Document:

Nonemployee Director Deferred Compensation Plan

 Exhibit 10.21 
  
 E.PIPHANY, INC. 
  
 NONEMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN 
  
  
 (Amended and Restated Effective August 15, 2003) 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	 SECTION 1 DEFINITIONS
	  	1
				
	 	  	1.1	  	“Affiliate”	  	1
	 	  	1.2	  	“Beneficiary”	  	1
	 	  	1.3	  	“Board of Directors”	  	1
	 	  	1.4	  	“Code”	  	1
	 	  	1.5	  	“Committee”	  	1
	 	  	1.6	  	“Company”	  	1
	 	  	1.7	  	“Compensation”	  	2
	 	  	1.8	  	“Compensation Deferrals”	  	2
	 	  	1.9	  	“Participant”	  	2
	 	  	1.10	  	“Participant’s Account” or “Account”	  	2
	 	  	1.11	  	“Plan”	  	2
	 	  	1.12	  	“Plan Year”	  	2
	 	  	1.13	  	“Nonemployee Director”	  	2
		
	 SECTION 2 PARTICIPATION
	  	2
				
	 	  	2.1	  	Participation.	  	2
	 	  	2.2	  	Automatic Suspension of Compensation Deferrals.	  	3
	 	  	2.3	  	Termination of Participation.	  	3
		
	 SECTION 3 COMPENSATION DEFERRAL ELECTIONS
	  	3
				
	 	  	3.1	  	Compensation Deferrals.	  	3
	 	  	3.2	  	Crediting of Compensation Deferrals.	  	4
	 	  	3.3	  	Deemed Investment Return on Accounts.	  	4
	 	  	3.4	  	Form of Payment.	  	4
	 	  	3.5	  	Term of Deferral.	  	4
	 	  	3.6	  	Changes in Elections as to Term for Payment.	  	5
		
	 SECTION 4 ACCOUNTING
	  	5
				
	 	  	4.1	  	Participants’ Accounts.	  	5
	 	  	4.2	  	Participants Remain Unsecured Creditors.	  	5
	 	  	4.3	  	Accounting Methods.	  	5
	 	  	4.4	  	Reports.	  	5
		
	 SECTION 5 DISTRIBUTIONS
	  	5
				
	 	  	5.1	  	Normal Time for Distribution.	  	5
	 	  	5.2	  	Latest Permissible Distribution Date.	  	5
	 	  	5.3	  	Beneficiary Designations.	  	6

  

 - i - 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	  	 	  	 	  	Page

	 	  	5.4	  	Payments to Incompetents.	  	6
	 	  	5.5	  	Undistributable Accounts.	  	6
	 	  	5.6	  	Committee Discretion.	  	7
		
	 SECTION 6 PARTICIPANT’S INTEREST IN ACCOUNT
	  	7
				
	 	  	6.1	  	Compensation Deferral Contributions.	  	7
		
	SECTION 7 ADMINISTRATION OF THE PLAN	  	7
				
	 	  	7.1	  	Committee.	  	7
	 	  	7.2	  	Actions by Committee.	  	7
	 	  	7.3	  	Powers of Committee.	  	7
	 	  	7.4	  	Decisions of Committee.	  	8
	 	  	7.5	  	Administrative Expenses.	  	8
	 	  	7.6	  	Eligibility to Participate.	  	9
	 	  	7.7	  	Indemnification.	  	9
		
	 SECTION 8 FUNDING
	  	9
				
	 	  	8.1	  	Unfunded Plan.	  	9
		
	 SECTION 9 MODIFICATION OR TERMINATION OF PLAN
	  	9
				
	 	  	9.1	  	Company’s Obligation is Limited.	  	9
	 	  	9.2	  	Right to Amend or Terminate.	  	9
	 	  	9.3	  	Effect of Termination.	  	9
		
	 SECTION 10 GENERAL PROVISIONS
	  	10
				
	 	  	10.1	  	Inalienability.	  	10
	 	  	10.2	  	Rights and Duties.	  	10
	 	  	10.3	  	No Enlargement of Rights.	  	10
	 	  	10.4	  	Compliance with Rule 16b-3.	  	10
	 	  	10.5	  	Applicable Law.	  	10
	 	  	10.6	  	Severability.	  	10
	 	  	10.7	  	Captions.	  	10

  

 - ii - 

 E.PIPHANY, INC. 
 NONEMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN 
 (Amended and Restated Effective August 15, 2003)

  
 E.PIPHANY, INC., a Delaware corporation, having
established the E.piphany, Inc. Nonemployee Director Deferred Compensation Plan effective as of May 30, 2003, hereby amends and restates the Plan in its entirety effective as of August 15, 2003. The Plan was established and is currently maintained
for the benefit of members of the Board of Directors who are employees of neither the Company nor its Affiliates, in order to provide such directors with certain deferred compensation benefits. The Plan is an unfunded deferred compensation plan that
is exempt from the provisions of the Employee Retirement Income Security Act of 1974, as amended. 
  
 SECTION 1 
 DEFINITIONS 
  
 The following words and phrases shall have the following meanings unless a
different meaning is plainly required by the context: 
  
 1.1
“Affiliate” shall mean (a) the Company, and (b) each corporation, trade or business which is, together with the Company, a member of a controlled group of corporations or an affiliated service group or under common control
(within the meaning of Section 414(b), (c) or (m) of the Code), but only for the period during which such other entity is so affiliated with the Company. 
  
 1.2 “Beneficiary” shall mean the person or persons entitled to receive the balance credited to a Participant’s Account under the
Plan upon the death of a Participant, as provided in Section 5.3. 
  
 1.3 “Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 
  
 1.4 “Code” shall mean the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code shall include such
section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section. 
  
 1.5 “Committee” shall mean the committee appointed by (and serving at the pleasure of) the Board of
Directors to administer the Plan. As of the effective date of the Plan, the Compensation Committee of the Board of Directors shall constitute the Committee. 
  
 1.6 “Company” shall mean E.piphany, Inc., a Delaware corporation. 
  

 - 1 - 

 1.7 “Compensation” shall mean the annual cash compensation (if any) to be paid by the
Company to a Nonemployee Director. As of the effective date of the restated Plan, annual cash compensation consists of an annual retainer (which may be prorated) and any meeting fees. A Participant’s Compensation shall not include any type of
non-cash remuneration. 
  
