Document:

exv10w9

Exhibit 10.9

 

INSURANCE SERVICES OFFICE, INC.

1996 INCENTVE PLAN

(Effective as of January 1, 1997)

(As amended through September 18,2002)

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. PURPOSE OF PLAN

	 	 	1	 
	 
	 	 	 	 
	2. DEFINITIONS

	 	 	1	 
	 
	 	 	 	 
	3. ADMINISTRATION OF PLAN

	 	 	4	 
	 
	 	 	 	 
	4. AWARDS, OFFERS AND PARTICIPANT LOANS

	 	 	4	 
	 
	 	 	 	 
	5. AWARDS OF OPTIONS

	 	 	5	 
	 
	 	 	 	 
	6. AWARDS OF RESTRICTED STOCK

	 	 	8	 
	 
	 	 	 	 
	7. STOCK PURCHASE OFFERS

	 	 	10	 
	 
	 	 	 	 
	8. LOAN PROGRAM

	 	 	13	 
	 
	 	 	 	 
	9. LIMITATIONS AND CONDITIONS

	 	 	15	 
	 
	 	 	 	 
	10. STOCK ADJUSTMENTS; PUBLIC OFFERING

	 	 	17	 
	 
	 	 	 	 
	11. AMENDMENT AND TERMINATION

	 	 	18	 
	 
	 	 	 	 
	12. WITHHOLDING TAXES

	 	 	18	 
	 
	 	 	 	 
	13. LEGENDS

	 	 	19	 
	 
	 	 	 	 
	14. EFFECTIVE DATE

	 	 	19	 

 

 

INSURANCE SERVICES OFFICE, INC.

1996 INCENTIVE PLAN

(Effective as of January 1, 1997)

(As amended through September 18, 2002)

1. Purpose of Plan 

          The purpose of this 1996 incentive Plan is to aid the Company in securing and retaining Key
Employees of outstanding ability by making it possible to offer them increased incentives, which
may include a proprietary interest in the Company, to join or continue in the service of the
Company and to increase their efforts for its welfare.

2. Definitions

          As used in the Plan, the following words shall have the following meanings:

          (a) “Award” means an award or grant made to a Participant pursuant to the Plan, including,
without limitation, an award or grant of an Option, an award or grant of Restricted Stock, or any
combination thereof;

          (b) “Award Agreement” means an agreement between the Company and a Participant that sets forth
the terms, conditions and limitations applicable to an Award;

          (c) “Board of Directors” means the Board of Directors of the Company;

          (d) “Cause” means (i) a material failure by the Participant to perform his or her duties which
shall persist uncured for a ninety (90) day period after written notice is given to the Participant
setting forth in detail the duties which the Company alleges the Participant failed to perform;
(ii) the commission by the Participant of a felony, a crime involving moral turpitude or the
perpetration by Participant of a common law fraud; or (iii) any other willful act or

 

 

omission by the Participant, which is materially injurious to the financial condition or business reputation of
the Company.

          (e) “Committee” means a committee of the Board of Directors having authority delegated by the
Board of Directors to establish compensation arrangements relating to the Company;

          (f) “Common Stock” means Class A common stock of the Company;

          (g) “Company” means Insurance Services Office, Inc.;

          (h) “Disability” means the Participant ceases his or her employment with the Company because
he or she is unable, as a result of a mental or physical illness, to perform the essential duties
of his or her position with the Company with reasonable accommodation.

          (i) “Exercise Price” means the price at which a Participant may purchase Common Stock pursuant
to an Option;

          (j) “Fair Market Value” means the value per share of Common Stock determined by the most
recent appraisal conducted pursuant to the Insurance Services Office, Inc. Employee Stock Ownership
Plan;

          (k) “Good Reason” means (i) the Company’s diminution of the Participant’s duties,
responsibilities, position, title with the Company, authority, annual base salary, or aggregate
level of employee benefits; or (ii) the relocation without consent of the Participant to a location
more than thirty (30) miles from Participant’s work location.

          (l) “Key Employee” means any person in the regular full-time employment of the Company who, in
the opinion of the Committee, is or is expected to be primarily responsible for the management,
growth or protection of some part or all of the business of the Company;

2

 

          (m) “Non-Employee Director” means a director on the Board of Directors of the Company who is
not employed by the Company;

          (n) “Offer” or “Stock Purchase Offer” means an offer made to a Participant to purchase Common
Stock pursuant to Section 7;

          (o) “Offer Agreement” means the written instrument setting forth the terms and conditions
pursuant to which a Participant may purchase shares of Common Stock under the Plan in connection
with an Offer;

          (p) “Option” or “Nonqualified Stock Option” means a stock option granted pursuant to Section 5
to purchase shares of Common Stock which is intended not to qualify as an incentive stock option as
defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”);

          (q) “Participant” means a person to whom one or more Awards or Offers have been granted that
have not all been forfeited or terminated under the Plan;

          (r) “Participant Loan” shall mean a loan financed by the Company and issued to a Participant
pursuant to Section 8 for the purchase of Common Stock pursuant to an Offer Agreement;

          (s) “Plan” means this 1996 Incentive Plan;

          (t) “Promissory Note” means the written instrument evidencing a Participant Loan made by the
Company to a Participant for the purpose of purchasing stock under Section 7;

          (u) “Purchase Date” means the last day of a period of three months commencing on the effective
date of an Offer Agreement;

3

 

          (v) “Restricted Stock” means shares of Common Stock granted pursuant to Section 6; and

          (w) “Restriction Period” means the period specified in Section 6(b)(i).

          (x) “Retirement” means the Participant has ceased employment with the Company (but not as a
result of being terminated for Cause) and has terminated his or her career.

3. Administration of Plan 

          The Plan shall be administered by the Committee whose members shall be appointed by the Board
of Directors. The Committee shall consist of no less than three members of the Board of Directors.
The Committee may adopt its own rules of procedure, and the action of a majority of the Committee,
taken at a meeting, or taken without a meeting by unanimous written consent of the members of the
Committee, shall constitute action by the Committee. The Committee shall have the power and
authority to administer the Plan, and shall make recommendations to the Board of Directors
regarding Awards, Offers and Participant Loans. All Awards, Offers and Participant Loans under the
Plan shall be approved by the Board of Directors.

