such Stock Right permits such assignment or transfer.

     12. Terms and Conditions of Stock Rights. Stock Rights shall be evidenced by
instruments (which need not be identical) in such forms as the Committee may from time to time
approve. Such instruments shall conform to the terms and conditions set forth in this Plan to the
extent applicable and may contain such other provisions as the Committee deems advisable which are
not inconsistent with the Plan. Without limiting the foregoing, such provisions may include
transfer restrictions, rights of refusal, vesting provisions, repurchase rights, lock-up
provisions, drag-along rights and such other restrictions with respect to shares of Common Stock
issuable upon exercise of Stock Rights as the Committee may deem appropriate. In granting any
Non-Qualified Option, the Committee may specify that such Non-Qualified Option shall be subject to
the restrictions set forth herein with respect to ISOs, or to such other termination, cancellation
or other provisions as the Committee may determine. The Committee may from

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time to time confer authority and responsibility on one or more of its own members and/or one
or more officers of the Company to execute and deliver such instruments. The proper officers of
the Company are authorized and directed to take any and all action necessary or advisable from time
to time to carry out the terms of such instruments.

     13. Adjustments. Upon the occurrence of any of the following events, an optionee’s
rights with respect to Options granted to him hereunder shall be adjusted as hereinafter provided,
unless otherwise specifically provided in the written agreement between the optionee and the
Company relating to such Option:

     A. Stock Dividends and Stock Splits. If the shares of Common Stock shall be
subdivided or combined into a greater or smaller number of shares or if the Company shall issue any
shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of
Common Stock deliverable upon the exercise of Options shall be appropriately increased or decreased
proportionately, and appropriate adjustments shall be made in the purchase price per share to
reflect such subdivision, combination or stock dividend.

     B. Consolidations, Mergers or Sales of Assets or Stock. If the Company is to be
consolidated with or acquired by another person or entity in a merger or similar event, or if all
or substantially all of the Company’s assets or stock are sold or leased to a third party (an
“Acquisition”), the Committee or the board of directors of any entity surviving the
Acquisition or purchasing the Company’s assets or stock in such Acquisition (the “Successor
Board”) shall, with respect to outstanding Options or shares acquired upon exercise of any
Option, take one or more of the following actions: (i) make appropriate provision for the
continuation of such options by substituting on an equitable basis (as reasonably determined by the
Committee or Successor Board) for each share then subject to such Options the consideration payable
to the holders of Common Stock in connection with the Acquisition for each share of Common Stock
outstanding prior to such Acquisition; (ii) accelerate the date of exercise of such Options or of
any installment of any such Options; (iii) upon written notice to the optionees, provide that all
Options must be exercised, to the extent then exercisable, within a specified number of days of the
date of such notice, at the end of which period the Options shall terminate; (iv) terminate all
vested Options in exchange for a cash payment equal to the excess of the fair market value (as
reasonably determined by the Committee or Successor Board) of the shares subject to such Options
(to the extent then exercisable) over the exercise price thereof; or (v) in the event of a stock
sale, require that the optionee sell to the purchaser to whom such stock sale is to be made, all
shares previously issued to such optionee upon exercise of any Option, at a price equal to the
portion of the net consideration from such sale which is attributable to such shares (as reasonably
determined by the Committee or the Successor Board).

     If, in connection with an acceleration of Options upon an Acquisition, a tax under
Section 4999 of the Code would be imposed on the grantee of any Stock Right (after taking into
account the exceptions set forth in Sections 280G(b)(4) and 280G(b)(5) of the Code), and the
grantee, on an after-tax basis (taking into account such tax) would receive greater net
compensation by not having any or all of such Stock Rights accelerate, then at the discretion of
the Committee, the number of Stock Rights of any such grantee which otherwise would become
immediately exercisable, realizable or vested as permitted in this Section 13 (or such provision of
any other agreement or instrument governing such Stock Right that provides for such an acceleration
in connection with an Acquisition) may be reduced (or delayed), to the extent

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necessary to maximize such net compensation. For purposes of determining “net compensation”
under this paragraph, the amount of compensation considered to be realized by the grantee of any
Stock Right as a result of the acceleration of the vesting of such Stock Right shall be determined
in accordance with the principles set forth in the Treasury Regulations under Section 280G of the
Code for determining the amount of any “parachute payment” resulting from the acceleration of
vesting of restricted stock, a stock option or any other unvested stock right.

     C. Recapitalization or Reorganization. If a recapitalization or reorganization of the
Company (other than a transaction described in Subparagraph B above) occurs, pursuant to which
securities of the Company or of another entity are issued with respect to the outstanding shares of
Common Stock, an optionee, upon exercising an Option, shall be entitled to receive for the purchase
price paid upon such exercise the securities he would have received if he had exercised his Option
prior to such recapitalization or reorganization and had been the owner of the Common Stock
receivable upon such exercise at such time.

     D. Modification of ISOs. Notwithstanding the foregoing, any adjustments made pursuant
to the foregoing Subparagraphs A, B or C with respect to ISOs shall be made only after the
Committee, after consulting with counsel for the Company, determines whether such adjustments would
constitute a “modification” of such ISOs (as that term is defined in Section 424 of the Code or any
successor thereto) or would cause any adverse tax consequences for the holders of such ISOs. If
the Committee determines that such adjustments made with respect to ISOs would constitute a
modification of such ISOs, it may refrain from making such adjustments.

     E. Issuances of Securities and Non-Stock Dividends. Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares subject to Options. No adjustments shall be made for
dividends paid in cash or in property other than securities of the Company (and, in the case of
securities of the Company, such adjustments shall be made pursuant to the foregoing Subparagraph
A).

     F. Fractional Shares. No fractional shares shall be issued under the Plan, and the
optionee shall receive from the Company cash in lieu of such fractional shares.

     G. Adjustments. Upon the happening of any of the foregoing events described in
Subparagraphs A, B or C above, the class and aggregate number of shares set forth in Paragraph 4
hereof that are subject to Stock Rights which previously have been or subsequently may be granted
under the Plan shall also be appropriately adjusted to reflect the events described in such
Subparagraphs. The Committee or the Successor Board, as applicable, shall determine the specific
adjustments to be made under this Paragraph 13 and its determination shall be conclusive.

     If any person or entity owning Common Stock obtained by exercise of a Stock Right made
hereunder receives shares or securities or cash in connection with a corporate transaction
described in Subparagraphs A, B or C above as a result of owning such Common Stock, except as
otherwise provided in Subparagraph B, such shares or securities or cash shall be subject to all of
the conditions and restrictions applicable to the Common Stock with respect to which such

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shares or securities or cash were issued, unless otherwise determined by the Committee or the
Successor Board.

     14. Means of Exercising Options. An Option (or any part or installment thereof) shall
be exercised by giving written notice to the Company at its principal office address. Such notice
shall identify the Option being exercised and specify the number of shares as to which such Option
is being exercised, accompanied by full payment of the purchase price therefor either (a) in United
States dollars in cash or by check, or (b) at the discretion of the Committee, by delivery of an
irrevocable and unconditional undertaking, satisfactory in form and substance to the Company, by a
creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price,
or delivery to the Company of a copy of irrevocable and unconditional instructions, satisfactory in
form and substance to the Company, to a creditworthy broker to deliver promptly to the Company cash
or a check sufficient to pay the exercise price, or (c) at the discretion of the Committee, by any
combination of (a) and (b) above. The holder of an Option shall not have the rights of a
shareholder with respect to the shares covered by his Option until the date of issuance of a stock
certificate to him for the shares subject to the Option. Except as expressly provided above in
Paragraph 13 with respect to changes in capitalization and stock dividends, no adjustment shall be
made for dividends or similar rights for which the record date is before the date such stock
certificate is issued.

     15. Term and Amendment of Plan. The Plan shall expire on September 06, 2015 (except
as to Options outstanding on that date). Subject to the provisions of Paragraph 5 above, Options
may be granted under the Plan prior to the date of stockholder approval of the Plan. The Board may
terminate or amend the Plan in any respect at any time, except that:

     (a) the total number of shares that may be issued under the Plan may not be increased (except
by adjustment pursuant to Paragraph 13);

     (b) the provisions of Paragraph 3 regarding eligibility for grants of ISOs may not be
modified;

     (c) the provisions of Paragraph 6(B) regarding the exercise price at which shares may be
offered pursuant to ISOs may not be modified (except by adjustment pursuant to Paragraph 13); and

     (d) the expiration date of the Plan may not be extended,

     without the approval of the stockholders obtained within 12 months before or after the Board
adopts a resolution authorizing any of the foregoing actions.

     16. Section 162(m)

     Notwithstanding anything herein to the contrary, no Stock Right shall become exercisable,
vested or realizable if such Stock Right is granted to an employee that is a “covered employee” as
defined in Section 162(m) of the Code and the Committee has determined that such Stock Right should
be structured so that it is not “applicable employee remuneration” under such Section 162(m) unless
and until the terms of this Plan, including any amendment hereto, have been approved by the
Company’s stockholders in the manner and to the extent required under such Section 162(m).

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     17. Amendment of Stock Rights. The Board or Committee may amend, modify or terminate
any outstanding Stock Rights including, but not limited to, substituting therefor another Stock
Right of the same or a different type, changing the date of exercise or realization, and converting
an ISO to a Non-Qualified Option, provided, that, except as otherwise provided in Paragraphs 8, 9,
10 or 13, the grantee’s consent to such action shall be required unless the Board or Committee
determines that the action, taking into account any related action, would not materially and
adversely affect the grantee.

     18. Application of Funds. The proceeds received by the Company from the sale of
shares pursuant to Options granted and Restricted Stock Purchases authorized under the Plan shall
be used for general corporate purposes.

     19. Governmental Regulation. The Company’s obligation to sell and deliver shares of
the Common Stock under this Plan is subject to the approval of any governmental authority required
in connection with the authorization, issuance or sale of such shares.

     20. Withholding of Additional Income Taxes. Upon the exercise of a Non-Qualified
Option, the making of a Restricted Purchase of Common Stock for less than its fair market value,
the granting of an Award, the making of a Disqualifying Disposition (as defined in Paragraph 21) or
the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder, the
Company, in accordance with Section 3402(a) of the Code, may require the optionee or purchaser to
pay additional withholding taxes in respect of the amount that is considered compensation
includible in such person’s gross income. The Committee in its discretion may condition (i) the
exercise of an Option, (ii) the making of a Restricted Stock Purchase of Common Stock for less than
its fair market value, (iii) the granting of an award, or (iv) the vesting of restricted Common
Stock acquired by exercising a Stock Right, on the grantee’s payment of such additional withholding
taxes.

     21. Notice to Company of Disqualifying Disposition. Each employee who receives an ISO
must agree to notify the Company in writing immediately after the employee makes a Disqualifying
Disposition of any Common Stock acquired pursuant to the exercise of an ISO. A “Disqualifying
Disposition” is any disposition (including any sale) of such Common Stock before the later of
(a) two years after the date the employee was granted the ISO, or (b) one year after the date the
employee acquired Common Stock by exercising the ISO. If the employee has died before such stock
is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur
thereafter.

     22. Governing Law; Construction. The validity and construction of the Plan and the
instruments evidencing Options shall be governed by the laws of the state of Delaware. In
construing this Plan, the singular shall include the plural and the masculine gender shall include
the feminine and neuter, unless the context otherwise requires.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-10-

 

APPENDIX I

GOMEZ, INC.

ENTERPRISE MANAGEMENT INCENTIVE SUBPLAN 2005

 

 

GOMEZ, INC.

ENTERPRISE MANAGEMENT INCENTIVE

(“EMI”)

PLAN 2005

RULES OF THE PLAN

Ernst & Young LLP, 1 More London Place, London, SE1 2AF

 

 

RULES OF THE GOMEZ, INC.

