Document:

Sublease, between National Financial Partners Corp & Keefe, Bruyette & Woods

 Exhibit 10.2 
 SUBLEASE 
 between 
 NATIONAL FINANCIAL PARTNERS CORP., 
 Sublessor 
 and 
 KEEFE, BRUYETTE & WOODS, INC., 
 Subtenant 
 SUBLEASED 
 PREMISES: 
 Entire 11th Floor 
 787 Seventh Avenue 
 New York, New York 10019 
 DATED: August 31, 2007 

 SUBLEASE 
 THIS SUBLEASE, dated as of this 31st day of August, 2007, between NATIONAL FINANCIAL PARTNERS CORP., a Delaware corporation (“Sublessor”), having an office at 787 Seventh Avenue, New York, New York
10019, and KEEFE, BRUYETTE & WOODS, INC., a New York corporation (“Subtenant”), having an office at 787 Seventh Avenue, New York, New York 10019. 
 WITNESSETH: 
 WHEREAS, Sublessor is the tenant
under that certain Agreement of Lease (the “Prime Lease”), dated September 9, 2004, between The Equitable Life Assurance Society of the United States and ELAS Securities Acquisition Corp. (collectively, “Prime
Landlord”), as landlord, and National Financial Partners Corp., as tenant, for all of the rentable space on the 11th floor (the
“Premises”) of the building (the “Building”) located at 787 Seventh Avenue, New York, New York; 
 WHEREAS, a true and complete copy of the Prime Lease (with certain numbers, dollar amounts, percentages and other sections that are not relevant to Subtenant blackened out) has been heretofore delivered to Subtenant and is attached hereto
as Exhibit A; and 
 WHEREAS, Sublessor and Subtenant are desirous of entering into a sublease for the entire Premises demised to
Sublessor pursuant to the Prime Lease, as shown on Exhibit B attached hereto (the “Subleased Premises”). 
  

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 NOW, THEREFORE, in consideration of the mutual covenants herein contained, and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto mutually covenant and agree as follows: 
 1. Demise of Subleased Premises. Sublessor hereby subleases and demises the Subleased Premises to Subtenant, and Subtenant hereby hires and subleases the Subleased Premises from Sublessor, for the term herein stated, for the rent
herein reserved, and upon and subject to the covenants, agreements, terms, conditions, and provisions hereinafter set forth. 
 2. Use of
Subleased Premises. Subtenant and its affiliates and/or subsidiaries shall have the right to use and occupy the Subleased Premises only for general and executive offices in connection with their respective businesses, commensurate with the
quality and character of the Building (including in each instance, uses incidental thereto) and for no other purposes. 
 3. Term. The
term (the “Term”) of this Sublease shall commence on the date which is five (5) days after the date on which Sublessor notifies the Subtenant in writing that the Subleased Premises are vacant and available for occupancy in
compliance with the terms and provisions of Article 10, subparagraph (a) hereof (the “Commencement Date”); provided that in no event shall the Commencement Date occur prior to completion by Sublessor of all items of
Sublessor’s Work referred to in Exhibit C hereto, which Sublessor’s Work shall be performed at the sole expense of Sublessor. The Term shall expire, unless sooner terminated pursuant to any term or provision hereof, on August 14, 2015
(the “Expiration Date”). If for any reason the Commencement Date shall not have occurred on or prior to June 1, 2008, the Rent Commencement Date determined pursuant to the provisions of Section 4(a) hereof shall be
adjourned for a number of days equal to the sum of (i) one (1) additional day for each day that 

  

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occurs after June 1, 2008 until the earlier of (a) July 31, 2008, or (b) the Commencement Date, and (ii) if for any reason the
Commencement Date shall not have occurred on or prior to August 1, 2008, the Rent Commencement Date shall be adjourned for two (2) additional days for each day that occurs on or after August 1, 2008 until the Commencement Date occurs.
In addition, in the event the Commencement Date shall not have occurred on or prior to September 1, 2008 (the “Outside Date”) Subtenant may give Sublessor notice (the “Termination Notice”) of Subtenant’s
intent to terminate this Sublease, and if the Commencement Date shall not have occurred on or before the date that is thirty (30) days following the delivery of the Termination Notice, this Sublease shall terminate on the date that is thirty
(30) days following the delivery of the Termination Notice, and upon such termination neither party hereto shall have any rights or obligations pursuant to this Sublease. 
 Except as specifically provided herein, Subtenant waives any right to rescind this Sublease under Section 223-a of the New York Real Property law or
any successor statute of similar nature and purpose then in force and further waives the right to recover any damages which may result from Sublessor’s inability to deliver possession of the Subleased Premises on that date set forth in this
Section for the commencement of the Term. 
 4. Sublease Rent. 
 (a) Subtenant shall pay to Sublessor a fixed annual rent (the “Sublease Rent”) as
follows: (i) for the period commencing on the Rent Commencement Date and ending on the last day of the month in which the fifth (5th) anniversary
of the Rent Commencement Date shall occur (the “First Rent Period Expiration Date”), the Sublease Rent shall be payable at the rate of Three Million Twenty-Three Thousand Six Hundred Seventy-Four ($3,023,674.00) Dollars per annum
and (ii) for the period commencing on the day after the First Rent Period Expiration Date 

  

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and ending on the Expiration Date, the Sublease Rent shall be payable at the rate of Three Million One Hundred Ninety-Nine Thousand Four Hundred Sixty-Nine
($3,199,469.00) Dollars per annum. The Sublease Rent shall be payable in equal monthly installments, in advance on the first day of the month for which such rent is due. Notwithstanding the foregoing, Subtenant’s obligation to pay Sublease Rent
shall not commence until the day (the “Rent Commencement Date”) which, subject to adjustment pursuant to the provisions of Article 3 hereof, shall be the day next following the three (3) month anniversary of the Commencement
Date. 
 (b) The Sublease Rent, additional rent, and other charges herein reserved or payable by Subtenant, shall be paid to Sublessor at the
address for Sublessor set forth in Section 18 hereof or at such other place as Sublessor may designate in a written notice to Subtenant, in lawful money of the United States of America, as and when the same shall become due and payable,
pursuant to the provisions of this Sublease without any deduction, set-off, or abatement whatsoever, except as expressly permitted hereunder. Where no other date is specified for the payment of additional rent required to be paid by Subtenant
pursuant to the provisions of this Sublease, same shall be payable thirty (30) days after Subtenant shall have received a written demand from Sublessor reasonably identifying and computing the amount due. 
 (c) No payment by Subtenant or receipt by Sublessor of any lesser amount than the amount stipulated to be paid hereunder shall be deemed other than on
account of the earliest stipulated rent or additional charges; nor shall any endorsement or statement on any check or letter be deemed an accord and satisfaction, and Sublessor may accept any check or payment without prejudice to Sublessor’s
right to recover the balance due or to pursue any other remedy available to Sublessor. 
  

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 5. The Prime Lease. 
 (a) This Sublease shall be subject (except as hereinafter expressly provided) to all of the terms, covenants, conditions, and provisions of the Included Provisions (hereinafter defined in Section 5(e) of this
Sublease), and to all mortgages and ground leases to which the Prime Lease is subordinate, as set forth in Article 7 of the Prime Lease. This provision is self-operative but Subtenant shall, at Sublessor’s request, promptly execute any
instrument reasonably requested by Sublessor or Prime Landlord to evidence or confirm same. 
 (b) Except as specifically provided herein,
the terms, covenants and conditions of the Included Provisions that relate to periods during the Term hereof, are incorporated herein by reference, so that each and every term, covenant and condition of the Included Provisions binding or inuring to
the benefit of Prime Landlord thereunder, and applicable to the public areas of the Building, or the Subleased Premises shall, in respect of this Sublease, bind or inure to the benefit of Sublessor, and each and every term, covenant and condition of
the Included Provisions binding or inuring to the benefit of the tenant thereunder shall, in respect of this Sublease, bind or inure to the benefit of Subtenant, with the same force and effect as if such terms, covenants and conditions were
completely set forth in this Sublease, and as if the words “Landlord” and “Tenant”, or words of similar import, wherever the same appear in the Included Provisions, were construed to mean, respectively,
“Sublessor” and “Subtenant” in this Sublease, as if the word “Term” wherever the same appears in the Included Provisions, were construed to mean the “Term” of this Sublease, as if
the words “Premises”, or words of similar import, wherever the same appear in the Included Provisions, were construed to mean “Subleased Premises” in this Sublease, as if the word “Lease” or words
of similar import, wherever the same appear in the Included Provisions, were construed to mean this “Sublease” and as if the words 

  

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“fixed rent” and “additional rent” or words of similar import, wherever the same appear in the Prime Lease, were construed
to mean “Sublease Rent”, and “additional rent”, as the case may be, in this Sublease, except to the extent that they are modified by the provisions of this Sublease and with the following exceptions:
(1) Subtenant shall have no options to rent additional space in the Building; and (2) Subtenant shall have no right to further sublet or assign the Subleased Premises or any portion thereof, except in accordance with the terms and
conditions of the Included Provisions. To the extent that the Included Provisions may conflict or be inconsistent with the provisions of this Sublease, whether or not such inconsistency is expressly noted herein, the provisions of this Sublease
shall prevail. The time limits contained in the Included Provisions for the giving of notices, making demands or the performing of any act, condition or covenant on the part of the tenant thereunder, or for the exercise by the tenant thereunder of
any right, remedy or option, are changed for the purpose of incorporation herein by reference by shortening same in each instance by two (2) business days, provided, however, that if the time limit contained in the Included Provisions is five
(5) days or less, the time limit shall be shortened by one (1) business day, so that Subtenant shall have a lesser time to observe or perform hereunder than Sublessor has as the tenant under the Included Provisions. If Subtenant receives
any notice or demand from Prime Landlord under the Prime Lease with respect to the Subleased Premises, the Subtenant shall promptly give a copy thereof to Sublessor and if the Sublessor receives any notice or demand from Prime Landlord with respect
to the Prime Lease, this Sublease or the Subleased Premises, the Sublessor shall promptly give a copy thereof to Subtenant. 
 (c) In the
event of any default by Subtenant which is not cured in the applicable grace period after notice is given, Sublessor shall have the same rights and remedies against Subtenant under this Sublease as are available to Prime Landlord against Sublessor
under the provisions of the Prime Lease. 
  

