Document:

exv4w2

 

EXHIBIT 4.2

INPHOMATCH, INC.

2000 Equity Incentive Plan

Adopted: May 1, 2000

Approved By Stockholders: May 1, 2000

Termination Date: May 1, 2010

1. Purposes.

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

     (b) Available Stock Awards. The purpose of the Plan is to provide a means by which eligible
recipients of Stock Awards may be given an opportunity to benefit from increases in value of the
Common Stock through the granting of the following Stock Awards: (i) Incentive Stock Options, (ii)
Nonstatutory Stock Options, (iii) stock bonuses and (iv) rights to acquire restricted stock.

     (c) General Purpose. The Company, by means of the Plan, seeks to retain the services of the
group of persons eligible to receive Stock Awards, to secure and retain the services of new members
of this group and to provide incentives for such persons to exert maximum efforts for the success
of the Company and its Affiliates.

2. Definitions.

     (a) “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether
now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of
the Code.

     (b) “Board” means the Board of Directors of the Company.

     (c) “Cause” means if Participant is subject to a written employment agreement with the Company
in which the term “Cause” is specifically defined, the term shall have the same meaning for
purposes of this Plan. In all other instances, “Cause” shall mean (i) Participant’s failure to
perform duties consistent with his or her position; (ii) indictment or conviction of a felony or
any other crime involving moral turpitude or dishonesty; (iii) failure or refusal to comply with
Company policies, standards or regulations; (iv) conduct by the Participant that demonstrates gross
unfitness to serve in the capacity in which the Participant is serving at the time of such conduct;
(v) material violation of any agreement with the Company (including, but not limited to, any
proprietary information, inventions, non-solicitation and/or non-competition agreements with the
Company) or of any statutory duty to the Company; or (vi) the Participant’s willful dishonesty,
fraud, or misconduct with respect to the business or affairs of the Company.

 

 

     (d) “Code” means the Internal Revenue Code of 1986, as amended.

     (e) “Committee” means a committee of one or more members of the Board appointed by the Board
in accordance with subsection 3(c).

     (f) “Common Stock” means the common stock of the Company.

     (g) “Company” means InphoMatch, Inc., a Delaware corporation.

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

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

     (j) “Covered Employee” means the chief executive officer and the four (4) other highest
compensated officers of the Company for whom total compensation is required to be reported to
stockholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code.

     (k) “Director” means a member of the Board of Directors of the Company.

     (l) “Disability” means the permanent and total disability of a person within the meaning of
Section 22(e)(3) of the Code.

     (m) “Employee” means any person employed by the Company or an Affiliate. Mere service as a
Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to
constitute “employment” by the Company or an Affiliate.

     (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

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

2

 

          (i) If the Common Stock is listed on any established stock exchange or traded on the Nasdaq
National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock
shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as
quoted on such exchange or market (or the exchange or market with the greatest volume of trading in
the Common Stock) on the last market trading day prior to the day of determination, as reported in
The Wall Street Journal or such other source as the Board deems reliable.

          (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined in good faith by the Board.

     (p) “Good Reason” shall mean (i) reduction of a Participant’s rate of Compensation as in
effect immediately prior to a Change in Control by greater than ten percent (10%) without the
Participant’s prior written consent, except to the extent such reduction is part of a general
reduction of Compensation affecting all or substantially all employees of the Company or affecting
all or substantially all employees at the same level as the Participant; (ii) a material reduction
of a Participant’s job duties, powers or responsibilities to a level below that which would
ordinarily be assigned to an employee at the Participant’s level without his or her prior written
consent (but not merely a change in title or reporting relationships), provided that an assignment
of specific duties and functions of a Participant to someone else as a result of Company growth
and/or reorganization of the business shall not, by itself, constitute “Good Reason” unless in the
aggregate there has been a material reduction of the Participant’s job functions; (iii) a
relocation of the Participant’s principal work site on other than a temporary basis to a location
that is more than fifty (50) miles away from his or her principal work site at the time of the
Change in Control, unless the new location is the same distance or closer to the Participant’s
personal residence; or (iv) a failure or refusal of any successor company to assume the obligations
of the Company under an agreement with a Participant, or a material breach by the successor company
of any of the material provisions of an agreement with such Participant. The term “Compensation”
as used herein refers to a Participant’s base salary, as well as any bonus or commission that the
Participant is eligible to receive upon the attainment of performance goals or otherwise.

     (q) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

     (r) “Listing Date” means the first date upon which any security of the Company is listed (or
approved for listing) upon notice of issuance on any securities exchange or designated (or approved
for designation) upon notice of issuance as a national market security on an interdealer quotation
system.

     (s) “Non-Employee Director” means a Director who either (i) is not a current Employee or
Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or
indirectly) from the Company or its parent or a subsidiary for services rendered as a consultant or
in any capacity other than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation

3

 

S-K promulgated pursuant to the Securities Act
(“Regulation S-K”)), does not possess an interest in any other transaction as to which disclosure
would be required under Item 404(a) of Regulation S-K and is not engaged in a business relationship
as to which disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is otherwise
considered a “non-employee director” for purposes of Rule 16b-3.

     (t) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock
Option.

     (u) “Officer” means (i) before the Listing Date, any person designated by the Company as an
officer and (ii) on and after the Listing Date, a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

     (v) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant
to the Plan.

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

     (x) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option.

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

     (z) “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Stock Award.

     (aa) “Plan” means this InphoMatch, Inc. 2000 Equity Incentive Plan.

     (bb) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule
16b-3, as in effect from time to time.

     (cc) “Securities Act” means the Securities Act of 1933, as amended.

     (dd) “Stock Award” means any right granted under the Plan, including an Option, a stock bonus
and a right to acquire restricted stock.

4

 

     (ee) “Stock Award Agreement” means a written agreement between the Company and a holder of a
Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock
Award Agreement shall be subject to the terms and conditions of the Plan.

     (ff) “Ten Percent Stockholder” means a person who owns (or is deemed to own pursuant to
Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or of any of its Affiliates.

3. Administration.

     (a) Administration by Board. The Board shall administer the Plan unless and until the Board
delegates administration to a Committee, as provided in subsection 3(c).

     (b) Powers of Board. The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

          (i) To determine from time to time which of the persons eligible under the Plan shall be
granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of
types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not
be identical), including the time or times when a person shall be permitted to receive Common Stock
pursuant to a Stock Award; and the number of shares of Common Stock with respect to which a Stock
Award shall be granted to each such person.

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

          (iii) To amend the Plan or a Stock Award as provided in Section 12.

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

     (c) Delegation to Committee.

          (i) General. The Board may delegate administration of the Plan to a Committee or Committees
of one (1) or more members of the Board, and the term “Committee” shall apply to any person or
persons to whom such authority has been delegated. If administration is delegated to a Committee,
the Committee shall have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board, including the power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to the Board

5

 

shall
thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.
The Board may abolish the Committee at any time and revest in the Board the administration of the
Plan.

          (ii) Committee Composition when Common Stock is Publicly Traded. At such time as the Common
Stock is publicly traded, in the discretion of the Board, a Committee may consist solely of two or
more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such authority, the
Board or the Committee may (1) delegate to a committee of one or more members of the Board who are
not Outside Directors the authority to grant Stock Awards to eligible persons who are either (a)
not then Covered Employees and are not expected to be Covered Employees at the time of recognition
of income resulting from such Stock Award or (b) not persons with respect to whom the Company
wishes to comply with Section 162(m) of the Code or (2) delegate to a committee of one or more
members of the Board who are not Non-Employee Directors the authority to grant Stock Awards to
eligible persons who are not then subject to Section 16 of the Exchange Act.

     (d) Effect of Board’s Decision. All determinations, interpretations and constructions made by
the Board in good faith shall not be subject to review by any person and shall be final, binding
and conclusive on all persons.

4. Shares Subject to the Plan.

     (a) Share Reserve. Subject to the provisions of Section 11 relating to adjustments upon
changes in Common Stock, the Common Stock that may be issued pursuant to Stock Awards shall not
exceed in the aggregate five hundred twenty thousand (520,000) shares of Common Stock.

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

     (c) Source of Shares. The shares of Common Stock subject to the Plan may be unissued shares
or reacquired shares, bought on the market or otherwise.

