Document:

vkin_ex104.htm

EXHIBIT 10.4
  
 SECURITY AGREEMENT-PLEDGE
   
 ARTICLE I
 GENERAL RECITALS
  
 Identification of Parties
  
 This is a Security Agreement-Pledge (the “Agreement”) dated as of December 22, 2021 (the “Effective Date”) between RESC, LLC, a Nevada limited liability company whose principal address is 14830 Kivett Ln, Reno, NV 89521, referred to in this Agreement as (“Pledgor”), and VIKING ENERGY GROUP, INC., a Nevada corporation whose principal address is 15915 Katy Freeway, Suite 450, Houston, Texas 77094, referred to in this Agreement as (“Secured Party”). Pledgor and Secured Party are sometimes hereinafter referred to together as the “Parties” and individually as a “Party”.
   
 Debt
   
 1.01. New Rise Processing Reno, LLC is indebted to Secured Party, as evidenced by that certain promissory note dated, November 18, 2021, in the principal sum of One Million Five Hundred Thousand and No/100 ($1,500,000.00), the (“First Promissory Note”). New Rise Processing Reno, LLC is indebted to Secured Party, as evidenced by that certain promissory note dated December 22, 2021, in the principal sum of Five Hundred Thousand and No/100 ($500,000.00), the (“Promissory Note”).
  
 1.02. RESC Renewable Holdings, LLC has guaranteed New Rise Processing Reno, LLC’s payment obligations under the First Promissory Note and this Promissory Note pursuant to that certain Guaranty dated, November 18, 2021 and the Guaranty dated, December 22, 2021 (collectively the “Guaranty”). 
  
 Nature of Agreement
  
 1.03. Pledgor and Secured Party desire that, as an accommodation in connection with the loan made by Secured Party to Pledgor, Pledgor grants to the Secured Party a security interest in the Collateral described in Paragraph 2.02 of this Agreement as collateral for Pledgor’s performance of the terms and conditions of the Promissory Note and other obligations set forth in this Agreement.
  
 THEREFORE, in consideration of the mutual covenants and conditions contained in this Agreement, the Pledgor and Secured Party agree as follows:
  
 ARTICLE 2
 PLEDGE
  
 Security Interest
  
 2.01. Pledgor creates and grants to the Secured Party a security interest in the Collateral described in Paragraph 2.02 of this Agreement to secure the payment and performance of the obligations of New Rise Processing Reno, LLC and RESC Renewable Holdings, LLC to the Secured Party set forth in Paragraph 2.03 of this Agreement.
   
 	 
	
	

	 

  
 Description of Collateral
  
 2.02. 
  
 (a) The Security Agreement – Pledge dated, November 18, 2021 (the “Original Security Agreement”) and this Agreement creates a first lien, perfected security interest in favor of Secured Party in twenty percent (20%) of the membership interests of RESC Renewable Holdings, LLC, a Nevada limited liability company owned by Pledgor (the “Equity”); and 
  
 (b) All right, title and interest of Pledgor, whether now owned or hereafter acquired, in and to Pledgor’s right to receive profits, income, proceeds, monies and distributions, arising, directly or indirectly out of Pledgor’s interest in the Equity (together with the Equity, collectively referred to as the “Collateral”).
  
 Obligations Secured
  
 2.03. The security interest created by this Agreement secures the following:
  
 (a) Payment of the indebtedness evidenced by, and performance and discharge of every covenant, condition, and agreement contained in the Promissory Note, and any and all modifications, extensions, or renewals of the Promissory Note (the “Obligations”) by New Rise Processing Reno, LLC pursuant to the Promissory Note, and by RESC Renewable Holdings, LLC pursuant to the Guaranty.
  
 (b) Performance and discharge of every obligation, covenant, and agreement of Pledgor contained in this Agreement or in any of the Security Instruments, as defined in the Promissory Note (if any) (collectively, the “Ancillary Agreements”).
  
 Representations and Warranties of Debtor
  
 2.04. 
  
 (a) Pledgor warrants and represents that the Collateral represents 20% of the membership interests of RESC Renewable Holdings, LLC owned by Pledgor; that the Collateral is free and clear of any security interests, liens, restrictions, or encumbrances, and the security interest created by this Agreement, and that Pledgor has full right and power to transfer or pledge the Collateral to the Secured Party free and clear of any interests described in this paragraph, and to enter into and carry out this Agreement.
  
 (b) Pledgor has not heretofore signed any financing statement, and no financing statement is now on file in any public office covering the Collateral. Pledgor authorizes Secured Party to file, in jurisdictions where this authorization will be given effect, a financing statement signed only by Secured Party covering the Collateral; and at the request of Secured Party, Pledgor will join Secured Party in executing one or more financing statements, pursuant to the Uniform Commercial Code, in form satisfactory to Secured Party.
  
 (c) Pledgor will not sell, transfer or dispose of any portion of the Collateral, except to Maker, unless Secured Party consents to such sale, transfer or disposition in writing, in advance.
  
 Security and Pledge Agreement – New Rise Transaction
  
 	 
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 (d) Pledgor shall, at its own expense, do, make, procure, execute and deliver all acts, things, writings and assurances as Secured Party may at any time reasonably request to protect, assure or enforce its interests, rights and remedies created by, provided in, or emanating from, this Security Agreement.
  
 (e) Pledgor shall keep the Collateral, including any proceeds therefrom, free from unpaid charges, including taxes, and from liens, encumbrances and security interests other than that of Secured Party.
  
 ARTICLE 3
 DEFAULT; RIGHTS OF SECURED PARTY
  
 Event of Default
  
 3.01. As used in this Agreement, “Event of Default” shall have the meaning subscribed to such term in the Promissory Note.
  
 Secured Party’s Rights and Remedies
  
 3.02. Secured Party shall have all of the following rights regardless of the existence of any Event of Default.
  
 (a) This Agreement, Secured Party’s rights hereunder, or the indebtedness hereby secured may be assigned from time to time.
  
 (b) Secured Party may execute, sign, endorse, transfer or deliver in the name of Pledgor any documents, necessary to evidence, perfect or realize upon the security interest and obligations created by this Agreement.
  
 (c) Secured Party shall have no liability with respect to the Collateral, including, without limitation, any obligation for cash calls.
  
 3.03. Upon an Event of Default, the Secured Party may foreclose the security interest in either of the following ways:
  
 (a) Provided that the Secured Party gives notice to the Pledgor, and the Pledgor fails to object within twenty-one (21) days of receipt of such notice, the Secured Party may retain in satisfaction of Pledgor’s obligation all of the Collateral.
  
 Security and Pledge Agreement – New Rise Transaction
  
 	 
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 (b) Secured Party may declare all Obligations secured hereby immediately due and payable and shall have the rights and remedies of a Secured Party under the Uniform Commercial Code of Texas, including without limitation thereto, the right to sell, at public or private sale or sales, or otherwise dispose of or utilize the collateral and any part or parts thereof in any manner authorized or permitted under the Uniform Commercial Code after default by a debtor, at such prices and on such terms as Secured Party may deem reasonable under the circumstances upon notice to Pledgor after an Event of Default. Secured Party will send Pledgor reasonable notice of the time and place of any public sale thereof or of the time after which any private sale or other disposition thereof is to be made in accordance with the applicable provisions of the Uniform Commercial Code. The requirement of sending reasonable notice shall be met if such notice is mailed, postage prepaid, to Pledgor at the address designated on the first page of this Security Agreement (or at such other address as Pledgor shall have designated as its address for receipt of notices hereunder in a writing duly received by Secured Party) at least fifteen (15) days before the time of the sale or disposition and email notice to Pledgor. Expenses of retaking, holding, selling or the like shall include Secured Party’s reasonable attorney’s fees and legal expenses, and Pledgor agrees to pay such expenses, plus interest thereon at the maximum rate permitted by applicable law from the date such expenses are incurred until repaid. Pledgor shall remain liable for any deficiency. 
  
 (c) No delays or omission on the part of Secured Party in exercising any right hereunder shall operate as a waiver of any such right or any other right. A waiver on any one or more occasions shall not be construed as a bar or waiver of any right or remedy on any future occasion. The remedies of Secured Party hereunder are cumulative, and the right exercise of any one or more of the remedies provided for herein shall not be construed as an election or as a waiver of any of the other remedies of Secured Party provided for herein or existing by law or otherwise.
  
