Document:

EX-10.2

 Exhibit 10.2 

FOURTH AMENDMENT OF LEASE 

THIS FOURTH AMENDMENT OF LEASE (this “Amendment”) is made as of this 22nd day of July, 2015 (the “Execution
Date”), by and between DWF IV ONE KENDALL, LLC, a Delaware limited liability company having an address c/o Divco West Real Estate Services, Inc., One Kendall Square, Cambridge, MA 02139, Attention: Property Manager
(“Landlord”), and MERRIMACK PHARMACEUTICALS, INC., a Delaware corporation having a mailing address at One Kendall Square, Building 600/700, Cambridge, MA 02139 (“Tenant”). 

BACKGROUND: 
 A.
Reference is made to an Indenture of Lease dated August 24, 2012, by and between RB Kendall Fee, LLC, as landlord, and Tenant, as tenant (the “Original Lease”), as amended by that certain First Amendment of Lease dated
as of March 18, 2013, Second Amendment of Lease dated as of September 12, 2013 and Third Amendment of Lease dated as of February 23, 2015 (the Original Lease, as so amended, the “Lease”), demising approximately
(a) 31,747 rentable square feet of space on a portion of the second (2nd) floor of Building 600/650/700 (the “2nd Floor
Space”), (b) 4,773 rentable square feet of space on the fourth (4th) floor of Building 650/700 (the “Additional Space”), (c) 30,626 rentable
square feet of space on the fourth (4th) floor of Building 600/700 (the “4th Floor Space”), (d) 7,245
rentable square feet of space on the mezzanine level of Building 700 (the “Mezzanine Space”), (e) 8,686 rentable square feet of space on the first (1st) floor of
Building 600 (the “1st Floor Space”), (f) 132 rentable square feet in the basement of Building 700 (the “Basement Premises”), (g) 2,922
rentable square feet of space in the basement of Building 700 (the “Storage Space”), (h) 8,763 rentable square feet of space located on the fourth (4th) floor of
Building 700 (the “Expansion Space I”), (i) 3,388 rentable square feet of space located on the fourth (4th) floor and the fourth (4th) floor mezzanine of Building 650 (the “Expansion Space II”), (j) 10,375 rentable square feet of space located on the fifth (5th) floor of Building 600 (the “Expansion Space III”), (k) 491 rentable square feet of space on the first
(1st) floor of Building 700 (the “Chemical Storage Space”), (l) 8,155 rentable square feet of space located on the second (2nd) floor of Building 600 (the “600 Expansion Space”), (m) 784 rentable square feet of space located on the second floor
(2nd) of Building 600 (the “Hallway Space”), (n) 3,617 rentable square feet of space located on the fifth
(5th) floor of Building 600 (the “Expansion Space IV”), and (o) 31,620 rentable square feet of space on the fifth
(5th) floor of Building 600/650/700 (the “Third Amendment Premises;” collectively, with the 2nd Floor Space,
Additional Space, 4th Floor Space, Mezzanine Space, 1st Floor Space, Basement Premises, Storage Space, Expansion Space I, Expansion Space II,
Expansion Space III, Chemical Storage Space, 600 Expansion Space, Hallway Space and Expansion Space IV, the “Existing Premises”) in One Kendall Square in Cambridge, Massachusetts (the “Complex”). 

B. Landlord is the successor to RB Kendall Fee, LLC, and Landlord and Tenant are the current holders, respectively, of the landlord’s and
tenant’s interests in the Lease. 
 C. The parties desire to execute this Amendment to (i) confirm the exercise of Tenant’s
rights pursuant to Article 29.16 of the Original Lease so as to add to the Existing Premises an additional approximately (a) 7,145 rentable square feet of space on the first (1st) floor
of Building 700 as shown on Exhibit A attached hereto (the “Former Addgene Space”), (b) 5,687 rentable square feet of space on the first (1st) floor of
Building 700 as shown on Exhibit B attached hereto (the “Former OmniGuide Space”), (c) 311 rentable square feet of space on the basement level of Building 700 as shown on Exhibit C attached hereto in which
certain building systems supporting the Former Addgene Space are located (the “Equipment Room”), and (d) 700 rentable square feet of storage space in the basement of Building 700 as shown on Exhibit D attached
hereto (the “Fourth Amendment Storage Space”; collectively, with the Former Addgene Space, Former OmniGuide Space and Equipment Room, the “Fourth Amendment Premises”); and (ii) amend the Lease in
certain other respects, all as hereinafter set forth. Capitalized terms not defined herein shall have the same meanings ascribed to them in the Lease. 

  
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 AGREEMENTS: 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree to amend the Lease as follows: 
 1. Inclusion
of Fourth Amendment Premises. Effective as of the applicable Commencement Date (as defined on Exhibit E attached hereto) set forth on Exhibit E attached hereto, the applicable component of the Fourth Amendment Premises shall be
added to the Premises under the Lease. 
 Landlord anticipates delivering possession of each component of the Fourth Amendment Premises on
or before the applicable Anticipated Delivery Date set forth on Exhibit F attached hereto; provided, however, that if Landlord cannot deliver possession of the applicable component of the Fourth Amendment Premises on or before the applicable
Anticipated Delivery Date due to the failure of the existing tenant of such space to vacate such component of the Fourth Amendment Premises or due to fire or other casualty (provided, that in the event of any such fire or other casualty, the
provisions of Section 18 of the Original Lease shall apply), this Amendment shall not be void or voidable, nor shall Landlord be liable for any loss or damage resulting therefrom. In any event, there shall be no accrual of Yearly Rent, Tax
Share or Operating Expense Share (subject in each instance to the provisions hereof) with respect to each applicable component of the Fourth Amendment Premises until Landlord delivers possession of such component of the Fourth Amendment Premises to
Tenant. Landlord shall use reasonable efforts to deliver possession of each component of the applicable Fourth Amendment Premises as soon as reasonably practicable following the date the existing tenant of such space vacates such component of the
Fourth Amendment Premises, regardless whether such date occurs prior to the Anticipated Delivery Date for such component of the Fourth Amendment Premises and any such earlier date of delivery shall be the Commencement Date with respect to such
component of the Fourth Amendment Premises. In the event that Landlord cannot deliver possession of any component of the Fourth Amendment Premises on or before the applicable Anticipated Delivery Date for such space in the condition required under
Section 2 below due to the failure of the existing tenant of such space to vacate such component of the Fourth Amendment Premises, then Landlord shall use commercially reasonable efforts to cause the existing tenant of such space to vacate such
component of the Fourth Amendment Premises. To the extent not caused by Landlord, Tenant’s inability or failure to take possession of any component of the applicable Fourth Amendment Premises when delivery is tendered by Landlord in the
condition required under Section 2 below shall not delay the Commencement Date with respect to such space or Tenant’s obligation to pay Yearly Rent with respect thereto. 

Notwithstanding the foregoing, if the Commencement Date for any component of the Fourth Amendment Premises does not occur within one hundred
eighty (180) days of the applicable Anticipated Delivery Date for such space (each such 180th day being a “Delivery Deadline”) except if due to fire or other casualty
that is not caused by Landlord’s gross negligence or willful misconduct, Landlord shall provide Tenant with a credit of one (1) day’s Yearly Rent, Tax Share and Operating Expense Share allocable to the applicable component of the
Fourth Amendment Premises for each day beyond the applicable Delivery Deadline for such space until the Commencement Date with respect thereto occurs and if the applicable Commencement Date does not occur within ninety (90) days of the
applicable Delivery Deadline for such component of the Fourth Amendment Premises (each such 90th day being a “Second Delivery Deadline”), such credit shall increase to two
(2) day’s Yearly Rent, Tax Share and Operating Expense Share allocable to such component of the Fourth Amendment Premises for each day beyond the applicable Second Delivery Deadline for such space until the Commencement Date with

  
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respect thereto occurs. The foregoing credits shall be applied on a day-for-day basis to Tenant’s rent obligations for the applicable component of the Fourth Amendment Premises beginning on
the Rent Commencement Date (as defined below) applicable to such component of the Fourth Amendment Premises. 
 Accordingly: 

 

	 	(a)	as of the Former Addgene Space Commencement Date (as defined on Exhibit E attached hereto), Article 2 of Exhibit 1, Sheet 1 of the Original Lease shall be amended to add the following after the last paragraph
thereof: 

 “Former Addgene Space: Approximately 7,145 rentable square feet of space on the first (1st) floor of Building 700 of the Complex more particularly shown on Exhibit A to the Fourth Amendment of Lease. 

Equipment Room: Approximately 311 rentable square feet of space on the basement level of Building 700 of the Complex more
particularly shown on Exhibit C to the Fourth Amendment of Lease.” 
 and, 

 

	 	(b)	as of the Former OmniGuide Space Commencement Date (as defined on Exhibit E attached hereto), Article 2 of Exhibit 1, Sheet 1 of the Original Lease shall be amended to add the following after the last paragraph
thereof: 

 “Former OmniGuide Space: Approximately 5,687 rentable square feet of space on the first (1st) floor of Building 700 of the Complex more particularly shown on Exhibit B to the Fourth Amendment of Lease. 

Fourth Amendment Storage Space: Approximately 700 rentable square feet of space on the basement level of Building 700 of the
Complex more particularly shown on Exhibit D to the Fourth Amendment of Lease.” 
 The term of the lease for the Former Addgene
Space and the Equipment Room shall be the period beginning on the Former Addgene Space Commencement Date and ending on June 30, 2019 (June 30, 2019 being the “Expiration Date;” such period being the “Former
Addgene Space Term”), subject to the provisions of Section 9 of this Amendment. 
 The term of the lease for the Former
OmniGuide Space and the Fourth Amendment Storage Space shall be the period beginning on the Former OmniGuide Space Commencement Date and ending on the Expiration Date (the “Former OmniGuide Space Term”), subject to the
provisions of Section 9 of this Amendment. 
 Except as otherwise provided herein or except to the extent inconsistent herewith, all
terms and provisions of the Lease shall be applicable to Tenant’s leasing of the Fourth Amendment Premises. As of the Former Addgene Space Commencement Date, the Premises under the Lease shall include the Former Addgene Space and the Equipment
Room. As of the Former OmniGuide Space Commencement Date, the Premises under the Lease shall include the Former OmniGuide Space and the Fourth Amendment Storage Space. 

