Document:

exv10w19

 

Exhibit 10.19

Approved by DigitalGlobe, Inc. Board on June 14, 2007

Approved by Stockholders June 21, 2007

DIGITALGLOBE, INC.

2007 EMPLOYEE STOCK OPTION PLAN

 

Plan Document

 

 

 

Approved by DigitalGlobe, Inc. Board on June 14, 2007
Approved by Stockholders June 21, 2007

DIGITALGLOBE, INC.

2007 EMPLOYEE STOCK OPTION PLAN

 

Plan Document

 

1. Establishment, Purpose, and Types of Awards

     DigitalGlobe (the “Company”) hereby establishes this “2007 Employee Stock Option Plan”
(hereinafter referred to as the “Plan”), in order to provide equity-based incentives and awards to
select employees, directors, consultants, and advisors of the Company and its Affiliates. The Plan
permits the granting of the following types of awards (“Awards”), Options (Section 6), Stock
Appreciation Rights (Section 7), and Restricted Shares, Restricted Share Units and Unrestricted
Shares (Section 8). To the extent required by Applicable Law, security holders will be provided
with Company financial statements at least annually.

     Except as provided in an Award Agreement, the Plan shall not affect any stock options,
equity-based compensation, or other benefits that the Company or its Affiliates may have provided,
or may separately provide in the future pursuant to any agreement, plan, or program that is
independent of this Plan.

2. Defined Terms

     Terms in the Plan that begin with an initial capital letter have the defined meaning set forth
in Appendix A, unless defined elsewhere in this Plan or the context of their use clearly indicates
a different meaning.

3. Shares Subject to the Plan

     Subject to the provisions of Section 11 of the Plan, the maximum number of Shares that the
Company may issue for all Awards is 25,000,000 Shares (which shall be adjusted upward by 2% on each
anniversary of the effective date of the Plan during the term of the Plan). Shares that are
subject to an Award that for any reason expires, is forfeited, is cancelled, or becomes
unexercisable, and Shares that are for any other reason not paid or delivered under this Plan shall
again, except to the extent prohibited by Applicable Law, be available for subsequent Awards under
the Plan. In addition, the Committee may make future Awards with respect to Shares that the
Company retains from otherwise delivering pursuant to an Award under this Plan either (i) as
payment of the exercise price of an Award, or (ii) in order to satisfy the withholding or
employment taxes due upon grant, exercise, vesting or distribution of an Award. Notwithstanding
the foregoing, but subject to adjustments pursuant to Section 11 below, the number of Shares that
are available for ISO Awards shall be determined, to the extent required under applicable tax laws,
by reducing the number of Shares designated in the first sentence of this paragraph by the number
of Shares granted pursuant to Awards (whether or not Shares are issued pursuant to such Awards),
provided that any Shares that are either issued or purchased under the Plan and forfeited back to
the Plan, or surrendered in payment of the Exercise Price for an Award shall be available for
issuance pursuant to future ISO Awards.

 

 

4. Administration

     (a) General. The Committee shall administer the Plan in accordance with its terms, provided
that the Board may act in lieu of the Committee on any matter. The Committee shall hold meetings
at such times and places as it may determine and shall make such rules and regulations for the
conduct of its business as it deems advisable. In the absence of a duly appointed Committee, the
Board shall function as the Committee for all purposes of the Plan.

     (b) Committee Composition. The Board shall appoint the members of the Committee. If and to
the extent permitted by Applicable Law, the Committee may authorize one or more Reporting Persons
(or other officers) to make Awards to Eligible Persons who are not Reporting Persons (or other
officers whom the Committee has specifically authorized to make Awards). The Board may at any time
appoint additional members to the Committee, remove and replace members of the Committee with or
without cause, and fill vacancies on the Committee.

     (c) Powers of the Committee. Subject to the provisions of the Plan, the Committee shall have
the authority, in its sole discretion:

     (i) to grant Awards;

     (ii) to determine Eligible Persons to whom Awards shall be granted from time to time
and the number of Shares, to be covered by each Award;

     (iii) to determine, from time to time, the Fair Value of Shares;

     (iv) to determine, and to set forth in Award Agreements, the terms and conditions of
all Awards, including any applicable exercise or purchase price, the installments and
conditions under which an Award shall become vested (which may be based on performance),
terminated, expired, cancelled, or replaced, and the circumstances for vesting acceleration
or waiver of forfeiture restrictions, and other restrictions and limitations;

     (v) to approve the forms of Award Agreements and all other documents, notices and
certificates in connection therewith which need not be identical either as to type of Award
or among Participants (The initial form of Award Agreement is set forth in Exhibit “1.”
Modification to the Exhibits shall not constitute an amendment to the Plan);

     (vi) to construe and interpret the terms of the Plan and any Award Agreement, to
determine the meaning of their terms, and to prescribe, amend, and rescind rules and
procedures relating to the Plan and its administration;

     (vii) in order to fulfill the purposes of the Plan and without amending the Plan, to
modify, to cancel, or to waive the Company’s rights with respect to any Awards, to adjust or
to modify Award Agreements for changes in Applicable Law, and to recognize differences in
foreign law, tax policies, or customs; and

     (viii) to make all other interpretations and to take all other actions that the
Committee may consider necessary or advisable to administer the Plan or to effectuate its
purposes.

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     Subject to Applicable Law and the restrictions set forth in the Plan, the Committee may
delegate administrative functions to individuals who are Reporting Persons, officers, or Employees
of the Company or its Affiliates.

     Notwithstanding any provision to the contrary in the Plan, the Committee shall have the
discretion to grant options under the Plan that, to the extent so designated in the applicable
Award Agreement, shall be treated as if such options were granted under the Earthwatch Incorporated
1999 Equity Incentive Plan, as in effect from time to time (a copy of the Equity Incentive Plan in
effect on April 1, 2007 is attached as Exhibit “2”), instead of the Plan.

     (d) Deference to Committee Determinations. The Committee shall have the discretion to
interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion it deems to
be appropriate in its sole discretion, and to make any findings of fact needed in the
administration of the Plan or Award Agreements. The Committee’s prior exercise of its
discretionary authority shall not obligate it to thereafter exercise its authority in a like
fashion. The Committee’s interpretation and construction of any provision of the Plan, or of any
Award or Award Agreement, shall be final, binding, and conclusive. The validity of any such
interpretation, construction, decision or finding of fact shall not be given de novo review if
challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly made
in bad faith or materially affected by fraud.

     (e) No Liability; Indemnification. Neither the Board nor any Committee member, nor any Person
acting at the direction of the Board or the Committee, shall be liable for any act, omission,
interpretation, construction or determination made in good faith with respect to the Plan, any
Award or any Award Agreement. The Company and its Affiliates shall pay or reimburse any member of
the Committee, as well as any Director, Employee, or Consultant who takes action on behalf of the
Plan, for all expenses incurred with respect to the Plan, and to the full extent allowable under
Applicable Law shall indemnify each and every one of them for any claims, liabilities, and costs
(including reasonable attorney’s fees) arising out of their good faith performance of duties on
behalf of the Plan.

5. Eligibility

     (a) General Rule. Subject to the express provisions of the Plan, the Committee shall
determine from the class of Eligible Persons those individuals to whom Awards under the Plan may be
granted, the number of Shares subject to each Award, the price (if any) to be paid for the Shares
or the Award. The Committee may grant ISOs only to Employees (including officers who are
Employees) of the Company or any Affiliate that is a “parent corporation” or “subsidiary
corporation” within the meaning of Section 424 of the Code, and may grant all other Awards to any
Eligible Person. A Participant who has been granted an Award may be granted an additional Award or
Awards if the Committee shall so determine, if such person is otherwise an Eligible Person and if
otherwise in accordance with the terms of the Plan.

     (b) Documentation of Awards. Each Award shall be evidenced by an Award Agreement signed by
the Company and, if required by the Committee, by the Participant. The Award Agreement shall set
forth the material terms and conditions of the Award established by the Committee, and each Award
shall be subject to the terms and conditions set forth in this Plan unless otherwise specifically
provided in an Award Agreement, as permitted by this Plan.

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     (c) Limits on Awards. During the term of the Plan, no Participant may receive Options or
other Awards that relate to more than 20% of the total number of Shares reserved for Awards
pursuant to Section 3 above, as adjusted pursuant to Section 11 below.

     (d) Replacement Awards. Subject to Applicable Laws (including any associated Shareholder
approval requirements), the Committee may, in its sole discretion and upon such terms as it deems
appropriate, require as a condition of the grant of an Award to a Participant that the Participant
surrender for cancellation some or all of the Awards that have previously been granted to the
Participant under this Plan or otherwise. An Award that is conditioned upon such surrender may or
may not be the same type of Award, may cover the same (or a lesser or greater) number of Shares as
such surrendered Award, may have other terms that are determined without regard to the terms or
conditions of such surrendered Award, and may contain any other terms that the Committee deems
appropriate. In the case of Options, these other terms may not involve an Exercise Price that is
lower than the exercise price of the surrendered Option unless the Company’s shareholders approve
the grant itself or the program under which the grant is made pursuant to the Plan.

6. Option Awards

     (a) Types; Documentation. Subject to Section 5(a), the Committee may in its discretion grant
Options pursuant to Award Agreements that are delivered to Participants. Each Option shall be
designated in the Award Agreement as an ISO or a Non-ISO, and the same Award Agreement may grant
both types of Options. At the sole discretion of the Committee, any Option may be exercisable, in
whole or in part, immediately upon the grant thereof, or only after the occurrence of a specified
event, or only in installments, which installments may vary. Options granted under the Plan may
contain such terms and provisions not inconsistent with the Plan that the Committee shall deem
advisable in its sole and absolute discretion.

     (b) ISO $100,000 Limitation. To the extent that the aggregate Fair Value of Shares with
respect to which Options designated as ISOs first become exercisable by a Participant in any
calendar year (under this Plan and any other plan of the Company or any Affiliate) exceeds
$100,000, such excess Options shall be treated as Non-ISOs. For purposes of determining whether
the $100,000 limit is exceeded, the Fair Value of the Shares subject to an ISO shall be determined
as of the Grant Date. In reducing the number of Options treated as ISOs to meet the $100,000
limit, the most recently granted Options shall be reduced first. In the event that Section 422 of
the Code is amended to alter the limitation set forth therein, the limitation of this Section 6(b)
shall be automatically adjusted accordingly.

     (c) Term of Options. Each Award Agreement shall specify a term at the end of which the Option
automatically expires, subject to earlier termination provisions contained in Section 6(h) hereof;
provided, that, the term of any Option may not exceed ten years from the Grant Date. In the case
of an ISO granted to an Employee who is a Ten Percent Holder on the Grant Date, the term of the ISO
shall not exceed five years from the Grant Date.

     (d) Exercise Price. The exercise price of an Option shall be determined by the Committee in
its sole discretion and shall be set forth in the Award Agreement, provided that —

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	 	(i)	 	the per Share exercise price shall not be less than the Fair
Value per Share on the Grant Date, and
	 
	 	(ii)	 	the per Share exercise price shall not be less than 110% of the
Fair Value per Share on the Grant Date for any Options granted to (a) an
Employee who is a Ten Percent Holder on the Grant Date or (b) any person who
owns securities possessing more than 10% of the total combined voting power (as
defined in Section 194.5 of the California Corporations Code) of all classes of
securities of the Company or its parent or subsidiaries possessing voting
power.

