Document:

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Exhibit 4.1

THE AMENDED AND RESTATED 1998 EQUITY PARTICIPATION PLAN

OF

NEXTERA ENTERPRISES, INC.

(as amended effective June 6, 2006)

          Nextera Enterprises, Inc., a Delaware corporation, has adopted The Amended and Restated 1998
Equity Participation Plan of Nextera Enterprises, Inc. (the
“Plan”), effective June 6, 2006, which amends The Amended and Restated
1998 Equity Participation Plan of Nextera Enterprises, Inc.,
effective April 23, 2002, which amended The Amended and Restated 1998
Equity Participation Plan of Nextera Enterprises, Inc., effective May
30, 2001, which amended The Amended and Restated 1998 Equity
Participation Plan of Nextera Enterprises, Inc., effective October
20, 2000, which amended The Amended and Restated 1998 Equity Participation Plan of Nextera Enterprises,
Inc., which was adopted effective April 29, 2000, which amends and restates The 1998 Equity
Participation Plan of Nextera Enterprises, Inc., which was adopted effective December 30, 1998, for
the benefit of its eligible employees, consultants and directors.

          The purposes of the Plan are as follows:

          (1) To provide an additional incentive for directors, key Employees and Consultants (as such
terms are defined below) to further the growth, development and financial success of the Company by
personally benefiting through the ownership of Company stock and/or rights which recognize such
growth, development and financial success.

          (2) To enable the Company to obtain and retain the services of directors, key Employees and
Consultants considered essential to the long range success of the Company by offering them an
opportunity to own stock in the Company and/or rights which will reflect the growth, development
and financial success of the Company.

ARTICLE I.

DEFINITIONS

          1.1. General. Wherever the following terms are used in the Plan they shall have the
meanings specified below, unless the context clearly indicates otherwise.

          1.2. Administrator. “Administrator” shall mean the entity that conducts the general
administration of the Plan as provided herein. With reference to the administration of the Plan
with respect to Options granted to Independent Directors, the term “Administrator” shall refer to
the Board. With reference to the administration of the Plan with respect to any other Award, the
term “Administrator” shall refer to the Committee (or a delegate of the Committee under Section
10.5) unless the Board has assumed the authority for administration of the Plan generally as
provided in Section 10.1.

          1.3. Award. “Award” shall mean an Option, a Restricted Stock award, a Performance
Award, a Dividend Equivalents award, a Deferred Stock award, a Stock Payment award or a Stock
Appreciation Right which may be awarded or granted under the Plan (collectively, “Awards”).

 

 

          1.4. Award Agreement. “Award Agreement” shall mean a written agreement executed by an
authorized officer of the Company and the Holder which shall contain such terms and conditions with
respect to an Award as the Administrator shall determine, consistent with the Plan.

          1.5. Award Limit. “Award Limit” shall mean 3,000,000 shares of Class A Common Stock,
as adjusted pursuant to Section 11.3 of the Plan.

          1.6. Board. “Board” shall mean the Board of Directors of the Company.

          1.7. Change in Control. “Change in Control” shall mean a change in ownership or
control of the Company effected through any of the following transactions:

          (a) any person or related group of persons (other than the Company or a person that,
prior to such transaction, directly or indirectly controls, is controlled by, or is under
common control with, the Company) directly or indirectly acquires beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities pursuant to a tender or exchange offer made directly to the Company’s
stockholders which the Board does not recommend such stockholders to accept;

          (b) there is a change in the composition of the Board over a period of thirty-six (36)
consecutive months (or less) such that a majority of the Board members (rounded up to the
nearest whole number) ceases, by reason of one or more proxy contests for the election of
Board members, to be comprised of individuals who either (i) have been Board members
continuously since the beginning of such period or (ii) have been elected or nominated for
election as Board members during such period by at least a majority of the Board members
described in clause (i) who were still in office at the time such election or nomination was
approved by the Board;

           (c) the consummation of a merger or consolidation of the Company with any other
corporation (or other entity), other than a merger or consolidation which would result in
the voting securities of the 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 66-2/3% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger
or consolidation; provided, however, that a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person
acquires more than 25% of the combined voting power of the Company’s then outstanding
securities shall not constitute a Change in Control; or

           (d) the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially
all of the Company’s assets.

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          1.8. Code. “Code” shall mean the Internal Revenue Code of 1986, as amended.

          1.9. Committee. “Committee” shall mean the Compensation Committee of the Board, or
another committee or subcommittee of the Board, appointed as provided in Section 10.1.

          1.10. Class A Common Stock. “Class A Common Stock” shall mean the Class A Common
Stock of the Company, par value $0.001 per share, and any equity security of the Company issued or
authorized to be issued in the future, but excluding any preferred stock and any warrants, options
or other rights to purchase Class A Common Stock.

          1.11. Common Stock. “Common Stock” shall mean the Class A Common Stock of the
Company, par value $0.001 per share, and the Class B Common Stock of the Company, par value $0.001
per share, and any equity security of the Company issued or authorized to be issued in the future,
but excluding any preferred stock and any warrants, options or other rights to purchase Common
Stock.

          1.12. Company. “Company” shall mean Nextera Enterprises, Inc., a Delaware
corporation.

          1.13. Consultant. “Consultant” shall mean any consultant or adviser if:

           (a) the consultant or adviser renders bona fide services to the Company;

           (b) the services rendered by the consultant or adviser are not in connection with the
offer or sale of securities in a capital-raising transaction and do not directly or
indirectly promote or maintain a market for the Company’s securities; and

           (c) the consultant or adviser is a natural person who has contracted directly with the
Company to render such services.

          1.14. Deferred Stock. “Deferred Stock” shall mean Class A Common Stock awarded under
Article VIII of the Plan.

          1.15. Director. “Director” shall mean a member of the Board.

          1.16. Dividend Equivalent. “Dividend Equivalent” shall mean a right to receive the
equivalent value (in cash or Class A Common Stock) of dividends paid on Class A Common Stock,
awarded under Article VIII of the Plan.

          1.17. Disability. “Disability” shall mean, with respect to any Holder, (i) the suffering
of any mental or physical illness, disability or incapacity that shall in all material aspects
preclude such Holder from performing his or her employment or consultant duties, or (ii) the
absence of such Holder from his or her employment or consultant duties by reason of any

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mental or
physical illness, disability or incapacity for a period of ninety (90) days during any one hundred
twenty (120) day period; provided, however, in either case, that such illness, disability or
incapacity shall be reasonably determined to be of a permanent nature by a licensed, board
certified physician.

          1.18. DRO. “DRO” shall mean a domestic relations order as defined by the Code or
Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder.

          1.19. Employee. “Employee” shall mean any officer or other employee (as defined in
accordance with Section 3401(c) of the Code) of the Company, or of any corporation which is a
Subsidiary.

          1.20. Exchange Act. “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended.

          1.21. Fair Market Value. “Fair Market Value” of a share of Class A Common Stock as of
a given date shall be (a) the average closing price of a share of Class A Common Stock on the
principal exchange on which shares of Class A Common Stock are then trading, if any (or as reported
on any composite index which includes such principal exchange), on the ten most current trading
days immediately prior to such date, or (b) if Class A Common Stock is not traded on an exchange
but is quoted on NASDAQ or a successor quotation system, the average mean between the closing
representative bid and asked prices for the Class A Common Stock on the ten (10) most recent
trading days immediately prior to such date as reported by NASDAQ or such successor quotation
system; or (c) if Class A Common Stock is not publicly traded on an exchange and not quoted on
NASDAQ or a successor quotation system, the Fair Market Value of a share of Class A Common Stock as
established by the Administrator acting in good faith. The Administrator shall determine the Fair
Market Value at least once each calendar quarter and such determination shall apply until the
Administrator has made another determination of Fair Market Value.

          1.22. Holder. “Holder” shall mean a person who has been granted or awarded an Award.

          1.23. Incentive Stock Option. “Incentive Stock Option” shall mean an option which
conforms to the applicable provisions of Section 422 of the Code and which is designated as an
Incentive Stock Option by the Administrator.

          1.24. Independent Director. “Independent Director” shall mean a member of the Board
who is not an Employee of the Company.

          1.25. Non-Qualified Stock Option. “Non-Qualified Stock Option” shall mean an Option
which is not designated as an Incentive Stock Option by the Administrator.

          1.26. Option. “Option” shall mean a stock option granted under Article IV of the
Plan. An Option granted under the Plan shall, as determined by the Administrator, be either a

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Non-Qualified Stock Option or an Incentive Stock Option; provided, however, that
Options granted to Independent Directors and Consultants shall be Non-Qualified Stock Options.

          1.27. Performance Award. “Performance Award” shall mean a cash bonus, stock bonus or
other performance or incentive award that is paid in cash, Class A Common Stock or a combination of
both, awarded under Article VIII of the Plan.

          1.28. Performance Criteria. “Performance Criteria” shall mean the following business
criteria with respect to the Company, any Subsidiary or any division or operating unit: (a) net
income, (b) pre-tax income, (c) operating income, (d) cash flow, (e) earnings per share, (f) return
on equity, (g) return on invested capital or assets, (h) cost reductions or savings, (i) funds from
operations, (j) appreciation in the fair market value of Class A Common Stock and (k) earnings
before any one or more of the following items: interest, taxes, depreciation or amortization.

          1.29.
Plan. “Plan” shall mean The Amended and Restated 1998 Equity Participation Plan of Nextera
Enterprises, Inc.

          1.30. Restricted Stock. “Restricted Stock” shall mean Class A Common Stock awarded
under Article VII of the Plan.

          1.31. Rule 16b-3. “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange
Act, as such Rule may be amended from time to time.

          1.32. Section 162(m) Participant. “Section 162(m) Participant” shall mean any key
Employee designated by the Administrator as a key Employee whose compensation for the fiscal year
in which the key Employee is so designated or a future fiscal year may be subject to the limit on
deductible compensation imposed by Section 162(m) of the Code.

          1.33. Securities Act. “Securities Act” shall mean the Securities Act of 1933, as
amended.

          1.34. Stock Appreciation Right. “Stock Appreciation Right” shall mean a stock
appreciation right granted under Article IX of the Plan.

          1.35. Stock Payment. “Stock Payment” shall mean (a) a payment in the form of shares
of Class A Common Stock, or (b) an option or other right to purchase shares of Class A Common
Stock, as part of a deferred compensation arrangement, made in lieu of all or any portion of the
compensation, including without limitation, salary, bonuses and commissions, that would otherwise
become payable to a key Employee or Consultant in cash, awarded under Article VIII of the Plan.

          1.36. Subsidiary. “Subsidiary” shall mean (a) any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than the last corporation
in the unbroken chain then owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain, (b) any

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partnership in which
the Company is a general partner, (c) any limited liability company in which the Company is a
managing member, or (d) any
partnership or limited liability company in which the Company possesses
a 50% or greater interest in the total capital or total income of such partnership.

          1.37. Substitute Award. “Substitute Award” shall mean an Option granted under this
Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted
by a company or other entity in connection with a corporate transaction, such as a merger,
combination, consolidation or acquisition of property or stock; provided, however,
that in no event shall the term “Substitute Award” be construed to refer to an award made in
connection with the cancellation and repricing of an Option.

          1.38. Termination for Cause. “Termination for Cause” shall mean the time when the
employee-employer or Consultant-employer relationship between a Holder and the Company or any
Subsidiary is terminated for cause, as termination for cause is defined in the Holder’s employment
or consultancy agreement; provided however, that if termination for cause is not therein defined,
the following shall constitute “Cause” for the termination of the Holder’s employee-employer or
Consultant-client relationship:

           (a) material dishonest statements or acts of the Holder with respect to the Company or
any affiliate of the Company;

          (b) indictment of the Holder for (i) a felony or (ii) any misdemeanor involving moral
turpitude, deceit, dishonesty or fraud (“indictment,” for these purposes, meaning an
indictment, probable cause hearing or any other procedure pursuant to which an initial
determination of probable or reasonable cause with respect to such offense is made);

          (c) willful misconduct by the Holder after three (3) days written notice and an
opportunity to cure;

          (d) gross negligence, or willful failure or refusal of the Holder to comply with
explicit directions of the Board after fifteen (15) days written notice and an opportunity
to cure.