5. Eligibility.

     (a) Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to
Employees. Stock Awards other than Incentive Stock Options may be granted to Employees, Directors
and Consultants.

     (b) Ten Percent Stockholders. A Ten Percent Stockholder shall not be granted an Incentive
Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of
the Fair Market Value of the Common Stock at the date of

6

 

grant and the Option is not exercisable
after the expiration of five (5) years from the date of grant.

     (c) Section 162(m) Limitation. Subject to the provisions of Section 11 relating to
adjustments upon changes in the shares of Common Stock, no Employee shall be eligible to be granted
Options covering more than three hundred eighty-five thousand (385,000) shares of Common Stock
during any calendar year. This subsection 5(c) shall not apply prior to the Listing Date and,
following the Listing Date, this subsection 5(c) shall not apply until (i) the earliest of: (1) the
first material modification of the Plan (including any increase in the number of shares of Common
Stock reserved for issuance under the Plan in accordance with Section 4); (2) the issuance of all
of the shares of Common Stock reserved for issuance under the Plan; (3) the expiration of the Plan;
or (4) the first meeting of stockholders at which Directors are to be elected that occurs after the
close of the third calendar year following the calendar year in which occurred the first
registration of an equity security under Section 12 of the Exchange Act; or (ii) such other date
required by Section 162(m) of the Code and the rules and regulations promulgated thereunder.

     (d) Consultants.

          (i) Prior to the Listing Date, a Consultant shall not be eligible for the grant of a Stock
Award if, at the time of grant, either the offer or the sale of the Company’s securities to such
Consultant is not exempt under Rule 701 of the Securities Act (“Rule 701”) because of the nature of
the services that the Consultant is providing to the Company, or because the Consultant is not a
natural person, or as otherwise provided by Rule 701, unless the Company determines that such grant
need not comply with the requirements of Rule 701 and will satisfy another exemption under the
Securities Act as well as comply with the securities laws of all other relevant jurisdictions.

          (ii) From and after the Listing Date, a Consultant shall not be eligible for the grant of a
Stock Award if, at the time of grant, a Form S-8 Registration Statement under the Securities Act
(“Form S-8”) is not available to register either the offer or the sale of the Company’s securities
to such Consultant because of the nature of the services that the Consultant is providing to the
Company, or because the Consultant is not a natural person, or as otherwise provided by the rules
governing the use of Form S-8, unless the Company determines both (i) that such grant (A) shall be
registered in another manner under the Securities Act (e.g., on a Form S-3 Registration Statement)
or (B) does not require registration under the Securities Act in order to comply with the
requirements of the Securities Act, if applicable, and (ii) that such grant complies with the
securities laws of all other relevant jurisdictions.

          (iii) Rule 701 and Form S-8 generally are available to consultants and advisors only if (i)
they are natural persons; (ii) they provide bona fide services to the issuer, its parents, its
majority-owned subsidiaries or majority-owned subsidiaries of the issuer’s parent; and (iii) the
services are not in connection with the offer or sale of securities in a capital-raising
transaction, and do not directly or indirectly promote or maintain a market for the issuer’s
securities.

7

 

6. Option Provisions.

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

     (a) Term. Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, no
Incentive Stock Option shall be exercisable after the expiration of ten (10) years from the date it
was granted.

     (b) Exercise Price of an Incentive Stock Option. Subject to the provisions of subsection 5(b)
regarding Ten Percent Stockholders, the exercise price of each Incentive Stock Option shall be not
less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the
Option on the date the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option
may be granted with an exercise price lower than that set forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option in a manner
satisfying the provisions of Section 424(a) of the Code.

     (c) Exercise Price of a Nonstatutory Stock Option. The exercise price of each Nonstatutory
Stock Option shall be not less than eighty-five percent (85%) of the Fair Market Value of the
Common Stock subject to the Option on the date the Option is granted. Notwithstanding the
foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower than that set
forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424(a) of the Code.

     (d) Consideration. The purchase price of Common Stock acquired pursuant to an Option shall be
paid, to the extent permitted by applicable statutes and regulations, either (i) in cash at the
time the Option is exercised or (ii) at the discretion of the Board at the time of the grant of the
Option (or subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the Company
of other Common Stock, (2) according to a deferred payment or other similar arrangement with the
Optionholder or (3) in any other form of legal consideration that may be acceptable to the Board.
Unless otherwise specifically provided in the Option, the purchase price of Common Stock acquired
pursuant to an Option that is paid by delivery to the Company of other Common Stock acquired,
directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the
Company that have been held for more than six (6) months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting purposes). At any time that the
Company is incorporated in Delaware, payment of the Common Stock’s “par value,” as defined in the
Delaware General Corporation Law, shall not be made by deferred payment.

8

 

     In the case of any deferred payment arrangement, interest shall be compounded at least
annually and shall be charged at the minimum rate of interest necessary to avoid the treatment as
interest, under any applicable provisions of the Code, of any amounts other than amounts stated to
be interest under the deferred payment arrangement.

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

     (f) Transferability of a Nonstatutory Stock Option. A Nonstatutory Stock Option shall be
transferable to the extent provided in the Option Agreement. If the Nonstatutory Stock Option does
not provide for transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be exercisable during the
lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

     (g) Vesting Generally. The total number of shares of Common Stock subject to an Option may,
but need not, vest and therefore become exercisable in periodic installments that may, but need
not, be equal. The Option may be subject to such other terms and conditions on the time or times
when it may be exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The provisions of this
subsection 6(g) are subject to any Option provisions governing the minimum number of shares of
Common Stock as to which an Option may be exercised.

     (h) Termination of Continuous Service. In the event an Optionholder’s Continuous Service
terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise
his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of
the date of termination) but only within such period of time ending on the earlier of (i) the date
three (3) months following the termination of the Optionholder’s Continuous Service (or such longer
or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the
Option as set forth in the Option Agreement. If, after termination, the Optionholder does not
exercise his or her Option within the time specified in the Option Agreement, the Option shall
terminate.

     (i) Extension of Termination Date. An Optionholder’s Option Agreement may also provide that
if the exercise of the Option following the termination of the Optionholder’s Continuous Service
(other than upon the Optionholder’s death or Disability) would be prohibited at any time solely
because the issuance of shares of Common Stock would violate the registration requirements under
the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the
term of the Option set

9

 

forth in subsection 6(a) or (ii) the expiration of a period of three (3)
months after the termination of the Optionholder’s Continuous Service during which the exercise of
the Option would not be in violation of such registration requirements.

     (j) Disability of Optionholder. In the event that an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her
Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of
termination), but only within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified in the Option
Agreement) or (ii) the expiration of the term of the Option as set forth in the Option Agreement.
If, after termination, the Optionholder does not exercise his or her Option within the time
specified herein, the Option shall terminate.

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

     (l) Early Exercise. The Option may, but need not, include a provision whereby the
Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to
exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior
to the full vesting of the Option. Any unvested shares of Common Stock so purchased may be subject
to a repurchase option in favor of the Company or to any other restriction the Board determines to
be appropriate. The Company will not exercise its repurchase option until at least six (6) months
(or such longer or shorter period of time required to avoid a charge to earnings for financial
accounting purposes) have elapsed following exercise of the Option unless the Board otherwise
specifically provides in the Option.

     (m) Right of Repurchase. The Option may, but need not, include a provision whereby the
Company may elect, prior to the Listing Date, to repurchase all or any part of the vested shares of
Common Stock acquired by the Optionholder pursuant to the exercise of the Option. The Company will
not exercise its repurchase option until at least six (6) months (or such longer or shorter period
of time required to avoid a charge to earnings for financial accounting purposes) have elapsed
following exercise of the Option unless the Board otherwise specifically provides in the Option.

10

 

     (n) Right of First Refusal. The Option may, but need not, include a provision whereby the
Company may elect, prior to the listing Date, to exercise a right of first refusal following
receipt of notice from the Optionholder of the intent to transfer all or any part of the shares of
Common Stock received upon the exercise of the Option.

     (o) Re-Load Options.