     (e) Exercise of Option. The times, circumstances and conditions under which an Option shall
be exercisable shall be determined by the Committee in its sole discretion and set forth in the
Award Agreement. The Committee shall have the discretion to determine whether and to what extent
the vesting of Options shall be tolled during any unpaid leave of absence; provided, however, that
in the absence of such determination, vesting of Options shall be tolled during any such leave
approved by the Company.

     (f) Methods of Exercise. Prior to its expiration pursuant to the terms of the applicable
Award Agreement, and subject to the times, circumstances and conditions for exercise contained in
the applicable Award Agreement, each Option may be exercised, in whole or in part (provided that
the Company shall not be required to issue fractional shares), by delivery of written notice of
exercise to the secretary of the Company (in the form approved by the Committee) accompanied by the
full exercise price of the Shares being purchased. In the case of an ISO, the Committee shall
determine the acceptable methods of payment on the Grant Date and it shall be included in the
applicable Award Agreement (The initial form of exercise is attached as Exhibit “3”). The methods
of payment that the Committee may in its discretion accept or commit to accept in an Award
Agreement include:

     (i) cash or check payable to the Company (in U.S. dollars);

     (ii) other Shares that (A) are owned by the Participant who is purchasing Shares
pursuant to an Option, (B) have a Fair Value on the date of surrender equal to the aggregate
exercise price of the Shares as to which the Option is being exercised, (C) were not
acquired by such Participant pursuant to the exercise of an Option, unless such Shares have
been owned by such Participant for at least six months or such other period as the Committee
may determine, (D) are all, at the time of such surrender, free and clear of any and all
claims, pledges, liens and encumbrances, or any restrictions which would in any manner
restrict the transfer of such Shares to or by the Company (other than such restrictions as
may have existed prior to an issuance of such Shares by the Company to such Participant),
and (E) are duly endorsed for transfer to the Company;

     (iii) a cashless exercise program that the Committee may approve, from time to time,
pursuant to which a Participant may concurrently provide irrevocable instructions (A) to
such Participant’s broker or dealer to effect the immediate sale of the purchased Shares and
remit to the Company, out of the sale proceeds available on the settlement date, sufficient
funds to cover the exercise price of the Option plus all applicable taxes required to be
withheld by the Company by reason of such exercise, and (B) to the Company to deliver

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the certificates for the purchased Shares directly to such broker or dealer in order to
complete the sale; or

     (iv) any combination of the foregoing methods of payment.

     The Company shall not be required to deliver Shares pursuant to the exercise of an Option
until payment of the full exercise price therefore is received by the Company.

     (g) Vesting. Unless otherwise provided in an Award Agreement, 1/4 (25%) of the Options
granted pursuant to an Award Agreement shall vest on the first anniversary of the date of grant and
1/36th of the remaining 75% shall vest thereafter on each of the first 36 monthly anniversaries of
the date of grant, subject to the Participant remaining in Continuous Service on each such vesting
date. The Committee may, in its sole discretion, waive any vesting provisions contained in an
Award Agreement, but any such waiver must be in writing.

     (h) Termination of Continuous Service. The Committee may establish and set forth in the
applicable Award Agreement the terms and conditions on which an Option shall remain exercisable, if
at all, following termination of a Participant’s Continuous Service. The Committee may waive or
modify these provisions at any time. To the extent that a Participant is not entitled to exercise
an Option at the date of his or her termination of Continuous Service, or if the Participant (or
other person entitled to exercise the Option) does not exercise the Option to the extent so
entitled within the time specified in the Award Agreement or below (as applicable), the Option
shall terminate and the Shares underlying the unexercised portion of the Option shall revert to the
Plan and become available for future Awards. In no event may any Option be exercised after the
expiration of the Option term as set forth in the Award Agreement.

     The following provisions shall apply to the extent an Award Agreement does not specify the
terms and conditions upon which an Option shall terminate when there is a termination of a
Participant’s Continuous Service:

     (i) Termination other than Upon Disability or Death or for Cause. In the event
of termination of a Participant’s Continuous Service (other than as a result of
Participant’s death, disability, or termination for Cause), the Participant shall have the
right to exercise an Option at any time within 30 days following such termination (or such
earlier date on which the Option expires) to the extent the Participant was entitled to
exercise such Option at the date of such termination.

     (ii) Disability. In the event of termination of a Participant’s Continuous
Service as a result of his or her being Disabled, the Participant shall have the right to
exercise an Option at any time within six months following such termination (or such earlier
date on which the Option expires) to the extent the Participant was entitled to exercise
such Option at the date of such termination.

     (iii) Death. In the event of the death of a Participant during the period of
Continuous Service since the Grant Date of an Option, or within 12 months following
termination of the Participant’s Continuous Service, the Option may be exercised, at any
time within 12 months following the date of the Participant’s death (or such earlier date on
which the Option expires), by the Participant’s estate or by a person who acquired the right

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to exercise the Option by bequest or inheritance, but only to the extent the right to
exercise the Option had vested at the date of death or, if earlier, the date the
Participant’s Continuous Service terminated.

     (iv) Cause. If the Committee determines that a Participant’s Continuous
Service terminated due to Cause or that the Company had Cause to terminate the Participant’s
Continuous Service or would have had Cause if the Company had then known all of the relevant
facts, the Participant shall forfeit the right to exercise any Option as of the time that
the Committee determines that Cause first existed, and it shall be considered immediately
null and void.

If there is a Securities and Exchange Commission blackout period that prohibits the buying or
selling or Shares during any part of the ten (10) day period before the expiration of any Option
based on the termination of a Participant’s Continuous Service (as described above), the period for
exercising the Options shall be extended until ten (10) days beyond when such blackout period ends.
Notwithstanding any provision hereof or within an Award Agreement, no Option shall ever be
exercisable after the expiration date of its original term as set forth in the Award Agreement.

7. Share Appreciation Rights (SARs)

     (a) Grants. The Committee may in its discretion grant Share Appreciation Rights to any
Eligible Person in any of the following forms:

     (i) SARs related to Options. The Committee may grant SARs either concurrently
with the grant of an Option or with respect to an outstanding Option, in which case the SAR
shall extend to all or a portion of the Shares covered by the related Option. An SAR shall
entitle the Participant who holds the related Option, upon exercise of the SAR and surrender
of the related Option, or portion thereof, to the extent the SAR and related Option each
were previously unexercised, to receive payment of an amount determined pursuant to Section
7(e) below. Any SAR granted in connection with an ISO will contain such terms as may be
required to comply with the provisions of Section 422 of the Code and the regulations
promulgated thereunder.

     (ii) SARs Independent of Options. The Committee may grant SARs which are
independent of any Option subject to such conditions as the Committee may in its discretion
determine and set forth in the applicable Award Agreement.

     (iii) Limited SARs. The Committee may grant SARs exercisable only upon or in
respect of a Change in Control or any other specified event, and such limited SARs may
relate to or operate in tandem or combination with or substitution for Options or other
SARs, or on a stand-alone basis, and may be payable in cash or Shares based on the spread
between the exercise price of the SAR, and (A) a price based upon or equal to the Fair Value
of the Shares during a specified period, at a specified time within a specified period
before, after or including the date of such event, or (B) a price related to consideration
payable to Company’s shareholders generally in connection with the event.

     (b) Exercise Price. The per Share exercise price of an SAR shall be determined in the sole
discretion of the Committee, shall be set forth in the applicable Award Agreement, and shall be no

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less than the Fair Value of one Share. The exercise price of an SAR related to an Option
shall be the same as the exercise price of the related Option.

     (c) Exercise of SARs. An SAR may not have a term exceeding ten years from its Grant Date.
Unless the Award Agreement otherwise provides, an SAR related to an Option will be exercisable at
such time or times, and to the extent, that the related Option will be exercisable; provided that
the Award Agreement shall not, without the approval of the shareholders of the Company, provide for
a vesting period for the exercise of the SAR that is more favorable to the Participant than the
exercise period for the related Option. An SAR granted independently of any other Award will be
exercisable pursuant to the terms of the Award Agreement. Whether an SAR is related to an Option
or is granted independently, the SAR may only be exercised when the Fair Value of the Shares
underlying the SAR exceeds the exercise price of the SAR.

     (d) Effect on Available Shares. All SARs that may be settled in Shares shall be counted in
full against the number of Shares available for awards under the Plan, regardless of the number of
Shares actually issued upon settlement of the SARs.

     (e) Payment. Upon exercise of an SAR related to an Option and the attendant surrender of an
exercisable portion of any related Award, the Participant will be entitled to receive payment of an
amount determined by multiplying —

     (i) the excess of the Fair Value of a Share on the date of exercise of the SAR over the
exercise price per Share of the SAR, by

     (ii) the number of Shares with respect to which the SAR has been exercised.

     (iii) Notwithstanding the foregoing, an SAR granted independently of an Option (i) may
limit the amount payable to the Participant to a percentage, specified in the Award
Agreement but not exceeding one-hundred percent (100%), of the amount determined pursuant to
the preceding sentence, and (ii) shall be subject to any payment or other restrictions that
the Committee may at any time impose in its discretion, including restrictions intended to
conform the SARs with Section 409A of the Code.

     (f) Form and Terms of Payment. Unless otherwise provided in an Award Agreement, all SARs
shall be settled in Shares as soon as practicable after exercise. Subject to Applicable Law, the
Committee may, in its sole discretion, provide in an Award Agreement that the amount determined
under Section 7(e) above shall be settled solely in cash, solely in Shares (valued at their Fair
Value on the date of exercise of the SAR), or partly in cash and partly in Shares, with cash paid
in lieu of fractional shares.

     (g) Termination of Employment or Consulting Relationship. The Committee shall establish and
set forth in the applicable Award Agreement the terms and conditions under which an SAR shall
remain exercisable, if at all, following termination of a Participant’s Continuous Service. The
provisions of Section 6(h) above shall apply to the extent an Award Agreement does not specify the
terms and conditions upon which an SAR shall terminate when there is a termination of a
Participant’s Continuous Service.

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8. Restricted Shares, Restricted Share Units, and Unrestricted Shares

     (a) Grants. The Committee may in its sole discretion grant restricted shares (“Restricted
Shares”) to any Eligible Person and shall evidence such grant in an Award Agreement that is
delivered to the Participant and that sets forth the number of Restricted Shares, the purchase
price for such Restricted Shares (if any), and the terms upon which the Restricted Shares may
become vested. In addition, the Company may in its discretion grant to any Eligible Person the
right to receive Shares after certain vesting requirements are met (“Restricted Share Units”), and
shall evidence such grant in an Award Agreement that is delivered to the Participant which sets
forth the number of Shares (or formula, that may be based on future performance or conditions, for
determining the number of Shares) that the Participant shall be entitled to receive upon vesting
and the terms upon which the Shares subject to a Restricted Share Unit may become vested. The
Committee may condition any Award of Restricted Shares or Restricted Share Units to a Participant
on receiving from the Participant such further assurances and documents as the Committee may
require to enforce the restrictions. In addition, the Committee may grant Awards hereunder in the
form of unrestricted shares (“Unrestricted Shares”), which shall vest in full upon the date of
grant or such other date as the Committee may determine or which the Committee may issue pursuant
to any program under which one or more Eligible Persons (selected by the Committee in its sole
discretion) elect to pay for such Shares or to receive Unrestricted Shares in lieu of cash bonuses
that would otherwise be paid.