          In making any determination under this Section 1.38 the Board shall act fairly and in good
faith and shall give the Holder an opportunity to appear and be heard at a meeting of the Board or
any committee thereof and present evidence on his behalf.

          1.39. Termination of Consultancy. “Termination of Consultancy” shall mean the time
when the engagement of a Holder as a Consultant to the Company or a Subsidiary is terminated for
any reason, with or without cause, including, but not by way of limitation, by resignation,
discharge, death or retirement; but excluding terminations where there is a simultaneous
commencement of employment with the Company or any Subsidiary. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions

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relating to Termination of
Consultancy, including, but not by way of limitation, the question of whether a Termination of
Consultancy
resulted from a discharge for good cause, and all questions of whether a particular leave of
absence constitutes a Termination of Consultancy. Notwithstanding any other provision of the Plan,
the Company or any Subsidiary has an absolute and unrestricted right to terminate a Consultant’s
service at any time for any reason whatsoever, with or without cause, except to the extent
expressly provided otherwise in writing.

          1.40. Termination of Directorship. “Termination of Directorship” shall mean the time
when a Holder who is an Independent Director ceases to be a Director for any reason, including, but
not by way of limitation, a termination by resignation, failure to be elected, death or retirement.
The Board, in its sole and absolute discretion, shall determine the effect of all matters and
questions relating to Termination of Directorship with respect to Independent Directors.

          1.41. Termination of Employment. “Termination of Employment” shall mean the time when
the employee-employer relationship between a Holder and the Company or any Subsidiary is terminated
for any reason, with or without cause, including, but not by way of limitation, a termination by
resignation, discharge, death, Disability or retirement; but excluding (a) terminations where there
is a simultaneous reemployment or continuing employment of a Holder by the Company or any
Subsidiary, (b) at the discretion of the Administrator, terminations which result in a temporary
severance of the employee-employer relationship, and (c) at the discretion of the Administrator,
terminations which are followed by the simultaneous establishment of a consulting relationship by
the Company or a Subsidiary with the former employee. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions relating to Termination of
Employment, including, but not by way of limitation, the question of whether a Termination of
Employment resulted from a discharge for good cause, and all questions of whether a particular
leave of absence constitutes a Termination of Employment; provided, however, that,
with respect to Incentive Stock Options, unless otherwise determined by the Administrator in its
discretion, a leave of absence, change in status from an employee to an independent contractor or
other change in the employee-employer relationship shall constitute a Termination of Employment if,
and to the extent that, such leave of absence, change in status or other change interrupts
employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations
and revenue rulings under said Section.

ARTICLE II.

SHARES SUBJECT TO PLAN

          2.1. Shares Subject to Plan.

           (a) The shares of stock subject to Awards shall be Class A Common Stock, initially shares of the Company’s Class A Common Stock, par value $0.001 per share. The aggregate
number of such shares which may be issued upon exercise of such Options or rights or upon
any such awards under the Plan shall not exceed Twelve Million (12,000,000). The shares
of Class A Common Stock issuable upon exercise of

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such Options or rights or upon any such awards may be either previously authorized but
unissued shares or treasury shares.

           (b) The maximum number of shares which may be subject to Awards, granted under the Plan
to any individual in any calendar year shall not exceed the Award Limit. To the
extent required by Section 162(m) of the Code, shares subject to Options which are canceled
continue to be counted against the Award Limit.

          2.2. Add-back of Options and Other Rights. If any Option, or other right to acquire
shares of Class A Common Stock under any other Award under the Plan, expires or is canceled without
having been fully exercised, or is exercised in whole or in part for cash as permitted by the Plan,
the number of shares subject to such Option or other right but as to which such Option or other
right was not exercised prior to its expiration, cancellation or exercise may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1. Furthermore, any shares
subject to Awards which are adjusted pursuant to Section 11.3 and become exercisable with respect
to shares of stock of another corporation shall be considered canceled and may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1. Shares of Class A Common
Stock which are delivered by the Holder or withheld by the Company upon the exercise of any Award
under the Plan, in payment of the exercise price thereof or tax withholding thereon, may again be
optioned, granted or awarded hereunder, subject to the limitations of Section 2.1. If any shares
of Restricted Stock are surrendered by the Holder or repurchased by the Company pursuant to Section
7.4 or 7.5 hereof, such shares may again be optioned, granted or awarded hereunder, subject to the
limitations of Section 2.1. Notwithstanding the provisions of this Section 2.2, no shares of Class
A Common Stock may again be optioned, granted or awarded if such action would cause an Incentive
Stock Option to fail to qualify as an incentive stock option under Section 422 of the Code.

ARTICLE III.

GRANTING OF AWARDS

          3.1. Award Agreement. Each Award shall be evidenced by an Award Agreement. Award
Agreements evidencing Awards intended to qualify as performance-based compensation as described in
Section 162(m)(4)(C) of the Code shall contain such terms and conditions as may be necessary to
meet the applicable provisions of Section 162(m) of the Code. Award Agreements evidencing
Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 422 of the Code.

          3.2. Provisions Applicable to Section 162(m) Participants.

           (a) The Committee, in its discretion, may determine whether an Award is to qualify as
performance-based compensation as described in Section 162(m)(4)(C) of the Code.

           (b) Notwithstanding anything in the Plan to the contrary, the Committee may grant any
Award to a Section 162(m) Participant, including Restricted

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Stock the restrictions with
respect to which lapse upon the attainment of performance goals which are related to one or
more of the Performance Criteria and any performance or incentive award described in Article
VIII that vests or becomes exercisable or payable upon the attainment of performance goals
which are related to one or more of the Performance Criteria.

          (c) To the extent necessary to comply with the performance-based compensation
requirements of Section 162(m)(4)(C) of the Code, with respect to any Award granted under
Articles VII and VIII which may be granted to one or more Section 162(m) Participants, no
later than ninety (90) days following the commencement of any fiscal year in question or any
other designated fiscal period or period of service (or such other time as may be required
or permitted by Section 162(m) of the Code), the Committee shall, in writing, (i) designate
one or more Section 162(m) Participants, (ii) select the Performance Criteria applicable to
the fiscal year or other designated fiscal period or period of service, (iii) establish the
various performance targets, in terms of an objective formula or standard, and amounts of
such Awards, as applicable, which may be earned for such fiscal year or other designated
fiscal period or period of service and (iv) specify the relationship between Performance
Criteria and the performance targets and the amounts of such Awards, as applicable, to be
earned by each Section 162(m) Participant for such fiscal year or other designated fiscal
period or period of service. Following the completion of each fiscal year or other
designated fiscal period or period of service, the Committee shall certify in writing
whether the applicable performance targets have been achieved for such fiscal year or other
designated fiscal period or period of service. In determining the amount earned by a
Section 162(m) Participant, the Committee shall have the right to reduce (but not to
increase) the amount payable at a given level of performance to take into account additional
factors that the Committee may deem relevant to the assessment of individual or corporate
performance for the fiscal year or other designated fiscal period or period of service.

          (d) Furthermore, notwithstanding any other provision of the Plan or any Award which is
granted to a Section 162(m) Participant and is intended to qualify as performance-based
compensation as described in Section 162(m)(4)(C) of the Code shall be subject to any
additional limitations set forth in Section 162(m) of the Code (including any amendment to
Section 162(m) of the Code) or any regulations or rulings issued thereunder that are
requirements for qualification as performance-based compensation as described in Section
162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the extent necessary to
conform to such requirements.

          3.3. Limitations Applicable to Section 16 Persons. Notwithstanding any other
provision of the Plan, the Plan, and any Award granted or awarded to any individual who is then
subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth
in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to
Rule 16b-3 of the Exchange Act) that are
requirements for the application of such exemptive rule. To the extent permitted by
applicable law, the Plan and Awards granted or

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awarded hereunder shall be deemed amended to the
extent necessary to conform to such applicable exemptive rule.

          3.4. Consideration. In consideration of the granting of an Award under the Plan, the
Holder shall agree, in the Award Agreement, to render faithful and efficient services to the
Company or a Subsidiary.

          3.5. At-Will Employment. Nothing in the Plan or in any Award Agreement hereunder
shall confer upon any Holder any right to continue in the employ of, or as a Consultant for, the
Company or any Subsidiary, or as a director of the Company, or shall interfere with or restrict in
any way the rights of the Company and any Subsidiary, which are hereby expressly reserved, to
discharge any Holder at any time for any reason whatsoever, with or without cause, except to the
extent expressly provided otherwise in a written employment agreement between the Holder and the
Company and any Subsidiary.

ARTICLE IV.

GRANTING OF OPTIONS TO EMPLOYEES,

CONSULTANTS AND INDEPENDENT DIRECTORS

          4.1. Eligibility. Any Employee or Consultant selected by the Committee pursuant to
Section 4.4(a)(i) shall be eligible to be granted an Option. Each Independent Director of the
Company shall be eligible to be granted Options at the times and in the manner set forth in Section
4.5.

          4.2. Disqualification for Stock Ownership. No person may be granted an Incentive
Stock Option under the Plan if such person, at the time the Incentive Stock Option is granted, owns
stock possessing more than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or any then existing Subsidiary or parent corporation (within the meaning of
Section 422 of the Code) unless such Incentive Stock Option conforms to the applicable provisions
of Section 422 of the Code.

          4.3. Qualification of Incentive Stock Options. No Incentive Stock Option shall be
granted to any person who is not an Employee.

          4.4. Granting of Options to Employees and Consultants.

           (a) The Committee shall from time to time, in its absolute discretion, and subject to
applicable limitations of the Plan:

           (i) Determine which Employees are key Employees and select from among
the key Employees or Consultants (including Employees or Consultants who
have previously received Awards under the Plan) such of them as in its
opinion should be granted Options;

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           (ii) Subject to the Award Limit, determine the number of shares to be
subject to such Options granted to the selected key Employees or
Consultants;

           (iii) Subject to Section 4.3, determine whether such Options are to be
Incentive Stock Options or Non-Qualified Stock Options and whether such
Options are to qualify as performance-based compensation as described in
Section 162(m)(4)(C) of the Code; and

           (iv) Determine the terms and conditions of such Options, consistent
with the Plan; provided, however, that the terms and
conditions of Options intended to qualify as performance-based compensation
as described in Section 162(m)(4)(C) of the Code shall include, but not be
limited to, such terms and conditions as may be necessary to satisfy the
applicable provisions of Section 162(m) of the Code.

          (b) Upon the selection of a key Employee or Consultant to be granted an Option, the
Committee shall instruct the Secretary of the Company to issue the Option and may impose
such conditions on the grant of the Option as it deems appropriate.

          (c) Any Incentive Stock Option granted under the Plan may be modified by the Committee,
with the consent of the Holder, to disqualify such Option from treatment as an “incentive
stock option” under Section 422 of the Code.

          4.5. Granting of Options to Independent Directors.

     The Board shall from time to time, in its absolute discretion, and subject to applicable
limitations of the Plan:

           (a) Select from among the Independent Directors (including Independent Directors who
have previously received Options under the Plan) such of them as in its opinion should be
granted Options;

           (b) Subject to the Award Limit, determine the number of shares to be subject to such
Options granted to the selected Independent Directors;

          (c) Subject to the provisions of Article 5, determine the terms and conditions of such
Options, consistent with the Plan.

     All the foregoing Option grants authorized by this Section 4.5 are subject to stockholder
approval of the Plan.

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ARTICLE V.