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 (d) So long as Subtenant shall not be in default hereunder beyond any applicable period of grace after
notice, Sublessor covenants and agrees to timely (i) pay all payment of rental amounts due and payable to Prime Landlord pursuant to the Prime Lease; (ii) maintain the Letter of Credit in full force and effect in compliance with Article 31
of the Primes Lease; and (iii) perform and observe all of its other obligations under the Prime Lease that are not obligations of Subtenant hereunder; and (iv) not amend, or consent to any modification or termination of the Prime Lease
without Subtenant’s prior approval. 
 (e) The following Articles and Sections of the Prime Lease shall not be incorporated herein by
reference and are herein referred to as the “Excluded Provisions”: all Definitions that are not applicable to the Included Provisions, Sections 1.1, 1.2, 3.6, Article 7, 9.3, Article 20, 27.2, 27.3, 27.4, the last sentence in
Article 22, Article 26, Article 31, Article 34, Section 37.2 except for the first sentence, Section 37.10 and Article 39. All of the terms and provisions of the Prime Lease that are not Excluded Provisions are herein referred to as the
“Included Provisions”. 
 Notwithstanding the exclusion of an Article or Section of the Prime Lease from incorporation by
reference herein, Sublessor shall perform all of its obligations thereunder, enforce Sublessor’s rights under any Excluded Provisions which requires Prime Landlord to provide services to the Subleased Premises, or to maintain the Building or
building systems, to the extent any such Article or Section affects the Subleased Premises. 
  

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 (f) For the purposes of incorporation herein as between Sublessor and Subtenant, the terms of the
Included Provisions are subject to the following additional modifications: 
 (i) In all provisions of the Included Provisions
(under the terms thereof and without regard to modifications thereof for purposes of incorporation into this Sublease) requiring the approval or consent of Prime Landlord, Subtenant shall be required to obtain the approval or consent of both
Sublessor and Prime Landlord; however wherever any of the provisions of the Incorporated Provisions require the satisfaction, approval, consent or waiver of Prime Landlord (collectively, “Landlord’s Consents”) to any action of
Subtenant hereunder, or for Prime Landlord to perform and/or provide any service or take any action required to be provided or taken by Prime Landlord pursuant to the Prime Lease, Sublessor hereby agrees to promptly deliver to Prime Landlord,
Subtenant’s request for such Landlord’s Consent and/or request that Prime Landlord provide any service or take any action, as the case may be; provided that except as herein otherwise expressly provided, Subtenant shall promptly reimburse
to Sublessor the reasonable out of pocket cost thereof. It is further understood and agreed that the receipt from Prime Landlord of the appropriate Landlord’s Consent shall also constitute receipt from Sublessor of its consent or approval, if
same is also required by this Sublease, and that the failure to receive the necessary Landlord’s Consent shall be deemed a basis for Sublessor to refuse the granting of its consent if required in such circumstance. 
  

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 (ii) In all provisions of any Included Provision requiring Sublessor to submit, exhibit
to, supply or provide Prime Landlord with evidence, certificates, or any other matter or thing, Subtenant shall be required to submit, exhibit to, supply or provide, as the case may be, the same to both Prime Landlord and Sublessor. 
 (iii) Sublessor shall, to the extent of alterations and improvements made by it to the Subleased Premises prior to the Commencement Date hereunder, have
the obligation, if required by Prime Landlord pursuant to the Prime Lease (including, without limitation, Section 5.3 thereof), to remove same and restore the Subleased Premises from resulting damage at expiration of the Term hereof.

 (g) Subtenant covenants and agrees (i) that except as may herein be otherwise provided, to perform and to observe all of the terms,
covenants, conditions and agreements of the Included Provisions on Sublessor’s part to be performed to the extent such terms, covenants, conditions and agreements are included in, and not deleted from, the copy of the Prime Lease attached
hereto and to the extent applicable to the Subleased Premises and the Building; (ii) that Subtenant will not do or cause to be done any act or thing to be done in violation of the Included Provisions, if same would or might cause the Prime
Lease, or the rights of Sublessor as tenant thereunder, to be cancelled, terminated or forfeited or to make Sublessor liable for any damages, claim or penalty; and (iii) to indemnify and save Sublessor and its agents, representatives and
employees harmless from and against all liability (statutory or otherwise) claims, suits, demands, damages, judgments, costs, interest and expenses (including reasonable counsel fees and disbursements incurred in the defense thereof) to which
Sublessor or any agent, representative or employee may be subject or suffer whether by reason thereof, or by reason of any claim for any 

  

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injury to or death of any person or persons or damage to property (including any loss or use thereof) arising out of, pertaining to, or resulting from acts
or omissions of the Subtenant and its agents, servants and/or employees, or otherwise arising from the use or occupancy of the Subleased Premises or of any business conducted therein, or from any work or thing whatsoever done or any condition
created by or any other act or omission of Subtenant, its permitted assignees or sub-subtenants, or their respective employees, agents, contractors, visitors or licensees, in or about the Subleased Premises or any other part of the Building that is
in contravention of the provisions of this Sublease. 
 (h) Any obligation of Sublessor which is contained in the Included Provisions in
respect to the making of repairs or the providing of services (including, without limitation, the providing of electricity) shall be deemed obligations of Prime Landlord (and not Sublessor), provided that Sublessor shall use reasonable efforts
(which, except as herein provided, shall not include legal proceedings) to cause the Prime Landlord to observe and/or perform the same, and Sublessor shall have a reasonable time to use reasonable efforts to enforce its rights to cause such
observance or performance. Subtenant shall not in any event have any rights in respect of the Subleased Premises pursuant to the Included Provisions that is greater than Sublessor’s rights thereunder, and, notwithstanding any provision to the
contrary, to the extent of obligations of Subtenant with respect to its use and occupancy of the Subleased Premises that are contained in this Sublease pursuant to the Included Provisions, Sublessor shall not be required to perform such obligation,
and except as may be expressly provided in this Sublease, Sublessor shall have no liability to Subtenant for any matter whatsoever, except for Sublessor’s obligation to pay the Fixed Rent or additional rent due under the Prime Lease (including,
without limitation, any amounts payable pursuant to Section 12.7 thereof), to maintain the security deposit and for 

  

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Sublessor’s obligation to use reasonable efforts (without incurring any unreimbursed out of pocket costs), upon written request of Subtenant, to cause
the Prime Landlord to provide consents and approvals, observe or perform its obligations under the Prime Lease, as they apply to the Subleased Premises. 
 (i) Notwithstanding anything to the contrary contained in this Sublease (including any of the provisions incorporated herein for the Prime Lease), except as may be herein otherwise expressly provided, Sublessor shall
not be obligated (i) to provide any of the services (including, without limitation, the providing of electricity to the Subleased Premises), that Prime Landlord has agreed to provide in the Included Provisions or is required to provide by law;
(ii) to make any of the repairs or restorations that Prime Landlord has agreed to make in the Included Provisions or is required to make by law; (iii) to take or to refrain from taking any other action that Prime Landlord has agreed to
take or to refrain from taking in the Included Provisions or is required by law to take or to refrain from taking; or (iv) to perform any obligation that Prime Landlord has agreed to perform pursuant to the Included Provisions. Subject to the
provisions of subdivision (m) of this Section 5, Sublessor shall have no liability to Subtenant (nor shall the obligations of Subtenant hereunder be impaired or the performance thereunder excused), on account of any failure of Prime
Landlord to provide, make, comply with, take or refrain from taking, or perform any of the foregoing, or for any inadequacy or defect in the character or supply of any facility or service to be provided by Prime Landlord to the Subleased Premises.

 (j) Except as may be herein expressly otherwise provided, in no event shall Sublessor, Prime Landlord, Subtenant or their respective
agents, representatives and employees be liable to any other party for indirect, consequential or punitive damages for breach of this Sublease. 
  

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 (k) Subtenant shall have the right to forward a request to Sublessor, or its agent for use of the freight
elevator facilities and after-hours use of the HVAC to the Subleased Premises pursuant to Section 28.3 of the Prime Lease, and Sublessor (or its agent) shall promptly forward such request to Prime Landlord. Sublessor shall have no liability to
Subtenant on account of any failure of Prime Landlord to provide such freight elevator usage or after-hours HVAC to the Subleased Premises. Subtenant shall pay to Sublessor, on demand, as additional rent, the amount charged by Prime Landlord for
freight elevator usage or after-hours HVAC to the Subleased Premises, provided in no event shall Subtenant be required to pay such amount before the corresponding amount is due pursuant to the Prime Lease. Sublessor acknowledges that the Subleased
Premises contain 20 tons of supplemental HVAC/Cooling for operation in connection with the Subleased Premises. Subtenant shall pay to Sublessor, on demand, as additional rent, $650 per connected ton, per year, provided in no event shall Subtenant be
required to pay such amount before the corresponding amount is due pursuant to the Prime Lease. 
 (l) Sublessor represents and warrants that
Subtenant shall during the Term have the use of: (i) a 20 ton unit that provides supplemental HVAC/Cooling for the Subleased Premises which unit is presently hooked up to the Building water tower and receiving condenser water from the Building;
provided that Subtenant shall not be obligated to make payment of the one time Tap-In Fee of $1,500 per tap and provided that, subject to the accuracy of Sublessor’s representation and warranty set forth in Section 8(a)(viii), the repair,
maintenance and replacement of such unit shall be the obligation of Subtenant; (ii) the 100 KW of electricity generation (from the Building’s Emergency Generator) that is presently allocated to the Data Center in the Subleased Premises.

