Document:

exv4w8

Exhibit 4.8

THIRD
AMENDMENT TO FOURTH AMENDED AND RESTATED
 REGISTRATION RIGHTS AGREEMENT

     This Third Amendment to Fourth Amended and Restated Registration
Rights Agreement (this “Amendment”) is entered this 19th day of October 2009, by and among
BroadSoft, Inc., a Delaware corporation (the “Company”), the parties listed on Exhibit A
as “Series E-1 Investors” (the “Series E-1 Investors”), and the other parties listed on the
signature pages hereof (the “Investors”).

Recitals

     Whereas, in connection with the Company’s Series D Preferred Stock financing, the
Company, the Investors, and certain other parties have previously entered into that certain Fourth
Amended and Restated Registration Rights Agreement, dated as of June 26, 2007 (as amended on
November 25, 2008 and on December 23, 2008, the “Agreement”). Capitalized terms used herein
without definition shall have the meanings given to such terms in the Agreement.

     Whereas, the Company has entered into a certain Agreement and Plan of Merger and
Reorganization, dated as of October 6, 2009 (the “Merger Agreement”), with BroadSoft PacketSmart,
Inc., a Delaware corporation and wholly-owned subsidiary of the Company, Packet Island, Inc., a
Delaware corporation, the Series E-1 Investors and Jim Andelman as the Agent for the Series E-1
Investors, pursuant to which the Company is issuing shares of its Series E-1 Convertible Preferred
Stock (“Series E-1 Preferred”) to the Series E-1 Investors.

     Whereas, it is a condition to the consummation of the transactions contemplated by
the Merger Agreement that each Series E-1 Investor who will be receiving shares of Series E-1
Preferred become a party to the Agreement by executing this Amendment.

     Whereas, Section 2.3 of the Agreement provides that such agreement may be amended if
the Company agrees thereto and obtains the written consent of persons holding or having the right
to acquire in the aggregate a majority of the Registrable Securities then outstanding.

     Whereas, the Company, the Investors party hereto who hold or have the right to
acquire in the aggregate a majority of the Registrable Securities then outstanding, and the Series
E-1 Investors desire to amend the Agreement as set forth herein to cause the Series E-1 Investors
to become parties to the Agreement and to make the other amendments set forth herein.

Agreements

     Now, Therefore, for and in consideration of the mutual promises and covenants set
forth herein and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Amendment hereby agree as follows:

 

 

     1. Amendment to Definition of “Investors”. Pursuant to this Amendment, (a) the definition of
“Investors” is hereby amended to include the Series E-1 Investors, and (b) Exhibit A to the
Agreement is hereby supplemented to include the Series E-1 Investors listed on Exhibit A to this
Amendment.

     2. Amendment to Section 1.1(h). Pursuant to this Amendment, the definition of “Registrable
Securities” in Section 1.1(h) of the Registration Rights Agreement is hereby deleted in its
entirety and replaced with the following:

          (h) The term “Registrable Securities” means (i) the Investors’ Common Shares or any Common
Stock issued as a dividend or other distribution with respect to, in exchange for, or in
replacement of Investors’ Common Shares, (ii) shares of Common Stock issued upon conversion of the
Series B-1 Shares, Series C-1 Shares, Series D Shares, Series E Shares, and Series E-1 Shares,
(iii) any other shares of Common Stock acquired on or after the date hereof by any Investor, and
(iv) for all purposes of this Agreement other than Section 1.2, shares of Common Stock issued upon
exercise of the ORIX Warrant, and any Common stock issued as a dividend or other distribution with
respect to, in exchange for, or in replacement of, such shares of Common Stock; provided, however,
that any shares previously sold pursuant to a registered public offering or pursuant to an
exemption from the registration requirements of the 1933 Act under which the transferee does not
receive “restricted securities” shall cease to be Registrable Securities.

     3. Addition of Sections 1.1(t) and 1.1(u). Pursuant to this Amendment, the following
definitions are hereby added to Section 1.1:

          (t) The term “Series E-1 Preferred Stock” means the Company’s Series E-1 Convertible Preferred
Stock, $0.01 par value per share.