TERMS OF OPTIONS

          5.1. Option Price. The price per share of the shares subject to each Option granted
to Employees and Consultants shall be set by the Committee; provided, however, that
such price shall be no less than the par value of a share of Class A Common Stock, unless otherwise
permitted by applicable state law and:

           (a) in the case of Options intended to qualify as performance-based compensation as
described in Section 162(m)(4)(C) of the Code, such price shall not be less than 100% of the
Fair Market Value of a share of Class A Common Stock on the date the Option is granted;

           (b) in the case of Incentive Stock Options such price shall not be less than 100% of
the Fair Market Value of a share of Class A Common Stock on the date the Option is granted
(or the date the Option is modified, extended or renewed for purposes of Section 424(h) of
the Code);

           (c) in the case of Incentive Stock Options granted to an individual then owning (within
the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power
of all classes of stock of the Company or any Subsidiary or parent corporation thereof
(within the meaning of Section 422 of the Code), such price shall not be less than 110% of
the Fair Market Value of a share of Class A Common Stock on the date the Option is granted
(or the date the Option is modified, extended or renewed for purposes of Section 424(h) of
the Code).

          5.2. Option Term. The term of an Option granted to an Employee or Consultant shall be
set by the Committee in its discretion; provided, however, that:

          (a) No Option may have a term that extends beyond the expiration of ten (10) years from
the date the Option was granted;

           (b) In the case of Incentive Stock Options, the term shall not be more than ten (10)
years from the date the Incentive Stock Option is granted, or five (5) years from such date
if the Incentive Stock Option is granted to an individual then owning (within the meaning of
Section 424(d) of the Code) more than ten percent (10%) of the total combined voting power
of all classes of equity of the Company or any Subsidiary;

           (c) Except as limited by requirements of Section 422 of the Code and regulations and
rulings thereunder applicable to Incentive Stock Options, the Committee (or the Board in the
case of Options granted to Independent Directors) may extend the term of any outstanding
Option in connection with any Termination of Directorship, Termination of Employment or
Termination of Consultancy of the Holder, or amend any other term or condition of such
Option relating to such a termination; and

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           (d) Unless otherwise permitted by applicable securities laws, in the event of a
Holder’s Termination of Directorship, Termination of Employment or Termination of
Consultancy for any reason except death, Disability or Termination for Cause, the Holder
shall have at least ninety (90) days from the date of such Termination of Directorship,
Termination of Employment or Termination of Consultancy to exercise the Option, and in the
event of a Holder’s Termination of Directorship, Termination of Employment or Termination of
Consultancy due to the Holder’s death or Disability, the Holder shall have at least one
hundred eighty (180) days from the date of such Termination of Directorship, Termination of
Employment or Termination of Consultancy to exercise the Option. Notwithstanding the
forgoing, if a Holder’s Termination of Directorship, Termination of Employment or
Termination of Consultancy also qualifies as a Termination for Cause, the Company, in its
discretion, may terminate the Holder’s right to exercise his or her Options on the date of
such termination or such other time as the Committee (or the Board in the case of Options
granted to Independent Directors), in its discretion, shall deem appropriate.

          5.3. Option Vesting

           (a) The period during which the right to exercise, in whole or in part, an Option
granted to an Employee or a Consultant vests in the Holder shall be set by the Committee and
the Committee may determine that an Option may not be exercised in whole or in part for a
specified period after it is granted; provided, however, that, unless the
Committee otherwise provides in the terms of the Award Agreement or otherwise, no Option
shall be exercisable by any Holder who is then subject to Section 16 of the Exchange Act
within the period ending six months and one day after the date the Option is granted. At
any time after grant of an Option, the Committee may, in its sole and absolute discretion
and subject to whatever terms and conditions it selects, accelerate the period during which
an Option granted to an Employee or Consultant vests.

           (b) No portion of an Option granted to an Employee or Consultant which is unexercisable
at Termination of Employment or Termination of Consultancy, as applicable, shall thereafter
become exercisable, except as may be otherwise provided by the Committee either in the Award
Agreement or by action of the Committee following the grant of the Option; provided, however
that if a Holder’s employment, in the case of an Employee, or provision of services, in the
case of a Consultant, terminated by reason of death or Disability, the Option shall become
exercisable with respect to one-hundred percent (100%) of the Class A Common Stock subject
to such Option.

           (c) To the extent that the aggregate Fair Market Value of stock with respect to which
“incentive stock options” (within the meaning of Section 422 of the Code, but without regard
to Section 422(d) of the Code) are exercisable for the first time by a Holder during any
calendar year (under the Plan and all other incentive stock option plans of the Company and
any parent or subsidiary corporation, within the meaning of Section 422 of the Code) of the
Company, exceeds $100,000, such Options shall be treated as Non-Qualified Options to the
extent required by Section 422 of the Code. The

13

 

rule set forth in the preceding sentence
shall be applied by taking Options into account in the order in which they were granted.
For purposes of this Section 5.3(c), the Fair Market Value of stock shall be determined as
of the time the Option with respect to such stock is granted.

          5.4. Terms of Options Granted to Independent Directors. The price per share of the
shares subject to each Option granted to an Independent Director shall equal 100% of the Fair
Market Value of a share of Class A Common Stock on the date the Option is granted. Options granted
to Independent Directors shall become exercisable in cumulative annual installments of 25% on each
of the first, second, third and fourth anniversaries of the date of Option grant and, subject to
Section 6.6, the term of each Option granted to an Independent Director shall be ten (10) years
from the date the Option is granted. No portion of an Option which is unexercisable at Termination
of Directorship shall thereafter become exercisable.

          5.5. Substitute Awards. Notwithstanding the foregoing provisions of this Article V to
the contrary, in the case of an Option that is a Substitute Award, the price per share of the
shares subject to such Option may be less than the Fair Market Value per share on the date of
grant, provided, that the excess of:

           (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted)
of the shares subject to the Substitute Award; over

          (b) the aggregate exercise price thereof; does not exceed the excess of;

           (c) the aggregate fair market value (as of the time immediately preceding the
transaction giving rise to the Substitute Award, such fair market value to be determined by
the Committee) of the shares of the predecessor entity that were subject to the grant
assumed or substituted for by the Company; over

          (d) the aggregate exercise price of such shares.

ARTICLE VI.

EXERCISE OF OPTIONS

          6.1. Partial Exercise. An exercisable Option may be exercised in whole or in part.
However, an Option shall not be exercisable with respect to fractional shares and the Administrator
may require that, by the terms of the Option, a partial exercise be with respect to a minimum
number of shares.

          6.2. Manner of Exercise. All or a portion of an exercisable Option shall be deemed
exercised upon delivery of all of the following to the Secretary of the Company or his office:

           (a) A written notice complying with the applicable rules established by the
Administrator stating that the Option, or a portion thereof, is exercised. The notice

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shall
be signed by the Holder or other person then entitled to exercise the Option or such portion
of the Option;

           (b) Such representations and documents as the Administrator, in its absolute
discretion, deems necessary or advisable to effect compliance with all applicable provisions
of the Securities Act and any other federal or state securities laws or regulations. The
Administrator may, in its absolute discretion, also take whatever additional actions it
deems appropriate to effect such compliance including, without limitation, placing legends
on share certificates and issuing stop-transfer notices to agents and registrars;

           (c) In the event that the Option shall be exercised pursuant to Section 11.1 by any
person or persons other than the Holder, appropriate proof of the right of such person or
persons to exercise the Option; and

           (d) Full cash payment to the Secretary of the Company for the shares with respect to
which the Option, or portion thereof, is exercised and for payment of any applicable
withholding or other applicable employment taxes with respect to which the Option, or
portion thereof, is exercised. However, the Administrator, may in its discretion (i) allow
a delay in payment up to thirty (30) days from the date the Option, or portion thereof, is
exercised; (ii) allow payment, in whole or in part, through the delivery of shares of the
Company’s Class A Common Stock which have been owned by the Optionee for a period of more
than six months, duly endorsed for transfer to the Company, with a Fair Market Value on the
date of delivery equal to the aggregate exercise price of the Option or exercised portion
thereof; (iii) allow payment, in whole or in part, through the delivery of a full recourse
promissory note bearing interest (at no less than such rate as shall then preclude the
imputation of interest under the Code) and payable upon such terms as may be prescribed by
the Administrator; or (iv) allow payment through any combination of cash and the
consideration provided in the foregoing subparagraphs (ii) and/or (iii). In the case of a
promissory note, the Administrator may also prescribe the form of such note and
the security to be given for such note. The Option may not be exercised, however, by
delivery of a promissory note or by a loan from the Company when or where such loan or other
extension of credit is prohibited by law.

          6.3. Conditions to Issuance of Stock Certificates. The Company shall not be required
to issue or deliver any certificate or certificates for shares of stock purchased upon the exercise
of any Option or portion thereof prior to fulfillment of all of the following conditions:

           (a) The admission of such shares to listing on all stock exchanges on which such class
of stock is then listed;

           (b) The completion of any registration or other qualification of such shares under any
state or federal law, or under the rulings or regulations of the Securities and Exchange
Commission or any other governmental regulatory body which the Administrator shall, in its
absolute discretion, deem necessary or advisable;

15

 

           (c) The obtaining of any approval or other clearance from any state or federal
governmental agency which the Administrator shall, in its absolute discretion, determine to
be necessary or advisable;

           (d) The lapse of such reasonable period of time following the exercise of the Option as
the Administrator may establish from time to time for reasons of administrative convenience;
and

           (e) The receipt by the Company of full payment for such shares, including payment of
any applicable withholding tax.

          6.4. Rights as Stockholders. Holders shall not be, nor have any of the rights or
privileges of, stockholders of the Company in respect of any shares purchasable upon the exercise
of any part of an Option unless and until certificates representing such shares have been issued by
the Company to such Holders.

          6.5. Ownership and Transfer Restrictions. The Administrator, in its absolute
discretion, may impose such restrictions on the ownership and transferability of the shares
purchasable upon the exercise of an Option as it deems appropriate. Any such restriction shall be
set forth in the respective Award Agreement and may be referred to on the certificates evidencing
such shares. The Holder shall give the Company prompt notice of any disposition of shares of Class
A Common Stock acquired by exercise of an Incentive Stock Option within (a) two years from the date
of granting (including the date the Option is modified, extended or renewed for purposes of Section
424(h) of the Code) such Option to such Holder or (b) one year after the transfer of such shares to
such Holder.

          6.6. Limitations on Exercise of Options Granted to Independent Directors.
No Option granted to an Independent Director may be exercised to any extent by anyone after
the first to occur of the following events:

          (a) the expiration of twelve (12) months from the date of the Holder’s death;

          (b) the expiration of twelve (12) months from the date of the Holder’s Termination of
Directorship by reason of his Disability;

           (c) the expiration of three (3) months from the date of the Holder’s Termination of
Directorship for any reason other than such Holder’s death or his Disability, unless the
Holder dies within said three-month period; or

          (d) the expiration of ten (10) years from the date the Option was granted.

          6.7. Additional Limitations on Exercise of Options. Holders may be required to comply
with any timing or other restrictions with respect to the settlement or exercise of an

16

 

Option,
including a window-period limitation, as may be imposed in the discretion of the Administrator.

ARTICLE VII.

AWARD OF RESTRICTED STOCK

          7.1. Eligibility. Subject to the Award Limit, Restricted Stock may be awarded to any Employee who the Committee determines is a key Employee or any Consultant who the Committee
determines should receive such an Award.

          7.2. Award of Restricted Stock

          (a) The Committee may from time to time, in its absolute discretion:

           (i) Determine which Employees are key Employees and select from among
the key Employees or Consultants (including Employees or Consultants who
have previously received other awards under the Plan) such of them as in its
opinion should be awarded Restricted Stock; and

           (ii) Determine the purchase price, if any, and other terms and
conditions applicable to such Restricted Stock, consistent with the Plan.

           (b) The Committee shall establish the purchase price, if any, and form of payment for
Restricted Stock; provided, however, that such purchase price shall be no
less than the par value of the Class A Common Stock to be purchased, unless otherwise
permitted by applicable state law. In all cases, legal consideration shall be required
for each issuance of Restricted Stock.