          (i) Without in any way limiting the authority of the Board to make or not to make grants of
Options hereunder, the Board shall have the authority (but not an obligation) to include as part of
any Option Agreement a provision entitling the Optionholder to a further Option (a “Re-Load
Option”) in the event the Option holder exercises the Option evidenced by the Option Agreement, in
whole or in part, by surrendering other shares of Common Stock in accordance with this Plan and the
terms and conditions of the Option Agreement. Unless otherwise specifically provided in the
Option, the Optionholder shall not surrender shares of Common Stock acquired, directly or
indirectly from the Company, unless such shares have been held for more than six (6) months (or
such longer or shorter period of time required to avoid a charge to earnings for financial
accounting purposes).

          (ii) Any such Re-Load Option shall (1) provide for a number of shares of Common Stock equal to
the number of shares of Common Stock surrendered as part or all of the exercise price of such
Option; (2) have an expiration date which is the same as the expiration date of the Option the
exercise of which gave rise to such Re-Load Option; and (3) have an exercise price which is equal
to one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Re-Load
Option on the date of exercise of the original Option. Notwithstanding the foregoing, a Re-Load
Option shall be subject to the same exercise price and term provisions heretofore described for
Options under the Plan.

          (iii) Any such Re-Load Option may be an Incentive Stock Option or a Nonstatutory Stock Option,
as the Board may designate at the time of the grant of the original Option; provided, however, that
the designation of any Re-Load Option as an Incentive Stock Option shall be subject to the one
hundred thousand dollar ($100,000) annual limitation on the exercisability of Incentive Stock
Options described in subsection 10(d) and in Section 422(d) of the Code. There shall be no Re-Load
Options on a Re-Load Option. Any such Re-Load Option shall be subject to the availability of
sufficient shares of Common Stock under subsection 4(a) and the “Section 162(m) Limitation” on the
grants of Options under subsection 5(c) and shall be subject to such other terms and conditions as
the Board may determine which are not inconsistent with the express provisions of the Plan
regarding the terms of Options.

7. Provisions of Stock Awards Other Than Options.

     (a) Stock Bonus Awards. Each stock bonus agreement shall be in such form and shall contain
such terms and conditions as the Board shall deem appropriate. The terms and conditions of stock
bonus agreements may change from time to time, and the terms and conditions of separate stock bonus
agreements need not be identical, but each

11

 

stock bonus agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

          (i) Consideration. A stock bonus may be awarded in consideration for past services actually
rendered to the Company or an Affiliate for its benefit.

          (ii) Vesting. Shares of Common Stock awarded under the stock bonus agreement may, but need
not, be subject to a share repurchase option in favor of the Company in accordance with a vesting
schedule to be determined by the Board.

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

          (iv) Transferability. Rights to acquire shares of Common Stock under the stock bonus
agreement shall be transferable by the Participant only upon such terms and conditions as are set
forth in the stock bonus agreement, as the Board shall determine in its discretion, so long as
Common Stock awarded under the stock bonus agreement remains subject to the terms of the stock
bonus agreement.

     (b) Restricted Stock Awards. Each restricted stock purchase agreement shall be in such form
and shall contain such terms and conditions as the Board shall deem appropriate. The terms and
conditions of the restricted stock purchase agreements may change from time to time, and the terms
and conditions of separate restricted stock purchase agreements need not be identical, but each
restricted stock purchase agreement shall include (through incorporation of provisions hereof by
reference in the agreement or otherwise) the substance of each of the following provisions:

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

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

          (iii) Vesting. Shares of Common Stock acquired under the restricted stock purchase agreement
may, but need not, be subject to a share repurchase option in favor of the Company in accordance
with a vesting schedule to be determined by the Board.

12

 

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

          (v) Transferability. Rights to acquire shares of Common Stock under the restricted stock
purchase agreement shall be transferable by the Participant only upon such terms and conditions as
are set forth in the restricted stock purchase agreement, as the Board shall determine in its
discretion, so long as Common Stock awarded under the restricted stock purchase agreement remains
subject to the terms of the restricted stock purchase agreement.

8. Covenants of the Company.

     (a) Availability of Shares. During the terms of the Stock Awards, the Company shall keep
available at all times the number of shares of Common Stock required to satisfy such Stock Awards.

     (b) Securities Law Compliance. The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to grant
Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards;
provided, however, that this undertaking shall not require the Company to register under the
Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such
regulatory commission or agency the authority which counsel for the Company deems necessary for the
lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and
until such authority is obtained.

9. Use of Proceeds From Stock.

     Proceeds from the sale of Common Stock pursuant to Stock Awards shall constitute general funds
of the Company.

10. Miscellaneous.

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

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

13

 

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

     (d) Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market
Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by any Optionholder during any calendar year (under all
plans of the Company and its Affiliates) exceeds one hundred thousand dollars ($100,000), the
Options or portions thereof which exceed such limit (according to the order in which they were
granted) shall be treated as Nonstatutory Stock Options.

     (e) Investment Assurances. The Company may require a Participant, as a condition of
exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances
satisfactory to the Company as to the Participant’s knowledge and experience in financial and
business matters and/or to employ a purchaser representative reasonably satisfactory to the Company
who is knowledgeable and experienced in financial and business matters and that he or she is
capable of evaluating, alone or together with the purchaser representative, the merits and risks of
exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating
that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own
account and not with any present intention of selling or otherwise distributing the Common Stock.
The foregoing requirements, and any assurances given pursuant to such requirements, shall be
inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of
Common Stock under the Stock Award has been registered under a then currently effective
registration statement under the Securities Act or (2) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities laws. The Company may, upon advice of counsel
to the Company, place legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws, including, but not
limited to, legends restricting the transfer of the Common Stock.

     (f) Withholding Obligations. To the extent provided by the terms of a Stock Award Agreement,
the Participant may satisfy any federal, state or local tax withholding obligation relating to the
exercise or acquisition of Common Stock under a Stock Award by any of the following means (in
addition to the Company’s right to withhold from any compensation paid to the Participant
by the
Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the
Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to
the Participant

14

 

as a result of the exercise or acquisition of Common Stock under the Stock Award,
provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum
amount of tax required to be withheld by law; or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

11. Adjustments upon Changes in Stock.

     (a) Capitalization Adjustments. If any change is made in the Common Stock subject to the
Plan, or subject to any Stock Award, without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend
in property other than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum
number of securities subject to the Plan pursuant to subsection 4(a) and the maximum number of
securities subject to award to any person pursuant to subsection 5(c), and the outstanding Stock
Awards will be appropriately adjusted in the class(es) and number of securities and price per share
of Common Stock subject to such outstanding Stock Awards. The Board shall make such adjustments,
and its determination shall be final, binding and conclusive. (The conversion of any convertible
securities of the Company shall not be treated as a transaction “without receipt of consideration”
by the Company).

     (b) Change in Control—Dissolution or Liquidation. In the event of a dissolution or
liquidation of the Company, then all outstanding Stock Awards shall terminate immediately prior to
such event.

     (c) Change in Control—Asset Sale, Merger, Consolidation or Reverse Merger. In the event of
(i) a sale, lease or other disposition of all or substantially all of the assets of the Company,
(ii) a merger or consolidation in which the Company is not the surviving corporation or (iii) a
reverse merger in which the Company is the surviving corporation but the shares of Common Stock
outstanding immediately preceding the merger are converted by virtue of the merger into other
property, whether in the form of securities, cash or otherwise, then any surviving corporation or
acquiring corporation shall assume any Stock Awards outstanding under the Plan or shall substitute
similar stock awards (including an award to acquire the same consideration paid to the stockholders
in the transaction described in this subsection 11(c)) for those outstanding under the Plan. In
the event any surviving corporation or acquiring corporation refuses to assume such Stock Awards or
to substitute similar stock awards for those outstanding under the Plan, then with respect to Stock
Awards held by Participants whose Continuous Service has not terminated, the vesting of such Stock
Awards (and, if applicable, the time during which such Stock Awards may be exercised) shall be
accelerated to include an additional twelve (12) months of vesting, and the Stock Awards shall
terminate if not exercised (if applicable) at or prior to such event. With respect to any other
Stock Awards outstanding under the Plan, such Stock Awards shall terminate if not exercised (if
applicable) prior to such event.

15

 

     (d) Change in Control—Termination of Continuous Service.