ENTERPRISE MANAGEMENT INCENTIVE (“EMI”) PLAN 2005

CONTENTS

Rule

	 	 	 
	1.

	 	Definitions and Interpretation
	 
	 	 
	2.

	 	Grant of Options
	 
	 	 
	3.

	 	Vesting of Options
	 
	 	 
	4.

	 	Individual Limits
	 
	 	 
	5.

	 	Plan Limits
	 
	 	 
	6.

	 	Rights of Exercise and Lapse of Options
	 
	 	 
	7.

	 	Method of Exercise of Vested Options
	 
	 	 
	8.

	 	Change in Control of the Company
	 
	 	 
	9.

	 	Dissolution or Liquidation of the Company
	 
	 	 
	10.

	 	Variation of Share Capital, Adjustments, Drag Along, Repurchase Rights, Right of First Refusal
	 
	 	 
	11.

	 	Administration
	 
	 	 
	12.

	 	Amendments
	 
	 	 
	13.

	 	General

2

 

RULES OF THE GOMEZ, INC.

ENTERPRISE MANAGEMENT INCENTIVE (“EMI”) PLAN 2005

1. Definitions and Interpretation

In this Plan, the following words and expressions shall, where the context so permits, have
the following meanings:

	 	 	 
	“the Act”

	 	The Income Tax (Earnings and Pensions) Act 2003;
	 
	 	 
	“Board of Directors”

	 	the Board of Directors for the time being of the
Company or, if applicable, a duly authorised
Committee thereof;
	 
	 	 
	“Committed Time”

	 	the meaning given in Paragraph 26 of Schedule 5;
	 
	 	 
	“the Company”

	 	Gomez, Inc. a Delaware Corporation;
	 
	 	 
	“Connected Person”

	 	the meaning given by Section 839 of the Taxes Act;
	 
	 	 
	“Control” and
cognate expressions

	 	the meaning given by Section 840 of the Taxes Act;
	 
	 	 
	“Date of Grant”

	 	the date on which an Option is granted as
evidenced by the Option Agreement;
	 
	 	 
	“Disqualifying Event”

	 	an event specified in Sections 534 to 539
inclusive of the Act which causes an EMI Option
to cease to satisfy the requirements of Schedule
5;
	 
	 	 
	“Eligible Individual”

	 	an individual:

	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	who is a bona fide employee of the Company or
a Qualifying Subsidiary;
	 
	 	 	 	 	 	 
	 

	 	 	2.	 	 	whose Committed Time is at least 25 hours per
week, or, if less, 75% of his Working Time; and
	 
	 	 	 	 	 	 
	 

	 	 	3.	 	 	who is not precluded from such participation
by paragraphs 28 to 33 inclusive of Schedule 5
(no material interest)

	 	 	 
	“EMI Option”

	 	an Option which is a qualifying option within the
meaning given in Paragraph 1 of Schedule 5;

 

 

	 	 	 
	“Employee”

	 	an individual who is a bona fide employee of the
Company or a Group Company
	 
	 	 
	“Employer Company”

	 	the Group Company by reference to which the
Committed Time requirement is met by the Eligible
Individual;
	 
	 	 
	“Exercise Price”

	 	the price determined by the Board of Directors at
which each Share subject to an EMI Option may be
acquired (subject to Rule 11 — variation of share
capital) and either:

	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	specified at the Date of Grant; or
	 
	 	 	 	 	 	 
	 

	 	 	2.	 	 	to be determined at a later date by reference
to a formula specified at the Date of Grant,

	 	 	 
	 

	 	provided that it shall not be less than the par
value of a Share;
	 
	 	 
	“Group Company”

	 	the Company or any Subsidiary of the Company;
	 
	 	 
	“Market Value”

	 	on any day the market value of a Share determined
in accordance with paragraphs 5, 55 and 56 of
Schedule 5:
	 
	 	 
	“Option”

	 	a right to acquire Shares pursuant to this Plan
and such term includes EMI Options and Unapproved
Options except where the context otherwise
admits;
	 
	 	 
	“Optionholder”

	 	an individual to whom an Option has been granted
which has neither lapsed nor been surrendered or
exercised;
	 
	 	 
	“the Option Agreement”

	 	the agreement in writing granting an Option
pursuant to this Plan entered into by an Employee
and the Company in such form as the Board of
Directors shall from time to time determine (and
which in the case of an EMI Option complies with
Paragraph 37 of Schedule 5);
	 
	 	 
	“Personal
Representatives”

	 	in relation to the Optionholder the legal
personal representatives of the Optionholder
(being either the executives of the
Optionholder’s will to whom a valid grant of
probate has been made or if the Optionholder dies
interstate the duly appointed administrator(s) of
the Optionholder’s estate) who have provided to
the Board of Directors satisfactory evidence of
their appointment as such;

 

 

	 	 	 
	“this Plan”

	 	The Gomez, Inc. Enterprise Management Incentive
Plan 2005, as amended from time to time;
	 
	 	 
	“Qualifying Exchange
of Shares”

	 	the meaning given in Paragraph 40 of Schedule 5;
	 
	 	 
	“Qualifying Subsidiary”

	 	the meaning given in Paragraph 11 of Schedule 5;
	 
	 	 
	“Rules”

	 	the rules of this Plan as amended from time to
time;
	 
	 	 
	“Schedule 5”

	 	Schedule 5 to the Act;
	 
	 	 
	“Shares”

	 	shares of the Company’s common stock, $0.0001 par
value per share which are non-redeemable, fully
paid ordinary shares within the meaning of
Paragraph 35 of Schedule 5 and the expression
“Share” shall be construed accordingly. The
Shares issued under the Plan may be authorised
and unissued shares or shares held by the Company
in its treasury, or both;
	 
	 	 
	“Subsidiary”

	 	any company which the Company Controls (on its
own or together with any Connected Person);
	 
	 	 
	“Taxes Act”

	 	the Income and Corporation Taxes Act 1988;
	 
	 	 
	“Unapproved Option”

	 	an Option which at the Date of Grant is not an
EMI Option;
	 
	 	 
	“Vest”

	 	in relation to an Option, and subject to the
satisfaction (or waiver) of any conditions
imposed pursuant to Rule 3.5, the crystallisation
of the Optionholder’s right to exercise such
Option (or part thereof) (and “Vests”, “Vesting”
and “Vested” shall be construed accordingly);
	 
	 	 
	“Vested Option”

	 	an Option (or part thereof) which has Vested;
	 
	 	 
	“Vesting Schedule”

	 	the Vesting Schedule attached to the Option
Agreement; and
	 
	 	 
	“Working Time”

	 	the meaning given in Paragraph 27 of Schedule 5.

The Interpretation Act 1978 shall apply hereto as it does to an Act of Parliament. Any
references to any statutory provision are to that provision as amended or re-enacted from

 

 

 time to time. Unless the context otherwise requires, words in the singular shall include
the plural and vice versa, and words importing the masculine gender shall include the
feminine and vice versa and the headings set out below are for guidance only and shall not
be used as an aid to the construction of these provisions.

2. Grant of Options

	 	2.1	 	Subject to Rules 2.2 to 2.3, 2.7 to 2.8, the Company may at any time or times
grant an Option to an Employee.
	 
	 	2.2	 	The Company may grant an EMI Option for commercial reasons in order recruit or
retain an Employee only if he is also an Eligible Individual.
	 
	 	2.3	 	Where the Company grants an Option to an Employee who is not an Eligible
Individual, that Option shall be an Unapproved Option.
	 
	 	2.4	 	The right to exercise an Option may be subject to conditions imposed by the
Company in accordance with Rule 3.
	 
	 	2.5	 	As soon as practicable after the Company decides to grant an Option to an
Employee the Company and the Employee shall enter into an enforceable Option Agreement
which shall state:

	 	(a)	 	the Date of Grant of the Option;
	 
	 	(b)	 	that the Option is an EMI Option or an Unapproved Option (as the
case may be);
	 
	 	(c)	 	(in respect of an EMI Option) that the Option is granted under
the provisions of Schedule 5;
	 
	 	(d)	 	the number, or maximum number, of Shares that may be acquired;
	 
	 	(e)	 	the Exercise Price payable for each Share subject to the Option
or the method by which that price is to be determined;

 

 

	 	(f)	 	any conditions imposed by the Board of Directors pursuant to Rule
3.5;
	 
	 	(g)	 	when and how the Option may be exercised

	 	and in the case of an EMI Option such Option Agreement shall include any other details
required pursuant to Paragraph 37 of Schedule 5.
	 
	 	2.6	 	Subject to the right of a deceased Optionholder’s Personal Representatives to
exercise an Option in accordance with Rule 6.4, every Option shall be personal to the
Employee to whom it is granted and shall not be capable of being transferred, assigned
or charged or otherwise alienated.
	 
	 	2.7	 	The Company may grant an EMI Option to an Eligible Individual only if all of
the following conditions are satisfied immediately prior to the grant of the proposed
EMI Option:

	 	(a)	 	the Board of Directors have satisfied themselves that it is
being granted for commercial reasons in order to recruit or retain the Eligible
Individual and not as part of a scheme or arrangement the main purpose, or one
of the main purposes, of which is the avoidance of tax;
	 
	 	(b)	 	the Company meets the independence requirements of Paragraph 9
of Schedule 5;
	 
	 	(c)	 	the Company meets the trading activities requirements of
paragraph 13 of Schedule 5 (where it has no Subsidiaries) or Paragraph 14 of
Schedule 5 (where it has one or more Subsidiaries);
	 
	 	(d)	 	the gross assets of the Company do not exceed £30 million (or
such other amount as may at that time be specified in Paragraph 12 of Schedule
5). For these purposes “gross assets” means:

	 	(i)	 	the sum of all the fixed and current assets of
the Company; or

 

 

	 	(ii)	 	if the Company is a member of a group of
companies, the sum of the fixed and current assets of all the Group
Companies excluding any member’s rights against, or shares in or
securities of, another Group Company).

	 	 	 	determined in accordance with Inland Revenue Statement of Practice 2/00 or
its successors; and

	 	(e)	 	the qualifying subsidiaries requirement of Paragraph 10 of
Schedule 5 is satisfied by the Company.

	 	2.8	 	An Option shall not be granted unless the Company is satisfied at the relevant
time (if then applicable) that such grant would not be in breach of any applicable
laws, codes or regulations relating to the acquisition of securities by Employees
including the internal code of the Company.

3. Vesting of Options

	 	3.1	 	When granting an Option, the Company may, if in its discretion it thinks fit,
determine any dates or dates prior to the day before the tenth anniversary of its Date
of Grant on which the Option will Vest in whole or in part, and where on any date only
part Vests, the number of Shares in respect of which it so Vests. Such date or dates
being set out in a Vesting Schedule attached to the relevant Option Agreement.
	 
	 	3.2	 	Subject to Rule 3.3, 6.4, 6.6 and 8, no Option shall Vest or Vest further (as
the case may be) following the date on which the Optionholder ceases to hold any office
or employment with a Group Company.
	 
	 	3.3	 	The Board of Directors may, if in its discretion it thinks fit, have the right
to accelerate the Vesting of an Option under the Plan.

 

 

	 	3.4	 	Where in relation to any Option no Vesting Schedule has been imposed pursuant
to Rule 3.1, that Option shall Vest in full at the Date of Grant.
	 
	 	3.5	 	In addition, the right to exercise an Option may be conditional upon the
satisfaction of an objective performance condition imposed by the Company at the Date
of Grant as set out in the Option Agreement, provided that such performance condition
is capable of being satisfied within ten years of the Date of Grant. At the
discretion of the Board of Directors, any such condition shall cease to apply in any of
the circumstances set out in Rule 6.4 (Death), Rule 6.6 (injury, ill health or
disability) and Rule 8 (Change in Control).
	 
