Document:

exv10w2

Exhibit 10.2

STOCK OPTION GRANT AGREEMENT

UNDER THE

BROADSOFT, INC. 1999 STOCK INCENTIVE PLAN

     This Stock Option Grant Agreement (the “Agreement”) is entered into
_________, 20___ by and between BroadSoft, Inc., a Delaware corporation (the “Company”),
____________ (the “Participant”), and is effective as of ____________, 200___ (the “Vesting
Commencement Date”).

     In consideration of the premises, mutual covenants and agreements herein, the Company and the
Participant agree as follows:

     1. Grant of Option. The Company hereby grants to the Participant, pursuant to the
Broadsoft, Inc. 1999 Stock Incentive Plan (the “Plan”), an option to acquire shares of the
Company’s Common Stock (the “Option”) as follows:

          (a) Type of Option: Nonqualified Stock Option

          (b) Number of shares subject to the Option (“Shares”): _________

          (c) Exercise price per Share (“Exercise Price”): $_________

          (d) Expiration date of the Option (“Expiration Date”): ___ years

          (e) Early Exercise (as defined in Section 4) permitted: o yes o no

          (f) Payment method (unless otherwise indicated, method must be by cash or check):

	 	 	 	o Pursuant to a Regulation T Program if the Shares are publicly traded
	 
	 	 	 	o By delivery of already-owned shares if the Shares are publicly
traded

     2. Terminology. Unless stated otherwise in this Agreement, capitalized terms in this
Agreement shall have the meaning set forth in the Plan. Except where the context otherwise
requires, the term “Company” shall include BroadSoft, Inc. and its Affiliates.

     3. Exercise Of Option. 

          (a) Right to Exercise. Except as otherwise provided in this Agreement, this Option may be
exercised with respect to the portion of the Option that has vested to the extent it is vested at
any time and from time to time, in whole or in part, on or before the Expiration Date or earlier
termination of the Option. If Early Exercise has been approved by the Board, the
Option may be exercised at any time regardless of whether it is currently vested or not,
subject to the provisions of Section 4 below.

1.

 

          (b) Vesting. The Option shall become vested in accordance with the vesting schedule attached
hereto as Attachment I and made a part hereof (the “Vesting Schedule”); provided, however, that the
Participant is in the continuous employ of or in a consulting or advisory relationship with the
Company from the Grant Date through the applicable date upon which vesting is scheduled to occur.
Vesting may, in the Company’s discretion, continue if the Participant changes his status from an
employee of the Company or an Affiliate to a contractor, consultant, non-employee director or other
service provider. For purposes of this Agreement, the Participant’s employment relationship with
the Company shall not be deemed to terminate if the Participant takes any military leave, sick
leave, or other bona fide leave of absence approved by the Company of 90 days or less. In the
event of a leave in excess of 90 days, the Participant’s employment or service shall be deemed to
terminate on the 91st day of the leave unless the Participant’s right to re-employment
with the Company remains guaranteed by statute or contract. Notwithstanding the foregoing,
however, unless otherwise determined by the Company (or required by law), a leave of absence shall
be treated as employment service for purposes of vesting in additional shares of Common Stock
during such leave pursuant to Attachment I of this Agreement if and only if the leave of absence is
designated by the Company as (or required by law to be) a leave for which vesting credit is given.

          (c) Exercise Procedure. Subject to the conditions set forth in this Agreement, this Option
shall be exercised by delivery of written notice of exercise in the form attached hereto as
Attachment II on any business day to the Corporate Secretary of the Company. Such notice shall
specify the number of Shares in respect of which the Option is being exercised and shall be
accompanied by full payment of the Exercise Price for such Shares in accordance with Section 3(d)
of this Agreement. The exercise shall be effective upon receipt by the Corporate Secretary of the
Company of such written notice accompanied by the required payment or properly executed,
irrevocable instructions to effectuate a broker-assisted cashless exercise, if so permitted. No
fractional shares shall be issued pursuant to this Option.

          (d) Method of Payment. Payment of the Exercise Price shall be by delivery of cash, certified
or cashier’s check, or money order or in any other manner specifically determined by the
Administrator and permitted hereby as specifically set forth in Section 1 above, which may include
one or more of the following:

               (i) provided that at the time of exercise the Common Stock is publicly traded and quoted
regularly in a widely disseminated publicly-available quotation system, pursuant to a program
developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the
issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the
receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the
sales proceeds; or

               (ii) provided that at the time of exercise the Common Stock is publicly traded and quoted
regularly in a widely disseminated publicly-available quotation system, by delivery of
already-owned shares of Common Stock either that the Participant has held for the period required
to avoid a charge to the Company’s reported earnings (generally six months) or
that the Participant did not acquire, directly or indirectly, from the Company, that are owned
free and clear of any liens, claims, encumbrances or security interests, and that are valued at
Fair Market Value of the Shares being purchased upon exercise of the Option on the date of
exercise.

2.

 

“Delivery” for these purposes, in the sole discretion of the Company at the time the
Participant exercises the Option, shall include delivery to the Company of the Participant’s
attestation of ownership of such shares of Common Stock in a form approved by the Company.
Notwithstanding the foregoing, the Participant may not exercise this Option by tender to the
Company of Common Stock to the extent such tender would violate the provisions of any law,
regulation or agreement restricting the redemption of the Company’s stock.

          (e) Issuance of Shares upon Exercise. Upon due exercise of the Option, in whole or in part,
in accordance with the terms of this Agreement, the Company shall issue to the Participant, the
brokerage firm specified in the Participant’s delivery instructions pursuant to a broker-assisted
cashless exercise, or such other person exercising the Option, as the case may be, the number of
shares of Common Stock so paid for, in the form of fully paid and nonassessable stock and, shall
deliver certificates therefor as soon as practicable thereafter.

