Document:

exv10w15

 

    Exhibit 10.15

 

 

    eBay
    Inc.

    

 

    2003
    DEFERRED STOCK UNIT PLAN, AS AMENDED

 

    Initial
    Stockholder Approval on June 26, 2003

    Amended and Restated Effective as of January 10, 2007

    Termination Date: March 17, 2013

 

 

    Table
    of Contents

 

	 	 	 	 	 	 	 	 	 
	
 
	
 
	
 
	
 
	
    Page

	 

	

    ARTICLE I

    

    GENERAL

	
	

    1.1
    

	
	
 
	
    Purpose
    
	
 
	
	
    1
    
	

	
	

    1.2
    

	
	
 
	
    Definitions of Certain Terms
    
	
 
	
	
    1
    
	

	
	

    1.3
    

	
	
 
	
    Administration
    
	
 
	
	
    2
    
	

	
	

    1.4
    

	
	
 
	
    Persons Eligible for Awards
    
	
 
	
	
    2
    
	

	
	

    1.5
    

	
	
 
	
    Types of Awards Under Plan
    
	
 
	
	
    3
    
	

	
	

    1.6
    

	
	
 
	
    Shares of Common Stock Available
    for Awards
    
	
 
	
	
    3
    
	

	
 

	

    ARTICLE II

    

    AWARDS UNDER THE PLAN

	
	

    2.1
    

	
	
 
	
    Agreements Evidencing Awards
    
	
 
	
	
    3
    
	

	
	

    2.2
    

	
	
 
	
    No Rights as a Stockholder
    
	
 
	
	
    4
    
	

	
	

    2.3
    

	
	
 
	
    Grant of Deferred Stock Units
    
	
 
	
	
    4
    
	

	
	

    2.4
    

	
	
 
	
    Grant of Dividend Equivalent Rights
    
	
 
	
	
    4
    
	

	
 

	

    ARTICLE III

    

    MISCELLANEOUS

	
	

    3.1
    

	
	
 
	
    Amendment of the Plan
    
	
 
	
	
    5
    
	

	
	

    3.2
    

	
	
 
	
    Tax Withholding
    
	
 
	
	
    5
    
	

	
	

    3.3
    

	
	
 
	
    Required Consents and Legends
    
	
 
	
	
    5
    
	

	
	

    3.4
    

	
	
 
	
    Nonassignability; No Hedging
    
	
 
	
	
    5
    
	

	
	

    3.5
    

	
	
 
	
    Successor Entity
    
	
 
	
	
    6
    
	

	
	

    3.6
    

	
	
 
	
    Right of Discharge Reserved
    
	
 
	
	
    6
    
	

	
	

    3.7
    

	
	
 
	
    Nature of Payments
    
	
 
	
	
    6
    
	

	
	

    3.8
    

	
	
 
	
    Other Payments or Awards
    
	
 
	
	
    6
    
	

	
	

    3.9
    

	
	
 
	
    Plan Headings
    
	
 
	
	
    6
    
	

	
	

    3.10
    

	
	
 
	
    Termination of Plan
    
	
 
	
	
    6
    
	

	
	

    3.11
    

	
	
 
	
    Governing Law
    
	
 
	
	
    7
    
	

	
	

    3.12
    

	
	
 
	
    Severability; Entire Agreement
    
	
 
	
	
    7
    
	

	
	

    3.13
    

	
	
 
	
    No Third Party Beneficiaries
    
	
 
	
	
    7
    
	

	
	

    3.14
    

	
	
 
	
    Successors and Assigns of eBay
    
	
 
	
	
    7
    
	

	
	

    3.15
    

	
	
 
	
    Date of Adoption
    
	
 
	
	
    7
    
	

    

    i

 

    eBay
    Inc.

    2003 DEFERRED STOCK UNIT PLAN, AS AMENDED

 

    Initial
    Stockholder Approval on June 26, 2003

    Amendment Adopted by the Compensation Committee on
    March 16, 2005

    Termination Date: March 17, 2013

 

    ARTICLE I

    

 

    GENERAL
    

 

    1.1  Purpose

 

    The purpose of the eBay Inc. 2003 Deferred Stock Unit Plan is to
    retain and motivate members of the eBay board of directors and
    such other officers or employees as are selected to participate,
    to compensate them for their contributions to the long-term
    growth and profits of the Company, and to encourage them to
    acquire a proprietary interest in the success of the Company
    including by providing a convenient means for them to acquire
    shares of Common Stock from the Company at fair market value.

 

    1.2  Definitions of Certain Terms

 

    “eBay” means eBay Inc. or a successor entity
    contemplated by Section 3.5.

 

    “Annual Retainer” shall have the meaning set
    forth in Section 1.4.2.

 

    “Award” means an award made pursuant to the
    Plan.

 

    “Award Agreement” means the written document by
    which each Award is evidenced.

 

    “Board” means the Board of Directors of eBay.

 

    “Cash Payment Date” shall have the meaning set
    forth in Section 1.4.2.

 

    “Code” means the Internal Revenue Code of 1986,
    as amended from time to time, and the applicable rulings and
    regulations thereunder.

 

    “Committee” means the committee established
    pursuant to Section 1.3.1.

 

    “Common Stock” means the common stock of eBay,
    par value $0.001 per share.

 

    “Company” means eBay and its subsidiaries.

 

    “Electing Director” shall have the meaning set
    forth in Section 1.4.2.

 

    “Eligibility Date” shall have the meaning set
    forth in Section 1.4.2.

 

    “Equity Restructuring” means a non-reciprocal
    transaction (i.e. a transaction in which the Company does not
    receive consideration or other resources in respect of the
    transaction approximately equal to and in exchange for the
    consideration or resources the Company is relinquishing in such
    transaction) between the Company and its stockholders, such as a
    stock split, spin-off, rights offering, nonrecurring stock
    dividend or recapitalization through a large, nonrecurring cash
    dividend, that affects the shares of Common Stock (or other
    securities of the Company) or the share price of Common Stock
    (or other securities) and causes a change in the per share value
    of the Common Stock underlying outstanding Awards.

 

    “Exchange Act” means the Securities Exchange
    Act of 1934, as amended from time to time, and the applicable
    rules and regulations thereunder.