4. Awards, Offers and Participant Loans 

          The Committee may from time to time make such Awards and/or Offers under the Plan in such form
and having such terms, conditions and limitations as the Committee may determine consistent with
the terms of the Plan. Awards and/or Offers may be granted singly, in combination or in tandem. The
terms, conditions and limitations of each Award and/or Offer under the Plan shall be set forth in
an Award Agreement and/or Offer Agreement, in a form approved by the Committee, consistent,
however, with the terms of the Plan. Any Award to a Non-Employee Director must also be approved in
writing by the Board of Directors.

4

 

          The Committee shall offer Participant Loans to certain Participants as provided hereunder. The
Committee shall determine the terms, conditions and limitations of such Participant Loans in a
manner consistent with the Plan. The terms, conditions and limitations of
each Participant Loan shall be set forth in a Promissory Note, in a form approved of by the
Committee, consistent, however, with the terms of the Plan.

5. Awards of Options

          (a) The Board of Directors may grant from time to time to Key Employees and Non-Employee
Directors Nonqualified Stock Options to purchase shares of Common Stock. The terms and conditions
with respect to each grant of Options under the Plan shall be consistent with the following unless
otherwise specified in the Award Agreement or Option:

          (i) The Exercise Price per share of Common Stock issuable upon the exercise of an Option shall
be determined byte Board of Directors at the time of grant of such Option.

          (ii) Exercise of the Option shall be conditioned upon the Participant named therein having met
the exercise requirements as stated in the Award Agreement. An Option may be exercisable in whole
or in part upon the completion of a required employment period, achievement of certain performance
criteria, or a combination thereof, as determined by the Committee. If a Participant’s employment
with the Company terminates on account of the Participant’s death, Disability or Retirement, all
Options held by the Participant which have not yet become exercisable, but would become exercisable
solely upon the completion of a required employment period with the Company, shall immediately
become exercisable and shall remain exercisable for a period of twelve months following the date of
such termination. If within two years following a Change of Control (as defined in the Award
Agreement or Option) the

5

 

Participant terminates his or her employment with the Company for Good
Reason or the Company terminates the Participant’s employment without Cause, all outstanding
Options held by the Participant which have not yet become exercisable shall immediately become
exercisable and shall remain exercisable for a period of twelve months following the date of such
termination. An Option that becomes exercisable shall remain exercisable until the expiration
of ten years from the date of grant of the Option, unless an earlier expiration date is stated in
the Award Agreement or the Option ceases to be exercisable pursuant to Section 5(a)(iv) below. The
Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber an
unexercised Option.

          (iii) Payment in full of the Exercise Price shall be made upon exercise of the related Option
and may be made in cash, by the delivery of shares of Common Stock with an aggregate Fair Market
Value as of the date of exercise equal to the Exercise Price, or by a combination of cash and such
shares whose Fair Market Value as of the date of exercise together with such cash shall equal such
Exercise Price.

          (iv) If a Participant’s employment with the Company terminates for any reason other than (A)
the Participant’s death, Disability or Retirement (but only with respect to Options that become
exercisable solely upon the completion of a required employment period) or (B) within two years
following a Change of Control (as defined in the Award Agreement or Option) termination by the
Participant for Good Reason or termination by the Company without Cause, any Options held by such
Participant which have not yet become exercisable shall terminate and any Options held by such
Participant which have become exercisable shall terminate and cease to

6

 

be exercisable at 5:00 p.m.
on the 90th day following the date of such termination or the first day thereafter not a Saturday,
Sunday or Holiday except as otherwise provided in Section 10.

          (b) The holder of an Option who decides to exercise the Option in whole or in part shall give
notice to the Secretary of the Company of such exercise in writing on a form approved by the
Committee. Any exercise shall be effective as of the date specified in the notice of exercise, but
not earlier than the date the notice of the exercise, together with payment in full
of the Exercise Price and any required withholding taxes, is actually received by the
Secretary of the Company.

          (c) Except as otherwise provided in Section 10, at any time after exercise of an Option, the
Participant shall have the right to require the Company to purchase Common Stock that the
Participant acquired through exercise of an Option. The purchase price of such stock shall be the
Fair Market Value on the date the Company receives notice from the Participant of the Participant’s
intent to sell such stock to the Company.

          (d) If the Participant’s employment terminates for any reason, including death, Disability or
Retirement, upon expiration of the 12-month period immediately following the date of termination,
the Company may thereafter require the Participant to sell all shares of Common Stock that the
Participant purchased through exercise of an Option to the Company. The sale price of such stock
shall be the Fair Market Value on the date the Participant receives notice from the Company that it
is exercising the right to require the Participant to sell such shares to the Company.

          (e) Upon expiration of the 5 year period immediately following the date of expiration oaf
Non-Employee Director’s term, the Company may thereafter require the Non-

7

 

Employee Director to sell
all shares of Common Stock that the Non-Employee Director purchased through exercise of an Option
or otherwise to the Company. The sale price of such stock shall be the Fair Market Value on the
date the Non-Employee Director receives notice from the Company that it is exercising the right to
require the Non-Employee Director to sell such shares to the Company.

          (f) The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise
encumber shares of Common Stock purchased through exercise of an Option except as provided in
subsection 5(c) or 5(d).

6. Awards of Restricted Stock

          The Board of Directors may grant Restricted Stock from time to time to Key Employees and
Non-Employee Directors. The terms and conditions with respect to each grant of Restricted Stock
under the Plan shall be consistent with the following unless otherwise specified in the Award of
Restricted Stock:

          (a) The terms and conditions of each Award of Restricted Stock need not be the same with
respect to each Participant. Each Award of Restricted Stock shall be subject to forfeiture as set
forth in the Plan and may be otherwise subject to forfeiture as set forth in the provisions of such
Award.

          (b) All Awards of Restricted Stock shall be subject to the restrictions set forth in this
Section 6(b).