     4. Exercise Prior to Vesting (“Early Exercise”). If specifically noted in Section 1
above (i.e., Section 1 indicates that “Early Exercise” of your Option is permitted) and subject to
the provisions of your Option, you may elect at any time that is both (i) during the period of your
continuous service as an employee or consultant and (ii) during the term of your Option, to
exercise all or part of your Option, including the unvested portion of your Option; provided,
however, that:

          (a) a partial exercise of your Option shall be deemed to cover first vested shares of Common
Stock and then the earliest vesting installment of unvested shares of Common Stock;

          (b) any shares of Common Stock so purchased from installments that have not vested as of the
date of exercise shall be subject to the same Vesting Schedule applicable to the Option prior to
its exercise in accordance with Attachment I, and any unvested Shares shall be subject to the
following repurchase option in favor of the Company:

               (i) Upon any termination of the Participant’s employment or consulting, or advisory
relationship with the Company for any reason, the Company shall have the option to repurchase the
Shares acquired pursuant to the exercise of the Option that have not as yet vested as of such
termination date in accordance with the Vesting Schedule indicated on Attachment I (the “Unvested
Shares”) at the price paid by the Participant to acquire such Shares (the “Option Price”).

               (ii) The Participant shall, upon exercise of the Option, deliver to and deposit with the
Corporate Secretary of the Company (or the Corporate Secretary’s designee), as escrow agent (the
“Escrow Agent”), the stock certificate(s) evidencing all of the Participant’s Unvested Shares,
together with undated assignments therefor duly endorsed for transfer in blank.

               (iii) If the Company desires to exercise its option to purchase, it shall do so by
communicating in writing its election to purchase to the Participant, which communication shall
state the basis for the Company’s right to purchase the Unvested Shares,
the number of Unvested Shares the Company is electing to purchase and the aggregate Option
Price and shall be delivered in person or mailed to the Participant at his address set forth in
accordance with Section 15 below within seventy-five (75) days after the date of termination of

3.

 

the
Participant’s service. A copy of such notice accompanied by a request to release such Unvested
Shares from escrow shall be sent to the Escrow Agent. The sale of the Unvested Shares to be sold
to the Company pursuant to this Section shall be made at the principal executive office of the
Company on the 15th day following the date of the Company’s written election to purchase
(or if such 15th day is not a business day, then on the next succeeding business day).
Such sale shall be effected by release from escrow and delivery to the Company of (i) a certificate
or certificates evidencing the Unvested Shares to be purchased by it, and (ii) stock assignments
therefor endorsed by the Participant for transfer to the Company, against payment by the Company to
the Participant of the aggregate Option Price for such Unvested Shares to be purchased by the
Company, or in the event that Shares were purchased by deferred payment, through the offset of any
indebtedness owing to the Company by the Participant.

               (iv) Any vested Shares held in escrow shall be released to the Participant upon written
request by the Participant.

     5. Restrictions on Transfer.

          (a) Unvested Shares. In no event may Unvested Shares acquired pursuant to the Participant’s
Early Exercise right under this Option, if any, be transferred.

          (b) Vested Shares. In no event may vested Shares acquired pursuant to this Option be
transferred to any third party other than the Participant’s transfer of any or all of the
Participant’s vested Shares, either during the Participant’s lifetime or on death by will or the
laws of descent and distribution to one or more members of the Participant’s Immediate Family (as
defined below), to a trust for the exclusive benefit of the Participant or such Immediate Family
members, to any other entity owned exclusively by the Participant or such Immediate Family members,
or to any combination thereof (each, a “Permitted Transferee”); provided, however, that no
transfers made pursuant to any divorce or separation proceedings or settlements shall be exempt
from this Section 5. For purposes of this Agreement, the term “Immediate Family” shall mean
spouse, children, grandchildren, parents or siblings of the Participant, including in each case
adoptive relations.

          (c) Notwithstanding anything to the contrary contained elsewhere in this Section 5, any
proposed transferee or Permitted Transferee of the Participant shall receive and hold such Shares
subject to the provisions of this Agreement, and, as a condition of such transfer, shall deliver to
the Company a written instrument confirming that such transferee shall be bound by all of the terms
and conditions of this Agreement. There shall be no subsequent transfer of such Shares except in
accordance with this Section 5.

          (d) Effect of Prohibited Transfer. The Company shall not be required (i) to transfer on its
books any of the Shares that have been sold or transferred in violation of any of the provisions
set forth in this Agreement, or (ii) to treat as owner of such Shares or to pay dividends or other
distributions to any transferee to whom any such Shares shall have been so sold or transferred.

          (e) Termination of Restrictions on Transfer. The foregoing restrictions on transfer, except
for the provisions of Section 5(a), shall terminate upon the closing of the first

4.

 

public offering
of securities of the Company that is effected pursuant to a registration statement filed with, and
declared effective by, the Securities and Exchange Commission under the Securities Act of 1933, as
amended, that results in aggregate net proceeds to the Company of a least $15,000,000.

     6. Termination of Employment or Service. 

          (a) Exercise Period Following Cessation of Employment, Consulting or Advisory Relationship.
If the Participant ceases to be employed by, or in a consulting or advisory relationship with, the
Company for any reason other than death or total and permanent disability (as defined in Section
6(b) below), (i) this Option shall terminate immediately upon such cessation to the extent of any
unvested Shares and (ii) this Option shall be exercisable during the 90-day period following such
cessation with respect to any vested Shares, but in no event after the Expiration Date. Unless
sooner terminated, this Option shall terminate in its entirety upon the expiration of such 90-day
period.