          (i) If the Continuous Service of a Participant is either involuntarily terminated without
Cause or is voluntarily terminated for a Good Reason on or within twelve (12) months after the date
of a Change in Control under Section 11(c) of the Plan, then the vesting of such Participant’s
Stock Award at the time of the Change in Control (and, if applicable, the time during which such
Stock Award may be exercised) shall be accelerated in full and the Participant’s Options, if any,
subject to this Plan shall immediately become exercisable in full.

          (ii) Any purported voluntarily termination of the Continuous Service of a Participant for Good
Reason shall be communicated by a notice of termination to the Company, and shall state the
specific termination provisions relied upon and set forth in reasonable detail the facts and
circumstances claimed to provide a basis for such termination.

          (iii) If any payment or benefit that the Participant would receive under this Plan when
combined with any other payment or benefit he or she receives pursuant to the termination of his
employment with the Company (collectively, the “Payment”) would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject
to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall
be either (x) the full amount of such Payment or (y) such lesser amount (with cash payments being
reduced before stock compensation) as would result in no portion of the Payment being subject to
the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal,
state and local employment taxes, income taxes, and the Excise Tax, results in the Participant’s
receipt, on an after-tax basis, of the greater amount notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax. Participant shall be solely responsible for the
payment of all personal tax liability that is incurred as a result of the payments and benefits
received under this Plan or other applicable agreements, and Participant will not be reimbursed by
the Company for any such payment.

          (iv) All determinations required to be made under Section 11(d)(iii) shall be made by the
Company’s independent public accountants (the “Accountants”). The Accountants shall provide
detailed supporting calculations both to the Company and the Participant within thirty (30)
business days of the date that the Participant’s employment with the Company terminates or such
earlier time as is requested by the Company. For purposes of making the calculations required by
Section 11(d)(iii), the Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith determinations concerning the application
of the Code. The Company and the Participant shall furnish to the Accountants such information and
documents as the Accountants may reasonably request in order to make a determination under Section
11(d)(iii). The Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section. Any such determination by the Accountants
shall be binding upon the Company and Participant. Within five (5) days after receipt of the

16

 

calculations, the Company shall pay to or distribute to or for the benefit of the Participant such
amounts as are then due to him or her under this Agreement.

          (v) As a result of the uncertainty in the application of Section 280G of the Code at the time
of the initial determination by the Accountants hereunder, it is possible that a Payment or
Payments, as the case may be, will have been made by the Company that should not have been made
(“Overpayment”) or that an additional Payment or Payments, as the case may be, which will not have
been made by the Company could have been made (“Underpayment”), in each case, consistent with the
calculations required to be made hereunder. In the event that the Accountants, based upon the
assertion of the deficiency by the Internal Revenue Service against Participant or the Company that
the Accountant believe has a high probability of success, determine that an Overpayment has been
made, any such overpayment paid or distributed by the Company to or for the benefit of Participant
shall be treated for all purposes as a loan ab initio to Participant that he shall repay to the
Company together with interest at the applicable federal rate provided for in Section 7872(f)(2) of
the Code; provided; however, that no such loan shall be deemed to have been made and no amount
shall be payable by the Participant to the Company if and to the extent such deemed loan and
payment would not either reduce the amount on which the Participant is subject to tax under Section
1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the
Accountants, based upon controlling precedent or other substantial authority, determine that an
Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for
the benefit of the Participant together with interest at the applicable federal rate provided for
in Section 7872(f)(2) of the Code.

     (e) Change in Control—Securities Acquisition. After the Listing Date, in the event of an
acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of the
Exchange Act, or any comparable successor provisions (excluding any employee benefit plan, or
related trust, sponsored or maintained by the Company or an Affiliate) of the beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule)
of securities of the Company representing at least fifty percent (50%) of the combined voting power
entitled to vote in the election of Directors and provided that such acquisition is not a result
of, and does not constitute a transaction described in, subsection 11(c) hereof, then with respect
to Stock Awards held by Participants whose Continuous Service has not terminated, the vesting of
such Stock Awards (and, if applicable, the time during which such Stock Awards may be exercised)
shall be accelerated to include an additional twelve (12) months of vesting.

12. Amendment of the Plan and Stock Awards.

     (a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 11 relating to adjustments upon changes in Common Stock, no
amendment shall be effective unless approved by the stockholders of the Company to the extent
stockholder approval is necessary to satisfy the requirements of Section 422 of the Code, Rule
16b-3 or any Nasdaq or securities exchange listing requirements.

17

 

     (b) Stockholder Approval. The Board may, in its sole discretion, submit any other amendment
to the Plan for stockholder approval, including, but not limited to, amendments to the Plan
intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder
regarding the exclusion of performance-based compensation from the limit on corporate deductibility
of compensation paid to certain executive officers.

     (c) Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible Employees with the
maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

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

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

13. Termination or Suspension of the Plan.

     (a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the
Plan is adopted by the Board or approved by the stockholders of the Company, whichever is earlier.
No Stock Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.

     (b) No Impairment of Rights. Suspension or termination of the Plan shall not impair rights
and obligations under any Stock Award granted while the Plan is in effect except with the written
consent of the Participant.

14. Effective Date of Plan.

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

18

 

15. Choice of Law.

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

****

19exv4w3

 

EXHIBIT 4.3

MOBILEWAY INC.

2000 STOCK OPTION PLAN

adopted by the Board on March 27, 2000

approved by the Shareholders on March 27, 2000

     1. Purpose and Types of Options. This 2000 Stock Option Plan (the “Plan”) is
intended to increase the incentives of, and encourage stock ownership by, officers, directors,
employees, consultants and other independent contractors (including members of the Company’s Board
of Directors who are not employees of the Company) providing services to MobileWay Inc., a Delaware
corporation (the “Company”), or to corporations which are or become parent corporations or
subsidiary corporations of the Company. As used in this Plan, the terms “Parent
corporation” and “Subsidiary corporation” shall have the meanings set forth in Sections
424(e) and (f), respectively, of the Internal Revenue Code of 1986, as amended (“Internal
Revenue Code”). The Plan is intended to provide such officers, directors, employees and
consultants and other independent contractors with a proprietary interest (or to increase their
proprietary interest) in the Company, and to encourage them to continue their employment or
engagement by the Company or any parent or subsidiary of the Company. Options granted pursuant to
the Plan, at the discretion of the Company’s Board of Directors (“Board”), may be either
incentive stock options within the meaning of Section 422 of the Internal Revenue Code, or options
that do not so qualify as incentive stock options and which are referenced herein as non-statutory
stock options. This Plan is intended to be a written compensatory benefit plan within the meaning
of Rule 701 of the Securities Act of 1933, as amended (“Securities Act”).

     2. Stock. The capital stock subject to the Plan shall be shares of the Company’s
authorized but unissued Common Stock (“Common Stock”). Subject to adjustments pursuant to
Section 8 hereof, the maximum aggregate number of shares of Common Stock which may be issued under
the Plan is One Million Nine Hundred Nineteen Thousand and One Hundred (1,919,100), or such lesser
number of shares of Common Stock as permitted under Section 260.140.45 of Title 10 of the
California Code of Regulations. In the event that any outstanding option under the Plan shall
expire by its terms or is otherwise terminated for any reason (or if shares of Common Stock of the
Company which are issued upon exercise of an option granted hereunder are subsequently reacquired
by the Company pursuant to contractual rights of the Company under the particular stock option
agreement), the shares of the Common Stock allocated to the unexercised portion of such option (or
the shares so reacquired by the Company pursuant to the terms of the stock option agreement) shall
again become available to be made subject to options granted under the Plan. Notwithstanding any
other provision of this Plan, the aggregate number of shares of Common Stock subject to outstanding
options granted under this Plan at any given time, plus the aggregate number of shares which have
been issued upon exercise of all options granted under this Plan and which remain outstanding,
shall never be permitted to exceed the maximum number of shares specified above in this Section 2
(subject to adjustments under Section 8).

     3. Administration. The Plan shall be administered by the Board. The interpretation
and construction by the Board of any provision of this Plan, or of any option granted pursuant

1

 

MobileWay Inc.