          (i) Subject to the provisions of the Plan and the applicable Award Agreement, the Committee
shall establish for each Award of Restricted Stock a period commencing on the date of such Award
(the “Restriction Period”). The Committee shall determine the nature, length

8

 

and/or termination
date of such Restriction Period for each Award of Restricted Stock. In the Committee’s discretion,
the Restriction Period may terminate after a period of years of continuous employment. The
Restriction Period may also be based on the achievement of performance objectives. Such performance
objectives, as well as the determination as to when such performance objectives have been achieved
shall be determined by the Committee for each Award of Restricted Stock. Performance objectives may
vary from Participant to Participant and
between groups of Participants and shall be based upon revenues, operating income, operating
company contribution, cash flow, income before income taxes, net income, earnings per share, return
on equity or assets or total return to stockholders, whether applicable to the Company or any
relevant business unit or any combination thereof, as the Committee may deem appropriate. The
Restriction Period for any Award issued pursuant to this Section 6 must be scheduled in the
applicable Award Agreement such that it terminates within 30 days following the scheduled release
of an appraisal of Common Stock pursuant to the ISO Employee Stock Ownership Plan.

          (ii) Shares of Restricted Stock granted to a Participant shall have all the attributes of
outstanding shares of Common Stock, including the right to receive dividends and distributions,
except certificates for such shares shall be delivered to and held by the Company until the
expiration of the Restriction Period with respect to such shares without a prior forfeiture
thereof. The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise
encumber shares of Restricted Stock during the Restriction Period.

          (iii) Except to the extent otherwise provided in Section 10, upon termination of a
Participant’s employment with the Company for any reason, including death, Disability or

9

 

Retirement, during the Restriction Period, all shares still subject to restriction shall be
forfeited by the Participant.

          (iv) Upon expiration of the Restriction Period with respect to any shares of Restricted Stock
without prior forfeiture thereof, certificates therefor held by the Company shall be delivered to
the Participant.

          (v) Except as otherwise provided in Section 10, upon the expiration of the Restriction Period
with respect to any shares of Restricted Stock without prior forfeiture thereof, or any time
thereafter, the Participant shall have the right to require the Company to purchase
such shares. The purchase price shall be the Fair Market Value on the date the Company
receives notice from the Participant of the Participant’s intent to sell such stock to the Company.

          (vi) Except as otherwise provided in Section 10, upon expiration of the Restriction Period
with respect to any shares of Restricted Stock without prior forfeiture thereof, and/or any time
thereafter, if the Participant’s employment terminates for any reason, including death, Disability
or Retirement, the Company may require the Participant to sell all such shares to the Company. The
sale price of such shares shall be the Fair Market Value on the effective date of termination of
the Participant’s employment.

          (vii) The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise
encumber shares of Restricted Stock after expiration of the Restriction Period except as provided
in Subsection 6(c)(v) or 6(c)(vi).

7. Stock Purchase Offers 

          The Board of Directors may make from time to time to Key Employees and Non-Employee Directors
Offers to purchase Common Stock. The terms and conditions with respect to

10

 

each Stock Purchase Offer
under the Plan shall be consistent with the following unless otherwise specified in the Offer
Agreement:

          (a) The Board of Directors shall determine the number of shares of Common Stock offered for
purchase or a formula for determination of the number of shares of Common Stock to be offered for
purchase. The number of shares of Common Stock offered to each Participant for purchase under this
Section need not be the same.

          (b) The purchase price shall be the Fair Market Value on the effective date of the Offer
Agreement.

          (c) The stated term of each Offer Agreement shall be three months.

          (d) Each Offer Agreement shall provide that the Participant on the Purchase Date shall
purchase all of the shares covered thereby unless the Participant shall have, in the manner
provided for in the Offer Agreement, notified the person specified in the Offer Agreement, on or
before the Purchase Date, that he or she does not desire to purchase any of such shares or that he
or she desires to purchase fewer than all of such shares. Failure to notify as aforesaid shall be
deemed an election by the Participant to purchase all of the shares covered by the Offer Agreement
on the Purchase Date.

          (e) Each Offer Agreement shall provide that the Participant who has entered into it may at any
time on or before the Purchase Date terminate the Offer Agreement in its entirety by delivering
written notice in the form and to the person specified in the Offer Agreement.

          (f) Each Offer Agreement shall provide that the Participant, from time to time prior to the
Purchase Date, on written notice received by the person specified in the Offer

11

 

Agreement at least
five business days prior to the end of any calendar month, may elect to purchase on the last day of
such month or of any subsequent month (unless the Purchase Date shall first occur) all or fewer
than all of the shares covered by the Offer Agreement.

          (g) The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise
encumber a Stock Purchase Offer.

          (h) If a Participant’s employment with the Company terminates for any reason, including the
Participant’s death, Disability or Retirement, the Participant’s Offer shall terminate, except as
otherwise provided in Section 10.

          (i) Except as otherwise provided in Section 10, if the Participant’s employment terminates for
any reason, including the Participant’s death, Disability or
Retirement, the Company may require the Participant to sell all shares of Common Stock that
the Participant purchased through a Stock Purchase Offer to the Company. The sale price of such
shares shall be the Fair Market Value on the effective date of termination of the Participant’s
employment.

          (j) Except as otherwise provided in Section 10, at any time after a Participant has purchased
Common Stock pursuant to an Offer Agreement, the Participant shall have the right to require the
Company to purchase such shares. The purchase price shall be the Fair Market Value on the date the
Company receives notice from the Participant of the Participant’s intent to sell such stock to the
Company.

          (k) The Participant shall not be permitted to sell, assign, transfer, pledge or otherwise
encumber shares of Common Stock purchased through a Stock Purchase Offer other than as provided in
subsection 7(i) and 7(j).

12

 

8. Loan Program 

          The Board of Directors shall offer to each Participant who receives a Stock Purchase Offer
under Section 7 hereof, a Participant Loan to purchase stock pursuant to the Participant’s Offer
Agreement. The terms and conditions of each Participant Loan under the Plan shall be consistent
with the following unless otherwise specified in the terms of the Participant Loan:

          (a) Participant Loans made pursuant to the Plan shall be used by the Participant solely in
connection with the purchase of Common Stock through a Stock Purchase Offer.