  

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 (m) Anything to the contrary in this Sublease notwithstanding, in the event Sublessor, using reasonable
efforts, is unable to cause Prime Landlord to provide any requested consent or approval, observe any of its obligations under the Prime Lease to provide services to the Premises, comply with law, or maintain the Building or the Building systems or
otherwise fulfill its obligations under the Prime Lease, as those obligations affect the Subleased Premises and/or Subtenant’s use or occupancy thereof, Subtenant, at Subtenant’s expense, upon five (5) business days prior notice to
Sublessor, and using counsel selected by Subtenant and reasonably approved by Sublessor, may prosecute any necessary action and appeal against Prime Landlord in the name of Sublessor, and Sublessor shall, at Subtenant’s sole cost and expense,
cooperate with Subtenant in any such action and appeal. Subtenant shall indemnify and hold Sublessor harmless from and against any and all losses, costs, liability, claims, damages, expenses (including, without limitation, reasonable attorneys’
fees), penalties and fines which Sublessor may incur as a result of the taking of any action by Subtenant pursuant to this subsection (i). 
 (n) If Prime Landlord shall be entitled to any payment or remuneration by reason of additional services provided at the request of Subtenant or for any other reason specified in the Prime Lease resulting from acts or omissions of Subtenant,
Subtenant shall pay the same promptly upon demand as additional rent hereunder, provided that in no event shall Subtenant be required to pay same before the corresponding amount, if any, is due pursuant to the Prime Lease. 
 (o) Sublessor shall use reasonable efforts, at the sole cost and expense of Subtenant, to (i) procure Landlord’s cooperation in securing
Subtenant’s Proportionate Share of 

  

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directory listings on the directory in the lobby of the Building and (ii) secure signage rights on the floor on which the Subleased Premises are located
in accordance with the Building’s Rules and Regulations and the terms of the Prime Lease. 
 6. Additional Rent. 
 (a) Subtenant shall pay to Sublessor, as additional rent hereunder for the period during the Term commencing immediately after expiration of the Base Tax
Year and Base Operational Year, as the case may be, in the manner provided by Article 27 of the Prime Lease: (i) Subtenant’s Proportionate Share (as hereinafter defined) of the amount by which Operating Expenses (as defined in the Prime
Lease) for each Operating Year (as defined in the Prime Lease) or portion thereof occurring during the Term of this Sublease, exceed Operating Expenses for the Base Operational Year (as hereinafter defined) (the “Operating
Payment”); (ii) Subtenant’s Proportionate Share of the amount by which Taxes (as defined in the Prime Lease) for each Tax Year (as defined in the Prime Lease) or portion thereof occurring during the Term of this Sublease, exceed
the Taxes with respect to the Base Tax Year (as hereinafter defined) (the “Tax Payment”); and (iii) all other costs, expenses, charges, or adjustments payable by Subtenant under this Sublease, arising as a result of
Subtenant’s acts in the Subleased Premises. Subtenant shall have the rights of Sublessor to pursue and receive refunds for overpayments pursuant to the provisions of Section 27.3 and 27.5 of the Prime Lease. 
 (b) For the purposes of this Section 6, the following terms shall have the following meanings: 
 (i) “Subtenant’s Proportionate Share” shall mean Tenant’s Share (as defined in the Prime Lease). 
  

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 (ii) “Base Operational Year” shall mean the calendar year commencing on January 1,
2008 and ending on December 31, 2008. 
 (iii) “Base Tax Year” shall mean the fiscal year commencing on July 1,
2008 and ending on June 30, 2009. 
 (c) Tenant shall pay the Tax Payment as additional rent as hereinafter set forth. After the amount
of Taxes for each Tax Year is determinable, Sublessor shall furnish Subtenant with a written statement (the “Tax Statement”), which shall include and be based upon the Tax Statements (as defined in the Prime Lease) received from
Prime Landlord, indicating (i) the amount of Taxes which Prime Landlord will be required to pay for such Tax Year, and which Prime Landlord was required to pay for the Base Tax Year, and (ii) Sublessor’s computation of the Tax Payment
for such Tax Year. The Tax Payment to be paid by Subtenant pursuant to this subsection (c) shall be payable on the later of (x) fifteen (15) days prior to the dates on which interest and penalties accrue on such Taxes if not paid, or
(y) fifteen (15) days after Sublessor has furnished Tenant with the Tax Statement for such Tax Year. 
 (d) Tenant shall pay the
Operating Payment as additional rent as hereinafter set forth. Sublessor shall furnish to Subtenant, prior to or following the commencement of each Operating Year after the Base Operational Year, a written statement (the “Operating
Statement”) setting forth Sublessor’s estimate of Subtenant’s Operating Payment for such Operating Year and the actual Operating Expenses for the Base Operational Year, which Operating Statement shall include and be consistent
with the information set forth in the Operating Statement (as defined in the Prime Lease) delivered by Prime Landlord for such Operating Year. Subtenant shall pay to Sublessor as additional rent on the first day of each month during such Operating
Year, together with the payment of the Sublease Rent, an amount equal to one-twelfth (1/12th) of Sublessor’s 

  

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estimate of Subtenant’s Operating Payment for such Operating Year. If, however, Sublessor shall furnish any such estimate for an Operating Year
subsequent to the commencement thereof then (a) until the first day of the month following the month in which such estimate is furnished to Subtenant, Subtenant shall pay to Sublessor on the first day of each month an amount equal to the
monthly sum which was payable by Subtenant to Sublessor under this Section (d) for the last month of the preceding Operating Year; (b) promptly after such estimate is furnished to Subtenant, or together therewith, Sublessor shall give
notice to Subtenant stating whether the installments of Subtenant’s Operating Payment previously made for such Operating Year were greater or less than the installments of the Subtenant’s Operating Payment to be made for such Operating
Year in accordance with such estimate, and (i) if there shall be a deficiency, Subtenant shall pay the amount thereof within fifteen (15) days after demand therefor, or (ii) if there shall have been an overpayment, Sublessor shall
credit the amount thereof against any subsequent payment(s) payable by Subtenant under this subsection; and (c) on the first day of the month following the month in which such estimate is furnished to Subtenant, and monthly thereafter
throughout the remainder of such Operating Year, Subtenant shall pay to Sublessor an amount equal to one-twelfth (1/12th) of Subtenant’s Operating Payment, as shown on such estimate. Following the end of an Operating Year, upon receipt of
the corresponding information from Prime Landlord, Sublessor shall submit to Subtenant a statement setting forth the amount of Subtenant’s Operating Payment for such Operating Year. If the installments of Subtenant’s Operating Payments
made on account of such Operating Year exceed the amount of Subtenant’s Operating Payment due on account of such Operating Year, such excess shall be credited by Sublessor against the next succeeding installment(s) of Subtenant’s Operating
Payment payable by Subtenant pursuant hereto. If, however, said installment(s) do not equal Subtenant’s Operating 

  

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Payment due on account of such Operating Year, then Subtenant agrees to pay to Sublessor the amount necessary to make up any deficiency within fifteen
(15) days after the delivery of Sublessor’s statement hereunder. 
 (e) If the Commencement Date is not the first day of an
Operating Year or Tax Year, or if the date of expiration or termination of this Sublease (except for a termination due to Subtenant’s default), whether or not same is the Expiration Date or another date prior or subsequent thereto, is not the
last day of an Operating Year or Tax Year, the Subtenant’s Operating Payment and Tax Payment shall be prorated based upon the number of days of the applicable Operating Year or Tax Year within the Term. 
 (f) In no event shall the Sublease Rent be reduced as a result of the application of the provisions of this Section 6. 
 7. Late Payment Charge. In the event that Subtenant fails to pay to Sublessor any installment of Sublease Rent or additional rent, or any portion
thereof, when such payment is due pursuant to this Sublease, or in the event Subtenant fails to make any other payment, in whole or in part, due pursuant to this Sublease or any other amounts due and owing under the terms of the Prime Lease as
incorporated herein by reference, within three (3) days after its due date, Subtenant shall pay interest on any such unpaid sum from three (3) days after its due date until the date when such payment is made at a rate of interest equal to
the Applicable Rate (as defined in the Prime Lease). For purposes of this Sublease, payments shall be deemed made when received by Sublessor at its address as set forth in Section 18 of this Sublease. 
 8. Sublessor’s Representations and Warranties. 
 (a) Sublessor represents and warrants to, and covenants with, Subtenant as follows: 
 (i) Sublessor has all
requisite power and authority to execute, deliver and perform its obligations under this Sublease; without the necessity of any third party consent, approval or waiver; and the execution, delivery and performance of this Sublease by Sublessor and
the consummation of all of the transactions contemplated hereby have been duly authorized by all necessary corporate action of Sublessor; 
  

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 (ii) Exhibit A hereto constitutes a true, correct and complete copy of the Prime Lease as redacted in
accordance with the Preamble to this Sublease; 
 (iii) the Prime Lease is in full force and effect, and to its knowledge, Sublessor is not
in default in the performance of any of its obligations thereunder; 
 (iv) “Tenant’s Proportionate Share” under the
Prime Lease is 2.195%; 
 (v) no dispute or litigation are in existence or pendency between Sublessor and Prime Landlord with respect to the
Prime Lease; 
 (vi) all of the alterations and improvements in the Subleased Premises heretofore undertaken by Sublessor in the Subleased
Premises have been completed in full compliance with all legal requirements and the provisions of the Prime Lease and have been fully paid for by Sublessor and there are no open notices of violation of governmental or building codes that affect the
Subleased Premises; 
 (vii) attached as Exhibit D is a true and complete copy of the Consent of Prime Landlord which was executed and
delivered in connection with this Sublease; 
  

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 (viii) attached as Exhibit E is a true and complete listing and inventory for all of the furniture,
fixtures and equipment (“FFE”) that will be located in the Sublease Premises on and as of the Commencement Date. Sublessor represents and warrants that it is the owner of the FFE, that same has been fully paid for and that
Sublessor’s title thereto is not subject to any liens or encumbrances. Sublessor further represents and warrants that the telephone systems, the IT System and the supplemental air conditioning system included in the FFE (collectively, the
“Electronic Systems”) will be in working and operational order on and as of the Commencement Date. 
 (viii) Sublessor will
not terminate this Sublease pursuant to the provisions of Article 12 of the Included Provisions, unless Prime Landlord shall have terminated the Prime Lease. 
 (b) Without limiting its rights in such regard pursuant to this Sublease or pursuant to applicable law, in the event Sublessor shall default in the performance of its obligations under the Prime Lease, and shall
receive a notice of Default from the Prime Landlord, Subtenant on not less than three (3) days notice to Sublessor may, but shall not be obligated to, perform such obligation on behalf of Sublessor, in which event, Sublessor shall, on
Subtenant’s demand, make payment to Subtenant, of the cost expended thereby, plus interest thereon at the default rate of interest provided for in the Prime Lease, or at Subtenant’s election, Subtenant shall have the right to set off such
amount, plus interest thereon as aforesaid against Subtenant’s obligation to pay Sublease Rent or additional rent hereunder. Subtenant shall indemnify and hold Sublessor harmless from and against any liability or damage incurred by Sublessor as
a result of Subtenant’s actions pursuant to this subsection (b). 
  

 20 

 9. Remedies of Sublessor. In the event that Subtenant defaults beyond applicable notice and grace
periods, if any, in its obligations under this Sublease, Sublessor shall be entitled to exercise all rights available under the terms of this Sublease including, without limitation, any remedy provided for in the Included Provisions, and Subtenant
shall be liable for any damages set forth in the Prime Lease. If Sublessor elects to cancel this Sublease or dispossess Subtenant as a consequence of Subtenant’s default, Sublessor shall be entitled to re-let the Subleased Premises in
accordance with the terms of the Prime Lease. In the event that a default by Subtenant results in the termination of the Prime Lease prior to its ordinary expiration date or in any other liability of Sublessor to Prime Landlord, Subtenant shall
fully indemnify Sublessor from and against any damages which Sublessor incurs to the Prime Landlord in connection with such termination. 
 10. Delivery of Subleased Premises; Completion and Occupancy of Subleased Premises. 
 (a) Sublessor covenants and agrees to
deliver possession of the Subleased Premises to Subtenant on the Commencement Date, free of all tenancies and occupancies and with Sublessor’s Work therein having been completed. 
 (b) Subtenant has examined the Subleased Premises and agrees to accept the same in its “as-is”, broom-clean condition and state of repair,
subject to Sublessor’s Work and the provisions of this Sublease. Except as herein expressly provided, Sublessor has not made and does not make any representations or warranties as to the physical condition of the Subleased Premises (including
any latent defects in or to the Subleased Premises), the uses to which the Subleased Premises may be put, or any other matter or thing affecting or relating to the Subleased Premises. Except as specifically set forth in this Sublease, Sublessor
shall have no obligation whatsoever to alter, improve, decorate or otherwise prepare the Subleased Premises for Subtenant’s occupancy. 
  