 

    “Fair Market Value” means, as of any date, the
    value of a share of Common Stock determined as follows:
    (a) if such Common Stock is then quoted on the Nasdaq
    National Market, its closing price on the Nasdaq National Market
    on the date of determination as reported in The Wall Street
    Journal; (b) if such Common Stock is publicly traded
    and is then listed on a national securities exchange other than
    the Nasdaq National Market, its closing price on the date of
    determination on the principal national securities exchange on
    which the Common Stock is listed or admitted to trading as
    reported in The Wall Street Journal; (c) if such
    Common

    

    1

 

    Stock is publicly traded but is not quoted on the Nasdaq
    National Market nor listed or admitted to trading on a national
    securities exchange, the average of the closing bid and asked
    prices on the date of determination as reported in The Wall
    Street Journal; and (d) if none of the foregoing is
    applicable, then the value determined by the Committee in good
    faith.

 

    “New Director” shall have the meaning set forth
    in Section 1.4.1.

 

    “Plan” means the eBay Inc. 2003 Deferred Stock
    Unit Plan, as described herein and as hereafter amended from
    time to time.

 

    1.3  Administration

 

    1.3.1  Except as otherwise provided herein, the Plan
    shall be administered by the Compensation Committee of the Board
    (the “Committee”). The Committee is
    authorized, subject to the provisions of the Plan, to establish
    such rules and regulations as it deems necessary for the proper
    administration of the Plan (including with respect to setting
    terms and conditions of further voluntary deferral of Awards
    beyond the delivery date, which further deferrals shall comply
    with the provisions of Section 409A of the Code) and to
    make such determinations and interpretations and to take such
    action in connection with the Plan and any Award granted
    thereunder as it deems necessary or advisable. All
    determinations and interpretations made by the Committee shall
    be final, binding and conclusive on all grantees and on their
    legal representatives and beneficiaries. The Committee shall
    have the authority, in its absolute discretion, to determine the
    persons who shall receive Awards, the time when Awards shall be
    granted, the terms of such Awards and the number of shares of
    Common Stock, if any, which shall be subject to such Awards.
    Unless otherwise provided in an Award Agreement or as would
    otherwise subject the holder of an Award to an excise tax under
    Section 409A of the Code, the Committee shall have the
    authority to (i) amend any outstanding Award Agreement in
    any respect, whether or not the rights of the grantee of such
    Award are adversely affected, including, without limitation, to
    accelerate the time or times at which the Award becomes vested,
    unrestricted or may be exercised, waive or amend any goals,
    restrictions or conditions set forth in such Award Agreement, or
    impose new goals, restrictions and conditions, or reflect a
    change in the grantee’s circumstances and
    (ii) determine whether, to what extent and under what
    circumstances and method or methods (A) Awards may be
    (1) settled in cash, shares of Common Stock, other
    securities, other Awards or other property or (2) canceled,
    forfeited or suspended, (B) shares of Common Stock, other
    securities, other Awards or other property, and other amounts
    payable with respect to an Award may be deferred at the election
    of the grantee thereof with the consent of the Committee or at
    the election of the Committee and (C) Awards may be settled
    by the Company or any of its designees. Notwithstanding anything
    to the contrary contained herein, the Board may, in its sole
    discretion, at any time and from time to time, grant Awards
    (including grants to members of the Board who are not employees
    of the Company) or administer the Plan, in which case the Board
    shall have all of the authority and responsibility granted to
    the Committee herein.

 

    1.3.2  Actions of the Committee may be taken by the
    vote of a majority of its members. The Committee may allocate
    among its members and delegate to any person who is not a member
    of the Committee any of its administrative responsibilities.

 

    1.4  Persons Eligible for Awards

 

    1.4.1  Awards under the Plan shall be made to each new
    member of the Board upon the later of (i) their election to
    service as a member of the Board after December 31, 2002;
    and (ii) the adoption of this plan by the stockholders (a
    “New Director”).

 

    1.4.2  Awards under the Plan shall be made to Electing
    Directors (as defined below) on the date on which they otherwise
    would be entitled to receive a cash payment (the
    “Cash Payment Date”) in respect of their
    annual retainer for their services on the Board (including, if
    applicable, as “Lead Director”) and, to the extent
    applicable, on any committees thereof (the “Annual
    Retainer”), which annual retainer is payable
    quarterly in arrears. An “Electing
    Director” is any member of the Board who, with
    respect to a particular taxable year has made an election to
    have all of his or her Annual Retainer for services performed in
    such taxable year paid in the form of Awards under the Plan,
    rather than in the form of quarterly cash payments as described
    above. Such election must be in a form approved by the Committee
    and must be delivered to the Committee (or a person

    

    2

 

    designated by the Committee to receive such election) prior to
    the end of the preceding taxable year or as otherwise prescribed
    by law; provided, however, that during the first
    taxable year during which any member of the Board is eligible to
    elect to receive Awards under this Section 1.4.2, such
    election shall be made within thirty days of the
    “Eligibility Date” with respect to
    services to be performed subsequent to the election but during
    such taxable year. With respect to individuals who are members
    of the Board on March 16, 2005, the Eligibility Date is
    March 16, 2005; with respect to individuals who become
    members of the Board after March 16, 2005, the Eligibility
    Date is the date on which such individual becomes a member of
    the Board. Notwithstanding the foregoing, for an election to be
    effective with respect to a quarter during the first taxable
    year in which a member of the Board is eligible to participate
    hereunder, such election shall be made within 30 days of
    the Eligibility Date and prior to the start of such quarter,
    which means that in the case of individuals who are members of
    the Board on March 16, 2005, such election must be made on
    or prior to March 31, 2005 in order for such election to be
    effective with respect to that portion of the Annual Retainer
    earned during the second quarter of 2005.

 

    1.4.3  Awards under the Plan may also be made to such
    officers and employees (including prospective employees) of the
    Company as the Committee may select.

 

    1.5  Types of Awards Under Plan

 

    Awards may be made under the Plan in the form of
    (a) deferred stock units and (b) dividend equivalent
    rights.

 

    1.6  Shares of Common Stock Available for
    Awards

 

    1.6.1  Common Stock Subject to the
    Plan.  Subject to adjustment as provided in
    Section 1.6.2 hereof, the maximum number of shares
    underlying deferred stock units that may be reserved for
    issuance are
    4,000,0001
    shares of Common Stock. Such shares of Common Stock may, in the
    discretion of the Committee, be either authorized but unissued
    shares or shares previously issued and reacquired by eBay. If
    any Award shall expire, terminate or otherwise lapse, in whole
    or in part, any shares of Common Stock subject to such Award (or
    portion thereof) shall again be available for issuance under the
    Plan.