           (c) Upon the selection of a key Employee or Consultant to be awarded Restricted Stock,
the Committee shall instruct the Secretary of the Company to issue such Restricted Stock and
may impose such conditions on the issuance of such Restricted Stock as it deems appropriate.

          7.3. Rights as Stockholders. Subject to Section 7.4, upon delivery of the shares of
Restricted Stock to the escrow holder pursuant to Section 7.6, the Holder shall have, unless
otherwise provided by the Committee, all the rights of a stockholder with respect to said shares,
subject to the restrictions in his Award Agreement, including the right to receive all dividends
and other distributions paid or made with respect to the shares; provided, however,
that in the discretion of the Committee, any extraordinary distributions with respect to the Class
A Common Stock shall be subject to the restrictions set forth in Section 7.4.

          7.4. Restriction. All shares of Restricted Stock issued under the Plan (including any
shares received by holders thereof with respect to shares of Restricted Stock as a

17

 

result of stock
dividends, stock splits or any other form of recapitalization) shall, in the terms of each
individual Award Agreement, be subject to such restrictions as the Committee shall provide, which
restrictions may include, without limitation, restrictions concerning voting rights and
transferability and restrictions based on duration of employment with the Company, Company
performance and individual performance; provided, however, that, unless the Committee otherwise
provides in the terms of the Award Agreement or otherwise, no share of Restricted Stock granted to
a person subject to Section 16 of the Exchange Act shall be sold, assigned or otherwise transferred
until at least six months and one day have elapsed from the date on which the Restricted Stock was
issued, and provided, further, that, except with respect to shares of Restricted Stock granted to
Section 162(m) Participants, by action taken after the Restricted Stock is issued, the Committee
may, on such terms and conditions as it may determine to be appropriate, remove any or all of the
restrictions imposed by the terms of the Award Agreement. Restricted Stock may not be sold or
encumbered until all restrictions are terminated or expire. If no consideration was paid by the
Holder upon issuance, a Holder’s rights in unvested Restricted Stock shall lapse, and such
Restricted Stock shall be surrendered to the Company without consideration, upon Termination of
Employment or, if applicable, upon Termination of Consultancy with the Company; provided, however,
that the Committee in its sole and absolute discretion may provide that such rights shall not lapse
in the event of a Termination of Employment following a “change of ownership or control” (within
the meaning of Treasury Regulation Section 1.162-27(e)(2)(v) or any successor regulation thereto)
of the Company or because of the Holder’s death or Disability; provided, further, except with
respect to shares of Restricted Stock granted to Section 162(m) Participants, the Committee in its
sole and absolute discretion may provide that no such lapse or surrender shall occur in the event
of a Termination of Employment, or a Termination of Consultancy, without
cause or following any Change in Control of the Company or because of the Holder’s retirement,
or otherwise.

          7.5. Repurchase of Restricted Stock. The Committee shall provide in the terms of each
individual Award Agreement that the Company shall have the right to repurchase from the Holder the
Restricted Stock then subject to restrictions under the Award Agreement immediately upon a
Termination of Employment or, if applicable, upon a Termination of Consultancy between the Holder
and the Company, at a cash price per share equal to the price paid by the Holder for such
Restricted Stock; provided, however, that the Committee in its sole and absolute discretion may
provide that no such right of repurchase shall exist in the event of a Termination of Employment
following a “change of ownership or control” (within the meaning of Treasury Regulation Section
1.162-27(e)(2)(v) or any successor regulation thereto) of the Company or because of the Holder’s
death or Disability; provided, further, that, except with respect to shares of Restricted Stock
granted to Section 162(m) Participants, the Committee in its sole and absolute discretion may
provide that no such right of repurchase shall exist in the event of a Termination of Employment or
a Termination of Consultancy without cause or following any Change in Control of the Company or
because of the Holder’s retirement, or otherwise.

          7.6. Escrow. The Secretary of the Company or such other escrow holder as the
Committee may appoint shall retain physical custody of each certificate representing Restricted
Stock until all of the restrictions imposed under the Award Agreement with respect to the shares
evidenced by such certificate expire or shall have been removed.

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          7.7. Legend. In order to enforce the restrictions imposed upon shares of Restricted
Stock hereunder, the Committee shall cause a legend or legends to be placed on certificates
representing all shares of Restricted Stock that are still subject to restrictions under Award
Agreements, which legend or legends shall make appropriate reference to the conditions imposed
thereby.

          7.8. Section 83(b) Election. If a Holder makes an election under Section 83(b) of the
Code, or any successor section thereto, to be taxed with respect to the Restricted Stock as of the
date of transfer of the Restricted Stock rather than as of the date or dates upon which the Holder
would otherwise be taxable under Section 83(a) of the Code, the Holder shall deliver a copy of such
election to the Company immediately after filing such election with the Internal Revenue Service.

ARTICLE VIII.

PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS, DEFERRED STOCK,

STOCK PAYMENTS

          8.1. Eligibility. Subject to the Award Limit, one or more Performance Awards,
Dividend Equivalents, awards of Deferred Stock, and/or Stock Payments may be granted to any
Employee whom the Committee determines is a key Employee or any Consultant whom the Committee
determines should receive such an Award. Each Independent Director of the Company shall be
eligible to be granted one or more Dividend Equivalents at the times and in the manner set forth in
Section 8.3(c).

          8.2. Performance Awards. Any key Employee or Consultant selected by the Committee may
be granted one or more Performance Awards. The value of such Performance Awards may be linked to
any one or more of the Performance Criteria or other specific performance criteria determined
appropriate by the Committee, in each case on a specified date or dates or over any period or
periods determined by the Committee. In making such determinations, the Committee shall consider
(among such other factors as it deems relevant in light of the specific type of award) the
contributions, responsibilities and other compensation of the particular key Employee or
Consultant.

          8.3. Dividend Equivalents.

          (a) Any key Employee or Consultant selected by the Committee may be granted Dividend
Equivalents based on the dividends declared on Class A Common Stock, to be credited as of
dividend payment dates, during the period between the date a Stock Appreciation Right,
Deferred Stock or Performance Award is granted, and the date such Stock Appreciation Right,
Deferred Stock or Performance Award is exercised, vests or expires, as determined by the
Committee. Such Dividend Equivalents shall be converted to cash or additional shares of
Class A Common Stock by such formula and at such time and subject to such limitations as may
be determined by the Committee.

19

 

           (b) Any Holder of an Option who is an Employee or Consultant selected by the Committee
may be granted Dividend Equivalents based on the dividends declared on Class A Common Stock,
to be credited as of dividend payment dates, during the period between the date an Option is
granted, and the date such Option is exercised, vests or expires, as determined by the
Committee. Such Dividend Equivalents shall be converted to cash or additional shares of
Class A Common Stock by such formula and at such time and subject to such limitations as may
be determined by the Committee.

          (c) Any Holder of an Option who is an Independent Director selected by the Board may be
granted Dividend Equivalents based on the dividends declared on Class A Common Stock, to be
credited as of dividend payment dates, during the period between the date an Option is
granted, and the date such Option is exercised, vests or expires, as determined by the
Board. Such Dividend Equivalents shall be converted to cash or additional shares of Class A
Common Stock by such formula and at such time and subject to such limitations as may be
determined by the Board.

           (d) Dividend Equivalents granted with respect to Options intended to be qualified
performance-based compensation for purposes of Section 162(m) of the Code shall be payable,
with respect to pre-exercise periods, regardless of whether such Option is subsequently
exercised.

          8.4. Stock Payments. Any key Employee or Consultant selected by the Committee may
receive Stock Payments in the manner determined from time to time by the Committee. The number of
shares shall be determined by the Committee and may be based upon the Performance Criteria or other
specific performance criteria determined appropriate by the Committee, determined on the date such
Stock Payment is made or on any date thereafter.

          8.5. Deferred Stock. Any key Employee or Consultant selected by the Committee may be
granted an award of Deferred Stock in the manner determined from time to time by the Committee.
The number of shares of Deferred Stock shall be determined by the Committee and may be linked to
the Performance Criteria or other specific performance criteria determined to be appropriate by the
Committee, in each case on a specified date or dates or over any period or periods determined by
the Committee. Class A Common Stock underlying a Deferred Stock award will not be issued until the
Deferred Stock award has vested, pursuant to a vesting schedule or performance criteria set by the
Committee. Unless otherwise provided by the Committee, a Holder of Deferred Stock shall have no
rights as a Company stockholder with respect to such Deferred Stock until such time as the Award
has vested and the Class A Common Stock underlying the Award has been issued.

          8.6. Term. The term of a Performance Award, Dividend Equivalent, award of Deferred
Stock and/or Stock Payment granted to any Employee or Consultant shall be set by the Committee in
its discretion. The term of a Dividend Equivalent granted to any Independent Director shall be set
by the Board in its discretion.

20

 

          8.7. Exercise or Purchase Price. The Committee may establish the exercise or purchase
price of a Performance Award, shares of Deferred Stock, or shares received as a Stock Payment;
provided, however, that such price shall not be less than the par value for a share
of Class A Common Stock, unless otherwise permitted by applicable state law.

          8.8. Exercise Upon Termination of Employment, Termination of Consultancy or Termination of
Directorship. A Performance Award, Dividend Equivalent, award of Deferred Stock and/or Stock
Payment is exercisable or payable only while the Holder is an Employee, Consultant or Independent
Director, as applicable; provided, however, that the Administrator in its sole and
absolute discretion may provide that the Performance Award, Dividend Equivalent, award of
Deferred Stock and/or Stock Payment may be exercised or paid subsequent to a Termination of
Employment following a “change of control or ownership” (within the meaning of Section
1.162-27(e)(2)(v) or any successor regulation thereto) of the Company; provided, further, that
except with respect to Performance Awards granted to Section 162(m) Participants, the Administrator
in its sole and absolute discretion may provide that Performance Awards may be exercised or paid
following a Termination of Employment or a Termination of Consultancy without cause, or following a
Change in Control of the Company, or because of the Holder’s retirement, death or Disability, or
otherwise.

          8.9. Form of Payment. Payment of the amount determined under Section 8.2 or 8.3 above
shall be in cash, in Class A Common Stock or a combination of both, as determined by the Committee.
To the extent any payment under this Article VIII is effected in Class A Common Stock, it shall be
made subject to satisfaction of all provisions of Section 6.3.

ARTICLE IX.

STOCK APPRECIATION RIGHTS

          9.1. Grant of Stock Appreciation Rights. A Stock Appreciation Right may be granted to
any key Employee or Consultant selected by the Committee. A Stock Appreciation Right may be
granted (a) in connection and simultaneously with the grant of an Option, (b) with respect to a
previously granted Option, or (c) independent of an Option. A Stock Appreciation Right shall be
subject to such terms and conditions not inconsistent with the Plan as the Committee shall impose
and shall be evidenced by an Award Agreement.

          9.2. Coupled Stock Appreciation Rights.

          (a) A Coupled Stock Appreciation Right (“CSAR”) shall be related to a particular Option
and shall be exercisable only when and to the extent the related Option is exercisable.

           (b) A CSAR may be granted to the Holder for no more than the number of shares
subject to the simultaneously or previously granted Option to which it is coupled.

21

 

           (c) A CSAR shall entitle the Holder (or other person entitled to exercise the Option
pursuant to the Plan) to surrender to the Company unexercised a portion of the Option to
which the CSAR relates (to the extent then exercisable pursuant to its terms) and to receive
from the Company in exchange therefor an amount determined by multiplying the difference
obtained by subtracting the Option exercise price from the Fair Market Value of a share of
Class A Common Stock on the date of exercise of the
CSAR by the number of shares of Class A Common Stock with respect to which the CSAR
shall have been exercised, subject to any limitations the Committee may impose.