          (b) Disability of Participant. Notwithstanding the provisions of Section 6(a) above, if the
Participant ceases his employment, consulting or advisory relationship with the Company as a result
of his or her total and permanent disability (within the meaning of Code Section 22(e)(3) and as
determined in good faith by the Company), this Option shall be exercisable during the twelve (12)
month period following such cessation with respect to any vested Shares, but in no event after the
Expiration Date. Unless sooner terminated, this Option shall terminate in its entirety upon the
expiration of such twelve (12) month period. The Administrator may require such proof of total and
permanent disability as the Administrator in its sole discretion deems appropriate and the
Administrator’s good faith determination as to whether the Participant is totally and permanently
disabled shall be final and binding on all parties concerned.

          (c) Death of Participant. If the Participant dies prior to the Expiration Date or other
termination of the Option, whichever occurs earlier, this Option shall be exercisable during the
eighteen (18) month period following the date of death of the Participant with respect to any
vested Shares, but in no event after the Expiration Date, by the Participant’s executor, personal
representative, or the person(s) to whom this Option is transferred by will or the laws of descent
and distribution. Unless sooner terminated, this Option shall terminate in its entirety upon the
expiration of such eighteen (18) month period.

     7. Market Stand-Off. Following the effective date of a registration statement of the
Company filed under the Securities Act, the Participant, for the duration specified by and to the
extent requested by the Company and its underwriter(s) of Common Stock or other securities of the
Company, shall not, directly or indirectly, sell, offer to sell, contract to sell (including,
without limitation, any short sale), grant any option to purchase, or otherwise transfer or dispose
of (other than to a donee who agrees to be similarly bound) any securities of the Company held by
the Participant (including, without limitation, any Shares acquired upon exercise of this Option)
at any time during such period, provided, however, that such agreement shall be applicable only to
the first such registration statement of the Company which covers Common
Stock (or other securities) to be sold on its behalf to the public in an underwritten
offering. The Participant further agrees to execute and deliver such other agreements as may be
reasonably

5.

 

requested by the Company and/or such underwriter(s) that are consistent with the
foregoing or that are necessary to give further effect thereto. In order to enforce the foregoing
covenant, the Company may impose stop-transfer instructions with respect to any Shares until the
end of such duration.

     8. Restrictive Legend. All certificates representing Shares acquired upon exercise
of this Option shall have affixed thereto a legend in substantially the following form, in addition
to any other legends that may be required under federal or state securities laws:

The securities represented by this stock certificate have not been
registered under the Securities Act of 1933 (the “Act”) or
applicable state securities laws (the “State Acts”), and shall not
be sold, pledged, hypothecated, donated, or otherwise transferred
(whether or not for consideration) by the holder except upon the
issuance to the corporation of a favorable opinion of its counsel
and/or submission to the corporation of such other evidence as may
be satisfactory to counsel for the corporation, to the effect that
any such transfer shall not be in violation of the Act and the State
Acts.”

The shares of stock represented by this certificate are subject to
restrictions on transfer and a market stand-off agreement, and may
be subject to forfeiture and/or options to repurchase, in each case,
as set forth in a certain Stock Option Grant Agreement between the
corporation and the registered owner of this certificate (or his
predecessor in interest), and no transfer of such shares may be made
without compliance with that Agreement. A copy of that Agreement is
available for inspection at the office of the Corporation upon
appropriate request and without charge.

     9. Adjustments and Business Combinations. 

          (a) Adjustments for Events Affecting Common Stock. In the event of changes in the Common
Stock of the Company by reason of any stock dividend, spin-off, split-up, recapitalization, merger,
consolidation, business combination or exchange of shares and the like, the Administrator shall, in
its discretion, make appropriate adjustments to the number, kind and price of shares covered by
this Option, and shall, in its discretion and without the consent of the Participant, make any
other adjustments in this Option, including but not limited to reducing the number of shares
subject to the Option or providing or mandating alternative settlement methods such as settlement
of the Option in cash or in shares of Stock or other securities of the Company or of any other
entity, or in any other matters which relate to the Option as the Administrator shall, in its sole
discretion, determine to be necessary or appropriate.

          (b) Adjustments for Unusual Events. The Administrator is authorized to make, in its
discretion and without the consent of the Participant, adjustments in the terms and
conditions of, and the criteria included in, the Option in recognition of unusual or
nonrecurring events affecting the Company, or the financial statements of the Company or any
Affiliate, or of

6.

 

changes in applicable laws, regulations, or accounting principles, whenever the
Administrator determines that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the Option or
the Plan.

          (c) Binding Nature of Adjustments. Adjustments under this Section 9 will be made by the
Administrator, whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. No fractional shares will be issued pursuant to this
Option on account of any such adjustments.

     10. Non-Guarantee of Employment, Consulting or Advisory Relationship. Nothing in the
Plan or this Agreement shall alter the at-will or other employment, consulting or advisory status
of the Participant, nor be construed as a contract of employment, consulting or advisory
relationship between the Company and the Participant, or as a contractual right of Participant to
continue in the employ of, or in a consulting or advisory relationship with, the Company, or as a
limitation of the right of the Company to discharge the Participant at any time with or without
cause or notice.

     11. No Rights as a Stockholder. The Participant shall not have any of the rights of
a stockholder with respect to the Shares of Common Stock that may be issued upon the exercise of
the Option until such Shares of Common Stock have been issued to him or her upon the due exercise
of the Option. No adjustment shall be made for dividends or distributions or other rights for which
the record date is prior to the date such certificate or certificates are issued.