     (b) Vesting and Forfeiture. The Committee shall set forth in an Award Agreement granting
Restricted Shares or Restricted Share Units, the terms and conditions under which the Participant’s
interest in the Restricted Shares or the Shares subject to Restricted Share Units will become
vested and non-forfeitable. Except as set forth in the applicable Award Agreement or as the
Committee otherwise determines, upon termination of a Participant’s Continuous Service for any
reason, the Participant shall forfeit his or her Restricted Shares and Restricted Share Units;
provided that if a Participant purchases the Restricted Shares and forfeits them for any reason,
the Company shall return the purchase price to the Participant only if and to the extent set forth
in an Award Agreement.

     (c) Issuance of Restricted Shares Prior to Vesting. The Company shall issue stock
certificates that evidence Restricted Shares pending the lapse of applicable restrictions, and that
bear a legend making appropriate reference to such restrictions. Except as set forth in the
applicable Award Agreement or as the Committee otherwise determines, the Company or a third party
that the Company designates shall hold such Restricted Shares and any dividends that accrue with
respect to Restricted Shares pursuant to Section 8(e) below.

     (d) Issuance of Shares upon Vesting. As soon as practicable after vesting of a Participant’s
Restricted Shares (or of the right to receive Shares underlying Restricted Share Units) and the
Participant’s satisfaction of applicable tax withholding requirements, the Company shall release to
the Participant, free from the vesting restrictions, one Share for each vested Restricted Share (or
issue one Share free of the vesting restriction for each vested Restricted Share Unit), unless an
Award Agreement provides otherwise. No fractional shares shall be distributed, and cash shall be
paid in lieu thereof.

     (e) Dividends Payable on Vesting. Whenever Shares are released to a Participant or
duly-authorized transferee pursuant to Section 8(d) above as a result of the vesting of Restricted
Shares or

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the Shares underlying Restricted Share Units are issued to a Participant pursuant to Section
8(d) above, such Participant or duly authorized transferee shall also be entitled to receive
(unless otherwise provided in the Award Agreement), with respect to each Share released or issued a
number of Shares equal to the sum of (i) any stock dividends, which were declared and paid to the
holders of Shares between the Grant Date and the date such Share is released from the vesting
restrictions in the case of Restricted Shares or issued in the case of Restricted Share Units, and
(ii) a number of Shares equal to the Shares that the Participant could have purchased at Fair Value
on the payment date of any cash dividends for Shares if the Participant had received such cash
dividends with respect to each Restricted Share or Share subject to a Restricted Share Unit Award
between its Grant Date and its settlement date.

     (f) Section 83(b) Elections. A Participant may make an election under Section 83(b) of the
Code (the “Section 83(b) Election”) with respect to Restricted Shares. If a Participant who has
received Restricted Share Units promptly provides the Committee with written notice of his or her
intention to make a Section 83(b) Election with respect to the Shares subject to such Restricted
Share Units, the Committee may in its discretion convert the Participant’s Restricted Share Units
into Restricted Shares, on a one-for-one basis, in full satisfaction of the Participant’s
Restricted Share Unit Award. The Participant may then make a Section 83(b) Election with respect
to those Restricted Shares.

9. Taxes

     (a) General. As a condition to the issuance or distribution of Shares pursuant to the Plan,
the Participant (or in the case of the Participant’s death, the person who succeeds to the
Participant’s rights) shall make such arrangements as the Company may require for the satisfaction
of any applicable federal, state, local or foreign withholding tax obligations that may arise in
connection with the Award and the issuance of Shares. The Company shall not be required to issue
any Shares until such obligations are satisfied, and may unilaterally withhold Shares for this
purpose. If the Committee allows or effectuates the withholding or surrender of Shares to satisfy
a Participant’s tax withholding obligations, the Committee shall not allow Shares to be withheld in
an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes.

     (b) Default Rule for Employees. In the absence of any other arrangement authorized by the
Committee or set forth in the Award Agreement, and to the extent permitted under Applicable Law,
each Participant shall be deemed to have elected to have the Company withhold from the Shares or
cash to be issued pursuant to an Award that number of Shares having a Fair Value determined as of
the applicable Tax Date (as defined below) or cash equal to the minimum applicable tax withholding
and employment tax obligations associated with an Award. If such withholding of Shares is not
permitted for any reason, the Company shall satisfy any required withholding through withholding
from cash compensation otherwise payable to the Participant. For purposes of this Section 9, the
Fair Value of the Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined under the Applicable Law (the “Tax Date”).

     (c) Surrender of Shares. If permitted by the Committee, in its discretion, a Participant may
satisfy the minimum applicable tax withholding and employment tax obligations associated with an
Award by surrendering Shares to the Company (including Shares that would otherwise be issued
pursuant to the Award) that have a Fair Value determined as of the applicable Tax Date equal to the

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amount required to be withheld. In the case of Shares previously acquired from the Company
that are surrendered under this Section 9, such Shares must have been owned by the Participant for
more than six months on the date of surrender (or such longer period of time the Company may in its
discretion require).

     (d) Income Taxes and Deferred Compensation. Participants are solely responsible and liable
for the satisfaction of all taxes and penalties that may arise in connection with Awards (including
any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to
indemnify or otherwise hold any Participant harmless from any or all of such taxes. The Committee
shall have the discretion to organize any deferral program, to require deferral election forms, and
to grant or to unilaterally modify any Award in a manner that (i) conforms with the requirements of
Section 409A of the Code, (ii) that voids any Participant election to the extent it would violate
Section 409A of the Code, and (iii) for any distribution election that would violate Section 409A
of the Code, to make distributions pursuant to the Award at the earliest to occur of a distribution
event that is allowable under Section 409A of the Code or any distribution event that is both
allowable under Section 409A of the Code and is elected by the Participant, subject to any valid
second election to defer, provided that the Committee permits second elections to defer in
accordance with Section 409A(a)(4)(C). The Committee shall have the sole discretion to interpret
the requirements of the Code, including Section 409A, for purposes of the Plan and all Awards.

10. Non-Transferability of Awards

     (a) General. Except as set forth in this Section 10, or as otherwise approved by the
Committee, Awards may not be sold, pledged, assigned, hypothecated, transferred or disposed of in
any manner other than by will or by the laws of descent or distribution. The designation of a
beneficiary by a Participant will not constitute a transfer (the initial beneficiary designation
form is attached as Exhibit “4”). An Award may be exercised, during the lifetime of the holder of
an Award, only by such holder, the duly-authorized legal representative of a Participant who is
Disabled, or a transferee permitted by this Section 10.

     (b) Limited Transferability Rights. Notwithstanding anything else in this Section 10, the
Committee may in its discretion provide in an Award Agreement that an Award in the form of a
Non-ISO, or Restricted Shares may be transferred, on such terms and conditions as the Committee
deems appropriate, either (i) by instrument to the Participant’s “Immediate Family” (as defined
below), or (ii) by instrument to an inter vivos or testamentary trust (or other entity) in which
the Award is to be passed to the Participant’s designated beneficiaries. Any transferee of the
Participant’s rights shall succeed and be subject to all of the terms of the applicable Award
Agreement and the Plan. “Immediate Family” means any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include
adoptive relationships.

11. Adjustments Upon Changes in Capitalization, Merger or Certain Other Transactions

     (a) Changes in Capitalization. The Committee shall equitably adjust the number of Shares
covered by each outstanding Award, and the number of Shares that have been authorized for issuance
under the Plan but as to which no Awards have yet been granted or that have been returned to the
Plan upon cancellation, forfeiture, or expiration of an Award, as well as the price per Share
covered by each such outstanding Award, to reflect any increase or decrease in the number of

-11-

 

issued Shares resulting from a stock-split, reverse stock-split, stock dividend, combination,
recapitalization or reclassification of the Shares, or any other increase or decrease in the number
of issued Shares effected without receipt of consideration by the Company. In the event of any
such transaction or event, the Committee may provide in substitution for any or all outstanding
Awards under the Plan such alternative consideration (including securities of any surviving entity)
as it may in good faith determine to be equitable under the circumstances and may require in
connection therewith the surrender of all Awards so replaced. In any case, such substitution of
securities shall not require the consent of any person who is granted Awards pursuant to the Plan.
Except as expressly provided herein, or in an Award Agreement, if the Company issues for
consideration shares of stock of any class or securities convertible into shares of stock of any
class, the issuance shall not affect, and no adjustment by reason thereof shall be required to be
made with respect to the number or price of Shares subject to any Award.

     (b) Dissolution or Liquidation. In the event of the dissolution or liquidation of the Company
other than as part of a Change in Control, each Award will terminate immediately prior to the
consummation of such action, subject to the ability of the Committee to exercise any discretion
authorized in the case of a Change in Control.

     (c) Change in Control. Unless otherwise provided in the applicable Award Agreement, on a
Change in Control (i) 50% of the then-outstanding unvested Awards held by each Participant who, as
of the Change in Control, has at least one year of Continuous Service shall vest; and (ii) 25% of
the then-outstanding unvested Stock Awards held by each Participant who, as of the Change in
Control, has less than one year of Continuous Service shall vest. In addition the Committee may in
its sole and absolute discretion and authority, without obtaining the approval or consent of the
Company’s shareholders or any Participant with respect to his or her outstanding Awards, take one
or more of the following actions:

     (i) arrange for or otherwise provide that each outstanding Award shall be assumed or a
substantially similar award shall be substituted by a successor corporation or a parent or
subsidiary of such successor corporation (the “Successor Corporation”);

     (ii) provide that repurchase rights of the Company with respect to Shares issued upon
exercise of an Award shall lapse as to the Shares subject to such repurchase right;

     (iii) arrange or otherwise provide for the payment of cash or other consideration to
Participants in exchange for the satisfaction and cancellation of outstanding Awards;

     (iv) provide that to the extent that an Award is not exercised prior to consummation of
a transaction in which the Award is not being assumed or substituted, such Award shall
terminate upon such consummation; or

     (v) make such other modifications, adjustments or amendments to outstanding Awards or
this Plan as the Committee deems necessary or appropriate.

     (d) Certain Distributions. In the event of any distribution to the Company’s shareholders of
securities of any other entity or other assets (other than dividends payable in cash or stock of
the Company) without receipt of consideration by the Company, the Committee may, in its discretion,

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appropriately adjust the price per Share covered by each outstanding Award to reflect the
effect of such distribution.

12. Time of Granting Awards.

     The date of grant (“Grant Date”) of an Award shall be the date on which the Committee makes
the determination granting such Award or such other date as is determined by the Committee,
provided that in the case of an ISO, the Grant Date shall be the later of the date on which the
Committee makes the determination granting such ISO or the date of commencement of the
Participant’s employment relationship with the Company.

13. Modification of Awards and Substitution of Options.

     (a) Modification, Extension, and Renewal of Awards. Within the limitations of the Plan, the
Committee may modify an Award to accelerate the rate at which an Option or SAR may be exercised
(including without limitation permitting an Option or SAR to be exercised in full without regard to
the installment or vesting provisions of the applicable Award Agreement or whether the Option or
SAR is at the time exercisable, to the extent it has not previously been exercised), to accelerate
the vesting of any Award, to extend or renew outstanding Awards or to accept the cancellation of
outstanding Awards to the extent not previously exercised. However, the Committee may not cancel
an outstanding Option whose exercise price is greater than Fair Value at the time of cancellation
for the purpose of reissuing the Option to the Participant at a lower exercise price or granting a
replacement award of a different type. Notwithstanding the foregoing provision, no modification of
an outstanding Award shall materially and adversely affect such Participant’s rights thereunder
(with such an affect being presumed to arise from a modification that would trigger a violation of
Section 409A of the Code), unless either (i) the Participant provides written consent, or (ii)
before a Change in Control, the Committee determines in good faith that the modification is not
materially adverse to the Participant. Nothing in this Section shall prohibit the Committee from
taking any action authorized pursuant to Section 11. Furthermore, neither the Company nor the
Committee shall, without shareholder approval, allow for a “repricing” within the meaning of
federal securities laws applicable to proxy statement disclosures.