          9.3. Independent Stock Appreciation Rights.

           (a) An Independent Stock Appreciation Right (“ISAR”) shall be unrelated to any Option
and shall have a term set by the Committee. An ISAR shall be exercisable in such
installments as the Committee may determine. An ISAR shall cover such number of shares of
Class A Common Stock as the Committee may determine; provided, however, that
unless the Committee otherwise provides in the terms of the ISAR or otherwise, no ISAR
granted to a person subject to Section 16 of the Exchange Act shall be exercisable until at
least six months have elapsed from (but excluding) the date on which the Option was granted.
The exercise price per share of Class A Common Stock subject to each ISAR shall be set by
the Committee. An ISAR is exercisable only while the Holder is an Employee or Consultant;
provided that the Committee may determine that the ISAR may be exercised subsequent to
Termination of Employment or Termination of Consultancy without cause, or following a Change
in Control of the Company, or because of the Holder’s retirement, death or Disability, or
otherwise.

           (b) An ISAR shall entitle the Holder (or other person entitled to exercise the ISAR
pursuant to the Plan) to exercise all or a specified portion of the ISAR (to the extent then
exercisable pursuant to its terms) and to receive from the Company an amount determined by
multiplying the difference obtained by subtracting the exercise price per share of the ISAR
from the Fair Market Value of a share of Class A Common Stock on the date of exercise of the
ISAR by the number of shares of Class A Common Stock with respect to which the ISAR shall
have been exercised, subject to any limitations the Committee may impose.

          9.4. Payment and Limitations on Exercise.

          (a) Payment of the amounts determined under Section 9.2(c) and 9.3(b) above shall be in
cash, in Class A Common Stock (based on its Fair Market Value as of the date the Stock
Appreciation Right is exercised) or a combination of both, as determined by the Committee.
To the extent such payment is effected in Class A Common Stock it shall be made subject to
satisfaction of all provisions of Section 6.3 above pertaining to Options.

22

 

           (b) Holders of Stock Appreciation Rights may be required to comply with any timing or
other restrictions with respect to the settlement or exercise of a Stock Appreciation Right,
including a window-period limitation, as may be imposed in the discretion of the Committee.

ARTICLE X.

ADMINISTRATION

          10.1. Compensation Committee.
Prior to the Company’s initial registration of Class A Common Stock under Section 12 of the
Exchange Act, the Compensation Committee shall consist of the entire Board. Following such
registration, the Compensation Committee (or another committee or a subcommittee of the Board
assuming the functions of the Committee under the Plan) shall consist solely of two or more
Independent Directors appointed by and holding office at the pleasure of the Board, each of whom is
both a “non-employee director” as defined by Rule 16b-3 and an “outside director” for purposes of
Section 162(m) of the Code. Appointment of Committee members shall be effective upon acceptance of
appointment. Committee members may resign at any time by delivering written notice to the Board.
Vacancies in the Committee may be filled by the Board.

          10.2. Duties and Powers of the Committee. It shall be the duty of the Committee to
conduct the general administration of the Plan in accordance with its provisions. The Committee
shall have the power to interpret the Plan and the Award Agreements, and to adopt such rules for
the administration, interpretation, and application of the Plan as are consistent therewith, to
interpret, amend or revoke any such rules and to amend any Award Agreement provided that the rights
or obligations of the Holder of the Award that is the subject of any such Award Agreement are not
affected adversely. Any such grant or award under the Plan need not be the same with respect to
each Holder. Any such interpretations and rules with respect to Incentive Stock Options shall be
consistent with the provisions of Section 422 of the Code. In its absolute discretion, the Board
may at any time and from time to time exercise any and all rights and duties of the Committee under
the Plan except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or
any regulations or rules issued thereunder, are required to be determined in the sole discretion of
the Committee. Notwithstanding the foregoing, the full Board, acting by a majority of its members
in office, shall conduct the general administration of the Plan with respect to Options and
Dividend Equivalents granted to Independent Directors.

          10.3. Majority Rule; Unanimous Written Consent. The Committee shall act by a majority
of its members in attendance at a meeting at which a quorum is present or by a memorandum or other
written instrument signed by all members of the Committee.

          10.4. Compensation; Professional Assistance; Good Faith Actions. Members of the
Committee shall receive such compensation, if any, for their services as members as may be
determined by the Board. All expenses and liabilities which members of the Committee incur in
connection with the administration of the Plan shall be borne by the Company. The Committee may,
with the approval of the Board, employ attorneys, consultants, accountants, appraisers,

23

 

brokers, or
other persons. The Committee, the Company and the Company’s officers and Directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken
and all interpretations and determinations made by the Committee or the Board in good faith shall
be final and binding upon all Holders, the Company and all other interested persons. No members of
the Committee or Board shall be
personally liable for any action, determination or interpretation made in good faith with
respect to the Plan or Awards, and all members of the Committee and the Board shall be fully
protected by the Company in respect of any such action, determination or interpretation.

          10.5. Delegation of Authority to Grant Awards. The Committee may, but need not,
delegate from time to time some or all of its authority to grant Awards under the Plan to a
committee consisting of one or more members of the Committee or of one or more officers of the
Company; provided, however, that the Committee may not delegate its authority to grant Awards to
individuals (i) who are subject on the date of the grant to the reporting rules under Section 16(a)
of the Exchange Act, (ii) who are Section 162(m) Participants or (iii) who are officers of the
Company who are delegated authority by the Committee hereunder. Any delegation hereunder shall be
subject to the restrictions and limits that the Committee specifies at the time of such delegation
of authority and may be rescinded at any time by the Committee. At all times, any committee
appointed under this Section 10.5 shall serve in such capacity at the pleasure of the Committee.

ARTICLE XI.

MISCELLANEOUS PROVISIONS

          11.1. Not Transferable. No Award under the Plan may be sold, pledged, assigned or
transferred in any manner other than by will or the laws of descent and distribution or, subject to
the consent of the Administrator, pursuant to a DRO, unless and until such Award has been
exercised, or the shares underlying such Award have been issued, and all restrictions applicable to
such shares have lapsed. No Award or interest or right therein shall be liable for the debts,
contracts or engagements of the Holder or his successors in interest or shall be subject to
disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect, except to the extent
that such disposition is permitted by the preceding sentence.

          During the lifetime of the Holder, only he may exercise an Option or other Award (or any
portion thereof) granted to him under the Plan, unless it has been disposed of with the consent of
the Administrator pursuant to a DRO. After the death of the Holder, any exercisable portion of an
Option or other Award may, prior to the time when such portion becomes unexercisable under the Plan
or the applicable Award Agreement, be exercised by his personal representative or by any person
empowered to do so under the deceased Holder’s will or under the then applicable laws of descent
and distribution.

24

 

          11.2. Amendment, Suspension or Termination of the Plan. Except as otherwise provided
in this Section 11.2, the Plan may be wholly or partially amended or otherwise modified, suspended
or terminated at any time or from time to
time by the Administrator. However, without approval of the Company’s stockholders given
within twelve months before or after the action by the Administrator, no action of the
Administrator may, except as provided in Section 11.3, increase the limits imposed in Section 2.1
on the maximum number of shares which may be issued under the Plan. No amendment, suspension or
termination of the Plan shall, without the consent of the Holder alter or impair any rights or
obligations under any Award theretofore granted or awarded, unless the Award itself otherwise
expressly so provides. No Awards may be granted or awarded during any period of suspension or
after termination of the Plan, and in no event may any Incentive Stock Option be granted under the
Plan after the first to occur of the following events:

           (a) The expiration of ten (10) years from the date the Plan is adopted by the Board; or

           (b) The expiration of ten (10) years from the date the Plan is approved by the
Company’s stockholders under Section 11.4.

          11.3. Changes in Class A Common Stock or Assets of the Company, Acquisition or Liquidation
of the Company and Other Corporate Events.

           (a) Subject to Section 11.3 (d), in the event that the Administrator determines that
any dividend or other distribution (whether in the form of cash, Class A Common Stock, other
securities, or other property), recapitalization, reclassification, stock split, reverse
stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of
all or substantially all of the assets of the Company, or exchange of Class A Common Stock
or other securities of the Company, issuance of warrants or other rights to purchase Class A
Common Stock or other securities of the Company, or other similar corporate transaction or
event, in the Administrator’s sole discretion, affects the Class A Common Stock such that an
adjustment is determined by the Administrator to be appropriate in order to prevent dilution
or enlargement of the benefits or potential benefits intended to be made available under the
Plan or with respect to an Award, then the Administrator shall, in such manner as it may
deem equitable, adjust any or all of

           (i) the number and kind of shares of Class A Common Stock (or other
securities or property) with respect to which Awards may be granted or
awarded (including, but not limited to, adjustments of the limitations in
Section 2.1 on the maximum number and kind of shares which may be issued and
adjustments of the Award Limit),

           (ii) the number and kind of shares of Class A Common Stock (or other
securities or property) subject to outstanding Awards, and

25

 

           (iii) the grant or exercise price with respect to any Award.

           (b) Subject to Sections 11.3(d) and (e), in the event of any transaction or event
described in Section 11.3(a) or any unusual or nonrecurring transactions or
events affecting the Company, any affiliate of the Company, or the financial statements
of the Company or any affiliate, or of changes in applicable laws, regulations, or
accounting principles, the Administrator, in its sole and absolute discretion, and on such
terms and conditions as it deems appropriate, either by the terms of the Award or by action
taken prior to the occurrence of such transaction or event and either automatically or upon
the Holder’s request, is hereby authorized to take any one or more of the following actions
whenever the Administrator determines that such action is appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan or with respect to any Award under the Plan, to facilitate such transactions
or events or to give effect to such changes in laws, regulations or principles:

           (i) To provide for either the purchase of any such Award for an amount
of cash equal to the amount that could have been attained upon the exercise
of such Award or realization of the Holder’s rights had such Award been
currently exercisable or payable or fully vested or the replacement of such
Award with other rights or property selected by the Administrator in its
sole discretion;

           (ii) To provide that the Award cannot vest, be exercised or become
payable after such event;

           (iii) To provide that such Award shall be exercisable as to all shares
covered thereby, notwithstanding anything to the contrary in Section 5.3 or
5.4 or the provisions of such Award;

           (iv) To provide that such Award be assumed by the successor or survivor
corporation, or a parent or subsidiary thereof, or shall be substituted for
by similar options, rights or awards covering the stock of the successor or
survivor corporation, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices; and

           (v) To make adjustments in the number and type of shares of Class A
Common Stock (or other securities or property) subject to outstanding
Awards, and in the number and kind of outstanding Restricted Stock or
Deferred Stock and/or in the terms and conditions of, and the criteria
included in, outstanding options, rights and awards and options, rights and
awards which may be granted in the future.

           (vi) To provide that, for a specified period of time prior to such
event, the restrictions imposed under an Award Agreement upon

26

 

some or all shares of Restricted Stock or Deferred Stock may be terminated, and, in the
case of Restricted Stock, some or all shares of such Restricted Stock may
cease to be subject to repurchase under Section 7.5 or forfeiture under
Section 7.4 after such event.

           (c) Subject to Sections 11.3(d), 3.2 and 3.3, the Administrator may, in its discretion,
include such further provisions and limitations in any Award, agreement or certificate, as
it may deem equitable and in the best interests of the Company.

           (d) With respect to Awards which are granted to Section 162(m) Participants and are
intended to qualify as performance-based compensation under Section 162(m)(4)(C), no
adjustment or action described in this Section 11.3 or in any other provision of the Plan
shall be authorized to the extent that such adjustment or action would cause such Award to
fail to so qualify under Section 162(m)(4)(C), or any successor provisions thereto. No
adjustment or action described in this Section 11.3 or in any other provision of the Plan
shall be authorized to the extent that such adjustment or action would cause the Plan to
violate Section 422(b)(1) of the Code. Furthermore, no such adjustment or action shall be
authorized to the extent such adjustment or action would result in short-swing profits
liability under Section 16 or violate the exemptive conditions of Rule 16b-3 unless the
Administrator determines that the Award is not to comply with such exemptive conditions.
The number of shares of Class A Common Stock subject to any Award shall always be rounded to
the next whole number.

