Document:

Exhibit 4.6

 

RESUMIX, INC.

1998 NON-EMPLOYEE DIRECTORS’ STOCK OPTION
PLAN

ADOPTED ON AUGUST 13, 1998

APPROVED BY SHAREHOLDERS ON AUGUST 13, 1998

 

1. PURPOSE.

 

(a) The purpose of the 1998 Non-Employee Directors’ Stock Option Plan
(the “Plan”) is to provide a means by which each person who is a member of the
Board of Directors (the “Board”) of RESUMIX, INC, a New Jersey corporation (the
“Company”), and who is not otherwise, at the time of grant of an option under
the Plan, an employee of the Company or of any Affiliate of the Company (each
such person being hereinafter referred to as a “Non-Employee Director”) will be
given an opportunity to purchase stock of the Company.

 

(b) The word “AFFILIATE” as used in the Plan means any parent
corporation or subsidiary corporation of the Company as those terms are defined
in Sections 424(e) and (f), respectively, of the Internal Revenue Code of 1986,
as amended from time to time (the “Code”), and shall be deemed to include the
General Atlantic Partners family of investment funds. The term “LISTING DATE”
means the first date upon which any security of the Company is listed (or
approved for listing) upon notice of issuance on any securities exchange or
designated (or approved for designation) upon notice of issuance as a national
market security on an interdealer quotation system if such securities exchange
or interdealer quotation system has been certified in accordance with the
provisions of Section 25100(o) of the California Corporate Securities Law of
1968.

 

(c) The Company, by means of the Plan, seeks to retain the services of
persons now serving as Non-Employee Directors of the Company, to secure and
retain the services of persons capable of serving in such capacity, and to
provide incentives for such persons to exert maximum efforts for the success of
the Company.

 

2. ADMINISTRATION.

 

(a) The Plan shall be administered by the Board of Directors of the
Company (the “Board”) unless and until the Board delegates administration to a
committee, as provided in subsection 2(b).

 

(b) The Board may delegate administration of the Plan to a committee
comprising not fewer than two (2) members of the Board (the “Committee”). If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore
possessed by the Board, subject, however, to such resolutions, not inconsistent
with the provisions of the Plan, as may be adopted from time to time by the
Board. The Board may abolish the Committee at any time and revest in the Board
the administration of the Plan.

 

 

3. SHARES SUBJECT TO THE PLAN.

 

(a) Subject to the provisions of Section 10 relating to adjustments
upon changes in stock, the stock that may be sold pursuant to options granted
under the Plan shall not exceed in the aggregate fifty thousand (50,000) shares
of the Company’s common stock. If any option granted under the Plan shall for
any reason expire or otherwise terminate without having been exercised in full,
the stock not purchased under such option shall again become available for the
Plan.

 

(b) The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

 

4. ELIGIBILITY.

 

Options shall be granted only to Non-Employee Directors of the Company.

 

5. NON-DISCRETIONARY GRANTS.

 

(a) Upon the date of the approval of the Plan by the Board (the
“Adoption Date”), each person who is then a Non-Employee Director automatically
shall be granted an option to purchase twenty-four thousand (24,000) shares of
common stock of the Company on the terms and conditions set forth herein.

 

(b) Each person who is, after the Adoption Date, elected for the first
time to be a Non-Employee Director automatically shall, upon the date of his or
her initial election to be a Non-Employee Director by the Board or shareholders
of the Company, be granted an option to purchase twenty-four thousand (24,000)
shares of common stock of the Company on the terms and conditions set forth
herein.

 

(c) On the third anniversary from the date of grant of an option under
subsection 5(a) or subsection 5(b), the holder of such an option who is then a
Non-Employee Director, automatically shall be granted an option to purchase
twenty-four thousand (24,000) shares of common stock of the Company on the
terms and conditions set forth herein.

 

(d) Notwithstanding the foregoing, if on a grant date under this
Section 5, the number of shares reserved under the Plan and not subject to
outstanding options is less than the number of shares to be granted subject to
options on such date, then the number of such remaining shares shall be
allocated first to the making of grants under subsection 5(b) of the Plan
(pro-rated if necessary), and any remaining number of such shares shall then be
allocated pro-rata among the option grants to be made under subsection 5(c).

 

6. OPTION PROVISIONS.

 

Each option shall be subject to the following terms and conditions:

 

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(a) The term of each option commences on the date it is granted and,
unless sooner terminated as set forth herein, expires on the date (“Expiration
Date”) ten (10) years from the date of grant. If the optionee’s service as a
Non-Employee Director of the Company or any Affiliate terminates for any reason
or for no reason, the option shall terminate on the earlier of the Expiration
Date or the date three (3) months following the date of termination of such
service; PROVIDED, HOWEVER, that if such termination of service is due to (i)
the optionee’s death, the option shall terminate on the earlier of the
Expiration Date or eighteen (18) months following the date of the optionee’s
death (ii) the optionee’s disability, the option shall terminate on the earlier
of the Expiration Date or twelve (12) months following the date of the
optionee’s disability. In any and all circumstances, an option may be exercised
following termination of the optionee’s service as a Non-Employee Director of
the Company or any Affiliate only as to that number of shares as to which it
was exercisable as of the date of termination of such service under the
provisions of subsection 6(e).

 

(b) The exercise price of each option shall be one hundred percent
(100%) of the fair market value of the stock subject to such option on the date
such option is granted. Notwithstanding the foregoing, prior to the effective
date of the first registration of an equity security of the Company under
Section 12 of the Securities Exchange Act of 1934, as amended, if any person to
whom an option is to be granted under the Plan owns stock possessing more than
ten percent (10%) of the total combined voting power or value of all classes of
stock of the Company or of any of its Affiliates, the option exercise price
shall be one hundred ten percent (110%) of the fair market value of such stock
at the date of grant.