  
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 2. Condition 
  

	 	(a)	Condition of Premises. The Fourth Amendment Premises shall be leased to Tenant as of, and Landlord shall deliver possession of each component of the Fourth Amendment Premises to Tenant on, the applicable
Commencement Date in the following condition: (a) the same shall be in broom clean condition and free of all tenants and/or occupants and their personal property, (b) the mechanical, electrical and plumbing systems (both the base building
systems and the systems located within the respective spaces) serving the Former Addgene Space and the Former OmniGuide Space, (collectively, the “MEP Systems”), shall be in good working order, (c) decommissioning
reports from the existing tenants of each of the Former Addgene Space and the Former OmniGuide Space shall have been delivered to Tenant in advance of the Former Addgene Space Commencement Date and the Former OmniGuide Space Commencement Date,
respectively, evidencing that each of the Former Addgene Space and the Former OmniGuide Space, as applicable, have been decommissioned in accordance with applicable laws, and (d) Landlord shall deliver the Former OmniGuide Space and the
Equipment Room with the Landlord’s work set forth on Exhibit G hereof completed. The Fourth Amendment Premises shall otherwise be leased to Tenant as of, and Landlord shall deliver possession thereof to Tenant on, the applicable
Commencement Date in its “as is” condition as of the date of this Amendment without any further obligation on the part of Landlord to perform any construction therein or to prepare the same for Tenant’s occupancy or to pay any
allowances therefor, except for the payment of the Fourth Amendment Landlord Contribution as set forth below. 

  

	 	(b)	 MEP Systems. In addition, Tenant shall have the right, prior to the commencement of any Tenant’s Fourth Amendment Work in the Former
Addgene Space and/or the Former OmniGuide Space, to determine whether the MEP Systems serving each such space are, in fact, in good operating order. If Tenant believes that the MEP Systems serving either the Former Addgene Space or the Former
OmniGuide Space are not in good working order, then Tenant may give Landlord written notice (a “Defect Notice”) prior to the time that Tenant commences Tenant’s Fourth Amendment Work in the Former Addgene Space and/or
the Former OmniGuide Space, as applicable. Each Defect Notice shall set forth, with specificity, the manner in which the MEP Systems serving the applicable space are not in good working order. If Tenant fails to provide a Defect Notice with respect
to the MEP Systems in the Former Addgene Space or the Former OmniGuide Space prior to the time that Tenant commences Tenant’s Fourth Amendment Work in the Former Addgene Space or the Former OmniGuide Space, respectively, or if Tenant does not
give Landlord reasonable opportunity (at least three (3) business days) to investigate the claims set forth in a Defect Notice prior to the commencement of Tenant’s Fourth Amendment Work in the Former Addgene Space or the Former OmniGuide
Space, as applicable, then Tenant shall conclusively be deemed to have agreed that the MEP Systems in the Former Addgene Space or the Former OmniGuide Space, respectively, were in good working order as of the applicable Commencement Date. If
Landlord agrees that the MEP Systems in the Former Addgene Space or the Former OmniGuide Space, as applicable, are not in good working order, Landlord shall, at no cost to Tenant, perform any work necessary to place the MEP Systems in the Former
Addgene Space or the Former OmniGuide Space, as applicable, in good working order. Landlord shall have the right, which right shall be exercisable by written notice to Tenant given on or before the date seven (7) days after Landlord receives a
Defect Notice, to object to such Defect Notice. Any dispute under this Section 2(b) may be submitted to arbitration in accordance with the provisions in Article 29.4 of the Original Lease. If it is either agreed

  
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by the parties, or determined by the arbitrator, that the MEP Systems were not in good working order as of the applicable Commencement Date, then Landlord shall, promptly after such agreement or
determination, perform any work necessary to place the MEP Systems in good working order. The provisions in this Section 2(b) set forth Tenant’s sole rights and remedies in the event of any breach by Landlord of its obligations under this
Section 2(b). Notwithstanding the foregoing, Tenant shall have no right to provide a Defect Notice or object to the condition of the HVAC system serving the Former OmniGuide Space to the extent that the completion of Tenant’s Heat Pump
Installation (as defined on Exhibit G) will remedy the condition of such HVAC system. Nothing herein shall relieve Landlord from its maintenance and repair obligations pursuant to Article 8.5 of the Lease. 

 

	 	(c)	Tenant shall have the right to use the Ph Neutralization system, central vacuum system, RODI water system, potable and non-potable water systems and effluent pumping system (collectively, the “Equipment Room Lab
Systems”) located in the Equipment Room throughout the term of the Former Addgene Space Term. Tenant shall, throughout the Former Addgene Space Term, maintain the Equipment Room Lab Systems in the condition in which such systems are in as
of the Former Addgene Space Commencement Date, at its sole cost and expense. 

 3. Payment of Yearly Rent for the Former
Addgene Space and the Equipment Room. For and during the Former Addgene Space Term (i.e., the period commencing on the Former Addgene Space Commencement Date and ending on June 30, 2019), in addition to all other amounts due and
payable by Tenant under the Lease with respect to the Existing Premises, Tenant shall pay to Landlord monthly installments of Yearly Rent with respect to the Former Addgene Space as follows and otherwise as set forth in the Yearly Rent payment
provisions of the Lease: 
  

					
	 Time Period
	  	Monthly
Payment of Yearly Rent	 
	 Month 1 through the end of Month 3:
	  	$	0.00	1 
	 Month 4 through the end of Month 15:
	  	$	31,557.08	  
	 Month 16 through the end of Month 27:
	  	$	32,152.50	  
	 Month 28 through the end of Month 39:
	  	$	32,747.92	  
	 Month 40 through the end of June 30, 2019:
	  	$	33,343.33	  

  

	1 	Month 1 shall begin on the Former Addgene Space Commencement Date if the Former Addgene Space Commencement Date occurs on the first day of a calendar month, and if the Former Addgene Space Commencement Date shall not be
the first day of a calendar month, (a) Month 1 shall instead begin on the first day of the full calendar month after the calendar month during which the Former Addgene Space Commencement Date occurs, and (b) Tenant shall nevertheless be
responsible for payment of the partial month of Yearly Rent for the Former Addgene Space prior to Month 1 on a pro rata basis at the monthly rate of $31,557.08. 

  
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 In addition, commencing on the Former Addgene Space Rent Commencement Date, for and during the Former Addgene
Space Term, in addition to all other amounts due and payable by Tenant under the Lease, Tenant shall pay to Landlord monthly installments of Yearly Rent with respect to the Equipment Room in the amount of $311 per month. 

4. Payment of Yearly Rent for the Former OmniGuide Space and the Fourth Amendment Storage Space. For and during the Former OmniGuide
Space Term (i.e., the period commencing on the Former OmniGuide Space Commencement Date and ending on June 30, 2019), in addition to all other amounts due and payable by Tenant under the Lease with respect to the Existing Premises,
Tenant shall pay to Landlord monthly installments of Yearly Rent with respect to the Former OmniGuide Space as follows and otherwise as set forth in the Yearly Rent payment provisions of the Lease: 

 

					
	 Time Period
	  	Monthly
Payment of Yearly Rent	 
	 Month 1 through the end of Month 3:
	  	$	0.00	2 
	 Month 4 through the end of Month 15:
	  	$	19,904.50	  
	 Month 16 through the end of Month 27:
	  	$	20,378.42	  
	 Month 28 through the end of Month 39:
	  	$	20,852.33	  
	 Month 40 through the end of June 30, 2019:
	  	$	21,326.25	  

 In addition, commencing on the Former OmniGuide Space Rent Commencement Date, for and during the Former OmniGuide Space Term,
in addition to all other amounts due and payable by Tenant under the Lease, Tenant shall pay to Landlord monthly installments of Yearly Rent with respect to the Fourth Amendment Storage Space in the amount of $700 per month. 

5. Operating Expense Share and Tax Share for Fourth Amendment Premises. Commencing on the first day of Month 4 as set forth in
Section 3 above with respect to the Former Addgene Space (the “Former Addgene Space Rent Commencement Date”), Tenant shall make Tax Share and Operating Expense Share payments attributable to the Former Addgene Space in
accordance with the terms and conditions of the Lease, as amended hereby. Commencing on the first day of Month 4 as set forth in Section 4 above with respect to the Former OmniGuide Space (the “Former OmniGuide Space Rent
Commencement Date;” each the Former Addgene Space Rent Commencement Date and the Former OmniGuide Space Rent Commencement Date being a “Rent Commencement Date”), Tenant shall make Tax Share and Operating Expense
Share payments attributable to the Former OmniGuide Space in accordance with the terms and conditions of the Lease, as amended hereby. The parties acknowledge and agree that Tenant shall have no responsibility under the Lease, as amended hereby, for
Tenant’s Tax Share and Operating Expense Share attributable to (a) the Former Addgene Space for the period from the 
  

	2 	Month 1 shall begin on the Former OmniGuide Space Commencement Date if the Former OmniGuide Space Commencement Date occurs on the first day of a calendar month, and if the Former OmniGuide Space Commencement Date shall
not be the first day of a calendar month, (a) Month 1 shall instead begin on the first day of the full calendar month after the calendar month during which the Former OmniGuide Space Commencement Date occurs, and (b) Tenant shall
nevertheless be responsible for payment of the partial month of Yearly Rent for the Former OmniGuide Space prior to Month 1 on a pro rata basis at the monthly rate of $19,904.50. 

  
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 Former Addgene Space Commencement Date through the day prior to the Former Addgene Space Rent Commencement Date,
and (b) the Former OmniGuide Space for the period from the Former OmniGuide Space Commencement Date through the day prior to the Former OmniGuide Space Rent Commencement Date. 

6. Proportionate Shares Applicable to Fourth Amendment Premises. 

 

	 	(a)	Effective as of the Former Addgene Space Rent Commencement Date and continuing for the Former Addgene Space Term (i.e., the period commencing on the Former Addgene Space Commencement Date and ending on
June 30, 2019), Article 9 of Exhibit 1, Sheet 1 of the Lease (as amended by the Third Amendment) is amended as follows: 

By adding the following to the definition of Tenant’s Proportionate Common Area Share: 

 

					
	 Former Addgene Space:
	  	 	1.11	% 

 And 

By adding the following to the definition of Tenant’s Proportionate Building Share: 

 

					
	 Former Addgene Space:
	  	 	3.16	% 

  

	 	(b)	Effective as of the Former OmniGuide Space Rent Commencement Date and continuing for the Former OmniGuide Space Term (i.e., the period commencing on the Former OmniGuide Space Commencement Date and ending on
June 30, 2019), Article 9 of Exhibit 1, Sheet 1 of the Lease (as amended by the Third Amendment) is amended as follows: 

By adding the following to the definition of Tenant’s Proportionate Common Area Share: 

 

					
	 Former OmniGuide Space:
	  	 	0.89	% 

 And 

By adding the following to the definition of Tenant’s Proportionate Building Share: 

 

					
	 Former OmniGuide Space:
	  	 	2.52	% 

 7. Permitted Uses of Fourth Amendment Premises. Effective as of the Execution Date of this Amendment,
Article 5 of Exhibit 1, Sheet 1 of the Original Lease (as amended by the Third Amendment) is amended by adding the following: 
 “Art. 5 Permitted Uses
of Premises: 
 Former Addgene Space and Former OmniGuide Space: General business offices, laboratory use (including, without
limitation, animal laboratory use), manufacturing, shipping and receiving purposes and ancillary uses thereto subject to Section 29.11 of the Original Lease, Section 10 of the Third Amendment, Section 11 of the Fourth Amendment and
the other provisions of the Lease. 