     (b) Substitution of Options. Notwithstanding any inconsistent provisions or limits under the
Plan, in the event the Company or an Affiliate acquires (whether by purchase, merger or otherwise)
all or substantially all of outstanding capital stock or assets of another corporation or in the
event of any reorganization or other transaction qualifying under Section 424 of the Code, the
Committee may, in accordance with the provisions of that Section, substitute Options for options
under the plan of the acquired company provided (i) the excess of the aggregate fair value of the
shares subject to an option immediately after the substitution over the aggregate option price of
such shares is not more than the similar excess immediately before such substitution, and (ii) the
new option does not give persons additional benefits, including any extension of the exercise
period.

14. Term of Plan.

     The Plan shall continue in effect for a term of 10 years from its effective date as determined
under Section 18 below, unless the Plan is sooner terminated under Section 15 below.

15. Amendment and Termination of the Plan.

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     (a) Authority to Amend or Terminate. Subject to Applicable Laws, the Board may from time to
time amend, alter, suspend, discontinue, or terminate the Plan.

     (b) Effect of Amendment or Termination. No amendment, suspension, or termination of the Plan
shall materially and adversely affect Awards already granted (with such an affect being presumed to
arise from a modification that would trigger a violation of Section 409A of the Code) unless either
it relates to an adjustment pursuant to Section 11 or modification pursuant to Section 13(a) above,
or it is otherwise mutually agreed between the Participant and the Committee, which agreement must
be in writing and signed by the Participant and the Company. Notwithstanding the foregoing, the
Committee may amend the Plan to eliminate provisions which are no longer necessary as a result of
changes in tax or securities laws or regulations, or in the interpretation thereof.

16. Conditions Upon Issuance of Shares.

     Notwithstanding any other provision of the Plan or any agreement entered into by the Company
pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure,
to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with
Applicable Law, with such compliance determined by the Company in consultation with its legal
counsel.

17. Reservation of Shares.

     The Company, during the term of this Plan, will at all times reserve and keep available such
number of Shares as shall be sufficient to satisfy the requirements of the Plan.

18. Effective Date.

     This Plan shall become effective on the date which it has received approval by a vote of a
majority of the votes cast at a duly held meeting of the Company’s shareholders (or by such other
shareholder vote that the Committee determines to be sufficient for the issuance of Shares or stock
options according to the Company’s governing documents and applicable state law), which shall occur
no later more than 12 months after the date the Plan is adopted by the Company. Awards may be
granted under the Plan, but shall not become exercisable, prior to obtaining such shareholder
approval.

19. Controlling Law.

     All disputes relating to or arising from the Plan shall be governed by the internal
substantive laws (and not the laws of conflicts of laws) of the State of Colorado, to the extent
not preempted by United States federal law. If any provision of this Plan is held by a court of
competent jurisdiction to be invalid and unenforceable, the remaining provisions shall continue to
be fully effective.

20. Laws And Regulations.

     (a) U.S. Securities Laws. This Plan, the grant of Awards, and the exercise of Options and
SARs under this Plan, and the obligation of the Company to sell or deliver any of its securities
(including, without limitation, Options, Restricted Shares, Restricted Share Units, Unrestricted
Shares, and Shares) under this Plan shall be subject to all Applicable Law. In the event that the

-14-

 

Shares are not registered under the Securities Act of 1933, as amended (the “Act”), or any
applicable state securities laws prior to the delivery of such Shares, the Company may require, as
a condition to the issuance thereof, that the persons to whom Shares are to be issued represent and
warrant in writing to the Company that such Shares are being acquired by him or her for investment
for his or her own account and not with a view to, for resale in connection with, or with an intent
of participating directly or indirectly in, any distribution of such Shares within the meaning of
the Act, and a legend to that effect may be placed on the certificates representing the Shares.

     (b) Other Jurisdictions. To facilitate the making of any grant of an Award under this Plan,
the Committee may provide for such special terms for Awards to Participants who are foreign
nationals or who are employed by the Company or any Affiliate outside of the United States of
America as the Committee may consider necessary or appropriate to accommodate differences in local
law, tax policy or custom. The Company may adopt rules and procedures relating to the operation
and administration of this Plan to accommodate the specific requirements of local laws and
procedures of particular countries. Without limiting the foregoing, the Company is specifically
authorized to adopt rules and procedures regarding the conversion of local currency, taxes,
withholding procedures and handling of stock certificates which vary with the customs and
requirements of particular countries. The Company may adopt sub-plans and establish escrow
accounts and trusts as may be appropriate or applicable to particular locations and countries.

21. No Shareholder Rights.

     Neither a Participant nor any transferee of a Participant shall have any rights as a
shareholder of the Company with respect to any Shares underlying any Award until the date of
issuance of a share certificate to a Participant or a transferee of a Participant for such Shares
in accordance with the Company’s governing instruments and Applicable Law. Prior to the issuance
of Shares pursuant to an Award, a Participant shall not have the right to vote or to receive
dividends or any other rights as a shareholder with respect to the Shares underlying the Award,
notwithstanding its exercise in the case of Options and SARs. No adjustment will be made for a
dividend or other right that is determined based on a record date prior to the date the stock
certificate is issued, except as otherwise specifically provided for in this Plan.

22. No Employment Rights.

     The Plan shall not confer upon any Participant any right to continue an employment, service or
consulting relationship with the Company, nor shall it affect in any way a Participant’s right or
the Company’s right to terminate the Participant’s employment, service, or consulting relationship
at any time, with or without Cause. By accepting any Award under this Plan a Participant confirms
his or her at-will status (except as otherwise provided in a written employment agreement signed by
an officer of the Company) and that such relationship only can be changed by a written agreement
signed by an officer of the Company.

23. Termination, Rescission and Recapture of Awards.

     (a) Each Award under the Plan is intended to align the Participant’s long-term interest with
those of the Company. If the Participant engages in certain activities discussed below, either
during employment or any other service relationship or after employment or such service
relationship with the Company terminates for any reason, the Participant is acting contrary to the

-15-

 

long-term interests of the Company. Accordingly, to the extent not prohibited by Applicable
Law, the Company may terminate any outstanding, unexercised, unexpired, unpaid, or deferred Awards
(“Termination”), rescind any exercise, payment or delivery pursuant to the Award (“Rescission”), or
recapture any Common Stock (whether restricted or unrestricted) or proceeds from the Participant’s
sale of Shares issued pursuant to the Award (“Recapture”), if the Participant does not comply with
the conditions of subsections (b), (c), and (d) hereof (collectively, the “Conditions”).

     (b) Each Participant acknowledges that by virtue of his or her employment or other service
relationship with the Company, he or she will be granted otherwise prohibited access to
confidential information and proprietary data including but not limited to such information
described in those or other similar terms in any applicable patent, confidentiality, inventions,
secrecy, or other agreement between the Participant and the Company, which are not known, and not
readily accessible to the Company’s competitors. This information (the “Confidential Information”)
includes, but is not limited to, current and prospective customers; the identity of key contacts at
such customers; customers’ particularized preferences and needs; marketing strategies and plans;
financial data; personnel data; compensation data; proprietary procedures and processes; and other
unique and specialized practices, programs and plans of the Company and its customers and
prospective customers. Each Participant recognizes that this Confidential Information constitutes
a valuable property of the Company, developed over a significant period of time and at substantial
expense. Accordingly, each Participant, by accepting any Award under this Plan, agrees that he or
she shall not, at any time during or after his or her employment or other service relationship with
the Company, divulge such Confidential Information or make use of it for his or her own purposes or
the purposes of any person or entity other than the Company.

     (c) Pursuant to any agreement between the Participant and the Company with regard to
intellectual property (including but not limited to patents, trademarks, copyrights, trade secrets,
inventions, developments, improvements, proprietary information, confidential business and
personnel information), a Participant shall promptly disclose and assign to the Company or its
designee all right, title, and interest in such intellectual property, and shall take all
reasonable steps necessary to enable the Company to secure all right, title and interest in such
intellectual property in the United States and in any foreign country.

     (d) By virtue of his or her relationship with the Company, each Participant will be introduced
to and involved in the solicitation and servicing of existing customers of the Company and new
customers obtained by the Company and agrees that all efforts expended in soliciting and servicing
such customers shall be for the permanent benefit of the Company. During each Participant’s
employment or other service relationship with the Company he or she will not engage in any conduct
which could in any way jeopardize or disturb any of the Company’s customer relationships. Each
Participant agrees that, to the extent not prohibited by Applicable Law, for a period beginning on
the date of grant of each Award and ending (i) 1 year after termination of Continuous Service,
regardless of the reason for such termination, he or she shall not, directly or indirectly, without
the prior written consent of the Chairman of the Company, market, offer, sell or otherwise furnish
any products or services similar to, or otherwise competitive with, those offered by the Company to
any customer of the Company; and (ii) 2 years after termination of Continuous Service, regardless
of the reason for such termination, he or she shall not, directly or indirectly, solicit, offer
employment to, hire or otherwise retain the services of any employee or other service provider of
the Company.

-16-

 

     (e) Upon exercise, payment, or delivery of cash or Common Stock pursuant to an Award, the
Participant shall certify on a form acceptable to the Company that he or she is in compliance with
the terms and conditions of the Plan and, if a severance of Continuous Service has occurred for any
reason, shall state the name and address of the Participant’s then-current employer or any entity
for which the Participant performs business services and the Participant’s title, and shall
identify any organization or business in which the Participant owns a greater-than-five-percent
equity interest.

     (f) If the Company determines, in its sole and absolute discretion, that (i) a Participant has
violated any of the Conditions, or (ii) during his or her Continuous Service has rendered services
to or otherwise directly or indirectly engaged in or assisted, any organization or business that,
in the judgment of the Company in its sole and absolute discretion, is or is working to become
competitive with the Company; or (iii) during his or her Continuous Service, or within one year
after its termination for any reason, a Participant (a) has solicited any non-administrative
employee of the Company to terminate employment with the Company; or (b) has engaged in activities
which are materially prejudicial to or in conflict with the interests of the Company, including any
breaches of fiduciary duty or the duty of loyalty, or taken any action or inaction that resulted in
a restatement to the Company’s audited financial statements, then, except to the extent prohibited
by Applicable Law, the Company may, in its sole and absolute discretion, impose a Termination,
Rescission or Recapture with respect to any or all of the Participant’s relevant Awards, Shares,
and the proceeds thereof.

     (g) Within ten days after receiving notice from the Company of any such activity described in
Section 23(f) above, the Participant shall deliver to the Company the Shares acquired pursuant to
the Award, or, if Participant has sold the Shares, the gain realized, or payment received as a
result of the rescinded exercise, payment, or delivery; provided, that if the Participant returns
Shares that the Participant purchased pursuant to the exercise of an Option (or the gains realized
from the sale of such Common Stock), the Company shall promptly refund the exercise price, without
earnings, that the Participant paid for the Shares. Any payment by the Participant to the Company
pursuant to this Section 23 shall be made either in cash or by returning to the Company the number
of Shares that the Participant received in connection with the rescinded exercise, payment, or
delivery. It shall not be a basis for Termination, Rescission or Recapture if after termination of
a Participant’s Continuous Service, the Participant purchases, as an investment or otherwise, stock
or other securities of such an organization or business, so long as (i) such stock or other
securities are listed upon a recognized securities exchange or traded over-the-counter, and (ii)
such investment does not represent more than a five percent equity interest in the organization or
business.