 

(c) The optionee may elect to make payment of the exercise price under
one of the following alternatives:

 

(i) Payment of the exercise price per share in cash at the time of
exercise; or

 

(ii) Provided that at the time of the exercise the Company’s common
stock is publicly traded and quoted regularly in the Wall Street Journal,
payment by delivery of shares of common stock of the Company already owned by
the optionee, held for the period required to avoid a charge to the Company’s
reported earnings, and owned free and clear of any liens, claims, encumbrances
or security interest, which common stock shall be valued at its fair market
value on the date preceding the date of exercise; or

 

(iii) Payment by a combination of the methods of payment specified in
subsection 6(c)(i) and 6(c)(ii) above. Notwithstanding the foregoing, this
option may be exercised pursuant to a program developed under Regulation T as
promulgated by the Federal Reserve Board which results in the receipt of cash
(or check) by the Company either prior to the issuance of shares of the
Company’s common stock or pursuant to the terms of irrevocable instructions
issued by the optionee prior to the issuance of shares of the Company’s common
stock.

 

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(d) An option shall not be transferable except by will or by the laws
of descent and distribution, or pursuant to a domestic relations order
satisfying the requirements of Rule 16b-3 under the Securities Exchange Act of 1934
(“Rule 16b-3”) and shall be exercisable during the lifetime of the person to
whom the option is granted only by such person (or by his guardian or legal
representative) or transferee pursuant to such an order. Notwithstanding the
foregoing, the optionee may, by delivering written notice to the Company in a
form satisfactory to the Company, designate a third party who, in the event of
the death of the optionee, shall thereafter be entitled to exercise the option.

 

(e) The option shall become exercisable as follows:

 

(i) The option shall become exercisable, starting from the grant date,
at the rate of one thirty-sixth (1/36th) of the number of shares subject to the
option at the end of each month for so long as the optionee continues service
as a Non-Employee Director of the Company or any Affiliate of the Company,
whereupon such option shall become fully exercisable in accordance with its
terms with respect to that portion of the shares represented by that
installment.

 

(ii) In the event the optionee’s service as a Non-Employee Director
terminates as a result of the optionee’s death, the vesting of the option that
would have occurred under the option, but for the optionee’s death, during the
period beginning on the date of death and ending on the date that is six (6)
months from the date of death, shall accelerate and the option shall be
exercisable for such number of shares in addition to the number of shares for
which it was exercisable on the date of death.

 

(iii) If so provided in the option agreement, the optionee may elect at
any time before the optionee’s service as a Non-Employee Director terminates to
exercise the option as to any part or all of the shares subject to the option
prior to the full vesting of the option. Any unvested shares so purchased shall
be subject to an unvested share repurchase option in favor of the Company. The
price of any such repurchase option shall be the original purchase price (or
the exercise price).

 

(f) The Company may require any
optionee, or any person to whom an option is transferred under subsection 6(d),
as a condition of exercising any such option: (i) to give written assurances
satisfactory to the Company as to the optionee’s knowledge and experience in
financial and business matters; and (ii) to give written assurances
satisfactory to the Company stating that such person is acquiring the stock
subject to the option for such person’s own account and not with any present
intention of selling or otherwise distributing the stock. These requirements,
and any assurances given pursuant to such requirements, shall be inoperative if
(i) the issuance of the shares upon the exercise of the option has been
registered under a then-currently-effective registration statement under the
Securities Act of 1933, as amended (the “Securities Act”), or (ii), as to any
particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable
securities laws. The Company may require any optionee to provide such other
representations, written assurances or information which the Company shall
determine is 

 

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necessary, desirable or
appropriate to comply with applicable securities laws as a condition of granting
an option to the optionee or permitting the optionee to exercise the option.
The Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the stock.

 

(g) Notwithstanding anything to the contrary contained herein, an
option may not be exercised unless the shares issuable upon exercise of such
option are then registered under the Securities Act or, if such shares are not
then so registered, the Company has determined that such exercise and issuance
would be exempt from the registration requirements of the Securities Act.

 

(h) The Company (or a
representative of the underwriters) may, in connection with the first
underwritten registration of the offering of any securities of the Company
under the Securities Act, require that any optionee not sell or otherwise
transfer or dispose of any shares of common stock or other securities of the
Company during such period (not to exceed one hundred eighty (180) days)
following the effective date of the registration statement of the Company filed
under the Securities Act as may be requested by the Company or the
representative of the underwriters.

 

7. COVENANTS OF THE COMPANY.

 

(a) During the terms of the options granted under the Plan, the Company
shall keep available at all times the number of shares of stock required to
satisfy such options.

 

(b) The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the options granted under the
Plan; PROVIDED, HOWEVER, that this undertaking shall not require the Company to
register under the Securities Act either the Plan, any option granted under the
Plan, or any stock issued or issuable pursuant to any such option. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems
necessary for the lawful issuance and sale of stock under the Plan, the Company
shall be relieved from any liability for failure to issue and sell stock upon
exercise of such options.

 

8. USE OF PROCEEDS FROM STOCK.

 

Proceeds from the sale of stock pursuant to options granted under the
Plan shall constitute general funds of the Company.

 

9. MISCELLANEOUS.

 

(a) Neither an optionee nor any person to whom an option is transferred
under subsection 6(d) shall be deemed to be the holder of, or to have any of
the rights of a holder with 

 

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respect to, any shares subject to such option unless and until such
person has satisfied all requirements for exercise of the option pursuant to
its terms.

 

(b) Throughout the term of any option granted pursuant to the Plan, the
Company shall make available to the holder of such option, not later than one
hundred twenty (120) days after the close of each of the Company’s fiscal years
during the option term, upon request, such financial and other information
regarding the Company as comprises the annual report to the shareholders of the
Company provided for in the Bylaws of the Company and such other information
regarding the Company as the holder of such option may reasonably request.

 

(c) Nothing in the Plan or in any instrument executed pursuant thereto
shall confer upon any Non-Employee Director any right to continue in the
service of the Company or any Affiliate in any capacity or shall affect any
right of the Company, its Board or shareholders or any Affiliate to remove any
Non-Employee Director pursuant to the Company’s By-Laws and the provisions of
the California General Corporation Law (or the applicable laws of the Company’s
state of incorporation if the Company’s state of incorporation should change in
the future).

 

(d) No Non-Employee Director, individually or as a member of a group,
and no beneficiary or other person claiming under or through him, shall have
any right, title or interest in or to any option reserved for the purposes of
the Plan except as to such shares of common stock, if any, as shall have been
reserved for him pursuant to an option granted to him.