  
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 Equipment Room: Operation of the Ph Neutralization system and other existing Equipment
Room Lab Systems (as defined in the Fourth Amendment) located therein and building systems serving the Former Addgene Space and for no other purpose. 

Fourth Amendment Storage Space: For the storage of Tenant’s personal property (excluding chemical storage) relating to the
Permitted Use of the Premises. 
 8. Electric Current to Fourth Amendment Premises. From and after the Commencement Date applicable to
each component of the Fourth Amendment Premises, (i) in the event that electricity consumption for such component of the Fourth Amendment Premises is separately metered, Tenant shall pay, directly to the appropriate utility provider, any and
all costs of electricity utilized in or for such component of the Fourth Amendment Premises and in support of any of Tenant’s equipment, wherever located, or (ii) in the event that electricity consumption for any component of the Fourth
Amendment Premises is measured by a checkmeter, sub-meter or other measuring device, Tenant shall pay to Landlord, as additional rent, the amount as determined below. 
  

	 	(a)	Commencing as of the Commencement Date applicable to each component of the Fourth Amendment Premises and continuing until the procedures set forth in the immediately following Section 8(b) are in effect with
respect to such component of the Fourth Amendment Premises, Tenant shall pay to Landlord at the same time and in the same manner that it pays its monthly payments of Yearly Rent hereunder, estimated payments (i.e., based upon Landlord’s
reasonable estimate) on account of Tenant’s obligation to reimburse Landlord for electricity consumed in such component of the Fourth Amendment Premises. 

  

	 	(b)	Periodically after the Commencement Date applicable to each component of the Fourth Amendment Premises, Landlord shall determine the actual cost of electricity consumed by Tenant in each component of the Fourth
Amendment Premises (i.e., by reading Tenant’s sub-meter and by applying an electric rate which shall not exceed the rate at which Landlord purchases electricity, including taxes and surcharges thereon). If the total of Tenant’s
estimated monthly payments on account of such period is less than the actual cost of electricity consumed in the applicable component of the Fourth Amendment Premises during such period, Tenant shall pay the difference to Landlord within thirty
(30) days of when billed therefor. If the total of Tenant’s estimated monthly payments on account of such period is greater than the actual cost of electricity consumed in the applicable component of the Fourth Amendment Premises during
such period, Tenant may credit the difference against its next installment of estimated monthly electricity charges due hereunder, provided that any excess credit shall be repaid to Tenant within thirty (30) days following the Expiration Date
(as such date is adjusted pursuant to Section 9 of this Amendment) provided Tenant is not in default under the Lease. 

  

	 	(c)	After each adjustment, as set forth in Section 8(b) above, the amount of estimated monthly payments on account of Tenant’s obligation to reimburse Landlord for electricity in each component of the Fourth
Amendment Premises shall be adjusted by Landlord based upon the actual cost of electricity consumed during the immediately preceding period. 

9. Extension Options Applicable to Fourth Amendment Premises. For the sake of clarity, the extension options set forth in
Section 29.14 of the Original Lease shall apply to the Existing Premises and the Fourth Amendment Premises; provided, however, Tenant shall not have the right to exercise an extension option for less than all of the Premises (i.e., the
Existing Premises and the Fourth Amendment Premises). 

  
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 10. Fourth Amendment Allowance.

 

	 	(a)	Tenant plans to complete certain Tenant’s leasehold improvements to the Premises (the “Tenant’s Fourth Amendment Work”) in accordance with the terms and conditions of the Lease (as
amended hereby). In connection with the Tenant’s Fourth Amendment Work, Landlord shall provide to Tenant an allowance equal to $534,425.00 (the “Fourth Amendment Landlord Contribution”) toward the cost of the design and
construction of Tenant’s Fourth Amendment Work. The Fourth Amendment Landlord Contribution shall be paid, and requests therefor shall be made, in the manner provided in Section 4.2 of the Original Lease, and shall otherwise be treated in
the same manner as the “Landlord’s Contribution” as described in the Original Lease; provided, however, that with respect to the Fourth Amendment Landlord Contribution, (a) all references in the Original Lease to
(i) “Landlord’s Contribution” shall be deemed to refer to the Fourth Amendment Landlord Contribution, (ii) “Tenant’s Work” shall be deemed to refer to the Tenant’s Fourth Amendment Work, and
(iii) “Plans and Specifications” shall be deemed to refer to the “Fourth Amendment Plans and Specifications” (as defined below), (b) the first sentence of Section 4.2B and Sections 4.2D(iii) and 4.2D(iv) of the
Original Lease shall be inapplicable to the Fourth Amendment Landlord Contribution, and (c) Tenant shall have no right to requisition any portion of the Fourth Amendment Landlord Contribution after the second (2nd) anniversary of the later to occur of the Former Addgene Space Rent Commencement Date or the Former OmniGuide Space Rent Commencement Date. 

 

	 	(b)	The Tenant’s Fourth Amendment Work shall be constructed in accordance with the terms and conditions of the Original Lease including but not limited to Section 4.2A and Articles 11, 12 and 13 of the Original
Lease. Without limiting the foregoing, Tenant shall obtain Landlord’s prior written consent, in accordance with the provisions of Section 4.2A of the Original Lease, for all of the Tenant’s Fourth Amendment Work (and Fourth Amendment
Plans and Specifications therefor), and the contractors, engineers, architects, technicians and mechanics effecting same, which consent shall not be unreasonably withheld, conditioned or delayed. Tenant shall be responsible for the preparation of
construction plans and specifications, including but not limited to architectural, mechanical, electrical, plumbing, life-safety and other Buildings systems and interfaces therewith (collectively, the “Fourth Amendment Plans and
Specifications”) and any specialty engineering necessary for the completion of the Tenant’s Fourth Amendment Work, all of which shall be subject to Landlord’s prior written consent, which consent shall not be unreasonably
withheld conditioned or delayed, in accordance with the provisions of Section 4.2A of the Original Lease. Landlord shall be entitled to deduct from the Fourth Amendment Landlord Contribution all direct, reasonable third-party out-of-pocket
expenses incurred by Landlord in reviewing and approving the Fourth Amendment Plans and Specifications following delivery of detailed invoices for same to Tenant. 

11. Hazardous Materials. Landlord and Tenant acknowledge and agree that all of the provisions of Section 29.11 of the Original
Lease and Section 10 of the Third Amendment shall apply to the Fourth Amendment Premises in the same manner as the Existing Premises. Notwithstanding the foregoing, Schedule 1 attached hereto shall replace Exhibit 7A to the Original
Lease for all purposes of the Lease. 

  
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 12. Parking. As of the date of this Amendment, Tenant is entitled to a total of one
hundred thirty-four (134) parking passes in the OKS Garage, as set forth in Section 29.19 of the Original Lease and Section 11 of the Third Amendment. As of the Former Addgene Space Commencement Date, the number of parking passes in
the OKS Garage that Landlord is required to make available to Tenant shall be increased by an additional seven (7) parking passes. As of the Former OmniGuide Space Commencement Date, the number of parking passes in the OKS Garage that Landlord
is required to make available to Tenant shall be increased by an additional six (6) parking passes. All parking passes shall continue to be available to Tenant pursuant to the terms and provisions of Section 29.19 of the Original Lease,
including, but not limited to, payment of the then current prevailing monthly charge therefor, which as of the Execution Date is $260 per month. 

13. Emergency Generator. Subject to the provisions of Section 2.2 of the Original Lease pursuant to which Tenant has rights to
forty-eight percent (48%) of the capacity of the Shared Generator, commencing as of the Former Addgene Space Commencement Date, Tenant shall have, as appurtenant to the Premises, the right to use an additional thirty-three and six-tenths
percent (33.6%) of the capacity of the Shared Generator. 
 14. Broker. Landlord and Tenant each represents and warrants to the
other party that it has not authorized, retained or employed, or acted by implication to authorize, retain or employ, any real estate broker or salesman to act for it or on its behalf in connection with this Amendment so as to cause the other party
to be responsible for the payment of a brokerage commission, except for Cushman & Wakefield of Massachusetts, Inc. and Colliers International New England LLC (collectively, the “Brokers”). Any fees payable to the
Brokers are the responsibility of Landlord pursuant to separate written agreement with the Brokers. Landlord and Tenant shall each indemnify, defend and hold the other party harmless from and against any and all claims by any real estate broker or
salesman (other than the Brokers) whom the indemnifying party authorized, retained or employed, or acted by implication to authorize, retain or employ, to act for the indemnifying party in connection with this Amendment. 

15. Counterpart Execution. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which
when taken together shall constitute one fully executed original Amendment, binding upon the parties hereto, notwithstanding that all of the parties hereto may not be signatories to the same counterpart. Additionally, telecopied or e-mailed
signatures may be used in place of original signatures on this Amendment. Landlord and Tenant intend to be bound by the signatures on the telecopied or e-mailed document, are aware that the other party will rely on the telecopied or e-mailed
signatures, and hereby waive any defenses to the enforcement of the terms of this Amendment based on the form of signature. 
 16.
Miscellaneous. In all other respects, the Lease shall remain unmodified and shall continue in full force and effect, as amended hereby. The parties hereby ratify, confirm, and reaffirm all of the terms and conditions of the Lease, as amended
hereby. 
 17. Authorization to Execute. Tenant represents and warrants to Landlord that the person signing this Amendment on
behalf of Tenant is duly authorized to execute and deliver this Amendment on behalf of Tenant. Landlord represents and warrants to Tenant that the person signing this Amendment on behalf of Landlord is duly authorized to execute and deliver this
Amendment on behalf of Landlord. 
 18. No Reservation. Preparation of this Amendment by Landlord or Landlord’s attorney and the
submission of this Amendment to Tenant for examination or signature is without prejudice and does not constitute a reservation, option or offer to lease the Premises. This Amendment shall not be binding or effective until this Amendment shall have
been executed and delivered by each of the parties hereto, and Landlord reserves the right to withdraw this Amendment upon written notice to Tenant from consideration or negotiation at any time prior to Landlord’s execution and delivery of this
Amendment, which withdrawal shall be without prejudice, recourse or liability. 
 [Signatures on Following Page] 

  
 10 

 IN WITNESS WHEREOF the parties hereto have executed this Fourth Amendment of Lease on the date
first written above in multiple copies, each to be considered an original hereof, as a sealed instrument. 
  