     12. Withholding of Taxes. At the time the Option is exercised, in whole or in part,
or at any time thereafter as requested by the Company, the Participant hereby authorizes
withholding from payroll or any other payment of any kind due the Participant and otherwise agrees
to make adequate provision for foreign, federal, state and local taxes required by law to be
withheld, if any, which arise in connection with the Option. The Company may require the
Participant to make a cash payment to cover any withholding tax obligation as a condition of
exercise of the Option. If the Participant does not make such payment when requested, the Company
may refuse to issue any Common Stock certificate under the Plan until arrangements satisfactory to
the Administrator for such payment have been made.

     The Administrator may, in its sole discretion, permit the Participant to satisfy, in whole or
in part, any withholding tax obligation which may arise in connection with the Option either by
electing to have the Company withhold from the shares to be issued upon exercise that number of
shares, or by electing to deliver to the Company already-owned shares, in either case having a Fair
Market Value equal to the amount necessary to satisfy the statutory minimum withholding amount due.

     13. Securities Law Compliance. Notwithstanding anything to the contrary contained
herein, Participant may not exercise the Option unless the shares of Common Stock issuable upon
such exercise are then registered under the Securities Act or, if such Shares are not then so
registered, the Company has determined that such exercise and issuance would be exempt from the
registration requirements of the Securities Act. The exercise of the Option must
also comply with other applicable laws and regulations governing your option, and Participant

7.

 

may not exercise the Option if the Company determines that such exercise would not be in material
compliance with such laws and regulations.

     14. Nontransferability of Option. This Option is nontransferable otherwise than by
will or the laws of descent and distribution and during the lifetime of the Participant, the Option
may be exercised only by the Participant or, during the period the Participant is under a legal
disability, by the Participant’s guardian or legal representative. Except as provided above, the
Option may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process.

     15. Notices.  All notices and other communications made or given pursuant to this
Agreement shall be in writing and shall be sufficiently made or given if hand delivered or mailed
by certified mail, addressed to the Participant at the address contained in the records of the
Company, or addressed to the Administrator, care of the Company for the attention of its Corporate
Secretary at its principal office or, if the receiving party consents in advance, transmitted and
received via telecopy or via such other electronic transmission mechanism as may be available to
the parties.

     16. Entire Agreement.  This Agreement contains the entire agreement between the
parties with respect to the stock option granted hereunder. Any oral or written agreements,
representations, warranties, written inducements, or other communications made prior to the
execution of this Agreement with respect to the stock option granted hereunder shall be void and
ineffective for all purposes.

     17. Amendment.  This Agreement may not be modified in a manner that would have a
materially adverse effect on the Option as determined in the discretion of the Administrator,
except as provided in the Plan or in a written document signed by each of the parties hereto.

     18. Conformity with Plan. This Agreement is intended to conform in all respects
with, and is subject to all applicable provisions of, the Plan, which is incorporated herein by
reference. Inconsistencies between this Agreement and the Plan shall be resolved in accordance
with the terms of the Plan. In the event of any ambiguity in this Agreement or any matters as to
which this Agreement is silent, the Plan shall govern. A copy of the Plan is available upon
request to the Administrator.

     19. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, other than the conflict of laws principles thereof.

     20. Headings.  The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

8.

 

     In Witness Whereof, the Company has caused this Agreement to be executed by its duly
authorized officer as of the date first above written.

	 	 	 	 	 
	 	Broadsoft, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     The undersigned hereby acknowledges that he/she has carefully read this Agreement and the Plan
and agrees to be bound by all of the provisions set forth in such documents.

	 	 	 	 	 
	 	PARTICIPANT

 	 
	Date: ________________ 	
 	 
	 	Name:  	 	 
	 	 	 
	 

Enclosure: BroadSoft, Inc. 1999 Stock Incentive Plan

 

 

ATTACHMENT I

VESTING SCHEDULE

[insert individual participant vesting schedule here]

 

 

ATTACHMENT II

NOTICE OF EXERCISE

	 	 	 
	BroadSoft, Inc. 

200 Perry Parkway, Suite 1

Gaithersburg, MD 20877

	 	Date of Exercise: __________________

Ladies and Gentlemen:

     This constitutes notice under my stock option that I elect to purchase the number of shares
for the price set forth below.

	 	 	 
	Type of option (check one):

	 	Nonqualified Stock Option
	 
	 	 
	Stock option dated:

	 	_____________
	 
	 	 
	Number of shares as
to which option is
exercised:

	 	_____________
	 
	 	 
	Certificates to be
issued in name of:

	 	_____________
	 
	 	 
	Total exercise price:

	 	$____________
	 
	 	 
	Cash payment delivered
herewith:

	 	$____________
	 
	 	 
	[IF PERMITTED UNDER STOCK OPTION GRANT AGREEMENT:]
	 
	 	 
	Value of ___ shares of
BroadSoft, Inc. common
stock delivered herewith1:

	 	$____________

     By this exercise, I agree (i) to provide such additional documents as you may require pursuant
to the terms of the 1999 Stock Incentive Plan, and (ii) to provide for the payment by me to you (in
the manner designated by you) of your withholding obligation, if any, relating to the exercise of
this option.

 

			
	1	 	Shares must meet the public trading
requirements set forth in the option. Shares must be valued in accordance with
the terms of the option being exercised, must have been owned for the minimum
period required in the option, and must be owned free and clear of any liens,
claims, encumbrances or security interests. Certificates must be endorsed or
accompanied by an executed assignment separate from certificate.