     (h) Notwithstanding the foregoing provisions of this Section, the Company has sole and
absolute discretion not to require Termination, Rescission or Recapture, and its determination not
to require Termination, Rescission or Recapture with respect to any particular act by a particular
Participant or Award shall not in any way reduce or eliminate the Company’s authority to require
Termination, Rescission or Recapture with respect to any other act or Participant or Award.
Nothing in this Section shall be construed to impose obligations on the Participant to refrain from
engaging in lawful competition with the Company after the termination of employment that does not
violate subsections (b), (c), or (d) of this Section, other than any obligations that are part of
any separate agreement between the Company and the Participant or that arise under Applicable Law.

-17-

 

     (i) All administrative and discretionary authority given to the Company under this Section
shall be exercised by the most senior human resources executive of the Company or such other person
or committee (including without limitation the Committee) as the Committee may designate from time
to time.

     (j) Notwithstanding any provision of this Section, if any provision of this Section is
determined to be unenforceable or invalid under any Applicable Law, such provision will be applied
to the maximum extent permitted by Applicable Law, and shall automatically be deemed amended in a
manner consistent with its objectives to the extent necessary to conform to any limitations
required under Applicable Law. Furthermore, if any provision of this Section is illegal under any
Applicable Law, such provision shall be null and void to the extent necessary to comply with
Applicable Law.

24. Pre-IPO Provisions.

     Subject to any contrary terms set forth in any Award Agreement, for any period preceding the
date of an initial public offering, this Section shall be applicable to any Shares subject to or
issued pursuant to Awards. The provisions set forth below shall become null and void upon the
occurrence of an initial public offering.

     (a) Shareholders’ Agreement. As a condition for the delivery of any Shares pursuant to any
Award, the Committee may require the Participant to execute and be bound by any agreement that
generally exists between the Company and similarly-situated Shareholders.

     (b) Repurchase Rights. Unless provided otherwise in the applicable Award Agreement, after a
Participant experiences a termination of Continuous Service, the Company has the right to
repurchase some or all of the Participant’s Shares (that were acquired as a result of exercising
all or a portion of an Option or SAR) at any time after the lapse of six months and one day from
the date such shares were issued. If the Company exercises its repurchase right, it shall pay the
Participant the Fair Value of the Shares repurchased as of the date of repurchase. The Company
shall pay the repurchase price to the Participant in any combination of cash, a promissory note
payable over a time not to exceed five years the terms and conditions of which shall be determined
in good faith by the Committee, or by canceling debts the Participant owes to the Company.

     (c) Market Stand-Off. In connection with any underwritten public offering by the Company of
its equity securities pursuant to an effective registration statement filed under the federal
securities laws, including the Company’s initial public offering, Participants shall not directly
or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any
option or other contract for the purchase of, purchase any option or other contract for the sale
of, or otherwise dispose or transfer, or agree to engage in any of the foregoing transactions with
respect to, any Shares acquired under this Agreement without the prior written consent of the
Company or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for such
period of time, not exceeding 180 days, following the date of the final prospectus for the offering
as may be requested by the Company or such underwriters. The Market Stand-Off shall in any event
terminate two years after the date of the Company’s initial public offering. In the event of the
declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion ratio, a
recapitalization or a similar transaction affecting the Company’s outstanding securities without
receipt of consideration, any new, substituted or additional securities which are by reason of such
transaction distributed with

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respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby
become convertible, shall immediately be subject to such Market Stand-Off. In order to enforce the
Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Shares
acquired under this Agreement until the end of the applicable stand-off period. The Company and
its underwriters shall be beneficiaries of the agreement set forth in this paragraph. This
paragraph shall not apply to Shares registered in a public offering under the federal securities
laws, and the Participant shall be subject to this paragraph only if the directors and officers of
the Company are subject to similar arrangements.

-19-

 

DigitalGlobe, Inc.

Employee Stock Option Plan

 

Appendix A: Definitions

 

As used in the Plan, the following definitions shall apply:

     “Affiliate” means, with respect to any Person (as defined below), any other Person
that directly or indirectly controls or is controlled by or under common control with such Person.
For the purposes of this definition, “control,” when used with respect to any Person, means the
possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of such Person or the power to elect directors, whether through the ownership of voting
securities, by contract or otherwise; and the terms “Affiliated,” “controlling” and “controlled”
have meanings correlative to the foregoing.

     “Applicable Law” means the legal requirements relating to the administration of
options and share-based plans under applicable U.S. federal and state laws, the Code, and any
applicable stock exchange or automated quotation system rules or regulations (to the extent the
Committee determines in its discretion that compliance with such rules or regulations is desirable)
and the applicable laws of any other country or jurisdiction where Awards are granted or that apply
to the Company’s or a Participant’s rights and obligations under this Plan or any Award Agreement,
as such laws, rules, regulations and requirements shall be in place from time to time.

     “Award” means any award made pursuant to the Plan, including awards made in the form
of an Option, an SAR, a Restricted Share, a Restricted Share Unit, an Unrestricted Share, or any
combination thereof, whether alternative or cumulative, authorized by and granted under this Plan.

     “Award Agreement” means any written document setting forth the terms of an Award that
has been authorized by the Committee. The Committee shall determine the form or forms of documents
to be used, and may change them from time to time for any reason.

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

     “Cause” for termination of a Participant’s Continuous Service will have the meaning
set forth in any unexpired employment agreement between the Company and the
Participant.1 In the absence of such an agreement, “Cause” will exist if the Participant
is terminated from employment or other service with the Company or an Affiliate for any of the
following reasons: (i) the Participant’s willful failure to substantially perform his or her duties
and responsibilities to the Company or deliberate violation of a material Company policy; (ii) the
Participant’s commission of any material act or acts of fraud, embezzlement, dishonesty, or other
willful misconduct; (iii) the Participant’s material unauthorized use or disclosure of any
proprietary information or trade secrets of the Company or any other party to whom the Participant
owes an obligation of nondisclosure as a result of his or her relationship with the Company; (iv)
Participant’s willful and material breach of

 

			
	1	 	Confirm this limitation.

 

 

any of his or her obligations under any written agreement or covenant with the Company or any
of its Affiliates; (v) the Participant’s conviction of, or plea of nolo contendere to a crime
involving fraud, theft, or moral turpitude or any felony; or (vi) the Participant’s misconduct,
significant failure to perform the Participant’s duties or engagement in any activity that
constitutes a conflict of interest with the Company or its Affiliates.

     The Committee shall in its discretion determine whether or not a Participant is being
terminated for Cause. The Committee’s determination shall, unless arbitrary and capricious, be
final and binding on the Participant, the Company, and all other affected persons. The foregoing
definition does not in any way limit the Company’s ability to terminate a Participant’s employment
or consulting relationship at any time, and the term “Company” will be interpreted herein to
include any Affiliate or successor thereto, if appropriate.

     “Change in Control” means any of the following:

     (i) Acquisition of Controlling Interest. Any Person (other than Persons who are
Employees at any time more than one year before a transaction) becomes the Beneficial Owner,
directly or indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding securities. In applying the
preceding sentence, (i) securities acquired directly from the Company or its Affiliates by
or for the Person shall not be taken into account, and (ii) an agreement to vote securities
shall be disregarded unless its ultimate purpose is to cause what would otherwise be Change
in Control, as reasonably determined by the Board.

     (ii) Merger. The Company consummates a merger, or consolidation of the Company with
any other corporation unless: (a) the voting securities of the Company outstanding
immediately before the merger or consolidation would continue to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity)
at least 50% of the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation; and (b) no
Person (other than Persons who are Employees at any time more than one year before a
transaction) becomes the Beneficial Owner, directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company’s then
outstanding securities.

     (iii) Sale of Assets. The stockholders of the Company approve an agreement for the
sale or disposition by the Company of all, or substantially all, of the Company’s assets.

     (iv) Liquidation or Dissolution. The stockholders of the Company approve a plan or
proposal for liquidation or dissolution of the Company.

     Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated transactions immediately
following which the record holders of the common stock of the Company immediately prior to such
transaction or series of transactions continue to have substantially the same proportionate
ownership in an entity which owns all or substantially all of the assets of the Company immediately
following such transaction or series of transactions.

-2-

 

     “Code” means the U.S. Internal Revenue Code of 1986, as amended.

     “Committee” means one or more committees or subcommittees of the Board appointed by
the Board to administer the Plan in accordance with Section 4 above. With respect to any decision
involving an Award made at a time when the Company is publicly traded and that is intended to
satisfy the requirements of Section 162(m) of the Code, the Committee shall consist of two or more
Directors of the Company who are “outside directors” within the meaning of Section 162(m) of the
Code. With respect to any decision relating to a Reporting Person made at a time when the Company
is publicly traded, the Committee shall consist of two or more Directors who are disinterested
within the meaning of Rule 16b-3.

     “Company” means DigitalGlobe, Inc., a Delaware corporation; provided, however, that in
the event the Company reincorporates to another jurisdiction, all references to the term “Company”
shall refer to the Company in such new jurisdiction.

     “Consultant” means any person, including an advisor, who is engaged by the Company or
any Affiliate to render services and is compensated for such services.

     “Continuous Service” means the absence of any interruption or termination of service
as an Employee, Director, or Consultant. Continuous Service shall not be considered interrupted in
the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the
Committee, provided that such leave is for a period of not more than 90 days, unless reemployment
upon the expiration of such leave is guaranteed by contract or statute, or unless provided
otherwise pursuant to Company policy adopted from time to time; or (iv) in the case of transfers
between locations of the Company or between the Company, its Affiliates or their respective
successors. Changes in status between service as an Employee, Director, and a Consultant will
constitute an interruption of Continuous Service if the Committee determines that the individual
has not continued or will not continue to perform bona fide services for the Company or determines
that the relationship will or may result in adverse accounting consequences.

     “Director” means a member of the Board, or a member of the board of directors of an
Affiliate.

     “Disabled” means that a Participant is contemporaneously receiving full disability
benefits under a long-term disability plan maintained by the Company (but, if a Participant is
awarded disability benefits as the result of such a disability plan’s formal claims procedure
process, prior to denial at the final level of administrative appeal, he or she shall be deemed to
have contemporaneously received such benefits with respect to the period for which they were
awarded). If a Participant is denied such benefits at the final level of appeal, or does not
timely pursue his or her disability plan administrative remedies through the final level of appeal,
he or she shall not be considered to be Disabled for purposes of the Plan.

     “Eligible Person” means any Consultant, Director or Employee and includes
non-Employees to whom an offer of employment has been or is being extended.

     “Employee” means any person whom the Company or any Affiliate classifies as an
employee (including an officer) for employment tax purposes, whether or not that classification is

-3-

 

correct. The payment by the Company of a director’s fee to a Director shall not be sufficient
to constitute “employment” of such Director by the Company.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Value” means, as of any date (the “Determination Date”) means: (i) the closing
price of a Share on the New York Stock Exchange or the American Stock Exchange (collectively, the
“Exchange”), on the Determination Date, or, if shares were not traded on the Determination Date,
then on the nearest preceding trading day during which a sale occurred; or (ii) if such stock is
not traded on the Exchange but is quoted on Nasdaq or a successor quotation system, (A) the last
sales price (if the stock is then listed as a National Market Issue under The Nasdaq National
Market System) or (B) the mean between the closing representative bid and asked prices (in all
other cases) for the stock on the Determination Date as reported by Nasdaq or such successor
quotation system; or (iii) if such stock is not traded on the Exchange or quoted on Nasdaq but is
otherwise traded in the over-the-counter, the mean between the representative bid and asked prices
on the Determination Date; or (iv) if subsections (i)-(iii) do not apply, the fair value
established in good faith by the Board or the Committee.