 

(e) In connection with each option made pursuant to the Plan, it shall
be a condition precedent to the Company’s obligation to issue or transfer
shares to a Non-Employee Director, or to evidence the removal of any
restrictions on transfer, that such Non-Employee Director make arrangements
satisfactory to the Company to insure that the amount of any federal or other
withholding tax required to be withheld with respect to such sale or transfer,
or such removal or lapse, is made available to the Company for timely payment
of such tax.

 

(f) As used in this Plan, “fair market value” means, as of any date,
the value of the common stock of the Company determined as follows and in each
case in a manner consistent with Section 260.140.50 of Title 10 of the
California Code of Regulations:

 

(i) If the common stock is listed on any established stock exchange or
a national market system, including without limitation the National Market
System of the National Association of Securities Dealers, Inc. Automated
Quotation (“NASDAQ”) System, the Fair Market Value of a share of common stock
shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such system or exchange (or the exchange with
the greatest volume of trading in common stock) on the last market trading day
prior to the day of determination, as reported in the Wall Street Journal or
such other source as the Board deems reliable;

 

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(ii) If the common stock is quoted on the NASDAQ System (but not on the
National Market System thereof) or is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a share of common stock shall be the mean between the bid and asked prices for
the common stock on the last market trading day prior to the day of
determination, as reported in the Wall Street Journal or such other source as
the Board deems reliable;

 

(iii) In the absence of an established market for the common stock, the
Fair Market Value shall be determined in good faith by the Board.

 

10. ADJUSTMENTS UPON CHANGES IN
STOCK.

 

(a) If any change is made in the stock subject to the Plan, or subject
to any option granted under the Plan (through merger, consolidation,
reorganization, recapitalization, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange
of shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan and outstanding options will
be appropriately adjusted in the class(es) and maximum number of shares subject
to the Plan and the class(es) and number of shares and price per share of stock
subject to outstanding options. Such adjustments shall be made by the Board,
the determination of which shall be final, binding and conclusive. (The
conversion of any convertible securities of the Company shall not be treated as
a “transaction not involving the receipt of consideration by the Company.”)

 

(b) “CORPORATE-DEFINING EVENT” means:

 

(i) a dissolution, liquidation, or sale of all or substantially all of
the assets of the Company, or

 

(ii) a merger or consolidation in which the Company is not the
surviving corporation, or

 

(iii) a reverse merger in which the Company is the surviving
corporation but the shares of the Company’s common stock outstanding
immediately preceding the merger are converted by virtue of the merger into
other property, whether in the form of securities, cash or otherwise, or

 

(iv) after the Listing Date, the acquisition by any person, entity or
group within the meaning of Section 13(d) or 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) or any comparable successor
provisions (excluding any employee benefit plan, or related trust, sponsored or
maintained by the Company or any Affiliate of the Company) of the beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act,
or comparable successor rule) of securities of the Company representing at
least fifty percent (50%) of the combined voting power entitled to vote in the
election of directors, or

 

7

 

(v) after the Listing Date, individuals who, as of the date of the
adoption of this Plan, are members of the Board (the “Incumbent Board”),
ceasing for any reason to constitute at least fifty percent (50%) of the Board,
unless the election, or nomination for election, by the Company’s shareholders
of any new director was approved by a vote of at least fifty percent (50%) of
the Incumbent Board, in which case such new director shall be considered as a
member of the Incumbent Board.

 

(c) If there is a Corporate-Defining Event, then to the extent not
prohibited by applicable law, the vesting of options outstanding under the Plan
shall accelerate in full prior to such Corporate-Defining Event and (i) if the
Corporate-Defining Event is described under subsections 10(b)(i), 10(b)(ii), or
10(b)(iii), then the options shall terminate if neither exercised after such
acceleration and at or prior to such event, nor assumed or converted into
substantially similar options; or (ii) if the Corporate-Defining Event is
described under subsections 10(b)(iv) or 10(b)(v), then the options shall
otherwise continue in accordance with their terms and the Plan.

 

(d) Notwithstanding other provisions of the Plan: if potential
acceleration of vesting (and exercisability) would BY ITSELF result in a
transaction that would otherwise be eligible to be accounted for as a “pooling
of interests” accounting transaction becoming ineligible for such accounting
treatment; and the potential acquiring or surviving corporation of the
transaction desires to account for such transaction as a “pooling of interests”
transaction, then such acceleration shall not occur. Additionally, in the event
that the restrictions upon acceleration provided for in the immediately
preceding sentence BY ITSELF would result in the transaction becoming
ineligible to be accounted for as a “pooling of interests” accounting
transaction, then such restrictions (and such acceleration) shall be deemed
inoperative. Accounting issues shall be determined by the Company’s independent
public accountants applying generally accepted accounting principles.

 

11. AMENDMENT OF THE PLAN.

 

(a) The Board at any time, and from time to time, may amend the Plan
and/or some or all outstanding options granted under the Plan. Except as
provided in Section 10 relating to adjustments upon changes in stock, no
amendment shall be effective unless approved by the shareholders of the Company
within twelve (12) months before or after the adoption of the amendment, where
the amendment will:

 

(i) Increase the number of shares which may be issued under the Plan;

 

(ii) Modify the requirements as to eligibility for participation in the
Plan (to the extent such modification requires shareholder approval in order
for the Plan to comply with the requirements of Rule 16b-3); or

 

(iii) Modify the Plan in any other way if such modification requires
shareholder approval in order for the Plan to comply with the requirements of
Rule 16b-3 or Section 162(m) of the Internal Revenue Code.

 

8

 

(b) Rights and obligations under any option granted before any
amendment of the Plan shall not be impaired by such amendment unless (i) the
Company requests the consent of the person to whom the option was granted and
(ii) such person consents in writing.

 

12. TERMINATION OR SUSPENSION
OF THE PLAN.

 

(a) The Board may suspend or terminate the Plan at any time. Unless
sooner terminated, the Plan shall terminate on the day before the tenth (10th)
anniversary of the date the Plan is adopted by the Board or approved by the
shareholders of the Company, whichever is earlier.

 

(b) Rights and obligations under any option granted while the Plan is
in effect shall not be impaired by suspension or termination of the Plan,
except with the consent of the person to whom the option was granted.

 

13. EFFECTIVE DATE OF PLAN; CONDITIONS OF EXERCISE.

 

(a) The Plan shall become effective upon adoption by the Board of
Directors, subject to the condition subsequent that the Plan is approved by the
shareholders of the Company.