 

 

     I hereby make the following certifications and representations with respect to the number of
shares of Common Stock of the Company listed above (the “Shares”), which are being acquired by me
for my own account upon exercise of the Option as set forth above:

     I acknowledge that the Shares have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), and are deemed to constitute “restricted securities” under Rule 701
and “control securities” under Rule 144 promulgated under the Securities Act. I warrant and
represent to the Company that I have no present intention of distributing or selling said Shares,
except as permitted under the Securities Act and any applicable state securities laws.

     I further acknowledge that I will not be able to resell the Shares for at least ninety days
(90) after the stock of the Company becomes publicly traded (i.e., subject to the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934) under Rule 701, and
that more restrictive conditions apply to affiliates of the Company under Rule 144.

     I further acknowledge that all certificates representing any of the Shares subject to the
provisions of the Option shall have endorsed thereon appropriate legends reflecting the foregoing
limitations, as well as any legends reflecting restrictions pursuant to the Company’s Certificate
of Incorporation, Bylaws and/or applicable securities laws.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
 	 
	 	Participantexv10w3

Exhibit 10.3

COMMON STOCK PURCHASE AGREEMENT

     This
Agreement dated as of ______, 200___, is entered into by and between
BroadSoft, Inc., a Delaware Corporation (the “Company”),
 and _________, an
employee of the Company (the “Purchaser”).

     Whereas, the Company wishes to issue and sell to Purchaser shares of authorized
Common Stock, $.01 par value, of the Company (the “Purchase Shares”), as a condition of Purchaser’s
employment with the Company; and

     Whereas, the Purchaser wishes to purchase the Purchase Shares on the terms and
subject to the conditions set forth in this Agreement;

     Now, Therefore, in consideration of the mutual promises and covenants contained in
this Agreement, the parties hereto agree as follows:

ARTICLE 1

The Purchase Shares

     Section 1.1 Issuance; Sale and Delivery of the Purchase Shares. Subject to the terms and
conditions of this Agreement, the Company hereby sells and issues to the Purchaser, and the
Purchaser hereby purchases, _________ (______) Purchase Shares for the purchase price of
 $______
per share, for an aggregate purchase price of $______  (the “Aggregate Purchase Price”). At
Closing, the Purchase Shares will be placed in escrow in accordance with the Company’s Stock
Restriction Agreement (the “Stock Restriction Agreement”), a form of which is attached hereto as
Exhibit A.

     Section 1.2 Closing. The closing shall take place at the offices of Cooley Godward Kronish
LLP, One Freedom Square, Reston Town Center, 11951 Freedom Drive, Reston, VA 20190-5601 on
______, 200___, or at such other location, date and time as may be agreed upon between the
Purchaser and the Company (the “Closing”). At the Closing, the Company shall issue and deliver to
Cooley Godward Kronish LLP, the Escrow Agent, on behalf of the Purchaser a stock certificate in
definitive form, registered in the name of the Purchaser representing the Purchase Shares purchased
by him at Closing. As payment in full for the Purchase Shares purchased under this Agreement, and
against delivery of the certificate therefor as aforesaid, as of the date of the Closing, the
Purchaser shall deliver to the Company by check, cash or wire transfer an amount equal to the
Aggregate Purchase Price.

     Section 1.3 Stock Restriction Agreement. The Purchaser hereby agrees to become party to the
Stock Restriction Agreement.

1.

 

ARTICLE 2

Representations And Warranties Of The Company

     Section 2.1 Organization and Standing. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has full corporate power
and authority to conduct its business as presently conducted and as proposed to be conducted by it
and to enter into this Agreement and to carry out the transactions contemplated by this Agreement.

     Section 2.2 Authorization of Agreements, etc. The execution and delivery by the Company of
this Agreement, and the performance by the Company of its obligations hereunder, have been duly
authorized by all necessary corporate action and the Purchase Shares, when issued, sold and
delivered against payment therefor in accordance with the provisions of this Agreement, will be
duly and validly issued, fully paid and nonassessable, and free and clear of any option, pledge,
call, contract or encumbrance whatsoever.

ARTICLE 3

Representations And Warranties Of The Purchaser

     The Purchaser represents and warrants to the Company that: (i) the Purchaser has full power
and authority to execute and deliver this Agreement, to perform the obligations of this Agreement
and to acquire the Purchase Shares and, (ii) this Agreement constitutes the valid and legally
binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms.

ARTICLE 4

Dividend Policy

     The Company intends to retain earnings for use in its business and, therefore, does not
anticipate paying any cash dividends in the foreseeable future.

ARTICLE 5

Miscellaneous

     Section 5.1 Successors and Assigns. The provisions of this Agreement shall be binding upon,
and inure to the benefit of, the respective permitted successors, assigns, heirs, executors and
administrators of the parties hereto.

     Section 5.2 Survival of Representations and Warranties. All agreements, representations and
warranties of the Company contained herein shall survive the execution and delivery of this
Agreement and the closing of the transaction contemplated hereby.

2.

 

     Section 5.3 Expenses. The Company shall pay all reasonable expenses incurred by the Purchaser
in connection with the transaction contemplated hereby, whether or not such transaction shall be
consummated.