          (u) The term “Series E-1 Shares” means the shares of the Company’s Series E-1 Preferred Stock
issued pursuant to the Agreement and Plan of Merger and Reorganization, dated as of October 6,
2009, by and among the Company, BroadSoft PacketSmart, Inc., a Delaware corporation and
wholly-owned subsidiary of the Company, Packet Island, Inc., a Delaware corporation, the parties
listed on Exhibits A-1 and A-2 thereto (the “Series E-1 Investors”) and Jim Andelman as the Agent
for the Series E-1 Investors.

     4. Series E-1 Investors Made Parties. By virtue of each Series E-1 Investor’s execution and
delivery of this Amendment, each such Series E-1 Investor is hereby made a party to the Agreement.

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

     6. Effectiveness. This Amendment shall become effective upon the execution hereof by the
Company, persons holding or having the right to acquire in the aggregate at least a majority of the
aggregate of the Registrable Securities then outstanding, and the Series E-1 Investors.

2

 

     7. Governing Law. This Amendment shall be deemed a contract made under the laws of the State
of Delaware and, together with the rights and obligations of the parties hereunder, shall be
construed under and governed by the laws of such State.

     8. Continuing Effect. Other than as set forth in this Amendment, all of the terms and
conditions of the Registration Rights Agreement shall continue in full force and effect.

[Signature Pages Follow]

3

 

     In Witness Whereof, the parties have executed this Third Amendment to Fourth Amended
and Restated Registration Rights Agreement as of the day and year first above written.

	 	 	 	 	 
	COMPANY: 	BROADSOFT, INC.

 	 
	 	By:  	/s/ Mary Ellen Seravalli
 	 
	 	 	Name:  	Mary Ellen Seravalli 	 
	 	 	Title:  	Vice President, General Counsel, and Secretary 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Joseph Lin
 	 
	 	(Signature) 	 
	 	
Joseph Lin

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Paul Ping-Jen Lin
 	 
	 	(Signature) 	 
	 	
Paul Ping-Jen Lin

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Jean Lin Nguyen
 	 
	 	(Signature) 	 
	 	
Jean Lin Nguyen

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Jim Andelman
 	 
	 	(Signature)
 	 
	 	Rincon Venture Partners, L.P.

By: Rincon Venture Partners, LLC

Its: General Partner

Jim Andelman, Manager 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 

	 	/s/ John M. Davidson, Trustee
	 	 
	 

	 	 	 	 
	 

	 	(Signature)	 	 
	 
	 	 	 	 
	 

	 	Davidson Family Trust dated 7/9/87	 	 
	 

	 	(Print Name of Investor)	 	 
	 
	 	 	 	 
	 

	 	John M. Davidson, Trustee	 	 
	 

	 	(Name and Title of Authorized Representative)	 	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Henry Wong
 	 
	 	(Signature)
 	 
	 	Henry Wong

(Print Name of Investor)

self

(Name and Title of Authorized Representative) 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Karthick Sankarachary
 	 
	 	(Signature)
 	 
	 	Karthick Sankarachary

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Oliver Helleboid
 	 
	 	(Signature)
 	 
	 	Oliver Helleboid

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Praveen Kumar Prabhakaran
 	 
	 	(Signature)
 	 
	 	Praveen Kumar Prabhakaran

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Siva Panchanatham
 	 
	 	(Signature)
 	 
	 	Softsmith Infotech

(Print Name of Investor)

Siva Panchanatham, President

(Name and Title of Authorized Representative) 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ David S. Clark
 	 
	 	(Signature)
 	 
	 	David S. Clark

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Arul Iyyavoo
 	 
	 	(Signature)
 	 
	 	Arul Iyyavoo

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Sridar Kandaswamy
 	 
	 	(Signature)
 	 
	 	Sridar Kandaswamy

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	Garage Technology Ventures I, L.P.

By: Garage Technology Ventures

 	 
	 	/s/ William M. Reichert
 	 
	 	(Signature)
 	 
	 	William M. Reichert, Managing Director

(Name and Title of Authorized Representative) 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	Garage California Entrepreneurs 

Fund, L.P.

By: Garage Technology Ventures

 	 
	 	/s/ William M. Reichert
 	 
	 	(Signature)
 	 
	 	William M. Reichert, Managing Director

(Name and Title of Authorized Representative) 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	Startup Capital Ventures, L.P.