 21 

 (c) The taking of occupancy or possession of the whole or any part of the Subleased Premises by Subtenant
shall be conclusive evidence, as against Subtenant, that Subtenant accepts possession of the space so occupied and that the same were in good and satisfactory condition at the time such occupancy or possession was so taken; provided that Subtenant,
within five (5) days after the Commencement Date, shall have the right to advise Sublessor of any “punch list” items in the completion of Sublessor’s Work and Sublessor, at its sole cost, will promptly correct such punch list
items in a manner designated to minimize any interferences with Subtenant’s business. 
 (d) Furniture, Fixtures &
Equipment. 
 (i) The items of furniture and fixtures listed in Exhibit E are conveyed by Sublessor to Subtenant on the Commencement Date
in their as-is condition, subject to Sublessor’s representations as to title thereto set forth in this Sublease. From and after the Commencement Date, Subtenant may deal with such items as Subtenant’s property; 
 (ii) Tenant shall have the right to use the Electronic Systems set forth in Exhibit E during the Term, for the intended use thereof, subject to
reasonable wear and tear, however, Sublessor shall retain title thereto, provided that if such equipment shall become inoperable, obsolete or no longer suitable for Subtenant’s business in Subtenant’s sole discretion, Subtenant shall have
the right to dispose of same, without having to account to Sublessor with respect thereto. At the end of the Term, the Electronic Systems, or so much thereof as shall remain on the Subleased Premises at such time, shall be left on the Subleased
Premises and Sublessor shall be obligated to satisfy any requirement of the Prime Lease with respect to the 

  

 22 

 
disposition thereof. Subject to the foregoing, Subtenant shall have the obligation to maintain the Electronic Systems during the Term and Sublessor, at the
request of Subtenant, shall assign to Subtenant any rights Sublessor may have under any manufacturers or installers’ warranty or service contract relating to such Electronic Systems. 
 (e) Any Improvements to be made by Subtenant in the Subleased Premises shall be made in accordance with, and subject to, the provisions of Article 3 of
the Prime Lease. 
 11. Care of Subleased Premises. Subtenant shall, at its expense, take good care of the Subleased Premises during
the Term and the appurtenances therein and make all repairs thereto, as and when needed to preserve them in good order and condition, as required pursuant to the terms of the Prime Lease. 
 12. Assignment and Subletting. 
 (a)
Any subletting or assignment by Subtenant shall be made in accordance with Article 12 of the Prime Lease. 
 (b) In connection with any
subletting of all or any portion of the Subleased Premises, Sublessor shall be entitled to and Subtenant shall pay to Sublessor a sum equal to fifty percent (50%) of any Sublease Profit derived therefrom; provided that such Sublease Profit (as
defined in the Prime Lease) shall not include the amount Subtenant is required to pay to Prime Landlord pursuant to the Included Provisions. 
 13. Electricity. 
 (a) Subtenant shall be entitled to receive electricity pursuant to the Included Provisions. Subtenant
shall at all times comply with the rules, regulations, terms and conditions applicable to service, equipment, wiring and requirements of the public utility supplying electricity to the Building. Subtenant shall not use any electrical equipment or
accessories in the 

  

 23 

 
Subleased Premises other than for normal office use without the prior written consent of Sublessor. The risers servicing the Subleased Premises shall be
capable of furnishing six (6) watts demand load of electricity per gross square foot of the Subleased Premises (exclusive of base Building HVAC). Subtenant’s use and consumption of electricity shall not exceed a demand loan of six
(6) watts per gross square foot of the Subleased Premises. 
 (b) The amount to be paid by Subtenant for electricity consumed shall be
determined in accordance with Article 13 of the Prime Lease. 
 14. Damage; Destruction. 
 (a) If the Subleased Premises shall be damaged by fire or other casualty or be condemned or taken in any manner for a public or quasi-public use,
Subtenant agrees that it shall be the obligation of the Prime Landlord, and not of the Sublessor to repair, restore or rebuild the Subleased Premises, in accordance with the provisions of Article 10 of the Prime Lease, provided however, that
Sublessor shall pay to Subtenant any insurance proceeds received by Sublessor with respect to any Alterations performed in the Subleased Premises prior to the date hereof. 
 (b) Subtenant hereby expressly waives the provisions of Section 227 of the New York Real Property Law, and of any successor law of like import then
in force, and Subtenant agrees that the provisions of this Article and the Prime Lease shall govern and control in lieu thereof. 
 15.
Insurance. 
 (a) Sublessor covenant and agrees to maintain “all risk” insurance on all Alterations performed in the
Subleased Premises by Sublessor prior to the date hereof, which “all risk” insurance shall be maintained in accordance with the provisions of Section 9.3 of the Prime 

  

 24 

 
Lease. Except as set forth in the preceding sentence, Subtenant understands that: (i) Sublessor will not carry insurance of any kind on Subtenant’s
goods, furniture or furnishings or on any fixtures, equipment, improvements, installations or appurtenances removable by Subtenant and that neither Prime Landlord nor Sublessor shall be obligated to repair any damage thereto or replace same and
(ii) the insurance referred to in Section 9.3 of the Prime Lease shall be maintained by Prime Landlord and not Sublessor. 
 (b)
Subtenant shall maintain comprehensive general public liability insurance and an “all risk” insurance policy in respect of the Subleased Premises and the conduct and operation of business therein, with Sublessor and the Prime Landlord as
additional insureds, as required by Section 9.2 of the Prime Lease (the “Insurance”). Subtenant shall deliver to Sublessor and Prime Landlord a certificate of insurance prior to the Commencement Date. Subtenant shall procure
and pay for renewals of the Insurance prior to expiration and Subtenant shall deliver to Sublessor and the Prime Landlord such renewal policy or certificate of insurance at least twenty (20) days prior to the expiration of any existing policy.
All such policies shall be issued by companies of recognized responsibility permitted to do business in the State of New York, and to the extent commercially available, all such policies shall contain a provision whereby the same cannot be cancelled
unless Sublessor and the Prime Landlord are given at least thirty (30) days’ prior written notice of such cancellation, and shall otherwise comply with Section 9.4 of the Prime Lease. 
 16. Surrender of Subleased Premises. 
 (a) Upon the expiration or other termination of the term, Subtenant shall (i) quit and surrender to Sublessor the Subleased Premises, broom clean, in good order and condition, ordinary wear and tear and damage by casualty excepted, and
(ii) remove all of its 

  

 25 

 
property as herein provided, and all Improvements installed on or after the date hereof by, or on behalf of, Subtenant which, pursuant to the terms of the
Prime Lease Sublessor and/or Subtenant are required to remove. Subtenant’s obligation to observe or perform this covenant shall survive the termination of this Sublease. 
 (b) If Subtenant shall fail to duly and timely surrender the Subleased Premises in accordance with the terms and conditions of this Sublease and the
Prime Lease, either at the expiration of the term of this Sublease, upon the occurrence of a default which continues beyond the expiration of applicable grace or cure periods, or upon the occurrence of any other event causing the termination of this
Sublease (a “Holdover”), Sublessor shall be responsible for any holdover penalties resulting under the Prime Lease from Subtenant’s failure to duly and timely surrender the Subleased Premises. If the Subleased Premises are not
surrendered upon termination, then Subtenant shall indemnify and hold harmless Sublessor against any loss, costs, liability or expenses (including attorneys fees) resulting from the failure to surrender, including any and all claims made by Prime
Landlord or any succeeding lessee or sublessee founded upon such delay or failure to vacate the Subleased Premises. Nothing contained in this subsection (b) shall be deemed to give to Subtenant any right to fail to surrender possession or to
hold over. 
 17. Notices. Any notice, statement, demand, consent, approval, advice or other communication required or permitted to be
given, rendered or made by either party to the other, pursuant to this Sublease or pursuant to any applicable law or requirement of public authority (collectively, “Notice”) shall be in writing and shall be deemed to have been
properly given, rendered or made only if delivered by hand (against a signed receipt) or if sent by registered mail (return receipt requested), addressed, if to Subtenant, to Subtenant at 787 Seventh Avenue, New York, New York 10019, Attention:
Daniel J. Galligan, and a copy thereof shall be sent to 

  

 26 

 
Robinson Brog Leinwand Greene Genovese & Gluck P.C., 1345 Avenue of the Americas, New York, New York 10105, Attention: Harvey Feldschreiber, or if
to Sublessor, to Sublessor at 787 Seventh Avenue, New York, New York 10019, Attention: General Counsel, and a copy thereof shall be sent to Skadden, Arps, Slate, Meagher & Flom LLP, 4 Times Square, New York, New York 10036, Attention:
Richard R. Kalikow. 
 Either party may, by Notice actually received, designate (i) a different address in the United States for Notices
intended for it, and (ii) require the other party to provide a copy of any Notices to any other person at any other address in the United States. 
 18. Termination of Prime Lease. If for any reason the term of the Prime Lease is terminated prior to the Expiration Date of this Sublease, this Sublease shall thereupon be terminated and Sublessor shall not be
liable to Subtenant by reason thereof unless such termination is due to the negligence or wrongful acts of Sublessor, its agents, employees or contractors or a breach by Sublessor of its obligations under the Prime Lease or this Sublease.

 19. Brokerage. Sublessor and Subtenant each represents and warrants to the other that it dealt with no broker in connection with
this Sublease other than Cushman & Wakefield, Inc. (the “Broker”) and that no broker brought about or was involved in the negotiation of this Sublease other than Broker. Sublessor and Subtenant shall indemnify and hold the
other harmless from and against all losses, costs, damages, expenses and liabilities including, without limitation, reasonable attorneys’ fees, resulting from any claims that may be made for a commission, fee or other compensation by reason of
this Sublease by any broker or person with whom such party has dealt in connection herewith, other than the Broker. Sublessor agrees to make payment to the Broker of all fees and commissions payable to the Broker in connection with this Sublease and
to indemnify and save Subtenant harmless with respect thereto. 
  