 

    1.6.2  Capitalization
    Adjustments.  In the event that any dividend
    or other distribution, reorganization, merger, consolidation,
    combination, repurchase, or exchange of Common Stock or other
    securities of the Company, or other change in the corporate
    structure of the Company affecting the Common Stock (other than
    an Equity Restructuring) occurs such that an adjustment is
    determined by the Committee (in its sole discretion) to be
    appropriate in order to prevent dilution or enlargement of the
    benefits or potential benefits intended to be made available
    under the Plan, then the Committee shall, in such manner as it
    may deem equitable, adjust the number and class of Common Stock
    which may be delivered under the Plan, the number of shares of
    Common Stock covered by each outstanding Award, and the
    numerical limits of Section 1.6.1.

 

    1.6.3  Equity Restructuring
    Adjustments.  In connection with the
    occurrence of any Equity Restructuring, and notwithstanding
    anything to the contrary in Section 1.6.2 the number and
    type of securities subject to each outstanding Award and the
    grant price thereof, if applicable, will be equitably adjusted
    by the Committee. The adjustments provided under this
    Section 1.6.3 shall be nondiscretionary and shall be final
    and binding on the affected Participant and the Company.

 

    ARTICLE II

    

 

    AWARDS UNDER
    THE PLAN
    

 

    2.1  Agreements Evidencing Awards

 

    Each Award granted under the Plan shall be evidenced by a
    written document which shall contain such provisions and
    conditions as the Committee deems appropriate. The Committee may
    grant Awards in tandem with or in substitution for any other
    Award or Awards granted under this Plan or any award granted
    under any

 

 

    1  Denotes
    that such share number reflects the stock splits of eBay’s
    common stock occurring in
    8/03 and in
    02/05.

    

    3

 

    other plan of the Company. By accepting an Award pursuant to the
    Plan, a grantee agrees that the Award shall be subject to all of
    the terms and provisions of the Plan and the applicable Award
    Agreement.

 

    2.2  No Rights as a Stockholder

 

    No grantee of an Award shall have any of the rights of a
    stockholder of eBay with respect to shares of Common Stock
    subject to such Award until the delivery of such shares. Except
    as otherwise provided in Section 1.6.2, no adjustments
    shall be made for dividends, distributions or other rights
    (whether ordinary or extraordinary, and whether in cash, Common
    Stock, other securities or other property) for which the record
    date is prior to the date such shares are delivered.

 

    2.3  Grant of Deferred Stock Units

 

    2.3.1  Each New Director shall receive a one-time
    grant of deferred stock units equal to the result of dividing
    (i) $150,000 by (ii) the Fair Market Value on the date
    of grant, rounded down to the nearest whole share. A grantee of
    a deferred stock unit will have only the rights of a general
    unsecured creditor of eBay until delivery of shares of Common
    Stock, cash or other securities or property is made as specified
    in the applicable Award Agreement. As soon as practicable
    following the delivery date specified in the Award Agreement,
    the grantee of each deferred stock unit not previously forfeited
    or terminated shall receive one share of Common Stock, or cash,
    securities or other property equal in value to the Fair Market
    Value of a share of Common Stock on the delivery date specified
    in the Award Agreement or a combination thereof, as specified by
    the Committee.

 

    2.3.2  On each Cash Payment Date with respect to a
    taxable year in which a member of the Board is an Electing
    Director pursuant to Section 1.4.2, such Electing Director
    shall receive a grant of deferred stock units equal to the
    result of dividing (i) the amount of cash the Electing
    Director would have received on such Cash Payment Date if he or
    she had not elected to become an Electing Director by
    (ii) the Fair Market Value on the date of grant, rounded
    down to the nearest whole share. A grantee of a deferred stock
    unit will have only the rights of a general unsecured creditor
    of eBay until delivery of shares of Common Stock, cash or other
    securities or property is made as specified in the applicable
    Award Agreement. As soon as practicable following the delivery
    date specified in the Award Agreement, the grantee of each
    deferred stock unit not previously forfeited or terminated shall
    receive one share of Common Stock, or cash, securities or other
    property equal in value to the Fair Market Value of a share of
    Common Stock on the delivery date specified in the Award
    Agreement or a combination thereof, as specified by the
    Committee.

 

    2.3.3  The Committee may grant deferred stock units in
    such amounts and subject to such terms and conditions as the
    Committee shall determine to such other persons eligible to be
    selected for an Award pursuant to Section 1.4.3.

 

    2.4  Grant of Dividend Equivalent Rights

 

    The Committee may include in the Award Agreement with respect to
    any Award a dividend equivalent right entitling the grantee to
    receive amounts equal to all or any portion of the dividends
    that would be paid on the shares of Common Stock covered by such
    Award if such shares had been delivered pursuant to such Award.
    The grantee of a dividend equivalent right will have only the
    rights of a general unsecured creditor of eBay until payment of
    such amounts is made as specified in the applicable Award
    Agreement. In the event such a provision is included in an Award
    Agreement, the Committee shall determine whether such payments
    shall be made in cash, in shares of Common Stock or in another
    form, whether they shall be conditioned upon the exercise of the
    Award to which they relate, the time or times at which they
    shall be made, and such other terms and conditions as the
    Committee shall deem appropriate.

    

    4

 

 

    ARTICLE III

    

 

    MISCELLANEOUS
    

 

    3.1  Amendment of the Plan

 

    The Committee may from time to time suspend, discontinue, revise
    or amend the Plan in any respect whatsoever; provided, however,
    that such action shall not materially adversely affect the
    rights and obligations of a grantee under an Award previously
    granted.

 

    3.2  Tax Withholding

 

    As a condition to the delivery of any shares of Common Stock
    pursuant to any Award or the lifting or lapse of restrictions on
    any Award, or in connection with any other event that gives rise
    to a federal or other governmental tax withholding obligation on
    the part of the Company relating to an Award (including, without
    limitation, FICA tax), (a) the Company may deduct or
    withhold (or cause to be deducted or withheld) from any payment
    or distribution to a grantee whether or not pursuant to the
    Plan; (b) the Committee shall be entitled to require that
    the grantee remit cash to the Company (through payroll deduction
    or otherwise), in each case in an amount sufficient in the
    opinion of the Company to satisfy such withholding obligation;
    or (c) if the event giving rise to the withholding
    obligation involves a transfer of shares of Common Stock, then
    at the discretion of the Committee, the grantee may satisfy the
    withholding obligation by electing to have the Company withhold
    shares of Common Stock (not in excess of the statutory minimum
    rate) or by tendering previously owned shares of Common Stock,
    in each case having a Fair Market Value equal to the amount of
    tax to be withheld (or by any other mechanism as may be required
    or appropriate to conform with local tax and other rules). For
    this purpose, Fair Market Value shall be determined as of the
    date on which the amount of tax to be withheld is determined
    (and the Company may cause any fractional share amount to be
    settled in cash).