     Section 5.4 Notices. All notices, requests, consents, and other communications under this
Agreement shall be in writing and shall be delivered by hand or mailed by first class certified or
registered mail, return receipt requested, postage prepaid:

     If to the Company, at [Insert Address],
 Attention: _________, or at such other address, or
addresses as may have been furnished in writing by the Company to the Purchaser, with a copy to
Mark Spoto, Esq., Cooley Godward Kronish LLP, One Freedom Square, Reston Town Center, 11951 Freedom
Drive, Reston, VA 20190-5601;

     If to the Purchaser, to [Insert Name], at [Insert Address], or at such other address or
addresses as may have been furnished to the Company in writing by the Purchaser.

     Notices provided in accordance with this Section 5.4 shall be deemed delivered upon personal
delivery or 48 hours after deposit in the mail.

     Section 5.5 Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice-versa.

     Section 5.6 Entire Agreement. This Agreement embodies the entire agreement and understanding
between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings relating to such subject matter.

     Section 5.7 Amendments and Waivers. This Agreement may not be amended or modified, and no
provision’ hereof may be waived without the written consent of the Company and the Purchaser. No
waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more
instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term,
condition or provision.

     Section 5.8 Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     Section 5.9 Headings. The headings of the sections, subsections, and paragraphs of this
Agreement have been added for convenience only and shall not be deemed to be a part of this
Agreement.

     Section 5.10 Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision.

     Section 5.11 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware.

(SIGNATURES ON FOLLOWING PAGE)

3.

 

     In Witness Whereof, the undersigned have hereunto set their hands to this Common
Stock Purchase Agreement as of the date first set forth above.

	 	 	 	 	 
	 	Company:

BroadSoft, Inc.

 	 
	 	By:  	 	, 
	 	 	___________, President 	 
	 	 	 	 
	 	Purchaser:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 

	 	Address: 	 	 

4.

 

EXHIBIT A

STOCK RESTRICTION AGREEMENT

     This
Stock Restriction Agreement (the “Agreement”) is made as of the ___ day of
_________ (the “Effective Date”), by and between
BroadSoft, Inc., a Delaware
corporation (the “Company”), and _______________ an employee of the Company (the “Holder”).

     For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

     1. Restricted Shares.

          (a) Purchase of
 Restricted Shares. On _________, _________, the Company sold to Holder and
Holder purchased ______ shares of the Company’s common stock, $0.01 par value per share (the
“Common Stock”) (such ______ shares and any additional shares issued in respect of the same
being referred to as the “Restricted Shares”), pursuant to that certain Common Stock Purchase
Agreement, dated ______, ______, between the Holder and the Company.

          (b) Vesting. The Holder shall become vested in all of the Restricted Shares as follows: the
Holder becomes vested in 25.0% of the total Restricted Shares on ______, ______, (the “Initial
Vesting Date”), and becomes vested in an incremental 6.25% of the Restricted Shares on each
quarterly anniversary of the Initial Vesting Date (each referred to as a “Vesting Date”), so that
the Holder is vested in 100% of the Restricted Shares on ______, ______; provided, however, that
the Holder is in the continuous employ or service of the Company or an -affiliated company at all
times from the Effective Date to ______, ______, in order for 100% of the Restricted Shares
to vest. The number of total Restricted Shares that become vested on the Initial Vesting Date or
any Vesting Date thereafter shall be rounded down to the nearest whole share; provide , however,
that with respect to the vesting increment that occurs on ______, ______, the number of
Restricted Shares that become vested on such Vesting Date shall be rounded up to the nearest whole
share.

          (c) Acceleration. Unless the Holder’s employment or consulting relationship has earlier
terminated, the vesting schedule set forth above in this Section I (b), shall be accelerated such
that:

               (i) all of the then unvested Restricted Shares shall immediately vest upon the occurrence of
(x) Holder’s total and permanent disability (within the meaning of Code Section 22(e)(3) and as
determined in good faith by the Company), or (y) termination of Holder’s employment or consulting
relationship with the Company as a result of Holder’s death, and

               (ii) 25% of the then unvested Restricted Shares shall immediately vest upon the occurrence of
a Change in Control.

1.

 

          (d) Termination. Upon termination of the Holder’s employment or consulting relationship with
the Company as a result of a Change in Control, or if a Holder’s employment with the Company is
terminated “Without Cause” or for “Good Reason,” all such Holder’s nonvested Restricted Shares
shall vest immediately upon receipt of notice of such termination of employment.

          (e) Definitions. For purposes of this Section, the following definitions shall apply:

               “Change in Control” shall mean (i) the sale of all or substantially all of the assets of the
Company, (ii) the acquisition of more than 51% of the outstanding capital stock of the Company by a
third party, (iii) any merger, share exchange, consolidation or other reorganization or business
combination of the Company if immediately after such transaction either (A) persons who were
directors of the Company immediately prior to such transaction do not constitute at least a
majority of the directors of the surviving entity, or (B) persons who hold a majority of the
capital stock of the surviving entity are not persons who held a majority of the capital stock of
the Company immediately prior to such transaction; provided, however, that the term “Change in
Control” shall not include any transaction pursuant to which shares of capital stock of the Company
are transferred or issued to any trust, charitable organization, foundation, family partnership or
other entity controlled directly or indirectly by, or established for the benefit of their
immediate family members (including, children, grandchildren, spouses, parents, and siblings, in
each case to include adoptive relations), or transferred to any such immediate family members.

               “Without Cause” shall mean any reason other than (i) insubordination or willful and continued
failure by the Holder to comply with the reasonable material directions of an officer of the
Company or the continued willful neglect or refusal by the Holder to perform the Holder’s duties or
responsibilities (unless such duties or responsibilities are significantly and adversely changed
and the Holder has objected to such changes in writing), after written notice that such actions are
occurring has been furnished by the Company to the Holder and the Holder has been afforded a
reasonable opportunity of at least forty-five (45) days to cure same; or fraud, embezzlement,
theft, or other criminal acts constituting a felony under U.S. laws;

               “Good Reason” shall mean, without such Holder’s express written consent, the Company’s
requirement that such Holder be based at a location which is at least seventy-five (75) miles
further from such Holder’s current primary residence than is such residence from the Company’s
current headquarters, except for required travel on the Company’s business.