 27 

 20. Non-disturbance. Sublessor shall use reasonable efforts to obtain for Subtenant, a
Subtenant’s Non-Disturbance Agreement from Prime Landlord on the terms and conditions of this Sublease; provided however, that the delivery of such Non-Disturbance Agreement shall not be a condition to Subtenant’s obligations hereunder.

 21. Sublessor’s Indemnity. Sublessor hereby agrees to indemnify and save Subtenant harmless from and against any and all
costs, claims, liabilities, and/or expenses (including, without limitation, legal fees and disbursements) which are attributable to or result from: (i) liability resulting from any act or omission occurring in or about the Subleased Premises
prior to the Commencement Date; (ii) the inaccuracy of any of the representations and warranties of Sublessor set forth in Article 8 or elsewhere in this Sublease; (iii) any failure by Sublessor to perform any of its obligations under this
Sublease or in the performance of any of the obligations of Sublessor pursuant to the Prime Lease, to the extent Subtenant has not agreed to perform such obligations on Sublessor’s behalf, pursuant to the terms of this Sublease. 
 22. Applicable Law. This Sublease and all of its terms and provisions shall be construed in accordance with the laws of the State of New York.

 23. Covenant of Quiet Enjoyment. So long as Subtenant pays all of the Sublease Rent and additional rent payable hereunder and
performs all of Subtenant’s other obligations hereunder, Subtenant shall peaceably and quietly have, hold and enjoy the Subleased Premises subject, nevertheless, to the obligations of this Sublease (including the Included Provisions), and the
leases, mortgages and other rights and encumbrances referred to in Article 7 of the Prime Lease. 
  

 28 

 24. Miscellaneous. 
 (a) Nothing contained in this Sublease shall be construed to create privity of estate or of contract between Subtenant and the Prime Landlord. 
 (b) The provisions of this Sublease shall extend to, bind and inure to the benefit of the parties hereto and their respective personal representatives,
heirs, successors and assigns, but the provisions of this paragraph shall not be construed as a consent by Sublessor to any assignment or subletting by Subtenant. 
 (c) This Sublease contains the entire agreement between the parties and all prior negotiations and agreements are merged in this Sublease. Any agreement hereafter made shall be ineffective to change, modify or
discharge this Sublease in whole or in part unless such agreement is in writing and signed by the parties hereto. No provision of this Sublease shall be deemed to have been waived by Sublessor or Subtenant unless such waiver be in writing and signed
by Sublessor or Subtenant, as the case may be. The covenants and agreement contained in this Sublease shall bind and inure to the benefit of Sublessor and Subtenant and their respective permitted successors and assigns. 
 (d) In the event that any provision of this Sublease shall be held to be invalid or unenforceable in any respect, the validity, legality or
enforceability of the remaining provisions of this Sublease shall be unaffected thereby. 
 (e) Capitalized terms used herein shall have the
same meanings as are ascribed to them in the Prime Lease, unless otherwise expressly defined herein. 
 25. No Offer. Until executed
by Sublessor and Subtenant, the within Sublease shall be of no force or effect, and submission of a copy or copies thereof to Subtenant or Sublessor shall not be deemed to constitute an offer to sublease, and the return thereof may be requested by
Sublessor or Subtenant at any time. 
  

 29 

 IN WITNESS WHEREOF, Sublessor and Subtenant have respectively executed this Sublease as of the day and
year first above written. 
  

			
	SUBLESSOR:
	
	NATIONAL FINANCIAL PARTNERS CORP.
		
	By:	 	 /s/ Mark Biderman

	Name:	 	Mark Biderman
	Title:	 	Executive Vice President and Chief Financial Officer

  

 30 

			
	SUBTENANT:
	
	KEEFE, BRUYETTE & WOODS, INC.
		
	By:	 	 /s/ John G. Duffy

	Name:	 	John G. Duffy
	Title:	 	Chairman and Chief Financial Officer

  

 31 

 EXHIBIT A 
 Prime Lease 
 [Omitted] 
  

 32 

 EXHIBIT B 
 Premises 
 [Omitted] 
  

 33 

 EXHIBIT C 
 Sublessor’s Work 
 [Omitted] 
  

 34 

 EXHIBIT D 
 Prime Landlord’s Consent 
 [Omitted] 
  

 35 

 EXHIBIT E 
 Furniture, Fixtures and Equipment 
 [Omitted] 
  

 36Employment Agreement with Jeffrey M. Cavins

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT
AGREEMENT (the “Agreement”) is made and entered into, effective as of September 5, 2007 (the “Effective Date”), by and between CALLWAVE, INC.,
a Delaware corporation (the “Company”), and JEFFREY M. CAVINS (“Employee”), with reference to the following facts: 
 RECITALS: 
 The parties
have agreed to execute this Agreement in order to memorialize the terms and conditions on which the Company shall employ Employee from and after the Effective Date of this Agreement. 
 AGREEMENTS: 
 NOW, THEREFORE, the parties hereto, intending to be legally bound, do hereby agree as follows: 
 1. POSITION AND DUTIES 
 1.1 POSITION
AND TITLE. The Company hereby hires Employee to serve as the President and Chief Executive Officer of the Company. 
 (a) LIMITS ON AUTHORITY. Employee shall perform his duties as President and Chief Executive Officer of the Company pursuant to this Agreement in
compliance with applicable law, consistent with such direction as the Company’s Board of Directors supplies to Employee from time to time, and in accordance with Company’s policies and procedures as published from time to time. 

(b) ANNUAL REVIEWS. Promptly following each annual anniversary of the Effective Date of this
Agreement, the Company shall review Employee’s performance of his duties pursuant to this Agreement and advise Employee of the results of that review. In connection with each such review, the Company shall evaluate whether any increase in
Employee’s compensation under Section 2, below, is appropriate. Each annual salary increase shall be retroactively effective as of the annual anniversary of the Effective Date. 
 (c) REPORTING AND AUTHORITY. Employee shall report to the Company’s Board of
Directors. Subject to the power and authority of the Company’s Board of Directors to govern the affairs of the Company, Employee shall have full authority and responsibility for supervising and managing the daily affairs of the Company,
including (i) working with the Company’s Board of Directors to develop and approve business objectives, policies and plans that improve profit and growth objectives, (ii) communicating business objectives and plans within the Company,
(iii) ensuring that plans and policies are promulgated to and implemented by subordinate managers, (iv) directing operations to achieve planned performance goals and developing management systems to effectively control each Company unit,
(v) ensuring that each operating unit provides those functions required for achieving its business objectives and that each unit is properly organized, staffed and directed to fulfill its responsibilities, (vi) developing the organization
and personnel, products, facilities, technology, and appropriate financial resources to secure the position of the Company and to facilitate its planned development, (vii) directing periodic reviews of the Company’s strategic market
position and combining this information with corollary analysis of the Company’s products and financial resources, (viii) providing periodic financial information concerning the operations of the business, human resources and sales growth
plans to the Company’s Board of Directors, and (ix) ensuring that the operation of the Company complies with applicable laws. 
  

 -1- 

 1.2 ACCEPTANCE. Employee hereby accepts employment by the
Company in the capacity set forth in Section 1.1, above, and agrees to perform the duties of such position from and after the Effective Date of this Agreement in a diligent, efficient, trustworthy, and businesslike manner. Employee
agrees that, to the best of the Employee’s ability and experience, Employee at all times shall loyally and conscientiously discharge all of the duties and responsibilities imposed upon Employee pursuant to this Agreement. 
 1.3 BUSINESS TIME. Employee shall devote his exclusive business time to the performance of his duties
under this Agreement. 
 1.4 LOCATION. Employee shall perform his duties under this Agreement from the
Company’s principal offices in Santa Barbara, California, provided, however, that Employee may work from his principal residence in Seattle, Washington, every Friday. Employee acknowledges and agrees that from time to time he shall be
required to travel (at the cost and expense of the Company) to other locations outside of Santa Barbara, California, in order to discharge his duties under this Agreement. 
 1.5 TERM. Subject to sooner termination pursuant to Section 4 below, the term of this Agreement
shall commence as of the Effective Date and shall expire on the third annual anniversary thereof in September 2010. 
 2.
COMPENSATION. The Company shall compensate Employee for his services pursuant to this Agreement as follows: 
 2.1 SALARY. The Company shall pay to Employee an annual salary in the amount of Three Hundred Thousand Dollars ($300,000.00) (“Base Compensation”), payable in periodic
installments in accordance with the Company’s regular payroll practices as in effect from time to time. Such annual salary shall be subject to periodic increases, in such amounts (if any) as the Company may determine to be appropriate, at the
time of Employee’s annual review pursuant to Section 1.1(b), above, or at such other times (if any) as the Company may select. 
 2.2 ANNUAL BONUS. Employee shall be eligible for discretionary annual bonus compensation, in the discretion of the Company and based upon the performance of Employee and the Company, as
follows: 
 (a) CASH BONUS. Employee shall be eligible to receive in each fiscal year
during the term of this Agreement a cash bonus of up to sixty percent (60%) of his Base Compensation in effect for the then current fiscal year (the “Target Bonus”), with such 60% threshold applying for the current fiscal year
to the level of Base Compensation set forth in Section 2.1, above. The payment of the Target Bonus shall be based upon the achievement of individual and corporate annual goals identified by the Company annually, after receiving input
from Employee. The Company shall evaluate Employee’s performance and achievement of such goals on an annual basis and inform Employee of the amount (if any) of such bonus promptly (and in all events within 45 days) following the end of each
fiscal year. 
 (b) OPTION GRANT. Employee also shall be eligible to receive the
following option grants: 
 (i) 2007 OPTION GRANT. Concurrently herewith or on the date
of the first meeting of the Company’s Board of Directors following the Effective Date hereof, the Company shall grant to Employee an option to purchase five hundred thousand (500,000) shares of Company common stock at an exercise price
equal to the fair market value of such common stock on the date that such option is approved by the Company’s Board of Directors (the “Date of Grant”), as determined under the Company’s 2004 Stock Incentive Plan, vesting
over a period of four (4) years from the Date of Grant, with (A) 12.5% vested following 

  

 -2- 

 
six (6) months’ continuous employment, and (B) the remaining 87.5% vesting in equal monthly increments over the subsequent forty-two
(42) months of the term of this Agreement, subject to acceleration in such vesting at the time and upon the occurrence of the conditions, and further subject to the other terms and conditions, respectively set forth in the form of Stock Option
Agreement attached hereto at EXHIBIT A. 
 (ii) FUTURE ANNUAL OPTION
GRANTS. Commencing with the Company’s fiscal year commencing July 1, 2008, Employee shall be eligible to receive annually an option to purchase at least one hundred and ten thousand (110,000) shares
of Company common stock at the exercise price determined under the Company’s 2004 Stock Incentive Plan and vesting over a period of four (4) years from the date of grant, with (A) 12.5% vested following six (6) months’
continuous employment, and (B) the remaining 87.5% vesting in equal monthly increments over the subsequent forty-two (42) months, and on such other terms and conditions as are customary under the 2004 Stock Incentive Plan, with such
vesting (A) accelerating in full if any acquirer in a Change of Control Transaction (as defined in Section 5.1, below) does not assume Employee’s option, or (B) if Employee’s employment is terminated without Cause or
Employee resigns for Good Reason within twenty-four months following a Change of Control. 
 2.3 FRINGE
BENEFITS/VACATION. Employee shall accrue four (4) weeks’ paid vacation in each period of twelve (12) consecutive months of employment during the term of this Agreement. Employee
shall be eligible for such other fringe benefits as are provided to the Company’s employees generally from time to time. If Employee accumulates eight (8) weeks’ accrued and unused vacation time, then further accruals shall cease
until Employee’s accrued and unused vacation time is less than eight (8) weeks. 
 2.4 TEMPORARY
HOUSING ALLOWANCE. The Company acknowledges that Employee will maintain his principal residence at his current home in Seattle, Washington, and shall pay to Employee a temporary housing
allowance in the amount of two thousand five hundred dollars ($2,500) per month for a period of twelve (12) months following the Effective Date in order to assist Employee in defraying the cost of temporary housing in Santa Barbara, California.