 1.8 “Compensation
Deferrals” shall mean the amounts credited to Participants’ Accounts under the Plan pursuant to their deferral elections made in accordance with Section 2.1. 
  
 1.9 “Participant” shall mean a Nonemployee Director who (a) has become a Participant in the Plan pursuant
to Section 2.1 and (b) has not ceased to be a Participant pursuant to Section 2.3. 
  
 1.10 “Participant’s Account” or “Account” shall mean, as to any Participant, the separate account maintained on the books of the Company in order to reflect his or her interest
under the Plan. 
  
 1.11 “Plan” shall mean the
E.piphany, Inc. Nonemployee Director Deferred Compensation Plan, as set forth in this instrument and as hereafter amended from time to time. 
  
 1.12 “Plan Year” shall mean the approximately twelve month period beginning on the date of the Company’s Annual Meeting of
Stockholders and ending on the date immediately preceding the date of the Company’s next Annual Meeting of Stockholders. The first Plan Year shall commence on May 30, 2003 (the “2003 Plan Year”). 
  
 1.13 “Nonemployee Director” means a member of the Board of
Directors who is an employee of neither the Company nor of any Affiliate. 
  
 SECTION 2 
 PARTICIPATION 
  
 2.1 Participation. Each Nonemployee Director’s decision to become a Participant shall be entirely voluntary.

  
 2.1.1 Current Nonemployee Directors. Each Nonemployee
Director who is or becomes such on May 30, 2003, may elect to become a Participant in the Plan by electing no later than May 30, 2003, to make Compensation Deferrals under the Plan for the 2003 Plan Year. 
  
 2.1.2 Initial Elections by New Nonemployee Directors. Each individual
who first becomes a Nonemployee Director after May 30, 2003 may elect to become a Participant in the Plan by electing, within thirty (30) days of the date he or she becomes a Nonemployee Director, to make Compensation Deferrals under the Plan. Each
individual who first becomes eligible for the Plan on August 15, 2003, may elect to become a Participant in the Plan by electing, on or before September 14, 2003, to make Compensation Deferrals under the Plan. An election under this Section 2.1.2 to
make Compensation Deferrals shall be effective only for the remainder of the Plan Year with respect to which the election is made. 
  

 - 2 - 

 2.1.3 Elections for Subsequent Plan Years. A Nonemployee Director may elect to become a
Participant (or to continue or reinstate his or her active participation) in the Plan for any subsequent Plan Year by electing, no later than the first day of the Plan Year, to make Compensation Deferrals under the Plan. An election under this
Section 2.1.3 to make Compensation Deferrals shall be effective only for the Plan Year with respect to which the election is made. 
  
 2.1.4 No Election Changes During Plan Year. After the beginning of a Plan Year, a Participant shall not be permitted to change or revoke his or her
deferral election for such Plan Year, except to the limited extent provided in Section 2.2. 
  
 2.1.5 Specific Timing and Method of Election. Notwithstanding any contrary provision of this Section 2.1, the Committee, in its sole discretion, shall determine the manner and deadlines for Participants to make
Compensation Deferral elections. The deadlines prescribed by the Committee may be earlier than the deadlines specified in this Section 2.1, but shall not be later than such specified deadlines. 
  
 2.2 Automatic Suspension of Compensation Deferrals. If a Participant
receives a financial hardship withdrawal from the E.piphany 401(k) Plan or any other plan maintained by the Company or an Affiliate that contains a qualified cash or deferred arrangement under section 401(k) of the Internal Revenue Code of 1986, as
amended (collectively, the “401(k) Plans”), the Participant’s Compensation Deferrals under the Plan (if any) shall be suspended for a period of six (6) months from the date that the Participant received such hardship withdrawal.
Notwithstanding the preceding, the Participant’s Compensation Deferrals shall be not be so suspended if the Committee determines that such suspension is not required in order to preserve the tax-qualification of the 401(k) Plans. 
  
 2.3 Termination of Participation. A Nonemployee Director who
has become a Participant shall remain a Participant until his or her entire vested Account balance is distributed. However, a Nonemployee Director who has become a Participant may or may not be an active Participant making Compensation Deferrals for
a particular Plan Year, depending upon whether he or she has elected to make Compensation Deferrals for such Plan Year. 
  
 SECTION 3 
 COMPENSATION DEFERRAL
ELECTIONS 
  
 3.1 Compensation Deferrals. At the times
and in the manner prescribed in Section 2.1, each Nonemployee Director may elect to defer portions of his or her Compensation and to have the amounts of such deferrals credited to his or her Account. For each Plan Year, a Nonemployee Director may
elect to defer an amount equal to any percentage or any specific dollar amount of his or her Compensation, provided that the percentage or dollar amount elected by the Participant shall result in an expected deferral of not less than $5,000 of his
or her Compensation. Notwithstanding any contrary provision of the Plan, the Committee may reduce a Participant’s Compensation Deferrals to the extent necessary to satisfy any deductions required by law. 
  

 - 3 - 

 3.2 Crediting of Compensation Deferrals. The amounts deferred pursuant to Section 3.1 shall reduce
the Participant’s Compensation for the Plan Year and shall be credited to the Participant’s Account as of the date(s) on which the amounts (but for the deferrals) otherwise would have been paid to the Participant. 
  
 3.3 Deemed Investment Return on Accounts. Although no assets will be
segregated or otherwise set aside with respect to a Participant’s Account, the amount that ultimately is payable to the Participant with respect to his or her Account shall be determined as if such Account had been invested in such manner as
the Participant shall indicate on each deferral election made by the Participant pursuant to Section 3.1. A Participant’s election as to the deemed investment of his or her Account shall apply to all amounts credited to the Participant’s
Account for the Plan Year with respect to which the election is made and shall be irrevocable once made. A Participant may elect to have each portion of his or her Account (a) credited with deemed interest at a rate determined by the Committee (or
its delegate), or (b) deemed invested in common stock of the Company (including reinvestment of any deemed dividends). If a Participant elects to have his or her Account deemed invested in common stock of the Company, the number of deemed shares
initially credited to his or her Account for a Plan Year shall equal the amount of Compensation Deferrals made by the Participant, divided by the per share fair market value of the Company’s common stock on Nasdaq on the date on which the
Compensation otherwise would have been paid. The Committee, in its sole discretion, shall adopt (and may modify from time to time) such rules and procedures as it deems necessary or appropriate to implement the deemed investment of the
Participants’ Accounts. 
  