By: Startup Capital Ventures, LLC, General

Partner

 	 
	 	/s/ Timothy Dick
 	 
	 	(Signature)
 	 
	 	Timothy Dick, General Partner

(Name and Title of Authorized Representative) 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Praveen Kumar Prabhakaran
 	 
	 	(Signature)
 	 
	 	Praveen Kumar Prabhakaran

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

SERIES E-1 INVESTOR:

	 	 	 	 	 
	 	ANDREW ACZEL

 	 
	 	/s/ Andy Aczel
 	 
	 	(Signature)
 	 
	 	Andy Aczel

(Print Name of Investor) 	 
	 	 	 
	 	
 	 
	 	(Name and Title of Authorized Representative) 	 
	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

	 	 	 	 	 
	INVESTORS:  	Bessemer Venture Partners IV L.P.

By: Deer IV & Co. LLC, General Partner

 	 
	 	By:  	/s/ J. Edmund Colloton
 	 
	 	 	Name:  	J. Edmund Colloton 	 
	 	 	Title:  	Chief Operating Officer 	 
	 
	 	Bessec Ventures IV, L.P.

By: Deer IV & Co. LLC, General Partner

 	 
	 	By:  	/s/ J. Edmund Colloton
 	 
	 	 	Name:  	J. Edmund Colloton 	 
	 	 	Title:  	Chief Operating Officer 	 
	 
	 	Plum Bush, Inc.

 	 
	 	By:  	/s/ J. Edmund Colloton
 	 
	 	 	Name:  	J. Edmund Colloton 	 
	 	 	Title:  	Attorney-in-Fact 	 
	 
	 	Cove Ventures, LLC
 	 
	 	By:  	Cove Road Associates, LLC,
 	 
	 	Its:  	 Managing Member 	 
	 	 	 	 
	 	 	 
	 	By:  	                                              /s/ J. Edmund Colloton
 	 
	 	 	Name:  	J. Edmund Colloton 	 
	 	 	Title:  	Attorney-in-Fact 	 
	 
	 	 	 
	 	                                                   /s/ J. Edmund Colloton
 	 
	 	Robert Goodman 	 
	 	(By J. Edmund Colloton, Attorney-in-Fact) 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	Charles River Partnership IX, A Limited 

Partnership 

By: Charles River IX GP Limited Partnership, General
Partner

 	 
	 	By:  	/s/ Richard Burnes
 	 
	 	 	Title: General Partner 	 
	 	 	 	 
	 
	 	Charles River Partnership IX-A, A Limited

Partnership

By: Charles River IX GP Limited Partnership, General
Partner

 	 
	 	By:  	/s/ Richard Burnes
 	 
	 	 	Title: General Partner 	 
	 	 	 	 
	 
	 	Charles River IX-B LLC

By: Charles River Friends, Inc., Manager

 	 
	 	By:  	/s/ Richard Burnes
 	 
	 	 	Title: Officer 	 
	 	 	 	 
	 
	 	Charles River IX-C LLC

By: Charles River Friends, Inc., Manager

 	 
	 	By:  	/s/ Richard Burnes
 	 
	 	 	Title: Officer 	 
	 	 	 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	Columbia BroadSoft Investors, LLC

By: Columbia Capital, L.L.C.

Its: Managing Partner

 	 
	 	By:  	/s/ Donald A. Doering
 	 
	 	 	Name:  	Donald A. Doering 	 
	 	 	Title:  	Executive Vice President 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	RRE Ventures III-A, L.P.

 	 
	 	By:  	/s/ Andrew Zalasin
 	 
	 	 	Andrew Zalasin 	 
	 	 	General Partner 	 
	 
	 	RRE Ventures III, L.P.

 	 
	 	By:  	/s/ Andrew Zalasin
 	 
	 	 	Andrew Zalasin 	 
	 	 	General Partner 	 
	 
	 	RRE Ventures Fund III, L.P.

 	 
	 	By:  	/s/ Andrew Zalasin
 	 
	 	 	Andrew Zalasin 	 
	 	 	General Partner 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	Grotech Partners VI, L.P.

 	 
	 	By:  	Grotech Capital Group VI, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	                     /s/ Joseph R. Zell
 	 
	 	 	Joseph R. Zell 	 
	 	 	General Partner 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	Meritech Capital Partners III, L.P.