	 	3.6	 	If, after the Company has imposed any performance condition to be satisfied
pursuant to Rule 3.5, events occur which cause the Board of Directors to consider that
such condition has become unreasonable, unfair or impractical, the Company may, in its
discretion (provided such discretion is exercised fairly and reasonably) amend, relax
or waive such conditions provided that any condition which is amended or relaxed will
be no more and no less difficult to satisfy than when it was originally imposed or last
amended or relaxed.
	 
	 	3.7	 	The Company shall notify all relevant Optionholders in writing of any
amendment, relaxation or waiver of any conditions made pursuant to Rule 3.6.

4. Individual limits

	 	4.1	 	Any EMI Option granted to an Eligible Individual shall be limited and take
effect so that immediately following such grant, the aggregate Market Value of Shares
subject to all unexercised Relevant Options (as defined in Rule 4.4(a)) held by the
Eligible Individual shall not exceed £100,000 (or such other amount as may from time to
time be specified in paragraph 5 of Schedule 5).

 

 

	 	4.2	 	Rule 4.3 shall apply where an Eligible Individual has been granted Relevant
Options over Shares having a total Market Value of £100,000 (or such other amount as
may from time to time be specified in paragraph 6 of Schedule 5), irrespective of
whether any of those Relevant Options have been exercised or released.
	 
	 	4.3	 	Where this Rule applies, no EMI Option may be granted to the Eligible
Individual in question during the period of three years immediately following the grant
of the last Relevant Option.
	 
	 	4.4	 	For the purposes of this Rule 4:

	 	(a)	 	the term “Relevant Options” shall include

	 	(i)	 	all EMI Options,
	 
	 	(ii)	 	any other qualifying options within the meaning
given in paragraph 1 of Schedule 5 that were granted to the Eligible
Individual in question by reason of his employment with any Group
Company; and for the purposes of Rule 4.1 only,
	 
	 	(iii)	 	any options granted under a company share
option plan approved by the Inland Revenue under Schedule 4 to the Act
by reason of the Eligible Individual’s employment with any Group
Company; and

	 	(b)	 	the Market Value of the Shares subject to the Relevant Option
shall be their Market Value at the date on which the Relevant Option in
question was granted.

 

 

5. Plan limits

	 	5.1	 	At any time, the aggregate Market Value of Shares subject to (i) all
unexercised EMI Options; and (ii) all other unexercised qualifying options within the
meaning given in paragraph 1 of Schedule 5, shall not exceed £3 million (or such other
amount as may from time to time be specified in paragraph 7 of Schedule 5).
	 
	 	5.2	 	For the purposes of Rule 5.1 above, the Market Value of the Shares subject to
an EMI Option or other qualifying option shall be their Market Value at the date on
which the relevant EMI Option or other qualifying option was granted.

6. Rights of Exercise and Lapse of Options

Time for exercise

	 	6.1	 	An Option may not be exercised before whichever is the later of:

	 	6.1.1	 	the date on which it Vests; and
	 
	 	6.1.2	 	the date on which any condition specified in the Agreement
pursuant to Rule 3.5 (as amended or relaxed or waived pursuant to Rule 3.6) has
been satisfied but in any event may not be exercised later than the day before
the tenth anniversary of the Date of Grant.

	 	6.2	 	Save as provided in Rules 6.4 (Death), 6.5 (Disqualifying Events), 6.6 (injury,
ill health or disability), 6.7.1 (other leavers) and 8 (Change in Control), an Option
may be exercised by an Optionholder only while he is an Employee.

Cessation of employment — position during notice period

	 	6.3	 	Save as provided in Rule 6.4 (Death), if the Optionholder gives or receives
notice terminating his office or employment with a Group Company, then during any
period of notice the Optionholder may not exercise his Option. After the expiry

 

 

	 	 	 	of any such period of notice the provisions of Rules 6.6 (injury, ill health or
disability) and 6.7 (other leavers) shall apply as the case may be.

Death of the Optionholder

	 	6.4	 	Subject to Rule 6.1.2, if an Optionholder ceases to hold any office or
employment with a Group Company by reason of his death, or dies before the expiry of
the periods allowed by Rules 6.6 (injury, ill health or disability) and 6.7.1 (other
leavers) (if any), an Option may be exercised by the Personal Representatives of an
Optionholder:

	 	6.4.1	 	to the extent that the Option has Vested at the date of death;
and
	 
	 	6.4.2	 	in the event that the Vesting of the Option is staggered in
accordance with a Vesting Schedule attached to the Option Agreement, to the
extent of a pro rata portion of any additional part of the Option which would
have Vested had the Option holder not died prior to the end of the Vesting
period which next ends following the date of death. The proration shall be
based upon the number of days of such accrual period prior to the
Optionholder’s death

	 	 	during the period of one year from and including the date of death of the Optionholder and
if not then exercised shall lapse and cease to be exercisable at the end of that period of
one year.

Disqualifying Events

	 	6.5	 	If and to the extent that the Board of Directors so determines, an Option
shall, to the extent not already Vested, immediately Vest in full on the occurrence of
a Disqualifying Event (other than a Disqualifying Event that occurs as a result of (i)
the death of the Optionholder or the Optionholder otherwise ceasing to hold any

 

 

	 	 	 	office or employment with a Group Company; or (ii) any event as set out in Rule 8)
and, subject to Rule 6.1.2, may be exercised within the period of 40 days from and
including the date of the Disqualifying Event.

Cessation of employment — injury, ill heath or disability

	 	6.6	 	Subject to Rule 6.1.2, if an Optionholder ceases to hold any office or
employment with a Group Company on account of injury, ill-health or disability
(evidenced to the satisfaction of the Board of Directors), the Option may be exercised
by the Optionholder:

	 	6.6.1	 	to the extent that the Option has Vested at the date of such
cessation; and
	 
	 	6.6.2	 	in the event that Vesting of the Option is staggered in
accordance with a Vesting Schedule attached to the Option Agreement, to the
extent of a pro rata portion of any additional part of the Option which would
have Vested had the Optionholder not ceased to be employed prior to the end of
the vesting period which next ends following the date of cessation of
employment

	 	 	within the period of 40 days after such event and if not then exercised shall lapse and
cease to be exercisable at the end of that period of 40 days.

Cessation of Employment — Leaving for other reasons

	 	6.7.1	 	Subject to Rule 6.1.2, if the Optionholder ceases to hold any
office or be employed by a Group Company for any reason other than those set
out in Rules 6.4 (Death), 6.6 (injury, ill health or disability) or 6.7.2
(resignation or “cause”) the Optionholder may exercise the Option to the extent
it has Vested at the date of such cessation within 40 days from and including
the

 

 

	 	 	 	date on which the Optionholder ceases to hold office or be employed
by a Group Company.

Cessation of Employment — Leaving by reason of resignation or “cause”

	 	6.7.2	 	If the Optionholder ceases to hold any office or be employed
by a Group Company by reason of being dismissed for “Cause” (as defined below),
the right to exercise any Option (whether or not Vested) shall terminate
immediately and the Optionholder shall have no entitlement under the Plan and
shall hold the Group harmless in respect thereof. “Cause” shall include (and
is not limited to) the commission of an act of embezzlement, fraud or
dishonesty with respect to any Group Company, insubordination, the deliberate
disregard of the rules or policies of any Group Company which results in
material loss, damage or injury to any Group Company, whether directly or
indirectly, substantial malfeasance or non-feasance of duty, unauthorised
disclosure of any trade secret or confidential information, the breach by the
Optionholder of any agreement with any Group Company, including without
limitation any noncompetition agreement, and conduct substantially prejudicial
to the business of any Group Company. The determination of the Board of
Directors as to the existence of “Cause” will be conclusive on the Optionholder
and the Company.

Lapse of the Option

	 	6.8	 	An Option shall lapse (whether or not Vested) on the occurrence of the earliest
of the following:

	 	(a)	 	the day before the tenth anniversary of the Date of Grant;

 

 

	 	(b)	 	the expiry of the period (if any) allowed for the satisfaction
of any condition pursuant to Rule 3.5 and set out in the Option Agreement
without such condition having been satisfied or the date on which it becomes
apparent to the Board of Directors in their absolute discretion that any such
condition has become incapable of being satisfied;
	 
	 	(c)	 	the expiry of the applicable periods specified in Rules 6.4
(Death), 6.6 (injury, ill heath or disability) and 6.7.1 (other leavers)
(except that if an Optionholder dies while time is running under Rule 6.6 or
6.7.1, the Option shall not lapse until the expiry of the period in Rule 6.4);
	 
	 	(d)	 	Unless and to the extent the Board of Directors decide
otherwise the expiry of the period specified in Rule 6.5 (Disqualifying Event);
	 
	 	(e)	 	the expiry of the applicable periods specified in Rules 8
(Change in Control);
	 
	 	(f)	 	the date of the dissolution or liquidation of the Company; and
	 
	 	(g)	 	the date on which the Optionholder is declared bankrupt or
otherwise unable to pay their debts by any competent jurisdiction or does or
omits to do anything as a result of which he is deprived of the legal or
beneficial ownership of the Option.

Miscellaneous Provisions

	 	6.9.1	 	For the purposes of this Rule 6, the Optionholder ceases to
hold office or employment with a Group Company on the date that the
Optionholder no longer holds any office or employment with the Company or any
Subsidiary.

 

 

	 	6.9.2	 	A female Optionholder who is absent from her office or
employment because of her pregnancy and who is entitled by contract or by
virtue of
Chapter I of Part VII of the Employment Rights Act 1996 to return to work,
shall be deemed for the purposes of these Rules not to have ceased to hold
office or be employed by any Group Company until such time as the female
Optionholder is no longer entitled to return to work.
	 
	 	6.9.3	 	An Optionholder who is absent from their office or employment
because of any entitlement either by contract or by virtue of Chapter II of
Part VIII of the Employment Rights Act 1996 to return to work shall be deemed
for the purposes of these Rules not to have ceased to hold office or be
employed by any Group Company until such time as the Optionholder is no longer
entitled to return to work.
	 
	 	6.9.4	 	Notwithstanding anything herein to the contrary, if subsequent
to an Optionholder’s termination of employment or termination of director
status, but prior to the exercise of an Option, the Board of Directors
determines that, either prior to or subsequent to the Optionholder’s
termination, the Optionholder engaged in conduct which would constitute
“cause”, then such Optionholder shall forthwith cease to have any right to
exercise any Option.
	 
	 	6.9.5	 	In their absolute discretion the Board of Directors may extend
any period of 40 days referred to above (but not so as to exceed the day before
the tenth anniversary of Date of Grant).
	 
	 	6.9.6	 	No fractional Shares shall be issued under this Plan. Any
fractional Share with respect of an instalment of an Option that cannot be
exercised

 

 

	 	 	 	because of the limitation contained in the preceding sentence shall
remain subject to such Option and shall be available for later exercise by the
Optionholder in accordance with the terms hereof.

7. Method of Exercise of Vested Options

	 	7.1	 	A Vested Option shall be exercisable in whole or in part and by notice in
writing (in the form prescribed by the Company from time to time) given by the
Optionholder (or his Personal Representatives as the case may be) to the Company.
Unless and to the extent the Board of Directors decide otherwise, the notice of
exercise of the Option shall be accompanied by a remittance in cleared funds for the
aggregate of the Exercise Prices payable.
	 
	 	7.2	 	Subject to Rules 7.3, 7.4, 7.5 and 7.9, the Company shall then reasonably
promptly deliver the Shares in respect of which the Option has been validly exercised
and shall issue a definitive certificate or such other acknowledgement of shareholding
as is from time to time permitted in respect of the Shares, unless the Board of
Directors consider that such allotment would not be lawful in the relevant
jurisdiction. In determining what constitutes “reasonably promptly”, it is expressly
understood that the issuance of the Shares may be delayed by the Company in order to
comply with any law or regulation (including, without limitation state securities or
“Blue Sky” laws) which requires the Company to take any action in respect of the Shares
prior to their issuance.
	 