 3.4 Form of Payment. The
form of payment of each Participant’s Account shall be a single lump sum consisting of cash and/or shares of Company common stock. The cash portion (if any) of the lump sum shall equal the amount credited to the Participant’s Account that
was credited with deemed interest and the deemed interest on such amount. The stock portion (if any) of the lump sum shall equal the number of shares of Company common stock deemed credited to the Participant’s Account. 
  
 3.5 Term of Deferral. Each Participant shall indicate on his or her
deferral election made pursuant to Section 3.1 the time for payment for Compensation Deferrals (and deemed investment returns, gains and losses thereon) made pursuant to such election. A Participant may elect a term of deferral equal to any whole
number (not less than one) of calendar years specified in his or her deferral election. In addition, pursuant to such procedures as the Committee (in its discretion) may adopt from time to time, a Participant may elect a term of deferral that ends
upon the occurrence of a specific event or the later (or earlier) of the expiration of a specified period or the occurrence of a specific event (for example, the later of ten years or termination of service on the Board of Directors). A
Participant’s election as to the term of deferral shall apply to all amounts credited to the Participant’s Account to which the election is made, and except to the limited extent provided in Section 3.6, shall be irrevocable. 

 

 - 4 - 

 3.6 Changes in Elections as to Term for Payment. A Participant may change his or her election
under Section 3.5 for amounts credited to the Participant’s Account, provided that any such election will be effective only if (a) such election is made at least one (1) year prior to the date on which payment of such amounts is scheduled to
commence (without giving effect to such election), and (b) the newly elected scheduled payment commencement date is not earlier than one (1) year after the date on which such election is made. 
  
 SECTION 4 
 ACCOUNTING 
  
 4.1 Participants’ Accounts. For each Plan Year, at the direction of the Committee, there shall be established and maintained on the books of the Company, a separate Account or Accounts for each Participant to which shall be
credited all Compensation Deferrals made by the Participant during such Plan Year, and deemed investment returns, gains and losses on such Compensation Deferrals. 
  
 4.2 Participants Remain Unsecured Creditors. All amounts credited to a Participant’s Account under the Plan
shall continue for all purposes to be a part of the general assets of the Company. Each Participant’s interest in the Plan shall make him or her only a general, unsecured creditor of the Company. 
  
 4.3 Accounting Methods. The accounting methods or formulae to be used
under the Plan for the purpose of maintaining the Participants’ Accounts, including the calculation and crediting (or debiting) of deemed returns, gains and losses, shall be determined by the Committee, in its sole discretion. The accounting
methods or formulae selected by the Committee may be revised from time to time. 
  
 4.4 Reports. Each Participant shall be furnished with periodic statements of his or her Account, reflecting the status of his or her interest in the Plan, at least annually. 
  
 SECTION 5 
 DISTRIBUTIONS 
  
 5.1 Normal Time for Distribution. Subject to Sections 5.2, 5.6 and 9.3, distribution of the balance credited to a Participant’s Account shall be made as soon as administratively practicable after the end
of the term of deferral elected by the Participant under Section 3.5, in accordance with the rules of this Section 5. 
  
 5.2 Latest Permissible Distribution Date. Notwithstanding any contrary provision of this Section 5, any amount that remains credited to a
Participant’s Account on the date that the Participant terminates service on the Board of Directors shall be distributed to the Participant (or his or her Beneficiary) in a lump sum as soon as administratively practicable after such termination
and in the form provided in Section 3.4. Any such amount shall continue to be credited (or debited) with deemed investment returns, gains and losses until the date of payment. 
  

 - 5 - 

 5.3 Beneficiary Designations. Each Participant may, pursuant to such procedures as
the Committee may specify, designate one or more Beneficiaries. 
  
 5.3.1 Spousal Consent. If a Participant designates a person other than or in addition to his or her spouse as a primary Beneficiary, the designation shall be ineffective unless the Participant’s spouse consents to
the designation. Any spousal consent required under this Section 5.3 shall be ineffective unless it (a) is set forth in writing in a form specified in the discretion of the Committee, (b) acknowledges the effect of the Participant’s designation
of another person as his or her Beneficiary under the Plan, and (c) is signed by the spouse and witnessed by an authorized agent of the Committee or a notary public. Notwithstanding this consent requirement, if the Participant establishes to the
satisfaction of the Committee that written spousal consent may not be obtained because the spouse cannot be located, his or her designation shall be effective without a spousal consent. Any spousal consent required under this Section 5.3 shall be
valid only with respect to the spouse who signs the consent. A Participant may revoke his or her Beneficiary designation at any time, provided that such revocation is in writing. 
  
 5.3.2 Changes and Failed Designations. A Participant may designate different Beneficiaries (or may
revoke a prior Beneficiary designation) at any time by delivering a new designation (or revocation of a prior designation) in accordance with Section 5.3.1. Any designation or revocation shall be effective only if it is received by the Committee.
However, when so received, the designation or revocation shall be effective as of the date the notice is executed (whether or not the Participant still is living), but without prejudice to the Committee on account of any payment made before the
change is recorded. The last effective designation received by the Committee shall supersede all prior designations. If a Participant dies without having effectively designated a Beneficiary, or if no Beneficiary survives the Participant, the
Participant’s Account shall be payable to his or her surviving spouse, or, if the Participant is not survived by his or her spouse, the Account shall be paid to his or her estate. 
  
 5.4 Payments to Incompetents. If any individual to whom a benefit is payable under the Plan is a minor or legally
incompetent, the Committee shall determine whether payment shall be made directly to the individual, any person acting as his or her custodian or legal guardian under the California Uniform Transfers to Minors Act, his or her legal representative or
a near relative, or directly for his or her support, maintenance or education. 
  
 5.5 Undistributable Accounts. Each Participant and (in the event of death) his or her Beneficiary shall keep the Committee advised of his or her current address. If the Committee is unable to locate the
Participant or Beneficiary to whom a Participant’s Account is payable under this Section 5, the Participant’s Account shall continue to be credited (or debited) with deemed investment returns, gains and losses in accordance with Section
3.3. Accounts that, in accordance with the preceding sentence, have been undistributable for a period of thirty-five months shall be forfeited as of the end of the thirty-fifth month. If a Participant whose Account was forfeited under this Section
5.5 (or his or her Beneficiary) files a claim for distribution of the Account after the date on which it was forfeited, and if the Committee determines that such claim is valid, then the forfeited balance shall be paid by the Company in a lump sum
cash payment as soon as practicable thereafter (without interest or any deemed investment returns, gains or losses after the date of forfeiture). 
  