 	 
	 	By:  	Meritech Capital Associates III, L.L.C.,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	               Meritech Management Associates III,
 	 
	 	 	L.L.C., a managing member 	 
	 	 	 
	 	By:  	               /s/ Michael Gordon
 	 
	 	 	Michael Gordon, 	 
	 	 	a Managing Member 	 
	 
	 	Meritech Capital Affiliates III, L.P.

 	 
	 	By:  	Meritech Capital Associates III, L.L.C.,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	               Meritech Management Associates III,
 	 
	 	 	L.L.C., a managing member 	 
	 	 	 
	 	By:  	               /s/ Michael Gordon
 	 
	 	 	Michael Gordon, 	 
	 	 	a Managing Member 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

	 	 	 	 	 
	 	Comcast Interactive Capital, L.P.

By: Comcast CICG GP, LLC

Its: General Partner

By: Comcast Capital Corporation

Its: Manager

 	 
	 	By:  	/s/ Sandra W. Crowell
 	 
	 	 	Name:  	Sandra W. Crowell 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

[Signature Page to Third Amendment to

Fourth Amended and Restated Registration Rights Agreement]

 

 

EXHIBIT A

SERIES E-1 INVESTORS

Joseph Lin

Paul Lin

Jean Lin Nguyen

Rincon Venture Partners, L.P.

John Davidson

Henry Wong

Karthick Sankarachary

Olivier Helleboid

Praveen Kumar

Softsmith Infotech

David Clark

Arul Iyavoo

Sridhar Kandaswamy

Garage Technology Ventures I, L.P.

Garage California Entrepreneurs Fund, L.P.

Startup Capital Ventures, L.P.

John M. Davidson, Trustee, Davidson Family Trust Dated 7/9/87

Praveen Kumar Prabhakaran

Andrew Aczel

Exhibit A

Series E-1 Investorsexv10w1

Exhibit 10.1

BROADSOFT, INC.

1999 STOCK INCENTIVE PLAN, AS AMENDED

1. Establishment, Purpose and Types of Awards

     BroadSoft, Inc., a Delaware corporation (the “Company”), hereby establishes the
BROADSOFT, INC. 1999 STOCK INCENTIVE PLAN (the “Plan”). The purpose of the Plan is to promote the
long-term growth and profitability of the Company by (i) providing key people with incentives to
improve stockholder value and to contribute to the growth and financial success of the Company, and
(ii) enabling the Company to attract, retain and reward the best-available persons.

     The Plan permits the granting of stock options (including incentive stock options qualifying
under Code Section 422 and nonqualified stock options), stock appreciation rights, restricted or
unrestricted stock awards, phantom stock, performance awards, other stock-based awards, or any
combination of the foregoing.

2. Definitions

     Under this Plan, except where the context otherwise indicates, the following definitions
apply:

     (a) “Affiliate” shall mean any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not limited to, joint
ventures, limited liability companies, and partnerships). For this purpose, “control” shall mean
ownership of 50% or more of the total combined voting power or value of all classes of stock or
interests of the entity.

     (b) “Award” shall mean any stock option, stock appreciation right, stock award, phantom stock
award, performance award, or other stock-based award.

     (c) “Board” shall mean the Board of Directors of the Company.

     (d) “Change in Control” shall mean (i) the sale of all or substantially all of the assets of
the sale of more than 50% of the outstanding capital stock of the Company in a nonpublic sale,
(iii) the dissolution or liquidation of the Company, or (iv) any merger, share exchange,
consolidation or other reorganization or business combination of the Company if immediately after
such transaction either (A) persons who were directors of the Company immediately prior to such
transaction do not constitute at least a majority of the directors of the surviving entity, or (B)
persons who hold a majority of the voting capital stock of the surviving entity are not persons who
held a majority of the voting capital stock of the Company immediately prior to such transaction;
provided, however, that the term “Change in Control” shall not include any transaction pursuant to
which shares of capital stock of the Company are transferred or issued to any trust, charitable
organization, foundation, family partnership or other entity controlled directly or indirectly by,
or established for the benefit of their immediate family members

 

 

(including children, grandchildren, spouses, parents, and siblings, in each case to include
adoptive relations), or transferred to any such immediate family members.