 

(b) No option granted under the Plan shall be exercised or exercisable
unless and until the condition of subsection 13(a) above has been met.

 

9Exhibit 4.7

 

RESUMIX, INC.

2000 STOCK OPTION PLAN

ARTICLE I

GENERAL PROVISIONS

 

1.1. PURPOSE OF THE PLAN. This 2000 Stock Option Plan is intended to
promote the interests of Resumix, Inc., a Delaware corporation, by providing
eligible persons with the opportunity to acquire a proprietary interest, or
else to increase their proprietary interest, in the Corporation as an incentive
for them to remain in the service of the Corporation.

 

Capitalized terms shall have the meanings assigned to such terms in the
attached Appendix.

 

1.2. STRUCTURE OF THE PLAN. (a) The Plan shall consist of a
Discretionary Option Grant Program under which eligible persons may, at the
discretion of the Plan Administrator, be granted options to purchase shares of
Common Stock.

 

(b) The provisions of Articles One and Three shall apply to the Plan
and shall govern the interests of all persons under the Plan.

 

1.3. ADMINISTRATION OF THE PLAN. (a) The following provisions shall
govern the administration of the Plan:

 

(i) The Board shall have the authority to administer the Discretionary
Option Grant Program with respect to Section 16 Insiders but may delegate such
authority in whole or in part to the Primary Committee.

 

(ii) Administration of the Discretionary Option Grant Program with
respect to all other persons eligible to participate in such program may, at
the Board’s discretion, be vested in the Primary Committee or a Secondary
Committee, or the Board may retain the power to administer such program with
respect to all such persons.

 

(b) Each Plan Administrator shall, within the scope of its
administrative jurisdiction under the Plan, have full power and authority
subject to the provisions of the Plan:

 

(i) to establish such rules as it may deem appropriate for proper
administration of the Plan, to make all factual determinations, to construe and
interpret the provisions of the Plan and the awards thereunder and to resolve
any and all ambiguities thereunder;

 

(ii) to determine, with respect to awards made under the Discretionary
Option Grant Program, which eligible persons are to receive such awards; the
time or times when such awards are to be made; the number of shares to be
covered by each such award; following the Plan Effective Date, the vesting
schedule (if any) applicable to the award; the status of a granted option as
either an Incentive Option or a Non-Statutory Option and the maximum term for
which the option is to remain outstanding;

 

 

(iii) to amend, modify or cancel any outstanding award with the consent
of the holder or accelerate the vesting of such award; and

 

(iv) to take such other discretionary actions as permitted pursuant to
the terms of the Plan.

 

Decisions of each Plan Administrator within the scope of its
administrative functions under the Plan shall be final and binding on all
parties.

 

(c) Members of the Primary Committee or any Secondary Committee shall
serve for such period of time as the Board may determine and may be removed by
the Board at any time. The Board may also at any time terminate the functions
of any Secondary Committee and reassume all powers and authority previously
delegated to such committee.

 

(d) Service on the Primary Committee or the Secondary Committee shall
constitute service as a Board member, and members of each such committee shall
accordingly be entitled to full indemnification and reimbursement as Board
members for their service on such committee. No member of the Primary Committee
or the Secondary Committee shall be liable for any act or omission made in good
faith with respect to the Plan or any options under the Plan.

 

1.4. ELIGIBILITY. The persons eligible to participate in the
Discretionary Option Grant Program are the Employees.

 

1.5. STOCK SUBJECT TO THE PLAN. (a) The stock issuable under the Plan
shall be shares of authorized but unissued or reacquired Common Stock,
including shares repurchased by the Corporation on the open market. The maximum
number of shares of Common Stock initially reserved for issuance over the term
of the Plan shall not exceed 4,500,000 shares of Common Stock.

 

(b) No one person participating in the Plan may receive options for
more than 850,000 shares of Common Stock in the aggregate per calendar year,
beginning with the 2000 calendar year.

 

(c) Shares of Common Stock subject to outstanding options shall be available
for subsequent issuance under the Plan to the extent those options expire,
terminate or are cancelled for any reason prior to exercise in full. Unvested
shares issued under the Plan and subsequently repurchased by the Corporation,
at the original exercise or issue price paid per share, pursuant to the
Corporation’s repurchase rights under the Plan shall be added back to the
number of shares of Common Stock reserved for issuance under the Plan and shall
accordingly be available for reissuance through one or more subsequent options
under the Plan. However, should the exercise price of an option under the Plan
be paid with shares of Common Stock or should shares of Common Stock otherwise
issuable under the Plan be withheld by the Corporation in satisfaction of the
withholding taxes incurred in connection with the exercise of an option under
the Plan, then the number of shares of Common Stock available for issuance
under the Plan shall be 

 

2

 

reduced by the gross number of shares for which the option is
exercised, and not by the net number of shares of Common Stock issued to the
holder of such option.

 

(d) Except for the transactions contemplated in the Merger Agreement
(which are handled in paragraph (e) below), if any change is made to the Common
Stock by reason of any stock split, stock dividend, recapitalization, merger,
reorganization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, appropriate adjustments shall be made to

 

(i) the maximum number and/or class of securities issuable under the
Plan,

 

(ii) the number and/or class of securities for which any one person may
be granted options under this Plan per calendar year, and

 

(iii) the number and/or class of securities and the exercise price per
share in effect under each outstanding option under the Plan.

 

Such adjustments to the outstanding options are to be effected in a
manner which shall preclude the enlargement or dilution of rights and benefits
under such options. The adjustments determined by the Plan Administrator shall
be final, binding and conclusive. In no event shall any such adjustments be
made in connection with the conversion of one or more outstanding shares of the
Corporation’s preferred stock into shares of Common Stock.

 

(e) Upon the consummation of the transactions contemplated in the
Merger Agreement, each of

 

(i) the maximum number and/or class of securities issuable under the
Plan shall be adjusted to become a number of shares of Common Stock equal to
the product of (A) 4.5 million and (B) the Conversion Number,

 

(ii) the number and/or class of securities for which any one person may
be granted options under this Plan per calendar year shall be adjusted to
become a number of shares of Common Stock equal to the product of (A) 850,000
and (B) the Conversion Number, and

 

(iii) the number and/or class of securities and the exercise price per
share in effect under each outstanding option under the Plan shall be adjusted
in the manner described in the Merger Agreement.