 - 6 - 

 5.6 Committee Discretion. Within the specific time periods described in this Section 5, the
Committee shall have sole discretion to determine the specific timing of the payment of any Account balance under the Plan. In addition and notwithstanding any contrary provision of the Plan, the Committee, in its sole discretion, may cause the
balance credited to a Participant’s Account to be paid to him or her in a lump sum at any time following the Participant’s cessation of service on the Board of Directors. 
  
 SECTION 6 
 PARTICIPANT’S INTEREST IN ACCOUNT 
  
 6.1
Compensation Deferral Contributions. Subject to Sections 8.1 (relating to creditor status) and 9.2 (relating to amendment and/or termination of the Plan), a Participant’s interest in the balance credited to his or her Account at all
times shall be 100% vested and nonforfeitable. 
  
 SECTION 7

 ADMINISTRATION OF THE PLAN 
  
 7.1 Committee. The Plan shall be administered by the Committee. The Committee shall have the authority to control and manage the operation and
administration of the Plan. Any member of the Committee may resign at any time by notice in writing mailed or delivered to the Secretary of the Company. 
  
 7.2 Actions by Committee. Each decision of a majority of the members of the Committee then in office shall constitute the final and binding act of
the Committee. The Committee may act with or without a meeting being called or held and shall keep minutes of all meetings held and a record of all actions taken by written consent. 
  
 7.3 Powers of Committee. The Committee shall have all powers and discretion necessary or appropriate to supervise the
administration of the Plan and to control its operation in accordance with its terms, including, but not by way of limitation, the following powers: 
  
 (a) to interpret and determine the meaning and validity of the provisions of the Plan and to determine any question arising under, or in connection with,
the administration, operation or validity of the Plan or any amendment thereto; 
  
 (b) to determine any and all considerations affecting the eligibility of any Nonemployee Director to become a Participant or remain a Participant in the Plan; 
  
 (c) to cause one or more separate Accounts to be maintained for each
Participant; 
  

 - 7 - 

 (d) to cause Compensation Deferrals and deemed investment returns, gains and losses to be credited to
Participants’ Accounts; 
  
 (e) to establish and revise a
method or procedure for the deemed investment of Participants’ Accounts, as provided in Section 3.3; 
  
 (f) to establish and revise an accounting method or formula for the Plan, as provided in Section 4.3; 
  
 (g) to determine the manner and form in which any distribution is to be made
under the Plan; 
  
 (h) to determine the manner and form for
making elections under the Plan; 
  
 (i) to determine the status
and rights of Participants and their spouses, Beneficiaries or estates; 
  
 (j) to employ such counsel, agents and advisers, and to obtain such legal, clerical and other services, as it may deem necessary or appropriate in carrying out the provisions of the Plan; 
  
 (k) to establish, from time to time, rules for the performance of its powers
and duties and for the administration of the Plan; 
  
 (l) to
arrange for annual distribution to each Participant of a statement of benefits accrued under the Plan; 
  
 (m) to publish a claims and appeal procedure pursuant to which individuals or estates may claim Plan benefits and appeal denials of such claims;

  
 (n) to delegate to any one or more of its members or to any
other person, severally or jointly, the authority to perform for and on behalf of the Committee one or more of the functions of the Committee under the Plan; and 
  
 (o) to decide all issues and questions regarding Account balances, and the time, form, manner and amount of distributions to
Participants. 
  
 7.4 Decisions of Committee. All actions,
interpretations, and decisions of the Committee shall be conclusive and binding on all persons, and shall be given the maximum possible deference allowed by law. 
  
 7.5 Administrative Expenses. All expenses incurred in the administration of the Plan by the Committee, or otherwise,
including legal fees and expenses, shall be paid and borne by the Company. 
  

 - 8 - 

 7.6 Eligibility to Participate. No member of the Committee who is also a Nonemployee Director
shall be excluded from participating in the Plan if otherwise eligible, but he or she shall not be entitled, as a member of the Committee, to act or pass upon any matters that pertain specifically to his or her own Account under the Plan (as
distinguished from matters that apply generally to Accounts under the Plan). 
  
 7.7 Indemnification. The Company shall, and hereby does, indemnify and hold harmless the members of the Committee, from and against any and all losses, claims, damages or liabilities (including attorneys’
fees and amounts paid, with the approval of the Board of Directors, in settlement of any claim) arising out of or resulting from the implementation of a duty, act or decision with respect to the Plan, so long as such duty, act or decision does not
involve gross negligence or willful misconduct on the part of any such individual. 
  
 SECTION 8 
 FUNDING 
  
 8.1 Unfunded Plan. All amounts credited to a Participant’s Account under the Plan shall continue for all
purposes to be a part of the general assets of the Company. The interest of the Participant in his or her Account, including his or her right to distribution thereof, shall be an unsecured claim against the general assets of the Company. Nothing
contained in the Plan shall give any Participant or beneficiary any interest in or claim against any specific assets of the Company. 
  
 SECTION 9 
 MODIFICATION OR
TERMINATION OF PLAN 
  
 9.1 Company’s Obligation is
Limited. The Company intends to continue the Plan indefinitely, and to maintain each Participant’s Account until it is scheduled to be paid to him or her in accordance with the provisions of the Plan. However, the Plan is voluntary on the
part of the Company, and the Company does not guarantee to continue the Plan. The Company at any time may, by amendment of the Plan, suspend Compensation Deferrals or may discontinue Compensation Deferrals, with or without cause. Complete
discontinuance of all Compensation Deferrals shall be deemed a termination of the Plan. 
  
 9.2 Right to Amend or Terminate. The Board of Directors, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for any reason, provided that no amendment or termination
of the Plan shall, without the consent of the Participant, reduce the balance then credited to the Participant’s Account. 
  
 9.3 Effect of Termination. If the Plan is terminated pursuant to this Section 9, the balances credited to the Accounts of the affected Participants
shall be distributed to them at the time and in the manner set forth in Section 5; provided, however, that the Committee, in its sole discretion, may authorize accelerated distribution of Participants’ Accounts as of any earlier date.