     “Grant Date” has the meaning set forth in Section 12 of the Plan.

     “Incentive Share Option or ISO” means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code, as designated in the applicable Award
Agreement.

     “Non-ISO” means an Option not intended to qualify as an ISO, as designated in the
applicable Award Agreement.

     “Option” means any stock option granted pursuant to Section 6 of the Plan.

     “Participant” means any holder of one or more Awards, or the Shares issuable or issued
upon exercise of such Awards, under the Plan.

     “Person” means any natural person, association, trust, business trust, cooperative,
corporation, general partnership, joint venture, joint-stock company, limited partnership, limited
liability company, real estate investment trust, regulatory body, governmental agency or
instrumentality, unincorporated organization or organizational entity.

     “Plan” means this DigitalGlobe, Inc. 2007 Employee Stock Option Plan.

     “Reporting Person” means an officer, Director, or greater than ten percent shareholder
of the Company within the meaning of Rule 16a-2 under the Exchange Act, who is required to file
reports pursuant to Rule 16a-3 under the Exchange Act.

     “Restricted Shares” mean Shares subject to restrictions imposed pursuant to Section 8
of the Plan.

     “Restricted Share Units” mean Awards pursuant to Section 8 of the Plan.

-4-

 

     “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended from time
to time, or any successor provision.

     “SAR” or “Share Appreciation Right” means Awards granted pursuant to Section 7 of the
Plan.

     “Share” means a share of common stock of the Company, as adjusted in accordance with
Section 11 of the Plan.

     “Ten Percent Holder” means a person who owns stock representing more than ten percent
(10%) of the combined voting power of all classes of stock of the Company or any Affiliate.

     “Unrestricted Shares” mean Shares awarded pursuant to Section 8 of the Plan.

-5-

 

Exhibit 1

DIGITALGLOBE, INC.

2007 EMPLOYEE STOCK PLAN

 

Stock Option Award Agreement

 

Award No.                     

          You are hereby awarded the following stock option (the “Option”) to purchase Shares of
DigitalGlobe, Inc. (the “Company”), subject to the terms and conditions set forth in this Stock
Option Award Agreement (the “Award Agreement”) and in the DigitalGlobe, Inc. 2007 Employee Stock
Option Plan (the “Plan”), which is attached hereto as Appendix 1. You should carefully review
these documents, and consult with your personal financial advisor, before exercising this Option.

          By executing this Award Agreement, you agree to be bound by all of the Plan’s terms and
conditions as if they had been set out verbatim below. In addition, you recognize and agree that
all determinations, interpretations, or other actions respecting the Plan and this Award
Agreement will be made by the Company’s Board of Directors or any Committee appointed by
the Board to administer the Plan, and shall (in the absence of material and manifest bad faith or
fraud) be final, conclusive and binding on all parties, including you and your successors in
interest. Terms that begin with initial capital letters have the special meanings set forth in the
Plan or in this Award Agreement (unless the context indicates otherwise).

1. Specific Terms. This Option shall have, and be interpreted according to, the following
terms, subject to the provisions of the Plan in all instances:

	 	 	 
	Your Name:

	 	                                                            
	 
	 	 
	Type of Stock Option:

	 	o     Incentive Stock Option (ISO)1
	 
	 	 
	 

	 	o     Non-Incentive Stock Option
	 
	 	 
	Number of Shares subject to Option:

	 	                                                            
	 
	 	 
	Option Exercise Price per Share:

	 	                                                            
	 
	 	 
	Grant Date:

	 	                                                            

			
	Vesting Schedule:	 	(Establishes your rights to exercise this Option with respect to the
Number of Shares stated above, subject to any shareholder approval requirement set
forth in the Plan.)

 

			
	1	 	If you directly or indirectly own more than 10% of the
voting power of all classes of stock of the Company or of any Subsidiary, then
the term of your ISO cannot exceed 5 years and the exercise price must be at
least 110% of the Fair Value (100% for any other employee who is receiving ISO
awards). Only employees may receive ISOs.

 

 

	 	 	 
	 

	 	25% on the first anniversary of the Grant Date (subject to your
Continuous Service through such date) and 1/36th of the remaining 75%
thereafter on each of the first 36 monthly anniversaries of the Grant
Date (subject to your Continuous Service through each such date).
	 
	 	 
	Expiration Date:

	 	o                          years after Grant Date; or
	 
	 	 
	 

	 	o      10 years after Grant Date.

2. Term of Option. The term of the Option will expire at 5:00 p.m. (M.D.T. or M.S.T., as
applicable) on the Expiration Date.

3. Manner of Exercise. The Option shall be exercised in the manner set forth in the Plan,
using the exercise form required by the Committee. The amount of Shares for which the Option may
be exercised is cumulative; that is, if you fail to exercise the Option for all of the Shares
vested under the Option during any period set forth above, then any Shares subject to the Option
that are not exercised during such period may be exercised during any subsequent period, until the
expiration or termination of the Option pursuant to Sections 2 and 5 of this Award Agreement and
the terms of the Plan. Fractional Shares may not be purchased.

4. Special ISO Provisions. If designated as an ISO, this Option shall be treated as an ISO
to the extent allowable under Section 422 of the Code, and shall otherwise be treated as a Non-ISO.
If you sell or otherwise dispose of Shares acquired upon the exercise of an ISO within 1 year from
the date such Shares were acquired or 2 years from the Grant Date, you agree to deliver a written
report to the Company within 10 days following the sale or other disposition of such Shares
detailing the net proceeds of such sale or disposition.

5. Termination of Continuous Service. If your Continuous Service with the Company is
terminated for any reason, this Option shall terminate on the date on which you cease to have any
right to exercise the Option pursuant to the terms and conditions set forth in Section 6 of the
Plan.

6. Designation of Beneficiary. Notwithstanding anything to the contrary contained herein
or in the Plan, following the execution of this Award Agreement, you may expressly designate a
beneficiary (the “Beneficiary”) to your interest in the Option awarded hereby. You shall designate
the Beneficiary by completing and executing a designation of beneficiary agreement in the form
required by the Committee (the “Designation of Beneficiary”) and delivering an executed copy of the
Designation of Beneficiary to the Company’s HR Manager or such other person designated by the
Company in writing.

7. Restrictions on Transfer of Awards; Right of Repurchase. This Award Agreement may not be
sold, pledged, or otherwise transferred without the prior written consent of the Committee. If the
Committee permits any such transfer, any transferee shall succeed and be subject to all of the
terms of this Award Agreement and the Plan. If you experience a termination of Continuous Service,
the Company has the right to repurchase some or all of your Shares (that were acquired as a result
of exercising all or a portion of your option) at any time after the lapse of six months and one
day from the date such shares were issued. If the Company exercises its repurchase right, it shall
pay you the Fair Value of the Shares repurchased as of the date of repurchase. The Company shall
pay

-2-

 

the repurchase price to you in any combination of cash, a promissory note payable over a time not
to exceed five years, or by canceling debts you owe to the Company. The Company’s repurchase
rights as set forth in this Section 7 shall lapse on the effective date of an initial public
offering.

8. Conditions on Issuance of Shares; Transfer Restrictions. Notwithstanding any other
provision of the Plan or of this Award Agreement: (i) the Committee may condition your receipt of
Shares on your execution of a shareholder agreement imposing terms generally applicable to other
similarly-situated employee-shareholders; and (ii) unless authorized by the Committee in writing,
any Shares issued pursuant to this Award Agreement shall be non-transferable except in accordance
with Section 7 above.

9. Taxes. By signing this Award Agreement, you acknowledge that you shall be solely
responsible for the satisfaction of any taxes that may arise (including taxes arising under
Sections 409A or 4999 of the Code), and that neither the Company nor the Committee shall have any
obligation whatsoever to pay such taxes. In the event that any payment or benefit received or to
be received by Participant pursuant to the Plan or otherwise (collectively, the “Payments”) would
result in a “parachute payment” as described in section 280G of the Internal Revenue Code of 1986,
as amended (or any successor provision), notwithstanding the other provisions of this Award
Agreement, the Plan, or any other agreement or arrangement (but subject to any contrary provisions
of any separate unexpired employment or other agreement between you and the Company), such Payments
shall not, in the aggregate, exceed the maximum amount that may be paid to you without triggering
golden parachute penalties under Section 280G and related provisions of the Internal Revenue Code,
as determined in good faith by the Company’s independent auditors. If any benefits must be cut
back to avoid triggering such penalties, they shall be cut back in the priority order designated by
the Company. If an amount in excess of the limit set forth in this section is paid to you, you
shall repay the excess amount to the Company on demand, with interest at the rate provided for in
Internal Revenue Code Section 1274(b)(2)(B) (or any successor provision). The Company and you
agree to cooperate with each other in connection with any administrative or judicial proceedings
concerning the existence or amount of golden parachute penalties. The foregoing reduction,
however, shall only apply if it increases the net amount you would realize from Payments, after
payment of income and excise taxes on such Payments.

10. Notices. Any notice or communication required or permitted by any provision of this
Award Agreement to be given to you generally shall be in writing and generally shall be delivered
electronically, personally, or by certified mail, return receipt requested, addressed to you at the
last address that the Company had for you on its records. Any notice or communication required or
permitted by any provision of this Award Agreement to be given by you must be in writing and
delivered personally or by certified mail, return receipt requested, addressed to the Company’s HR
Manager at its corporate headquarters. Each party may, from time to time, by notice to the other
party hereto, specify a new e-mail or address for delivery of notices relating to this Award
Agreement. Any such notice shall be deemed to be given as of the date such notice is personally
delivered or properly mailed.

11. Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan,
every covenant, term, and provision of this Award Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, legatees, legal representatives,
successors, transferees, and assigns.

-3-

 

12. Modifications. This Award Agreement may be modified or amended at any time, in
accordance with Section 13 of the Plan and provided that you must consent in writing to any
modification that adversely and materially affects your rights or obligations under this Award
Agreement (with such an affect being presumed to arise from a modification that would trigger a
violation of Section 409A of the Code). Notwithstanding the foregoing, the Committee may, however,
take the action permitted by Section 11 of the Plan without your written consent.

13. Headings. Section and other headings contained in this Award Agreement are for
reference purposes only and are not intended to describe, interpret, define or limit the scope or
intent of this Award Agreement or any provision hereof.

14. Severability. Every provision of this Award Agreement and of the Plan is intended to
be severable. If any term hereof is illegal or invalid for any reason, such illegality or
invalidity shall not affect the validity or legality of the remaining terms of this Award
Agreement.

15. Counterparts. This Award Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

16. Plan Governs. By signing this Award Agreement, you acknowledge that you have received
a copy of the Plan and that your Award Agreement is subject to all the provisions contained in the
Plan, the provisions of which are made a part of this Award Agreement and your Award is subject to
all interpretations, amendments, rules and regulations which from time to time may be promulgated
and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Award
Agreement and those of the Plan, the provisions of the Plan shall control.