	 	7.3	 	An Option may be granted subject to the condition that the Optionholder shall
meet the Company’s, or the Employer Company’s (if not the Company), Secondary Class 1
National Insurance Contributions due on the exercise, cancellation or release of the
Option. For this purpose, the Optionholder may be

 

 

	 	 	 	required, if requested by the
Company, or the Employer Company (if not the Company), at any time before the exercise,
cancellation or release of the Option, to enter into an election to transfer liability
for such Secondary Class I National Insurance Contributions in a form approved by the
Inland Revenue and acceptable to the Company and the Employer Company (if not the Company) and to enter
into such arrangements as may be approved by the Inland Revenue in order to secure
that the payment of such liabilities is made on a timely basis.

	 	7.4	 	If any Group Company is liable to account for tax or social security
contributions (in any jurisdiction) for which an Optionholder is liable by virtue of
the exercise of the Option, that or any other Group Company may:

	 	(a)	 	withhold the appropriate amount of tax or social security from
the Optionholder’s remuneration; or
	 
	 	(b)	 	make such other arrangements as it considers necessary
(including the sale of Shares on behalf of the Optionholder) to finance the
amounts in (a) above,

unless the Optionholder discharges the liability himself at the date of exercise of the
Option.

	 	7.5	 	The exercise of an Option shall be conditional on the Optionholder agreeing,
for a period of at least 180 days following the effective date of the Company’s initial
or any other distribution of securities in an underwritten public offering to the
general public pursuant to a registration statement filed with the U.S. Securities and
Exchange Commission (such initial distribution referred to as the “Initial Public
Offering” and any other such distribution referred to as a “Public Offering”), directly
or indirectly, sell, pledge, hypothecate, transfer, offer to sell

 

 

or otherwise dispose of the Company’s securities other than any securities which are included in such
Initial Public Offering or a Public Offering. If the managing underwriter of any
Initial Public Offering or a Public Offering determines that a shorter time period is
appropriate, the aforementioned 180 day period may be shortened consistent with the
requirements of such managing underwriter. If the managing underwriter of any Initial Public Offering or a Public Offering determines
that a longer time period is appropriate and the officers and directors of the
Company are subject to such longer time period, the aforementioned 180 day period
may be lengthened consistent with the requirements of such managing underwriter.

	 	7.6	 	Shares delivered under this Plan shall rank pari passu in all respects with the
Shares of the same class for the time being in issue save as regards any rights
attaching to such Shares by reference to a record date prior to the date of allotment
and in the case of a transfer of existing Shares the transferee shall not acquire any
rights attaching to such Shares by reference to a record date prior to the date of such
transfer.

	 	7.7	 	The exercise of any Option (in whole or in part) shall not be permitted at a
time when (if then applicable) such exercise would be in breach of any applicable laws,
codes or regulations relating to the acquisition of securities, including the internal
code of the Company.

	 	7.8	 	Unless the Board of Directors determines otherwise in writing prior to the date
of exercise of the Option, the exercise of the Option shall be conditional on the
Optionholder and the Employing Company entering into a tax election to fully disapply
the provisions of Chapter 2 of Part 7 ITEPA 2003 of the Act under the

 

 

	 	 	 	terms of Section
431 of the Act in respect of restricted securities in such form as agreed in advance
with the Inland Revenue.

	 	7.9	 	Unless the offering and sale of the shares to be issued upon the particular
exercise of the Option shall have been effectively registered under the U.S.
Securities Act of 1933, as now in force or hereafter amended (the “1933 Act”), the
Company shall be under no obligation to issue the Shares covered by such exercise unless and
until the following conditions have been fulfilled:

	 	7.9.1	 	the Optionholder (or his Personal Representatives if relevant)
who exercises the Option shall warrant to the Company, prior to the receipt of
such Shares, that he is acquiring such Shares for their own respective
accounts, for investment, and not with a view to, or for sale in connection
with, the distribution of any such Shares, in which event the person(s)
acquiring such Shares shall be bound by the provisions of the following legend
which shall be endorsed upon the certificate(s) evidencing their Shares issued
pursuant to such exercise, together with any other appropriate legend as the
Company may designate from time to time:
“The shares represented by this certificate have been taken for investment
and they may not be sold or otherwise transferred by any person, including a
pledgee, unless (1) either (a) a Registration Statement with respect to such
 shares shall be effective under the Securities Act 1933, as amended, or (b)
the Company shall have received an opinion of counsel satisfactory to it
that an exemption from regulations under such Act is then available, and (2)
there should have been compliance with all applicable state securities
laws.”

 

 

	 	7.9.2	 	At the discretion of the Board of Directors, the Company shall
have received an opinion of its counsel that the Shares may be issued upon such
particular exercise in compliance with the 1933 Act without registration
thereunder.

8. Change in Control of the Company

	 	8.1	 	For the purposes of this Rule 8, “Change in Control” means either of the
following transactions:

	 	8.1.1	 	a merger or consolidation of the Company into or with any
other person or persons who are not affiliates of the Company following which
more than 50% of the voting power of the surviving entity is held, directly or
indirectly, by persons who were not stockholders of the Company or affiliates
thereof prior to the consummation of such transaction, or
	 
	 	8.1.2	 	a single transaction or a series of transactions pursuant to
which a person or persons who are not affiliates of the Company prior to such
transaction or transactions acquire either of the following: (i) capital stock
of the Company possessing the voting power to elect a majority of the
Company’s Board of Directors (whether by merger, consolidation or sale or
transfer of the Company’s capital stock), except that any acquisition of
securities directly from the Company shall be disregarded for purposes of this
clause (i); or (ii) all or substantially all of the Company’s assets determined
on a consolidated basis.

	 	8.2	 	In the event a Change in Control Event that is not a Private Transaction (as
defined below) occurs prior to the first anniversary of the date upon which vesting
begins (the “Vesting Commencement Date”) while an Optionholder is employed

 

 

	 	 	 	with the Company or any Group Company, then the number of Shares subject to such Optionholder’s
Option equal to the product of (x) the number of full months that such Optionholder has
been employed by a Group Company divided by forty-eight, and (y) the total number of
Shares subject to such Optionholder’s Option shall, immediately prior to the closing of
the Change in Control Event, become vested. If, pursuant to Rule 10.2 of the Plan, the Company or the Successor Board
makes appropriate provisions for the continuation of outstanding options issued by
the Company, then an Optionholder’s remaining unvested Options will continue to vest
after the closing of the Change in Control Event at the same rate and on the same
vesting dates as set forth above in Appendix 2 of such Optionholder’s Option
Agreement, provided that such Optionholder continuously maintains employment with a
Group Company or a successor through the applicable vesting dates.

	 	8.3	 	In the event (1) a Change in Control Event that is not a Private Transaction
occurs on or after the first anniversary of the Vesting Commencement Date while an
Optionholder is employed with a Group Company and (2) such Optionholder is terminated
on or prior to the six month anniversary date of the consummation of the Change in
Control Event either by (x) such Optionholder for Good Reason (as defined below) or (y)
a Group Company (or the entity surviving the Change in Control Event if, pursuant to
Rule 10.2 of the Plan, the Company or the Successor Board makes appropriate provisions
for the continuation of outstanding options issued by the Company prior to the Change
in Control Event) for reason(s) other than Cause (as defined in Rule 6.7.2) and (3)
such Optionholder has Options to purchase Shares still subject to vesting, then
one-half of the then number of

 

 

	 	 	 	unvested Shares subject to such Option shall, immediately upon such termination, become vested and the Company repurchase provisions
of Rule 10.5 applicable to the Shares issued upon exercise of such accelerated Options
shall lapse.

	 	8.4	 	Definitions
	 
	 	“Private Transaction” means any Change in Control Event where the consideration received or
retained by the holders of the then outstanding capital stock of the Company does not consist of (i) cash or cash equivalent consideration, (ii) securities which are
registered under the 1933 Act and/or (iii) securities for which the Company or any other
issuer thereof has agreed, including pursuant to a demand, to file a registration statement
within ninety (90) days of completion of the transaction for resale to the public pursuant
to the Act.
	 
	 	“Good Reason” means any one or more of the following: (i) any material diminution in the
Optionholder’s functions, duties, or responsibilities as an Employee from and after a Change
in Control Event, (ii) any material reduction in the cash compensation payable to the
Optionholder as an Employee from and after a Change in Control Event, other than as part of
a salary reduction program among multiple employees, or (iii) a change of more than 50 miles
in the Optionholder’s permanent workplace as an Employee without the Optionholder’s consent.

9. Dissolution or Liquidation of the Company

	 	Upon the dissolution or liquidation of the Company, all Options which as of such date have
not been exercised shall lapse and cease to be exercisable.

 

 

10. Variation of Share Capital, Adjustments, Drag Along, Repurchase Rights, Right of
First Refusal

	 	10.1	 	In the event of any capitalisation, rights issue, consolidation,
subdivision, reduction or other variation of the share capital of the Company:

	 	(a)	 	the number of Shares comprised in an Option;
	 
	 	(b)	 	the Exercise Price in respect of such Shares; and
	 
	 	(c)	 	where an Option has been exercised pursuant to the provisions
of these Rules but no Shares have been delivered in satisfaction of such
exercise,the number of Shares to be so allotted or transferred and the Exercise Price
in respect of such Shares,

     may be varied in such manner as the Board of Directors shall determine.

	 	10.2	 	Adjustments. If the Company is to be consolidated with or acquired by another
person or entity in a merger or similar event, or if all or substantially all of the
Company’s assets or stock are sold or leased to a third party (an “Acquisition”), the
Board of Directors or the board of directors of any entity surviving the Acquisition or
purchasing the Company’s assets or stock in such Acquisition (the “Successor Board”)
shall, with respect to outstanding Options or Shares acquired upon exercise of any
Option, take one or more of the following actions: (i) make appropriate provision for
the continuation of such Options by substituting on an equitable basis (as reasonably
determined by the Board of Directors or Successor Board) for each Share then subject to
such Options, the consideration payable to the holders of outstanding Shares in
connection with the Acquisition, for each Share outstanding prior to such Acquisition;
(ii) accelerate the date of exercise of such Options or of any installment of any such
Options; (iii) upon written notice

 

 

	 	 	 	to the Optionholders, provide that all Options must
be exercised, to the extent then exercisable, within a specified number of days of the
date of such notice, at the end of which period the Options shall terminate; (iv)
terminate all vested Options in exchange for a cash payment equal to the excess of the
fair market value (as reasonably determined by the Board of Directors or Successor
Board) of the Shares subject to such Options (to the extent then exercisable) over the
exercise price thereof; or (v) in the event of a stock sale, require that the
Optionholders sell to the purchaser to whom such stock sale is to be made, all Shares
previously issued to such Optionholders upon exercise of any Option, at a price equal to the portion of the net consideration from such sale which is
attributable to such Shares (as reasonably determined by the Board of Directors or
the Successor Board).

	 	10.3	 	The Board of Directors may take such steps as they consider necessary to notify
Optionholders of any adjustment made under Rules 10.1 and 10.2 and to call in, cancel,
endorse, issue or re-issue any Option Agreement consequent upon such adjustment.
	 
	 	10.4	 	Drag along

	 	10.4.1	 	Exercise of Right. If one or more persons who own in the aggregate 51% or
more of the then outstanding Shares (including Shares issuable upon conversion
of outstanding preferred stock) of the Company (the “Majority Holders”) shall
obtain from an offeror (the “Majority Offeror”) a bona fide arms’ length offer
for a Change in Control Event, the Majority Holders shall have the right to
require, by written notice (the “Drag Along Notice”), to any person who holds
Shares pursuant to an Option under this

 

 

	 	 	 	Plan (the “Notice Recipient”) to cause
all of the Shares acquired under such Option to be transferred to the Majority
Offeror, at the same per share purchase price (determined on an as-converted
basis for preferred stock but giving effect, however, to any liquidation
preferences to which holders of such preferred stock may be entitled) and
payable in the same form of consideration as is being paid in respect of the
Shares being sold by the Majority Holders. If the sale to the Majority Offeror
has not occurred within 180 days following the date of the Drag Along Notice,
the Notice Recipient shall be released from the Optionholder’s obligation under
the Drag Along Notice, and it shall be necessary for a new and
separate Drag Along Notice to be furnished and the terms and provisions of
this Rule 10.4 to be separately complied with in order to consummate such a
sale pursuant to this Rule 10.4, unless the failure to complete such sale
resulted from any failure by the Notice Recipient. Each Notice Recipient
shall take or cause to be taken all such actions as may be reasonably
requested in order to consummate a sale pursuant to this Rule 10.4
expeditiously.
	 