  

 - 9 - 

 SECTION 10 
 GENERAL PROVISIONS 
  
 10.1
Inalienability. In no event may any Participant, Beneficiary, spouse or estate sell, transfer, anticipate, assign, hypothecate, or otherwise dispose of any right or interest under the Plan; and such rights and interests shall not at any time
be subject to the claims of creditors nor be liable to attachment, execution or other legal process. Accordingly, for example, a Participant’s interest in the Plan is not transferable pursuant to a domestic relations order. 
  
 10.2 Rights and Duties. Neither the Company nor the Committee shall be
subject to any liability or duty under the Plan except as expressly provided in the Plan, or for any action taken, omitted or suffered in good faith. 
  
 10.3 No Enlargement of Rights. Neither the establishment or maintenance of the Plan, the making of any Compensation Deferrals nor any action of the
Company or the Committee, shall be held or construed to confer upon any individual any right to be continue as a member of the Board of Directors. 
  
 10.4 Compliance with Rule 16b-3. All transactions under the Plan are intended to be exempt from liability under section 16(b) of the Securities
Exchange Act of 1934, as amended (“section 16(b)”). To the extent deemed necessary or advisable by the Committee, any election, payment, distribution or other transaction by or on behalf of any Nonemployee Director may be canceled or
delayed in order to ensure that such payment will not result in any liability under section 16(b) to such individual. 
  
 10.5 Applicable Law. The provisions of the Plan shall be construed, administered and enforced in accordance with the laws of the State of
California (other than its conflict of laws provisions). 
  
 10.6
Severability. If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provisions of the Plan, and in lieu of each provision which is held invalid or unenforceable, there
shall be added as part of the Plan a provision that shall be as similar in terms to such invalid or unenforceable provision as may be possible and be valid, legal, and enforceable. 
  
 10.7 Captions. The captions contained in and the table of contents prefixed to the Plan are inserted only as a matter
of convenience and for reference and in no way define, limit, enlarge or describe the scope or intent of the Plan nor in any way shall affect the construction of any provision of the Plan. 
  

 - 10 - 

 EXECUTION 
  

IN WITNESS WHEREOF, E.piphany, Inc., by its duly authorized officer, has executed this restated Plan on the date indicated below. 
  

			
	E.PIPHANY, INC.
	
	 /S/    ANDY
SHERMAN

	 By:
	 	 Andy Sherman

	 Title:
	 	 SVP, General Counsel and Secretary

	 Date:
	 	 August 15, 2003

  

 - 11 -The Twofold Photos, Inc. 2003 Stock Incentive Plan

 EXHIBIT 10.5 
  
 TWOFOLD PHOTOS, INC. 
  
 2003 COMMON STOCK INCENTIVE PLAN 
  
 1. Purposes of the Plan. The purposes of this Common Stock Incentive Plan are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to Employees, Directors and Consultants of the Company and its Subsidiaries and to promote the success of the Company’s business. 
  
 2. Definitions. As used herein, the following definitions shall apply:

  
 (a) “Administrator” means the Board or any of the
Committees appointed to administer the Plan. 
  
 (b)
“Applicable Laws” means the legal requirements relating to the administration of stock incentive plans, if any, under applicable provisions of federal securities laws, California corporate and securities laws, the Code, the rules of any
applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents therein. 
  
 (c) “Award” means the grant of an Option, Restricted Stock or other right or benefit under the Plan. 
  
 (d) “Award Agreement” means the written agreement evidencing the
grant of an Award executed by the Company and the Grantee, including any amendments thereto. 
  
 (e) “Board” means the Board of Directors of the Company. 
  
 (f) “Cause” means, with respect to termination of Grantee’s Continuous Status as an Employee, Director or Consultant, termination by reason
of (i) Grantee’s commission of a felony, misdemeanor or other illegal conduct involving dishonesty, fraud or other matters of moral turpitude, (ii) Grantee’s dishonesty towards, fraud upon, or deliberate injury or attempted injury to the
Company or any of its affiliates, or (iii) Grantee’s willfully engaging in misconduct which is materially and demonstrably injurious to the Company or any of its affiliates. 
  
 (g) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (h) “Committee” means any committee appointed by the Board to
administer the Plan. 
  
 (i) “Common Stock” means the
common stock of the Company. 
  
 (j) “Company” means
Twofold Photos, Inc. 
  
 (k) “Consultant” means any
person who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory services as an independent contractor and is compensated for such services. 
  
 (l) “Continuous Status as an Employee, Director or Consultant” means that the employment, director or consulting
relationship with the Company, any Parent, or Subsidiary, is not 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	1

 interrupted or terminated. Continuous Status as an Employee, Director or Consultant shall not be considered interrupted
in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. A leave of absence approved by the Company shall include sick
leave, military leave, or any other personal leave approved by an authorized representative of the Company. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is
guaranteed by statute or contract. 
  
 (m) “Corporate
Transaction” means any of the following transactions to which the Company is a party: 
  
 (i) a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated; 
  
 (ii) the sale, transfer or other disposition of all or substantially all of
the assets of the Company (including the capital stock of the Company’s subsidiary corporations) in connection with the complete liquidation or dissolution of the Company; or 
  
 (iii) any reverse merger in which the Company is the surviving entity but in which securities possessing more than fifty
percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger. 
  
 (n) “Director” means a member of the Board. 
  
 (o) “Employee” means any person, including an Officer or Director,
who is an employee of the Company or any Parent or Subsidiary of the Company for purposes of Section 422 of the Code. The payment of a director’s fee by the Company shall not be sufficient to constitute “employment” by the Company.

  
 (p) “Exchange Act” means the Securities Exchange Act
of 1934, as amended. 
  
 (q) “Fair Market Value” means,
as of any date, the value of Common Stock determined as follows: 
  
 (i) Where there exists a public market for the Common Stock, the Fair Market Value shall be (A) the closing price for a Share for the last market trading day prior to the time of the determination (or, if no closing price was reported on
that date, on the last trading date on which a closing price was reported) on the stock exchange determined by the Administrator to be the primary market for the Common Stock or the Nasdaq National Market, whichever is applicable or (B) if the
Common Stock is not traded on any such exchange or national market system, the average of the closing bid and asked prices of a Share on the Nasdaq Small Cap Market for the day prior to the time of the determination (or, if no such prices were
reported on that date, on the last date on which such prices were reported), in each case, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
  
 (ii) In the absence of an established market of the type described in (i)
above for the Common Stock, the Fair Market Value thereof shall be determined by the Administrator in good faith after taking into account such factors as the Administrator in its absolute discretion deems appropriate. 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	2

 (r) “Grantee” means an Employee, Director or Consultant who receives an Award under the Plan.