17. Investment Purposes. By executing this Award Agreement, you represent and warrant that
any Shares issued to you pursuant to your Options will be held for investment purposes only for
your own account, and not with a view to, for resale in connection with, or with an intent in
participating directly or indirectly in, any distribution of such Shares within the meaning of the
Securities Act of 1933, as amended.

18. Not a Contract of Employment. By executing this Award Agreement you acknowledge and
agree that (i) any person who is terminated before full vesting of an award, such as the one
granted to you by this Award Agreement, could claim that he or she was terminated to preclude
vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award Agreement or the
Plan confers on you any right to continue an employment, service or consulting relationship with
the Company, nor shall it affect in any way your right or the Company’s right to terminate your
employment, service, or consulting relationship at any time, with or without Cause; (iv) unless you
have a written agreement signed by the Company’s President providing otherwise, you are an at-will
employee who may be terminated at any time and for any or no reason; and (v) the Company would not
have granted this Award to you but for these Acknowledgments and agreements.

19. Long-term Consideration for Award. By executing this Award Agreement you acknowledge
the terms and conditions set forth in Section 23 of the Plan and that such terms are hereby
incorporated by reference and made an integral part of this Award Agreement. An invalidation of
all or part of Section 23 of the Plan, or your commencement of litigation to invalidate, modify, or
alter the terms and conditions set forth in this Section 19 of this Award Agreement or Section 23
of

-4-

 

the Plan, shall cause this Award to become null, void, and unenforceable. You further acknowledge
and agree that the terms and conditions of this Section and Section 23 of the Plan shall survive
both (i) the termination of your Continuous Service for any reason, and (ii) the termination of the
Plan, for any reason. You acknowledge and agree that the grant of Options in this Award Agreement
is just and adequate consideration for the survival of the restrictions set forth herein, and that
the Company may pursue any or all of the following remedies if you either violate the terms of this
Section or Section 23 of the Plan or succeed for any reason in invalidating any part of it (it
being understood that the invalidity of any term hereof would result in a failure of consideration
for the Award):

	 	(i)	 	declaration that the Award is null and void and of no further
force or effect;
	 
	 	(ii)	 	recapture of any cash paid or Shares issued to you, or any
designee or beneficiary of you, pursuant to the Award;
	 
	 	(iii)	 	recapture of the proceeds, plus reasonable interest, with
respect to any Shares that are both issued pursuant to this Award and sold or
otherwise disposed of by you, or any designee or beneficiary of you.

The remedies provided above are not intended to be exclusive, and the Company may seek such other
remedies as are provided by law, including equitable relief. You acknowledge and agree that your
adherence to the foregoing requirements will not prevent you from engaging in your chosen
occupation and earning a satisfactory livelihood following the termination of your employment with
the Company

20. Governing Law. The laws of the State of Colorado shall govern the validity of this
Award Agreement, the construction of its terms, and the interpretation of the rights and duties of
the parties hereto.

-5-

 

     BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the
Company agree that the Option is awarded under and governed by the terms and conditions of this
Award Agreement and the Plan.

	 	 	 	 	 
	 	DIGITALGLOBE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	PARTICIPANT

The undersigned Participant hereby accepts the terms of this Award Agreement and the Plan.

 	 
	 	By:  	 	 
	 
	 	Name of Participant:  	 
	 	 	 
	 

-6-

 

Exhibit 2

EARTHWATCH INCORPORATED 1999 EQUITY INCENTIVE PLAN

 

 

Exhibit 3

DIGITALGLOBE, INC.

2007 EMPLOYEE STOCK OPTION PLAN

 

Form of Exercise of Stock Option Award Agreement

 

	 	 	 	 	 
	 

	 	DigitalGlobe, Inc.	 	 
	Attention:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

Dear Sir or Madam:

     The undersigned elects to exercise his/her Incentive Stock Option to purchase            shares of
Common Stock of DigitalGlobe, Inc. (the “Company”) under and pursuant to a Stock Option Agreement
dated as of                     .

     Delivered herewith is a certified or bank cashier’s or teller’s check in the amount of
$                    .

     The name or names to be on the stock certificate or certificates and the address and Social
Security Number(s) of such person(s) is as follows:

Name: 

Address: 

Social
Security
Number 

	 	 	 	 	 	 
	 	 	 Very truly yours, 	 
	 
	 	 	 	 
	 	 	 	 
	Date 	 	Optionee 	 
	 	 	 	 
	 

-2-

 

Exhibit 4

DIGITALGLOBE, INC.

2007 EMPLOYEE STOCK OPTION PLAN

 

Designation of Beneficiary

 

          In connection with the Awards designated below that I have received pursuant to the Plan, I
hereby designate the person specified below as the beneficiary upon my death of my interest in
Awards as defined in the Company’s 2007 Employee Stock Option Plan (the “Plan”). This designation
shall remain in effect until revoked in writing by me.

	 	 	 	 	 	 	 
	 

	 	Name of Beneficiary:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Social Security No.:	 	 	 	 
	 

	 	 	 	 

	 	 

          This beneficiary designation relates to any and all of my rights under the following Award or
Awards:

	 	o	 	any Award that I have received or ever receive under the Plan.

	 
	 	o	 	the                                Award that I received pursuant to an award
agreement dated                           ,            between myself and the Company.

          I understand that this designation operates to entitle the above-named beneficiary, in the
event of my death, to any and all of my rights under the Award(s) designated above from the date
this form is delivered to the Company until such date as this designation is revoked in writing by
me, including by delivery to the Company of a written designation of beneficiary executed by me on
a later date.

	 	 	 	 	 
	 	Date: 	 	 
	 	By:  	 	 
	 	 	Name of Participant 	 
	 	 	 	 

Sworn to before me this

         day of                     , 200  

                                                    

Notary Public

County of                                  

State of                                      

 

Exhibit 2

(This form is needed only when designating a non-spouse as a beneficiary)

( State of                          )

(                                        ) ss.

( County of                          )

SPOUSE’S CONSENT

TO

BENEFICIARY DESIGNATION

                                         (Name of Spouse), being duly sworn, deposes and says:

As the spouse of                                          (Name of Participant) — I have read the Designation of
Beneficiary form attached to this affidavit and completed by my spouse. I understand that:

1. My spouse has named an entity or a person other than me to receive benefits under the
DigitalGlobe, Inc. 2007 Employee Stock Option Plan. This benefit may consist of community property
in which I have an interest.

2. The designation of a beneficiary other than me will cause some or all of any benefits available
on my spouse’s death to be provided to the named beneficiary rather than to me.

3. If I do not voluntarily consent to my spouse’s beneficiary designation, the designation may be
invalid and I may receive the Plan benefits that may be available on my spouse’s death.

I hereby voluntarily consent to and join in the beneficiary selections made by my spouse by means
of the attached form. This affidavit of consent applies only to the attached form. As long as my
spouse allows this form to remain in force, I hereby waive any and all claim to benefits that I may
have under applicable law solely because of my status as the spouse of an employee. Prior to my
spouse’s death, I retain the right to revoke this consent at any time by delivering a written
revocation notice to the Company’s Human Resources Manager. Upon my spouse’s death, my consent
shall become irrevocable.

 
Signature of Spouse

Sworn to before me this

         day of                     , 200  

 

Notary Public

County of                                           

State ofexv10w20

 

Exhibit 10.20

DigitalGlobe, Inc.

2007 SUCCESS SHARING PLAN

PART I. PLAN DESCRIPTION

A. THE PLAN

1) Purpose and Objectives. This document sets forth the DigitalGlobe, Inc. 2007
Success Sharing Plan (the “Plan”) for eligible, non-commissionable Directors, Senior
Directors, and Vice Presidents. A key component of business strategy of DigitalGlobe,
Inc. (the “Company”) is to provide incentives to attract and retain outstanding
employees. The Plan is designed to recognize overall company success, departmental and
team contributions, as well as to reward individual contributions. By paying
competitive base salaries and providing the opportunity for an additional incentive
bonus, the Company targets total cash compensation that is aggressive relative to the
market.

2) Participant Eligibility. An employee shall be eligible to participate in this
Plan (and thus be a “Participant”) if the Company classifies the individual as (i)
having been employed with the Company on or before October 1, 2007 as a full-time
non-commissionable Director, Senior Director, or Vice President of the Company; (ii)
employed by the Company on the bonus payment date and as not having given notice of
intent to terminate employment (any employee who terminates employment with the Company
or provides notice of intent to do so before bonus payments are made is not eligible to
receive a bonus); and (iii) having been notified by the Company in writing of his or her
participation in the Plan.

(a) Employees Hired Or Promoted During 2007 Plan Year. Employees who are
hired, or promoted to a Plan-eligible position, after January 1, 2007 and who are
selected for Plan participation by the Company will be eligible for a prorated bonus,
prorated for the duration of their Plan participation during 2007. Employees hired or
promoted to an otherwise Plan-eligible position after October 1, 2007 are not eligible
to participate in the Plan.

(b) Change in Employment Status. In certain situations, employment status may
change mid-year from an otherwise eligible position to a non-eligible position (such
as a transition from full-time to part-time, change in employment classification,
leaves of absence, etc.). Under these circumstances, the employee may continue to be
eligible for a prorated bonus, prorated for the period of their Plan participation
during 2007. The Company, however, at its sole discretion, may elect to not permit
continued participation in the Plan for such employee and, consequently, he or she may
not be entitled to any bonus under the Plan.

3) Participant Ineligibility. No employee shall be eligible to receive a bonus
under the Plan if (i) he or she is not employed in good standing by the Company on the
bonus payment date; (ii) he or she has competed with the Company’s business during
employment with the Company or made plans to do so; or (iii) he or she has breached any
agreement with the Company or any Company policy.

4) Plan Termination or Amendment. The Plan will be in effect from January 1,
2007 through December 31, 2007, or such earlier date as the Plan is terminated. No
additional notice of Plan termination is necessary. However, the Company reserves the
right to implement a new incentive bonus plan or renew this Plan for future periods.
Any such action shall be in writing and signed by the Company’s Compensation Committee
or the Board of Directors. The Company reserves the right to amend or discontinue this
Plan at any time. The Plan may only be amended in writing by the Company’s Compensation
Committee or the Board of Directors. Participation in this Plan is not a guarantee of
participation in future Company incentive plans.

1

 

5) Scope. To ensure that our management teams are focused on common goals, all
Participants are on the same basic plan.

B. BONUSES

	 	 	 	 	 	 	 
	Participant Classification	 	Bonus Milestones	 	Total Cash	 	Total Options
	Directors and Senior
	 	FOC Bonus  1)	 	0%	 	7.5%
	Directors
	 	 	 	 	 	 
	 
	 	EBITDA Bonus Achievement @ 100% 2)	 	15%	 	7.5%
	 
	 		 	 	 	 
	Vice Presidents and above
	 	FOC Bonus  1)	 	0%	 	12.5%
	 
	 		 	 	 	 
	 
	 	EBITDA Bonus Achievement @ 100% 2)	 	25%	 	12.5%

1) FOC Bonus. In the event that the Company’s WV-1 satellite reaches Full
Operational Capability (“FOC”) on or before October 31, 2007, as determined by the
Company in its sole discretion, each Participant will be eligible to receive a FOC Bonus
(“FOC Bonus”) in the form of stock options with a Black-Scholes value (as determined by
the Company in its sole discretion) as of the date of grant equivalent to the target
percentage of the Participant’s Base Salary, subject to pro ration, as described above.
In the event the launch is delayed for reasons outside the Company’s control but occurs
in 2007, then the FOC Bonus will be payable as set forth herein if FOC is achieved
within 60 days of launch of the WV-1 satellite, as determined by the Company in its sole
discretion.