 

ARTICLE II

DISCRETIONARY OPTION GRANT PROGRAM

 

2.1. OPTION TERMS. Each option shall be evidenced by one or more
documents in the form approved by the Plan Administrator; PROVIDED, however,
that each such 

 

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document shall comply with the terms specified below. Each document
evidencing an Incentive Option shall, in addition, be subject to the provisions
of the Plan applicable to such options.

 

2.2. EXERCISE PRICE.

 

(a) The exercise price per share shall be fixed by the Plan
Administrator at the time of the option grant, but shall not be less than the
Fair Market Value of a share of Common Stock at the time of the option grant.

 

(b) The exercise price shall become immediately due upon exercise of
the option and shall, subject to the documents evidencing the option, be
payable in cash or check made payable to the Corporation. Should the Common
Stock be registered under Section 12 of the 1934 Act at the time the option is
exercised, then the exercise price may also be paid as follows:

 

(i) through shares of Common Stock held for the requisite period
necessary to avoid a charge to the Corporation’s earnings for financial reporting
purposes and valued at Fair Market Value on the Exercise Date, or

 

(ii) to the extent the option is exercised for vested shares, through a
special sale and remittance procedure pursuant to which the Optionee shall
concurrently provide irrevocable instructions to (A) a Corporation-approved
brokerage firm to effect the immediate sale of the purchased shares and remit
to the Corporation, out of the sale proceeds available on the settlement date,
sufficient funds to cover the aggregate exercise price payable for the
purchased shares plus all applicable Federal, state and local income and
employment taxes required to be withheld by the Corporation by reason of such
exercise and (B) the Corporation to deliver the certificates for the purchased
shares directly to such brokerage firm in order to complete the sale.

 

Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

 

2.3. EXERCISE AND TERM OF
OPTIONS. (a) In respect of any options granted prior to the Plan Effective
Date, 25% of the shares subject to any and all such options shall become
exercisable on the first anniversary of the date of grant; and the remainder of
the shares subject to such options shall become exercisable in equal monthly
installments over the 36 month period immediately following the first
anniversary of the date of grant.

 

(b) With respect to options granted after the Plan Effective Date, each
option shall be exercisable at such time or times, during such period and for
such number of shares as shall be determined by the Plan Administrator and set
forth in the documents evidencing the option.

 

(c) However, no option shall have a term in excess of ten (10) years
measured from the option grant date.

 

4

 

2.4. CESSATION OF SERVICE. (a) The following provisions shall govern
the exercise of any options outstanding at the time of the Optionee’s cessation
of Service or death:

 

(i) Any option outstanding at the time of the Optionee’s cessation of
Service for any reason shall remain exercisable for such period of time
thereafter as shall be determined by the Plan Administrator and set forth in
the documents evidencing the option, but no such option shall be exercisable
after the expiration of the option term.

 

(ii) Any option exercisable in whole or in part by the Optionee at the
time of death may be subsequently exercised by his or her Beneficiary.

 

(iii) During the applicable post-Service exercise period, the option
may not be exercised in the aggregate for more than the number of vested shares
for which the option is exercisable on the date of the Optionee’s cessation of
Service except as such number may be changed pursuant to Section 1.5(d) above.
Upon the expiration of the applicable exercise period or (if earlier) upon the
expiration of the option term, the option shall terminate and cease to be
outstanding for any vested shares for which the option has not been exercised.
However, the option shall, immediately upon the Optionee’s cessation of
Service, terminate and cease to be outstanding to the extent the option is not
otherwise at that time exercisable for vested shares.

 

(iv) Should the Optionee’s Service be terminated for Misconduct or
should the Optionee engage in Misconduct while his or her options are
outstanding, then all such options shall terminate immediately and cease to be
outstanding.

 

(b) The Plan Administrator shall have complete discretion, exercisable
either at the time an option is granted or at any time while the option remains
outstanding:

 

(i) to extend the period of
time for which the option is to remain exercisable following the Optionee’s
cessation of Service to such period of time as the Plan Administrator shall
deem appropriate, but in no event beyond the expiration of the option term,
and/or

 

(ii) to permit the option to be exercised, during the applicable
post-Service exercise period, for one or more additional installments in which
the Optionee would have vested had the Optionee continued in Service.

 

2.5. STOCKHOLDER RIGHTS. The holder of an option shall have no
stockholder rights with respect to the shares subject to the option until such
person shall have exercised the option, paid the exercise price and become a
holder of record of the purchased shares.

 

2.6. REPURCHASE RIGHTS. The Plan Administrator shall have the
discretion to grant options which are exercisable for unvested shares of Common
Stock. Should the Optionee cease Service while holding such unvested shares,
the Corporation shall have the right to repurchase, at the exercise price paid
per share, any or all of those unvested shares. The terms upon which such
repurchase right shall be exercisable (including the period and procedure for
exercise and the appropriate vesting schedule for the purchased 

 

5

 

shares) shall be established by the Plan Administrator and set forth in
the document evidencing such repurchase right.

 

2.7. LIMITED TRANSFERABILITY OF OPTIONS. During the lifetime of the
Optionee, Incentive Options shall be exercisable only by the Optionee and shall
not be assignable or transferable other than by will or by the laws of descent
and distribution following the Optionee’s death. Non-Statutory Options shall be
subject to the same restrictions, except that a Non-Statutory Option may, to
the extent permitted by the Plan Administrator, be assigned in whole or in part
during the Optionee’s lifetime

 

(i) as a gift to one or more members of the Optionee’s immediate
family, to a trust in which Optionee and/or one or more such family members
hold more than fifty percent (50%) of the beneficial interest or to an entity
in which more than fifty percent (50%) of the voting interests are owned by
Optionee and/or one or more such family members or

 

(ii) pursuant to a domestic relations order. The terms applicable to
the assigned portion shall be the same as those in effect for the option
immediately prior to such assignment and shall be set forth in such documents issued
to the assignee as the Plan Administrator may deem appropriate.