  
 (s) “Incentive Stock Option” means an Option
intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 
  
 (t) “Non-Qualified Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
  
 (u) “Officer” means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (v) “Option” means a stock option granted pursuant to the Plan. 
  
 (w) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section
424(e) of the Code. 
  
 (x) “Plan” means this Twofold
Photos, Inc. 2003 Common Stock Incentive Plan. 
  
 (y)
“Registration Date” means the closing of the first sale of Common Stock to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of
1933, as amended. 
  
 (z) “Restricted Stock” means
Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the
Administrator. 
  
 (aa) “Share” means a share of the
Common Stock. 
  
 (bb) “Subsidiary” means a
“subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3. Stock Subject to the Plan. 
  
 (a) Subject to the provisions of Section 12(a), below, the maximum aggregate number of Shares which may be issued pursuant to all Awards (including
Incentive Stock Options) is Two Million (2,000,000) Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. Notwithstanding the above, at no time shall the total number of Shares issuable upon exercise of all outstanding
Awards and the total number of Shares provided for under any stock bonus or similar plan or agreement of the Company exceed 30% of the then outstanding Shares, as calculated in accordance with the conditions and exclusions of §260.140.45 of
Title 10, California Code of Regulations. 
  
 (b) If an Award
expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Award exchange program, or if any unissued Shares are retained by the Company upon exercise of an Award in order to satisfy the exercise price
for such Award or any withholding taxes due with respect to such Award, such unissued or retained Shares shall become available for future grant or sale under the Plan (unless the Plan has terminated). Shares that actually have been issued under the
Plan pursuant to an Award shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at their original purchase price, such
Shares shall become available for future grant under the Plan. 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	3

 4. Administration of the Plan. 
  
 (a) Plan Administrator. With respect to grants of Awards to Employees, Directors, Officers or Consultants, the Plan
shall be administered by (i) the Board or (ii) a Committee (or a subcommittee of the Committee) designated by the Board, which Committee shall be constituted in such a manner as to satisfy Applicable Laws. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the Board. 
  
 (b) Multiple Administrative Bodies. The Plan may be administered by different bodies with respect to Directors, Officers, Consultants, and Employees who are neither Directors nor Officers. 
  
 (c) Powers of the Administrator. Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its absolute discretion: 
  
 (i) to select the Employees, Directors and Consultants to whom Awards may
be granted from time to time hereunder; 
  
 (ii) to determine
whether and to what extent Awards are granted hereunder; 
  
 (iii) to determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder; 
  
 (iv) to approve forms of Award Agreement for use under the Plan; 
  

(v) to determine the terms and conditions of any Award granted hereunder; 
  
 (vi) to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign
jurisdictions and to afford Grantees favorable treatment under such laws; provided, however, that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with the
provisions of the Plan; 
  
 (vii) to amend the terms of any
outstanding Award granted under the Plan, including the acceleration of vesting or a reduction in the exercise price (or base amount on which appreciation is measured) of any Award to reflect a reduction in the Fair Market Value of the Common Stock
since the grant date of the Award, provided that any amendment that would adversely affect the Grantee’s rights under an outstanding Award shall not be made without the Grantee’s written consent; 
  
 (viii) to construe and interpret the terms of the Plan and Awards granted
pursuant to the Plan; and 
  
 (ix) to take such other action, not
inconsistent with the terms of the Plan, as the Administrator deems appropriate. 
  
 (d) Effect of Administrator’s Decision. All decisions, determinations and interpretations of the Administrator shall be conclusive and binding on all persons. 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	4

 5. Eligibility. Awards other than Incentive Stock Options may be granted to Employees, Directors
and Consultants. Incentive Stock Options may be granted only to Employees. An Employee, Director or Consultant who has been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such Employees of the
Company and its subsidiaries who are residing in foreign jurisdictions as the Administrator may determine from time to time. 
  
 6. General Terms and Conditions of Awards. 
  
 (a) Type of Awards. The Administrator is authorized under the Plan to award any type of arrangement to an Employee, Director or Consultant that is
not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) an Option or (iii) any other security with the value derived from the value of the Common Stock. Such awards include,
without limitation, Options, or sales or bonuses of Restricted Stock, and an Award may consist of one such security or benefit, or two or more of them in any combination or alternative. 
  
 (b) Designation of Award. Each Award shall be designated in the Award Agreement. In the case of an Option, the Option
shall be designated as either an Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of Shares with respect to which Options designated as Incentive
Stock Options are exercisable for the first time by a Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in excess of the
foregoing limitation, shall be treated as Non-Qualified Stock Options. For this purpose, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of
the date the Option with respect to such Shares is granted. 
  
 (c) Conditions of Award. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights
of first refusal, forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria. The performance criteria established by the
Administrator may be based on any one of, or combination of, increase in share price, earnings per share, total shareholder return, return on equity, return on assets, return on investment, net operating income, cash flow, revenue, economic value
added, personal management objectives, or other measure of performance selected by the Administrator. Partial achievement of the specified criteria may result in a payment or vesting corresponding to the degree of achievement as specified in the
Award Agreement. 
  
 (d) Term of Award. The term of each
Award shall be the term stated in the Award Agreement, provided, however, that the terms shall be no more than ten (10) years from the date of grant thereof. However, in the case of an Incentive Stock Option granted to a Grantee who, at the time the
Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant
thereof or such shorter term as may be provided in the Award Agreement. 
  
 (e) Non-Transferability of Awards. Options or other rights to purchase or receive securities hereunder may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of
descent and distribution and may be exercised, during the lifetime of Grantee, only by the Grantee. The terms of this Plan and any applicable Award Agreement shall be binding upon the executors, administrators, heirs and successors of the Grantee.
Any purported transfer in violation of this subsection shall be void. 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	5

 (f) Time of Granting Awards. The date of grant of an Award shall for all purposes be the date on
which the Administrator makes the determination to grant such Award, or such other date as is determined by the Administrator. Notice of the grant determination shall be given to each Employee, Director or Consultant to whom an Award is so granted
within a reasonable time after the date of such grant. 
  