	 	10.4.2	 	Voting Proxies. Each Notice Recipient further agrees to vote, or grant
proxies to vote, all of such Notice Recipient’s Shares held by such Notice
Recipient as a result of an Option issued pursuant to this Plan in favour of
any Change in Control Event that is approved by the Majority Holders, provided
that the price per share and form of consideration paid in respect of the
Shares held by such Notice Recipient as a result of an Option issued pursuant
to this Plan is the same as is paid with respect to other holders of

 

 

	 	 	 	Shares
(determined on an as-converted basis for preferred stock but giving effect,
however, to any liquidation preferences to which holders of such preferred
stock may be entitled).
	 
	 	10.4.3	 	Adjustments for Changes in Capital Structure. If there shall be any change
in the Shares through merger, consolidation, reorganisation, recapitalisation,
stock dividend, split-up, combination or exchange of shares, or the like, the
provisions contained in this Rule 10.4 shall apply with equal force to
additional and/or substitute securities, if any, received by an Optionholder in
exchange for, or by virtue of such Optionholder’s ownership of, Shares issued
pursuant to an Option under this Plan.
	 
	 	10.4.4	 	Failure to Deliver Shares. If a Notice Recipient fails or refuses to deliver
on a timely basis duly endorsed certificates representing Shares to be sold
pursuant to this Rule 10.4, the Majority Offeror shall have the right to
deposit the purchase price for such Shares in a special account with any bank
or trust company in the Commonwealth of Massachusetts, United States, giving
notice of such deposit to such Notice Recipient, whereupon such Shares shall be
deemed to have been purchased by the Majority Offeror and such purchase shall
be duly noted upon the books and records of the Company and all of such Notice
Recipient’s rights in and to such Shares shall be terminated. All such monies
shall be held by the bank or trust company for the benefit of such Notice
Recipient. All monies deposited with the bank or trust company but remaining
unclaimed for two (2) years after the date of deposit shall be repaid by the
bank or trust

 

 

company to the Company on demand, and such Notice Recipient shall thereafter
look only to the Company for payment.

	 	10.4.5	 	Expiration of Drag Along Right. The drag along right set forth above shall
remain in effect until the effective date of the Company’s Initial Public
Offering (as defined in Rule 7.5).

	 	10.5	 	Company’s Right of Repurchase

	 	10.5.1	 	Exercise of Right. Upon the termination of an Optionholder’s employment with
a Group Company, at any time during the one hundred eighty (180) day period
after the later of the effective date of such termination and the date that a
Group Company receives notice of such termination (the “Repurchase Period”),
the Company shall have the option, but not the obligation, to repurchase all or
any of the Shares acquired by the Optionholder upon exercise of Options issued
pursuant to this Plan, from such Optionholder, or such Optionholder’s legal
representatives, successors, assigns or transferees, as the case may be (the
“Repurchase Option”). The Repurchase Option shall be exercised by the Company
by giving such Optionholder, or such Optionholder’s legal representative,
written notice of its intention to exercise the Repurchase Option and the
effective date of such repurchase, which shall not be after the expiration of
the Repurchase Period (the “Exercise Notice”). If a determination of an action
which would constitute Cause is made by the Board pursuant to Rule 6.7.2,
regardless of whether such Optionholder was terminated for such Cause, then the
price to be paid for the Shares by the Company under the Repurchase Option
shall be the option price of the

 

 

	 	 	 	Shares paid by such Optionholder. If there is no determination of an action which would
constitute Cause, then such price shall be the greater of (i) the option
price of the Shares paid by such Optionholder and (ii) the Market Value of
the Shares on the date of the Exercise Notice. The applicable price shall
be paid by the Company to such Optionholder, or such Optionholder’s legal
representative, in four (4) equal semiannual instalments with the first such
instalment due six (6) months from the effective date of exercise of the
Repurchase Option. The Company may, in exercising the Repurchase Option,
designate one or more nominees to purchase the Shares either within or
without the Company. No later than the effective date set forth in the
Exercise Notice, such Optionholder, or such Optionholder’s legal
representative, shall deliver to the Company the stock certificate or
certificates representing the Shares being repurchased, duly endorsed and
free and clear of any and all liens, charges and encumbrances.

	 	10.5.2	 	If Shares are not purchased under the Repurchase Option, such Optionholder
and such Optionholder’s successor in interest, if any, will hold any such
Shares issued pursuant to Options under this Plan in such Optionholder’s
possession subject to all of the provisions of this Plan and the applicable
Option Agreement.
	 
	 	10.5.3	 	Failure to Deliver Shares. If such Optionholder fails or refuses to deliver
on a timely basis duly endorsed certificates representing the Shares to be
repurchased by the Company or its nominee(s) pursuant to this Rule 10.5, the
Company or its nominee(s) shall have the right to deposit the purchase

 

 

	 	 	 	price for such Shares in a special account with any bank or trust company in the
Commonwealth of Massachusetts, United States, giving notice of
such deposit to such Optionholder, whereupon such Shares shall be deemed to
have been purchased by the Company or its nominee(s) and such purchase shall
be duly noted upon the books and records of the Company and all of such
Optionholder’s rights in and to such Shares shall be terminated. All such
monies shall be held by the bank or trust company for the benefit of such
Optionholder. All monies deposited with the bank or trust company but
remaining unclaimed for two (2) years after the date of deposit shall be
repaid by the bank or trust company to the Company on demand, and such
Optionholder shall thereafter look only to the Company for payment; provided
further that the Company or its nominee(s) shall have and may exercise any
and all other rights under law with respect to recovery by the Company of
such Shares or any proceeds thereof. The Company shall have the right to
recover all costs and expenses suffered by the Company arising from such
Optionholder’s failure to deliver such Shares under this Rule 10.5,
including reasonable legal counsel fees and costs, and other expenses.

	 	10.6	 	Restriction on Transfer of Shares, Right of First Refusal

	 	10.6.1	 	An Optionholder may not sell, assign, transfer or otherwise dispose of any
Shares issued pursuant to an Option under this Plan at any time prior to the
effective date of an Initial Public Offering, except:

	 	(a)	 	with the prior written consent of and subject
to such conditions as may be imposed by the Board of Directors;

 

 

	 	(b)	 	pursuant to Rule 10.6.2 (Right of First
Refusal);
	 
	 	(c)	 	pursuant to Rules 10.4 (Drag Along) or 10.5
(Right of Repurchase); or
	 
	 	(d)	 	by will or by the laws of descent and
distribution, but only if the transferee of such Shares agrees in
writing to assume the obligations of and be bound by the terms and
conditions of this Plan.

Company Right of First Refusal

	 	10.6.2	 	If an Optionholder proposes to sell, transfer or otherwise dispose of any
Shares issued pursuant to an Option under this Plan, or of any interest in such
Shares, now or hereafter owned by such Optionholder, to any person, whether
voluntarily or by operation of law, other than pursuant to Rules 10.6.1(a), (c)
or (d), such Optionholder shall first provide written notice (the “Offer
Notice”) to the Company, which notice must specify: (A) the name and address of
the party to which such Optionholder proposes to sell, transfer or otherwise
dispose of such Shares or an interest in the Shares (the “Offeror”), (B) the
number of such Shares such Optionholder proposes to sell, transfer or otherwise
dispose of (the “Offered Shares”), (C) the consideration per share which such
Optionholder is seeking for the proposed sale, transfer or disposition, and (D)
all other material terms and conditions of the proposed transaction, all of
which must be bona fide. The Company shall have the option to purchase all or
any part of the Offered Shares for the consideration per share and on the terms
and conditions specified in the Offer Notice (the “Company Option”). If the

 

 

	 	 	 	Company wishes to exercise such option, it must do so by giving written notice
thereof to such Optionholder no later than 20 days after the Offer Notice is
given to the Company (the “Option Period”). The closing of such purchase shall
take place at the offices of the Company on the date
five business days after the expiration of the Option Period.
Notwithstanding the foregoing, if there is any dispute with respect to the
Fair Market Value of non-cash consideration, as defined in Rule 10.6.4, and
the provisions of the following Rule 10.6.4 are invoked, the closing shall
take place, as applicable, five business days after the determination of
Fair Market Value in accordance with Rule 10.6.4.

	 	10.6.3	 	To the extent the Company does not fully exercise the Company Option within
the Option Period, then such Optionholder may consummate the sale of the
Offered Shares not purchased by the Company (such Shares are the “Remaining
Shares”) in accordance with all material terms and conditions of the proposed
transaction set forth in the Offer Notice, at any time on or prior to 60 days
after the expiration of the Option Period. If such Optionholder is unable to
so consummate such sale of the Remaining Shares within such 60 day period, the
Remaining Shares may not be sold by such Optionholder (other than in accordance
with Rules 10.6.1 (a), (c) or (d)) without the giving of a new Offer Notice and
the compliance by such Optionholder with all the conditions and procedures in
the Rules 10.6.2 through 10.6.5 with respect to such proposed sale.

	 	10.6.4	 	To the extent that the consideration per share proposed by the Offeror for
the Offered Shares consists of property other than cash or a promissory

 

 

	 	 	 	note, the consideration required to be paid by the Company in exercising the Company
Option may consist of cash per share equal to the Fair Market Value of such
property. For the purposes of this Section 10.6, the “Fair Market Value” of
such property shall be determined by agreement of the Optionholder and the
Company (the “Transaction Parties”) within 20
days after the termination of the Option Period, or, failing such agreement,
the Fair Market Value shall be determined by appraisal as follows:

	 	(a)	 	if the Transaction Parties agree upon an appraiser within such
20 day period, then such appraiser’s appraisal shall govern; or
	 
	 	(b)	 	failing an agreement pursuant to the foregoing clause (a),
then, within 15 days after the lapse of such 20-day period, each of the
Transaction Parties, by notice to the other, shall appoint one appraiser who
shall be experienced in the appraisal of the type of property to be appraised,
and then the two appraisers shall select a third appraiser whose appraisal
shall govern; or
	 
	 	(c)	 	if either Transaction Party fails to appoint an appraiser as
provided in the foregoing clause (b), then the appraisal by the appraiser
appointed by the Transaction Party which does appoint an appraiser shall
govern.

All appraisal reports shall be rendered in writing and shall be signed by the governing
appraiser, and the Transaction Parties shall use reasonable efforts to cause such appraiser
to render its appraisal report within 20 days after the date of its appointment. The costs
of the appraisal shall be shared equally between the Transaction Parties.

	 	10.6.5	 	Unless otherwise agreed to in writing by the Company, after any sale,
assignment, transfer or disposition of Shares hereunder, such Shares and

 

 

	 	 	 	the transferee thereof shall continue to be subject to the Rules hereof with
respect to such Shares to the same extent as the applicable Optionholder would
have been in the absence of such sale, assignment, transfer or disposition. In
addition, the Company may require, as a condition to effectuating any such
sale, assignment, transfer or disposition of Shares, that such transferee agree in writing, in form acceptable to the Company,
that such Shares shall continue to be subject to the Rules hereof.

11. Administration

	 	11.1	 	The Board of Directors shall have power from time to time to make and vary such
regulations (not being inconsistent with this Plan) for the implementation and
administration of this Plan and/or the Option Agreement as they think fit.
	 