 Additional Agreements
  
 3.04. 
  
 (a) The execution and delivery of this Agreement in no manner shall impair or affect any other security (by endorsement or otherwise) for the payment of the Obligations and no security taken hereafter as security for payment of the Obligations shall impair in any manner or affect this Agreement, all such present and future additional security to be considered as cumulative security. Any of the Collateral may be released from this Agreement without altering, varying or diminishing in any way the force, effect, lien, security interest, or charge of this Agreement as to the Collateral not expressly released, and this Agreement shall continue as a first and prior lien, security interest and charge on all of the Collateral not expressly released, until all the Obligations secured hereby have been paid in full. Any future assignment or attempted assignment of the interest of Pledgor in and to any of the Collateral shall not deprive Secured Party of the right to see or otherwise dispose of or utilize all of the Collateral as above provided or necessitate the sale or disposition thereof in parcels or in severalty.
  
 (b) This Agreement shall not be construed as relieving Pledgor from full personal liability on the Obligations secured hereby and for any deficiency thereon.
  
 Security and Pledge Agreement – New Rise Transaction
  
 	 
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 ARTICLE 4
 VOTING; DISTRIBUTIONS
  
 Voting
  
 4.01 For as long as the Collateral is held by Secured Party, and until the date of an Event of Default, if any, the Pledgor shall have the right to vote the Equity for all purposes. If requested by the Pledgor, the Secured Party shall execute and deliver to the Pledgor any proxies and authorizations reasonably required to confirm the voting rights of the Pledgor during this period.
  
 Distributions
  
 4.02 For as long as the Collateral is held by the Secured Party, and until the date of an Event of Default, if any, all distributions paid upon the Equity shall belong to the Pledgor.
  
 ARTICLE 5
 RELEASE OF COLLATERAL
  
 Release of Collateral
  
 5.01. Upon payment in full of the Promissory Note, the Collateral is released of any obligation hereunder. 
  
 ARTICLE 6
 MISCELLANEOUS
  
 No Waiver of Right of Remedies
  
 6.01. No failure or delay by Secured Party in exercising any right, power, or privilege given by any provision of this Agreement shall operate as a waiver of the provision. Additionally, no single or partial exercise of any right, power, or privilege shall preclude any other or further exercise of that or any other right, power, or privilege.
  
 Severability
  
 6.02. Should any one or more of the provisions of this Agreement be determined to be illegal or unenforceable, all other provisions of this agreement shall be valid, binding, and effective as if the illegal or unenforceable provisions had never been included in this Agreement.
  
 Notices
  
 6.03. Any notices of other communications required or permitted by this Agreement shall be delivered personally or sent by registered or certified mail, postage prepaid the addresses set forth in the introductory paragraph hereof, or at any other address furnished in writing by either Party to the other, and shall be deemed to have been given as of the date the notice is personally delivered or three business days after deposited in the United States mail and email notice to Pledgor. 
  
 Security and Pledge Agreement – New Rise Transaction
  
 	 
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 Assignment
  
 6.04. This Agreement and the Security Interest created by this Agreement shall be assignable by the Secured Party, and shall inure to the benefit of Secured Party’s legal representatives, successors and assigns. Pledgor may not assign its obligations hereunder.
  
 Choice of Law; Venue
  
 6.05. It is the intention of the parties that the laws of Texas should govern the validity of this Agreement, the construction of its terms, and the interpretation of the rights and duties of the parties. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS SECURITY AGREEMENT AND THE PROMISSORY NOTE MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS OR OF THE UNITED STATES LOCATED IN HARRIS COUNTY, TEXAS AND, BY EXECUTION AND DELIVERY OF THIS SECURITY AGREEMENT, THE PLEDGOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF THE COMPANY’S PROPERTY, UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING. THE PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE PLEDGOR, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. NOTHING IN THIS SECURITY AGREEMENT SHALL AFFECT THE RIGHT OF THE SECURED PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE PLEDGOR IN ANY OTHER JURISDICTION.
  
 THE PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH THE PLEDGOR MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS SECURITY AGREEMENT BROUGHT IN THE COURTS REFERRED TO IN THIS SECTION 6.05 AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
  
 Paragraph Headings
  
 6.06. Paragraph and other headings contained in this Agreement are for purposes of reference and convenience only and shall not affect in any way the meaning of this Agreement or its interpretation.
  
 Prevailing Party
  
 6.07. If any legal action or other proceeding is brought for the enforcement of this Agreement executed in connection with, or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement or any document, instrument or agreement executed in connection herewith, the successful prevailing Party shall be entitled to recover reasonable attorney’s fees, court costs and all other costs and expenses incurred in that action or proceeding.
   
 Security and Pledge Agreement – New Rise Transaction
  
 	 
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 Drafting
  
 6.08. Each of the Parties hereto acknowledges that each Party was actively involved in the negotiation and drafting of this Agreement and that no law or rule of construction shall be raised or used in which the provisions of this Agreement shall be construed in favor or against any Party hereto because one is deemed to be the author thereof.
  
 Counsel
  
 6.09. COUNSEL. EACH PARTY ACKNOWLEDGES THAT THE PARTIES ARE EXECUTING A LEGAL DOCUMENT THAT CONTAINS CERTAIN DUTIES, OBLIGATIONS AND RESTRICTIONS AS SPECIFIED HEREIN. EACH PARTY FURTHERMORE ACKNOWLEDGES THAT EACH PARTY HAS BEEN ADVISED OF THEIR RIGHT TO RETAIN LEGAL COUNSEL, AND THAT EACH PARTY HAS EITHER BEEN REPRESENTED BY LEGAL COUNSEL PRIOR TO THEIR EXECUTION HEREOF OR HAS KNOWINGLY ELECTED NOT TO BE SO REPRESENTED.
  
 SIGNATURE PAGE FOLLOWS
  
 Security and Pledge Agreement – New Rise Transaction
  
 	 
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 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
  
  
 	  
	 PLEDGOR:
	  

	  
	  
	  

	 	 RESC, LLC, a Nevada limited liability company
	
	 	 	 	 
		By:	/s/ Randall Soulé	
	  
	  
	 Randall Soulé, Manager
	 
	 	 		 
	  
	  
	  
	  

	  
	 SECURED PARTY:
	  

	  
	  
	  

	  
	 VIKING ENERGY GROUP, INC.
	  

	 	 		 
	  
	 By:
	 /s/ James A. Doris
	  

	  
	 Name: 
	 James A. Doris
	  

	  
	 Title: 
	 President and CEO
	  

   
 Security and Pledge Agreement – New Rise Transaction
   
 	 
	 8EX-10.1

 Exhibit 10.1 

CLOUDFLARE, INC. 
 2019
EQUITY INCENTIVE PLAN 
 PERFORMANCE STOCK OPTION AGREEMENT 

NOTICE OF PERFORMANCE STOCK OPTION GRANT AND PERFORMANCE STOCK OPTION AGREEMENT 

Capitalized terms that are not defined in this Notice of Performance Stock Option Grant and Performance Stock Option Agreement (the
“Notice of Grant”), the Terms and Conditions of Performance Stock Option Grant, or any of the exhibits to these documents (all together, the “Agreement”) have the meanings given to them in the
Cloudflare, Inc. 2019 Equity Incentive Plan (the “Plan”). 
 The Participant has been granted under the Plan an
option to purchase shares of Class A Common Stock of the Company (the “Option”) according to the terms below and subject to the terms and conditions of the Plan and this Agreement: 

 

			
	Participant	  	[Matthew Prince/ Michelle Zatlyn]
		
	Participant I.D.	  	
		
	Grant Number	  	
		
	Grant Date	  	[Date of Compensation Committee Approval]
		
	Number of Shares Granted	  	3,960,000*
		
	Exercise Price per Share	  	$[FMV on Grant Date]*
		
	Total Exercise Price	  	$[Per Share Exercise Price multiplied by 3,960,000]*
		
	Type of Option	  	Nonstatutory Stock Option
		
	Expiration Date	  	[1-day prior to the 10-Year Anniversary of the Grant Date]
		
		  	This Option is subject to earlier expiration as provided below or in Sections II. and III. of the Notice of Grant or Section 12(b) or Section 13 of the Plan (except as modified pursuant to the Notice of
Grant).