 7.
Award Exercise or Purchase Price, Consideration and Taxes. 
  
 (a) Exercise or Purchase Price. The exercise or purchase price, if any, for an Award shall be as follows: 
  
 (i) In the case of an Incentive Stock Option: 
  
 (A) granted to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant. 
  
 (B) granted to any Employee other than an Employee described in the
preceding paragraph, the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
  
 (ii) In the case of a Non-Qualified Stock Option: 
  
 (A) granted to a person who, at the time of the grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant. 
  
 (B) granted to any person other than a person described in the preceding
paragraph, the per Share exercise price shall be not less than eighty-five percent (85%) of the Fair Market Value per Share on the date of grant. 
  
 (iii) In the case of the sale of Shares: 
  
 (A) granted to a person who, at the time of the grant of such Award, or at the time the purchase is consummated, owns stock representing more than ten
percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share purchase price shall be not less than one hundred percent (100%) of the Fair Market Value per share on the date of grant. 

 
 (B) granted to any person other than a person described in the preceding
paragraph, the per Share purchase price shall be not less than eighty-five percent (85%) of the Fair Market Value per Share on the date of grant. 
  
 (iv) In the case of other Awards, such price as is determined by the Administrator. 
  
 (b) Consideration. Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise
or purchase of an Award, including the method of payment, shall be 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	6

 determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of
grant). In addition to any other types of consideration the Administrator may determine acceptable, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following: 
  
 (i) cash; 
  
 (ii) check; 
  
 (iii) delivery of the Grantee’s promissory note for all or part of the Award price, payable on such terms and bearing such interest rate as
determined by the Administrator (but in no event less than the minimum interest rate specified under the Code at which no additional interest would be imputed and in no event more than the maximum interest rate allowed under applicable usury laws),
with such recourse, security and redemption provisions as the Administrator may determine; 
  
 (iv) surrender of Shares (including withholding of Shares otherwise deliverable upon exercise of the Award) which have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares
as to which said Award is exercised (but only to the extent that such exercise of the Award would not result in an accounting compensation charge with respect to the Shares used to pay the exercise price unless otherwise determined by the
Administrator); 
  
 (v) if the exercise occurs on or after the
Registration Date, delivery of a properly exercise notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect an exercise of the Award and delivery to the Company of the sale or loan
proceeds required to pay the exercise price; or 
  
 (vi) any
combination of the foregoing methods of payment. 
  
 (c)
Taxes. No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of any foreign, federal, state, or local income
and employment tax withholding obligations, including, without limitation, obligations incident to the receipt of Shares or the disqualifying disposition of Shares received on exercise of an Incentive Stock Option. Upon exercise of an Award the
Company shall withhold or collect from Grantee an amount sufficient to satisfy such tax obligations. 
  
 8. Exercise of Award. 
  
 (a) Procedure for Exercise; Rights as a Shareholder. 
  
 (i) Any Award granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the terms of the
Plan and specified in the Award Agreement, but in the case of an Option, in no case at a rate of less than 20% per year over five (5) years from the date the Option is granted. 
  
 (ii) An Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in
accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised has been received by the Company. Until the issuance (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to Shares
subject to an Award, notwithstanding the exercise of an Option or other Award. The 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	7

 Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Award. No adjustment
will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in the Award Agreement or Section 12(a) below. 
  
 9. Termination of Relationship with the Company. 
  
 (a) Termination of Employment, Consultancy, or Directorship. In the
event of termination of a Grantee’s Continuous Status as an Employee, Director or Consultant for any reason other than disability, death or Cause (but not in the event of a Grantee’s change of status from Employee to Consultant or from
Consultant to Employee), such Grantee may, but only within three (3) months after the date of such termination (but in no event later than the expiration date of the term of such Award as set forth in the Award Agreement), exercise his or her Award
to the extent that the Grantee was entitled to exercise it at the date of such termination or to such other extent as may be determined by the Administrator. If the Grantee should die within three (3) months after the date of such termination, the
Grantee’s estate or the person who acquired the right to exercise the Award by bequest or inheritance may exercise the Award to the extent that the Grantee was entitled to exercise it at the date of such termination within twelve (12) months of
the Grantee’s date of death, but in no event later than the expiration date of the term of such Award as set forth in the Award Agreement. In the event of a Grantee’s change of status from Employee to Consultant, an Employee’s
Incentive Stock Option shall convert automatically to a Non-Qualified Stock Option on ninety-first (91st) day following such change of status. To the extent the Grantee is not entitled to exercise the Award at the date of termination, or does not
exercise the Award within the time specified herein, the Award shall terminate. 
  
 (b) Disability of Grantee. In the event of termination of a Grantee’s Continuous Status as an Employee, Director or Consultant as a result of his or her disability, Grantee may, but only within twelve (12)
months from the date of such termination (and in no event later than the expiration date of the term of such Award as set forth in the Award Agreement), exercise his or her Award to the extent otherwise entitled to exercise it at the date of such
termination; provided, however, that if such disability is not a “disability” as such term is defined in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option such Incentive Stock Option shall automatically convert to a
Non-Qualified Stock Option on the day three (3) months and one day following such termination. To the extent the Grantee is not entitled to exercise the Award at the date of termination, or does not exercise the Award within the time specified
herein, the Award shall terminate. 
  
 (c) Death of
Grantee. In the event of the death of a Grantee, his or her Award may be exercised at any time within twelve (12) months following the date of death (but in no event later than the expiration of the term of such Award as set forth in the Award
Agreement), by the Grantee’s estate or by a person who acquired the right to exercise the Award by bequest or inheritance, but only to the extent that the Grantee was entitled to exercise the Award at the date of death. If, at the time of
death, the Grantee was not entitled to exercise his or her entire Award, the Shares covered by the unexercisable portion of the Award shall immediately terminate. To the extent the Grantee’s estate or a person who acquired the right to exercise
the Award by bequest or inheritance does not exercise the Award within the time specified herein, the Award shall terminate. 
  