     2. Restrictions on Transfer.

          (a) Unvested Restricted Shares. In no event may unvested Restricted Shares be transferred.

          (b) Vested Restricted Shares. In no event may vested Restricted Shares be transferred by the
Holder to any third party other than the Holder’s transfer of any or all of the Holder’s vested
Restricted Shares, either during the Holder’s lifetime or on death by will or the

2.

 

laws of descent and distribution to one or more members of the Holder’s immediate family, to a
trust for the exclusive benefit of the Holder or such immediate family members, to any other entity
owned exclusively by the Holder or such immediate family members, or to any combination thereof
(each, a “Permitted Transferee”); provide , however, that no transfers made pursuant to any divorce
or separation proceedings or settlements shall be exempt from this Section 2. “Immediate family”
shall mean spouse, children, grandchildren, parents or siblings of the Holder, including in each
case adoptive relations.

          Notwithstanding anything to the contrary contained elsewhere in this Section 2, any proposed
transferee or Permitted Transferee of the Holder shall receive and hold such stock subject to the
provisions of this Agreement, and, as a condition of such transfer, shall deliver to the Company a
written instrument confirming that such transferee shall be bound by all of the terms and
conditions of this Agreement. There shall be no subsequent transfer of such stock except in
accordance with this Section 2.

          (c) Termination of Restrictions on Transfer. The foregoing restrictions on transfer, except
for the provisions of Section 2(a), shall terminate upon the closing of the first public offering
of securities of the Company that is effected pursuant to a registration statement filed with, and
declared effective by, the Securities and Exchange Commission under the Securities Act of 1933, as
amended, that results in aggregate net proceeds to the Company of at least $15,000,000.

     3. Effect of Prohibited Transfer. The Company shall not be required (a) to transfer on its
books any of the Restricted Shares that have been sold or transferred in violation of any of the
provisions set forth in this Agreement, or (b) to, treat as owner of such Restricted Shares or to
pay dividends or other distributions to any transferee to whom any such Restricted Shares shall
have been so sold or transferred.

     4. Company’s Repurchase Option; Escrow.

          (a) (i) Upon any termination of the Holder’s employment or consulting relationship with the
Company for any reason other than under Section 1(d) above, the Company shall have the option to
repurchase the Holder’s unvested Restricted Shares at the price paid by the Holder to acquire such
shares (i.e., $_________ per share) (the “Option Price”);

     For purposes of this Agreement, the Holder’s employment relationship with the Company shall
not be deemed to terminate if the Holder takes any military leave, sick leave, or other bona fide
leave of absence approved by the Company of 90 days or less. In the event of a leave in excess of
90 days, the Holder’s employment or service shall be deemed to terminate on the 91st day of the
leave unless the Holder’s right to re-employment with the Company remains guaranteed by statute or
contract. Notwithstanding the foregoing, however, unless otherwise determined by the Company (or
required by law), a leave of absence shall be treated as employment service for purposes of vesting
in additional shares of Restrictive Stock during such leave pursuant to Section l(b) of this
Agreement if and only if the leave of absence is designated by the Company as (or required by law
to be) a leave for which vesting credit is given.

3.

 

          (b) The Holder shall, upon execution of this Agreement, deliver to and deposit with
_________, as escrow agent (the “Escrow Agent”), pursuant to the escrow instructions attached
hereto as Exhibit A (“Escrow Instructions”) the stock certificate(s) evidencing all of the Holder’s
Restricted Shares, together with undated assignments therefor duly endorsed for transfer in blank.

          (c) If the Company desires to exercise its option to purchase, it shall do so by communicating
in writing its election to purchase to the Holder, which communication shall state the basis for
the Company’s right to purchase the unvested Restricted Shares, the number of unvested Restricted
Shares the Company is electing to purchase and the aggregate Option Price and shall be delivered in
person or mailed to the Holder at his address set forth in accordance with Section 15 below within
seventy-five (75) days. A copy of such notice accompanied by a request to release such unvested
Restricted Shares from escrow shall be sent to the Escrow Agent. The sale of the unvested
Restricted Shares to be sold to the Company pursuant to this Section 4 shall be made at the
principal executive office of the Company on the 15th day following the date of the Company’s
written election to purchase (or if such 15th day is not a business day, then on the next
succeeding business day). Such sale shall be effected by release from escrow and delivery to the
Company of (i) a certificate or certificates evidencing the unvested Restricted Shares to be
purchased by it, and (ii) stock assignments therefor endorsed by the Holder for transfer to the
Company, against payment by the Company to the Holder of the aggregate Option Price for such
unvested Restricted Shares to be purchased by the Company.

          (d) Any vested Restricted Shares held in escrow shall be released to the Holder upon written
request by the Holder in compliance with the provisions of the Escrow Instructions.

     5. Restrictive Legend. All certificates representing Restricted Shares shall have affixed
thereto a legend in substantially the following form, in addition to any other legends that may be
required under federal or state securities laws:

“The securities represented by this stock certificate have not been
registered under the Securities Act of 1933 (the “Act”) or
applicable state securities laws (the “State Acts”), and shall not
be sold, pledged, hypothecated, donated, or otherwise transferred
(whether or not for consideration) by the holder except upon the
issuance to the Corporation of a favorable opinion of its counsel
and/or submission to the Corporation of such other evidence as may
be satisfactory to counsel for the Corporation, to the effect that
any such transfer shall not be in violation of the Act and the State
Acts.