	 	11.2	 	The decision of the Board of Directors shall be final and binding in all
matters relating to this Plan.
	 
	 	11.3	 	The costs of establishing and administering this Plan shall be borne by the
Company.
	 
	 	11.4	 	The Company may, but shall not be obliged to, provide Employees or
Optionholders with copies of any notices, circulars or other documents sent to
shareholders of the Company.
	 
	 	11.5	 	Within 92 days (or such longer period as may from time to time be permitted by
Schedule 5) of granting an EMI Option under this Plan, notice shall be given to the
Inland Revenue by the Employer Company which shall contain:

	 	(a)	 	information required by the Inland Revenue pursuant to
Paragraph 44 of Schedule 5;

 

 

	 	(b)	 	a declaration from a director or the Company Secretary of the
Employer Company, that in his opinion the requirements of Schedule 5 have been
met in relation to an EMI Option under this Plan and that to the best of his
knowledge, the information provided is correct and complete; and
	 
	 	(c)	 	a declaration from the Optionholder to whom the EMI Option is
granted that he meets the Committed Time requirement.

12. Amendments

	 	12.1	 	Notwithstanding Rule 12.2, if the Inland Revenue raise a notice of enquiry
pursuant to Paragraph 46 of Schedule 5 and conclude that the requirements of Schedule 5
have not been met in relation to this Plan and/or the Option Agreement (as the case may
be) the Board of Directors may alter the Rules of this Plan as may be necessary to
ensure that the requirements of Schedule 5 have been met.
	 
	 	12.2	 	The Board of Directors may alter or add to all or any of the provisions of this
Plan and/or Option Agreement and the terms of any Options as they consider necessary or
desirable in order to:

	 	(a)	 	make the administration of this Plan more effective or easier;
	 
	 	(b)	 	comply with or take account of the provisions of any proposed
or existing legislation;
	 
	 	(c)	 	obtain or maintain favourable tax or regulatory treatment for
the Company or any Group Company or any Optionholder,

without the need for the consent of Optionholders provided that such amendments or additions
do not affect the basic principles of this Plan and/or Option Agreements.

 

 

	 	12.3	 	Written notice of any amendment to this Plan shall be given to all
Optionholders affected thereby.

13. General

	 	13.1	 	The Company will at all times keep available sufficient authorised and unissued
Shares, or shall ensure that sufficient Shares will be available, to satisfy the
exercise to the full extent still possible of all Options not lapsed pursuant to the
provisions of these Rules, taking account of any other obligations of the Company to
issue Shares.
	 
	 	13.2	 	Notwithstanding any other provision of this Plan:

	 	13.2.1	 	this Plan shall not form part of any contract of employment between any Group
Company and any employee of any such company and the rights and obligations of
any individual under the terms of his office or employment with any Group
Company shall not be affected by his participation in this Plan or any right
which he may have to participate in it and this Plan shall afford such an
individual no additional rights to compensation or damages in consequence of
the termination of such office or employment for any reason whatsoever,
including if such termination of employment was lawful or unlawful;
	 
	 	13.2.2	 	no Optionholder shall be entitled to any compensation or damages for any loss
or potential loss which he may suffer by reason of being unable to exercise an
Option in consequence of the loss or termination of his office or employment
with any Group Company for any reason whatsoever including if such termination
of employment was lawful or unlawful;

 

 

	 	13.2.3	 	this Plan shall not confer on any person any legal or equitable rights (other
than those constituting the Options themselves) against any Group Company
directly or indirectly, or give rise to any cause of action at law or in equity
against any Group Company.

	 	13.3	 	Save as otherwise provided in this Plan any notice or communication to be given
by the Company to any Eligible Individual or Optionholder may be personally delivered
or sent by fax or by ordinary post to his last known address. Where a notice or
communication is sent by post it shall be deemed to have been received 48 hours after
the same was put into the post properly addressed and stamped and where a notice or
communication is sent by fax it shall be deemed to have been
received at the time when it was sent. Share certificates and other communications
sent by post will be sent at the risk of the Eligible Individual or Optionholder
concerned and the Company shall have no liability whatsoever to any such person in
respect of any notification, document, share certificate or other communication so
given, sent or made.
	 
	 	13.4	 	Any notice to be given to the Company shall be delivered or sent by either post
or fax to the Company at its registered office and shall be effective upon receipt.
	 
	 	13.5	 	This Plan and all Options granted under it shall be governed by and construed
in accordance with the law of England and Wales.exv10w8

 

 Exhibit 10.8

Gomez, Inc.

2005 Stock Incentive Plan

Incentive Stock Option Grant Notice And Agreement

The optionee identified below has been granted the following option to purchase Common Stock of
Gomez, Inc. (the “Company”):

	 	 	 	 	 
	 

	 	Name of Optionee:
	 	«Name»
	 
	 	 	 	 
	 

	 	Number of Shares
Subject to Option:
	 	«Options»
	 
	 	 	 	 
	 

	 	Exercise Price Per Share:
	 	$x.xx
	 
	 	 	 	 
	 

	 	Date of Grant:
	 	January 23, 2007
	 
	 	 	 	 
	 

	 	Vesting Commencement Date:
	 	«VCD»

By your signature and the signature of the Company’s representative below, you and the Company
agree that this option is granted under and governed by the terms and conditions of the Gomez, Inc.
2005 Stock Incentive Plan and the Incentive Stock Option Agreement which is attached to and made a
part of this document.

By your signature below, you further agree that there are no outstanding and unfulfilled promises,
commitments or expectations, written or otherwise, regarding current or future equity incentives to
be issued to you by the Company.

This Incentive Stock Option Grant Notice and the attached Incentive Stock Option Agreement must
signed by the optionee and an authorized representative of the Company.

	 	 	 	 	 	 	 	 	 
	OPTIONEE:	 	 	 	Gomez, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

(Signature)

	 	 
	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

GOMEZ, INC.

Incentive Stock Option Agreement

     Gomez, Inc., a Delaware corporation (the “Company”), hereby grants to the optionee
(the “Employee”), as of the grant date written on the Incentive Stock Option Grant Notice
and Agreement (the “Notice”), an option to purchase all or any part of an aggregate of the
number of shares of Common Stock, $.001 par value (the “Common Stock”) set forth in the
Notice (the Shares”), on the terms and conditions and subject to all the limitations set
forth herein and in the Company’s 2005 Stock Incentive Plan (the “Plan”).

     1. Grant Under 2005 Stock Incentive Plan. This option is granted pursuant to and is
governed by the Plan and, unless the context otherwise requires, terms used herein shall have the
same meaning as in the Plan. Determinations made in connection with this option pursuant to the
Plan shall be governed by the Plan.

     2. Grant as Incentive Stock Option; Other Options. This option is intended to qualify
as an incentive stock option under Section 422(b) of the Internal Revenue Code of 1986 (the
“Code”). This option is in addition to any other options heretofore or hereafter granted
to the Employee by the Company. A duplicate original of this instrument shall not effect the grant
of another option.

     3. Vesting.

          (a) Vesting if Employment Continues. If the Employee has continued to be employed by
the Company on the applicable dates, the Employee may exercise this option for the following number
of Shares: (a) as to one-quarter (1/4) of the Shares, on the first anniversary of the Vesting
Commencement Date, as identified in the Notice; and (b) as to the remaining three-quarters (3/4) of
the Shares, in 12 quarterly installments beginning on the first day of the first quarter following
the first anniversary of the Vesting Commencement Date, as provided in the Notice. The foregoing
rights are cumulative and, while the Employee continues to be employed by the Company, may be
exercised on or before ten years from date hereof (the “Scheduled Expiration Date”). All
of the foregoing rights are subject to Articles 4 and 5, as appropriate, if the Employee ceases to
be employed by the Company or dies or becomes disabled while in the employ of the Company.

          (b) Accelerated Vesting Due to Change of Control Event.

               (i) In the event a Change of Control Event (as defined below) that is not a Private
Transaction (as defined below) occurs prior to the first anniversary of the Vesting Commencement
Date while the Employee is employed with the Company, then the number of Shares equal to the
product of (x) the number of full months that the Employee has been employed by the Company divided
by forty-eight, and (y) the total number of Shares shall, immediately prior to the closing of the
Change of Control Event, become vested. If, pursuant to Paragraph 13(B)(i) of the Plan, the
Company or the Successor Board makes appropriate provisions for the continuation of outstanding
options issued by the Company, then the Employee’s remaining unvested options will continue to vest
after the closing of the Change of Control Event at the same rate and on the same vesting dates as
set forth above in Article 3(a),

 

 

provided that the Employee continuously maintains employment with the Company or its successor
through the applicable vesting dates.

               (ii) In the event (1) a Change of Control Event that is not a Private Transaction occurs on or
after the first anniversary of the Vesting Commencement Date while the Employee is employed with
the Company and (2) the Employee is terminated on or prior to the six month anniversary date of the
consummation of the Change of Control Event either by (x) the Employee for Good Reason or (y) the
Company (or the entity surviving the Change of Control Event if, pursuant to Paragraph 13(B)(i) of
the Plan, the Company or the Successor Board makes appropriate provisions for the continuation of
outstanding options issued by the Company prior to the Change of Control Event) for reason(s) other
than Misconduct (as defined below) and (3) the Employee has options to purchase Shares still
subject to vesting, then one-half of the then number of unvested Shares shall, immediately upon
such termination, become vested and the repurchase provisions of Section 19 in this Agreement
applicable to the Shares issued upon exercise of such accelerated options shall lapse.

     “Change of Control Event” means (1) a merger or consolidation of the Company
into or with any other person or persons who are not affiliates of the Company following
which more than 50% of the voting power of the surviving entity is held, directly or
indirectly, by persons who were not stockholders of the Company or affiliates thereof prior
to the consummation of such transaction or (2) a single transaction or a series of
transactions pursuant to which a person or persons who are not affiliates of the Company
prior to such transaction or transactions acquire either of the following: (i) capital stock
of the Company possessing the voting power to elect a majority of the Company’s board of
directors (whether by merger, consolidation or sale or transfer of the Company’s capital
stock), except that any acquisition of securities directly from the Company shall be
disregarded for purposes of this clause (i); or (ii) all or substantially all of the
Company’s assets determined on a consolidated basis.

     “Private Transaction” means any Change of Control Event where the consideration
received or retained by the holders of the then outstanding capital stock of the Company
does not consist of (i) cash or cash equivalent consideration, (ii) securities which are
registered under the Securities Act of 1933, as amended (the “Act”) and/or (iii)
securities for which the Company or any other issuer thereof has agreed, including pursuant
to a demand, to file a registration statement within ninety (90) days of completion of the
transaction for resale to the public pursuant to the Act.

     “Good Reason” means any one or more of the following: (i) any material
diminution in the Employee’s functions, duties, or responsibilities from and after a Change
of Control Event, (ii) any material reduction in the cash compensation payable to the
Employee from and after a Change of Control Event, other than as part of a salary reduction
program among multiple employees, or (iii) a change of more than 50 miles in the Employee’s
permanent workplace without the Employee’s consent.

     “Misconduct” means any one or more of the following: (i) the commission of an
act of embezzlement, fraud or dishonesty, (ii) the deliberate disregard of the rules or
policies of the Company which results in material loss, damage or injury to the Company,

- 2 -

 

whether directly or indirectly, (iii) the unauthorized disclosure of any trade secret or
confidential information of the Company, (iv) the breach by the Employee of any agreement
with the Company, including without limitation any noncompetition agreement between the
Employee and the Company, or (v) the willful failure by the Employee to perform such
Employee’s material responsibilities to the Company. In making such determination, the
Board shall act fairly and in good faith.