							
	LANDLORD:
	
	DWF IV ONE KENDALL, LLC, a Delaware limited liability company
			
	      	 	By:	 	Divco West Real Estate Services, Inc.,
		 		 	a Delaware corporation, its Agent
				
		 		 	By:	 	 /s/ James Teng

		 		 		 	Name: James Teng
		 		 		 	Title:   Managing Director

  

			
	TENANT:
	
	MERRIMACK PHARMACEUTICALS, INC., a Delaware corporation
		
	By:	 	 /s/ Jeffrey A. Munsie

		 	Name: Jeffrey A. Munsie
		 	Title:   General Counsel

  
 11 

 EXHIBIT A – OUTLINE OF FORMER ADDGENE SPACE 

This plan is intended only to show the general outline of the Former Addgene Space as of the date of this Amendment. Any depiction of interior windows, walls,
cubicles, modules, furniture and equipment on this plan is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items. It does not in any way supersede any of
Landlord’s rights set forth in the Lease or this Amendment with respect to arrangements and/or locations of public parts of the Building. It is not necessarily to scale; any measurements or distances shown should be taken as approximate. The
inclusion of elevators, stairways, electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the Former Addgene Space. 

 
 

 

  
 Exhibit A, Page 1 

 EXHIBIT B – OUTLINE OF FORMER OMNIGUIDE SPACE 

This plan is intended only to show the general outline of the Former OmniGuide Space as of the date of this Amendment. Any depiction of interior windows,
walls, cubicles, modules, furniture and equipment on this plan is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items. It does not in any way supersede any
of Landlord’s rights set forth in the Lease or this Amendment with respect to arrangements and/or locations of public parts of the Building. It is not necessarily to scale; any measurements or distances shown should be taken as approximate. The
inclusion of elevators, stairways, electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the Former OmniGuide Space. 

 
 

 

  
 Exhibit B, Page 1 

 EXHIBIT C – OUTLINE OF EQUIPMENT ROOM 

This plan is intended only to show the general outline of the Equipment Room as of the date of this Amendment. Any depiction of interior windows, walls,
cubicles, modules, furniture and equipment on this plan is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items. It does not in any way supersede any of
Landlord’s rights set forth in the Lease or this Amendment with respect to arrangements and/or locations of public parts of the Building. It is not necessarily to scale; any measurements or distances shown should be taken as approximate. The
inclusion of elevators, stairways, electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the Equipment Room. 

 
 

 
 One Kendall Square 

Cambridge, Massachusetts 
 Building 700 

Basement Level 

  
 Exhibit C, Page 1 

 EXHIBIT D – OUTLINE OF FOURTH AMENDMENT STORAGE SPACE 

This plan is intended only to show the general outline of the Fourth Amendment Storage Space as of the date of this Amendment. Any depiction of interior
windows, walls, cubicles, modules, furniture and equipment on this plan is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items. It does not in any way
supersede any of Landlord’s rights set forth in the Lease or this Amendment with respect to arrangements and/or locations of public parts of the Building. It is not necessarily to scale; any measurements or distances shown should be taken as
approximate. The inclusion of elevators, stairways, electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the Fourth Amendment Storage Space. 

 
 

 

  
 Exhibit D, Page 1 

 EXHIBIT E – SCHEDULE OF COMMENCEMENT DATES APPLICABLE TO FOURTH AMENDMENT PREMISES

  

			
	 Component of Fourth Amendment Premises
	  	 Commencement Date

	Former Addgene Space and the Equipment Room	  	The date that Landlord delivers possession of the Former Addgene Space and the Equipment Room to Tenant in the condition required by Section 2 above (the “Former Addgene Space Commencement
Date”)
		
	Former OmniGuide Space and the Fourth Amendment Storage Space	  	The date on which Landlord delivers possession of the Former OmniGuide Space and the Fourth Amendment Storage Space to Tenant in the condition required by Section 2 above (the “Former OmniGuide Space
Commencement Date;” each of the Former Addgene Space Commencement Date and the Former OmniGuide Space Commencement Date is referred to in this Amendment as a “Commencement Date”)

  
 Exhibit E, Page 1 

 EXHIBIT F – SCHEDULE OF ANTICIPATED DELIVERY DATES APPLICABLE TO FOURTH 

AMENDMENT PREMISES 
  

			
	 Component of Fourth Amendment Premises
	  	 Anticipated Delivery Date

	Former Addgene Space and the Equipment Room	  	September 1, 2015
		
	Former OmniGuide Space and the Fourth Amendment Storage Space	  	October 1, 2015

  
 Exhibit F, Page 1 

 EXHIBIT G – SCHEDULE OF LANDLORD’S WORK 

 

			
	 Component of Fourth Amendment Premises
	  	 Landlord’s Work

	Former OmniGuide Space	  	 •   Demolish and remove all existing leasehold improvements and deliver the space in
clean, shell condition.
  
 •  
Repair and level the floor.
  

•   Provide Building standard heat pumps* to Tenant in sufficient quantity to enable the Former
OmniGuide Space to be used for general office use, which heat pumps shall be installed by Tenant (such installation by Tenant being “Tenant’s Heat Pump Installation”).

		
	Equipment Room**	  	 •   Clean and decommission (to the extent not completed by the existing tenant) all
Equipment Room Lab Systems.
  

•   Deliver the Equipment Room Lab Systems in good working order and condition.

 
 •   Repair and patch
walls

  

	*	Heat pumps shall be sized to provide for cooling at 30 BTUs/sq. ft. and heating at 40 BTUs/sq.ft. 

	**	“Good working order and condition” for the following Equipment Room Lab Systems means: 

  

	 	•	 	Ph Neutralization system – system to be replaced or otherwise brought into compliance with applicable code, including 360 CMR 10 Regulations and Sewer Use Regulations 

 

	 	•	 	central vacuum system – standard lab system designed for 25 inches of Hg 

  

	 	•	 	RODI water system – maintaining purity levels to 18 Meg Ohm H2O 

  

	 	•	 	potable and non-potable water systems - per applicable plumbing codes and OSHA standards for laboratory use 

  

	 	•	 	effluent pumping system – per applicable MEP codes, including for supply and sewerage systems, and qualified by inspectional services of City of Cambridge 

  
 Exhibit G, Page 1 

 SCHEDULE 1 – EXHIBIT 7A TO THE ORIGINAL LEASE 

Basement 
  

																																																	
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Liquids
	 	1A	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	0	  	 	gallons
		 	 1B and 1 C
	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Combined Class 1
	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Class 2
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	360	  	 	 	0	  	 	 	720	  	 	gallons
		 	 Class 3A
	 	 	330	  	 	 	660	  	 	 	660	  	 	 	1320	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	990	  	 	 	0	  	 	 	1980	  	 	gallons
		 	 Class 3B
	 	 	13200	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	gallons
														
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Gas & Solids
	 	 Flammable Gas
	 	 
 	1000 ft3 at
STP	  
  	 	 	2000	  	 	 	2000	  	 	 	4000	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	3000	  	 	 	0	  	 	 	6000	  	 	ft3 at STP
		 	 Flammable Solid
	 	 	125 lbs	  	 	 	250	  	 	 	250	  	 	 	500	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	375	  	 	 	0	  	 	 	750	  	 	lbs
		 	 Pyrophoric Material
	 	 	4 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	8	  	 	 	8	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	6	  	 	 	0	  	 	 	12	  	 	lbs
		 	 Unstable Class 4
	 	 	1 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	2	  	 	 	2	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	1.5	  	 	 	0	  	 	 	3	  	 	lbs
		 	 Unstable Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	15	  	 	 	0	  	 	 	30	  	 	lbs
		 	 Unstable Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	150	  	 	 	0	  	 	 	300	  	 	lbs
		 	 Unstable Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	lbs
		 	 Water Reactive Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	15	  	 	 	0	  	 	 	30	  	 	lbs
		 	 Water Reactive Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	150	  	 	 	0	  	 	 	300	  	 	lbs
		 	 Water Reactive Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.75	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	lbs

  
 Schedule 1 

 1st Floor 
  

																																																	
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Liquids
	 	1A	 	 	30	  	 	 	60	  	 	 	60	  	 	 	120	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	360	  	 	 	0	  	 	 	120	  	 	gallons
		 	 1B and 1C
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	1440	  	 	 	35	  	 	 	445	  	 	gallons
		 	 Combined Class 1
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	1440	  	 	 	35	  	 	 	445	  	 	gallons
		 	 Class 2
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	1440	  	 	 	35	  	 	 	445	  	 	gallons
		 	 Class 3A
	 	 	330	  	 	 	660	  	 	 	660	  	 	 	1320	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	3960	  	 	 	35	  	 	 	1285	  	 	gallons
		 	 Class 3B
	 	 	13200	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	gallons
														
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Gas & Solids
	 	 Flammable Gas
	 	 
 	1000 ft3 at
STP	  
  	 	 	2000	  	 	 	2000	  	 	 	4000	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	12000	  	 	 	0	  	 	 	4000	  	 	ft3 at STP
		 	 Flammable Solid
	 	 	125 lbs	  	 	 	250	  	 	 	250	  	 	 	500	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	1500	  	 	 	0	  	 	 	500	  	 	lbs
		 	 Pyrophoric Material
	 	 	4 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	8	  	 	 	8	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	24	  	 	 	0	  	 	 	8	  	 	lbs
		 	 Unstable Class 4
	 	 	1 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	2	  	 	 	2	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	6	  	 	 	0	  	 	 	2	  	 	lbs
		 	 Unstable Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	60	  	 	 	0	  	 	 	20	  	 	lbs
		 	 Unstable Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	600	  	 	 	0	  	 	 	200	  	 	lbs
		 	 Unstable Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	lbs
		 	 Water Reactive Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	60	  	 	 	0	  	 	 	20	  	 	lbs
		 	 Water Reactive Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	600	  	 	 	0	  	 	 	200	  	 	lbs
		 	 Water Reactive Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	1	  	 	 	4	  	 	 	3	  	 	 	1	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	lbs

  
 Schedule 1 

 2nd Floor 

 

																																																	
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	Cambridge
BioLabs	 	 	OTHER
AVAILABLE	 	 	 
	 Liquids
	 	1A	 	 	30	  	 	 	60	  	 	 	60	  	 	 	120	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	180	  	 	 	0	  	 	 	90	  	 	gallons
		 	 1B and 1C
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	720	  	 	 	0	  	 	 	360	  	 	gallons
		 	 Combined Class 1
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	720	  	 	 	0	  	 	 	360	  	 	gallons
		 	 Class 2
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	720	  	 	 	0	  	 	 	360	  	 	gallons
		 	 Class 3A
	 	 	330	  	 	 	660	  	 	 	660	  	 	 	1320	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	1980	  	 	 	0	  	 	 	990	  	 	gallons
		 	 Class 3B
	 	 	13200	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	gallons
														