 * For purposes of clarity: the Number of Shares Granted, the Exercise Price per Share and, as a result, the Total
Exercise Price, each are subject to adjustments pursuant to Section 12(a) of the Plan. 
  

	I.	 Exercise Schedule 

This Option will be exercisable during its term with respect to any Shares subject to the Option that vest in accordance with the Vesting
Requirements set forth below. In no event may the Option or any portion thereof be exercised before Stockholder Approval is obtained, notwithstanding any vesting of all or a portion of the Option prior to such Stockholder Approval. 

	II.	 Vesting Requirements 

This Option is a performance-based stock option award and all or a portion of the Number of Shares Granted subject to the Option shall
(a) become eligible to vest upon the satisfaction of Stock Price Goals as described in more detail below (the “Performance Goals”), and (b) shall vest and, subject to Stockholder Approval being obtained, become
exercisable if the Participant remains in Continued Eligible Service on the related Certification Date(s) and through the applicable Time-Based Vesting Date, except as otherwise provided herein. Defined terms used, but not defined, in the Notice of
Grant, the Agreement or the Plan, shall have the meanings ascribed to them in Appendix I. 

A.    Tranches. This Option is divided into eight (8) vesting tranches (each, a
“Tranche”). Each Tranche is numbered from 1 through 8, as set forth in Table 1 below, with each Tranche representing a portion of this Option covering a number of Shares specified next to the applicable Tranche number
in Table 1 below (with respect to each Tranche, the “Tranche Shares”). As described in additional detail below, if the Stock Price Goal applicable to a Tranche is achieved within the Performance
Period, then the Tranche Shares related to such Tranche shall become Eligible Shares, with the resulting Eligible Shares eligible to vest as set forth in Section II.C.4 below. Eligible Shares shall be determined separately with respect to
each Tranche. No Tranche Share may become an Eligible Share more than one (1) time. 
 Table 1 

 

							
	 Tranche
Number
	  	 Number of Tranche Shares *
	  	
Stock Price Goals*
	 
	 1
	  	198,000 Shares	  	$	156.00	 
	 2
	  	198,000 Shares	  	$	203.00	 
	 3
	  	396,000 Shares	  	$	263.00	 
	 4
	  	396,000 Shares	  	$	343.00	 
	 5
	  	396,000 Shares	  	$	446.00	 
	 6
	  	792,000 Shares	  	$	579.00	 
	 7
	  	792,000 Shares	  	$	753.00	 
	 8
	  	792,000 Shares	  	$	979.00	 

 * Number of Tranche Shares is subject to adjustments pursuant to Section 12(a) of the Plan; the Stock Price Goals are
subject to adjustment pursuant to Section II.C.2.(b). 
 B.    Maximum Number of Shares That May Vest.
Subject to any adjustments pursuant to Section 12(a) of the Plan, the maximum number of Shares subject to a Tranche that may vest is equal to one hundred percent (100%) of such Tranche’s Tranche Shares, and the maximum number of Shares
subject to this Option that may vest is equal to the Number of Shares Granted as set forth above in this Notice of Grant. 

C.    Vesting. The vesting of the Tranches will be subject to both (1) the achievement of the
Performance Goals and (2) the Participant’s Continued Eligible Service on the related Certification Date(s) and through the applicable Time-Based Vesting Date, in each case as described in this Section II.C., subject to Section II.D.
in connection with the Participant’s death or Disability and Section II.E. in connection with a Change in Control. 

  
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 1.    Performance Period. The period during which the
Stock Price Goal applicable to a Tranche may be achieved begins with the Grant Date and ends on the Expiration Date, subject to earlier termination as set forth in the Notice of Grant (the “Performance Period”). If the
Termination Date occurs before the Expiration Date, then, except to the extent provided in Section II.D. and Section II.E. below, the Performance Period will terminate as of the Termination Date and no Shares subject to this Option may vest
based on any achievement of the Performance Goals that occurs after the Termination Date. Further, for clarity, Shares subject to this Option may become eligible to vest, and may vest, only while the Option (or applicable portion thereof) remains
outstanding. 
 2.    Stock Price Goals. 

(a)    Generally. Subject to Section II.E. below, for a Tranche to become eligible to vest, the Company
must achieve a VWAP Price equal to at least the Stock Price Goal amount set forth opposite such Tranche in Table 1 above (each, a “Stock Price Goal”). If the Company achieves the Stock Price Goal
applicable to a Tranche (an “Achieved Tranche”), then the number of Shares that become eligible to vest will equal the Tranche Shares corresponding to such Tranche (and any Tranche Shares for a lower-numbered Tranche that did
not previously vest). The resulting number of Shares that become eligible to vest are referred to herein as “Eligible Shares”). The Stock Price Goal applicable to a Tranche may be achieved only once during the Performance
Period, and accordingly, any achievement of an Achieved Tranche’s Stock Price Goal after such Stock Price Goal already has been achieved during the Performance Period will not result in any additional Shares becoming Eligible Shares, or
vesting, with respect to such Achieved Tranche. For the avoidance of doubt, more than one Tranche may become an Achieved Tranche at the same time, if the applicable Stock Price Goals for the applicable Tranches are achieved (to the extent not
previously achieved). 
 (b)    Certain Adjustments. In the event that any extraordinary dividend or
other extraordinary distribution (whether in cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, issuance of warrants or other rights to acquire securities of the Company, other change in the corporate structure of the
Company affecting the Shares, or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any of its successors) affecting the Shares
occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under this Option, will make appropriate adjustments to the Stock Price Goal(s) set forth in Table 1
above to the extent such Stock Price Goal(s) have not yet been achieved. Notwithstanding the foregoing, the conversion of any convertible securities of the Company and ordinary course repurchases of shares or other securities of the Company will not
be treated as an event that will require adjustment under this Section II.C.2.(b). 
 3.    Certification of
Performance. The Administrator periodically will determine and certify in writing (a “Certification”) whether the Company has achieved any of the Stock Price Goals, the applicable Stock Price Achievement Date, and any
Eligible Shares. The date of each such certification is a “Certification Date.” In addition, the Participant, from time to time (but not more than twice per fiscal quarter of the Company) during the Performance Period, also
may make requests that the Administrator complete a Certification. Upon such written request by the Participant, the Administrator will complete a Certification within fifteen (15) days of the date of receipt of the Participant’s written
request. Without 

  
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limiting the foregoing and to the extent any Tranche is then outstanding and unvested, the Administrator will complete a Certification on or within thirty (30) days following the date of
cessation of the Participant’s Continued Eligible Service (but in no event later than the Expiration Date), and additionally, in the case of a cessation of Participant’s Continued Eligible Service due to Participant’s death or
Disability, the Administrator will complete a final Certification on or within thirty (30) days following the completion of the Adjusted Performance Period (as defined below). Without limiting the foregoing and to the extent any Tranche is then
outstanding and unvested, the Administrator will complete at least one Certification within the thirty (30)-day period beginning sixty (60) days prior to the Expiration Date and further, to the
extent reasonably possible that the Company may achieve any Stock Price Goals not yet achieved by such time, in each of the last ten (10) consecutive Trading Days ending with the Expiration Date. 

4.    Time-Based Vesting Schedule – Satisfaction of Continued Eligible Service Through Vesting Date.
Subject to Section II.E., one-sixth (1/6th) of the total number of Shares subject to the Option will meet the time-based vesting requirements on each annual
anniversary of the Grant Date (each, a “Time-Based Vesting Date”), subject to the Participant remaining in Continued Eligible Service through the applicable Time-Based Vesting Date (such requirements, the
“Time-Based Requirements”). For the avoidance of doubt, subject to Section II.E., Shares subject to an Achieved Tranche will only become vested and exercisable if the Time-Based Requirements of this Section II.C.4 have
been met with respect to such Shares. The Time-Based Vesting Requirements will be deemed to apply in the same order as the Tranches, such that Shares subject to Tranche 1 will be the first to satisfy the Time-Based Requirements (assuming the
requirements thereof are met), and Shares subject to Tranche 8 will be the last to satisfy the Time-Based Requirements (assuming the requirements thereof are met). 