          (c) Parachute Payments. If, in connection with an acceleration of unvested options
pursuant to Article 3(b) above, a tax under Section 4999 of the Code would be imposed on the
Employee (after taking into account the exceptions set forth in Sections 280G(b)(4) and 280G(b)(5)
of the Code), and the Employee, on an after-tax basis (taking into account such tax) would receive
greater net compensation by not having any or all of such Stock Rights accelerate, then at the
discretion of the Committee, the number of Shares of the Employee which shall become immediately
vested as provided in Article 3(b) above may be reduced (or delayed), to the extent necessary to
maximize such net compensation. For purposes of determining “net compensation”, the amount of
compensation considered to be realized by the Employee as a result of such acceleration shall be
determined in accordance with the principles set forth in the Treasury Regulations under Section
280G of the Code for determining the amount of any “parachute payment” resulting from the
acceleration of vesting of restricted stock, a stock option or any other unvested stock right.

     4. Termination of Employment. Subject to the provisions of Article 18, if the
Employee ceases to be employed by the Company, other than by reason of death or disability as
defined in Article 5, no further installments of this option shall become exercisable following the
date of such cessation of employment and this option shall terminate after the passage of 30 days
from the date employment ceases, but in no event later than the Scheduled Expiration Date. In such
a case, the Employee’s only rights hereunder shall be those which are properly exercised before the
termination of this option.

     5. Death; Disability. If the Employee dies while in the employ of the Company, this
option may be exercised, to the extent of the number of Shares with respect to which the Employee
could have exercised it on the date of the Employee’s death, by the Employee’s estate, personal
representative or beneficiary to whom this option has been assigned pursuant to Article 10, at any
time within one (1) year after the date of death, but not later than the Scheduled Expiration Date.
If the Employee ceases to be employed by the Company by reason of the Employee’s “disability” (as
defined in the Plan), this option may be exercised, to the extent of the number of Shares with
respect to which the Employee could have exercised it on the date of the termination of the
Employee’s employment, at any time within one (1) year after such termination, but not later than
the Scheduled Expiration Date. At the expiration of such one year period or the Scheduled
Expiration Date, whichever is earlier, this option shall terminate and the only rights hereunder
shall be those as to which the option was properly exercised before such termination.

     6. Partial Exercise. Exercise of this option up to the extent above stated may be
made in part at any time and from time to time within the above limits, except that this option may
not be exercised for a fraction of a share. Any fractional share with respect to which an
installment of this option cannot be exercised because of the limitation contained in the

- 3 -

 

preceding sentence shall remain subject to this option and shall be available for later
purchase by the Employee in accordance with the terms hereof.

     7. Payment of Price. The option price is payable in United States dollars and may be
paid either (i) in cash, (ii) by check, (iii) if the Company so agrees in writing, by delivery of
an irrevocable and unconditional undertaking, satisfactory in form and substance to the Company, by
a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise
price, or delivery by the Employee to the Company of a copy of irrevocable and unconditional
instructions, satisfactory in form and substance to the Company, to a creditworthy broker to
deliver promptly to the Company cash or a check sufficient to pay the exercise price, or (iv) if
the Company so agrees in writing, by any combination of the foregoing, equal in amount to the
option price.

     8. Agreement to Purchase for Investment. By acceptance of this option, the Employee
agrees that a purchase of Shares under this option will not be made with a view to their
distribution, as that term is used in the Act, and that the Employee will not sell, transfer,
pledge or otherwise dispose of such Shares unless in the opinion of counsel to the Company such
sale, transfer, pledge or other disposition is in compliance with or exempt from the registration
and prospectus requirements of the Act. Furthermore, the Employee agrees to sign a certificate to
the foregoing effect at the time of exercising this option and agrees that the certificate for the
Shares so purchased may be inscribed with a legend to ensure compliance with this Article 8, and
the Act, as well as with Article 10, Article 17, Article 19 and Article 20, which legend may be
substantially in the following form or in such other form as may be satisfactory to the Company:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”) OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO A REGISTRATION
UNDER THE ACT OR AN EXEMPTION THEREFROM.

ANY SALE, ASSIGNMENT, TRANSFER OR OTHER DISPOSITION OF THE SHARES
REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY, AND SUBJECT TO,
THE TERMS AND PROVISIONS OF A CERTAIN INCENTIVE STOCK OPTION
AGREEMENT BETWEEN THE COMPANY AND THE EMPLOYEE (AS DEFINED IN SUCH
AGREEMENT) CONTAINING PROVISIONS RELATING, INTER-ALIA, TO
RESTRICTIONS ON TRANSFER, DRAG-ALONG RIGHTS AND RIGHTS OF
REPURCHASE. A COPY OF SAID AGREEMENT IS ON FILE WITH THE SECRETARY
OF THE COMPANY.

     9. Method of Exercising Option. Subject to the terms and conditions of this
Agreement, this option may be exercised by written notice to the Company, at the principal

- 4 -

 

executive office of the Company, or to such transfer agent as the Company shall designate.
Such notice shall state the election to exercise this option and the number of Shares in respect of
which it is being exercised and shall be signed by the person or persons so exercising this option.
If the method of payment for the Shares is described in paragraph (i), (ii) or (iv) of Article 7,
such notice shall be accompanied by payment of the full purchase price of such Shares. The Company
shall deliver a certificate or certificates representing such Shares as soon as practicable after
the notice shall be received. The certificate or certificates for the Shares as to which this
option shall have been so exercised shall be registered in the name of the person or persons so
exercising this option (or, if this option shall be exercised by the Employee and if the Employee
shall so request in the notice exercising this option, shall be registered in the name of the
Employee and another person jointly, with right of survivorship) and shall be delivered as provided
above to or upon the written order of the person or persons exercising this option. In the event
this option shall be exercised, pursuant to Article 5 hereof, by any person or persons other than
the Employee, such notice shall be accompanied by appropriate proof of the right of such person or
persons to exercise this option. All Shares that shall be purchased upon the exercise of this
option as provided herein shall be fully paid and non-assessable.

     10. Transfer Restrictions.

          (a) Restriction on Transfer/Exercise of Option. This option is not transferable or
assignable except by will or by the laws of descent and distribution. During the Employee’s
lifetime only the Employee can exercise this option.

          (b) Restriction on Transfer of Shares.

     (i) The Employee may not sell, assign, transfer or otherwise dispose of any
Shares at any time prior to the effective date of an Initial Public Offering (as
defined in, and further subject to, the provisions of Article 20), except:

          (A) with the prior written consent of and subject to such conditions as may be
imposed by the Board;

          (B) if the Employee is then party to, and the Shares are then subject to, the
restrictions set forth in the Fourth Amended and Restated Investor Rights Agreement,
by and among the Company and the several stockholder parties thereto from time to
time (as the same may be amended, restated or otherwise modified from time to time,
the “Investor Rights Agreement”), in accordance with the Investor Rights
Agreement, provided that (I) any sale, assignment or transfer of Shares that are
“Residual Shares” (as defined in Section 3.1(c) of the Investor Rights Agreement)
shall be pursuant to the following Article 10(b)(ii) through (v) and (II) the
transferee of such Shares agrees in writing to assume the obligations of and be
bound by the terms and conditions of this Agreement, including, without limitation,
Article 19, and the Investor Rights Agreement;

          (C) if the Employee is not then party to the Investor Rights Agreement or the
Shares are not then subject to the restrictions set forth therein,

- 5 -

 

(x) pursuant to the following Article 10(b)(ii) through (v) or (y) pursuant to
Article 17 or Article 19; or

          (D) by will or by the laws of descent and distribution, but only if the
transferee of such Shares agrees in writing to assume the obligations of and be
bound by the terms and conditions of this Agreement, including, without limitation,
Article 19 and, if applicable, the Investor Rights Agreement.

     (ii) Company Right of First Refusal. If the Employee proposes to sell,
transfer or otherwise dispose of any Shares, or of any interest in such Shares, now
or hereafter owned by the Employee, to any person, whether voluntarily or by
operation of law, other than pursuant to Article 10(b)(i)(A), (B), (C)(y) or (D) of
this Agreement, the Employee shall first provide written notice (the “Offer
Notice”) to the Company, which notice must specify: (A) the name and address of
the party to which the Employee proposes to sell, transfer or otherwise dispose of
the Shares or an interest in the Shares (the “Offeror”), (B) the number of
Shares the Employee proposes to sell, transfer or otherwise dispose of (the
“Offered Shares”), (C) the consideration per share which the Employee is
seeking for the proposed sale, transfer or disposition, and (D) all other material
terms and conditions of the proposed transaction, all of which must be bona fide.
The Company shall have the option to purchase all or any part of the Offered Shares
for the consideration per share and on the terms and conditions specified in the
Offer Notice (the “Company Option”). If the Company wishes to exercise such
option, it must do so by giving written notice thereof to the Employee no later than
20 days after the Offer Notice is given to the Company (the “Option
Period”). The closing of such purchase shall take place at the offices of the
Company on the date five business days after the expiration of the Option Period.
Notwithstanding the foregoing, if there is any dispute with respect to Fair Market
Value (defined below) and the provisions of the following Section 10(b)(iv) are
invoked, the closing shall take place, as applicable, five business days after the
determination of Fair Market Value in accordance with Section 10(b)(iv).

     (iii) To the extent the Company does not fully exercise the Company Option
within the Option Period, then the Employee shall consummate the sale of the Offered
Shares not purchased by the Company (such Shares are the “Remaining Shares”)
in accordance with all material terms and conditions of the proposed transaction set
forth in the Offer Notice, at any time on or prior to 60 days after the expiration
of the Option Period. If the Employee is unable to so consummate such sale of the
Remaining Shares within such 60 day period, the Remaining Shares may not be sold by
the Employee (other than in accordance with Section 10(b)(i)(A), (B), (C)(y) or (D))
without the giving of a new Offer Notice and the compliance by the Employee with all
the conditions and procedures in the Sections 10(b)(ii) through (v) hereof with
respect to such proposed sale.

     (iv) To the extent that the consideration per share proposed by the Offeror for
the Offered Shares consists of property other than cash or a

- 6 -

 

promissory note, the consideration required to be paid by the Company in
exercising the Company Option may consist of cash per share equal to the Fair Market
Value of such property. For the purposes of this Section 10(b), the “Fair
Market Value” of such property shall be determined by agreement of the Employee
and the Company (the “Transaction Parties”) within 20 days after the
termination of the Option Period, or, failing such agreement, the Fair Market Value
shall be determined by appraisal as follows:

(A) if the Transaction Parties agree upon an appraiser within such 20
day period, then such appraiser’s appraisal shall govern; or

(B) failing an agreement pursuant to the foregoing clause (A), then,
within 15 days after the lapse of such 20-day period, each of the
Transaction Parties, by notice to the other, shall appoint one
appraiser who shall be experienced in the appraisal of the type of
property to be appraised, and then the two appraisers shall select a
third appraiser whose appraisal shall govern; or

(C) if either Transaction Party fails to appoint an appraiser as
provided in the foregoing clause (B), then the appraisal by the
appraiser appointed by the Transaction Party which does appoint an
appraiser shall govern.

     All appraisal reports shall be rendered in writing and shall be signed by the
governing appraiser, and the Transaction Parties shall use reasonable efforts to
cause such appraiser to render its appraisal report within 20 days after the date of
its appointment. The costs of the appraisal shall be shared equally between the
Transaction Parties.

     (v) Unless otherwise agreed to in writing by the Company, after any sale,
assignment, transfer or disposition of Shares hereunder, such Shares and the
transferee thereof shall continue to be subject to Articles 10, 17, 19 and 20 hereof
with respect to such Shares to the same extent as the Employee would have been in
the absence of such sale, assignment, transfer or disposition. In addition, the
Company may require, as a condition to effectuating any such sale, assignment,
transfer or disposition of Shares, that such transferee agree in writing, in form
acceptable to the Company, that such Shares shall continue to be subject to Articles
10, 17, 19 and 20 hereof.