The shares of stock represented by this certificate are subject to
forfeiture, restrictions on transfer, and a market stand-off
agreement set forth in a certain Stock Restriction Agreement between
the corporation and the registered-owner of this certificate (or his
predecessor in interest), and no transfer of such Restricted Shares
may be made without compliance with that Agreement. A

4.

 

copy of that Agreement is available for inspection at the office of
the Corporation upon appropriate request and without charge.”

     6. Adjustments for Stock Splits, Stock Dividends, etc.

          (a) If from time to time there is any spin-off, stock split-up, stock dividend, stock
distribution or other reclassification of the Common Stock of the Company, any and all new,
substituted or additional securities to which the Holder is entitled by reason of his or her
ownership of the Restricted Shares shall be immediately subject to the restrictions on transfer and
other provisions of this Agreement in the same manner and to the same extent as the Restricted
Shares.

          (b) If the Restricted Shares are converted into or exchanged for, or stockholders of the
Company receive by reason of any distribution in total or partial liquidation, securities of
another corporation, or other property (including cash), pursuant to any merger of the Company or
acquisition of its assets, then the rights of the Company under this Agreement shall inure to the
benefit of the Company’s successor, and this Agreement shall apply to the securities or other
property received upon such conversion, exchange or distribution in the same manner and to the same
extent as the Restricted Shares.

     7. Market Stand-Off. Following the effective date of a registration statement of the Company
filed under the Securities Act, the Holder, for the duration specified by and to the extent
requested by the Company and an underwriter of Common Stock or other securities of the Company,
shall not directly or indirectly sell, offer to sell, contract to sell (including, without
limitation, any short sale), grant any option to purchase, or otherwise transfer or dispose of
(other than to a donee who agrees to be similarly bound) any securities of the Company held by the
Holder at any time during such period except Common Stock (or other securities) included in such
registration, provided, however, that:

          (a) such agreement shall be applicable only to the first such registration statement of the
Company which covers Common Stock (or other securities) to be sold on its behalf to the public in
an underwritten offering; and

          (b) all officers and directors of the Company and all persons with registration rights with
respect to the Company’s capital stock enter into similar agreements.

     8. Stockholders’ Agreement. Upon the request of the Company and prior to the receipt of any
Restricted Shares that have vested, the Holder hereby agrees to execute and become party to the
Company’s Stockholders’ Agreement in effect at such time.

     9. Withholding Taxes. The Holder acknowledges and agrees that the Company has the right to
deduct from payments of any kind otherwise due to the Holder any federal, state or local taxes of
any kind required by law to be withheld with respect to the purchase’, sale, or vesting of the
Restricted Shares by the Holder.

     10. Invalidity or Unenforceability. It is the intention of the Company and the Holder that
this Agreement shall be enforceable to the fullest extent allowed by law. In the event that a court
having jurisdiction holds any provision of this Agreement to be invalid or

5.

 

unenforceable, in whole or in part, the Company and the Holder agree that, if allowed by law,
that provision shall be reduced to the degree necessary to render it valid and enforceable without
affecting the rest of this Agreement.

     11. Waiver. No delay or omission by the Company in exercising any right under this Agreement
shall operate as a waiver of that or any other right. A waiver or consent given by the Company on
any one occasion shall be effective only in that instance and shall not be construed as a bar or
waiver of any right on any other occasion.

     12. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
Company and the Holder and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 2 of this Agreement. The Company may assign its rights under this Agreement to a third
party, provided such assignee agrees to be bound by all of the Company’s obligations under this
Agreement.

     13. No Rights To Employment. Nothing contained in this Agreement shall be construed as giving
the Holder any right to be retained, in any position, as an employee or consultant of the Company
for any period of time or to restrict the Company’s right to terminate the Holder’s employment or
consulting relationship at any time with or without cause or notice.

     14. No Rights of Stockholder. The Holder shall not have any of the rights of a stockholder
with respect to the shares of Restrictive Stock that have not vested. No adjustment shall be made
for dividends or distributions or other rights for which the record date is prior to the date of
vesting in the shares of Restrictive Stock.

     15. Notice. All notices required or permitted hereunder shall be in writing and deemed
effectively given upon personal delivery or upon deposit in the United States Post Office, by
registered or certified mail, postage prepaid, addressed to the other party hereto at the address
shown beneath his or its respective signature to this Agreement, or at such other address or
addresses as either party shall designate to the other in accordance with this Section 15.

     16. Pronouns. Whenever the context may require, any pronouns used in this Agreement shall
include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and
pronouns shall include the plural, and vice-versa.

     17. Entire Agreement. This Agreement constitutes the entire agreement between the parties,
and supersedes all prior agreements and understandings, relating to the subject matter of this
Agreement.

     18. Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Holder.

     19. Governing Law. This Agreement shall be construed, interpreted and enforced in accordance
with the laws of the State of Maryland, without application of the principles of conflict of laws
thereof.

(SIGNATURES ON FOLLOWING PAGE)

6.

 

     In Witness Whereof, the parties hereto have executed this Stock Restriction Agreement
as of the day and year first above written.

	 	 	 	 	 
	 	BroadSoft, Inc.

 	 
	 	By:  	 	 
	 	 	Michael Tessler 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	Holder:

 	 
	 	
 	 
	 	Name:  	 	 
	 	Address: 	 	 
	 	 	 	 
	 

7.

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