 

2.8. INCENTIVE OPTIONS. The terms specified below shall be applicable
to all Incentive Options. Except as modified by the provisions of this Section
2.8, all the provisions of Articles One, Two and Three shall be applicable to
Incentive Options. Options which are specifically designated as Non-Statutory
Options when issued under the Plan shall NOT be subject to the terms of this
Section 2.8.

 

(a) ELIGIBILITY. Incentive Options may only be granted to Employees.

 

(b) EXERCISE PRICE. The exercise price per share shall not be less than
one hundred percent (100%) of the Fair Market Value per share of Common Stock
on the option grant date.

 

(c) DOLLAR LIMITATION. The aggregate Fair Market Value of the shares of
Common Stock (determined as of the respective date or dates of grant) for which
one or more options granted to any Employee under the Plan (or any other option
plan of the Corporation or any Parent or Subsidiary) may for the first time become
exercisable as Incentive Options during any one calendar year shall not exceed
the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee
holds two (2) or more such options which become exercisable for the first time
in the same calendar year, the foregoing limitation on the exercisability of
such options as Incentive Options shall be applied on the basis of the order in
which such options are granted.

 

(d) 10% STOCKHOLDER. If any Employee to whom an Incentive Option is
granted is a 10% Stockholder, then the exercise price per share shall not be
less than one hundred ten percent (110%) of the Fair Market Value per share of
Common Stock on the option grant 

 

6

 

date, and the option term shall not exceed five (5) years measured from
the option grant date.

 

2.9. CHANGE IN CONTROL. (a) Each option outstanding at the time of a
Change in Control but not otherwise fully-vested shall automatically accelerate
so that each such option shall, immediately prior to the effective date of the
Change in Control, become exercisable for all of the shares of Common Stock at
the time subject to that option and may be exercised for any or all of those
shares as fully-vested shares of Common Stock. However, an outstanding option
shall not so accelerate if and to the extent:

 

(i) such option is, in connection with the Change in Control, assumed
or otherwise continued in full force and effect by the successor corporation
(or parent thereof) pursuant to the terms of the Change in Control,

 

(ii) such option is replaced with a cash incentive program of the
successor corporation which preserves the spread existing at the time of the
Change in Control on the shares of Common Stock for which the option is not
otherwise at that time exercisable and provides for subsequent payout in
accordance with the same vesting schedule applicable to those option shares or

 

(iii) the acceleration of such option is subject to other limitations
imposed by the Plan Administrator at the time of the option grant.

 

(b) All outstanding repurchase
rights shall also terminate automatically, and the shares of Common Stock
subject to those terminated rights shall immediately vest in full, in the event
of any Change in Control, except to the extent:

 

(i) those repurchase rights are assigned to the successor corporation
(or parent thereof) or otherwise continue in full force and effect pursuant to
the terms of the Change in Control or

 

(ii) such accelerated vesting is precluded by other limitations imposed
by the Plan Administrator at the time the repurchase right is issued.

 

(c) Immediately following the consummation of the Change in Control,
all outstanding options shall terminate and cease to be outstanding, except to
the extent assumed by the successor corporation (or parent thereof) or
otherwise expressly continued in full force and effect pursuant to the terms of
the Change in Control.

 

(d) Each option which is assumed in connection with a Change in Control
shall be appropriately adjusted, immediately after such Change in Control, to
apply to the number and class of securities which would have been issuable to
the Optionee in consummation of such Change in Control had the option been
exercised immediately prior to such Change in Control. Appropriate adjustments
to reflect such Change in Control shall also be made to

 

7

 

(i) the exercise price payable per share under each outstanding option,
PROVIDED the aggregate exercise price payable for such securities shall remain
the same,

 

(ii) the maximum number and/or class of securities available for
issuance over the remaining term of the Plan and

 

(iii) the maximum number and/or class of securities for which any one
person may be granted options under the Plan per calendar year.

 

(e) The Plan Administrator may at any time provide that one or more
options will automatically accelerate in connection with a Change in Control,
whether or not those options are assumed or otherwise continued in full force
and effect pursuant to the terms of the Change in Control. Any such option
shall accordingly become exercisable, immediately prior to the effective date
of such Change in Control, for all of the shares of Common Stock at the time
subject to that option and may be exercised for any or all of those shares as
fully-vested shares of Common Stock. In addition, the Plan Administrator may at
any time provide that one or more of the Corporation’s repurchase rights shall
not be assignable in connection with such Change in Control and shall terminate
upon the consummation of such Change in Control.

 

(f) The Plan Administrator may
at any time provide that one or more options will automatically accelerate upon
an Involuntary Termination of the Optionee’s Service within a designated period
(not to exceed eighteen (18) months) following the effective date of any Change
in Control in which those options do not otherwise accelerate. Any options so
accelerated shall remain exercisable for fully-vested shares until the EARLIER
of

 

(i) the expiration of the option term or

 

(ii) the expiration of the one (1)-year period measured from the
effective date of the Involuntary Termination. In addition, the Plan
Administrator may at any time provide that one or more of the Corporation’s
repurchase rights shall immediately terminate upon such Involuntary
Termination.

 

(g) The portion of any Incentive Option accelerated in connection with
a Change in Control shall remain exercisable as an Incentive Option only to the
extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not
exceeded. To the extent such dollar limitation is exceeded, the accelerated
portion of such option shall be exercisable as a Non-Statutory Option under the
Federal tax laws.

 

ARTICLE III

MISCELLANEOUS

 

3.1. NO IMPAIRMENT OF AUTHORITY. Outstanding awards shall in no way
affect the right of the Corporation to adjust, reclassify, reorganize or
otherwise change its 

 

8

 

capital or business structure or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any part of its business or assets.

 

3.2. FINANCING. The Plan Administrator may permit any Optionee or
Participant to pay the option exercise price under the Discretionary Option
Grant Program by delivering a full-recourse, interest bearing promissory note
payable in one or more installments. The terms of any such promissory note
(including the interest rate and the terms of repayment) shall be established
by the Plan Administrator in its sole discretion. In no event may the maximum
credit available to the Optionee or Participant exceed the sum of (i) the
aggregate option exercise price or purchase price payable for the purchased
shares plus (ii) any Federal, state and local income and employment tax
liability incurred by the Optionee or the Participant in connection with the
option exercise or share purchase.