     (e) “Code” shall mean the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder.

     (f) “Common Stock” shall mean shares of common stock of the Company, par value of ($0.01) per
share.

     (g) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     (h) “Fair Market Value” shall mean, with respect to a share of the Company’s Common Stock for
any purpose on a particular date, the value determined by the Administrator in good faith. However,
if the Common Stock is registered under Section 12(b) of the Exchange Act, “Fair Market Value”
shall mean, as applicable, (i) either the closing price or the average of the high and low sale
price on the relevant date, as determined in the Administrator’s discretion, quoted on the New York
Stock Exchange, the American Stock Exchange, or the Nasdaq National Market; (ii) the last sale
price on the relevant date quoted on the Nasdaq SmallCap Market; (iii) the average of the high bid
and low asked prices on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the
National Quotation Bureau, Inc. or a comparable service as determined in the Administrator’s
discretion; or (iv) if the Common Stock is not quoted by any of the above, the average of the
closing bid and asked prices on the relevant date furnished by a professional market maker for the
Common Stock, or by such other source, selected by the Administrator. If no public trading of the
Common Stock occurs on the relevant date, then Fair Market Value shall be determined as of the next
preceding date on which trading of the Common Stock does occur.

     (i) “Grant Agreement” shall mean a written document memorializing the terms and conditions of
an Award granted pursuant to the Plan and shall incorporate the terms of the Plan.

     (j) “Parent” shall mean a corporation, whether now or hereafter existing, within the meaning
of the definition of “parent corporation” provided in Code Section 424(e), or any successor
thereto.

     (k) “Subsidiary” and “Subsidiaries” shall mean only a corporation or corporations, whether now
or hereafter existing, within the meaning of the definition of “subsidiary corporation” provided in
Code Section 424(f), or any successor thereto.

3. Administration

     (a) Administration of the Plan. The Plan shall be administered by the Board or by such
committee or committees as may be appointed by the Board from time to time (the Board, committee or
committees hereinafter referred to as the “Administrator”).

     (b) Powers of the Administrator. The Administrator shall have all the powers vested in it by
the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to
grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish
programs for granting Awards.

 

 

     The Administrator shall have fall power and authority to take all other actions necessary to
carry out the purpose and intent of the Plan, including, but not limited to, the authority to: (i)
determine the eligible persons to whom, and the time or times at which Awards shall be granted;
(ii) determine the types of Awards to be granted; (iii) determine the number of shares to be
covered by or used for reference purposes for each Award; (iv) impose such terms, limitations,
restrictions and conditions upon any such Award as the Administrator shall deem appropriate; (v)
modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards
and substitute new Awards (provided however, that, except as provided in Section 7(d) of the Plan,
any modification that would materially adversely affect any outstanding Award shall not be made
without the consent of the holder); (vi) accelerate or otherwise change the time in which an Award
may be exercised or becomes payable and to waive or accelerate the lapse, in whole or in part, of
any restriction or condition with respect to such Award, including, but not limited to, any
restriction or condition with respect to the to the vesting or exercisability of an Award following
termination of any grantee’s employment or other relationship with the Company; and (vii) establish
objectives and conditions, if any, for earning Awards and determining whether Awards will be paid
after the end of a performance period.

     The Administrator shall have fall power and authority, in its sole and absolute discretion, to
administer and interpret the Plan and to adopt and interpret such rules, regulations, agreements,
guidelines and instruments for the administration of the Plan and for the conduct of its business
as the Administrator deems necessary or advisable.

     (c) Non-Uniform Determinations. The Administrator’s determinations under the Plan (including
without limitation, determinations of the persons to receive Awards, the form, amount and timing of
such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such
Awards) need not be uniform and may be made by the Administrator selectively among persons who
receive, or are eligible to receive, Awards under the Plan, whether or not such persons are
similarly situated.

     (d) Limited Liability. To the maximum extent permitted by law, no member of the Administrator
shall be liable for any action taken or decision made in good faith relating to the Plan or any
Award thereunder.

     (e) Indemnification. To the maximum extent permitted by law and by the Company’s charter and
by-laws, the members of the Administrator shall be indemnified by the Company in respect of all
their activities under the Plan.