5.    Forfeiture. Subject to Section II.D. and Section II.E., the applicable Shares subject to the
Option will forfeit, and the Participant no longer will have any rights to vest in or to acquire such Shares under this Option, as follows (on the earliest to occur on the applicable event or date): 

 

	 	a.	 100% of the Shares subject to the Option will be immediately forfeited on the date of Stockholder Rejection of
the Option. 

  

	 	b.	 100% of the Shares subject to the Option will be immediately forfeited on the
one-(1) year anniversary of the Grant Date if Stockholder Approval is not obtained on or prior to such date. 

  

	 	c.	 Subject to Section II.D. and Section II.E., in the event of the cessation of Participant’s Continued
Eligible Service, any Shares subject to the Option for which the applicable Stock Price Goal has not been achieved and which have not yet become Eligible Shares shall automatically be forfeited upon such cessation of Participant’s Continued
Eligible Service. 

  

	 	d.	 Subject to Section II.E., in the event of the cessation of Participant’s Continued Eligible Service, any
Shares subject to the Option for which the applicable Time-Based Requirements have not been achieved shall automatically be forfeited upon such cessation of Participant’s Continued Eligible Service. 

  
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	 	e.	 100% of the unexercised Shares subject to the Option will be immediately forfeited on the Expiration Date at
the time on such date that is consistent with the Company’s practices then in effect with respect to the expiration of stock options. 

  

	 	f.	 As and to the extent provided under Section II.E.3., below. 

D.    Death or Disability. Notwithstanding Sections II.C.1. and II.C.4. above, if the Participant’s
Continued Eligible Service ceases due to the Participant’s death or Disability during the Performance Period, the rules of this Section II.D. shall apply. If the Participant’s Continued Eligible Service ceases due to the
Participant’s death or Disability during the Performance Period, the Performance Period will be adjusted to end on the date eighteen (18) months following the Termination Date (but in no event later than the Expiration Date) (the
“Adjusted Performance Period”), subject to the shortening of such Adjusted Performance Period in accordance with Section II.E., below. If the Company achieves any of the Stock Price Goals with respect to any Tranche that has
not yet become an Achieved Tranche during the Adjusted Performance Period, then the Target Tranche Shares subject to such Tranche will vest as of the applicable Certification Date to the extent that the Time-Based Requirements applicable to such
Shares was satisfied prior to the Participant’s cessation of Eligible Continued Service.  

E.    Change in Control. In the event of the first Change in Control to occur following the Grant Date and
that occurs during the Performance Period, the following terms of this Section II.E. will apply. 

1.    Shortened Performance Period and Measurement of Stock Price Goals Based on CIC Price; Final
Certifications. The Administrator will determine, in good faith, whether an event (or series of events) constitutes a Change in Control. The Performance Period (including any Adjusted Performance Period) will be shortened to end upon the
completion of the Change in Control (the “Shortened Performance Period”). During the period beginning upon the earlier of (i) the execution of the definitive agreement addressing the transactions that would give rise to
the Change in Control or (ii) the public announcement of a transaction or series of transactions that, if completed, would give rise to a Change in Control (such date, the “Change in Control Announcement Date”) and
ending upon the earlier of the end of the Shortened Performance Period or the “Change in Control Termination Date” (as defined below) (the “VWAP Pause Period”), no additional Tranche shall become an Achieved Tranche
based on the VWAP Price. Instead, during the VWAP Pause Period, achievement of the Stock Price Goals (to the extent not previously achieved) may only occur upon the end of the Shortened Performance Period at the completion of the Change in Control
and will be measured based on the CIC Price rather than the VWAP Price, such that, subject to the linear interpolation provisions of this Section II.E., for a Stock Price Goal to be achieved and the related Tranche to become an Achieved Tranche, the
Company must achieve a CIC Price equal to at least the Stock Price Goal amount set forth opposite such Tranche in Table 1 above. Prior to the Change in Control, the Administrator will complete a final Certification for such
Shortened Performance Period, which Certification will include a determination with respect to whether the Company will have achieved, upon the completion of the Change in Control, any Stock Price Goals based on the CIC Price and which Certification
will be contingent upon the consummation of the Change in Control (the “CIC Certification”). If the sale or other arrangements that give rise to the Change in Control Announcement Date are terminated by their terms or
otherwise withdrawn, as applicable (such date of termination or withdrawal, the “Change in Control Termination Date”), the VWAP Pause Period will end and the regular Performance Period will resume, and the calculation for the
VWAP Price shall re-commence beginning with the first day following the Change in Control Termination Date (with no credit toward the Stock Price Goals provided for any VWAP Price achieved during the VWAP
Pause 

  
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Period). Upon the Change in Control Termination Date, any Adjusted Performance Period in effect during the VWAP Pause Period will be extended (but not beyond the Expiration Date) by the length of
such VWAP Pause Period. 
 (a)    Linear Interpolation for CIC Certification. If (i) the Company
achieves a CIC Price that is less than a Stock Price Goal amount applicable to a Tranche that has not yet become an Achieved Tranche, but (ii) the CIC Price is greater than the next highest Stock Price Goal amount that is less than the Stock
Price Goal amount described in clause (i), then a number of Shares subject to the Tranche subject to the Stock Price Goal amount described in clause (i) nonetheless will be considered to have achieved the Stock Price Goal (the
“Partially Achieved Goal”) by applying the formula of ((A) / (B))* (C), with the result rounded down to the nearest whole Share, where “(A)” equals the amount by which the CIC Price exceeds the Stock Price Goal
for the highest Stock Price Goal fully achieved by the CIC Price; “(B)” equals the difference between the Stock Price Goal for the Tranche described in clause (i) and the Stock Price Goal for the highest Stock Price Goal fully
achieved by the CIC Price, and “(C)” equals the total number of Shares subject to the Tranche described in clause (i).Such resulting number of Shares will be considered Eligible Shares. 

(b)    Linear Interpolation Example for Change in Control. As an example, assume that a Change in Control
occurs both while this Option remains outstanding and the Participant remains in Continued Eligible Service, the Company achieves a CIC Price of $600.00, and the Company previously achieved the Stock Price Goals for Tranches 1 through 3 but not
the Stock Price Goal for Tranches 4 through 8 pursuant to the Certifications through and inclusive of the final Certification. Pursuant to the CIC Certification, the Stock Price Goal for Tranches 4 through 6 will be considered fully
achieved and the 1,584,000 Shares subject to Tranches 4 through 6 will be Eligible Shares and the Stock Price Goal for Tranche 7 will be considered a Partially Achieved Goal and as a result, 95,586 Shares subject to Tranche 7 will be
Eligible Shares. 
 2.    Waiver of Time-Based Vesting in Connection with CIC. As of immediately prior to
the Change in Control, the Time-Based Requirements of Section II.C.4 automatically will be waived such that, subject to the Participant’s Continued Eligible Service through immediately prior to the Change in Control, all Eligible Shares will
vest as of immediately prior to the Change in Control. 
 3.    Forfeiture. Section 13(e) of the
Plan shall not apply to this Option. Any Shares subject to this Option that have not vested as of immediately prior to the Change in Control (after giving effect to Sections II.E.1. and II.E.2.) will be forfeited as of immediately prior to the
Change in Control and will not be eligible for any vesting or payment of any consideration in respect thereof as a result of the completion of the Change in Control.    For the avoidance of doubt, this constitutes an explicit
statement for purposes of Section 1 of Exhibit A to this Agreement that the provisions of this Section II.E.3. will take precedence and prevail over Section 13(e) of the Plan. 