2000 Stock Option Plan

Page 2

hereto, shall be final, binding and conclusive. No member of the Board shall be liable to the
Company or to any Subsidiary or Parent corporation, or to the holder of any option granted
hereunder, for any action, inaction, determination or interpretation made in good faith with
respect to the Plan or any transaction hereunder. Notwithstanding the foregoing, the Board shall
have the authority to delegate some or all of its duties to administer this Plan and to exercise
its powers hereunder to a committee (“Committee”) appointed by the Board. For
purposes of this Plan, all references herein to “Board” shall be deemed to also refer to any such
Committee. Any Committee charged with administration of the Plan shall have all the powers and
protections provided to the Board under this Plan until the Board shall revoke or restrict such
powers or protections. More specifically, the Board, subject to compliance with the remaining
provisions of this Plan, shall have the following powers and authority (which listing is provided
by way of example and is not intended to be comprehensive or limiting to the extent of powers not
included):

          3.1 Selection of Optionees. To determine the persons providing services to the
Company to whom, and the time or times at which, options to purchase Common Stock of the Company
shall be granted;

          3.2 Number of Option Shares. To determine the number of shares of Common Stock to be
subject to options granted to each such person;

          3.3 Exercise Price. To determine the price to be paid for the shares of Common Stock
upon the exercise of each option;

          3.4 Term and Exercise Schedule. To determine the term, vesting and exercise schedule
of each option;

          3.5 Other Terms of Options. To determine the terms and conditions of each stock
option agreement (which need not be identical) entered into between the Company and any person to
whom the Board determines to grant an option;

          3.6 Interpretation of Plan. To interpret the Plan and to prescribe, amend and rescind
rules and regulations relating to the Plan;

          3.7 Amendment of Options. With the consent of the holder thereof, to modify or amend
any option granted under the Plan; and

          3.8 General Authority. To take such actions and make such determinations deemed
necessary or advisable by the Board for the administration of the Plan, subject to complying with
the Plan and with applicable legal requirements.

     4. Eligibility and Award of Options.

          4.1 Authority to Grant and Eligibility. The Board shall have full and final
authority, in its discretion and at any time and from time to time during the term of this Plan, to
grant or authorize the granting of options to such officers, directors and employees of, and

2

 

MobileWay Inc.

2000 Stock Option Plan

Page 3

consultants and other independent contractors retained by, the Company or its Parent or Subsidiary
corporations as it may select, and to determine the number of shares of Common Stock to be subject
to each option. Any individual who is eligible to receive a stock option under this Plan shall be
eligible to hold more than one option at any given time, in the discretion of the Board. The Board
shall have full and final authority in its discretion to determine, in the case of employees
(including employees that are officers or directors), whether such options shall be incentive stock
options or non-statutory stock options; however, no incentive stock option may be granted to any
person who is not a bona fide employee of the Company or of a Parent or Subsidiary corporation of
the Company. Persons selected by the Board who are prospective employees of, or consultants or
other independent contractors to be retained by, the Company or its Parent or Subsidiary
corporations, including members of the Board, shall be eligible to receive non-statutory stock
options; provided, however, that in the case of such prospective employment or other engagement,
the exercisability of such options shall be subject in each case to such person in fact becoming an
employee or consultant or other independent contractor, as applicable, of the Company or its Parent
or Subsidiary corporations.

          4.2 Certain Restrictions Applicable to Stock Options. No stock option shall be
granted to any person who, at the time such incentive stock option is granted, owns stock
possessing more than ten percent (10%) of the total combined voting power of all classes of
outstanding capital stock of the Company, or of any Parent corporation or Subsidiary corporation of
the Company (a “ten percent holder”), unless the exercise price (as provided in Section 5.1
hereof) is not less than one hundred ten percent (110%) of the fair market value of the Common
Stock on the date the stock option is granted and the period within which the incentive stock
option may be exercised (as provided in Section 5.2 hereof) does not exceed five (5) years from the
date the incentive stock option is granted. In determining stock ownership for purposes of this
Section 4.2, the provisions of Section 422(b)(6)
of the Internal Revenue Code shall control. An employee shall be considered as owning the
voting capital stock owned, directly or indirectly, by or for his or her brothers and sisters,
spouse, ancestors and lineal descendants. Voting capital stock owned, directly or indirectly, by
or for a corporation, partnership, estate or trust shall be considered as being owned
proportionately by or for its shareholders, partners or beneficiaries, as applicable.
Additionally, for purposes of this Section 4.2, outstanding capital stock shall include all capital
stock actually issued and outstanding immediately after the grant of the option to the employee.
Outstanding capital stock shall not include capital stock authorized for issue under outstanding
options held by the employee or by any other person. Additionally, the aggregate fair market value
(determined as of the date an option is granted) of the Common Stock with respect to which
incentive stock options granted are exercisable for the first time by an employee during any one
calendar year (under this Plan and under all other incentive stock option plans of the Company and
of any Parent or Subsidiary corporation) shall not exceed One Hundred Thousand

3

 

MobileWay Inc.

2000 Stock Option Plan

Page 4

Dollars ($100,000).
If the aggregate fair market value (determined as of the date an option is granted) of the Common
Stock with respect to which incentive stock options granted are exercisable for the first time by
an employee during any calendar year exceeds One Hundred Thousand Dollars ($100,000), the options
for the first One Hundred Thousand Dollars ($100,000) worth of shares of Common Stock to become
exercisable in such calendar year shall be incentive stock options and the options for the amount
in excess of One Hundred Thousand Dollars ($100,000) that become exercisable in that calendar year
shall be non-statutory stock options. In the event that the Internal Revenue Code or the
regulations promulgated thereunder are amended after the effective date of the Plan to provide for
a different limit on the fair market value of shares of Common Stock permitted to be subject to
incentive stock options, such different limit shall be automatically incorporated herein and shall
apply to options granted after the effective date of such amendment.

          4.3 Date of Grant. The date on which an option shall be granted shall be stated in
each option agreement and shall be the date of the Board’s authorization of such grant or such
later date as may be set by the Board at the time such grant is authorized.

     5. Terms and Provisions of Option Agreements. Each option granted under the Plan
shall be evidenced by a stock option agreement between the person to whom the option is granted and
the Company. Each such agreement shall be subject to the following terms and conditions, and to
such other terms and conditions not inconsistent herewith as the Board may deem appropriate in each
case:

          5.1 Exercise Price. The price to be paid for each share of Common Stock upon the
exercise of an option shall be determined by the Board at the time the option is granted; provided
however that (i) no non-statutory stock option shall have an exercise price less than eighty-five
percent (85%) of the fair market value of the Common Stock on the date the option is granted; (ii)
no incentive stock
option shall have an exercise price less than one hundred percent (100%) of the fair market
value of the Common Stock on the date the option is granted; and (iii) all options granted to a ten
percent (10%) shareholder shall have the exercise price set as provided in Section 4.2 hereof. For
all purposes of this Plan, the fair market value of the Common Stock on any particular date shall
be determined as follows:

               5.1.1 If such Common Stock is then quoted on the Nasdaq National Market System, its last
reported sale price on the Nasdaq National Market System on the trading day next preceding that
date or, if no such reported sale takes place on the trading day next preceding such date, the
average of its closing bid and asked prices on the Nasdaq National Market System on the trading day
next preceding such date;

               5.1.2 If such Common Stock is publicly traded and is then listed on a national securities
exchange, its last reported sale price on the national securities exchange on which the Common
Stock is then listed on the trading day next preceding that date or, if no such reported sale takes
place on the trading day next preceding such date, the average of its closing bid and asked prices
on the national securities exchange on which the Common Stock is then listed on the trading day
next preceding such date; or

               5.1.3 If none of the foregoing is applicable, by the Board in good faith, with such
determination being based upon past arms’-length sales by the Company of its equity securities and
other factors considered relevant in determining the Company’s fair value.

4

 

MobileWay Inc.

2000 Stock Option Plan

Page 5

Notwithstanding anything to the contrary in this Section 5.1, any Option Agreement may provide for
alternative means of valuation for the purpose of repurchase at fair market value of shares
acquired.

          5.2 Term of Options. The period or periods within which an option may be exercised
shall be determined by the Board at the time the option is granted, but no exercise period shall
exceed ten (10) years from the date the option is granted (or five (5) years in the case of any
stock option granted to a ten percent (10%) shareholder as described in Section 4.2 hereof).