 

3.3. TAX WITHHOLDING. (a) The Corporation’s obligation to deliver
shares of Common Stock upon the exercise of options under the Plan shall be subject
to the satisfaction of all applicable Federal, state and local income and
employment tax withholding requirements.

 

(b) The Plan Administrator may,
in its discretion, provide any or all holders of Non-Statutory Options under
the Plan with the right to use shares of Common Stock in satisfaction of all or
part of the Withholding Taxes incurred by such holders in connection with the
exercise of their options. Such right may be provided to any such holder in
either or both of the following formats:

 

STOCK WITHHOLDING: The election to have the Corporation withhold, from
the shares of Common Stock otherwise issuable upon the exercise of such
Non-Statutory Option, a portion of those shares with an aggregate Fair Market
Value equal to the percentage of the Withholding Taxes (not to exceed one
hundred percent (100%)) designated by the holder.

 

STOCK DELIVERY: The election to deliver to the Corporation, at the time
the Non-Statutory Option is exercised, one or more shares of Common Stock
previously acquired by such holder (other than in connection with the option
exercise triggering the Withholding Taxes) with an aggregate Fair Market Value
equal to the percentage of the Taxes (not to exceed one hundred percent (100%))
designated by the holder.

 

3.4. EFFECTIVE DATE AND TERM OF THE PLAN. (a) The Plan shall become
effective immediately upon the Plan Effective Date. However, options may be
granted under the Discretionary Option Grant Program at any time following
Board approval of the Plan (even though such date is prior to the Plan
Effective Date). Nonetheless, no options granted under the Plan may be
exercised until the Plan Effective Date. If the Plan Effective Date does not
occur within twelve (12) months after the Plan is approved by the Corporation’s
shareholders, then all options previously granted under this Plan shall
terminate and cease to be outstanding, and no further options shall be granted
under the Plan. In addition, in the event that the Merger Agreement is
terminated or otherwise is not consummated within twelve (12) months following
Board approval of the Plan, then 

 

9

 

all options previously granted under this Plan shall terminate and
cease to be outstanding, and no further options shall be granted under the
Plan.

 

(b) The Plan shall terminate upon the EARLIEST of

 

(i) the tenth anniversary of the Plan Effective Date, or

 

(ii) the termination of all outstanding options in connection with a
Change in Control.

 

Upon such plan termination, all outstanding options shall thereafter
continue to have force and effect in accordance with the provisions of the
documents evidencing such grants.

 

3.5. AMENDMENT OF THE PLAN. The
Board shall have complete and exclusive power and authority to amend or modify
the Plan in any or all respects. However, no such amendment or modification
shall adversely affect the rights and obligations with respect to stock options
at the time outstanding under the Plan unless the Optionee consents to such
amendment or modification. In addition, certain amendments may require
stockholder approval pursuant to applicable laws or regulations.

 

3.6. USE OF PROCEEDS. Any cash proceeds received by the Corporation
from the sale of shares of Common Stock under the Plan shall be used for
general corporate purposes.

 

3.7. REGULATORY APPROVALS. (a) The implementation of the Plan, the
granting of any stock option under the Plan and the issuance of any shares of
Common Stock upon the exercise of any granted option shall be subject to the
Corporation’s procurement of all approvals and permits required by regulatory
authorities having jurisdiction over the Plan, the stock options granted under
it and the shares of Common Stock issued pursuant to it.

 

(b) No shares of Common Stock or other assets shall be issued or
delivered under the Plan unless and until there shall have been compliance with
all applicable requirements of Federal and state securities laws, including the
filing and effectiveness of the Form S-8 registration statement for the shares
of Common Stock issuable under the Plan, and all applicable listing
requirements of any stock exchange (or the Nasdaq National Market, if
applicable) on which Common Stock is then listed for trading.

 

3.8. NO EMPLOYMENT/SERVICE RIGHTS. Nothing in the Plan shall confer
upon the Optionee any right to continue in Service for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the
Corporation (or any Parent or Subsidiary employing or retaining such person) or
of the Optionee, which rights are hereby expressly reserved by each, to
terminate such person’s Service at any time for any reason, with or without
cause.

 

10

 

APPENDIX

 

The following definitions shall be in effect under the Plan:

 

1. BENEFICIARY shall mean, in the event the Plan Administrator
implements a beneficiary designation procedure, the person designated by an
Optionee pursuant to such procedure, to succeed to such person’s rights under
any outstanding awards held by him or her at the time of death. In the absence
of such designation or procedure, the Beneficiary shall be the personal
representative of the estate of the Optionee or the person or persons to whom
the award is transferred by will or the laws of descent and distribution.

 

2. BOARD shall mean, prior to the Plan Effective Date, the
Corporation’s Board of Directors; on or after the Plan Effective Date, “Board”
shall mean the Board of Directors of HotJobs.

 

3. CHANGE IN CONTROL shall mean a change in ownership or control of
HotJobs effected through any of the following transactions:

 

(i) a merger, consolidation or reorganization approved by the
stockholders of HotJobs, UNLESS securities representing more than fifty percent
(50%) of the total combined voting power of the voting securities of HotJobs
are immediately thereafter beneficially owned, directly or indirectly and in
substantially the same proportion, by the persons who beneficially owned
HotJobs’s outstanding voting securities immediately prior to such transaction,

 

(ii) any stockholder-approved transfer or other disposition of all or
substantially all of the assets of HotJobs, or

 

(iii) the acquisition, directly or indirectly by any person or related
group of persons (other than HotJobs or a person that directly or indirectly
controls, is controlled by, or is under common control with HotJobs), of
beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of
securities possessing more than fifty percent (50%) of the total combined
voting power of the outstanding securities of HotJobs pursuant to a tender or
exchange offer made directly to the stockholders of HotJobs which the Board
recommends such stockholders to accept;

 

PROVIDED, however, that none of the transactions contemplated in the
Merger Agreement shall result in or constitute a Change in Control.

 

4. CODE shall mean the Internal Revenue Code of 1986, as amended.

 

5. COMMON STOCK shall mean, prior to the Plan Effective Date, the
Corporation’s common stock, and on or after the Plan Effective Date shall mean
the common stock of HotJobs, adjusted as described in Section 1.5(d) herein.