          (b) Each share of Common Stock purchased with a Participant Loan shall be collateralized as
follows: (1) the Participant Loan amount representing 50% of the purchase price
of each share of Common Stock shall be collateralized only with the Common Stock purchased
with the proceeds of the Participant Loan amount; and (2) the Participant Loan amount representing
the remaining 50% of the purchase price shall be collateralized with the Common Stock purchased
with the proceeds of the Participant Loan amount and, to the extent that such collateral does not
equal the value of the Participant Loan amount, the Committee shall have recourse against the
Participant’s personal assets.

          (c) The amount of any Participant Loan offered under the Plan shall not exceed the price of
the Common Stock purchased with the proceeds of the Participant Loan. A Participant may elect to
borrow less than the foregoing sum, in the Participant’s sole discretion. A Participant shall be
eligible for more than one Participant Loan.

13

 

          (d) Each Participant Loan made hereunder shall be evidenced by a Promissory Note, in such form
and containing such provisions, not inconsistent herewith, as the Committee shall determine.

          (e) Any Promissory Note issued hereunder shall bear interest at a rate to be determined by the
Committee, but in no case shall such interest rate be lower than the applicable federal rate as
published monthly in Internal Revenue Service Revenue Rulings. The Committee may, in its
discretion, determine that interest shall be capitalized.

          (f) The term of the Participant Loan shall be determined by the Committee, but in no case
shall the term exceed ten years.

          (g) Each Participant Loan shall require periodic payments of interest accrued on the
Participant Loan. The unpaid principal amount and any unpaid interest thereon shall become due and
payable on the last day of the term of the Participant Loan. The Company shall have the right to
withhold such payments from the Participant’s paycheck.

          (h) Notwithstanding the foregoing, if a Participant sells Common Stock, and such Common Stock
was purchased entirely or in part with the proceeds of a Participant Loan, the price paid for such
Common Stock shall first be applied to any unpaid principal amount and any unpaid interest thereon.
The Participant shall be entitled to the remainder of the price paid by the Company after such
amounts have been paid.

          (i) Notwithstanding the foregoing, any dividend issued on Common Stock purchased through a
Stock Purchase Offer with the proceeds of a Participant Loan shall, at the discretion of the
Committee, be applied to any unpaid principal amount and any unpaid interest thereon.

14

 

          (j) Notwithstanding any other provision of the Plan, a Participant who has received a
Participant Loan shall have the option to repay in cash or in shares of Common Stock acquired other
than through a Stock Purchase Offer (valued at the Fair Market Value on the date of delivery), or
in a combination of both, all or any portion of the outstanding balance of the Participant Loan at
any time before the Participant Loan becomes due and payable.

          (k) The Participant shall not be permitted to assign a Participant Loan.

9. Limitations and Conditions

          (a) The total number of shares of Common Stock that maybe offered to Key Employees through
Awards and Offers under this Plan may not exceed 15% of the total number of issued and outstanding
shares of all classes of stock of the Company as of the effective date of the Award Agreement or
Offer Agreement, except that the foregoing number of shares may be increased or decreased by the
events set forth in Section 10. In the event that the Company makes an acquisition or is party to a
merger or consolidation, and the Company assumes awards and/or offers of the company acquired,
merged or consolidated which are consistent with and
administered pursuant to the provisions of this Plan, shares of Common Stock subject to such
awards and/or offers shall not count as part of the total number of shares of Common Stock that may
be offered to Key Employees through Awards and Offers under this Plan.

          (b) The total number of shares of Common Stock that may be offered to Non-Employee Directors
through Offers under this Plan may not exceed 25% of the total number of shares of Common Stock
offered to Key Employees through Offers and the total number of shares of Common Stock that may be
offered to Non-Employee Directors under the Plan through Awards may not exceed 25% of the total
number of shares of Common Stock offered to Key

15

 

Employees through Awards under this Plan, except
that the foregoing number of shares may be increased or decreased by the events set forth in
Section 10. In the event the Company makes an acquisition or is party to a merger or consolidation,
and the Company assumes awards and/or offers of the company acquired, merged or consolidated which
are consistent with and administered pursuant to the provisions of this Plan, shares of Common
Stock subject to such awards and/or offers shall not count as part of the total number of shares of
Common Stock that maybe offered through Awards and Offers under this Plan.

          (c) Any shares that have been made subject to an Award or an Offer that cease to be subject to
the Award or the Offer (other than by reason of exercise or payment of the Award or Offer to the
extent it is settled in shares) shall again be available for Award or Offer.

          (d) The terms of Awards and Offers granted on or before termination of the Plan may extend
beyond termination of the Plan in accordance with the provisions of the Award or the Offer.

          (e) No person who receives an Award or Offer under the Plan which includes shares of Common
Stock (which may include shares of Restricted Stock) or the right to acquire shares of Common Stock shall have any rights oaf stockholder (i) as to shares under Awards of
an Option until, after proper exercise of the Option, such shares have been recorded on the
Company’s official stockholder records as having been issued or transferred, or (ii) as to shares
included in Awards of Restricted Stock or purchased pursuant to a Stock Purchase Offer, until such
shares shall have been recorded on the Company’s official stockholder records as having been issued
or transferred.

16

 

          (f) Nothing contained herein shall affect the right of the Company to terminate any
Participant’s employment at any time or for any reason.

          (g) Restrictions on Certain Transactions Involving Common Stock. Notwithstanding any
other provision of the Plan to the contrary, and unless the Committee otherwise determines,
whenever blackout period restrictions are placed on participants in the ISO 401(k) Savings and
Employee Stock Ownership Plan, similar restrictions with respect to transactions involving Common
Stock under the Plan shall be placed on the Participants over the same period of time. These
restrictions can include, but are not limited to, restrictions on (a) award grants under the Plan,
(b) exercise of stock options under the Plan, (c) stock redemptions under the Plan, (d) put and
call rights under the Plan, and (e) distributions under the Plan. The Company will communicate such
restrictions to the Participants and other interested parties within a reasonable period of time in
advance of the implementation of such restrictions.