          5.3 Exercisability. Stock options granted under this Plan shall be exercisable at
such future time or times (or may be fully exercisable upon grant), whether or not in installments,
as shall be determined by the Board and provided in the form of stock option agreement, subject,
however, to the requirement that all options granted under this Plan to a person who is not an
officer, director or consultant shall provide a right to exercise that accrues at a rate of at
least twenty percent (20%) of the number of shares subject to the option for each year after the
date of grant (i.e., at a rate so as to become fully exercisable at the end of five (5) years).
Likewise, to the extent that options are immediately exercisable and shares purchased thereunder
have vesting schedules such that the Company is entitled to repurchase at original exercise price a
portion of the shares so
acquired, all such option agreements to a person who is not an officer, director or consultant
of the Company or a Parent or Subsidiary corporation of the Company (unless otherwise provided in
the option agreement) shall provide for the lapsing of such purchase rights at a rate of at least
twenty percent (20%) of the number of shares subject to the option for each year after the date of
grant. Any such repurchase from a person who is not an officer, director or consultant must be
exercised for cash or cancellation of purchase money indebtedness within ninety (90) days of
termination of service (or in the case of securities issued upon exercise after the date of
termination, within ninety (90) days after the date of exercise.) Notwithstanding any other
provisions of this Plan, no option may be exercised after the expiration of ten (10) years from the
date of grant.

          5.4 Method of Payment for Common Stock Upon Exercise. Except as otherwise provided in
the applicable stock option agreement (subject to the limitations of this Plan), the exercise price
for each share of Common Stock purchased under an option shall be paid in full in cash at the time
of purchase (or by check acceptable to the Board). At the discretion of the Board, the stock
option agreement may provide for (or the Board may permit) the exercise price to be paid by one or
more of the following additional alternative methods: (i) the surrender of shares of the Company’s
Common Stock, in proper form for transfer, owned by the person exercising the option and having a
fair market value on the date of exercise equal to the exercise price, provided that such shares
(A) have been outstanding for more than six (6) months and have been paid for within the meaning of
Rule 144 under the Securities Act (and, if such shares were purchased from the Company by use of a
promissory note, such note has been fully paid with respect to such shares) or (B) were obtained by
the optionee in the public market, (ii) to the extent permitted under the applicable provisions of
applicable state law, the delivery by the person exercising the option of a full recourse
promissory note executed by such person, bearing interest at a per annum rate which is not less
than the “test rate” as set by the regulations

5

 

MobileWay Inc.

2000 Stock Option Plan

Page 6

promulgated under Sections 483 or 1274, as
applicable, of the Internal Revenue Code and as in effect on the date of exercise, or (iii) any
combination of cash, shares of Common Stock or promissory notes, so long as the sum of the cash so
paid, plus the fair market value of the shares of Common Stock so surrendered and the principal
amounts of the promissory notes so delivered, is equal to the aggregate exercise price. Without
limiting the generality of the foregoing, the form of option agreement may provide (or the Board
may permit) that the option be exercised through a “net issue” exercise procedure (cash-less
exercise), whereby the optionee may elect to receive shares of the Company’s Common Stock having an
aggregate fair market value at the date of exercise equal to the net value of the portion of the
option so exercised as of the exercise date. For purposes of the foregoing, the net value of any
option (or portion thereof) as of such exercise date shall be equal to the aggregate fair market
value of the shares subject to the option (or portion thereof being exercised) less the aggregate
exercise price of the option (or portion thereof). In such event the Company shall issue to the
optionee a number of shares of the Company’s Common Stock having a fair market value as of the date
of exercise equal to the net value of the option (or portion thereof being exercised). No share of
Common Stock shall be issued under any option until full payment therefor has been made in
accordance with the terms of the stock option
agreement (and in compliance with the Plan). Any promissory note accepted upon the exercise
of an option from a person who is a consultant or other independent contractor retained by the
Company or any Parent or Subsidiary corporation shall be adequately secured by collateral other
than the shares of the Common Stock acquired upon such exercise in accordance with Section 409 of
the California Corporations Code. Notwithstanding the foregoing, an option may not be exercised by
surrender to the Company of shares of the Company’s Common Stock to the extent such surrender of
stock would constitute a violation of the provisions of any law, regulation and/or agreement
restricting the redemption of the Company’s Common Stock. Additionally, if permitted by the form
of stock option agreement, or at the Board’s discretion, any such promissory note may permit the
payment of principal and interest accruing thereunder by surrender of shares of the Company’s
Common Stock, in proper form for transfer, and having a fair market value on the date of payment
and surrender equal to the dollar amount to be applied to principal and accrued interest
thereunder. No promissory note shall be permitted if the exercise of an option using a promissory
note will be in violation of any law.

          5.5 Non-Assignability. No stock option granted under the Plan shall be assignable or
transferable by an optionee except by will or the laws of descent and distribution and shall be
exercisable only by the optionee during his or her lifetime.

          5.6 Termination of Employment Provisions Applicable to Stock Options. Each stock
option agreement shall comply with the following provisions relating to early termination of the
option based upon termination of the optionee’s service to the Company:

               5.6.1 Death. If the optionee’s service with the Company is terminated because of the
death of optionee, any stock option which such optionee holds may be exercised, to the extent it
was exercisable at the date of death, within such period after the date of death as the Board shall
prescribe in the stock option agreement (but not less than six (6) months nor more than twelve (12)
months after death), by the optionee’s representative or by the person entitled thereto under the
optionee’s will or the laws of intestacy. If the option is not so

6

 

MobileWay Inc.

2000 Stock Option Plan

Page 7

exercised in accordance with the
foregoing, it shall terminate upon the expiration of such prescribed period.

               5.6.2 Disability. If the optionee’s employment with the Company is terminated because
of the disability of the optionee, any stock option which the optionee holds may be exercised by
the optionee or the optionee’s estate within such period after the date of termination of
employment resulting from such disability (but not less than six (6) months nor more than twelve
(12) months after termination by reason of disability) as the Board shall prescribe in the stock
option agreement, to the extent such option would otherwise be exercisable on the date of such
termination. If the option is not so exercised in accordance with the foregoing, it shall
terminate upon the expiration of such prescribed period, unless the optionee dies prior thereto, in
which event the optionee shall be treated as though his or her death occurred
on the date of termination resulting from such disability and the provisions of Section 5.6.1
hereof shall apply.

               5.6.3 Cause. If the optionee’s employment is terminated for “cause” as
defined by the terms of the Plan, the option agreement, a contract of employment or other service
contract, or applicable law, any option held by the optionee shall expire on the optionee’s
termination date or at such later time and on such conditions as determined by the Board, in its
sole discretion. In the absence of any other provisions in the option agreement, the term “cause”
shall be defined as the willful breach or habitual neglect of the duties which the optionee is
required to perform under his or her employment or other service agreement with the Company, or any
act of dishonesty, fraud, misrepresentation or other acts of moral turpitude as would prevent the
effective performance of the optionee’s duties.

               5.6.4 Transfer to Related Corporation. In the event that an optionee leaves the
service of the Company to enter the service of any Parent or Subsidiary corporation of the Company,
or if the optionee leaves the service of any such Parent or Subsidiary corporation to enter the
service of the Company or of another Parent or Subsidiary corporation, such optionee shall be
deemed to continue in service of the Company for all purposes of this Plan, and any reference to
service with the Company shall also be deemed to refer to service with any Parent or Subsidiary of
the Company.

               5.6.5 Retirement. If the optionee’s employment is terminated by voluntary retirement
at or after reaching sixty-five (65) years of age, the optionee may, within three (3) months
following such termination, exercise the Option to the extent it was exercisable by the optionee on
the date of such termination unless the optionee dies prior thereto, in which event the optionee
shall be treated as though the optionee had died on the date of retirement and the provisions of
Section 5.6.1 hereof shall apply.

               5.6.6 Other Severance. In the event an optionee of the Company leaves the services of
the Company for any reason other than as set forth above in this Section 5.6, any stock option
which such optionee holds must be exercised, to the extent it was exercisable at the date such
employee left the services of the Company, not later than three (3) months after the date on which
the employee’s employment terminates (or such shorter period as may be

7

 

MobileWay Inc.