     11. No Obligation to Exercise Option. The grant and acceptance of this option imposes
no obligation on the Employee to exercise it.

     12. No Obligation to Continue Employment. The Company and any Related Corporation (as
defined in the Plan) are not by the Plan or this option agreement obligated to continue the
Employee in employment.

     13. No Rights as Stockholder until Exercise. The Employee shall have no rights as a
stockholder with respect to Shares subject to this Agreement until a stock certificate therefor has

- 7 -

 

been issued to the Employee and is fully paid for. Except as is expressly provided in the
Plan with respect to certain changes in the capitalization of the Company, no adjustment shall be
made for dividends or similar rights for which the record date is prior to the date such stock
certificate is issued.

     14. Capital Changes and Business Successions. The Plan contains provisions covering
the treatment of options in a number of contingencies such as stock splits, mergers and sales of
the Company’s stock or assets. Without limiting the applicability of Article 1, provisions in the
Plan for adjustment with respect to stock subject to options and the related provisions with
respect to successors to the business of the Company are hereby made applicable to this Incentive
Stock Option Agreement and are incorporated herein by reference. In general, the Employee should
not assume that options necessarily would survive an acquisition of the Company. In particular,
without affecting the generality of the foregoing, it is understood that for the purposes of
Articles 3 through 5 hereof, employment by the Company includes employment by a Related Corporation
as defined in the Plan.

     15. Early Disposition. Without limiting the generality of Articles 8 and 10, the
Employee agrees to notify the Company in writing immediately after the Employee makes a
Disqualifying Disposition (as defined below) of any Common Stock received pursuant to the exercise
of this option. A “Disqualifying Disposition” is any disposition (including any sale) of
such Common Stock before the later of (a) two years after the date the Employee was granted this
option or (b) one year after the date the Employee acquired Common Stock by exercising this option.
If the Employee has died before such stock is sold, these holding period requirements do not apply
and no Disqualifying Disposition can occur thereafter. The Employee also agrees to provide the
Company with any information which it shall request concerning any such disposition. The Employee
acknowledges that the Employee will forfeit the favorable income tax treatment otherwise available
with respect to the exercise of this incentive stock option if the Employee makes a Disqualifying
Disposition of the stock received on exercise of this option.

     16. Withholding Taxes. If the Company in its discretion determines that it is
obligated to withhold tax with respect to a Disqualifying Disposition of Common Stock received by
the Employee on exercise of this option, the Employee hereby agrees that the Company may withhold
from the Employee’s wages the appropriate amount of federal, state and local withholding taxes
attributable to such Disqualifying Disposition. If any portion of this option is treated as a
Non-Qualified Option (as defined in the Plan), the Employee hereby agrees that the Company may
withhold from the Employee’s wages the appropriate amount of federal, state and local withholding
taxes attributable to the Employee’s exercise of such Non-Qualified Option. At the Company’s
discretion, the amount required to be withheld may be withheld in cash from such wages, or (with
respect to compensation income attributable to the exercise of this option) in kind from the Common
Stock otherwise deliverable to the Employee (or other person or persons) on exercise of this
option. The Employee further agrees that, if the Company does not withhold an amount from the
Employee’s wages sufficient to satisfy the Company’s withholding obligation, the Employee will
reimburse the Company on demand, in cash, for the amount underwithheld and that the Company may
decline to issue the Shares issuable upon exercise of the Option hereunder until provision
satisfactory to the Company for such reimbursement has been made.

- 8 -

 

     17. Drag Along Right.

          (a) Exercise of Right. If one or more persons who own in the aggregate 51% or more of
the then outstanding shares of Common Stock (including Common Stock issuable upon conversion of
outstanding preferred stock) of the Company (the “Majority Holders”) shall obtain from an
offeror (the “Offeror”) a bona fide arms’ length offer for a Change of Control Event, the
Majority Holders shall have the right to require, by written notice (the “Drag Along
Notice”), to any person who holds Shares pursuant to this Agreement (the “Notice
Recipient”) to cause all of the Shares acquired under this option to be transferred to the
Offeror, at the same per share purchase price (determined on an as-converted basis for preferred
stock but giving effect, however, to any liquidation preferences to which holders of such preferred
stock may be entitled) and payable in the same form of consideration as is being paid in respect of
the Common Stock being sold by the Majority Holders. If the sale to the Offeror has not occurred
within 180 days following the date of the Drag Along Notice, the Notice Recipient shall be released
from the Employee’s obligation under the Drag Along Notice, and it shall be necessary for a new and
separate Drag Along Notice to be furnished and the terms and provisions of this Article 17 to be
separately complied with in order to consummate such a sale pursuant to this Article 17, unless the
failure to complete such sale resulted from any failure by the Notice Recipient. Each Notice
Recipient shall take or cause to be taken all such actions as may be reasonably requested in order
to consummate a sale pursuant to this Article 17 expeditiously.

          (b) Voting; Proxies. Each Notice Recipient further agrees to vote, or grant proxies
to vote, all of the Notice Recipient’s Shares of capital stock of the Company in favor of any
Change of Control Event that is approved by the Majority Holders, provided that the price per share
and form of consideration paid in respect of the Shares held by the Notice Recipient is the same as
is paid with respect to other holders of Common Stock (determined on an as-converted basis for
preferred stock but giving effect, however, to any liquidation preferences to which holders of such
preferred stock may be entitled).

          (c) Adjustments for Changes in Capital Structure. If there shall be any change in the
Common Stock of the Company through merger, consolidation, reorganization, recapitalization, stock
dividend, split-up, combination or exchange of shares, or the like, the provisions contained in
this Article 17 shall apply with equal force to additional and/or substitute securities, if any,
received by the Employee in exchange for, or by virtue of the Employee’s ownership of, Shares.

          (d) Failure to Deliver Shares. If the Notice Recipient fails or refuses to deliver on
a timely basis duly endorsed certificates representing Shares to be sold pursuant to this Article
17, the Offeror shall have the right to deposit the purchase price for the Shares in a special
account with any bank or trust company in the Commonwealth of Massachusetts, giving notice of such
deposit to the Notice Recipient, whereupon such Shares shall be deemed to have been purchased by
the Offeror and such purchase shall be duly noted upon the books and records of the Company and all
the Notice Recipient’s rights in and to such Shares shall be terminated. All such monies shall be
held by the bank or trust company for the benefit of the Notice Recipient. All monies deposited
with the bank or trust company but remaining unclaimed for two (2) years after the date of deposit
shall be repaid by the bank or trust company to the

- 9 -

 

Company on demand, and the Notice Recipient shall thereafter look only to the Company for
payment.

          (e) Expiration of Drag Along Right. The drag along right set forth above shall remain
in effect until the effective date of the Company’s Initial Public Offering (as defined in Article
20).

          (f) Investor Rights Agreement. Notwithstanding the foregoing, if the Employee is then
party to and the Shares are then subject to the drag along right set forth in the Investor Rights
Agreement, then the Employee shall be bound by the “drag along” provision set forth in the Investor
Rights Agreement in lieu of this Section 17.

     18. No Exercise of Option if Act of Misconduct Occurs. If there shall be made a
determination of past or present Misconduct on the part of the Employee, this option shall
terminate on the date of such determination and shall thereupon not be exercisable to any extent
whatsoever.

     19. Company’s Right of Repurchase.

          (a) Exercise of Right. Upon the termination of the Employee’s employment with the
Company, at any time during the one hundred eighty (180) day period after the later of the
effective date of such termination and the date that the Company receives notice of such
termination (the “Repurchase Period”), the Company shall have the option, but not the
obligation, to repurchase all or any of the Shares acquired by the Employee upon exercise of this
option, from the Employee, or the Employee’s legal representatives, successors, assigns or
transferees, as the case may be (the “Repurchase Option”). The Repurchase Option shall be
exercised by the Company by giving the Employee, or the Employee’s legal representative, written
notice of its intention to exercise the Repurchase Option and the effective date of such
repurchase, which shall not be after the expiration of the Repurchase Period (the “Exercise
Notice”). If a determination of Misconduct is made by the Board pursuant to Article 18,
regardless of whether the Employee was terminated for such Misconduct, then the price to be paid
for the Shares by the Company under the Repurchase Option shall be the option price of the Shares
paid by the Employee. If there is no determination of Misconduct, then such price shall be the
greater of (i) the option price of the Shares paid by the Employee and (ii) the fair market value
of the Shares on the date of the Exercise Notice, as determined by Paragraph 6(C) of the Plan. The
applicable price shall be paid by the Company to the Employee, or the Employee’s legal
representative, in four (4) equal semi-annual installments with the first such installment due six
(6) months from the effective date of exercise of the Repurchase Option. The Company may, in
exercising the Repurchase Option, designate one or more nominees to purchase the Shares either
within or without the Company. No later than the effective date set forth in the Exercise Notice,
the Employee, or the Employee’s legal representative, shall deliver to the Company the stock
certificate or certificates representing the Shares being repurchased, duly endorsed and free and
clear of any and all liens, charges and encumbrances.

     If Shares are not purchased under the Repurchase Option, the Employee and the Employee’s
successor in interest, if any, will hold any such Shares in the Employee’s possession subject to
all of the provisions of this Agreement.

- 10 -

 

          (b) Failure to Deliver Shares. If the Employee fails or refuses to deliver on a
timely basis duly endorsed certificates representing the Shares to be repurchased by the Company or
its nominee(s) pursuant to this Article 19, the Company shall have the right to deposit the
purchase price for such Shares in a special account with any bank or trust company in the
Commonwealth of Massachusetts, giving notice of such deposit to the Employee, whereupon such Shares
shall be deemed to have been purchased by the Company and such purchase shall be duly noted upon
the books and records of the Company and all Employee’s rights in and to such Shares shall be
terminated. All such monies shall be held by the bank or trust company for the benefit of the
Employee. All monies deposited with the bank or trust company but remaining unclaimed for two (2)
years after the date of deposit shall be repaid by the bank or trust company to the Company on
demand, and the Employee shall thereafter look only to the Company for payment; provided further
that the Company shall have and may exercise any and all other rights under law with respect to
recovery by the Company of such Shares or any proceeds thereof. The Company shall have the right
to recover all costs and expenses suffered by the Company arising from Employee’s failure to
deliver the Shares under this Article 19, including reasonable legal counsel fees and costs, and
other expenses.

     20. Lock-up Agreement. The Employee agrees that the Employee will not, for a period
of at least 180 days following the effective date of the Company’s initial or any other
distribution of securities in an underwritten public offering to the general public pursuant to a
registration statement filed with the Securities and Exchange Commission (such initial distribution
referred to as the “Initial Public Offering” and any other such distribution referred to as
a “Public Offering”), directly or indirectly, sell, pledge, hypothecate, transfer, offer to
sell or otherwise dispose of the Company’s securities other than any securities which are included
in such Initial Public Offering or a Public Offering. If the managing underwriter of any Initial
Public Offering or a Public Offering determines that a shorter time period is appropriate, the
aforementioned 180 day period may be shortened consistent with the requirements of such managing
underwriter. If the managing underwriter of any Initial Public Offering or a Public Offering
determines that a longer time period is appropriate and the officers and directors of the Company
are subject to such longer time period, the aforementioned 180 day period may be lengthened
consistent with the requirements of such managing underwriter.

     21. Provision of Documentation to Employee. By signing this Agreement the Employee
acknowledges receipt of a copy of this Agreement and a copy of the Company’s 2005 Stock Incentive
Plan.

     22. Governing Law. This Agreement shall be governed by and interpreted in accordance
with the internal laws of the State of Delaware.

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This Incentive Stock Option Agreement and the attached Incentive Stock Option Grant Notice must
signed by the optionee and an authorized representative of the Company.

	 	 	 	 	 	 	 	 	 
	Optionee:	 	 	 	Gomez, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

(Signature)

	 	 
	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	«Name»
	 	 	 	  
 
Title:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

- 12 -

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