F.    Company Leave of Absence Policy Applicable to Time-Based Requirements. The Option will remain eligible
to satisfy the Performance Goals during any leave of absence taken by the Participant that is approved by the Administrator, subject to the Participant remaining in Continued Eligible Service during such leave of absence. However, the ability to
satisfy the Time-Based Requirements will be tolled during such leave of absence in accordance with the stock-option related provisions of any Company leave of absence policy in effect at the time of and during the Participant’s leave of
absence. The Administrator will determine, in good faith, whether to approve any leave of absence by the Participant, the date on which the 

  
 -6- 

 
Participant stops actively providing services and whether a Participant may still be considered to be in Continued Eligible Service while on a leave of absence. For the avoidance of doubt, this
constitutes an explicit statement for purposes of Section 1 of Exhibit A to this Agreement that the provisions of this Section II.F. will, to the extent provided herein, take precedence and prevail over any provisions of the Plan or
any Company leave of absence policy related to the impact of a leave of absence on stock options. 
 G.    Change
in Control Severance Policy Not Applicable. Notwithstanding anything to the contrary in the Company’s Change in Control and Severance Policy or Participant’s Participant Agreement thereunder (together, the “CIC
and Severance Policy/Agreement”), no portion of the Option (whether or not Eligible Shares) shall at any time be deemed to be a “Time-Based Equity Award” under the CIC and Severance Policy/Agreement or otherwise be subject to any
acceleration of vesting or exercisability provisions of the CIC and Severance Policy/Agreement. For the avoidance of doubt, this constitutes an explicit statement for purposes of Section 1 of Exhibit A to this Agreement that the
provisions of this Section II.G. will take precedence and prevail over any provisions of the CIC and Severance Policy/Agreement as they otherwise could affect the vesting or exercisability of the Option. 

 

	III.	 Termination Period. 

This Option will be exercisable, to the extent vested through the Expiration Date. In no event may this Option be exercised after the
Expiration Date as provided above and this Option may be subject to earlier termination as provided in this Agreement and in Sections 12 and/or 13 of the Plan. 
  

	IV.	 Holding Period. 

In addition to any other restrictions on the transfer of any Shares acquired under this Option, each Share acquired upon exercise of this
Option will not be transferrable, subject to the next succeeding sentence, until after the earlier of: (x) the six (6)-year anniversary of the Grant Date, and (y) the 2-year anniversary of the
vesting date of such Share (the “Holding Period”), with the exceptions that (i) Shares may be transferred during the Holding Period to the extent necessary to satisfy the exercise price of the Option and any applicable
tax withholding obligations that may arise in connection with such exercise, and (ii) the Optionee will be permitted to transfer any exercised Shares during the Holding Period to the Optionee’s immediate family (as defined below) or to a
Permitted Entity that is an estate planning vehicle or in connection with charitable or philanthropic activities undertaken by Optionee (including, but not limited to, gifts to foundations, non-profits or
other charitable organizations), provided that any such transfer pursuant to this clause (ii) shall be subject to such transferee of such Shares agreeing in writing with the Company that such Shares will be subject to the transfer restrictions
set forth in this Section IV for the remainder of the Holding Period. Notwithstanding the foregoing, the Holding Period for all Shares will terminate upon the Optionee’s death or Disability. For purposes of this Section IV, the
Optionee’s “immediate family” means any of the Optionee’s 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. 
  

	V.	 No Repricing of the Option without Stockholder Approval. 

Notwithstanding anything in the Plan to the contrary, no repricing of the Option shall be implemented, and the Option may not participate in
any Exchange Program, without the approval of such repricing or participation in such Exchange Program by a Majority of the Minority, in accordance with 

  
 -7- 

 
the applicable rules of the Primary Exchange. For the avoidance of doubt, this constitutes an explicit statement for purposes of Section 1 of Exhibit A to this Agreement that the
provisions of this Section V will take precedence and prevail over any provisions of the Plan related to repricings or other Exchange Programs. 
  

	VI.	 Rule 10b5-1 Trading Plan. 

Subject to Section VI, the Participant shall be permitted to adopt and implement a Rule 10b5-1
trading plan with respect to all Shares acquired under this Option. 
 The Participant’s signature below indicates that: 

 

	 	(i)	 He or she agrees that this Option is granted under and governed by the terms and conditions of the Plan and
this Agreement, including their exhibits and appendices. 

  

	 	(ii)	 He or she understands that the Company is not providing any tax, legal, or financial advice and is not making
any recommendations regarding his or her participation in the Plan or his or her acquisition or sale of Shares. 

  

	 	(iii)	 He or she has reviewed the Plan and this Agreement, has had an opportunity to obtain the advice of personal
tax, legal, and financial advisors prior to signing this Agreement, and fully understands all provisions of the Plan and Agreement. He or she will consult with his or her own personal tax, legal, and financial advisors before taking any action
related to the Plan. 

  

	 	(iv)	 He or she has read and agrees to each provision of Section 11 of Exhibit A of this Agreement.

  

	 	(v)	 He or she will notify the Company of any change to the contact address below. 

 

	 	(vi)	 If the Participant either is married or in a registered domestic partnership, his or her spouse or registered
domestic partner has signed the Consent of Spouse or Registered Domestic Partner attached to this Notice of Grant as Exhibit C. 

  

			
	PARTICIPANT
	
	  

	Signature

  

			
	Address:	 	  

	
	  

	
	  

  
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 APPENDIX I 

CLOUDFLARE, INC. 
 2019
EQUITY INCENTIVE PLAN 
 PERFORMANCE STOCK OPTION AWARD AGREEMENT 

CERTAIN DEFINITIONS 
 This
Appendix I to the Notice of Performance Stock Option Grant and Performance Stock Option Agreement (the “Notice of Grant”) to which the Appendix I is attached contains the definitions of certain capitalized terms
used in the Notice of Grant not otherwise defined therein, as follows. Capitalized terms not defined in this Appendix I will have the meanings ascribed to them under the Agreement (as defined in the Notice of Grant) and the Plan. 

(a)    “Change in Control” has the meaning ascribed to it in the Plan; provided, however, a Change
in Control will not be deemed to have occurred by virtue of (1) any acquisition of additional securities of the Company or voting power with respect thereto by any or some combination of the members of the Excluded Group after the Grant Date,
including as a result of a Permitted Transfer (as defined in the COI) or in connection with a transaction or issuance (including pursuant to outstanding equity-based awards) or any other transaction approved by the Board or a Committee thereof, or
(2) any acquisition or disposition of shares of Class B Common Stock by one or more members of the Excluded Group or change in the total voting power of the capital stock of the Company held by one or more members of the Excluded Group as
a result of (x) the conversion of any shares of Common Stock into shares of Class B Common Stock, (y) the conversion of any shares of Class B Common Stock into shares of Common Stock or (z) any change in the voting power of
the holders of the Class B Common Stock, including solely as a result of any decrease in the total number of shares of capital stock or of any series of class thereof, as applicable, outstanding, and, in the case of clause (2) other
than any disposition of shares of Class B Common Stock by one or more members of the Excluded Group or change in the total voting power of the capital stock of the Company that, in either case, occurs in connection with a transaction or
series of related transactions in which the Majority of the Minority disposes of shares of the Company’s capital stock and such transaction or series of related transactions would otherwise constitute a Change in Control (as defined in the
Plan). 
 (b)    “CIC Price” means the amount of cash and the value of any securities or other
property paid to the holders of Shares as consideration for their Shares in a Change in Control, on a per Share basis (and in the case of a Change in Control that is described in clause (iii) of Section 20(e) of the Plan, any additional
consideration paid to the Company but not to the holders of Shares, on a per Share basis, treating such additional consideration as if such amounts instead had been paid to the holders of Shares), as reasonably determined in good faith by the
Administrator, in its sole discretion. 
 (c)    “Closing Price” means the closing sales price
of a Share during regular trading hours on the Primary Exchange on a Trading Day, as reported on the Primary Exchange or such other source as the Administrator determines to be reliable. 

(d)    “COI” means the Company’s Amended and Restated Certificate of Incorporation, effective
as of September 17, 2019, as hereinafter may be amended. 

 (e)    “Continued Eligible Service” means,
(x) from the Grant Date through and including the four (4)-year anniversary of the Grant Date, the Participant’s continued full-time employment as [for Matthew Prince: the Company’s Chief Executive Officer or co-Chief Executive Officer] [for Michelle Zatlyn: either the Company’s President and Chief Operating Officer, the Company’s Chief Executive Officer or the Company’s co-Chief Executive Officer] (y) after the four (4)-year anniversary of the Grant Date, continued full-time employment either as (i) [for Matthew Prince: the Company’s Chief Executive Officer
or co-Chief Executive Officer] [for Michelle Zatlyn: either the Company’s President and Chief Operating Officer, the Company’s Chief Executive Officer or the Company’s co-Chief Executive Officer], or (ii) as the Company’s Executive Chair or other “C-Suite” position with the Company Group, provided that such change
in role is approved, and the new role’s status as “C-Suite” position is confirmed, by the then-current Compensation Committee or independent members of the Board. 