10. Stock Adjustments; Public Offering

          (a) In the event of any merger, consolidation, stock or other non-cash dividend, extraordinary
cash dividend, split-up, spin-off, combination or exchange of shares, reorganization or
recapitalization or change in capitalization, or any other similar corporate event, the Committee
may make such adjustments in (i) the aggregate number of shares subject to the
Plan and the number of shares that may be made subject to Awards to any individual Participant
(ii) the number and kind of shares that are subject to any Option and the Exercise Price per share
without any change in the aggregate Exercise Price to be paid therefor upon exercise of the Option,
and (iii) the number and kind of shares of outstanding Restricted Stock, as the

17

 

Committee shall
deem appropriate in the circumstances. The determination by the Committee as to the terms of any of
the foregoing adjustments shall be conclusive and binding.

          (b) Notwithstanding any provision contained in the Plan, if the Company shall list shares of
its capital stock on a United States securities exchange or nationally recognized stock quotation
system, no Participant shall thereafter be entitled to require the Company to purchase shares of
Common Stock and the Company will not be entitled to require a Participant to sell to the Company
shares of Common Stock pursuant to the terms of this Plan.

11. Amendment and Termination

          (a) The Board of Directors shall have the power to amend the Plan. The Board of Directors may,
at its discretion, amend Award Agreement(s), Offer Agreement(s) and/or Promissory Notes, provided
however, that such amendment(s) may not impair the rights oaf Participant without the consent of
such Participant, except to the extent, if any, provided in the Plan, the Award Agreement, the
Offer Agreement and/or Promissory Note.

          (b) The Board of Directors may suspend or terminate the Plan at any time. No such suspension
or termination shall affect Awards or Offers then in effect.

12. Withholding Taxes 

          The Company shall have the right to deduct from any cash payment made under the Plan any
federal, state or local income or other taxes required by law to be withheld with respect to such
payment. Upon a Participant’s exercise of an Option, or upon delivery of
Restricted Stock at the expiration of the Restriction Period, the Participant shall be
obligated to pay to the Company such amount as may be requested by the Company for the purpose of
satisfying any liability for such withholding taxes. All Restricted Stock Award Agreements shall

18

 

provide, and any other Award Agreement may provide, that the Participant may elect, in accordance
with any conditions set forth in such Award Agreement, to pay any withholding taxes in shares of
Common Stock.

13. Legends 

          Each certificate issued with respect to a share of Common Stock purchased pursuant to an
Option or an Offer or granted pursuant to an Award of Restricted Stock shall bear an appropriate
legend referring to the terms, conditions and restrictions applicable to such share of Common
Stock.

14. Effective Date

          The Plan shall be effective on and as of January 1, 1997 subject to approval thereof by the
stockholders of the Company.

          IN WITNESS WHEREOF, this Plan has been executed pursuant to action of its Board of Directors
on the 19th day of September, 1996, and amended effective February 26, 1997 pursuant to action of
its Board of Directors taken on the 27th day of March, 1997, and further amended December 18, 1997,
March 25, 1998, September 16, 1998, and September 18, 2002 pursuant to actions of its Board of
Directors taken on such dates.

	 	 	 	 	 
	 	INSURANCE SERVICES OFFICE, INC.

 	 
	 	By:  	/s/ Frank J. Coyne 	 
	 	 	Frank J. Coyne 	 
	 	 	Chairman, President and

Chief Executive Officer 	 

19

 

2008 Amendment

to the

Insurance Services Office, Inc. 1996 Incentive Plan

(as Amended through September 18, 2002)

     WHEREAS, Insurance Services Office, Inc. (the “Company”) maintains the Insurance Services Office,
Inc. 1996 Incentive Plan, as amended (the “Plan”) in order to attract, retain and provide
incentives to key employees and non-employee Directors; and

     WHEREAS, Section 11(a) of the Plan provides that the Board of Directors of the Company (the
“Board”) may amend the Plan and any Award Agreements between the Company and any Participant (as
defined in the Plan) entered into pursuant to the Plan; and

     WHEREAS, the Board has determined that it is in the best interest of the Company to amend the Plan
to permit the use of Awards under the Plan as collateral security for third party loans to
Participants

     NOW, THEREFORE, THE PLAN IS HEREBY AMENDED IN THE FOLLOWING RESPECT:

1. New Section 15 is hereby added to the Plan which shall read entirely as follows:

          Section 15. Collateral Assignment.

	 	(a)	 	Notwithstanding anything to the contrary contained in Section
5(f), 6(vii), 7(k) or any other provision of this Plan or in any Award
Agreement, a Participant shall be permitted to pledge or otherwise grant a
security interest in such Participant’s shares of Common Stock
to a lender to secure a loan or other extension of credit made to such
Participant. Such pledge or other security interest shall be subject to all
other provisions of the Plan, including, without limitation the right of the
Company to repurchase shares of Common Stock set forth in Sections 5(e), 5(f),
6(vi), and 7(i).

 

 

	 	(b)	 	Notwithstanding anything to the contrary contained this Plan
or in any Award Agreement, a Participant shall be permitted to collaterally
assign such Participants right to require the Company to repurchase shares of
Common Stock contained in Sections 5(c), 6(v) or 7(j) of the Plan (or any
similar provision of any Award Agreement) to a lender to secure a loan or
other extension of credit made to such Participant. Such pledge or other
security interest shall be subject to all other provisions of the Plan and/or
Award Agreement, including, without limitation, Section 10 of the Plan.
Notwithstanding the first sentence of this Section 15(b), a Participant shall
not be permitted to assign any such rights to the extent such assignment is
prohibited by applicable law, including, without limitation Section 402 of the
Sarbanes-Oxley Act of 2002.

     IN
WITNESS WHEREOF, the Board has caused this amendment to be executed effective this ___ day of
June, 2008.

	 	 	 	 	 
	 	INSURANCE SERVICES OFFICE, INC.

 	 
	 	By:  	/s/ Frank J. Coyne
 	 
	 	 	Frank J. Coyne 	 
	 	 	Chairman, President and Chief Executive Officer 	 

2

 

	 	 	 	 	 

STOCK OPTION AGREEMENT

FOR

«Full_Name»

(Revised
April 2009)

 

 

INSURANCE SERVICES OFFICE, INC.