 

    3.3  Required Consents and Legends

 

    3.3.1  If the Committee shall at any time determine
    that any consent (as hereinafter defined) is necessary or
    desirable as a condition of, or in connection with, the granting
    of any Award, the delivery of shares of Common Stock or the
    delivery of any cash, securities or other property under the
    Plan, or the taking of any other action thereunder (each such
    action being hereinafter referred to as a “plan
    action”), then such plan action shall not be taken, in
    whole or in part, unless and until such consent shall have been
    effected or obtained to the full satisfaction of the Committee.
    The Committee may direct that any certificate evidencing shares
    delivered pursuant to the Plan shall bear a legend setting forth
    such restrictions on transferability as the Committee may
    determine to be necessary or desirable, and may advise the
    transfer agent to place a stop transfer order against any
    legended shares.

 

    3.3.2  By accepting an Award, each grantee expressly
    provides consent to the items described in Section 3.3.3
    below.

 

    3.3.3  The term “consent” as used in this
    Section 3.3 with respect to any plan action includes
    (a) any and all listings, registrations or qualifications
    in respect thereof upon any securities exchange or under any
    federal, state, or local law, or law, rule or regulation of a
    jurisdiction outside the United States, (b) any and all
    written agreements and representations by the grantee with
    respect to the disposition of the shares, or with respect to any
    other matter, which the Committee may deem necessary or
    desirable to comply with the terms of any such listing,
    registration or qualification or to obtain an exemption from the
    requirement that any such listing, qualification or registration
    be made, (c) any and all other consents, clearances and
    approvals in respect of a plan action by any governmental or
    other regulatory body or any stock exchange or self-regulatory
    agency and (d) any and all consents required by the
    Committee. Nothing herein shall require eBay to list, register
    or qualify shares of Common Stock on any securities exchange.

 

    3.4  Nonassignability; No Hedging

 

    Except to the extent otherwise expressly provided in the
    applicable Award Agreement or determined by the Committee, no
    Award (or any rights and obligations thereunder) granted to any
    person under the Plan may be sold, exchanged, transferred,
    assigned, pledged, hypothecated or otherwise disposed of or
    hedged, in any

    

    5

 

    manner (including through the use of any cash-settled
    instrument), whether voluntarily or involuntarily and whether by
    operation of law or otherwise, other than by will or by the laws
    of descent and distribution. Any sale, exchange, transfer,
    assignment, pledge, hypothecation, or other disposition in
    violation of the provisions of this Section 3.4 shall be
    null and void and any Award which is hedged in any manner shall
    immediately be forfeited. All of the terms and conditions of
    this Plan and the Award Agreements shall be binding upon any
    permitted successors and assigns.

 

    3.5  Successor Entity

 

    Unless otherwise provided in the applicable Award Agreement and
    except as otherwise determined by the Committee, in the event of
    a merger, consolidation, mandatory share exchange or other
    similar business combination of eBay with or into any other
    entity (“successor entity”) or any transaction in
    which another person or entity acquires all of the issued and
    outstanding Common Stock of eBay, or all or substantially all of
    the assets of eBay, outstanding Awards may be assumed or a
    substantially equivalent award may be substituted by such
    successor entity or a parent or subsidiary of such successor
    entity.

 

    3.6  Right of Discharge Reserved

 

    Nothing in the Plan or in any Award Agreement shall confer upon
    any grantee the right to continued service as a member of the
    Board or any committee thereof or to future compensation as a
    member of the Board or any committee thereof or affect any right
    which the Company or Board may have to terminate such service.

 

    3.7  Nature of Payments

 

    3.7.1  Any and all grants of Awards and deliveries of
    Common Stock, cash, securities or other property under the Plan
    shall be in consideration of services performed or to be
    performed for the Company by the grantee. Awards under the Plan
    may, in the discretion of the Committee, be made in substitution
    in whole or in part for cash or other compensation otherwise
    payable to a participant in the Plan. Only whole shares of
    Common Stock shall be delivered under the Plan. Awards shall, to
    the extent reasonably practicable, be aggregated in order to
    eliminate any fractional shares. Fractional shares shall be
    rounded down to the nearest whole share and any such fractional
    shares shall be forfeited.

 

    3.7.2  All such grants and deliveries shall constitute
    a special discretionary incentive payment to the grantee and
    shall not be required to be taken into account in computing the
    amount of salary or compensation of the grantee for the purpose
    of determining any contributions to or any benefits under any
    pension, retirement, profit-sharing, bonus, life insurance,
    severance or other benefit plan of the Company or under any
    agreement with the grantee, unless the Company specifically
    provides otherwise.

 

    3.8  Other Payments or Awards

 

    Nothing contained in the Plan shall be deemed in any way to
    limit or restrict the Company from making any award or payment
    to any person under any other plan, arrangement or
    understanding, whether now existing or hereafter in effect.

 

    3.9  Plan Headings

 

    The headings in this Plan are for the purpose of convenience
    only and are not intended to define or limit the construction of
    the provisions hereof.

 

    3.10  Termination of Plan

 

    The Committee reserves the right to terminate the Plan at any
    time; provided, however, that in any case, the Plan shall
    terminate on March 17, 2013, and provided further,
    that all Awards made under the Plan prior to its termination
    shall remain in effect until such Awards have been satisfied or
    terminated in accordance with the terms and provisions of the
    Plan and the applicable Award Agreements.

    

    6

 

 

    3.11  Governing Law

 

    THIS PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
    WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO
    PRINCIPLES OF CONFLICT OF LAWS.