2) EBITDA Bonus. In addition to the FOC Bonus payable in connection with the
WV-1 satellite reaching FOC set forth in 1), an EBITDA Bonus (“EBITDA Bonus”) will be
payable if the Company reaches certain EBITDA targets in 2007. The target EBITDA bonus
(“Target EBITDA Bonus”) for each Participant classification is set forth below and is
based on a 2007 Company EBITDA target of $54.25 million (“Target EBITDA”)1.

The actual amount of a Participant’s Bonus based on EBITDA, if any, will be calculated as
described below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	% of TARGET EBITDA	 	Less than 90% of	 	At 90% of Targeted	 	100% of Targeted	 	At 140% of Targeted
	ACHIEVED	 	Targeted EBITDA	 	EBITDA	 	EBITDA	 	EBITDA
	EBITDA (in millions)
	 	Less than $48.73	 	$	48.73	 	 	$	54.25	 	 	$	76.33	 
	EBITDA Bonus
	 	 	0	%	 	 	50	%	 	 	100	%	 	Maximum bonus of
	(as a percentage of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	200	%
	the Target EBITDA
Bonus)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Calculation. If the Company achieves between 90% and 100% of Target
EBITDA, every 1% increase in EBITDA achievement will increase the EBITDA Bonus
payable by 5%. For example, if the Company achieves 93% of Target EBITDA, the
EBITDA Bonus payable would be 65% of the Target EBITDA Bonus. If the Company
achieves between 100% and 140% of the Target EBITDA, every 1% increase in
achievement will increase the EBITDA Bonus payable by 2.5%. For example, if the
Company achieves 115% of the Target EBITDA, the EBITDA Bonus payable would be
137.5% of the Target EBITDA Bonus. The maximum total EBITDA Bonus payable
under this Plan is 200% of the Target EBITDA Bonus (Cash and Stock Options),
payable upon achievement of 140% of the EBITDA Target (i.e., $125,000 in cash
and an EBITDA Bonus stock option with a Black-Scholes value of $62,500 in the
event of a base salary of $250,000). 

 

			
	1	 	“The original EBITDA target of $55.2 million is reduced
by $950,000 to reflect the change in accounting for certain overhead costs
associated with WV1 activities that resulted in a reclassification of those
costs from Capital Expenditures to Operating Expense.”

2

 

3) Bonus Payment. Any Bonus will be paid as described above no later than March
15, 2008. For the 2007 Plan Year, the stock option components of the Bonus will be
paid as follows:

(a) The Bonus stock options will vest 50% upon grant with the remaining options
vesting in 24 equal monthly installments thereafter, subject to the Participant’s
continued employment with the Company.

(b) The strike price will be the per share fair market value of company common stock
at the time of the option grant as determined by the Company in its sole discretion.

(c) The Bonus stock options will be granted pursuant to the Company’s 2007 Employee
Stock Option Plan and subject in all respects to the terms and conditions of such plan
and related documents.

4) Definitions.

(a) “Base Salary” means an employee’s straight time rate of pay,
calculated on an annual basis, in effect on the date the employee’s Plan participation
commences as determined by the Company in its sole discretion. Base Salary does not
include pay for commissions, overtime, shift differential, or any other premiums,
bonuses, or incentive compensation or expense reimbursements, etc.

(b) “Bonus” means the actual amount to be paid to a Participant under the
terms of this Plan, which may include the FOC Bonus and the EBITDA Bonus.

(c) “EBITDA” means (a) consolidated Net Income of the Company for calendar
year 2007 minus, (b) to the extent added to determine such consolidated Net Income,
the sum of (1) non-cash revenue representing amortization of pre-FOC payments made to
DG by NGA for the construction of WV-1, (2) interest income, and (3) any extraordinary
or unusual gains or other gains not incurred in the ordinary course of business, in
each case determined by the Company in its sole discretion plus, (c) to the extent
deducted to determine such consolidated Net Income, the sum of (1) depreciation
expense, (2) interest expense, (3) amortization expense, (4) tax expense, and (5) any
extraordinary or unusual losses or other losses not incurred in the ordinary course of
business in each case determined by the Company in its sole discretion.

(d) “Net Income” means the consolidated Net Income of the Company and its
subsidiaries for calendar year 2007 as determined by the Company in accordance with
Generally Accepted Accounting Principles.

PART II. MISCELLANEOUS

A. PLAN ADMINISTRATION

The Company is responsible for the general administration and management of the Plan and
shall have all powers and duties necessary to fulfill its responsibilities including, but not
limited to, the discretion to interpret and apply the Plan and to determine all questions
relating to eligibility for benefits. The Company and its delegates shall have the
discretion to interpret or construe ambiguous, unclear, or implied (but omitted) terms in any
fashion they deem to be appropriate in their sole and absolute discretion, and to make any
findings of fact needed in the administration of the Plan. The validity of any such
interpretation, construction, decision, or finding of fact shall not be given de novo review
if challenged in court, by arbitration, or in any other forum, and shall be upheld unless
clearly arbitrary or capricious.

B. DRAFTING ERRORS

If, due to errors in drafting, any Plan provision does not accurately reflect its intended
meaning, as demonstrated by consistent interpretations or other evidence of intent, or as
determined by the Company in its sole and absolute discretion, the provision shall be
considered ambiguous and shall be interpreted by the Company and its delegates in a fashion
consistent with its intent, as determined in the Company’s sole and absolute discretion.

3

 

C. ENTIRE STATEMENT

The Plan, including all documentation referred to herein, is a complete and exclusive
statement of the agreement between the parties relating to this subject matter. This Plan
supersedes all prior communications, oral or written, concerning this subject matter. Any
provision of the Plan that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

D. NO EMPLOYMENT AGREEMENT

This Plan is not to be construed as an employment agreement and in no way limits the right of
the Company to terminate the employment of any Participant at any time, with or without
cause. Each Participant’s employment with the Company is, and continues to be, “at-will”
with either party having the right to terminate the employment relationship at any time, with
or without cause or advance notice. By Participating in the Plan, each Participant
acknowledges his or her at-will employment status and that such at-will status only may be
changed by a written document signed by the Participant and the Company’s CEO. Except to the
extent governed by federal law, the Plan is governed by the laws of the State of Colorado,
excluding choice of law principles.

E. ISSUE RESOLUTION

In the event that there is a dispute between the Company and a Participant over any
compensation alleged to be due including, but not limited to, disputes concerning the
Participant’s Bonus, the Participant must immediately bring such dispute to the attention of
the Vice President, Human Resources. The Participant and the Vice President, Human Resources
shall use their commercially reasonable efforts to resolve any such dispute on an informal
basis. In the event that such dispute cannot be resolved on an informal basis, the
Participant must arbitrate any controversy or claim in accordance with the Dispute Resolution
Agreement, a copy of which is attached as Appendix A, which the Participant must sign as a
precondition to Plan participation.

F. TAX WITHHOLDINGS

The Company may withhold from any payments made under this Plan all applicable taxes and
other withholdings including, but not limited to, Federal, state and local income, employment
and social insurance taxes, as it determines are required or permitted by law. All amounts
paid to Participants under this Plan will be treated as compensation, and each Participant
agrees to such treatment by accepting a payment under the Plan. The Company cannot guarantee
the tax treatment of any payments under the Plan and each Participant agrees that he or she,
and not the Company, shall be liable for any excise taxes, penalties, or interest imposed on
the Participant.

G. SOURCE OF PLAN ASSETS

The Plan shall be unfunded. Payments under the Plan shall be made from the general assets of
the Company. To the extent any Participants have any right to payments under the Plan, such
Participants shall be general unsecured creditors of the Company. No Participant shall have
any right, title, claim or interest in or with respect to any specific assets of the Company
or any of its affiliates in connection with the Participant’s participation in the Plan

H. PARTICIPANT WARRANTIES

By participating and receiving the benefits of the Plan, each Participant acknowledges and
agrees that: (i) the Participant has read and understood the terms and conditions specified
in the Plan; (ii) the terms and conditions specified in the Plan are fair and reasonable;
(iii) neither the Company nor any person acting on its behalf has made any representation or
other inducement to the Participant to enter into the Plan, except for the representations or
inducements expressly set out in the Plan; (iv) the Participant has not entered into the Plan
in reliance on any representation or inducement by or on behalf of the Company (nor any
person acting on its behalf) or any other party, other than representations or inducements
expressly set out in the Plan; and (v) no person, other than the Company’s Compensation
Committee or the Board of Directors, has the authority to interpret this Plan and the
Participant shall not rely on any interpretation, representation or inducement by or on

4

 

behalf of the Company unless it is in writing and signed by a member of the Company’s
Compensation Committee or the Board of Directors. 

DigitalGlobe, Inc. 2007 Success Sharing Plan

Participant Acknowledgement

The following Participant has reviewed a copy of the DigitalGlobe, Inc. 2007 Success Sharing
Plan and hereby acknowledges and agrees to its terms, which are incorporated by reference as
though fully set forth herein.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Signature: 	 	 	 	 
	 

	 	 

	 	 
	 	 	 

	 	 
	 

	 	 	 	 	 	 	Name: 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

5

 

APPENDIX A

DISPUTE RESOLUTION AGREEMENT

DigitalGlobe, Inc. (the “Company”) and I expect to treat each other in a professional manner.
By doing so, we believe that we will be able to resolve any disagreement by sitting down and
discussing the matter, respectfully listening to the other side’s concerns, and working
together to find a solution to the problem. In the event that we fail to resolve any legally
actionable dispute through this method, we understand that litigation is a costly and
time-consuming process, and agree that we will exclusively resolve that dispute by binding
arbitration. We understand that this agreement to arbitrate covers all disputes that the
Company may have against me, or that I might have against the Company or its related entities
or employees, including those that relate to my employment or termination of employment (for
example claims of unlawful discrimination or harassment) or any compensation or bonus plans.

The arbitration will be conducted by an impartial arbitrator experienced in employment law
(mutually selected from either the JAMS panel of arbitrators) in accordance with JAMS
then-current employment arbitration rules (except as otherwise provided in this agreement).
We waive the right to institute a court action, except for requests for injunctive relief
pending arbitration, and understand that we are giving up our right to a jury trial. The
arbitrator’s award and opinion shall be in writing and in the form typically rendered in
labor and employment arbitrations.

To the extent permitted by applicable law, the fees and costs of the arbitrator shall be
shared equally. If not permitted by applicable law, the Company shall pay the fees and costs
of the arbitrator. Each of us shall be responsible for our own attorneys’ fees and costs;
however, the arbitrator may award attorneys’ fees and arbitrator’s fees to the prevailing
party, if permitted by applicable law. This arbitration agreement does not prohibit either
of us from filing a claim with an administrative agency (e.g., the EEOC), nor does it apply
to claims for workers’ compensation or unemployment benefits, or claims for benefits under an
employee welfare or pension plan that specifies a different dispute resolution procedure.
The arbitration shall take place in the city in which I was last employed, unless we agree
otherwise. This agreement can only be changed or modified by a written agreement signed by
both parties and shall continue in existence indefinitely.

	 	 	 	 	 	 	 	 	 	 	 
	DigitalGlobe, Inc.	 	 	 	Participant Name	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	 	 	Signature: 
	 	 	 	 
	 

	 
	 	 	 	 	 	 	 	 
	 	Name: 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	Title: 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:

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