1996 INCENTIVE PLAN

STOCK OPTION AGREEMENT FOR EMPLOYEES

          THIS AGREEMENT, made effective as of «date» (the “Grant Date”), amends and restates all prior
Stock Option Agreements between Insurance Services Office, Inc. (the “Company”) and «Full_Name»
(the “Optionee”).

          WHEREAS, the Company has adopted the Insurance Services Office, Inc. 1996 Incentive Plan (the
“Plan”) to provide incentives to key employees and directors of the Company;

          WHEREAS, unless otherwise defined herein, the capitalized terms used in this Agreement shall
have the same definitions as set forth in the Plan; and

          WHEREAS, the Board of Directors has determined to grant the Option (as defined below) to the
Optionee as provided herein.

          NOW, THEREFORE, the parties hereto agree as follows:

          1. Definitions. For purposes of this Agreement, the following terms have the
following meanings:

               “Business Day” – a day on which banks in the City of New York are generally open for
business.

               “Change of Control” – as defined in Section 5.2.

               “Company” – as defined in the Recitals to this Agreement.

               “Competes” – as defined in Section 10.1.

               “Exercise Term” – as defined in Section 4.

               “Final Closing Date” – as defined in Section 9.2.

               “Grant Date” – as defined in the Recitals to this Agreement.

               “Option” – as defined in Section 2.1.

               “Optionee” – as defined in the Recitals to this Agreement.

               “Option Price” – as defined in Section 3.

 

 

               “Plan” – as defined in the Recitals to this Agreement.

               “Proposed Closing Date” – as defined in Section 9.1.

               “Prudential Agreement” – the Uncommitted Master Shelf Agreement, dated as of June 13, 2003
(as amended from time to time), among the Company, Prudential Investment Management, Inc., the
purchasers and each Prudential affiliate that becomes a party thereto.

               “Retirement” – termination by the Optionee of his or her employment with the Company after he
or she (i) has reached age sixty-two (62) and (ii) has been employed by the Company for at least
five (5) consecutive years immediately prior to such termination of employment.

               “Section 9.1 Notice” – as defined in Section 9.1.

          2. Grant and Acceptance of Option.

               2.1 The Company hereby grants to the Optionee, effective as of the Grant Date, the right and
option (the “Option”) to purchase all or any part of an aggregate number of whole shares of Common
Stock specified in Schedule I attached hereto, as amended or supplemented from time to time,
subject to, and in accordance with, the terms and conditions set forth in this Agreement.

               2.2 This Agreement shall be construed in accordance with, and shall be subject to, the
provisions of the Plan (the provisions of which are incorporated herein by reference).

               2.3 Optionee’s signature and delivery of a copy of this Agreement will not commit the Optionee
to purchase any Common Stock that is subject to the Option but will evidence the Optionee’s
acceptance of the Option upon the terms and conditions herein stated.

               2.4 The Option is not intended to qualify as an Incentive Stock Option within the meaning of
Section 422 of the Code.

          3. Purchase Price. The price per share of Common Stock at which the Optionee shall be
entitled to purchase Common Stock upon the exercise of the Option (the “Option Price”) is set forth
on Schedule I hereto.

          4. Duration of Option. Upon becoming exercisable, the Option shall remain exercisable
to the extent and in the manner provided herein for a period of 10
years from the Grant Date (the “Exercise Term”), unless the Option earlier ceases to be
exercisable pursuant to Section 5(a)(iv) of the Plan or Section 5 hereof.

2

 

          5. Exercisability of Option.

               5.1 Unless otherwise provided in this Agreement, the Plan or the rules that may be adopted by
the Committee from time to time under the Plan, the Option shall entitle the Optionee to purchase,
in whole at any time or in part from time to time, the total number of shares of Common Stock
covered by the Option after the expiration of the period(s) of time set forth in the vesting
schedule in Schedule I; provided, however, that if,

	 	(i)	 	the Optionee ceases to be an employee of the Company on
account of the Optionee’s death, Disability or Retirement or,
	 
	 	(ii)	 	within two years following a Change of Control, the Optionee
ceases to be an employee of the Company because the Optionee terminates his or
her employment for Good Reason or the Company terminates the Optionee’s
employment without Cause,

the Option shall immediately be exercisable with respect to the total number of unexercised shares
covered by the Option (whether or not the period(s) of time set forth in the vesting schedule in
Schedule I shall have expired), and shall remain exercisable for a period of twelve months
following the date the Optionee ceased to be an employee of the Company.

               5.2 A “Change of Control” shall occur if the Company, in a single transaction or series of
related transactions, is merged with, consolidated into, or acquired by, another corporation,
and after such transaction or series of transactions, (a) any person or group (within the
meaning of Rule 13d-5 promulgated under the Securities Act of 1934), other than (i) the Optionee,
acting alone or in concert with others; (ii) one or more ISO employee benefit plans; or (iii) a
combination of (i) and (ii), shall beneficially own or control more than 25% of any class of voting
securities entitled to vote for Class A directors, or (b) any person or group, other than the Board
acting independently of any security holder and other than as set forth in (ii) and (iii), shall
possess the power, contractual or otherwise to elect a majority of the Board of Directors.

               5.3 For purposes of this Agreement, any transfer of the Optionee’s employment from the Company
to any subsidiary, related entity, or affiliate of the Company, with or without the Optionee’s
consent, shall not constitute termination of the Optionee’s employment with the Company. Upon any
such transfer of the Optionee’s employment, the definition of “Company” shall thereafter include
any subsidiary, related entity or affiliate as appropriate to the context in which such term is
used.

3

 

               5.4 If the Optionee’s employment is terminated by the Company for Cause, the Option shall
immediately terminate with respect to all shares covered by the Option whether or not previously
exercisable.

               5.5 If the Optionee’s employment with the Company terminates for any reason other than those
set forth in Sections 5.1 and 5.4 of this Agreement, the Option (i) shall immediately terminate
with respect to any shares which have not yet become exercisable and (ii) shall terminate and cease
to be exercisable with respect to any previously exercisable shares at 5:00 p.m. on the 90th day
following the date of such termination or, if such day is not a Business Day, on the first day
thereafter that is a Business Day.