     (f) Effect of Administrator’s Decision. All actions taken and decisions and determinations
made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it
hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and
binding on all parties concerned, including the Company, its stockholders, any participants in the
Plan and any other employee, consultant or director of the Company, and their respective successors
in interest.

 

 

4. Shares Available for the Plan; Maximum Awards

     Subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock
that may be issued with respect to Awards granted under the Plan shall not exceed an aggregate of
27,715,756 shares of Common Stock. The Company shall reserve such number of shares for Awards under
the Plan, subject to adjustments as provided in Section 7(d) of the Plan. If any Award, or portion
of an Award, under the Plan expires or terminates unexercised, becomes unexercisable or is
forfeited or otherwise terminated, surrendered or canceled as to any shares, if any shares of
Common Stock are surrendered to the Company in connection with any Award (whether or not such
surrendered shares were acquired pursuant to any Award) or if any shares of Common Stock are
repurchased by the Company, including pursuant to Grant Agreements between the Company and
recipients of Awards which permit the Company to repurchase such shares upon termination of a
recipient’s services to the Company, the shares subject to such Award and the surrendered or
repurchased shares shall thereafter be available for further Awards under the Plan; provided,
however, that any such shares that are surrendered to the Company in connection with any Award or
that are otherwise forfeited after issuance shall not be available for purchase pursuant to
incentive stock options intended to qualify under Code Section 422, unless the stockholders of the
Company approve the re-issuance of such cancelled, forfeited or repurchased shares as incentive
stock options in accordance with the stockholder approval requirements applicable under Code
Section 422.

     Subject to adjustments as provided in Section 7(d) of the Plan, the maximum number of shares
of Common Stock subject to Awards of any combination that may be granted during any one fiscal year
of the Company to any one individual under this Plan shall be limited to 500,000. Such per
individual limit shall not be adjusted to effect a restoration of shares of Common Stock with
respect to which the related Award is terminated, surrendered or canceled.

5. Participation

     Participation in the Plan shall be open to all employees, officers, directors, and consultants
of the Company, or of any Affiliate of the Company, as may be selected by the Administrator from
time to time.

6. Awards

     The Administrator, in its sole discretion, establishes the terms of all Awards granted under
the Plan. Awards may be granted individually or in tandem with other types of Awards. All Awards
are subject to the terms and conditions provided in the Grant Agreement.

     (a) Stock Options. The Administrator may from time to time grant to eligible participants
Awards of incentive stock options as that term is defined in Code Section 422 or nonqualified stock
options; provided, however, that Awards of incentive stock options shall be limited to employees of
the Company or of any Parent or Subsidiary of the Company. Options intended to qualify as incentive
stock options under Code Section 422 must have an exercise price at least equal to Fair Market
Value on the date of grant, but nonqualified stock options, may be granted with an exercise price
less than Fair Market Value. No stock option shall be an

 

 

incentive stock option unless so designated by the Administrator at the time of grant or in
the Grant Agreement evidencing such stock option.

     (b) Stock Appreciation Rights. The Administrator may from time to time grant to eligible
participants Awards of Stock Appreciation Rights (“SAR”). An SAR entitles the grantee to receive,
subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value
equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one
share of Common Stock over (B) the base price per share specified in the Grant Agreement, times
(ii) the number of shares specified by the SAR, or portion thereof, which is exercised. Payment by
the Company of the amount receivable upon any exercise of an SAR may be made by the delivery of
Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole
discretion of the Administrator. If upon settlement of the exercise of an SAR a grantee is to
receive a portion of such payment in shares of Common Stock, the number of shares shall be
determined by dividing such portion by the Fair Market Value of a share of Common Stock on the
exercise date. No fractional shares shall be used for such payment and the Administrator shall
determine whether cash shall be given in lieu of such fractional shares or whether such fractional
shares shall be eliminated.

     (c) Stock Awards. The Administrator may from time to time grant restricted or unrestricted
stock Awards to eligible participants in such amounts, on such terms and conditions, and for such
consideration, including no consideration or such minimum consideration as may be required by law,
as it shall determine. A stock Award may be paid in Common Stock, in cash, or in a combination of
Common Stock and cash, as determined in the sole discretion of the Administrator.