           (e) Notwithstanding the foregoing, in the event that the Company becomes a party to a
transaction that is intended to qualify for “pooling of interests” accounting treatment and,
but for one or more of the provisions of this Plan or any Award Agreement would so qualify,
then this Plan and any Award Agreement shall be interpreted so as to preserve such
accounting treatment, and to the extent that any provision of the Plan or any Award
Agreement would disqualify the transaction from pooling of interests accounting treatment
(including, if applicable, an entire Award Agreement), then such provision shall be null and
void. All determinations to be made in connection with the preceding sentence shall be made
by the independent accounting firm whose opinion with respect to “pooling of interests”
treatment is required as a condition to the Company’s consummation of such transaction.

          (f) The existence of the Plan, the Award Agreement and the Awards granted hereunder
shall not affect or restrict in any way the right or power of the Company or the
shareholders of the Company to make or authorize any adjustment, recapitalization,
reorganization or other change in the Company’s capital structure or its business, any
merger or consolidation of the Company, any issue of stock or of options, warrants or rights
to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights
are superior to or affect the Class A Common Stock or the rights thereof or which are
convertible into or exchangeable for Class A Common Stock, or the dissolution or liquidation
of the company, or any sale or transfer of all or any part of its

27

 

assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise.

          11.4. Approval of Plan by Stockholders. The Plan will be submitted for the approval
of the Company’s stockholders (by a majority of the outstanding common stock entitled to vote
thereon with the voting rights set forth
in the Company’s Amended and Restated Certificate of Incorporation) within twelve months after
the date of the Board’s initial adoption of the Plan. Awards may be granted or awarded prior to
such stockholder approval, provided that such Awards shall not be exercisable nor shall such Awards
vest prior to the time when the Plan is approved by the stockholders, and provided further that if
such approval has not been obtained at the end of said twelve-month period, all Awards previously
granted or awarded under the Plan shall thereupon be canceled and become null and void. In
addition, if the Board determines that Awards other than Options or Stock Appreciation Rights which
may be granted to Section 162(m) Participants should continue to be eligible to qualify as
performance-based compensation under Section 162(m)(4)(C) of the Code, the Performance Criteria
must be disclosed to and approved by the Company’s stockholders no later than the first stockholder
meeting that occurs in the fifth year following the year in which the Company’s stockholders
previously approved the Performance Criteria.

          11.5. Tax Withholding. The Company shall be entitled to require payment in cash or
deduction from other compensation payable to each Holder of any sums required by federal, state or
local tax law to be withheld with respect to the issuance, vesting, exercise or payment of any
Award. The Administrator may in its discretion and in satisfaction of the foregoing requirement
allow such Holder to elect to have the Company withhold shares of Class A Common Stock otherwise
issuable under such Award (or allow the return of shares of Class A Common Stock) having a Fair
Market Value equal to the sums required to be withheld.

          11.6. Loans. The Committee may, in its discretion, extend one or more loans to key
Employees in connection with the exercise or receipt of an Award granted or awarded under the Plan,
or the issuance of Restricted Stock or Deferred Stock awarded under the Plan. The terms and
conditions of any such loan shall be set by the Committee.

          11.7. Forfeiture Provisions. Pursuant to its general authority to determine the terms
and conditions applicable to Awards under the Plan, the Administrator shall have the right to
provide, in the terms of Awards made under the Plan, or to require a Holder to agree by separate
written instrument, that (a) (i) any proceeds, gains or other economic benefit actually or
constructively received by the Holder upon any receipt or exercise of the Award, or upon the
receipt or resale of any Class A Common Stock underlying the Award, must be paid to the Company,
and (ii) the Award shall terminate and any unexercised portion of the Award (whether or not vested)
shall be forfeited, if (b)(i) a Termination of Employment, Termination of Consultancy or
Termination of Directorship occurs prior to a specified date, or within a specified time period
following receipt or exercise of the Award, or (ii) the Holder at any time, or during a specified
time period, engages in any activity in competition with the Company, or which is inimical,
contrary or harmful to the interests of the Company, as further defined by the Administrator.

28

 

          11.8. Effect of Plan Upon Options and Compensation Plans.

           (a) The adoption of the Plan shall not affect any other compensation or incentive plans
in effect for the Company or any Subsidiary, other than superseding the Amended and Restated
Employee Equity Participation Plan of Nextera Enterprises, L.L.C., a Delaware limited
liability company (“Nextera LLC”). Nothing in the Plan shall be construed to limit the
right of the Company (i) to establish any other forms of incentives or compensation for
Employees, Directors or Consultants of the Company or any Subsidiary or (ii) to grant or
assume options or other rights or awards otherwise than under the Plan in connection with
any proper corporate purpose including but not by way of limitation, the grant or assumption
of options in connection with the acquisition by purchase, lease, merger, consolidation or
otherwise, of the business, stock or assets of any corporation, partnership, limited
liability company, firm or association.

           (b) Options granted under this Plan to replace options granted to the employees of
Nextera LLC, shall have the aggregate option exercise price, the vesting schedule and term
as set forth in the Equity Participation Agreements granted by Nextera LLC to the optionees
thereunder.

          11.9. Lock-Up in Connection with Initial Public Offering. Each Award Agreement issued
pursuant to this Plan prior to the initial public offering of the Company’s Common Stock shall
include provisions substantially similar to the following:

     “To induce the underwriters that may participate in an initial public offering (the
“Initial Public Offering”) of the Company’s Common Stock to continue their efforts in
connection with the Initial Public Offering, the undersigned, during the period commencing
on the date hereof and ending 180 days after the date of the final prospectus relating to
the Initial Public Offering:

          (i) agrees not to (x) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, or otherwise transfer or dispose of, directly or
indirectly, any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock (including, without limitation, shares
of Common Stock or securities convertible into or exercisable or exchangeable for
Common Stock which may be deemed to be beneficially owned by the undersigned in
accordance with the rules and regulations of the Securities and Exchange Commission)
or (y) enter into any swap or other arrangement that transfers all or a portion of
the economic consequences associated with the ownership of any Common Stock
(regardless of whether any of the transactions described in clause (x) or (y) is to
be settled by the delivery of Common Stock, or such other securities, in cash or
otherwise), without prior written consent of the lead managing underwriter of such
Initial Public Offering;

           (ii) agrees not to make any demand for, or exercise any right with

29

 

respect to, the registration of any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock, without the prior written consent of
the lead underwriter; and

          (iii) authorizes the Company to cause the transfer agent to decline to transfer
and/or to note stop transfer restrictions on the transfer books and records of the
Company with respect to any shares of Common Stock and any securities convertible
into or exercisable or exchangeable for Common Stock for which the undersigned is
the record holder and, in the case of any such shares or securities for which the
undersigned is the beneficial but not the record holder, agrees to cause the record
holder to cause the transfer agent to decline to transfer and/or to note stop
transfer restrictions on such books and records with respect to such shares or
securities.

Notwithstanding the foregoing, the restrictions set forth in clauses (i), (ii) and (iii)
above shall not apply to any transfer of Common Stock to a “Controlled Affiliate” or
pursuant to a “Qualified Transfer” (as each such term is defined in the Company’s Amended
and Restated Certificate of Incorporation); provided that prior to any such transfer the
transferee agrees in writing to be bound by the provisions of this Section 11.9.

The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into the agreements set forth in this Section, and that, upon request,
the undersigned will execute any additional documents necessary or desirable in connection
with the enforcement hereof. All authority herein conferred or agreed to be conferred shall
survive the death or incapacity of the undersigned and any obligations of the undersigned
shall be binding upon the heirs, personal representatives, successors, and assigns of the
undersigned.”

          11.10. Compliance with Laws. The Plan, the granting and vesting of Awards under the
Plan and the issuance and delivery of shares of Class A Common Stock and the payment of money under
the Plan or under Awards granted or awarded hereunder are subject to compliance with all applicable
federal and state laws, rules and regulations (including but not limited to state and federal
securities law and federal margin requirements) and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable
in connection therewith. Any securities delivered under the Plan shall be subject to such
restrictions, and the person acquiring such securities shall, if requested by the Company, provide
such assurances and representations to the Company as the Company may deem necessary or desirable
to assure compliance with all applicable legal requirements. To the extent permitted by applicable
law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent
necessary to conform to such laws, rules and regulations.

          11.11. Titles. Titles are provided herein for convenience only and are not to serve
as a basis for interpretation or construction of the Plan.

30

 

          11.12. Governing Law.
The Plan and any agreements hereunder shall be administered, interpreted and enforced under
the internal laws of the State of Delaware without regard to conflicts of laws thereof.

* * *

          I hereby certify that the foregoing Plan was duly adopted by the Board of Directors of Nextera
Enterprises, Inc. as of December 30, 1998, amended as of
April 30, 1999, May 5, 1999, amended and restated as of
April 29, 2000, amended as of October 20, 2000, May 30,
2001, April 23, 2002 and further amended effective June 6, 2006.

	 	 	 	 	 
	 

	 	/s/ Stanley E. Maron	 	 
	 

	 	 

Stanley E. Maron
	 	 
	 

	 	Secretary	 	 

31exv4w2

 

Exhibit 4.2

NON-QUALIFIED STOCK OPTION AGREEMENT

          This Non-Qualified Stock Option Agreement (“Agreement”), dated March 3, 2004, is made
by and between Nextera Enterprises, Inc., a Delaware corporation, hereinafter referred to as the
“Company,” and Ralph Finerman, a director of the Company, hereinafter referred to as “Optionee.”

          WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase shares of Class
A Common Stock of the Company;

          WHEREAS, the Company has determined that it would be to the advantage and best interest of the
Company and its stockholders to grant the Non-Qualified Option provided for herein to the Optionee.

          NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree
as follows:

ARTICLE 1

DEFINITIONS

          Whenever the following terms are used in this Agreement, they shall have the meaning specified
below unless the context clearly indicates to the contrary. The masculine pronoun shall include
the feminine and neuter, and the singular the plural, where the context so indicates.

     1.1 “Acquisition” means (1) a dissolution, liquidation or sale of all or substantially
all of the assets of the Company; (2) a merger or consolidation in which the Company is not the
surviving corporation; or (3) a reverse merger in which the Company is the surviving corporation
but the shares of the Company’s common stock outstanding immediately preceding the merger are
converted by virtue of the merger into other property, whether in the form of securities, cash or
otherwise.

     1.2 “Administrator” means the Board or the Committee responsible for conducting the
administration of this Agreement.

     1.3 “Applicable Laws” means the requirements relating to the administration of stock
option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, and
any stock exchange or quotation system on which the Class A Common Stock is listed or quoted.

     1.4 “Board” means the Board of Directors of the Company.

     1.5 “Change in Control” means a change in ownership or control of the Company effected
through any of the following transactions:

 

 

     (a) any person or related group of persons (other than the Company or a person that,
prior to such transaction, directly or indirectly controls, is controlled by, or is under
common control with, the Company) directly or indirectly acquires beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities pursuant to a tender or exchange offer made directly to the Company’s
stockholders which the Board does not recommend such stockholders to accept;

     (b) there is a change in the composition of the Board over a period of thirty-six (36)
consecutive months (or less) such that a majority of the Board members (rounded up to the
nearest whole number) ceases, by reason of one or more proxy contests for the election of
Board members, to be comprised of individuals who either (i) have been Board members
continuously since the beginning of such period or (ii) have been elected or nominated for
election as Board members during such period by at least a majority of the Board members
described in clause (i) who were still in office at the time such election or nomination was
approved by the Board;

     (c) the consummation of a merger or consolidation of the Company with any other
corporation (or other entity), other than a merger or consolidation which would result in
the voting securities of the 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 66-2/3% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger
or consolidation; provided, however, that a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person acquires more
than 25% of the combined voting power of the Company’s then outstanding securities shall not
constitute a Change in Control; or

     (d) the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially
all of the Company’s assets.