 2.5 REIMBURSEMENT OF EXPENSES. The Company shall reimburse
Employee for authorized expenses incurred by Employee in the performance of his duties, provided that such expenses are reasonable in amount, incurred for the benefit of the Company, and are supported by itemized accountings and expense receipts
submitted to the Company prior to any reimbursement. 
 2.6 DIRECTOR AND OFFICER
LIABILITY INSURANCE. For a period of at least three (3) years following termination of Employee’s employment with the Company for any reason, the Company shall maintain in effect a policy of
director and officer liability insurance that covers acts and omissions by Employee during the period that Employee was an officer, director, or member of the Board of Directors of the Company. 
 3. BOARD POSITION. During the term of this Agreement, the Company shall exercise commercially reasonable
efforts to cause Employee to be nominated for election to the Company’s Board of Directors. 
 4. TERMINATION 
 4.1 DEFINITIONS. For purposes of this Agreement, the term: 
 (a) “CHANGE OF CONTROL” shall mean the occurrence of any of the following events:

 (i) the closing of a merger or consolidation of the Company with any other corporation, other than (A) a merger or
consolidation which would result in the voting securities of the 

  

 -3- 

 
Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the combined voting power of the voting securities of the Company (or such surviving entity) outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) acquires more than 25% of the combined voting power of the Company’s then outstanding securities; or 
 (ii) either (A) the stockholders of the Company approve a plan of complete liquidation of the Company or (B) there closes any sale or
disposition by the Company of all or substantially all of the Company’s assets. For purposes of this clause (iv), the term “the sale or disposition by the Company of all or substantially all of the Company’s assets” shall mean a
transaction or series of related transactions involving assets of the Company or of any direct or indirect subsidiary of the Company (including the stock of any direct or indirect subsidiary of the Company) in which the value of the assets or stock
being sold or otherwise disposed of (as measured by the purchase price being paid therefor or by such other method as the Board of Directors of the Company determines is appropriate in a case where there is no readily ascertainable purchase price)
constitutes more than two-thirds of the “fair market value of the Company” (as hereinafter defined). For purposes of the preceding sentence, the “fair market value of the Company” shall be the aggregate market value of the
Company’s outstanding common stock (on a fully diluted basis) plus the aggregate market value of the Company’s other outstanding equity securities. The aggregate market value of the Company’s equity securities shall be determined by
multiplying the number of shares of the Company’s common stock (on a fully diluted basis) outstanding on the date of the execution and delivery of a definitive agreement with respect to the transaction or series of related transactions (the
“Transaction Date”) by the average closing price of such security for the ten (10) trading days immediately preceding the Transaction Date, or if not publicly traded, by such other method as the Board of Directors of the
Company shall determine is appropriate. 
 (b) “DATE OF TERMINATION” shall mean
the date specified in the Notice of Termination (as defined below). 
 (c) “DISABILITY” OR
“DISABLED” shall mean that Employee either (i) is unable to engage in any substantial gainful activity due to physical or mental impairment which can be expected to result in death or to last for a continuous period
of twelve (12) months or more, or (ii) is, by reason of any medically determinable physical mental impairment which can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement
benefits for a period of not less than three months under an accident and health plan sponsored by the Company. Employee covenants and agrees to submit to a reasonable physical examination by such licensed medical doctor for the purpose of
evaluating whether Employee is Disabled. 
 (d) “GOOD REASON.” 
 (i) “GOOD REASON” shall mean and exist only if (A) there occurs either (x) a breach by the
Company of any of its obligations under this Agreement without Employee’s express written consent or (y) any of the circumstances listed in Section 4.1(d)(ii), below, (B) Employee delivers to the Company a Notice of
Termination that describes in reasonable detail the circumstances alleged to constitute Good Reason (including a citation to the specific subsection of this Section 4.1(d)(ii), below, that is alleged to be applicable thereto), and
specifies a Date of Termination that is more than ten (10) days after the date on which such Notice of Termination is delivered to the Company, and (C) the Company fails to eliminate in full the circumstances alleged in such Notice of
Termination to constitute Good Reason. 
  

 -4- 

 (ii) For purposes of the foregoing, Employee shall be entitled to resign for Good Reason in
accordance with Section 4.1(d)(i) upon the occurrence of any of the following circumstances: 
 (A) Either (i) a
material reduction in the duties and authority assigned to Employee immediately prior thereto, or an adverse alteration in the nature or status of Employee’s office, title, or responsibilities (including reporting responsibilities), or the
conditions of Employee’s employment from those in effect immediately prior thereto or (ii) a failure to appoint Employee as Chief Executive Officer; 
 (B) a failure by the Company to nominate Employee for election to the Company’s Board of Directors, provided that if Employee resigns from the Board of Directors, then from and after the date of
such resignation this Section 4.1(d)(ii)(B) shall be deemed to have been removed from this Agreement and Employee no longer shall have any rights under this Section 4.1(d)(ii)(B); 
 (C) a reduction in Employee’s Base Compensation below $300,000 per year; 
 (D) a reduction in Employee’s target annual bonus below 60% of his Base Compensation while Employee is Chief Executive Officer; 

(E) the failure by the Company to pay to Employee any portion of Employee’s current compensation within seven (7) days following the
date on which such compensation is due; 
 (F) either (i) the failure by the Company to continue in effect any compensation plan
in which Employee participates that is material to Employee’s total compensation, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or (ii) the failure by the
Company to continue Employee’s participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of Employee’s participation relative
to other participants; 
 (G) either (i) the failure by the Company to continue to provide Employee with benefits substantially
similar to those enjoyed by Employee under any of the Company’s life insurance, medical, health and accident, or disability plans in which Employee was participating at the time of this Agreement, or (ii) the taking of any action by the
Company which would directly or indirectly materially reduce any of such benefits or deprive Employee of any material fringe benefit enjoyed by Employee at the time of this Agreement, or (iii) the failure by the Company to provide Employee with
the number of paid vacation days to which Employee is entitled in accordance with this Agreement; 
 (H) the failure of the Company
to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated by Section 5.4 hereof; 
 (I) the Company’s requiring Employee to relocate anywhere other than the location of the Company’s principal executive offices, except for required travel on the Company’s business to an extent
substantially consistent with Employee’s historical business travel on behalf of the Company; 
 (J) the amendment, modification
or repeal of any provision of the Certificate of Incorporation, or the Bylaws of the Company which was in effect immediately prior to time of this Agreement, if such amendment, modification or repeal would materially adversely affect Employee’s
right to indemnification by the Company; or 
  

 -5- 

 (K) any purported termination of Employee’s employment by the Company that is not effected
pursuant to a Notice of Termination, which purported termination shall not be effective for purposes of this Agreement. 
 (e)
“MISCONDUCT” shall mean (i) the willful and repeated failure by Employee to substantially perform his duties with the Company (other than any such failure resulting from Employee’s incapacity due to physical or
mental illness or any such actual or anticipated failure after the issuance of a Notice of Termination by Employee for Good Reason), after a written demand for substantial performance is delivered to Employee by the Board, which demand specifically
identifies the manner in which the Board believes that Employee has not substantially performed his duties and provides fourteen (14) days for Employee to cure, or (ii) Employee’s willfully engaging in conduct which is demonstrably
and materially injurious to the Company, monetarily or otherwise. For purposes hereof, no act, or failure to act, on Employee’s part shall be deemed “willful” unless done, or omitted to be done, by Employee not in good faith and
without reasonable belief that Employee’s action or omission was in the best interest of the Company. 
 (f)
“NOTICE OF TERMINATION” shall mean a written notice which (A) if delivered by the Company in connection with the Company’s decision to terminate Employee’s employment with the
Company, sets forth in reasonable detail the reason for termination of Employee’s employment, or (B) if delivered by Employee in connection with a resignation for Good Reason, said notice must specify in reasonable detail the basis for
such resignation. 
 4.2 TERMINATION BY COMPANY. The Company may
terminate this Agreement as of the Date of Termination: 
 (a) FOR MISCONDUCT.
Notwithstanding the foregoing, Employee shall not be deemed to have been terminated for Misconduct unless and until there shall have been delivered to Employee a copy of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice to Employee and an opportunity for Employee, together with Employee’s counsel, to be heard before the
Board), finding that in the good faith opinion of the Board that Employee was guilty of conduct set forth above and specifying the particulars thereof in reasonable detail, provided, however, that if at such time Employee is a member of the
Board of Directors, he shall abstain from voting with respect to any matter relating to termination of his employment. Upon termination for Misconduct, the Company shall pay to Employee all accrued and unpaid compensation for the period ending on
the Date of Termination, and shall not be obligated to pay any additional amounts to Employee hereunder. 
 (b) OTHER
THAN MISCONDUCT OR DISABILITY. At any time other than either for Misconduct or by reason of Employee’s Disability. Employee’s employment is at
will and the Company may terminate this Agreement and Employee’s employment for any reason deemed sufficient by the Company upon delivery of a Notice of Termination (or as of such date as is specified therein). However, in the event that
Employee’s employment is terminated: 
 (i) PRIOR TO CHANGE OF
CONTROL. Prior to any Change of Control for any reason other than his Misconduct or Disability, then in addition to all accrued and unpaid wages due to Employee for periods ended on or prior to the effective
date of the termination: 
 (A) the Company shall pay to Employee an amount equal to twelve (12) months of Employee’s Base
Compensation and Target Bonus at the rate in effect as of the Date of Termination (any such amount to be payable in equal periodic installments at the time and in the amounts due under the Company’s regular payroll practices, as if Employee had
remained employed during the period of twelve (12) months following the Date of Termination); and 
  