2000 Stock Option Plan

Page 8

prescribed in the option
agreement, the minimum specified period being thirty (30) days). The stock option shall terminate
upon the expiration of such prescribed period.

               5.6.7 Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the
exercise of an option within the applicable time periods set forth above is prevented because the
issuance of shares upon such exercise would constitute a violation of any applicable federal, state
or foreign securities law or other law or regulation, the option shall remain exercisable until
three (3) months after the date the optionee is notified by the Company that the option is
exercisable, but in any event no later than the expiration of ten (10) years from the date of
grant.

               5.6.8 Extension if Optionee Subject to Section 16(b). Notwithstanding the foregoing,
if a sale within the applicable time periods set forth in this Section 5.6 of shares acquired upon
the exercise of the option would subject the optionee to liability under Section 16(b) of the
Securities Exchange Act of 1934, as amended, the option shall remain exercisable until the earliest
to occur of (i) the tenth (10th) day following the date on which a sale of such shares by the
optionee would no longer be subject to such liability, (ii) the one hundred and ninetieth (190th)
day after the optionee’s termination of service, or (iii) the option expiration date.

          5.7 All Options Subject to Terms of this Plan. In addition to the provisions
contained in any option agreement granted under this Plan, each such stock option agreement shall
provide that the same is subject to the terms and conditions of this Plan and each optionee shall
be given a copy of this Plan. Further, any terms or conditions contained in any such stock option
agreement granted hereunder which are inconsistent in any respect with the provisions of this Plan
shall be disregarded and void, or shall be deemed amended to the extent necessary to comply with
the provisions of this Plan and the intent of the Board.

          5.8 Other Provisions. Option agreements under the Plan shall contain such other
provisions, including, without limitation: (i) restrictions and conditions upon the exercise of the
option, (ii) rights of first refusal in favor of the Company (or its assignees) applicable to
shares of Common Stock acquired upon exercise of an option which are subsequently proposed to be
transferred by the optionee, (iii) lock-up agreements (applicable in the event of the public
offering of the Common Stock of the Company) restricting an optionee from any sales or other
transfers of option stock for a designated period of time following the effective date of a
registration statement under the Securities Act, (iv) other restrictions on the transferability or
right to retain shares of the Common Stock received upon the exercise of the option including
repurchase rights at original cost based on a vesting schedule, (v) any commitments to pay cash
bonuses, make loans or transfer other property to an optionee upon exercise of any option, and (vi)
restrictions required by federal and applicable state securities laws, all as the Board shall deem
necessary or advisable; provided that no such additional provision shall be inconsistent with any
other term or condition of this Plan or applicable state law and no such additional provision shall
cause any incentive stock option granted pursuant to this Plan to fail to qualify as an incentive
stock option under Section 422 of the Internal Revenue Code. Without limiting the generality of
the foregoing, the Board may provide in the form of stock option agreement that,

8

 

MobileWay Inc.

2000 Stock Option Plan

Page 9

(A) in lieu of an
exercise schedule, the option may immediately be exercisable in full and provide a “vesting
schedule” with respect to the stock so purchased, giving the Company (or its assignees) the right
to repurchase the shares of Common Stock at cost (or some other specified amount) to the extent
such shares have not become vested upon any termination of the optionee’s employment or other
engagement with the Company, which vesting may depend upon or be restated to the attainment of the
time periods, or continued service to the Company pursuant to which the obligation to resell such
shares to the Company shall lapse; (B) optionee’s service or employment with the
Company shall not be deemed to have terminated merely because of a change in the capacity in
which the optionee renders service provided there is no interruption or termination of the
optionee’s service; or (C) an exercise or vesting schedule shall be accelerated upon the
consummation of a “change in control” or similar event or any other event determined advisable by
the Board.

     6. Securities Law and Other Regulatory Requirements. This Plan is intended to comply
with Section 25102(o) of the California Corporations Code. Any provision of this Plan which is
inconsistent with Section 25102(o) shall, without further act or amendment by the Company or the
Board, be reformed to comply with the requirements of Section 25102(o). The Board shall require
any potential optionee, as a condition of the exercise of an option, to represent and establish to
the satisfaction of the Board that all shares of Common Stock to be acquired upon the exercise of
such option will be acquired for investment and not for resale. No shares of Common Stock shall be
issued upon the exercise of any option unless and until: (i) the Company and the optionee have
satisfied all applicable requirements under the Securities Act and the Securities Exchange Act of
1934, as amended, (ii) any applicable listing requirement of any stock exchange on which the
Company’s Common Stock is listed has been satisfied, and (iii) all other applicable provisions of
state and federal law have been satisfied. The Board shall cause such legends to be placed on
certificates evidencing shares of Common Stock issued upon exercise of an option as, in the opinion
of the Company’s counsel, may be required by federal and applicable state securities laws.

     7. Withholding Taxes. The exercise of any option granted under this Plan shall be
conditioned upon the optionee’s payment to the Company of all amounts (in addition to the exercise
price) required to meet federal, state, local or foreign taxes of any kind required by law to be
withheld with respect to shares to be issued on exercise of such option. The Board, in its
discretion, may declare cash bonuses to an optionee to satisfy any such withholding requirements or
may incorporate provisions in the form of stock option agreement allowing (or after grant of the
option may permit, in its discretion) an optionee to satisfy any such withholding obligations, in
whole or in part, by delivery of shares of the Company’s Common Stock already owned by the optionee
and which are not subject to repurchase, forfeiture, vesting or other similar requirements or
restrictions. The fair market value of any such shares used to satisfy such withholding
obligations shall be determined as of the date the amount of tax to be withheld is to be
determined. The Company shall have the right at any time to deduct from payments of any kind
otherwise due to the optionee (whether shares of Common Stock issuable upon exercise of an option,
regular salary, commissions, or otherwise) any federal, state or local taxes of any kind

9

 

MobileWay Inc.

2000 Stock Option Plan

Page 10

required
by law to be withheld with respect to any shares issued upon exercise of options granted under the
Plan.

     8. Adjustments Upon Changes in Capitalization or Merger.

          8.1 Stock Splits and Similar Events; Reclassifications. The number of shares of Common Stock covered by outstanding options granted under this Plan
and the exercise price thereof shall be proportionately adjusted for any increase or decrease in
the number of issued and outstanding shares of Common Stock resulting from a subdivision or
combination of such shares or the payment of a stock dividend (but only on the Common Stock) or a
recapitalization or any other increase or decrease in the number of such outstanding shares of
Common Stock effected without the receipt of consideration by the Company; provided, however, that
the conversion of any convertible securities of the Company shall not be deemed to have been
“effected without receipt of consideration.” In the event that the shares of Common Stock covered
by outstanding options granted under this Plan are reclassified by the Company, other than pursuant
to a transaction described in Section 8.2, then such options shall apply to the appropriate number
of shares of newly classified Common Stock designated by the Board.

          8.2 Mergers and Acquisitions. If the Company shall be a constituent corporation in
any merger or consolidation which results in the holders of the outstanding voting securities of
the Company (determined immediately prior to such merger or consolidation) owning, directly or
indirectly, at least a majority of the beneficial interest in the outstanding voting securities of
the surviving corporation or its Parent corporation (determined immediately after such merger or
consolidation), the options granted under the Plan shall pertain and apply to the securities or
other property to which a holder of the number of shares subject to the unexercised portion of such
option would have been entitled. Any of (i) a dissolution or liquidation of the Company; (ii) a
sale of substantially all of the Company’s business and assets; (iii) the direct or indirect sale
or exchange in a single or series of related transactions by the shareholders of the Company of
more than fifty percent (50%) of the voting stock of the Company which results in the holders of
the outstanding voting securities of the Company (determined immediately prior to such sale or
exchange) owning, directly or indirectly, less than a majority of the beneficial interest in the
outstanding voting securities of the Company; or (iv) a merger or consolidation (in which the
Company is a constituent corporation) which results in the holders of the outstanding voting
securities of the Company (determined immediately prior to such merger or consolidation) owning,
directly or indirectly, less than a majority of the beneficial interest in the outstanding voting
securities of the surviving corporation or its Parent corporation (determined immediately after
such merger or consolidation) will cause options granted under the Plan to terminate, unless (A)
the agreement of such sale, exchange, merger, consolidation or other transaction otherwise
provides, or (B) a sale on the day preceding the scheduled consummation of such event (the “test
date”) of shares acquired upon the exercise of the option would subject the optionee to liability
under Section 16(b) of the Securities Exchange Act of 1934, as amended, in which event the option
shall remain exercisable until the earliest to occur of (I) the tenth (10th) day following the date
on which a sale of such shares by the optionee would no longer be subject to such liability, (II)
the one hundred ninetieth (190th) day after the test date, or (III) the Option
Expiration Date.