          6. Manner of Exercise and Payment.

               6.1 Subject to the terms and conditions of this Agreement, the Award Agreement (if any) and
the Plan, the Option may be exercised by delivery of written notice to the Secretary of the Company
or his designee, at its principal executive office. Such notice shall state that the Optionee is
electing to exercise the Option, the number of shares of Common Stock in respect of which the
Option is being exercised and whether the Optionee wishes to sell any shares of Common Stock to the
Company in respect of payment of the minimum amount of withholding taxes. The notice shall be
signed by the person or persons exercising the Option and shall be an irrevocable election to
exercise such Option. If requested by the Committee, such person or persons shall (i) deliver this
Agreement to the Secretary of the Company who shall endorse thereon a notation of such exercise;
and (ii) provide satisfactory proof as to the right of such person or persons to exercise the
Option.

               6.2 The notice of exercise described in Section 6.1 hereof shall be accompanied by the full
purchase price for the Common Stock in respect of which the Option is being exercised, together
with payment of any applicable withholding taxes. The purchase price shall be payable in cash, by
delivery of shares of Common Stock previously purchased by the Optionee and held for more than six
months and one day prior to such delivery, or by a combination of such forms of payment. Any
applicable withholding taxes shall be payable in cash, by delivery of shares of Common Stock
previously purchased by Optionee and held for more than six months and one day prior to such
delivery, or by direction to the Company to withhold that number of shares of Common Stock
sufficient to satisfy the minimum required statutory withholding obligation, or by a combination of
such forms of payment. The determination of the minimum statutory withholding requirement will be
based on the applicable minimum statutory withholding rates required by the relevant tax
authorities (federal, state and local), including the employee’s share of payroll taxes that are
applicable to the supplemental taxable income arising from the exercise of options. Any exercise
shall be effective as of the date specified in the notice of exercise, provided that such
date is not

4

 

later than 10 days following the date of notice of exercise and not earlier than the
date that the Company actually receives the full purchase price for the Common Stock in respect of
which the Option is being exercised and the amount of any applicable withholding taxes to be paid.

               If the Optionee shall elect to pay all or a portion of the purchase price of the Option by
delivery of shares of Common Stock previously purchased by the Optionee, (i) the shares of Common
Stock being delivered by Optionee to the Company shall be valued at Fair Market Value on the date
of delivery; (ii) Optionee shall execute and deliver a certificate as stated in Section 9.7; and
(iii) Optionee shall deliver to the Company certificates evidencing the shares of Common Stock,
duly endorsed in blank, and, if the Company so requests, with signatures guaranteed to the Company.

               6.3 Upon receipt of notice of exercise as set forth in Section 6.1, full payment as specified
in Section 6.2 and any other documentation which may be reasonably required by the Committee, the
Company shall, subject to the Plan, any Award Agreement and this Agreement, take such action as may
be necessary to effect the transfer to the Optionee of the number of shares of Common Stock as to
which such exercise was effective.

               6.4 The Optionee shall not be deemed to be the holder of, or to have any of the rights of a
holder with respect to any Common Stock subject to the Option until (i) the Option shall have been
exercised pursuant to the terms of this Agreement and the Optionee shall have paid the full
purchase price for the number of shares of Common Stock in respect of which the Option was
exercised and any applicable withholding taxes; (ii) the Company shall have issued and delivered
one or more certificates evidencing the Common Stock to the Optionee; and (iii) the Optionee’s name
shall have been entered as a stockholder of record on the books of the Company, whereupon the
Optionee shall have full voting and other ownership rights with respect to such Common Stock.

          7. Representations and Warranties of the Company. The Company hereby represents and
warrants to Optionee as follows:

               7.1 This Agreement has been duly executed and delivered by the Company and is valid and
binding upon the Company.

               7.2 The Company has taken all necessary corporate action to authorize and reserve for issuance
sufficient authorized and unissued shares of Common Stock to effect the issuance of all of the
shares of Common Stock upon exercise of the Option.

5

 

               7.3 The shares of Common Stock to be issued upon due exercise, in whole or in part, of the
Option, when paid for and delivered as provided herein, will be duly authorized, validly issued,
fully paid and non-assessable.

               7.4 The Company is not subject to or obligated under any provision of its Certificate of
Incorporation or Bylaws (both as amended and restated on the date of this Agreement) or subject to
any order, decree, agreement, indenture, instrument, law, rule or regulation which would be
breached or violated by its executing and carrying out this Agreement.

          8. Representations and Warranties of Optionee. Optionee hereby represents and
warrants to the Company as follows:

               8.1 This Agreement has been duly executed and delivered by Optionee and is valid and binding
upon Optionee.

               8.2 If Optionee exercises the Option, Optionee will not acquire any shares of Common Stock
upon such exercise with a view to any public distribution thereof within the meaning of the
Securities Act of 1933, as amended.

          9. Repurchase Provisions.

               9.1 Except as otherwise provided in paragraph (b) of Section 10 of the Plan, entitled “Stock
Adjustments; Public Offering,” and subject to any restrictions that may be placed from time to time
on transactions of Common Stock as provided in Section 9(g) of the Plan, at any time commencing
with the date that is six months and one day after exercise of an Option, except as provided in
Section 6.2 with respect to withholding of shares at exercise sufficient to satisfy the minimum
required withholding obligation, the Optionee shall have the right to require the Company to
purchase Common Stock that the Optionee acquired through exercise of an Option. The purchase price
of such stock shall be the Fair Market Value on the date the Company receives written notice from
the Optionee of the Optionee’s intent to sell such Common Stock to the Company (the “Section 9.1
Notice”). Except as provided in Section 9.5 hereof, the Section 9.1 Notice shall be irrevocable.
The Optionee shall set forth in such notice the proposed date of closing of the purchase by the
Company of the Common Stock (the “Proposed Closing Date”), which date shall be no earlier than
eight (8) Business Days following the date of receipt by the Company of the notice, and not later
than thirty (30) days following receipt of such notice. The Optionee may give such notice prior to
the date that is six months and one day following the exercise of the Option. Except as provided
in Section 9.2 of this Agreement, the Company shall pay the purchase price in cash by check or wire
transfer to an account designated by the Optionee five (5) Business Days prior to Closing against
delivery by the Optionee of certificates evidencing the Common Stock, duly endorsed in blank, with
signatures guaranteed.