(f)    “Daily Total Dollar Volume” means the product of (a) the Closing Price of the Common
Stock on a given Trading Day multiplied by (b) the corresponding Trading Day’s trading volume of the Common Stock, in each case, as reported on the Primary Exchange or such other source as the Administrator
determines to be reliable. 
 (g)    “Excluded Group” means the Excluded Parties or any of their
respective Permitted Entities or Family Members, or any “group” that includes any of the Excluded Parties or their Permitted Entities or Family Members 

(h)    “Excluded Parties” has the definition set forth in the COI. 

(i)    “Family Member” has the definition set forth in the COI. 

(j)    “Majority of the Minority” means, as of any date, the holders of a majority of the voting
power of all issued and outstanding shares of the Company’s Class A common stock and the Company’s Class B common stock entitled to vote on the Option (excluding those shares of Class A common stock and Class B common
stock owned of record or beneficially, directly or indirectly, by members of the Excluded Group or other executive officers of the Company or their Family Members or Permitted Entities). 

(k)    “Permitted Entities” has the definition set forth in the COI. 

(l)    “Primary Exchange” means The New York Stock Exchange or such other established securities
exchange, national market system, or other trading platform, on which Shares primarily are listed and regularly trade. 

(m)     “Stock Price Achievement Date” means the date that the Company achieves the Stock Price
Goal for the applicable Tranche. 
 (n)    “Stockholder Approval” means the approval of the
Option by a Majority of the Minority, in accordance with the applicable rules of the Primary Exchange. 

(o)    “Stockholder Approval Date” means the date of Stockholder Approval. 

(p)    “Stockholder Rejection” means that the Option is voted upon at any meeting of the
Company’s stockholders and a Majority of the Minority do not approve the Option by the requisite vote, in accordance with the applicable rules of the Primary Exchange. 

  
 -2- 

 (q)    “Trading Day” means a day that both
(i) the Primary Exchange is open for trading and (ii) Shares are traded during the Primary Exchange’s regular trading hours on such day. 

(r)    “Termination Date” means the first date upon which Participant’s Continued Eligible
Service terminates. 
 (s)    “Volume Weighted Average Price” or “VWAP”
means the quotient of (a) the sum of the Daily Total Dollar Volume for the number of Trading Days in the designated calendar day period divided by (b) the sum of the total share trading volume of the Common Stock as
reported on the Primary Exchange or such other source as the Administrator determines to be reliable for the number of Trading Days in the designated calendar day period. 

(t)    “VWAP Price” means the Volume Weighted Average Price for ninety (90) consecutive
calendar days, with each calendar day in such period occurring during the Performance Period. 

*            *           
 * 

  
 -3- 

 EXHIBIT A 

CLOUDFLARE, INC. 
 2019
EQUITY INCENTIVE PLAN 
 PERFORMANCE STOCK OPTION AWARD AGREEMENT 

TERMS AND CONDITIONS OF PERFORMANCE STOCK OPTION GRANT 

1.    Grant. The Company grants the Participant an Option to purchase Shares of Common Stock as described in the
Notice of Grant. Except as set forth in this Agreement, if there is a conflict between the Plan, this Agreement, or any other agreement with the Participant governing this Option, those documents will take precedence and prevail in the following
order: (a) the Plan, (b) the Agreement, and (c) any other agreement between the Company and the Participant governing this Option. 

2.    Vesting. This Option will only be exercisable (also referred to as vested) under the Vesting Schedule in
the Notice of Grant. Except as set forth in the Notice of Grant, Shares scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest unless the Participant remains in Continued Eligible Service until the time such
vesting is scheduled to occur. 
 3.    Forfeiture. Except as set forth in the Notice of Grant, upon the
Termination Date or in connection with a Change in Control, whichever is earlier, this Option will immediately stop vesting and any portion of this Option that has not yet vested will be immediately forfeited for no consideration to the extent and
at the time(s) set forth in the Notice of Grant. 
 4.    Death of Participant. Any distribution or delivery to
be made to the Participant under this Agreement will, if he or she is then deceased, be made to the administrator or executor of his or her estate or, if the Administrator permits, his or her designated beneficiary. Any such transferee must furnish
the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations that apply to the transfer. 

5.    Exercise of Option. 

(a)    Right to Exercise. This Option may be exercised only before its Expiration Date and only under the Plan and
this Agreement. 
 (b)    Method of Exercise. To exercise this Option, the Participant must deliver and the
Administrator must receive an exercise notice according to procedures determined by the Administrator. The exercise notice must: 

(i)    state the number of Shares as to which this Option is being exercised (“Exercised
Shares”), 
 (ii)    make any representations or agreements required by the Company, 

(iii)    be accompanied by a payment of the total exercise price for all Exercised Shares, and 

 (iv)    be accompanied by a payment of all required Tax-Related Items (defined in Section 7(a) of this Agreement) for all Exercised Shares. 
 The Option
is exercised when both the exercise notice and payments due under Sections 5(b)(iii) and 5(b)(iv) have been received by the Company for all Exercised Shares. The Administrator may designate a particular exercise notice to be used, but until a
designation is made, the exercise notice attached to this Agreement as Exhibit B may be used. 
 6.    Method
of Payment. The Participant may pay the exercise price for Exercised Shares by any of the following methods or a combination of methods: 

(a)    cash; 

(b)    check; 

(c)    wire transfer; 

(d)    consideration received by the Company under a formal cashless exercise program adopted by the Company; 

(e)    net exercise, pursuant to which Shares having a Fair Market Value equivalent to the exercise price of the portion
of the Option being exercised are withheld from otherwise deliverable Shares; 
 (f)    surrender of other Shares, as
long as the Company determines that accepting such Shares does not result in any adverse accounting consequences to the Company. If Shares are surrendered, the value of those Shares will be the Fair Market Value for those Shares on the date they are
surrendered; or 
 (g)    with the consent of the Administrator, such other form of legal consideration as may be
acceptable to the Administrator. 
 7.    Tax Obligations. 

(a)    Tax Withholding. 

(i)    No Shares will be issued to the Participant until he or she makes satisfactory arrangements (as determined by the
Administrator) for the payment of income, employment, social insurance, National Insurance Contributions, payroll tax, fringe benefit tax, payment on account, or other tax-related items related to his or her
participation in the Plan and legally applicable to him or her that the Administrator determines must be withheld (“Tax-Related Items”), including those that result from the grant,
vesting, or exercise of this Option, the subsequent sale of Shares acquired under this Option or the receipt of any dividends. If the Participant fails to make satisfactory arrangements for the payment of any
Tax-Related Items under this Agreement at the time of an attempted Option exercise, the Company may refuse to honor the exercise and refuse to deliver the Shares. 

(ii)    The Company has the right (but not the obligation) to satisfy any
Tax-Related Items by withholding from proceeds of a sale of Shares acquired upon the exercise of this Option arranged by the Company (on the Participant’s behalf pursuant to this authorization without
further consent). 

  
 -2- 

 (iii)    The Company has the right (but not the obligation) to
satisfy any Tax-Related Items by reducing the number of Shares otherwise deliverable to the Participant), and this will be the method by which such tax withholding obligations are satisfied until the Company
determines otherwise, subject to Applicable Laws. 
 (iv)    The Participant authorizes the Company and/or any
member(s) of the Company Group for whom he or she is performing services (each, an “Employer”) to withhold any Tax-Related Items legally payable by the Participant from his or her wages
or other cash compensation paid to the Participant by the Company and/or the Employer(s) or from proceeds of the sale of Shares. 

(v)    Further, if the Participant is subject to taxation in more than one jurisdiction between the Grant Date and the
date of any relevant taxable or tax withholding event, the Company and/or the Employer(s) or former Employer(s) may withhold or account for tax in more than one jurisdiction. 

(vi)    Regardless of any action of the Company or the Employer(s), the Participant acknowledges that the ultimate
liability for all Tax-Related Items is and remains his or her responsibility and may exceed the amount actually withheld by the Company or the Employer(s). The Participant further acknowledges that the Company
and the Employer(s) (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option; and (2) do not commit to and are under no
obligation to structure the terms of the grant or any aspect of this Option to reduce or eliminate his or her liability for Tax-Related Items or achieve any particular tax result. 