 

    3.12  Severability; Entire Agreement

 

    If any of the provisions of this Plan or any Award Agreement is
    finally held to be invalid, illegal or unenforceable (whether in
    whole or in part), such provision shall be deemed modified to
    the extent, but only to the extent, of such invalidity,
    illegality or unenforceability and the remaining provisions
    shall not be affected thereby; provided, that if any of
    such provisions is finally held to be invalid, illegal, or
    unenforceable because it exceeds the maximum scope determined to
    be acceptable to permit such provision to be enforceable, such
    provision shall be deemed to be modified to the minimum extent
    necessary to modify such scope in order to make such provision
    enforceable hereunder. The Plan and any Award Agreements contain
    the entire agreement of the parties with respect to the subject
    matter thereof and supersede all prior agreements, promises,
    covenants, arrangements, communications, representations and
    warranties between them, whether written or oral with respect to
    the subject matter thereof.

 

    3.13  No Third Party Beneficiaries

 

    Except as expressly provided therein, neither the Plan nor any
    Award Agreement shall confer on any person other than the
    Company and the grantee of any Award any rights or remedies
    thereunder.

 

    3.14  Successors and Assigns of eBay

 

    The terms of this Plan shall be binding upon and inure to the
    benefit of eBay and any successor entity contemplated by
    Section 3.5.

 

    3.15  Date of Adoption

 

    The Plan was adopted on March 18, 2003 by the Committee and
    was amended by the Committee on March 16, 2005 to provide a
    convenient means for members of the eBay board of directors to
    acquire shares of Common Stock from the Company at fair market
    value.

    

    7exv4w1

 

Exhibit 4.1

Entone Technologies, Inc.

2003 Stock Plan

Adopted on October 10, 2003

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	SECTION 1. ESTABLISHMENT AND PURPOSE	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2. ADMINISTRATION	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	(a)          Committees of the Board of Directors
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Authority of the Board of Directors
	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 3. ELIGIBILITY	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	(a)          General Rule
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Ten-Percent Stockholders
	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 4. STOCK SUBJECT TO PLAN	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	(a)          Basic Limitation
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Additional Shares
	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	(a)          Stock Purchase Agreement
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Duration of Offers and Nontransferability of Rights
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	(c)          Purchase Price
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	(d)          Withholding Taxes
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	(e)          Restrictions on Transfer of Shares and Minimum Vesting
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	(f)          Change in Control
	 	 	2	 
	 
	 	 	 	 	 	 
	SECTION 6. TERMS AND CONDITIONS OF OPTIONS	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	(a)          Stock Option Agreement
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Number of Shares
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	(c)          Exercise Price
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	(d)          Exercisability
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	(e)          Change in Control
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	(f)          Basic Term
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	(g)          Termination of Service (Except by Death)
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	(h)          Leaves of Absence
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	(i)          Death of Optionee
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	(j)          Restrictions on Transfer of Shares and Minimum Vesting
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	(k)          Transferability of Options
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	(l)          Withholding Taxes
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	(m)          No Rights as a Stockholder
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	(n)          Modification, Extension and Assumption of Options
	 	 	5	 
	 
	 	 	 	 	 	 
	SECTION 7. PAYMENT FOR SHARES	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	(a)          General Rule
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Surrender of Stock
	 	 	5	 

 

 

	 	 	 	 	 	 	 
	 

	 	(c)          Services Rendered
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	(d)          Promissory Note
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	(e)          Exercise/Sale
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	(f)          Exercise/Pledge
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	(g)          Stock Exchange
	 	 	5	 
	 
	 	 	 	 	 	 
	SECTION 8. ADJUSTMENT OF SHARES	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	(a)          General
	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Repurchase of Shares Upon Termination of Service
	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	(c)          Reservation of Rights
	 	 	6	 
	 
	 	 	 	 	 	 
	SECTION 9. SECURITIES LAW REQUIREMENTS	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	(a)          General
	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Financial Reports
	 	 	6	 
	 
	 	 	 	 	 	 
	SECTION 10. NO RETENTION RIGHTS	 	 	6	 
	 
	 	 	 	 	 	 
	SECTION 11. DURATION AND AMENDMENTS	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	(a)          Term of the Plan
	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	(b)          Right to Amend or Terminate the Plan
	 	 	7	 
	 
	 	 	 	 	 	 
	 

	 	(c)          Effect of Amendment or Termination
	 	 	7	 
	 
	 	 	 	 	 	 
	SECTION 12. DEFINITIONS	 	 	7	 

 

 

Entone Technologies, Inc. 2003 Stock Plan

SECTION 1. ESTABLISHMENT AND PURPOSE.

          The purpose of the Plan is to offer selected persons an opportunity to acquire a proprietary
interest in the success of the Company, or to increase such interest, by purchasing Shares of the
Company’s Stock. The Plan provides both for the direct award or sale of Shares and for the grant
of Options to purchase Shares. Options granted under the Plan may include Nonstatutory Options as
well as ISOs intended to qualify under Section 422 of the Code.

          Capitalized terms are defined in Section 12.

SECTION 2. ADMINISTRATION.

          (a) Committees of the Board of Directors. The Plan may be administered by one or more
Committees. Each Committee shall consist of one or more members of the Board of Directors who have
been appointed by the Board of Directors. Each Committee shall have such authority and be
responsible for such functions as the Board of Directors has assigned to it. If no Committee has
been appointed, the entire Board of Directors shall administer the Plan. Any reference to the
Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom
the Board of Directors has assigned a particular function.

          (b) Authority of the Board of Directors. Subject to the provisions of the Plan, the Board of
Directors shall have full authority and discretion to take any actions it deems necessary or
advisable for the administration of the Plan. All decisions, interpretations and other actions of
the Board of Directors shall be final and binding on all Purchasers, all Optionees and all persons
deriving their rights from a Purchaser or Optionee.

SECTION 3. ELIGIBILITY.

          (a) General Rule. Only Employees, Outside Directors and Consultants shall be eligible for the
grant of Nonstatutory Options or the direct award or sale of Shares. Only Employees shall be
eligible for the grant of ISOs.

          (b) Ten-Percent Stockholders. A person who owns more than 10% of the total combined voting
power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries
shall not be eligible for designation as an Optionee or Purchaser unless (i) the Exercise Price is
at least 110% of the Fair Market Value of a Share on the date of grant, (ii) the Purchase Price (if
any) is at least 100% of the Fair Market Value of a Share and (iii) in the case of an ISO, such ISO
by its terms is not exercisable after the expiration of five years from the date of grant. For
purposes of this Subsection (b), in determining stock ownership, the attribution rules of Section
424(d) of the Code shall be applied.