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	Cambridge
BioLabs	 	 	OTHER
AVAILABLE	 	 	 
	 Gas & Solids
	 	 Flammable Gas
	 	 
 	1000 ft3 at
STP	  
  	 	 	2000	  	 	 	2000	  	 	 	4000	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	6000	  	 	 	0	  	 	 	3000	  	 	ft3 at STP
		 	 Flammable Solid
	 	 	125 lbs	  	 	 	250	  	 	 	250	  	 	 	500	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	750	  	 	 	0	  	 	 	375	  	 	lbs
		 	 Pyrophoric Material
	 	 	4 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	8	  	 	 	8	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	12	  	 	 	0	  	 	 	6	  	 	lbs
		 	 Unstable Class 4
	 	 	1 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	2	  	 	 	2	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	3	  	 	 	0	  	 	 	1.5	  	 	lbs
		 	 Unstable Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	30	  	 	 	0	  	 	 	15	  	 	lbs
		 	 Unstable Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	300	  	 	 	0	  	 	 	150	  	 	lbs
		 	 Unstable Class 1
	 	 
  
	No Limit
 lbs
	  
   
	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	lbs
		 	 Water Reactive Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	30	  	 	 	0	  	 	 	15	  	 	lbs
		 	 Water Reactive Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	300	  	 	 	0	  	 	 	150	  	 	lbs
		 	 Water Reactive Class 1
	 	 
 	No Limit
lbs	  
  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.75	  	 	 	3	  	 	 	2	  	 	 	1	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	lbs

  
 Schedule 1 

 3rd Floor 
  

																																																	
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Liquids
	 	1A	 	 	30	  	 	 	60	  	 	 	60	  	 	 	120	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	120	  	 	gallons
		 	 1B and 1C
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	480	  	 	gallons
		 	 Combined Class 1
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	480	  	 	gallons
		 	 Class 2
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	480	  	 	gallons
		 	 Class 3A
	 	 	330	  	 	 	660	  	 	 	660	  	 	 	1320	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	1320	  	 	gallons
		 	 Class 3B
	 	 	13200	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	gallons
														
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Gas & Solids
	 	 Flammable Gas
	 	 
 	1000 ft3 at
STP	  
  	 	 	2000	  	 	 	2000	  	 	 	4000	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	4000	  	 	ft3 at STP
		 	 Flammable Solid
	 	 	125 lbs	  	 	 	250	  	 	 	250	  	 	 	500	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	500	  	 	lbs
		 	 Pyrophoric Material
	 	 	4 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	8	  	 	 	8	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	8	  	 	lbs
		 	 Unstable Class 4
	 	 	1 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	2	  	 	 	2	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	2	  	 	lbs
		 	 Unstable Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	20	  	 	lbs
		 	 Unstable Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	200	  	 	lbs
		 	 Unstable Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	lbs
		 	 Water Reactive Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	20	  	 	lbs
		 	 Water Reactive Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	 	200	  	 	lbs
		 	 Water Reactive Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.5	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	lbs

  
 Schedule 1 

 4th Floor 
  

																																																	
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Liquids
	 	1A	 	 	30	  	 	 	60	  	 	 	60	  	 	 	120	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	30	  	 	 	0	  	 	 	0	  	 	gallons
		 	 1B and 1C
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	120	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Combined Class 1
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	120	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Class 2
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	120	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Class 3A
	 	 	330	  	 	 	660	  	 	 	660	  	 	 	1320	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	330	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Class 3B
	 	 	13200	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	gallons
														
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Gas & Solids
	 	 Flammable Gas
	 	 
 	1000 ft3 at
STP	  
  	 	 	2000	  	 	 	2000	  	 	 	4000	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	1000	  	 	 	0	  	 	 	0	  	 	ft3 at STP
		 	 Flammable Solid
	 	 	125 lbs	  	 	 	250	  	 	 	250	  	 	 	500	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	125	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Pyrophoric Material
	 	 	4 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	8	  	 	 	8	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Unstable Class 4
	 	 	1 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	2	  	 	 	2	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	0.5	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Unstable Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	5	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Unstable Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	50	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Unstable Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	No Limit	  	 	 	0	  	 	 	No Limit	  	 	lbs
		 	 Water Reactive Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	5	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Water Reactive Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	50	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Water Reactive Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	No Limit	  	 	 	No limit	  	 	 	No Limit	  	 	lbs

  
 Schedule 1 

 5th Floor 
  

																																																	
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Liquids
	 	1A	 	 	30	  	 	 	60	  	 	 	60	  	 	 	120	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	30	  	 	 	0	  	 	 	0	  	 	gallons
		 	 1B and 1C
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	120	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Combined Class 1
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	120	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Class 2
	 	 	120	  	 	 	240	  	 	 	240	  	 	 	480	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	120	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Class 3A
	 	 	330	  	 	 	660	  	 	 	660	  	 	 	1320	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	330	  	 	 	0	  	 	 	0	  	 	gallons
		 	 Class 3B
	 	 	13200	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	 
 	Unlimited if
sprinklered	  
  	 	gallons
														
	 	 	 Class
	 	Baseline
Permitted
Storage	 	 	Adjusted
for 100%
A.S.	 	 	Adjusted
for 100%
Cabinets	 	 	Adjusted
for both
A.S. &
Cab.	 	 	%
Above
or
Below
Grade	 	 	Total
Control
Areas	 	 	Merrimack
Control
Areas	 	 	Remaining
Control
Areas	 	 	MERRIMACK
ALLOWANCE	 	 	OTHER
USAGE	 	 	OTHER
AVAILABLE	 	 	 
	 Gas & Solids
	 	 Flammable Gas
	 	 
 	1000 ft3 at
STP	  
  	 	 	2000	  	 	 	2000	  	 	 	4000	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	1000	  	 	 	0	  	 	 	0	  	 	ft3 at STP
		 	 Flammable Solid
	 	 	125 lbs	  	 	 	250	  	 	 	250	  	 	 	500	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	125	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Pyrophoric Material
	 	 	4 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	8	  	 	 	8	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	2	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Unstable Class 4
	 	 	1 lbs	  	 	 
 	Must be
sprinklered	  
  	 	 	2	  	 	 	2	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	0.5	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Unstable Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	5	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Unstable Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	50	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Unstable Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	No Limit	  	 	 	No limit	  	 	 	No Limit	  	 	lbs
		 	 Water Reactive Class 3
	 	 	5 lbs	  	 	 	10	  	 	 	10	  	 	 	20	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	5	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Water Reactive Class 2
	 	 	50 lbs	  	 	 	100	  	 	 	100	  	 	 	200	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	50	  	 	 	0	  	 	 	0	  	 	lbs
		 	 Water Reactive Class 1
	 	 	No Limit lbs	  	 	 	No Limit	  	 	 	No Limit	  	 	 	No Limit	  	 	 	0.125	  	 	 	2	  	 	 	2	  	 	 	0	  	 	 	No Limit	  	 	 	No limit	  	 	 	No Limit	  	 	lbs

  
 Schedule 1Exhibit

Exhibit 10.2

VIRTUSTREAM GROUP HOLDINGS, INC.

2009 EQUITY INCENTIVE PLAN

ADOPTED BY THE BOARD OF DIRECTORS: JANUARY 12, 2009
APPROVED BY THE STOCKHOLDERS: JANUARY 16, 2009
AMENDED: DECEMBER 15, 2009, JANUARY 15, 2010, DECEMBER 14, 2011, MARCH 14, 2012 AND APRIL 21, 2014
APPROVED BY THE STOCKHOLDERS: DECEMBER 15, 2009, JANUARY 15, 2010, JANUARY 10, 2012 AND APRIL 2, 2012
TERMINATION DATE: JANUARY 11, 2019

		
	1.
	GENERAL.

(a)Eligible Stock Award Recipients.  The persons eligible to receive Stock Awards are Employees, Directors and Consultants.

(b)Available Stock Awards.  The Plan provides for the grant of the following Stock Awards:  (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Restricted Stock Awards, (iv) Restricted Stock Unit Awards, and (v) Stock Appreciation Rights.

(c)Purpose.  The Company, by means of the Plan, seeks to secure and retain the services of the group of persons eligible to receive Stock Awards as set forth in Section 1(a), to provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate, and to provide a means by which such eligible recipients may be given an opportunity to benefit from increases in value of the Common Stock through the granting of Stock Awards.

		
	2.
	ADMINISTRATION.

(a)Administration by Board.  The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees, as provided in Section 2(c).

(b)Powers of Board.  The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

(i)To determine from time to time (A) which of the persons eligible under the Plan shall be granted Stock Awards; (B) when and how each Stock Award shall be granted; (C) what type or combination of types of Stock Award shall be granted; (D) the provisions of each Stock Award granted (which need not be identical), including the time or times when a person shall be permitted to receive cash or Common Stock pursuant to a Stock Award; (E) the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person; and (F) the Fair Market Value applicable to a Stock Award.

(ii)To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for administration of the Plan.  The Board, 

in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan or Stock Award fully effective.

(iii)To settle all controversies regarding the Plan and Stock Awards granted under it.

(iv)To accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during which it will vest.

(v)To suspend or terminate the Plan at any time.  Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant.

(vi)To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, relating to Incentive Stock Options and certain nonqualified deferred compensation under Section 409A of the Code and/or to bring the Plan or Stock Awards granted under the Plan into compliance therewith, subject to the limitations, if any, of applicable law.  However, except as provided in Section 9(a) relating to Capitalization Adjustments, to the extent required by applicable law, stockholder approval shall be required for any amendment of the Plan that either (i) materially increases the number of shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of individuals eligible to receive Stock Awards under the Plan, (iii) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (iv) materially extends the term of the Plan, or (v) expands the types of Stock Awards available for issuance under the Plan.  Except as provided above, rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant consents in writing.

(vii)To submit any amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 422 of the Code regarding Incentive Stock Options.

(viii)To approve forms of Stock Award Agreements for use under the Plan and to amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide terms more favorable than previously provided in the Stock Award Agreement, subject to any specified limits in the Plan that are not subject to Board discretion; provided however, that, the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant consents in writing.  Notwithstanding the foregoing, subject to the limitations of applicable law, if any, and without the affected Participant’s consent, the Board may amend the terms of any one or more Stock Awards if necessary to maintain the qualified status of the Stock Award as an Incentive Stock Option or to bring the Stock Award into compliance with Section 409A of the Code and the related guidance thereunder.

2.

(ix)Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Stock Awards.

(x)To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Directors or Consultants who are foreign nationals or employed outside the United States.