 -6- 

 (B) the Company shall pay, for a period of twelve (12) months following the Date of
Termination (or until the Employee achieves coverage under another employer’s health insurance plan), the premiums for continuation of Employee healthcare benefits pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”) for so long as Employee is otherwise eligible, provided Employee makes a timely election for such COBRA coverage. 
 (ii) FOLLOWING CHANGE OF CONTROL. Within twenty-four (24) months following any Change of Control for any reason other than
his Misconduct or Disability, then in addition to all accrued and unpaid wages due to Employee for periods ended on or prior to the effective date of the termination: 
 (A) pay to Employee an amount equal to twenty-four (24) months of Employee’s Base Compensation and Target Bonus at the rate in effect as of the Date of Termination (any such amount to be payable in
equal periodic installments at the time and in the amounts due under the Company’s regular payroll practices, as if Employee had remained employed during the period of twenty-four (24) months following the Date of Termination); and

 (B) pay the COBRA premiums for continuation of Employee healthcare benefits for so long as Employee is otherwise eligible,
provided Employee makes a timely election for such COBRA coverage, for a period of eighteen (18) months following the Date of Termination (or until Employee achieves coverage under another employer’s health insurance plan). Employee’s
right to terminate employment pursuant to this Section 4.2(b) shall not be affected by Employee’s incapacity due to physical or mental illness. In addition, Employee’s continued employment following any event, act or omission,
regardless of the length of such continued employment, shall not constitute Employee’s consent to, or a waiver of Employee’s rights with respect to, such event, act or omission constituting Good Reason hereunder; and 
 (C) accelerate the vesting of all options then held by Employee. 
 (c) DISABILITY. By reason of Employee’s Disability. If the Company elects to terminate Employee’s employment hereunder by reason of Employee’s Disability,
then for the period equal to the shorter of twelve (12) months following the date of the termination or the period ending on the date on which Employee becomes eligible to receive disability income payments under any disability income plan
sponsored by the Company, the Company shall (i) pay to Employee an amount equal to Employee’s Base Compensation at the rate in effect as of the Date of Termination (any such amount to be payable in equal periodic installments at the time
and in the amounts due under the Company’s regular payroll practices, as if Employee had remained employed during the period over which such amount is payable hereunder), and (ii) pay the premiums for continuation of Employee healthcare
benefits pursuant to COBRA for such period, provided Employee makes a timely election for such COBRA coverage. 
 4.3
TERMINATION BY EMPLOYEE. Employee may resign from employment and terminate this Agreement at any time. If Employee terminates this Agreement: 
 (a) DISABILITY. By reason of Employee’s Disability, then in addition to all accrued and unpaid wages due
to Employee for periods ended on or prior to the Termination Date, the Company thereafter shall (i) continue paying to Employee his Base Compensation at the rate in effect as of the Date of Termination for a period ending on the earlier of
(x) twelve (12) months following the date of the termination or (y) the period ending on the date on which Employee becomes eligible to receive disability income payments under 

  

 -7- 

 
any disability income plan sponsored by the Company (any such amount to be payable in equal periodic installments at the time and in the amounts due under
the Company’s regular payroll practices, as if Employee had remained employed during such period), provided, however, that the Company shall have the right, in its sole discretion, to accelerate any such payment); and (ii) pay the
COBRA premiums for continuation of Employee healthcare benefits for so long as Employee is otherwise eligible, provided Employee makes a timely election for such COBRA coverage, for a period of twelve (12) months following the Date of
Termination. Employee’s right to terminate employment pursuant to this Section 5.3(a) shall not be affected by Employee’s incapacity due to physical or mental illness. In addition, Employee’s continued employment following
any event, act or omission, regardless of the length of such continued employment, shall not constitute Employee’s consent to, or a waiver of Employee’s rights with respect to, such event, act or omission constituting a Good Reason
circumstance hereunder. 
 (b) GOOD REASON. For Good Reason. If Employee resigns for Good Reason:

 (i) NON-CHANGE OF CONTROL. Prior to any Change of
Control, then in addition to all accrued and unpaid wages due to Employee for periods ended on or prior to the Termination Date: 
 (A) the Company shall pay to Employee an amount equal to twelve (12) months of Employee’s Base Compensation and Target Bonus at the rate in effect as of the Date of Termination (any such amount to be payable in equal
periodic installments at the time and in the amounts due under the Company’s regular payroll practices, as if Employee had remained employed during the period of twelve (12) months following the Date of Termination); and 
 (B) the Company shall pay, for a period of twelve (12) months following the Date of Termination (or until the Employee achieves coverage
under another employer’s health insurance plan), the premiums for continuation of Employee healthcare benefits pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) for so long as Employee
is otherwise eligible, provided Employee makes a timely election for such COBRA coverage. 
 (ii) CHANGE
OF CONTROL. Within twenty-four (24) months following a Change of Control of the Company, then in addition to all accrued and unpaid wages due to Employee for periods ended on or prior to
the Termination Date, the Company thereafter shall: 
 (A) pay to Employee an amount equal to twenty-four (24) months of
Employee’s Base Compensation and Target Bonus at the rate in effect as of the Date of Termination (any such amount to be payable in equal periodic installments at the time and in the amounts due under the Company’s regular payroll
practices, as if Employee had remained employed during the period of twenty-four (24) months following the Date of Termination); and 
 (B) pay the COBRA premiums for continuation of Employee healthcare benefits for so long as Employee is otherwise eligible, provided Employee makes a timely election for such COBRA coverage, for a period of eighteen (18) months
following the Date of Termination (or until Employee achieves coverage under another employer’s health insurance plan). Employee’s right to terminate employment pursuant to this Section 4.3(b)(ii) shall not be affected by
Employee’s incapacity due to physical or mental illness. In addition, Employee’s continued employment following any event, act or omission, regardless of the length of such continued employment, shall not constitute Employee’s consent
to, or a waiver of Employee’s rights with respect to, such event, act or omission constituting Good Reason hereunder; and 
 (C)
accelerate the vesting of all options then held by Employee. 
  

 -8- 

 (c) OTHER. Other than by reason of Employee’s
Disability, Good Reason (whether before or after a Change of Control of the Company), then the Company shall pay to Employee all accrued and unpaid wages due to Employee for periods ended on or prior to the effective date of the termination, and the
Company shall not be obligated to make any further payments to Employee hereunder. 
 4.4 CONDITIONAL NATURE
OF SEVERANCE PAYMENTS. Notwithstanding any other provision of this Section 4 or any other provision of this Agreement to the contrary: 
 (a) NONCOMPETE. Employee acknowledges that the nature of the Company’s business is such that if Employee
were to become employed by, or substantially involved in, the business of a competitor of the Company during the six (6) months following the termination of Employee’s employment with the Company following a Change of Control, then it
would be very difficult for Employee not to rely on or use the Company’s trade secrets and confidential information in connection with that employment. Thus, to avoid the inevitable disclosure of the Company’s trade secrets and
confidential information, Employee acknowledges and agrees that his right to receive the severance consideration described in Sections 4.2 and 4.3, above (to the extent Employee is otherwise entitled to such payments thereunder)
shall be conditioned upon Employee not directly or indirectly engaging in (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate officer, director or otherwise), or having any ownership interest in or
participating in the financing, operation, management or control of, any person, firm, corporation or business that directly competes with Company or is a customer of the Company. If Employee engages, invests, or otherwise participates in any
competitive activity described in this Section 4.4(a), then all severance payments consideration to which Employee otherwise may be entitled under Section 4.2 and 4.3 above, as applicable, thereupon shall cease.

 (b) NON-SOLICITATION. Until the date one (1) year after the termination of
Employee’s employment with the Company for any reason, Employee agrees and acknowledges that Employee’s right to receive the severance consideration described in Sections 4.2 and 4.3 (to the extent Employee is otherwise
entitled to such payments thereunder) shall be conditioned upon Employee not either directly or indirectly soliciting, attempting to hire, recruiting, encouraging, taking away, hiring any employee of the Company or inducing or otherwise causing an
employee to leave his or her employment with the Company (regardless whether to commence employment with Employee or with any other entity or person). If Employee engages in any such activity, then all severance consideration to which Employee
otherwise would be entitled under Section 4.2 or 4.3, above, as applicable, thereupon shall cease. 
 (c)
GENERAL RELEASE. Employee shall not be entitled to receive any of the severance consideration described in Sections 4.2 and 4.3 above, unless prior to receiving the same Employee
executes a commercially reasonable general release of claims (including a release of all rights under Section 1542 of the California Civil Code) against the Company and its directors, officers, employees, stockholders, and other agents and
their respective insurers, successors, and assigns, of all claims arising from or in any way relating to Employee’s employment by the Company or the termination of that employment, provided that such release shall not extend to (i) any
claims for benefits under any qualified retirement plan maintained by the Company, (ii) any claims for governmental unemployment benefits, or (iii) Employee’s right to receive indemnification from the Company under applicable
provisions of California law or the certificate of incorporation or bylaws of the Company. 
 (d) RESIGNATION
FROM BOARD. Employee shall not be entitled to receive any of the severance consideration described in Sections 4.2 and 4.3 above, unless Employee resigns from the Board of
Directors in accordance with Section 4.8, below. If the Company requests such resignation until after payment of severance consideration has commenced hereunder, then the Company shall be excused from any further obligation to pay such
severance consideration if Employee thereafter fails to resign from the Board of Directors in accordance with such Section 4.8. 
  