 (d) For Cause Termination of Employment, Consultancy, or Directorship. Upon the termination of a Grantee’s Continuous Status as an Employee,
Director or Consultant for Cause, all Awards then held by such Grantee shall terminate and no longer be exercisable as of the date of termination. 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	8

 10. Conditions On Issuance of Shares. 
  
 (a) Shares shall not be issued pursuant to the exercise of an Award unless
the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 (b) As a condition to the exercise of an Award, the Company may require the
person exercising such Award to make such representations and warranties at the time of any such exercise as required by any Applicable Laws in the opinion of counsel for the Company. 
  
 11. Repurchase Rights. If the provisions of an Award Agreement grant to the Company the right to repurchase Shares
upon termination of the Grantee’s Continuing Status as an Employee, Director or Consultant, the Award Agreement shall provide that the repurchase price will be either: 
  
 (a) Not less than the Fair Market Value on the date of termination of the Grantee’s Continuous Status as an Employee,
Director or Consultant, and the right to repurchase must be exercised for cash or cancellation of purchase money indebtedness for the Shares within ninety (90) days after the termination of the Grantee’s Continuous Status as an Employee,
Director or Consultant (or in the case of Shares issued upon exercise of an Award after the date of termination, within ninety (90) days after such exercise), and the right terminates when the Company’s securities become publicly traded; or

  
 (b) The original purchase price, provided (i) the right to
repurchase at the original purchase price lapses at the rate of at least twenty percent (20%) per year over five (5) years from the date the Award is granted (without respect to the date the Award was exercised or became exercisable), and the right
to repurchase must be exercised for cash or cancellation of purchase money indebtedness for the Shares within ninety (90) days of termination of the Grantee’s Continuous Status as an Employee, Director or Consultant (or in the case of Shares
issued upon exercise of an Award after the date of termination, within ninety (90) days after such exercise), and (ii) if the repurchase right is assignable, the assignee must pay the Company upon assignment of the right, (unless the assignee is a
one hundred percent (100%) owned subsidiary of the Company or is the parent of the Company owning one hundred percent (100%) of the stock of the Company) cash equal to the difference between the original purchase price and Fair Market Value if the
original purchase price is less than Fair Market Value. 
  
 (c) In
addition to the restrictions set forth in subsections 11(a) and (b) above, the Shares held by an Officer, Director, manager or Consultant of the Company or an affiliate of the Company may be subject to additional or greater restrictions. 

 
 12. Adjustments Upon Changes in Capitalization or Corporate
Transaction. 
  
 (a) Adjustments upon Changes in
Capitalization. Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance upon the Plan but as to which no Awards
have yet been granted or which have been returned to the Plan, as well as the price per share of Common Stock covered by each such outstanding Award, shall be proportionately adjusted for any increase or decrease in the number of issued shares of
Common Stock resulting from a stock split, reverse stock split, stock dividend, recapitalization, combination, reclassification or other distribution without the receipt of consideration by the Company, of or on the Common Stock. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares
subject to an Award. 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	9

 (b) Corporate Transaction. In the event of a Corporate Transaction: 
  
 (i) the Administrator shall notify each Grantee at least fifteen (15) days
prior to such Corporate Transaction; 
  
 (ii) unless such Award
is assumed or an equivalent award is substituted by the successor corporation or a Parent or Subsidiary of such successor corporation: 
  
 (A) immediately prior to the effectiveness of the Corporate Transaction, any Shares issued or issuable under a vested and exercisable Award shall be
released from any restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions or similar provisions imposed by the terms and conditions of this Plan and the applicable Award Agreement; 
  
 (B) the Administrator shall have the authority, exercisable either in
advance of the Corporate Transaction or at the time of the Corporate Transaction and either at the time of the grant of an Award or at any time while an Award remains outstanding, to provide for the automatic full vesting and exercisability of the
Award; and 
  
 (C) to the extent it has not been previously
exercised, each Award will terminate immediately prior to the effectiveness of the Corporate Transaction; and 
  
 (iii) for the purposes of this subsection, an Award shall be considered assumed if, following the Corporate Transaction, the Award confers, for each
Share subject to the Award immediately prior to the Corporate Transaction, (A) the consideration (whether stock, cash, or other securities or property) received in the Corporate Transaction by holders of Common Stock for each Share subject to the
Award held on the effective date of the Corporate Transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares), or (B) the right to purchase such
consideration in the case of an Option or similar Award; provided, however, that if such consideration received in the Corporate Transaction was not solely common stock of the successor corporation or its Parent, the Administrator may, with the
consent of the successor corporation, provide for the consideration to be received upon the exercise or exchange of the Award for each Share subject to the Award to be solely common stock of the successor corporation or its Parent equal in fair
market value to the per share consideration received by holders of Common Stock in the Corporate Transaction. 
  
 13. Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the shareholders of the
Company. It shall continue in effect for a term of ten (10) years unless sooner terminated. 
  
 14. Amendment, Suspension or Termination of the Plan. 
  
 (a) The Board may at any time amend, suspend or terminate the Plan. To the extent necessary to comply with Applicable Laws, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to
such a degree as required. 
  
 (b) No Award may be granted during
any suspension of the Plan or after termination of the Plan. 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	10

 (c) Any amendment, suspension or termination of the Plan shall not affect Awards already granted, and
such Awards shall remain in full force and effect as if the Plan had not been amended, suspended or terminated, unless mutually agreed otherwise between the Grantee and the Administrator, which agreement must be in writing and signed by the Grantee
and the Company. 
  
 15. Reservation of Shares. 

 
 (a) The Company, during the term of the Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 (b) The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel
to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

 
 16. NO EFFECT ON TERMS OF EMPLOYMENT. THE PLAN SHALL NOT CONFER
UPON ANY GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTING RELATIONSHIP WITH THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE COMPANY’S RIGHT TO TERMINATE HIS OR HER EMPLOYMENT OR CONSULTING
RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE. 
  
 17.
Shareholder Approval. Continuance of the Plan shall be subject to approval by the shareholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such shareholder approval shall be obtained in the degree
and manner required under Applicable Laws. Any Award exercised before shareholder approval is obtained shall be rescinded if shareholder approval is not obtained within the time prescribed, and Shares issued on the exercise of any such Award shall
not be counted in determining whether shareholder approval is obtained. 
  
 18. Information to Grantees. The Company shall provide to each Grantee, during the period for which such Grantee has one or more Awards outstanding, copies of financial statements at least annually and all annual reports and other
information which is provided to all shareholders of the Company. 
  

			
	Twofold Photos 2003 Common Stock Incentive Plan	 	11

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