(xi)To effect, at any time and from time to time, with the consent of any adversely affected Participant, (1) the reduction of the exercise price or strike price of any outstanding Option or Stock Appreciation Right under the Plan, (2) the cancellation of any outstanding Option or Stock Appreciation Right under the Plan and the grant in substitution therefor of (A) a new Option under the Plan or another equity plan of the Company covering the same or a different number of shares of Common Stock, (B) a Restricted Stock Award, (C) Restricted Stock Unit Award, (D) cash and/or (E) other valuable consideration (as determined by the Board, in its sole discretion), or (3) any other action that is treated as a repricing under generally accepted accounting principles; provided, however, that no such reduction or cancellation may be effected if it is determined, in the Company’s sole discretion, that such reduction or cancellation would result in any such outstanding Option becoming subject to the requirements of Section 409A of the Code.

(c)Delegation to Committee.  The Board may delegate some or all of the administration of the Plan to a Committee or Committees.  If administration of the Plan is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), 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 retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.

(d)Delegation to an Officer.  The Board may delegate to one or more Officers of the Company the authority to do one or both of the following: (i) designate Officers and Employees of the Company or any of its Subsidiaries to be recipients of Options (and, to the extent permitted by applicable law, other Stock Awards) and the terms thereof, and (ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such Officers and Employees; provided, however, that the Board resolutions regarding such delegation shall specify the total number of shares of Common Stock that may be subject to the Stock Awards granted by such Officer and that such Officer may not grant a Stock Award to himself or herself.  Notwithstanding the foregoing, the Board may not delegate authority to an Officer to determine the Fair Market Value of the Common Stock pursuant to Section 13(t) below.

(e)Effect of Board’s Decision.  All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons.

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(f)Arbitration.  Any dispute or claim concerning any Stock Awards granted (or not granted) pursuant to the Plan or any disputes or claims relating to or arising out of the Plan shall be fully, finally and exclusively resolved by binding and confidential arbitration conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association in the location of the Company’s principal headquarters.  The Company shall pay the costs of filing the arbitration and the arbitrator’s fees and expenses (but each side shall be responsible for paying their own attorneys’ fees and expenses).  By accepting a Stock Award, Participants and the Company waive their respective rights to have any such disputes or claims tried by a judge or jury.

		
	3.
	SHARES SUBJECT TO THE PLAN.

(a)Share Reserve.  Subject to Section 9(a) relating to Capitalization Adjustments, the aggregate number of shares of Common Stock that may be issued pursuant to Stock Awards after the Effective Date shall not exceed 23,175,541 shares.  For clarity, the limitation in this Section 3(a) is a limitation in the number of shares of Common Stock that may be issued pursuant to the Plan.  Accordingly, this Section 3(a) does not limit the granting of Stock Awards except as provided in Section 7(a).

(b)Reversion of Shares to the Share Reserve.  If any shares of Common Stock issued pursuant to a Stock Award are forfeited back to the Company because of the failure to meet a contingency or condition required to vest such shares in the Participant, then the shares which are forfeited shall revert to and again become available for issuance under the Plan.  Also, any shares reacquired by the Company pursuant to Section 8(g) or as consideration for the exercise of an Option shall again become available for issuance under the Plan.  Furthermore, if a Stock Award (i) expires or otherwise terminates without having been exercised in full or (ii) is settled in cash (i.e., the holder of the Stock Award receives cash rather than stock), such expiration, termination or settlement shall not reduce (or otherwise offset) the number of shares of Common Stock that may be issued pursuant to the Plan.  Notwithstanding the provisions of this Section 3(b), any such shares shall not be subsequently issued pursuant to the exercise of Incentive Stock Options.

(c)Incentive Stock Option Limit.  Notwithstanding anything to the contrary in this Section 3, subject to the provisions of Section 9(a) relating to Capitalization Adjustments, the aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options shall be 12,565,418 shares of Common Stock.

(d)Source of Shares.  The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market.

		
	4.
	ELIGIBILITY.    

(a)Eligibility for Specific Stock Awards.  Incentive Stock Options may be granted only to employees of the Company or a “parent corporation” or “subsidiary corporation” thereof (as such terms are defined in Sections 424(e) and (f) of the Code).  Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants.

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(b)Ten Percent Stockholders.  A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant and the Option is not exercisable after the expiration of five (5) years from the date of grant.

(c)Consultants.  A Consultant shall not be eligible for the grant of a Stock Award if, at the time of grant, either the offer or the sale of the Company’s securities to such Consultant is not exempt under Rule 701 of the Securities Act (“Rule 701”) because of the nature of the services that the Consultant is providing to the Company, because the Consultant is not a natural person, or because of any other provision of Rule 701, unless the Company determines that such grant need not comply with the requirements of Rule 701 and will satisfy another exemption under the Securities Act as well as comply with the securities laws of all other relevant jurisdictions.

		
	5.
	OPTION PROVISIONS.

Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates shall be issued for shares of Common Stock purchased on exercise of each type of Option.  If an Option is not specifically designated as an Incentive Stock Option, then the Option shall be a Nonstatutory Stock Option.  The provisions of separate Options need not be identical; provided, however, that each Option Agreement shall include (through incorporation of provisions hereof by reference in the Option Agreement or otherwise) the substance of each of the following provisions:

(a)Term.  Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Option Agreement.

(b)Exercise Price.  Subject to the provisions of Section 4(b) regarding Incentive Stock Options granted to Ten Percent Stockholders, the exercise price of each Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted.  Notwithstanding the foregoing, an Option may be granted with an exercise price lower than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option if such Option is granted pursuant to an assumption or substitution for another option in a manner consistent with the provisions of Section 424(a) of the Code (whether or not such options are Incentive Stock Options).

(c)Consideration.  The purchase price of Common Stock acquired pursuant to the exercise of an Option shall be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below.  The Board shall have the authority to grant Options that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of payment.  The permitted methods of payment are as follows:

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(i)by cash, check, bank draft or money order payable to the Company;

(ii)pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds;

(iii)by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock;

(iv)by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issued upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash or other payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, further, that shares of Common Stock will no longer be outstanding under an Option and will not be exercisable thereafter to the extent that (A) shares are used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations;

(v)according to a deferred payment or similar arrangement with the Optionholder; provided, however, that interest shall compound at least annually and shall be charged at the minimum rate of interest necessary to avoid (A) the imputation of interest income to the Company and compensation income to the Optionholder under any applicable provisions of the Code, and (B) the classification of the Option as a liability for financial accounting purposes; or

(vi)in any other form of legal consideration that may be acceptable to the Board.

(d)Transferability of Options.  The Board may, in its sole discretion, impose such limitations on the transferability of Options as the Board shall determine.  In the absence of such a determination by the Board to the contrary, the following restrictions on the transferability of Options shall apply:

(i)Restrictions on Transfer.  An Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder; provided, however, that the Board may, in its sole discretion, permit transfer of the Option to such extent as permitted by Rule 701 of the Securities Act at the time of the grant of the Option and in a manner consistent with applicable tax and securities laws upon the Optionholder’s request.

(ii)Domestic Relations Orders.  Notwithstanding the foregoing, an Option may be transferred pursuant to a domestic relations order, provided, however, that an Incentive Stock Option may be deemed to be a Nonstatutory Stock Option as a result of such transfer.

6.

(iii)Beneficiary Designation.  Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be the beneficiary of an Option with the right to exercise the Option and receive the Common Stock or other consideration resulting from the Option exercise.

(e)Vesting of Options Generally.  The total number of shares of Common Stock subject to an Option may vest and therefore become exercisable in periodic installments that may or may not be equal.  The Option may be subject to such other terms and conditions on the time or times when it may or may not be exercised (which may be based on the satisfaction of performance goals or other criteria) as the Board may deem appropriate.  The vesting provisions of individual Options may vary.  The provisions of this Section 5(e) are subject to any Option provisions governing the minimum number of shares of Common Stock as to which an Option may be exercised.

(f)Termination of Continuous Service.  Except as otherwise provided in the applicable Option Agreement or other agreement between the Optionholder and the Company, in the event that an Optionholder’s Continuous Service terminates (other than for Cause or upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement.  If, after termination of Continuous Service, the Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate.

(g)Extension of Termination Date.  Except as otherwise provided in the applicable Option Agreement or other agreement between the Optionholder and the Company, if the exercise of the Option following the termination of the Optionholder’s Continuous Service (other than for Cause or upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration requirements, or (ii) the expiration of the term of the Option as set forth in the Option Agreement.

(h)Disability of Optionholder.  Except as otherwise provided in the applicable Option Agreement or other agreement between the Optionholder and the Company, in the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination of Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement.  If, after termination of Continuous Service, the Optionholder does not exercise his or her Option 

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within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate.

(i)Death of Optionholder.  Except as otherwise provided in the applicable Option Agreement or other agreement between the Optionholder and the Company, in the event that (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death, or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated as the beneficiary of the Option upon the Optionholder’s death, but only within the period ending on the earlier of (i) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of such Option as set forth in the Option Agreement.  If, after the Optionholder’s death, the Option is not exercised within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate.  If the Optionholder designates a third party beneficiary of the Option in accordance with Section 5(d)(iii), then upon the death of the Optionholder such designated beneficiary shall have the sole right to exercise the Option and receive the Common Stock or other consideration resulting from the Option exercise.

(j)Termination for Cause.  Except as explicitly provided otherwise in an Optionholder’s Option Agreement, in the event that an Optionholder’s Continuous Service is terminated for Cause, the Option shall terminate upon the termination date of such Optionholder’s Continuous Service, and the Optionholder shall be prohibited from exercising his or her Option from and after the time of such termination of Continuous Service.

(k)Non-Exempt Employees.  No Option granted to an Employee that is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable for any shares of Common Stock until at least six months following the date of grant of the Option.  The foregoing provision is intended to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option will be exempt from his or her regular rate of pay.

(l)Early Exercise.  The Option may, but need not, include a provision whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option.  Any unvested shares of Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate.  The Company shall not be required to exercise its repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid classification of the Option as a liability for financial accounting purposes) have elapsed following exercise of the Option unless the Board otherwise specifically provides in the Option Agreement.

(m)Company Investment Documents.  The Option may, but need not, include a provision whereby the Company may require that as a condition to exercising the Option, the 

8.

Optionholder must become a party to the Company’s Voting Agreement, Right of First Refusal and Co-Sale Agreement, and/or such other stockholder agreements as the Company may request.

(n)Right of Repurchase.  The Option may include a provision whereby the Company may elect to repurchase all or any part of the vested shares of Common Stock acquired by the Optionholder pursuant to the exercise of the Option.

(o)Right of First Refusal.  The Option may include a provision whereby the Company may elect to exercise a right of first refusal following receipt of notice from the Optionholder of the intent to transfer all or any part of the shares of Common Stock received upon the exercise of the Option.  Except as expressly provided in this Section 5(o) or in the Stock Award Agreement for the Option, such right of first refusal shall otherwise comply with any applicable provisions of the Bylaws of the Company.