SECTION 4. STOCK SUBJECT TO PLAN.

          (a) Basic Limitation. Not more than 2,920,000 Shares may be issued under the Plan (subject to
Subsection (b) below and Section 8). The number of Shares that are subject to Options or other
rights outstanding at any time under the Plan shall not exceed the number of Shares that then
remain available for issuance under the Plan. The Company, during the term of the Plan, shall at
all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan.
Shares offered under the Plan may be authorized but unissued Shares or treasury Shares.

          (b) Additional Shares. In the event that Shares previously issued under the Plan are
reacquired by the Company pursuant to a forfeiture provision, right of repurchase or right of first
refusal, such Shares shall be added to the number of Shares then available for issuance under the
Plan. However, the aggregate

1

 

number of Shares issued upon the exercise of ISOs (including Shares reacquired by the Company)
shall in no event exceed 200% of the number specified in Subsection (a) above. In the event that
an outstanding Option or other right for any reason expires or is canceled, the Shares allocable to
the unexercised portion of such Option or other right shall not reduce the number of Shares
available for issuance under the Plan.

SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES.

          (a) Stock Purchase Agreement. Each award or sale of Shares under the Plan (other than upon
exercise of an Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser and
the Company. Such award or sale shall be subject to all applicable terms and conditions of the
Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan
and which the Board of Directors deems appropriate for inclusion in a Stock Purchase Agreement.
The provisions of the various Stock Purchase Agreements entered into under the Plan need not be
identical.

          (b) Duration of Offers and Nontransferability of Rights. Any right to acquire Shares under
the Plan (other than an Option) shall automatically expire if not exercised by the Purchaser within
30 days after the grant of such right was communicated to the Purchaser by the Company. Such right
shall not be transferable and shall be exercisable only by the Purchaser to whom such right was
granted.

          (c) Purchase Price. Subject to Section 3(b), the Purchase Price of each Share to be offered
under the Plan shall not be less than the lesser of (i) an amount equal to 85% of the Fair Market
Value of a Share of the Company’s Common Stock at the time the right is granted, or (ii) an amount
which, under the terms of the grant, may not be less than 85% of the Fair Market Value of a Share
of the Company’s Common Stock at the time the right is exercised. Otherwise, the Board of
Directors shall determine the Purchase Price at its sole discretion. The Purchase Price shall be
payable in a form described in Section 7.

          (d) Withholding Taxes. As a condition to the purchase of Shares, the Purchaser shall make
such arrangements as the Board of Directors may require for the satisfaction of any federal, state,
local or foreign withholding tax obligations that may arise in connection with such purchase.

          (e) Restrictions on Transfer of Shares and Minimum Vesting. Any Shares awarded or sold under
the Plan shall be subject to such special forfeiture conditions, rights of repurchase, rights of
first refusal and other transfer restrictions as the Board of Directors may determine. Such
restrictions shall be set forth in the applicable Stock Purchase Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally. In the case of a
Purchaser who is not an officer of the Company, an Outside Director or a Consultant:

     (i) Any right to repurchase the Purchaser’s Shares at the original Purchase
Price (if any) upon termination of the Purchaser’s Service shall lapse at least as
rapidly as 20% per year over the five-year period commencing on the date of the
award or sale of the Shares;

     (ii) Any such right may be exercised only for cash or for cancellation of
indebtedness incurred in purchasing the Shares; and

     (iii) Any such right may be exercised only within 90 days after the termination
of the Purchaser’s Service.

          (f) Change in Control. The Change in Control provisions for the award or sale of Shares are
set forth in the Stock Purchase Agreements.

SECTION 6. TERMS AND CONDITIONS OF OPTIONS.

          (a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a
Stock Option Agreement between the Optionee and the Company. The Option shall be subject to all

2

 

applicable terms and conditions of the Plan and may be subject to any other terms and
conditions which are not inconsistent with the Plan and which the Board of Directors deems
appropriate for inclusion in a Stock Option Agreement. The provisions of the various Stock Option
Agreements entered into under the Plan need not be identical.

          (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are
subject to the Option and shall provide for the adjustment of such number in accordance with
Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a
Nonstatutory Option.

          (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The
Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the
date of grant, and a higher percentage may be required by Section 3(b). The Exercise Price of a
Nonstatutory Option shall not be less than 85% of the Fair Market Value of a Share on the date of
grant, and a higher percentage may be required by Section 3(b). Subject to the preceding two
sentences, the Exercise Price under any Option shall be determined by the Board of Directors at its
sole discretion. The Exercise Price shall be payable in a form described in Section 7.

          (d) Exercisability. Each Stock Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable. No Option shall be exercisable unless the
Optionee has delivered an executed copy of the Stock Option Agreement to the Company. In the case
of an Optionee who is not an officer of the Company, an Outside Director or a Consultant, an Option
shall become exercisable at least as rapidly as 20% per year over the five-year period commencing
on the date of grant. Subject to the preceding sentence, the Board of Directors shall determine
the exercisability provisions of the Stock Option Agreement at its sole discretion.

          (e) Change in Control. If the Company undergoes a Change in Control, then all unvested shares
not assumed by the continuing or surviving entity shall accelerate and become vested shares as of
the date such Change in Control is consummated.

          (f) Basic Term. The Stock Option Agreement shall specify the term of the Option. The term
shall not exceed 10 years from the date of grant, and a shorter term may be required by Section
3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion shall
determine when an Option is to expire.

          (g) Termination of Service (Except by Death). If an Optionee’s Service terminates for any
reason other than the Optionee’s death, then the Optionee’s Options shall expire on the earliest of
the following occasions:

     (i) The expiration date determined pursuant to Subsection (f) above;

     (ii) The date three months after the termination of the Optionee’s Service for
any reason other than Disability, or such later date as the Board of Directors may
determine; or

     (iii) The date six months after the termination of the Optionee’s Service by
reason of Disability, or such later date as the Board of Directors may determine.

The Optionee may exercise all or part of the Optionee’s Options at any time before the expiration
of such Options under the preceding sentence, but only to the extent that such Options had become
exercisable before the Optionee’s Service terminated (or became exercisable as a result of the
termination) and the underlying Shares had vested before the Optionee’s Service terminated (or
vested as a result of the termination). The balance of such Options shall lapse when the
Optionee’s Service terminates. In the event that the Optionee dies after the termination of the
Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options
may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate
or by any person who has acquired such Options directly from the Optionee by beneficiary
designation, bequest or inheritance, but only to the extent that such Options had become
exercisable before the Optionee’s Service terminated (or became exercisable as a

3

 

result of the termination) and the underlying Shares had vested before the Optionee’s Service
terminated (or vested as a result of the termination).