 

6. CONVERSION NUMBER shall have the meaning set forth in the Merger
Agreement.

 

11

 

7. CORPORATION shall mean Resumix, Inc., a Delaware corporation, and
its successors.

 

8. DISCRETIONARY OPTION GRANT
PROGRAM shall mean the discretionary option grant program in effect under the
Plan.

 

9. EMPLOYEE shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

 

10. EXERCISE DATE shall mean the date on which the Corporation shall
have received written notice of the option exercise.

 

11. FAIR MARKET VALUE per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

 

(i) If the Common Stock is at the time traded on the Nasdaq National
Market, then the Fair Market Value shall be the closing selling price per share
of Common Stock on the date in question, as such price is reported on the
Nasdaq National Market or any successor system. If there is no closing selling
price for the Common Stock on the date in question, then the Fair Market Value
shall be the closing selling price on the last preceding date for which such
quotation exists.

 

(ii) If the Common Stock is at the time listed on any Stock Exchange,
then the Fair Market Value shall be the closing selling price per share of
Common Stock on the date in question on the Stock Exchange determined by the
Plan Administrator to be the primary market for the Common Stock, as such price
is officially quoted in the composite tape of transactions on such exchange. If
there is no closing selling price for the Common Stock on the date in question,
then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

 

(iii) For purposes of any options made on the Underwriting Date, the
Fair Market Value shall be deemed to be equal to the price per share at which
the Common Stock is to be sold in the initial public offering pursuant to the
Underwriting Agreement.

 

(iv) For purposes of any options made prior to the Underwriting Date,
the Fair Market Value shall be determined by the Plan Administrator, after
taking into account such factors as it deems appropriate.

 

12. HOTJOBS shall mean HotJobs.com, Ltd., a Delaware corporation.

 

13. INCENTIVE OPTION shall mean an option which satisfies the
requirements of Code Section 422.

 

14. INVOLUNTARY TERMINATION
shall mean the termination of the Service of any individual which occurs by
reason of:

 

12

 

(i) such individual’s involuntary dismissal or discharge by the
Corporation for reasons other than Misconduct, or

 

(ii) such individual’s voluntary resignation following (A) a change in
his or her position with the Corporation or Parent or Subsidiary employing the
individual which materially reduces his or her duties and responsibilities or
the level of management to which he or she reports, (B) a reduction in his or
her level of compensation (including base salary, fringe benefits and target
bonus under any performance based bonus or incentive programs) by more than
fifteen percent (15%) or (C) a relocation of such individual’s place of
employment by more than fifty (50) miles, provided and only if such change,
reduction or relocation is effected by the Corporation without the individual’s
consent.

 

15. MERGER AGREEMENT shall mean the Agreement and Plan of Merger, dated
April 25, 2000, by and among the Corporation, HotJobs, Resumix Acquisition
Corp. and the other parties thereto.

 

16. MISCONDUCT shall mean the commission of any act of fraud,
embezzlement or dishonesty by the Optionee, any unauthorized use or disclosure
by such person of confidential information or trade secrets of the Corporation
(or any Parent or Subsidiary), or any intentional wrongdoing by such person,
whether by omission or commission, which adversely affects the business or
affairs of the Corporation (or any Parent or Subsidiary) in a material manner.
This shall not limit the grounds for the dismissal or discharge of any person
in the Service of the Corporation (or any Parent or Subsidiary).

 

17. 1934 ACT shall mean the Securities Exchange Act of 1934, as
amended.

 

18. NON-STATUTORY OPTION shall mean an option not intended to satisfy
the requirements of Code Section 422.

 

19. OPTIONEE shall mean any person to whom an option is granted under
the Discretionary Option Grant Program.

 

20. PARENT shall mean any corporation (other than the Corporation) in
an unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

 

21. PLAN shall mean the
Corporation’s 2000 Stock Option Plan, as set forth in this document.

 

22. PLAN ADMINISTRATOR shall mean the particular entity, whether the
Primary Committee, the Board or the Secondary Committee, which is authorized to
administer the Discretionary Option Grant Program with respect to one or more
classes of eligible persons, to the extent such entity is carrying out its
administrative functions under such program with respect to the persons under
its jurisdiction. However, the Primary 

 

13

 

Committee shall have the plenary authority to make all factual
determinations and to construe and interpret any and all ambiguities under the
Plan to the extent such authority is not otherwise expressly delegated to any
other Plan Administrator.

 

23. PLAN EFFECTIVE DATE shall mean the “Effective Time,” as defined in
the Merger Agreement.

 

24. PRIMARY COMMITTEE shall mean the committee of two (2) or more
non-employee Board members appointed by the Board to administer the
Discretionary Option Grant Program with respect to Section 16 Insiders.

 

25. SECONDARY COMMITTEE shall mean a committee of one (1) or more Board
members appointed by the Board to administer the Discretionary Option Grant
Program with respect to eligible persons other than Section 16 Insiders.

 

26. SECTION 12 REGISTRATION DATE shall mean the date on which the
Common Stock is first registered under Section 12(g) of the 1934 Act.

 

27. SECTION 16 INSIDER shall mean an officer or director of the
Corporation subject to the short-swing profit liabilities of Section 16 of the
1934 Act.

 

28. SERVICE shall mean the performance of services for the Corporation
(or any Parent or Subsidiary) by a person in the capacity of an Employee.

 

29. STOCK EXCHANGE shall mean either the American Stock Exchange or the
New York Stock Exchange.

 

30. SUBSIDIARY shall mean any corporation (other than the Corporation)
in an unbroken chain of corporations beginning with the Corporation, provided
each corporation (other than the last corporation) in the unbroken chain owns,
at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

 

31. 10% STOCKHOLDER shall mean the owner of stock (as determined under
Code Section 424(d)) possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation (or any Parent
or Subsidiary).

 

32. UNDERWRITING AGREEMENT shall mean the agreement between the
Corporation and the underwriter or underwriters managing the initial public
offering of the Common Stock.

 

33. UNDERWRITING DATE shall mean the date on which the Underwriting
Agreement is executed and priced in connection with an initial public offering
of the Common Stock.

 

14

 

34. WITHHOLDING TAXES shall mean the Federal, state and local income
and employment withholding tax liabilities to which the holder of Non-Statutory
Options may become subject in connection with the exercise of those options.

 

15

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