10

 

MobileWay Inc.

2000 Stock Option Plan

Page 11

          8.3 Board’s Determination Final and Binding Upon Optionees. The foregoing determinations and adjustments in this Section 8 relating to stock or
securities of the Company shall be made by the Board, whose determination in that respect shall be
final, binding and conclusive. The Company shall give notice of any such adjustment or action to
each optionee; provided, however, that any such adjustment or action shall be effective and binding
for all purposes, whether or not such notice is given or received.

          8.4 No Fractions of Shares. Fractions of shares shall not be issued by the Company.
Instead, such fractions of shares shall either be paid in cash at fair market value or shall be
rounded down to the nearest share, as determined by the Board.

          8.5 No Rights Except as Expressly Stated. Except as hereinabove expressly provided in
this Section 8, no additional rights shall accrue to any optionee by reason of any subdivision or
combination of shares of the capital stock of any class or the payment of any stock dividend or any
other increase or decrease in the number of shares of any class or by reason of any dissolution,
liquidation, merger or consolidation or spin-off of assets or of stock of another corporation, and
any issue by the Company of shares of stock of any class or of securities convertible into shares
of stock of any class shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or exercise price of shares subject to options granted hereunder.

          8.6 No Limitations on Company’s Discretion. The grant of options under this Plan
shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure or to merge or
consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

     9. No Additional Employment Related Rights or Benefits.

          9.1 No Special Employment Rights. Nothing contained in this Plan or in any option
granted hereunder shall confer upon any optionee any right with respect to the continuation of his
or her employment or other engagement by the Company or interfere in any way with the right of the
Company, subject to the terms of any separate employment or consulting agreement to the contrary,
at any time to terminate such employment or consulting or other relationship or to increase or
decrease the compensation of any optionee. Whether an authorized leave of absence, or absence in
military or government service, shall constitute termination of an optionee’s employment or other
engagement shall be determined by the Board.

     9.2 Other Employee Benefits. The amount of any compensation deemed to be received by any optionee as a result of the
exercise of an option or the sale of shares received upon such exercise will not constitute
compensation with respect to which any other employment (or other engagement) related benefits of
such optionee are determined, including, without limitation, benefits under any bonus, pension,
profit-sharing, life insurance or salary continuation plan, except as otherwise specifically
determined by the Board or as expressly provided for in the option agreement. The granting of an
option shall impose no obligation upon the optionee to exercise such option.

11

 

MobileWay Inc.

2000 Stock Option Plan

Page 12

     10. Rights as a Shareholder and Access to Information. No optionee and no person
claiming under or through any such optionee shall be, or have any of the rights or privileges of, a
shareholder of the Company in respect of any of the shares issuable upon the exercise of any option
granted under this Plan, unless and until the option is properly and lawfully exercised and a
certificate representing the shares so purchased is duly issued to the optionee or to his or her
estate. No adjustment shall be made for dividends or any other rights if the record date relating
to such dividend or other right is before the date the optionee became a shareholder. Holders of
options granted under this Plan and purchasers of shares upon the exercise of an option shall be
provided annual financial statements. The Company shall deliver to each optionee during the period
for which he or she has one or more options outstanding, copies of all annual reports and other
information which are provided to all shareholders of the Company, except the Company shall not be
required to deliver such information to key employees whose duties in connection with the Company
assure their access to equivalent information.

     11. Modification, Extension and Renewal of Options. Subject to the limitations of
this Plan, the Board may modify, extend or renew outstanding options granted under the Plan.
Furthermore, the Board may, subject to the other provisions of this Plan, upon the cancellation of
previously granted options having higher per share exercise prices, regrant options at a lower
price; provided, however, that no such modification or cancellation and regrant of an option shall,
without the written consent of the optionee, alter or impair any rights of the optionee under any
option previously granted under the Plan.

     12. Use of Proceeds. The proceeds received from the sale of shares of the Common
Stock upon exercise of options granted under the Plan shall be used for general corporate purposes.

     13. Reservation of Shares. The Company, during the term of this Plan, will at all
times reserve and keep available such number of shares of its Common Stock as shall be sufficient
to satisfy the requirements of the Plan and all options issued hereunder.

     14. Term of Plan.

          14.1 Effective Dates. The Plan became effective when adopted by the Board, but no
stock option granted under the Plan shall become exercisable unless and until the Plan shall have
been approved by the Company’s shareholders by the vote of the holders of a majority of the
outstanding shares of the Company present and entitled to vote at a duly held meeting of the
Company’s shareholders (or by written consent of the holders of the outstanding shares of the
Company entitled to vote) in accordance with the requirements of the Company’s Bylaws and the
relevant state law. If such shareholder approval is not obtained within twelve (12) months after
the date of the Board’s adoption of the Plan, any incentive stock options previously granted under
the Plan shall become non-statutory options and no further incentive stock options shall be
granted. In addition, for purposes of compliance with the Rules of the California Commissioner of
Corporations, Section 260.140.41(i), any stock options, whether incentive stock options or
non-statutory stock options, which are exercised before shareholder approval is obtained, must

12

 

MobileWay Inc.

2000 Stock Option Plan

Page 13

be
rescinded if shareholder approval is not obtained within twelve (12) months before or after the
Plan is adopted and such shares shall not be counted in determining whether such approval is
obtained. Subject to the foregoing limitation, options may be granted under the Plan at any time
after the effective date and before the date fixed for termination of the Plan.

          14.2 Termination. Unless sooner terminated in accordance with Section 15, the Plan
shall terminate upon the earlier of: (i) the close of business on the last business day preceding
the tenth (10th) anniversary of the earlier of (a) the date of the Plan’s adoption by the Board
occurs, or (b) the date of the Plan’s approval by the Company’s shareholders, or (ii) the date on
which all shares available for issuance under the Plan shall have been issued pursuant to options
granted under the Plan and none of such shares shall remain subject to contractual repurchase
rights of the Company pursuant to “vesting” or other similar provisions. If the date of
termination is determined under clause (i) above, then any options outstanding on such date shall
continue to have force and effect in accordance with the provisions of the option agreements
evidencing such options.

     15. Early Termination and Amendment of the Plan. The Board may from time to time
suspend or terminate the Plan or revise or amend it; provided, however, that, without the approval
of the Company’s shareholders at a duly held meeting of the Company’s shareholders by the vote of a
majority of the shares present and entitled to vote (or by written consent of the holders of the
outstanding shares of the Company entitled to vote) in compliance with the requirements of the
Company’s Bylaws and the California Corporations Code, no such action of the Board shall:

          15.1 Increases in Number of Shares Subject to the Plan. Increase the aggregate number of shares of the Common Stock which may be issued upon
exercise of options granted under the Plan (except for adjustments made pursuant to Section 8
hereof);

          15.2 Changes in Eligibility. Change the designation of employees eligible to receive
incentive stock options under the Plan;

          15.3 Plan Duration. Extend the termination date beyond that provided in Section 14.2;

          15.4 Changes not Approved by Legal Counsel. Otherwise amend or modify the Plan (or
outstanding options) under circumstances where shareholder approval is considered necessary in the
opinion of legal counsel to the Company; or

          15.5 Changes to this Section. Amend this Section 15 to defeat its purposes.

     In any event, no termination or amendment of the Plan may adversely affect any then
outstanding option or any unexercised portion thereof, without the consent of the optionee, unless
such termination or amendment is required to enable an option designated as an incentive stock
option to qualify as an incentive stock option or is necessary to comply with any applicable law,
regulation or rule.

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]