     (d) Phantom Stock. The Administrator may from time to time grant Awards to eligible
participants denominated in stock-equivalent units (“phantom stock”) in such amounts and on such
terms and conditions as it shall determine. Phantom stock units granted to a participant shall be
credited to a bookkeeping reserve account solely for accounting purposes and shall not require a
segregation of any of the Company’s assets. An Award of phantom stock may be settled in Common
Stock, in cash, or in a combination of Common Stock and cash, as determined in the sole discretion
of the Administrator. Except as otherwise provided in the applicable Grant Agreement, the grantee
shall not have the rights of a stockholder with respect to any shares of Common Stock represented
by a phantom stock unit solely as a result of the grant of a phantom stock unit to the grantee.

     (e) Performance Awards. The Administrator may, in its discretion, grant performance awards
which become payable on account of attainment of one or more performance goals established by the
Administrator. Performance awards may be paid by the delivery of Common Stock or cash, or any
combination of Common Stock and cash, as determined in the sole discretion of the Administrator.
Performance goals established by the Administrator may be based on the Company’s or an Affiliate’s
operating income or one or more other business criteria selected by the Administrator that apply to
an individual or group of individuals, a business unit, or the Company or an Affiliate as a whole,
over such performance period as the Administrator may designate.

 

 

     (f) Other Stock-Based Awards. The Administrator may from time to time grant other stock-based
awards to eligible participants in such amounts, on such terms and conditions, and for such
consideration, including no consideration or such minimum consideration as may be required by law,
as it shall determine. Other stock-based awards may be denominated in cash, in Common Stock or
other securities, in stock-equivalent units, in stock appreciation units, in securities or
debentures convertible into Common Stock, or in any combination of the foregoing and may be paid in
Common Stock or other securities, in cash, or in a combination of Common Stock or other securities
and cash, all as determined in the sole discretion of the Administrator.

7. Miscellaneous

     (a) Withholding of Taxes. Grantees and holders of Awards shall pay to the Company or its
Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes required
to be withheld in respect of Awards under the Plan no later than the date of the event creating the
tax liability. The Company or its Affiliate may, to the extent permitted by law, deduct any such
tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award. In
the event that payment to the Company or its Affiliate of such tax obligations is made in shares of
Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such
purposes.

     (b) Loans. The Company or its Affiliate may make or guarantee loans to grantees to assist
grantees in exercising Awards and satisfying any withholding tax obligations.

     (c) Transferability. Except as otherwise determined by the Administrator, and in any event in
the case of an incentive stock option or a stock appreciation right granted with respect to an
incentive stock option, no Award granted under the Plan shall be transferable by a grantee
otherwise than by will or the laws of descent and distribution. Unless otherwise determined by the
Administrator in accord with the provisions of the immediately preceding sentence, an Award may be
exercised during the lifetime of the grantee, only by the grantee or, during the period the grantee
is under a legal disability, by the grantee’s guardian or, legal representative.

     (d) Adjustments; Business Combinations. In the event of changes in the Common Stock of the
Company by reason of any stock dividend, spin-off, split-up, recapitalization, merger,
consolidation, business combination or exchange of shares and the like, the Administrator shall, in
its discretion, make appropriate adjustments to the maximum number and kind of shares reserved for
issuance or with respect to which Awards may be granted under the Plan as provided in Section 4 of
the Plan and to the number, kind and price of shares covered by outstanding Awards, and shall, in
its discretion and without the consent of holders of Awards, make any other adjustments in
outstanding Awards, including but not limited to reducing the number of shares subject to Awards or
providing or mandating alternative settlement methods such as settlement of the Awards in cash or
in shares of Common Stock or other securities of the Company or of any other entity, or in any
other matters which relate to Awards as the Administrator shall, in its sole discretion, determine
to be necessary or appropriate.

     Notwithstanding anything in the Plan to the contrary and without the consent of holders of
Awards, the Administrator, in its sole discretion, may make any modifications to any Awards,

 

 

including but not limited to cancellation, forfeiture, surrender or other termination of the
Awards in whole or in part regardless of the vested status of the Award, in order to facilitate any
business combination that is authorized by the Board to comply with requirements for treatment as a
pooling of interests transaction for accounting purposes under generally accepted accounting
principles.