     1.6 “Code” means the Internal Revenue Code of 1986, as amended, or any successor
statute or statutes thereto. Reference to any particular Code section shall include any successor
section.

     1.7 “Committee” means a committee appointed by the Board whose function is to
administer this Agreement.

     1.8 “Class A Common Stock” means the Class A Common Stock of the Company, par value
$0.001 per share, and any equity security of the Company issued or authorized to be issued in the
future, but excluding any preferred stock and any warrants, options or other rights to purchase
Class A Common Stock.

     1.9 “Company” means Nextera Enterprises, Inc., a Delaware corporation.

2

 

     1.10 “Consultant” means any consultant or adviser if: (i) the consultant or adviser
renders bona fide services to the Company or any Parent or Subsidiary of the Company; (ii) the
services rendered by the consultant or adviser are not in connection with the offer or sale of
securities in a capital-raising transaction and do not directly or indirectly promote or maintain a
market for the Company’s securities; and (iii) the consultant or adviser is a natural person who
has contracted directly with the Company or any Parent or Subsidiary of the Company to render such
services.

     1.11 “Director” means a member of the Board.

     1.12 “Employee” means any person, including a Director, who is an employee (as defined
in accordance with Section 3401(c) of the Code) of the Company or any Parent or Subsidiary of the
Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the Company or between the
Company, its Parent, any Subsidiary, or any successor. Neither service as a Director nor payment
of a director’s fee by the Company shall be sufficient, by itself, to constitute “employment” by
the Company.

     1.13 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any
successor statute or statutes thereto. Reference to any particular Exchange Act section shall
include any successor section.

     1.14 “Expiration Date” means the tenth (10) anniversary of the Date of Grant.

     1.15 “Fair Market Value” means, as of a given date, (a) the average closing price of a
share of Class A Common Stock on the principal exchange on which shares of Class A Common Stock are
then trading, if any (or as reported on any composite index which includes such principal
exchange), on the ten most current trading days immediately prior to such date, or (b) if Class A
Common Stock is not traded on an exchange but is quoted on NASDAQ or a successor quotation system,
the average mean between the closing representative bid and asked prices for the Class A Common
Stock on the ten (10) most recent trading days immediately prior to such date as reported by NASDAQ
or such successor quotation system; or (c) if Class A Common Stock is not publicly traded on an
exchange and not quoted on NASDAQ or a successor quotation system, the Fair Market Value of a share
of Class A Common Stock as established by the Administrator acting in good faith. The Administrator
shall determine the Fair Market Value at least once each calendar quarter and such determination
shall apply until the Administrator has made another determination of Fair Market Value.

     1.16 “Option” means the stock options granted pursuant to this Agreement.

     1.17 “Parent” means any corporation, whether now or hereafter existing (other than the
Company), in an unbroken chain of corporations ending with the Company if each of the corporations
other than the last corporation in the unbroken chain owns stock possessing more than fifty percent
of the total combined voting power of all classes of stock in one of the other corporations in such
chain.

3

 

     1.18 “Securities Act” means the Securities Act of 1933, as amended, or any successor
statute or statutes thereto. Reference to any particular Securities Act section shall include any
successor section.

     1.19 “Service Provider” means an Employee, Director or Consultant.

     1.20 “Share” means a share of Class A Common Stock, as adjusted in accordance with
Section 4.3 below.

     1.21 “Subsidiary” means (a) any corporation in an unbroken chain of corporations
beginning with the Company if each of the corporations other than the last corporation in the
unbroken chain then owns stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain, (b) any partnership in which the
Company is a general partner, (c) any limited liability company in which the Company is a managing
member, or (d) any partnership or limited liability company in which the Company possesses a 50% or
greater interest in the total capital or total income of such partnership.

ARTICLE 2

GRANT OF OPTION

     2.1 Grant of Option. In consideration of the Optionee’s services to the Company and
for other good and valuable consideration, effective as of March 3, 2004 (the “Date of
Grant”), the Company irrevocably grants to the Optionee the option to purchase any part or all
of an aggregate of 50,000 shares of Class A Common Stock upon the terms and conditions set forth in
this Agreement.

     2.2 Purchase Price. The purchase price of the shares of Class A Common Stock covered
by the Option shall be $0.43 per share without commission or other charge.

ARTICLE 3

EXERCISE OF OPTION

     3.1 Exercisability.

     (a) One-fourth (1/4) of the Shares subject to the Option shall vest on each anniversary
of the date hereof commencing on March 3, 2005 through and including March 3, 2008, so that
all of the Shares shall be vested on March 3, 2008. This Option shall be exercisable
cumulatively according to the vesting schedule set forth in the preceding sentence. For
purposes of this Stock Option Agreement, Shares subject to this Option shall vest based on
Optionee’s continued status as a Service Provider. The Committee may, in its sole and
absolute discretion and subject to whatever terms and conditions it selects, accelerate the
period during which the Option vests; provided, however, that
immediately prior to a Change in Control, one hundred percent (100%)
of the Option shall automatically vest and be exercisable as to all
Shares subject to the Option.

     (b) No portion of the Option which is unexercisable at the termination of Optionee’s
status as a Service Provider shall thereafter become exercisable.

4

 

     (c) This Option may not be exercised for a fraction of a Share.

     (d) In the event of Optionee’s death, disability or other termination of the Optionee’s
status as a Service Provider, the exercisability of the Option is governed by Sections 3.9,
3.10 and 3.11 below.

     (e) In no event may this Option be exercised to any extent by anyone after the
Expiration Date.

     3.2 Method of Exercise. This Option shall be exercisable by written Notice (in the
form attached as Exhibit A). The Notice must state the number of Shares for which the
Option is being exercised, and such other representations and agreements with respect to such
shares of Class A Common Stock as may be required by the Company pursuant to this Stock Option
Agreement (including all attachments hereto). The Notice must be signed by the Optionee and shall
be delivered in person or by certified mail to the Secretary of the Company. The Notice must be
accompanied by payment of the Exercise Price, including payment of any applicable withholding tax.
This Option shall be deemed to be exercised upon receipt by the Company of such written Notice
accompanied by the Exercise Price and payment of any applicable withholding tax.

     3.3 Compliance With Laws. No Shares shall be issued pursuant to the exercise of an
Option unless such issuance and such exercise comply with all relevant provisions of law and the
requirements of any stock exchange upon which the Shares may then be listed. Assuming such
compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on
the date on which the Option is exercised with respect to such Shares.

     3.4 Optionee’s Representations. If the Shares purchasable pursuant to the exercise of
this Option have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), at the time this Option is exercised, Optionee shall, if required by the
Company, concurrently with the exercise of all or any portion of this Option, deliver to the
Company his or her Investment Representation Statement in the form attached hereto as Exhibit
B.

     3.5 [Intentionally Omitted]

     3.6 Method of Payment. Payment of the Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:

     (a) cash;

     (b) with the consent of the Administrator, by check;

     (c) with the consent of the Administrator, surrender of other shares of Class A Common
Stock of the Company which (A) in the case of Shares acquired from the Company, have been
owned by the Optionee for more than six (6) months on the date of surrender, and (B) have a
Fair Market Value on the date of surrender equal to the Exercise Price of the Shares as to
which the Option is being exercised;

5

 

     (d) with the consent of the Administrator, surrendered Shares issuable upon the
exercise of the Option having a Fair Market Value on the date of exercise equal to the
aggregate Exercise Price of the Option or exercised portion thereof;

     (e) with the consent of the Administrator, property of any kind which constitutes good
and valuable consideration; or

     (f) with the consent of the Administrator, delivery of a notice that the Optionee has
placed a market sell order with a broker with respect to Shares then issuable upon exercise
of the Option and that the broker has been directed to pay a sufficient portion of the net
proceeds of the sale to the Company in satisfaction of the aggregate Exercise Price;
provided, that payment of such proceeds is then made to the Company upon settlement of such
sale.

     3.7 Conditions to Issuance of Stock Certificates. The Company shall not be required to
issue or deliver any certificate or certificates for shares of stock purchased upon the exercise of
any Option or portion thereof prior to fulfillment of all of the following conditions:

     (a) The admission of such shares to listing on all stock exchanges on which such class
of stock is then listed;

     (b) The completion of any registration or other qualification of such shares under any
state or federal law, or under the rulings or regulations of the Securities and Exchange
Commission or any other governmental regulatory body which the Administrator shall, in its
absolute discretion, deem necessary or advisable;

     (c) The obtaining of any approval or other clearance from any state or federal
governmental agency which the Administrator shall, in its absolute discretion, determine to
be necessary or advisable;

     (d) The lapse of such reasonable period of time following the exercise of the Option as
the Administrator may establish from time to time for reasons of administrative convenience;
and

     (e) The receipt by the Company of full payment for such shares, including payment of
any applicable withholding tax.

     3.8 Rights as Stockholder. Optionee shall not be, nor have any of the rights or
privileges of, a shareholder of the Company in respect of any Shares purchasable upon the exercise
of any part of the Option unless and until certificates representing such shares shall have been
issued by the Company to Optionee.

     3.9 Restrictions on Exercise. If the issuance of Shares upon such exercise or if the
method of payment for such shares would constitute a violation of any applicable federal or state
securities or other law or regulation, then the Option may also not be exercised. The Company
may require Optionee to make any representation and warranty to the Company as may be required
by any applicable law or regulation before allowing the Option to be exercised.

6

 

     3.10 Termination of Relationship. If Optionee ceases to be a Service Provider (other
than by reason of the Optionee’s death or the total and permanent disability of the Optionee as
defined in Code Section 22(e)(3)), Optionee may exercise this Option (to the extent the Option was
vested at the date of such termination) for thirty (30) days after Optionee ceases to be a Service
Provider, but in no event later than the Expiration Date. To the extent that Optionee was not
vested in this Option at the date on which Optionee ceases to be a Service Provider, or if Optionee
does not exercise this Option within the time specified herein, the Option shall terminate.

     3.11 Disability of Optionee. If Optionee ceases to be a Service Provider as a result
of his or her total and permanent disability as defined in Code Section 22(e)(3), Optionee may
exercise the Option to the extent the Option was vested at the date on which Optionee ceases to be
a Service Provider, but only within twelve (12) months from such date (and in no event later than
the Expiration Date). To the extent that the Option is not vested at the date on which Optionee
ceases to be a Service Provider, or if Optionee does not exercise such Option within the time
specified herein, the Option shall terminate.

     3.12 Death of Optionee. If Optionee ceases to be a Service Provider as a result of
the death of Optionee, the vested portion of the Option may be exercised at any time within twelve
(12) months following the date of death (and in no event later than the Expiration Date) by
Optionee’s estate or by a person who acquires the right to exercise the Option by bequest or
inheritance. To the extent that the Option is not vested at the date of death, or if the Option is
not exercised within the time specified herein, the Option shall terminate.

ARTICLE 4

OTHER PROVISIONS

     4.1 Administration. The Administrator shall have the power to interpret this
Agreement and to adopt such rules for the administration, interpretation and application of this
Agreement as are consistent therewith and to interpret, amend or revoke any such rules;
provided that the rights or obligations of the Optionee of the Option granted
hereby are not affected adversely. All actions taken and all interpretations and determinations
made by the Administrator in good faith shall be final and binding upon the Optionee, the Company
and all other interested persons. No member of the Administrator shall be personally liable for
any action, determination or interpretation made in good faith with respect to the Option. In its
absolute discretion, the Board may at any time and from time to time exercise any and all rights
and duties of the Administrator under this Agreement.