		
	6.
	PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

(a)Restricted Stock Awards.  Each Restricted Stock Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  To the extent consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be (x) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (y) evidenced by a certificate, which certificate shall be held in such form and manner as determined by the Board.  The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical; provided, however, that each Restricted Stock Award Agreement shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

(i)Consideration.  A Restricted Stock Award may be awarded in consideration for (A) past or future services actually or to be rendered to the Company or an Affiliate, or (B) any other form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law.

(ii)Vesting.  Shares of Common Stock awarded under the Restricted Stock Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board.

(iii)Termination of Participant’s Continuous Service.  In the event a Participant’s Continuous Service terminates, the Company may receive via a forfeiture condition, any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.

(iv)Transferability.  Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board shall determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement.

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(b)Restricted Stock Unit Awards.  Each Restricted Stock Unit Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical, provided, however, that each Restricted Stock Unit Award Agreement shall include (through incorporation of the provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:

(i)Consideration.  At the time of grant of a Restricted Stock Unit Award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award.  The consideration to be paid (if any) by the Participant for each share of Common Stock subject to a Restricted Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law.

(ii)Vesting.  At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate.

(iii)Payment.  A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.

(iv)Additional Restrictions.  At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award.

(v)Dividend Equivalents.  Dividend equivalents may be credited in respect of shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.  At the sole discretion of the Board, such dividend equivalents may be converted into additional shares of Common Stock covered by the Restricted Stock Unit Award in such manner as determined by the Board.  Any additional shares covered by the Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject to all the terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they relate.

(vi)Termination of Participant’s Continuous Service.  Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service.

(vii)Compliance with Section 409A of the Code.  Notwithstanding anything to the contrary set forth herein, any Restricted Stock Unit Award granted under the Plan that is not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Restricted Stock Unit Award will comply with the requirements of Section 409A of the 

10.

Code.  Such restrictions, if any, shall be determined by the Board and contained in the Restricted Stock Unit Award Agreement evidencing such Restricted Stock Unit Award.  For example, such restrictions may include, without limitation, a requirement that any Common Stock that is to be issued in a year following the year in which the Restricted Stock Unit Award vests must be issued in accordance with a fixed pre-determined schedule.

(c)Stock Appreciation Rights.  Each Stock Appreciation Right Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  Stock Appreciation Rights may be granted as stand-alone Stock Awards or in tandem with other Stock Awards.  The terms and conditions of Stock Appreciation Right Agreements may change from time to time, and the terms and conditions of separate Stock Appreciation Right Agreements need not be identical; provided, however, that each Stock Appreciation Right Agreement shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

(i)Term.  No Stock Appreciation Right shall be exercisable after the expiration of ten (10) years from the date of grant or such shorter period specified in the Stock Appreciation Right Agreement.

(ii)Strike Price.  Each Stock Appreciation Right will be denominated in shares of Common Stock equivalents.  The strike price of each Stock Appreciation Right granted as a stand-alone or tandem Stock Award shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock equivalents subject to the Stock Appreciation Right on the date of grant.

(iii)Calculation of Appreciation.  The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of shares of Common Stock equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) the strike price that will be determined by the Board on the date of grant.

(iv)Vesting.  At the time of the grant of a Stock Appreciation Right, the Board may impose such restrictions or conditions to the vesting of such Stock Appreciation Right as it, in its sole discretion, deems appropriate.

(v)Exercise.  To exercise any outstanding Stock Appreciation Right, the Participant must provide written notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.

(vi)Non-Exempt Employees.  No Stock Appreciation Right granted to an Employee that is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable for any shares of Common Stock until at least six months following the date of grant of the Stock Appreciation Right.  The foregoing provision is intended 

11.

to operate so that any income derived by a non-exempt employee in connection with the exercise of a Stock Appreciation Right will be exempt from his or her regular rate of pay.

(vii)Payment.  The appreciation distribution in respect to a Stock Appreciation Right may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.

(viii)Termination of Continuous Service.  Except as otherwise provided in the applicable Stock Appreciation Right Agreement or other agreement between the Participant and the Company, in the event that a Participant’s Continuous Service terminates (other than for Cause or upon the Participant’s death or Disability), the Participant may exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (A) the date three (3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the Stock Appreciation Right Agreement), or (B) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right shall terminate.

(ix)Disability of Participant.  Except as otherwise provided in the applicable Stock Appreciation Right Agreement or other agreement between the Participant and the Company, in the event that a Participant’s Continuous Service terminates as a result of the Participant’s Disability, the Participant may exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination of Continuous Service), but only within such period of time ending on the earlier of (A) the date twelve (12) months following such termination of Continuous Service (or such longer or shorter period specified in the Stock Appreciation Right Agreement), or (B) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement.  If, after termination of Continuous Service, the Participant does not exercise his or her Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right shall terminate.

(x)Death of Participant.  Except as otherwise provided in the applicable Stock Appreciation Right Agreement or other agreement between the Participant and the Company, in the event that (i) a Participant’s Continuous Service terminates as a result of the Participant’s death, or (ii) the Participant dies within the period (if any) specified in the Stock Appreciation Right Agreement after the termination of the Participant’s Continuous Service for a reason other than death, then the Stock Appreciation Right may be exercised (to the extent the Participant was entitled to exercise such Stock Appreciation Right as of the date of death) by the Participant’s estate, by a person who acquired the right to exercise the Stock Appreciation Right by bequest or inheritance or by a person designated as the beneficiary of the Stock Appreciation Right upon the Participant’s death, but only within the period ending on the earlier of (i) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Stock Appreciation Right Agreement), or (ii) the expiration of the term of such Stock 

12.

Appreciation Right as set forth in the Stock Appreciation Right Agreement.  If, after the Participant’s death, the Stock Appreciation Right is not exercised within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right shall terminate.

(xi)Termination for Cause.  Except as explicitly provided otherwise in an Participant’s Stock Appreciation Right Agreement, in the event that a Participant’s Continuous Service is terminated for Cause, the Stock Appreciation Right shall terminate upon the termination date of such Participant’s Continuous Service, and the Participant shall be prohibited from exercising his or her Stock Appreciation Right from and after the time of such termination of Continuous Service.

(xii)Compliance with Section 409A of the Code.  Notwithstanding anything to the contrary set forth herein, any Stock Appreciation Rights granted under the Plan that are not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Stock Appreciation Rights will comply with the requirements of Section 409A of the Code.  Such restrictions, if any, shall be determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.  For example, such restrictions may include, without limitation, a requirement that a Stock Appreciation Right that is to be paid wholly or partly in cash must be exercised and paid in accordance with a fixed pre-determined schedule.

		
	7.
	COVENANTS OF THE COMPANY.

(a)Availability of Shares.  During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock reasonably required to satisfy such Stock Awards.

(b)Securities Law Compliance.  The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award.  If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained.

(c)No Obligation to Notify.  The Company shall have no duty or obligation to any holder of a Stock Award to advise such holder as to the time or manner of exercising such Stock Award.  Furthermore, the Company shall have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock Award may not be exercised.  The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the holder of such Stock Award.

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	8.
	MISCELLANEOUS.

(a)Use of Proceeds from Sales of Common Stock.  Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute general funds of the Company.

(b)Corporate Action Constituting Grant of Stock Awards.  Corporate action constituting a grant by the Company of a Stock Award to any Participant shall be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received or accepted by, the Participant.

(c)Stockholder Rights.  No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms and the Participant shall not be deemed to be a stockholder of record until the issuance of the Common Stock pursuant to such exercise has been entered into the books and records of the Company.

(d)No Employment or Other Service Rights.  Nothing in the Plan, any Stock Award Agreement or any other instrument executed thereunder or in connection with any Stock Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

(e)Incentive Stock Option $100,000 Limitation.  To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s).

(f)Investment Assurances.  The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise 

14.

distributing the Common Stock.  The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (x) the issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (y) 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, 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 Common Stock.

(g)Withholding Obligations.  Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation relating to a Stock Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid classification of the Stock Award as a liability for financial accounting purposes); (iii) withholding payment from any amounts otherwise payable to the Participant; (iv) withholding cash from a Stock Award settled in cash; or (v) by such other method as may be set forth in the Stock Award Agreement.

(h)Electronic Delivery.  Any reference herein to a “written” agreement or document shall include any agreement or document delivered electronically or posted on the Company’s intranet.

(i)Deferrals.  To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Stock Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants.  Deferrals by Participants will be made in accordance with Section 409A of the Code.  Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee.  The Board is authorized to make deferrals of Stock Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of employment or retirement, and implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law.

(j)Compliance with Section 409A.  To the extent that the Board determines that any Stock Award granted hereunder is subject to Section 409A of the Code, the Stock Award Agreement evidencing such Stock Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code.  To the extent applicable, the Plan and Stock Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date.  Notwithstanding any provision of the Plan to the 

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contrary, in the event that following the Effective Date the Board determines that any Stock Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Board may adopt such amendments to the Plan and the applicable Stock Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Board determines are necessary or appropriate to (1) exempt the Stock Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Stock Award, or (2) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance.

(k)Compliance with Exemption Provided by Rule 12h-1(f).  If: (i) the aggregate of the number of Optionholders and the number of holders of all other outstanding compensatory employee stock options to purchase shares of Common Stock equals or exceeds five hundred (500), and (ii) the assets of the Company at the end of the Company’s most recently completed fiscal year exceed $10 million, then the following restrictions shall apply during any period during which the Company does not have a class of its securities registered under Section 12 of the Exchange Act and is not required to file reports under Section 15(d) of the Exchange Act: (A) the Options and, prior to exercise, the shares of Common Stock acquired upon exercise of the Options may not be transferred until the Company is no longer relying on the exemption provided by Rule 12h-1(f) promulgated under the Exchange Act (“Rule 12h-1(f)”), except: (1) as permitted by Rule 701(c) promulgated under the Securities Act, (2) to a guardian upon the disability of the Optionholder, or (3) to an executor upon the death of the Optionholder (collectively, the “Permitted Transferees”); provided, however, the following transfers are permitted: (i) transfers by the Optionholder to the Company, and (ii) transfers in connection with a change of control or other acquisition involving the Company, if following such transaction, the Options no longer remain outstanding and the Company is no longer relying on the exemption provided by Rule 12h-1(f); provided further, that any Permitted Transferees may not further transfer the Options; (B) except as otherwise provided in (A) above, the Options and shares of Common Stock acquired upon exercise of the Options are restricted as to any pledge, hypothecation, or other transfer, including any short position, any “put equivalent position” as defined by Rule 16a-1(h) promulgated under the Exchange Act, or any “call equivalent position” as defined by Rule 16a-1(b) promulgated under the Exchange Act by the Optionholder prior to exercise of an Option until the Company is no longer relying on the exemption provided by Rule 12h-1(f); and (C) at any time that the Company is relying on the exemption provided by Rule 12h-1(f), the Company shall deliver to Optionholders (whether by physical or electronic delivery or written notice of the availability of the information on an internet site) the information required by Rule 701(e)(3), (4), and (5) promulgated under the Securities Act every six (6) months, including financial statements that are not more than one hundred eighty (180) days old; provided, however, that the Company may condition the delivery of such information upon the Optionholder’s agreement to maintain its confidentiality.