     The Administrator is authorized to make, in its discretion and without the consent of holders
of Awards, adjustments in the terms and conditions of, and the criteria included in, Awards in
recognition of unusual or nonrecurring events affecting the Company, or the financial statements of
the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting
principles, whenever the Administrator determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan.

     (e) Substitution of Awards in Mergers and Acquisitions. Awards may be granted under the Plan
from time to time in substitution for Awards held by employees, officers, consultants or directors
of entities who become or are about to become employees, officers, consultants or directors of the
Company or an Affiliate as the result of a merger or consolidation of the employing entity with the
Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets or stock
of the employing entity. The terms and conditions of any substitute Awards so granted may vary from
the terms and conditions set forth herein to the extent that the Administrator deems appropriate at
the time of grant to conform the substitute Awards to the provisions of the awards for which they
are substituted.

     (f) Stockholders’ Agreement; Stock Restriction Agreement. As a condition precedent to the
grant of any Award under the Plan, the exercise pursuant to such an Award, or to the delivery of
certificates for shares issued pursuant to any Award, the Administrator shall require the grantee
or the grantee’s successor or permitted transferee, as the case may be, to become a party to a
Stockholders’ Agreement of the Company and, if appropriate, a Stock Restriction Agreement in such
form(s) as the Administrator may determine from time to time.

     (g) Termination, Amendment and Modification of the Plan. The Board may terminate, amend or
modify the Plan or any portion thereof at any time; provided, however, that the members of the
Board appointed by the Holders of the Series A Preferred Stock must consent to such termination,
amendment or modification.

     (h) Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant Agreement
thereunder shall confer any right on an individual to continue in the service of the Company or
shall interfere in any way with the right of the Company to terminate such service at any time with
or without cause or notice.

     (i) Compliance with Securities Laws; Listing and Registration. The Company may require that a
grantee, as a condition to exercise of an Award, and as a condition to the delivery of any share
certificate, provide to the Company, at the time of each such exercise and each such delivery, a
written representation that the shares of Common Stock being acquired shall be acquired by the
grantee solely for investment and will not be sold or transferred without registration or the
availability of an exemption from registration under the Securities Act and

 

 

applicable state securities laws. The stock certificates for any shares of Common Stock issued
pursuant to this Plan may bear a legend restricting transferability of the shares of Common Stock
unless such shares are registered or an exemption from registration is available under the
Securities Act and applicable state securities laws.

     (j) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company and a
grantee or any other person. To the extent that any grantee or other person acquires a right to
receive payments from the Company pursuant to an Award, such right shall be no greater than the
right of any unsecured general creditor of the Company.

     (k) Governing Law. The validity, construction and effect of the Plan, of Grant Agreements
entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made
by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all
persons having or claiming to have any interest therein or thereunder, shall be determined
exclusively in accordance with applicable federal laws and the laws of the State Delaware, without
regard to its conflict of laws principles.

     (l) Effective Date; Termination Date. The Plan is effective as of the date on which the Plan
is adopted by the Board, subject to approval of the stockholders within twelve months before or
after such date. No Award shall be granted under the Plan after the close of business on the day
immediately preceding the tenth anniversary of the effective date of the Plan. Subject to other
applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the
Plan shall remain in effect until such Awards have been satisfied or terminated in accordance with
the Plan and the terms of such Awards.

Date Approved by the Board: 7/01/1999

Date Approved by the Stockholders: 7/01/1999

First Amendment

Date Approved by the Board: 7/30/2001

Date Approved by the Stockholders: 7/30/2001

Second Amendment

Date Approved by the Board: 12/20/2001

Date Approved by the Stockholders: 12/20/2001

Third Amendment

Date Approved by the Board: 12/04/2003

Date Approved by the Stockholders: 12/17/2003

Fourth Amendment

Date Approved by the Board: 12/09/2004

Date Approved by the Stockholders: 12/14/2004

 

 

Fifth Amendment

Date Approved by the Board: 12/27/2005

Date Approved by the Stockholders: 1/10/2006

Sixth Amendment

Date Approved by the Board: 1/31/2007

Date Approved by the Stockholders: 1/31/2007

Seventh Amendment

Date Approved by the Board: 6/25/2007

Date Approved by the Stockholders: 6/25/2007

Eighth Amendment

Date Approved by the Board: 2/27/2008

Date Approved by the Stockholders: 2/27/2008

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