     4.2 Option Not Transferable. Neither the Option nor any interest or right therein or
part thereof shall be liable for the debts, contracts or engagements of the Optionee or the
Optionee’s successors in interest or shall be subject to disposition by transfer, alienation,
anticipation, pledge, encumbrance, assignment or any other means whether such disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or
any other legal or equitable proceedings (including bankruptcy), and any attempted disposition
thereof shall be null and void and of no effect; provided, however, that this
Section 4.2 shall not prevent (a) transfers by will or by the applicable laws of descent and
distribution, (b) the

7

 

designation by the Optionee of a beneficiary to exercise the Optionee’s
Option (or any portion thereof) under this Agreement after the Optionee’s death, or (c) transfers
in accordance with such requirements as are prescribed by the Administrator and in accordance with
the Code and applicable regulations.

     4.3 Changes in Class A Common Stock or Assets of the Company, Acquisition or Liquidation
of the Company and Other Corporate Events.

     (a) In the event that the Administrator determines that any dividend or other
distribution (whether in the form of cash, Class A Common Stock, other securities, or other
property), recapitalization, reclassification, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination, repurchase,
liquidation, dissolution, or sale, transfer, exchange or other disposition of all or
substantially all of the assets of the Company, or exchange of Class A Common Stock or other
securities of the Company, issuance of warrants or other rights to purchase Class A Common
Stock or other securities of the Company, or other similar corporate transaction or event,
in the Administrator’s sole discretion, affects the Class A Common Stock such that an
adjustment is determined by the Administrator to be appropriate in order to prevent dilution
or enlargement of the benefits or potential benefits intended by the Company to be made
available with respect to the Option, then the Administrator shall, in such manner as it may
deem equitable, adjust any or all of:

     (i) the number and kind of shares of Class A Common Stock (or other securities
or property) subject to the Option; and

     (ii) the exercise price with respect to the Option.

     Any such adjustment made by the Administrator shall be final and binding upon the
Optionee, the Company and all other interested persons. Notwithstanding the foregoing, the
rights or obligations of the Optionee under the Option may not be affected adversely by any
such adjustment.

     (b) In the event of any transaction or event described in Section 4.3(a), the
Administrator, on such terms and conditions as it deems appropriate, either by the terms of
the Option or by action taken prior to the occurrence of such transaction or event and
either automatically or upon the Optionee’s request, is hereby authorized to take any one or
more of the following actions whenever the Administrator determines in good faith that such
action is appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended by the Company to be made available with respect to the Option
or to facilitate such transaction or event:

     (i) To provide for either the purchase of the Option for an amount of cash
equal to the amount that could have been obtained upon the exercise of the Option
had the Option been currently exercisable or payable or fully vested or the
replacement of the Option with other rights or property selected by the
Administrator in its sole discretion;

8

 

     (ii) To provide that the Option cannot vest, be exercised or become payable
after such event; provided, that for a specified period of time prior to such event,
the Option shall be exercisable as to all Shares covered thereby;

     (iii) To provide that the Option shall be exercisable as to all shares covered
thereby, notwithstanding anything to the contrary in the provisions of the Option;

     (iv) To provide that the Option be assumed by the successor or survivor
corporation or entity, or a parent or subsidiary thereof, or shall be substituted
for by similar options, rights or awards covering the stock of the successor or
survivor corporation or entity, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices; and

     (v) To make adjustments in the number and type of shares of Class A Common
Stock (or other securities or property) subject to the Option and/or in the terms
and conditions of (including the grant or exercise price), and the criteria included
in the Option.

     (c) If the Company undergoes an Acquisition, then any surviving corporation or entity
or acquiring corporation or entity, or affiliate of such corporation or entity, may assume
the Option or may substitute similar stock awards (including an award to acquire the same
consideration paid to the shareholders in the transaction described in this subsection
4.3(c)). In the event any surviving corporation or entity or acquiring corporation or
entity in an Acquisition, or affiliate of such corporation or entity, does not assume the
Option or does not substitute similar stock awards, then, provided that Optionee’s status as
a Service Provider has not terminated prior to such event, the vesting of the Option (and,
if applicable, the time during which the Option may be exercised) shall be accelerated and
made fully exercisable and all restrictions thereon shall lapse at least ten (10) days prior
to the closing of the Acquisition (and the Option shall terminate if not exercised prior to
the closing of such Acquisition).

     (d) The existence of this Option Agreement and the Option granted hereunder shall not
affect or restrict in any way the right or power of the Company or the shareholders of the
Company to make or authorize any adjustment, recapitalization, reorganization or other
change in the Company’s capital structure or its business, any merger or consolidation of
the Company, any issue of stock or of options, warrants or rights to purchase stock or of
bonds, debentures, preferred or prior preference stocks whose rights are superior to or
affect the Class A Common Stock or the rights thereof or which are convertible into or
exchangeable for Class A Common Stock, or the dissolution or liquidation of the Company, or
any sale or transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar character or otherwise.

     4.4 Shares to Be Reserved. The Company shall at all times during the term of the
Option reserve and keep available such number of shares of stock as will be sufficient to satisfy
the requirements of this Agreement.

9

 

     4.5 Notices. Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of its Secretary, and any notice to be given to the
Optionee shall be addressed to the Optionee at the address given beneath the Optionee’s signature
hereto. By a notice given pursuant to this Section 4.5, either party may hereafter designate a
different address for notices to be given to that party. Any notice which is required to be given
to the Optionee shall, if the Optionee is then deceased, be given to the Optionee’s personal
representative if such representative has previously informed the Company of such representative’s
status and address by written notice under this Section 4.5. Any notice shall be deemed duly given
when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with
postage prepaid) in a post office or branch post office regularly maintained by the United States
Postal Service.

     4.6 Titles. Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.

     4.7 Construction. This Agreement shall be administered, interpreted and enforced
under the laws of the State of Delaware without regard to conflicts of laws thereof.

     4.8 Conformity to Securities Laws. The Optionee acknowledges that this Agreement is
intended to conform to the extent necessary with all provisions of state law, the Securities Act
and the Exchange Act and any and all regulations and rules promulgated by state authorities, the
Securities and Exchange Commission thereunder. Notwithstanding anything herein to the contrary,
the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules
and regulations. To the extent permitted by applicable law, this Agreement shall be deemed amended
to the extent necessary to conform to such laws, rules and regulations.

     4.9 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns, and no other
person shall have any right, benefit or obligation under this Agreement as a third party
beneficiary or otherwise. In the event of any such assignment, the Company shall not be released
from any of its obligations or liabilities pursuant to this Agreement and any document executed in
connection herewith and shall remain primarily liable for all such obligations and liabilities.

     4.10 Entire Agreement; Amendments and Waivers. This Agreement constitutes the entire
agreement among the parties pertaining to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, whether oral or written, of the parties.
This Agreement may not be modified, amended, or terminated except by an instrument in writing,
signed by the Optionee or such other person as may be permitted to exercise the Option pursuant to
Section 4.2 and by a duly authorized representative of the Company. No amendment, supplement,
modification or waiver of this Agreement shall be binding unless executed in writing by the party
to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided.

     4.11 Multiple Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

10

 

[Signature page follows]

11

 

          This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original and all of which shall constitute one document.

	 	 	 	 	 	 	 
	 	 	NEXTERA ENTERPRISES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Stanley E. Maron	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	Stanley E. Maron	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Secretary	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Ralph Finerman	 	 
	 	 	     Ralph Finerman	 	 

12

 

EXHIBIT A

NEXTERA ENTERPRISES, INC.

NOTICE OF EXERCISE OF OPTION

Name:

 

Social Security Number:

 

I hereby give notice of the exercise of the following shares:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Type of	 	Date	 	 	Number of	 	 	 	 	 	Option	 	 	 	 	 	Payment
	Option	 	Granted	 	 	Shares	 	 	 	 	 	Price	 	 	 	 	 	Due
	 
	 	 	 	 	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	=	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

			
	Method of 
Payment:	 	____ Personal Check ____ Wire Transfer ____ Previously Owned Shares

In the case of an exercise using previously-owned shares, I hereby certify ownership of sufficient
number of shares of Class A Common Stock for a period of at least six months to effect such
exercise.

			
	Tax Withholding
 Method:	 	____ Personal Check ____ Wire Transfer

Address to be used for Stockholder Mailings:

 

 

 

Address where Certificate should be mailed:

 

 

 

	 	 	 
	 

	 	 
	Date

	 	Optionee’s Signature

 

 

INSIDER TRADING (Section 10b-5) REMINDERS Both the federal securities laws and Company policy
prohibit transactions in the Company’s Common Stock at a time when you may be in possession of
material information about the Company which has not been publicly disclosed. This also applies to
members of your household, anyone receiving information regarding the Company from you, as well as
all others whose transactions may be attributable to you. Material information, in short, is any
information which could affect the stock price. Either positive or negative information may be
material.

You may be subject to additional legal restrictions and requirements. Contact the Company’s legal
counsel with any questions.

2

 

EXHIBIT B

INVESTMENT REPRESENTATION STATEMENT

	 	 	 	 	 
	OPTIONEE

	 	:	 	 
	 
	 	 	 	 
	COMPANY

	 	:
	 	NEXTERA ENTERPRISES, INC.
	 
	 	 	 	 
	SECURITY

	 	:
	 	CLASS A COMMON STOCK
	 
	 	 	 	 
	AMOUNT

	 	:	 	 
	 
	 	 	 	 
	DATE

	 	:	 	 

In connection with the purchase of the above-listed Securities, the undersigned Optionee represents
to the Company the following:

     A. Optionee is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and knowledgeable decision
to acquire the Securities. Optionee is acquiring these Securities for investment for Optionee’s
own account only and not with a view to, or for resale in connection with, any “distribution”
thereof within the meaning of the Securities Act of 1933, as amended (the “Securities
Act”).

     B. Optionee acknowledges and understands that the Securities constitute “restricted
securities” under the Securities Act and have not been registered under the Securities Act in
reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the
bona fide nature of Optionee’s investment intent as expressed herein. In this connection, Optionee
understands that, in the view of the Securities and Exchange Commission, the statutory basis for
such exemption may be unavailable if Optionee’s representation was predicated solely upon a present
intention to hold these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the market price of the
Securities, or for a period of one year or any other fixed period in the future. Optionee further
understands that the Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available. Optionee further
acknowledges and understands that the Company is under no obligation to register the Securities.
Optionee understands that the certificate evidencing the Securities will be imprinted with a legend
which prohibits the transfer of the Securities unless they are registered or such registration is
not required in the opinion of counsel satisfactory to the Company and any other legend required
under applicable state securities laws.

     C. Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under
the Securities Act, which, in substance, permit limited public resale of “restricted securities”
acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701
at the time of the grant of the Option to the Optionee, the exercise will be exempt from
registration under the Securities Act. In the event the Company becomes subject

 

 

to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety
(90) days thereafter (or such longer period as any market stand-off agreement may require) the
Securities exempt under Rule 701 may be resold, subject to the satisfaction of certain of the
conditions specified by Rule 144, including: (1) the resale being made through a broker in an
unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is
defined under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the
availability of certain public information about the Company, (3) the amount of Securities being
sold during any three (3) month period not exceeding the limitations specified in Rule 144(e), and
(4) the timely filing of a Form 144, if applicable.

     D. In the event that the Company does not qualify under Rule 701 at the time of grant of the
Option, then the Securities may be resold in certain limited circumstances subject to the
provisions of Rule 144, which requires the resale to occur not less than one year after the later
of the date the Securities were sold by the Company or the date the Securities were sold by an
affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the
Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities less than
two (2) years, the satisfaction of the conditions set forth in clauses (1), (2), (3) and (4) of the
paragraph immediately above.

     E. Optionee further understands that in the event all of the applicable requirements of Rule
701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A,
or some other registration exemption will be required; and that, notwithstanding the fact that
Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has
expressed its opinion that persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden
of proof in establishing that an exemption from registration is available for such offers or sales,
and that such persons and their respective brokers who participate in such transactions do so at
their own risk. Optionee understands that no assurances can be given that any such other
registration exemption will be available in such event.

	 	 	 
	 

	 	Signature of Optionee:
	 
	 	 
	 

	 	 

Date: _______________________

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