          (h) Leaves of Absence. For purposes of Subsection (g) above, Service shall be deemed to
continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the
Company in writing and if continued crediting of Service for this purpose is expressly required by
the terms of such leave or by applicable law (as determined by the Company).

          (i) Death of Optionee. If an Optionee dies while the Optionee is in Service, then the
Optionee’s Options shall expire on the earlier of the following dates:

     (i) The expiration date determined pursuant to Subsection (f) above; or

     (ii) The date 12 months after the Optionee’s death, or such later date as the
Board of Directors may determine.

All or part of the Optionee’s Options may be exercised at any time before the expiration of such
Options under the preceding sentence by the executors or administrators of the Optionee’s estate or
by any person who has acquired such Options directly from the Optionee by beneficiary designation,
bequest or inheritance, but only to the extent that such Options had become exercisable before the
Optionee’s death (or became exercisable as a result of the death) and the underlying Shares had
vested before the Optionee’s death (or vested as a result of the Optionee’s death). The balance of
such Options shall lapse when the Optionee dies.

          (j) Restrictions on Transfer of Shares and Minimum Vesting. Any Shares issued upon exercise
of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights
of first refusal and other transfer restrictions as the Board of Directors may determine. Such
restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally. In the case of an
Optionee who is not an officer of the Company, an Outside Director or a Consultant:

     (i) Any right to repurchase the Optionee’s Shares at the original Exercise
Price upon termination of the Optionee’s Service shall lapse at least as rapidly as
20% per year over the five-year period commencing on the date of the option grant;

     (ii) Any such right may be exercised only for cash or for cancellation of
indebtedness incurred in purchasing the Shares; and

     (iii) Any such right may be exercised only within 90 days after the later of
(A) the termination of the Optionee’s Service or (B) the date of the option
exercise.

          (k) Transferability of Options. An Option shall be transferable by the Optionee only by (i) a
beneficiary designation, (ii) a will or (iii) the laws of descent and distribution, except as
provided in the next sentence. If the applicable Stock Option Agreement so provides, an NSO shall
also be transferable by the Optionee by (i) a gift to a member of the Optionee’s Immediate Family
or (ii) a gift to an inter vivos or testamentary trust in which members of the Optionee’s Immediate
Family have a beneficial interest of more than 50% and which provides that such NSO is to be
transferred to the beneficiaries upon the Optionee’s death. An ISO may be exercised during the
lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal
representative.

          (l) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make
such arrangements as the Board of Directors may require for the satisfaction of any federal, state,
local or foreign withholding tax obligations that may arise in connection with such exercise. The
Optionee shall also make such arrangements as the Board of Directors may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in
connection with the disposition of Shares acquired by exercising an Option.

4

 

          (m) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no
rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such
person becomes entitled to receive such Shares by filing a notice of exercise and paying the
Exercise Price pursuant to the terms of such Option.

          (n) Modification, Extension and Assumption of Options. Within the limitations of the Plan,
the Board of Directors may modify, extend or assume outstanding Options or may accept the
cancellation of outstanding Options (whether granted by the Company or another issuer) in return
for the grant of new Options for the same or a different number of Shares and at the same or a
different Exercise Price. The foregoing notwithstanding, no modification of an Option shall,
without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s
obligations under such Option.

SECTION 7. PAYMENT FOR SHARES.

          (a) General Rule. The entire Purchase Price or Exercise Price of Shares issued under the Plan
shall be payable in cash or cash equivalents at the time when such Shares are purchased, except as
otherwise provided in this Section 7.

          (b) Surrender of Stock. To the extent that a Stock Option Agreement so provides, all or any
part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares
that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good
form for transfer and shall be valued at their Fair Market Value on the date when the Option is
exercised. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of
the Exercise Price if such action would cause the Company to recognize compensation expense (or
additional compensation expense) with respect to the Option for financial reporting purposes.

          (c) Services Rendered. At the discretion of the Board of Directors, Shares may be awarded
under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior
to the award.

          (d) Promissory Note. To the extent that a Stock Option Agreement or Stock Purchase Agreement
so provides, all or a portion of the Exercise Price or Purchase Price (as the case may be) of
Shares issued under the Plan may be paid with a full-recourse promissory note. However, the par
value of the Shares, if newly issued, shall be paid in cash or cash equivalents. The Shares shall
be pledged as security for payment of the principal amount of the promissory note and interest
thereon. The interest rate payable under the terms of the promissory note shall not be less than
the minimum rate (if any) required to avoid the imputation of additional interest under the Code.
Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify the term,
interest rate, amortization requirements (if any) and other provisions of such note.

          (e) Exercise/Sale. To the extent that a Stock Option Agreement so provides, and if Stock is
publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the
Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares
and to deliver all or part of the sales proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes.

          (f) Exercise/Pledge. To the extent that a Stock Option Agreement so provides, and if Stock is
publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the
Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by
the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company
in payment of all or part of the Exercise Price and any withholding taxes.

          (g) Stock Exchange. At the discretion of the Board of Directors, Shares may be awarded under
the Plan in exchange for securities of other entities.

5

 

SECTION 8. ADJUSTMENT OF SHARES.

          (a) General. In the event of a subdivision of the outstanding Stock, a declaration of a
dividend payable in Shares, a declaration of an extraordinary dividend payable in a form other than
Shares in an amount that has a material effect on the Fair Market Value of the Stock, a combination
or consolidation of the outstanding Stock into a lesser number of Shares, a recapitalization, a
spin-off, a reclassification or a similar occurrence, the Board of Directors shall make appropriate
adjustments in one or more of (i) the number of Shares available for future grants under Section 4,
(ii) the number of Shares covered by each outstanding Option or (iii) the Exercise Price under each
outstanding Option.

          (b) Repurchase of Shares Upon Termination of Service. Except as expressly provided in the
Stock Purchase Agreement or Notice of Stock Option Grant (each, a “Share Agreement”) governing a
specific stock or option grant under the Plan, Shares which have not vested shall be deemed
“Restricted Shares” and shall be subject to repurchase (in whole or in part) by the Company at cost
in the event the holder’s Service with the Company terminates for any reason. The terms of such
repurchase right shall be set forth in the applicable Share Agreement.