		
	9.
	ADJUSTMENTS UPON CHANGES IN COMMON STOCK; OTHER CORPORATE EVENTS.

(a)Capitalization Adjustments.  In the event of a Capitalization Adjustment, the Board shall proportionately and appropriately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of 

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securities that may be issued pursuant to the exercise of Incentive Stock Options pursuant to Section 3(c), and (iii) the class(es) and number of securities and price per share of stock subject to outstanding Stock Awards.  The Board shall make such adjustments, and its determination shall be final, binding and conclusive.

(b)Dissolution or Liquidation.  Except as otherwise provided in the Stock Award Agreement, in the event of a dissolution or liquidation of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to the Company’s right of repurchase) shall terminate immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion.

(c)Corporation Transaction.  The following provisions shall apply to Stock Awards in the event of a Corporate Transaction unless otherwise provided in the instrument evidencing the Stock Award or any other written agreement between the Company or any Affiliate and the holder of the Stock Award or unless otherwise expressly provided by the Board at the time of grant of a Stock Award.  Except as otherwise stated in the Stock Award Agreement, in the event of a Corporate Transaction, then, notwithstanding any other provision of the Plan, the Board shall take one or more of the following actions with respect to Stock Awards, contingent upon the closing or completion of the Corporate Transaction:

(i)arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) to assume or continue the Stock Award or to substitute a similar stock award for the Stock Award (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction);

(ii)arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to the Stock Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company);

(iii)accelerate the vesting of the Stock Award (and, if applicable, the time at which the Stock Award may be exercised) to a date prior to the effective time of such Corporate Transaction as the Board shall determine (and contingent upon the effectiveness of the Corporate Transaction);

(iv)arrange for the lapse of any reacquisition or repurchase rights held by the Company with respect to the Stock Award;

(v)cancel or arrange for the cancellation of the Stock Award, to the extent not vested or not exercised prior to the effective time of the Corporate Transaction;

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(vi)arrange for the Stock Award to be subject to any holdbacks, escrows and contingencies to which such Stock Award would have been subject had it been fully vested and exercised prior to the closing or completion of the Corporate Transaction; and

(vii)make a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the property the holder of the Stock Award would have received upon the exercise of the Stock Award, over (B) any exercise price payable by such holder in connection with such exercise.  For purposes of clarity, this payment may be zero if the value of the property is equal to or less than the exercise price.

The Board need not take the same action with respect to all Stock Awards (and may take different actions with respect to the vested and unvested portions of the same Stock Award) or with respect to all Participants.

(d)Change in Control.  A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration shall occur.

		
	10.
	TERMINATION OR SUSPENSION OF THE PLAN.

(a)Plan Term.  The Board may suspend or terminate the Plan at any time.  Unless sooner terminated by the Board pursuant to Section 2, the Plan shall automatically terminate on the day before the tenth (10th) anniversary of the earlier of (i) the date the Pan is adopted by the Board, or (ii) the date the Plan is approved by the stockholders of the Company.  No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated.

(b)No Impairment of Rights.  Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant.

		
	11.
	EFFECTIVE DATE OF PLAN.

This Plan shall become effective on the Effective Date.

		
	12.
	CHOICE OF LAW.

The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to that state’s conflict of laws rules.

13.    DEFINITIONS.  As used in the Plan, the following definitions shall apply to the capitalized terms indicated below:

(a)“Affiliate” means, at the time of determination, any “parent” or “majority-owned subsidiary” of the Company, as such terms are defined in Rule 405 of the Securities Act.  The 

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Board shall have the authority to determine the time or times at which “parent” or “majority-owned subsidiary” status is determined within the foregoing definition.

(b)“Board” means the Board of Directors of the Company.

(c)“Capitalization Adjustment” means any change that is made in, or other events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, 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).  Notwithstanding the foregoing, the conversion of any convertible securities of the Company shall not be treated as a transaction “without the receipt of consideration” by the Company.

(d)“Cause” shall have the meaning of the term “Cause” (or any comparable term) contained in any then effective employment agreement or other letter between the Participant and the Company, or if no such agreement or letter exists, or if the term is not defined, shall mean with respect to a Participant, the occurrence of any of the following events: (i) such Participant’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such Participant’s attempted commission of, or participation in, a fraud or act of dishonesty against the Company; (iii) such Participant’s intentional, material violation of any contract or agreement between the Participant and the Company or of any statutory duty owed to the Company; (iv) such Participant’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) such Participant’s gross misconduct.  The determination that a termination of the Participant’s Continuous Service is either for Cause or without Cause shall be made by the Company in its sole discretion.  Any determination by the Company that the Continuous Service of a Participant was terminated by reason of dismissal without Cause for the purposes of outstanding Stock Awards held by such Participant shall have no effect upon any determination of the rights or obligations of the Company or such Participant for any other purpose.

(e)“Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

(i)any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction.  Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a 

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result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

(ii)there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;

(iii)the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation;

(iv)there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition; or

(v)individuals who, on the date this Plan is adopted by the Board, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

Notwithstanding the foregoing definition or any other provision of this Plan, (A) the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company, and (B) the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply.

		
	(f)
	“Code” means the Internal Revenue Code of 1986, as amended.

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(g)“Committee” means a committee of one (1) or more Directors to whom authority has been delegated by the Board in accordance with Section 2(c).

(h)“Common Stock” means the common stock of the Company.

(i)“Company” means Virtustream Group Holdings, Inc., a Delaware corporation.

(j)“Consultant” means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services.  However, service solely as a Director, or payment of a fee for such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan.

(k)“Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated.  A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Director, or Consultant or a change in the Entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service; provided, however, if the Entity for which a Participant is rendering service ceases to qualify as an Affiliate, as determined by the Board in its sole discretion, such Participant’s Continuous Service shall be considered to have terminated on the date such Entity ceases to qualify as an Affiliate.  For example, a change in status from an employee of the Company to a consultant of an Affiliate or to a Director shall not constitute an interruption of Continuous Service.  To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave.  Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.

(l)“Corporate Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

(i)the consummation of a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;

(ii)the consummation of a sale or other disposition of at least fifty percent (50%) of the outstanding securities of the Company;

(iii)the consummation of a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

(iv)the consummation of a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted 

21.

or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.

(m)“Director” means a member of the Board.

(n)“Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code, and shall be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

(o)“Effective Date” means the effective date of this Plan, which is the earlier of (i) the date that this Plan is first approved by the Company’s stockholders, or (ii) the date this Plan is adopted by the Board.

(p)“Employee” means any person employed by the Company or an Affiliate.  However, service solely as a Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for purposes of the Plan.

(q)“Entity” means a corporation, partnership, limited liability company or other entity.

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

(s)“Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) of 14(d) of the Exchange Act) that, as of the Effective Date of the Plan as set forth in Section 11, is the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities.

(t)“Fair Market Value” means, as of any date, the value of the Common Stock determined by the Board in compliance with Section 409A of the Code or, in the case of an Incentive Stock Option, in compliance with Section 422 of the Code.

(u)“Good Reason” means that one or more of the following are undertaken by the Company without your express written consent: (i) the assignment to you of any duties or responsibilities that results in a material diminution of your function as in effect immediately prior to the effective date of the Change in Control; provided, however, that a change in your title or reporting relationships shall not provide the basis for a voluntary termination with Good Reason; (ii) a material reduction by the Company in your annual base salary, as in effect on the effective date of the Change in Control or as increased thereafter; provided, however, that Good Reason shall not be deemed to have occurred in the event of a reduction in your annual base salary that is pursuant to a salary reduction program affecting substantially all of the employees 

22.

of the Company and that does not adversely affect you to a greater extent than other similarly situated employees; (iii) any failure by the Company to continue in effect any benefit plan or program, including incentive plans or plans with respect to the receipt of securities of the Company, in which you were participating immediately prior to the effective date of the Change in Control (hereinafter referred to as “Benefit Plans”), or the taking of any action by the Company that would adversely affect your participation in or reduce your benefits under the Benefit Plans or deprive you of any fringe benefit that you enjoyed immediately prior to the effective date of the Change in Control; provided, however, that Good Reason shall not be deemed to have occurred if the Company provides for your participation in benefit plans and programs that, taken as a whole, are comparable to the Benefit Plans; (iv) a relocation of your business office to a location more than 100 miles from the location at which you performed you duties as of the effective date of the Change in Control, except for required travel by you on the Company’s business to an extent substantially consistent with your business travel obligations prior to the effective date of the Change in Control; or (v) a material breach by the Company of any provision of the Plan or the Option Agreement or any other material agreement between you and the Company concerning the terms and conditions of your employment.

(v)“Incentive Stock Option” means an Option that qualifies as an “incentive stock option” within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

(w)“Nonstatutory Stock Option” means an Option that does not qualify as an Incentive Stock Option.

(x)“Officer” means any person designated by the Company as an officer.

(y)“Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant to the Plan.

(z)“Option Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an Option grant.  Each Option Agreement shall be subject to the terms and conditions of the Plan.

(aa)“Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

(bb)    “Own,” “Owned,” “Owner,” “Ownership”  A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.

(cc)    “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award.

(dd)    “Plan” means this Virtustream Group Holdings, Inc. 2009 Equity Incentive Plan, as amended from time to time.

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(ee)    “Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(a).

(ff)    “Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award.  Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan.

(gg)    “Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted pursuant to the terms and conditions of Section 6(b).

(hh)    “Restricted Stock Unit Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant.  Each Restricted Stock Unit Award Agreement shall be subject to the terms and conditions of the Plan.

(ii)    “Securities Act” means the Securities Act of 1933, as amended.

(jj)    “Stock Appreciation Right” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 6(c).

(kk)    “Stock Appreciation Right Agreement” means a written agreement between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant.  Each Stock Appreciation Right Agreement shall be subject to the terms and conditions of the Plan.

(ll)    “Stock Award” means any right to receive Common Stock granted under the Plan, including an Incentive Stock Option, a Nonstatutory Stock Option, a Restricted Stock Award, a Restricted Stock Unit Award, or a Stock Appreciation Right.

(mm)    “Stock Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of a Stock Award grant.  Each Stock Award Agreement shall be subject to the terms and conditions of the Plan.

(nn)    “Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%).

(oo)    “Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Affiliate.

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