(b)    Tax Consultation. The Participant understands that the Participant may suffer adverse tax consequences as a
result of the grant, vesting and/or exercise of the Option, and/or with the purchase or disposition of the Shares subject to the Option. The Participant represents that the Participant has consulted with any tax consultants the Participant
deems advisable in connection with the purchase or disposition of such Shares and that the Participant is not relying on the Company for any tax advice. 

8.    Forfeiture or Clawback. This Option (including any proceeds, gains or other economic benefit received by the
Participant from any subsequent sale of Shares resulting from the exercise) will be subject to any compensation recovery or clawback policy implemented by the Company before the date of this Agreement and any policy referred to in the first sentence
of Section 15(b)(i) of the Plan. This includes any clawback policy adopted to comply with the requirements of Applicable Laws. For the avoidance of doubt, as set forth in Section 15(b) of the Plan, no recovery of compensation under a
clawback policy or otherwise will be an event that triggers or contributes to any right of Participant to resign for “good reason” or “constructive termination” (or similar term) under any agreement with the Company or a
member of the Company Group. Further, and for the avoidance of doubt, the reimbursement obligations set forth in Section 15(b)(iii) of the Plan apply to this Option. 

9.    Rights as Stockholder. The Participant’s rights as a stockholder of the Company (including the right to
vote and to receive dividends and distributions) will not begin until Shares have been issued and recorded on the records of the Company or its transfer agents or registrars. Following the date such Shares are issued, the Participant’s rights
as a stockholder will be limited by Section IV of the Notice of Grant. 

  
 -3- 

 10.    Acknowledgements and Agreements. The Participant’s
signature on the Notice of Grant accepting this Option indicates that: 
 (a)    HE OR SHE ACKNOWLEDGES AND AGREES THAT
THE VESTING OF THIS OPTION IS EARNED ONLY BY REMAINING IN CONTINUED ELIGIBLE SERVICE AND THAT BEING HIRED, GRANTED THIS OPTION, AND EXERCISING THE OPTION WILL NOT RESULT IN VESTING. 

(b)    HE OR SHE FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AND AGREEMENT DO NOT CREATE AN EXPRESS OR IMPLIED
PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER OR IN CONTINUED ELIGIBLE SERVICE FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND DOES NOT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE RIGHT OF THE EMPLOYER(S) TO TERMINATE
PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER OR TO TERMINATE PARTICIPANT’S CONTINUED ELIGIBLE SERVICE AT ANY TIME, WITH OR WITHOUT CAUSE, SUBJECT TO APPLICABLE LAWS. 

(c)    The Participant agrees that this Agreement and its incorporated documents reflect all agreements on its subject
matters and that he or she is not accepting this Agreement based on any promises, representations, or inducements other than those reflected in the Agreement. 

(d)    The Participant understands that exercise of this Option is governed strictly by Sections 5, 6, and 7 of this
Agreement and that failure to comply with those Sections could result in the expiration of this Option, even if an attempt was made to exercise. 

(e)    The Participant agrees that the Company’s delivery of any documents related to the Plan or this Option
(including the Plan, the Agreement, the Plan’s prospectus and any reports of the Company provided generally to the Company’s stockholders) to him or her may be made by electronic delivery, which may include the delivery of a link to a
Company intranet or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail, or any other means of electronic delivery specified by the Company. If the
attempted electronic delivery of such documents fails, the Participant will be provided with a paper copy of the documents. The Participant acknowledges that he or she may receive from the Company a paper copy of any documents that were delivered
electronically at no cost to him or her by contacting the Company by telephone or in writing. The Participant may revoke his or her consent to the electronic delivery of documents or may change the electronic mail address to which such documents are
to be delivered (if the Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic
mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents. 

(f)    The Participant may deliver any documents related to the Plan or this Option to the Company by e-mail or any other means of electronic delivery approved by the Administrator, but he or she must provide the Company or any designated third party administrator with a paper copy of any documents if his or her
attempted electronic delivery of such documents fails. 
 (g)    The Participant accepts that all good faith decisions
or interpretations of the Administrator regarding the Plan and Awards under the Plan are binding, conclusive, and final. No member of the Administrator will be personally liable for any such decisions or interpretations. 

  
 -4- 

 (h)    The Participant agrees that the Plan is established voluntarily
by the Company, is discretionary in nature, and may be amended, suspended, or terminated by the Company at any time, to the extent permitted by the Plan. 

(i)    The Participant agrees that the grant of this Option is voluntary and occasional and does not create any
contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted in the past. 

(j)    The Participant agrees that any decisions regarding future Awards will be in the Company’s sole discretion.

 (k)    The Participant agrees that he or she is voluntarily participating in the Plan. 

(l)    The Participant agrees that this Option and any Shares acquired under the Plan are not intended to replace any
pension rights or compensation. 
 (m)    The Participant agrees that this Option, any Shares acquired under the Plan,
and their income and value are not part of normal or expected compensation for any purpose, including for calculating any severance, resignation, termination, redundancy, dismissal,
end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits, or similar payments. 

(n)    The Participant agrees that the future value of the Shares underlying this Option is unknown, indeterminable, and
cannot be predicted with certainty. 
 (o)    The Participant understands that if the underlying Shares do not increase
in value, this Option will have no intrinsic monetary value. 
 (p)    The Participant understands that if this Option
is exercised, the value of each Share received on exercise may increase or decrease in value, even below the Exercise Price per Share. 

(q)    Unless otherwise required by Applicable Law, the Participant agrees that any right to vest in this Option will not
be extended by any notice period (e.g., the period that Participant is in Continued Eligible Status would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws (including
common law, if applicable) in the jurisdiction where he or she is a Service Provider or by his or her service agreement or employment agreement, if any). 

(r)    The Participant agrees that the Administrator has the exclusive discretion to determine when he or she is no
longer actively providing services or is no longer in Continued Eligible Service for purposes of this Option (including whether he or she is still considered to be in Continued Eligible Service while on a leave of absence). 

(s)    The Participant agrees that no member of the Company Group is liable for any foreign exchange rate fluctuation
between the Participant’s local currency and the United States Dollar that may affect the value of this Option or of any amounts due to him or her from the exercise of this Option or the subsequent sale of any Shares acquired upon exercise.

 (t)    The Participant has read and agrees to the Data Privacy provisions of Section 11 of this Agreement. 

  
 -5- 

 (u)    The Participant agrees that he or she has no claim or
entitlement to compensation or damages from any forfeiture of this Option resulting from the termination of his or her Continued Eligible Service status (for any reason whatsoever, whether or not later found to be invalid or in breach of employment
laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), and in consideration of the grant of this Option to which he or she is otherwise not entitled, he or she irrevocably agrees
never to institute any claim against the Company or any member of the Company Group, waives his or her ability (if any) to bring any such claim, and releases the Company and all members of the Company Group from any such claim. If any such claim is
nevertheless allowed by a court of competent jurisdiction, then the Participant’s participation in the Plan constitutes his or her irrevocable agreement to not pursue such claim and to execute any and all documents necessary to request
dismissal or withdrawal of such claim. 
 11.    Data Privacy.  

(a)    The Participant voluntarily consents to the collection, use and transfer, in electronic or other form, of his or
her personal data as described in this Agreement and any other Award materials (“Data”) by and among, as applicable, the Employer(s), the Company and any member of the Company Group for the exclusive purpose of
implementing, administering, and managing his or her participation in the Plan. 
 (b)    The Participant
understands that the Company and the Employer(s) may hold certain personal information about him or her, including, but not limited to, his or her name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all equity awards or any other entitlement to stock awarded, canceled, exercised, vested, unvested or outstanding in his or
her favor, for the exclusive purpose of implementing, administering, and managing the Plan. 
 (c)    The
Participant understands that Data will be transferred to one or more a stock plan service provider(s) selected by the Company, which may assist the Company with the implementation, administration, and management of the Plan. The Participant
understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections than his or her country. The
Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. The
Participant authorizes the Company and any other possible recipients that may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the sole purposes of implementing, administering and managing his or her participation in the Plan. 