          (c) Reservation of Rights. Except as provided in this Section 8, an Optionee or Purchaser
shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any
class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of
shares of stock of any class. Any issuance by the Company of shares of stock of any class, or
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 an
Option. The grant of an Option pursuant to the 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, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any
part of its business or assets.

SECTION 9. SECURITIES LAW REQUIREMENTS.

          (a) General. Shares shall not be issued under the Plan unless the issuance and delivery of
such Shares comply with (or are exempt from) all applicable requirements of law, including (without
limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, state securities laws and regulations, and the regulations of any stock exchange or
other securities market on which the Company’s securities may then be traded.

          (b) Financial Reports. The Company each year shall furnish to Optionees, Purchasers and
stockholders who have received Stock under the Plan its balance sheet and income statement, unless
such Optionees, Purchasers or stockholders are key Employees whose duties with the Company assure
them access to equivalent information. Such balance sheet and income statement need not be
audited.

SECTION 10. NO RETENTION RIGHTS.

          Nothing in the Plan or in any right or Option granted under the Plan shall confer upon the
Purchaser or Optionee any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Company (or any Parent or
Subsidiary employing or retaining the Purchaser or Optionee) or of the Purchaser or Optionee, which
rights are hereby expressly reserved by each, to terminate his or her Service at any time and for
any reason, with or without cause.

SECTION 11. DURATION AND AMENDMENTS.

          (a) Term of the Plan. The Plan, as set forth herein, shall become effective on the date of
its adoption by the Board of Directors, subject to the approval of the Company’s stockholders. If
the stockholders fail to approve the Plan within 12 months after its adoption by the Board of
Directors, then any grants, exercises or sales that have already occurred under the Plan shall be
rescinded and no additional grants, exercises or sales shall

6

 

thereafter be made under the Plan. The Plan shall terminate automatically 10 years after the
later of (i) its adoption by the Board of Directors or (ii) the most recent increase in the number
of Shares reserved under Section 4 that was approved by the Company’s stockholders. The Plan may
be terminated on any earlier date pursuant to Subsection (b) below.

          (b) Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or
terminate the Plan at any time and for any reason; provided, however, that any amendment of the
Plan shall be subject to the approval of the Company’s stockholders if it (i) increases the number
of Shares available for issuance under the Plan (except as provided in Section 8) or (ii)
materially changes the class of persons who are eligible for the grant of ISOs. Stockholder
approval shall not be required for any other amendment of the Plan. If the stockholders fail to
approve an increase in the number of Shares reserved under Section 4 within 12 months after its
adoption by the Board of Directors, then any grants, exercises or sales that have already occurred
in reliance on such increase shall be rescinded and no additional grants, exercises or sales shall
thereafter be made in reliance on such increase.

          (c) Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan
after the termination thereof, except upon exercise of an Option granted prior to such termination.
The termination of the Plan, or any amendment thereof, shall not affect any Share previously
issued or any Option previously granted under the Plan.

SECTION 12. DEFINITIONS.

          (a) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from
time to time.

          (b) “Change in Control” shall mean:

     (i) The consummation of a merger or consolidation of the Company with or into
another entity or any other corporate reorganization, if persons who were not
stockholders of the Company immediately prior to such merger, consolidation or other
reorganization own immediately after such merger, consolidation or other
reorganization 50% or more of the voting power of the outstanding securities of each
of (A) the continuing or surviving entity and (B) any direct or indirect parent
corporation of such continuing or surviving entity; or

     (ii) The sale, transfer or other disposition of all or substantially all of the
Company’s assets.

A transaction shall not constitute a Change in Control if its sole purpose is to change the state
of the Company’s incorporation or to create a holding company that will be owned in substantially
the same proportions by the persons who held the Company’s securities immediately before such
transaction.

          (c) “Code” shall mean the Internal Revenue Code of 1986, as amended.

          (d) “Committee” shall mean a committee of the Board of Directors, as described in Section
2(a).

          (e) “Company” shall mean Entone Technologies, Inc., a Delaware corporation.

          (f) “Consultant” shall mean a person who performs bona fide services for the Company, a Parent
or a Subsidiary as a consultant or advisor, excluding Employees and Outside Directors.

          (g) “Disability” shall mean that the Optionee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment.

7

 

          (h) “Employee” shall mean any individual who is a common-law employee of the Company, a Parent
or a Subsidiary.

          (i) “Exercise Price” shall mean the amount for which one Share may be purchased upon exercise
of an Option, as specified by the Board of Directors in the applicable Stock Option Agreement.

          (j) “Fair Market Value” shall mean the fair market value of a Share, as determined by the
Board of Directors in good faith. Such determination shall be conclusive and binding on all
persons.

          (k) “Immediate Family” shall mean any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law or sister-in-law and shall include adoptive relationships.

          (l) “ISO” shall mean an employee incentive stock option described in Section 422(b) of the
Code.

          (m) “Nonstatutory Option” shall mean a stock option not described in Sections 422(b) or 423(b)
of the Code.

          (n) “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the
holder to purchase Shares.

          (o) “Optionee” shall mean a person who holds an Option.

          (p) “Outside Director” shall mean a member of the Board of Directors who is not an Employee.

          (q) “Parent” shall mean any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. A corporation that attains the status of a Parent on a date
after the adoption of the Plan shall be considered a Parent commencing as of such date.

          (r) “Plan” shall mean this Entone Technologies, Inc. 2003 Stock Plan.

          (s) “Purchase Price” shall mean the consideration for which one Share may be acquired under
the Plan (other than upon exercise of an Option), as specified by the Board of Directors.

          (t) “Purchaser” shall mean a person to whom the Board of Directors has offered the right to
acquire Shares under the Plan (other than upon exercise of an Option).

          (u) “Service” shall mean service as an Employee, Outside Director or Consultant.

          (v) “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if
applicable).

          (w) “Stock” shall mean the Common Stock of the Company, with a par value of $0.001 per Share.

          (x) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that
contains the terms, conditions and restrictions pertaining to the Optionee’s Option.

          (y) “Stock Purchase Agreement” shall mean the agreement between the Company and a Purchaser
who acquires Shares under the Plan that contains the terms, conditions and restrictions pertaining
to the acquisition of such Shares.

8

 

          (z) “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a
Subsidiary commencing as of such date.

9

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