 -9- 

 4.5 DEATH. This Agreement shall terminate automatically upon the
death of Employee. If Employee’s employment is terminated by reason of Employee’s death, then the Company shall pay to Employee’s beneficiaries or legal representatives (i) within 15 days, all accrued and unpaid Base Compensation
and vacation pay for all periods ended on or before the date of Employee’s death, and (ii) the Company shall not be obligated to make any further payments hereunder. 
 4.6 MITIGATION. Employee shall not be required to mitigate the amount of any payment provided for in this
Section 4 by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Agreement be reduced by any compensation earned by Employee as a result of employment by another employer, self
employment earnings, by retirement benefits, by offset against any amount claimed to be owing by Employee to the Company, or otherwise. No amounts payable to Employee under any plan or program of the Company shall reduce or offset any amounts
payable to Employee under this Agreement. 
 4.7 DEFERRAL IN COMMENCEMENT PER
IRC §409A. Notwithstanding the foregoing provisions of this Section 4, to the extent required to avoid the imposition of any excise or penalty tax pursuant to or other violation of the rules of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), the commencement of payment of any severance consideration pursuant to this Section 4 following the date as of which Employee’s employment with the Company is
terminated for any reason (such date, the “termination date”) shall be delayed for six (6) months following such termination date. 
 4.8 RESIGNATION FROM BOARD FOLLOWING TERMINATION. Employee covenants and agrees that (a) at any time following the
termination of Employee’s employment with the Company for any reason, the Company may request that Employee resign from the Board of Directors and (b) Employee shall tender to the Company, within two (2) business days following any
such request, an immediately effective written resignation from the Company’s Board of Directors. 
 5. MISCELLANEOUS 

5.1 NOTICES. All notices permitted or required by this
Agreement shall be in writing, and shall be deemed to have been delivered and received (i) when personally delivered, or (ii) on the third (3rd) business day after the date on which deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested, or (iii) on the date on which transmitted by facsimile or other electronic means
generating a receipt confirming a successful transmission (provided that on that same date a copy of such notice is deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested), or (iv) on
the next business day after the date on which deposited with a regulated public carrier (e.g., Federal Express) designating overnight delivery service with a return receipt requested or equivalent thereof administered by such regulated
public carrier, freight prepaid, and addressed in a sealed envelope to the party for whom intended at the address or facsimile number appearing on the signature page of this Agreement, or such other address or facsimile number, notice of which is
given in a manner permitted by this Section 5.1. 
 5.2 EFFECT ON OTHER
REMEDIES. Nothing in this Agreement is intended to preclude, and no provision of this Agreement shall be construed to preclude, the exercise of any other right or remedy which the Company may have by reason of
Employee’s breach of his obligations under this Agreement. 
 5.3 ARBITRATION. Except for a dispute
in which any party is seeking the exercise of the equitable powers of a court, if any dispute arises under this Agreement and is not resolved within fifteen (15)

  

 -10- 

 
days after one party delivers to each other party a written notice invoking the arbitration provisions of this Section 5.3, then such dispute
shall be resolved by arbitration in Santa Barbara, California, before a single arbitrator under the rules then obtaining of the American Arbitration Association. This agreement to arbitrate shall be specifically enforceable. The decision of the
arbitrator shall be final and binding on the parties to the dispute. 
 5.4 BINDING ON
SUCCESSORS; ASSIGNMENT. This Agreement shall be binding upon, and inure to the benefit of, each of the parties hereto, as well as their respective heirs, successors, assigns, and personal
representatives. 
 5.5 GOVERNING LAW, JURISDICTION, AND
VENUE. This Agreement shall be construed in accordance with and shall be governed by the laws of the State of California, without regard to conflict of law principles. Each party consents to the jurisdiction of the
courts of the State of California for the purposes of construing or enforcing this Agreement. Subject to the arbitration provisions of Section 5.3, above, the parties agree that the exclusive venues for all such disputes shall be the
Superior Court in and for the County of Santa Barbara, California, sitting in the City of Santa Barbara, California, and hereby waive all arguments and claims that such forum is inconvenient or otherwise inappropriate. 
 5.6 SEVERABILITY. If any of the provisions of this Agreement shall otherwise contravene or be invalid under the laws
of any state, country or other jurisdiction where this Agreement is applicable but for such contravention or invalidity, such contravention or invalidity shall not invalidate all of the provisions of this Agreement but rather it shall be construed,
insofar as the laws of that state or other jurisdiction are concerned, as not containing the provision or provisions contravening or invalid under the laws of that state or jurisdiction, and the rights and obligations created hereby shall be
construed and enforced accordingly. 
 5.7 COUNTERPARTS. This Agreement may be executed in counterparts,
each of which shall be deemed an original and all of which, taken together, shall be one and the same instrument, binding on all the signatories. 
 5.8 FURTHER ASSURANCES. Each party agrees, upon the request of another party, to make, execute, and deliver, and to take such additional steps as may be necessary to effectuate the
purposes of this Agreement. 
 5.9 ENTIRE AGREEMENT; AMENDMENT. This
Agreement (a) represents the entire understanding of the parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous understandings, whether written or oral, regarding the subject matter hereof, except the
Nondisclosure and Assignment of Inventions Agreement by and between Employee and the Company, and (b) may not be modified or amended, except by a written instrument, executed by the party against whom enforcement of such amendment may be
sought. 
 [Signatures appear on the following page.] 
  

 -11- 

 IN WITNESS WHEREOF, the parties hereto have executed
this Agreement, effective as of the date set forth above. 
  

							
	“COMPANY:”	 		 	“EMPLOYEE:”
			
	CALLWAVE, INC., a Delaware corporation	 		 	
				
	By	 	 /s/ Mark Stubbs
	 		 	 /s/ Jeffrey M. Cavins

		 	Mark Stubbs, Chief Financial Officer	 		 	Jeffrey M. Cavins
			
	  
	 		 	  

		 	Date	 		 	Date
			
	Address, Facsimile No. and Email for Notices	 		 	Address, Facsimile No. and Email for Notices:
			
	136 West Canon Perdido Street	 		 	410 NE 70th Street
	Santa Barbara, California 93101	 		 	Seattle, Washington 98115
			
	Facsimile No.: (805) 690-4204	 		 	Facsimile No.: (            )
                            

 EXHIBIT A 
 STOCK OPTION AGREEMENT 
 CALLWAVE, INC. 
 STOCK OPTION
AGREEMENT 
 (2004 Stock Incentive Plan) 
 THIS STOCK OPTION AGREEMENT (the “Agreement”) confirms
that CALLWAVE, INC., a Delaware corporation (the “Company”), has granted to the employee identified below (“Holder”) a stock option (the “Option”)
to purchase the number of shares of the Common Stock of the Company set forth below. The Option is granted on the terms and conditions set forth below and in the 2004 Stock Incentive Plan sponsored by the Company, as amended from time to time (as so
amended, the “Plan”), the terms of which are incorporated herein. This Option Agreement is being delivered in connection with that certain Employment Agreement dated September 5, 2007, by and between the Company and Holder (the
“Employment Agreement”). All capitalized terms that appear in this Agreement and are not defined herein shall have the meaning ascribed thereto in the Employment Agreement (or, if such Employment Agreement is hereafter superseded by
an other written employment agreement, then in such successor employment agreement). 
 1. NAME OF
HOLDER: Jeffrey M. Cavins. 
 2. DATE OF GRANT:
September 5, 2007 (the “Date of Grant”). 
 3. NUMBER OF SHARES:
Five Hundred Thousand (500,000) shares of Company Common Stock (the “Option Shares”). 
 4. EXERCISE
PRICE.              Dollars ($            ) per share. 
 5. TYPE OF OPTION. For income tax purposes, the Option shall be treated as the following type of
option: 
 x Incentive Option 
  ̈ Nonqualified Stock Option 
 To the extent that this Option may not be eligible for treatment as an Incentive Option by reason of the rules of Internal Revenue Code Section 422, this Option shall be treated as a Nonqualified Stock Option.

 6. TERM OF OPTION. The term of the Option will begin as of the Date of Grant set forth
above and, unless sooner terminated in accordance with the terms of the Plan, will expire at the end of the period specified below. 
 x Five (5) years from date of grant 
  ̈ Ten (10) years from date of grant 
 7.
EXPIRATION. The Option is subject to termination prior to the expiration of the term of the Option set forth above in the event of the termination of Holder’s employment with the Company or any of its
subsidiaries or the occurrence of certain other events specified in the Plan. 
 8. EXERCISE. 
 8.1 INITIAL EXERCISE. Except as otherwise specifically provided in the Plan, the Option may not be
exercised in whole or in part prior to the expiration of six months after the Date of Grant of the Option. 
  

 13 

 8.2 EXERCISE FOLLOWING CERTAIN
EVENTS. Subject to Section 8.1, above, this Option shall become exercisable from time to time to the extent that Holder has become vested in this Option pursuant to Section 9, below. 
 9. VESTING. 
 9.1
VESTING COMMENCEMENT DATE: September 5, 2007. 
 9.2 VESTING SCHEDULE. Subject to Holder’s continuous employment with the Company or its subsidiaries, Holder shall become vested in this Option (and this Option
shall become exercisable by Holder), subject to acceleration in vesting pursuant to Section 9.3, below, as follows: Holder shall vest in (a) 12.5% of the Option Shares after six (6) months of continuous employment with the
Company or one of its subsidiaries from and after the Vesting Commencement Date, and (b) an additional one forty-second (1/42nd) of the remaining
Option Shares after each subsequent month of continuous employment. 
 9.3 ACCELERATION IN
VESTING. Notwithstanding the vesting schedule set forth in Section 9.2, above, Holder shall become fully vested in this Option if either: 
 (a) The Company terminates Holder’s employment with the Company other than for Misconduct; 
 (b) Holder resigns from employment with the Company for Good Reason; or 
 (c) The Company is a party to a Change of Control transaction and the acquirer in such transaction fails to assume this option. 
 10. RESTRICTION ON TRANSFER OF OPTION. Except as otherwise expressly
permitted in the Plan, Holder may not transfer all or any portion of Holder’s interest in the Option other than by will or the laws of descent and distribution. 
 11. ACKNOWLEDGEMENT BY HOLDER. Holder acknowledges that Holder has received and reviewed a copy of the Plan, and the Option is subject to the terms
and conditions of the Plan. 
 12. TERMS OF AGREEMENT. Wherever the form of this Agreement
provides for the insertion of additional information (such as the designation of the type of Option in Section 5 above or the term of the Option in Section 6 above), (a) such additional information may be inserted in
hand-written form, (b) such information shall be deemed to be part of this Agreement for all purposes, and (c) Holder, by reason of executing this Agreement, shall be deemed to have accepted such additional information. 
 [Signatures appear on the following page.] 
  

 14 

 IN WITNESS WHEREOF, the undersigned
have executed this Agreement, effective as of the Date of Grant specified above. 
  

							
	“COMPANY:”	 		 	“HOLDER:”
			
	CALLWAVE, INC., a Delaware corporation	 		 	
				
	By	 	  
	 		 	  

		 	Name & title:	 		 	Jeffrey M. Cavins
			
	Address and Facsimile No. of Company:	 		 	Address, Facsimile No. and Email for Notices:
			
	CallWave, Inc.	 		 	410 NE 70th Street
	ATTN: Chief Financial Officer	 		 	Seattle, Washington 98115
	136 W. Canon Perdido Street, Suite A	 		 	
	Santa Barbara, California 93101	 		 	Facsimile No.: (            )
                            
			
	Facsimile No.: (805) 690-4266	 		 	

  

 15

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