(d)    The Participant understands that Data will be held only as long as is necessary to implement, administer and
manage his or her participation in the Plan. The Participant understands that if he or she resides in certain jurisdictions outside the United States, to the extent required by Applicable Laws, he or she may, at any time, request access to Data,
request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents given by accepting this Option, in any case without cost, by contacting in writing his or her local
human resources representative. Further, the Participant understands that he or she is providing these consents on a purely voluntary basis. If the Participant does not consent or if he or she later seeks to revoke his or her consent, neither the
Participant’s engagement as a 

  
 -6- 

 
Service Provider with the Employer(s) nor the Participant’s Continued Eligible Service status will be adversely affected; the only consequence of refusing or withdrawing his or her consent
is that the Company will not be able to grant him or her awards under the Plan or administer or maintain awards. Therefore, the Participant understands that refusing or withdrawing his or her consent may affect his or her ability to participate in
the Plan (including the right to retain this Option). The Participant understands that he or she may contact his or her local human resources representative for more information on the consequences of his or her refusal to consent or withdrawal of
consent. 
 12.    Miscellaneous 

(a)    Address for Notices. Any notice to be given to the Company under the terms of this Agreement must be addressed
to the Company at Cloudflare, Inc., 101 Townsend Street, San Francisco, CA 94107, until the Company designates another address in writing. Any notice to be given to the Participant shall be addressed to the Participant at the Participant’s
last address reflected on the Company’s records. Any notice shall be deemed duly given when sent via email or when sent by reputable overnight courier or by certified mail (return receipt requested) through the United States Postal Service.

 (b)    Non-Transferability of Option. This Option may not be
transferred other than by will or the laws of descent or distribution and may be exercised during the lifetime of the Participant only by him or her or his or her representative following a Disability. 

(c)    Binding Agreement. If this Option is transferred, this Agreement will be binding upon and inure to the
benefit of the heirs, legatees, legal representatives, successors, and assigns of the parties to this Agreement. 

(d)    Additional Conditions to Issuance of Stock. If the Company determines that the listing, registration,
qualification, or rule compliance of the Common Stock on any securities exchange or under any state, federal, or foreign law or the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or
desirable as a condition to the issuance of Shares to the Participant (or his or her estate), the Company will try to meet the requirements of any such state, federal, or foreign law or securities exchange and to obtain any such consent or approval
of any such governmental authority or securities exchange, but the Shares will not be issued until such conditions have been met in a manner acceptable to the Company. 

(e)    Captions. Captions provided in this Agreement are for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement. 
 (f)    Agreement Severable. If any provision of this
Agreement is held invalid or unenforceable, that provision will be severed from the remaining provisions of this Agreement and the invalidity or unenforceability will have no effect on the remainder of the Agreement. 

(g)    Choice of Law; Choice of Forum. The Plan, this Agreement, this Option, and all determinations made and
actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any
dispute that arises under the Plan, the Participant’s acceptance of this Option is his or her consent to the jurisdiction of the State of Delaware and his or her agreement that any such litigation will be conducted in the

  
 -7- 

 
Delaware Court of Chancery or the federal courts for the United States for the District of Delaware and no other courts, regardless of where he or she is performing services. 

(h)    Modifications to the Agreement. The Plan and this Agreement constitute the entire understanding of the
parties on the subjects covered. The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the
Plan can be made only in an express written contract executed by a duly authorized officer of the Company. The Company reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of
the Participant, to comply with Code Section 409A, to otherwise avoid imposition of any additional tax or income recognition under Code Section 409A in connection with this Option, or to comply with other Applicable Laws. 

(i)    Limitations Applicable to Section 16 Persons. The Plan, the Option and the
Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange
Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule. 

(j)    No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the
Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the Shares underlying the Option. The Participant is hereby advised to consult with his or her own
personal tax, legal and financial advisers regarding his or her participation in the Plan before taking any action related to the Plan. 

(k)    Waiver. The Participant acknowledges that a waiver by the Company of a breach of any provision of this
Agreement will not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of this Agreement by him or her. 

  
 -8- 

 EXHIBIT B 

CLOUDFLARE, INC. 
 2019
EQUITY INCENTIVE PLAN 
 EXERCISE NOTICE 

Cloudflare, Inc. 
 101 Townsend Street 

San Francisco, CA 94107 
 Attention: Stock Administration 

 

			
	Purchaser Name:	 	
	Grant Date of Stock Option (the “Option”):	 	
	Grant Number:	 	
	Exercise Date:	 	
	Number of Shares Exercised:	 	
	Per Share Exercise Price:	 	
	Total Exercise Price:	 	
	Exercise Price Payment Method:	 	
	Tax-Related Items Payment Method:	 	

 The information in the table above is incorporated in this Exercise Notice. 

1.    Exercise of Option. Effective as of the Exercise Date, I elect to purchase the Number of Shares Exercised
(“Exercised Shares”) under the Stock Option Agreement for the Option (which includes the Notice of Performance Stock Option Grant and Performance Stock Option Agreement (the “Notice of Grant”), the Terms and
Conditions of Performance Stock Option Grant, and any of the exhibits to these documents, referred to collectively as the “Agreement”) for the Total Exercise Price. Capitalized terms used but not defined in this Exercise Notice
have the meanings given to them in the 2019 Equity Incentive Plan (the “Plan”) and/or the Agreement. 

2.    Delivery of Payment. With this Exercise Notice, I am delivering the Total Exercise Price and any required Tax-Related Items to be paid in connection with the purchase of the Exercised Shares. I am paying my total purchase price by the Exercise Price Payment Method and the
Tax-Related Items by the Tax-Related Items Payment Method. 

 3.    Representations of Purchaser. I acknowledge that: 

(a)    I have received, read, and understood the Plan and the Agreement and agree to be bound by their terms and
conditions. 
 (b)    The exercise will not be completed until this Exercise Notice, Total Exercise Price, and all Tax-Related Payments are received by the Company. 
 (c)    I have no rights as a
stockholder of the Company (including the right to vote and receive dividends and distributions) on the Exercised Shares until the Exercised Shares have been issued and recorded on the records of the Company or its transfer agents or registrars.

 (d)    No adjustment will be made for a dividend or other right for which the record date is before the date of
issuance, except for adjustments under Section 12 of the Plan. 
 (e)    There may be adverse tax consequences to
exercising the Option, and I am not relying on the Company for tax advice and have had an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to exercising. 

(f)    The modification and choice of law provisions of the Agreement also govern this Exercise Notice. 

4.    Entire Agreement; Choice of Law; Choice of Forum. The Plan and the Agreement are incorporated by reference.
This Exercise Notice, the Plan, and the Agreement are the entire agreement of the parties with respect to the Options and this exercise and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect
to their subject matter. The Plan, the Agreement, and this Exercise Notice, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts
of law. For purposes of litigating any dispute that arises under the Plan (including without limitation under this Exercise Notice), the Participant consents to the jurisdiction of the State of Delaware and any such litigation being conducted in the
Delaware Court of Chancery or the federal courts for the United States for the District of Delaware and no other courts, regardless of where he or she is performing services. 
  

					
	 Submitted by:
	 		 	
			
	 PURCHASER
	 		 	
	  
	 	
	  
	 	
	 Signature
	 		 	

					
		
	 Address:
	 	  

	
	  

	
	  

  
 -2- 

 EXHIBIT C 

CLOUDFLARE, INC. 
 2019
EQUITY INCENTIVE PLAN 
 PERFORMANCE STOCK OPTION AWARD AGREEMENT 

CONSENT OF SPOUSE OR REGISTERED DOMESTIC PARTNER 

I,                     , spouse or
registered domestic partner of                     , have read and approve the Notice of Performance Stock Option Grant and Performance Stock Option
Agreement (the “Grant Notice”) to which this Consent of Spouse or Registered Domestic Partner is attached, Terms and Conditions of Performance Stock Option Grant attached to the Grant Notice, or any of the exhibits to such
documents (together, the “Option Agreement”). In consideration of issuing to my spouse or registered domestic partner the shares of the Class A common stock of Cloudflare, Inc. set forth in the Notice of
Grant, I hereby appoint my spouse or registered domestic partner as my attorney-in-fact in respect to the exercise of any rights under the Option Agreement and
agree to be bound by the provisions of the Option Agreement insofar as I may have any rights in said Option Agreement or any shares of the Class A common stock of Cloudflare, Inc. issued pursuant thereto under the community property laws or
similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Option Agreement. 
  

			
	Dated:                    	  	  

		  	Signature of Spouse or Registered Domestic Partner

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