6

 

               9.2 For Options granted by the Company after December 31, 2001, where the Company has received
a Section 9.1 Notice from the Optionee, the Company may elect to defer the Proposed Closing Date by
delivering written notice of such deferral to the Optionee. Such written notice shall be delivered
on or before the Proposed Closing Date and shall set forth the new closing date selected by the
Company (the “Final Closing Date”), which shall be (i) no later than one year following the
Proposed Closing Date for Options granted before January 1, 2005 and (ii) no later than two years
following the Proposed Closing Date for Options granted after December 31, 2004. The Company shall
have the right, but not the obligation, to close the transaction prior to the Final Closing Date by
delivering notice to the Optionee that it is exercising such right, and proposing a date of closing
of the purchase, which date shall be no earlier than eight (8) Business Days and no later than
thirty (30) days following the date the Company delivers notice. On the Final Closing Date, or such earlier closing date as to which the
Company has given due notice, the Company shall pay the purchase price and any unpaid interest
pursuant to Section 9.3 in cash by check or wire transfer to an account designated by the Optionee
five (5) Business Days prior to the closing against delivery of certificates evidencing the Common
Stock, duly endorsed in blank, with signatures guaranteed.

               9.3 Notwithstanding the Company’s election to defer the closing date in accordance with
Section 9.2, the purchase price for the stock shall remain the Fair Market Value on the date the
Company received the Section 9.1 Notice. In full consideration of such deferral, the Optionee
shall be entitled to receive from the Company and the Company shall be obligated to pay to the
Optionee interest on the unpaid purchase price from the date the Company received the Section 9.1
Notice to the actual date of closing. Such interest shall be payable monthly in arrears. The rate
of such interest shall be the Prime Rate as published in The Wall Street Journal in effect on the
date the Company delivers its notice of deferral to the Optionee.

               9.4 Until the Optionee receives payment of the purchase price for the shares of Common Stock
that are the subject of the Section 9.1 Notice, the Optionee shall continue to have full rights as
a shareholder of the Company with respect to such shares.

               9.5 Within thirty (30) days following receipt of a notice from the Company electing to defer
the closing date in accordance with Section 9.2, the Optionee may rescind the Section 9.1 Notice
previously given by the Optionee by giving written notice of such rescission to the Company. Upon
the Optionee’s giving of such notice of rescission, the Section 9.1 Notice shall be deemed null and
void, ab initio.

               9.6 Except as otherwise provided in paragraph (b) of Section 10 of the Plan, entitled “Stock
Adjustments; Public Offering,” upon expiration of the twelve-month period immediately following the
date Optionee shall cease to be an

7

 

employee of the Company, the Company may thereafter require the Optionee to sell all shares of Common Stock that the Optionee purchased through exercise of an
Option or otherwise to the Company. The sale price of such Common Stock shall be the Fair Market
Value on the date the Company delivers notice to the Optionee that it is exercising the right to
require the Optionee to sell such shares to the Company. The Company shall set forth in such
notice the proposed date of closing of the purchase by the Company of the Common Stock, which date
shall be no earlier than eight (8) Business Days following the date the Company delivers notice and
no later than thirty (30) days following delivery of such notice. The Company shall pay the
purchase price in cash by check or wire transfer to an account designated by the Optionee five (5)
Business Days prior to closing against delivery of certificates evidencing the Common Stock, duly
endorsed in blank, with signatures guaranteed.

               9.7 At the closings relating to the purchase and sale of Common Stock specified in the second
paragraph of Section 6.2, Sections 9.1, 9.2 and 9.6, Optionee shall deliver a certificate to the
Company certifying as follows:

               (a) The shares of Common Stock being delivered to the Company are free and clear of
all liens and encumbrances other than those created by this Agreement; and

               (b) The Optionee is not subject to or obligated under any order, decree, agreement,
law, rule or regulation which would be breached or violated by the sale of the shares of
Common Stock to the Company.

               9.8 Notwithstanding anything to the contrary contained in this Agreement, the Optionee shall
have no right to require the Company (or any of its subsidiaries) to purchase shares of Common
Stock that the Optionee acquired through exercise of an Option granted on or after the date of this
Agreement if, after giving effect to the Optionee’s Section 9.1 Notice with respect to such shares
either on the date of such notice, on the Proposed Closing Date set forth in such notice or on the
Final Closing Date, (i) a Default or Event of Default (each defined in the Prudential Agreement)
shall have occurred and be continuing under the Prudential Agreement or (ii) a similar default or
event of default shall have occurred and be continuing under any other borrowing agreement of the
Company. This Section 9.8 shall be binding on any assignee or transferee of the Optionee. The
Optionee and the Company agree not to amend the provisions of this Section 9.8 without the prior
written consent of the Required Holders (as defined in the Prudential Agreement).

          10. Rescission of Grant or Exercise by the Company

               10.1 If, within one (1) year following the date of Optionee’s Retirement, Optionee Competes
with the Company, the Company may elect to rescind

8

 

any grant of options which vested solely by reason of Optionee’s Retirement. Such rescission shall become effective when written notice of the
Company’s election to rescind is sent to the Optionee. Any grant as to which the Company has sent
a notice of rescission shall be null and void. For purposes of this Agreement, “Competes” shall
mean that the Optionee, for himself or for any third party, directly or indirectly: (i) diverts or
attempts to divert from the Company any business of any kind in which the Company is engaged,
including without limitation, the solicitation or interference with any of the Company’s suppliers
or customers that have used or provided, as the case may be, products or services of the Company
within the twenty-four (24) month period prior to the date the Optionee solicits or interferes with
such supplier or customer; (ii) employs or solicits for employment, any person employed by the
Company during the period of such person’s employment and for a period of one (1) year thereafter;
(iii) engages in any business activity that is competitive with the activities of the Company prior
to the Optionee’s Retirement; or (iv) directly or indirectly invests in any entity whose business
activity is competitive with the activities engaged in by the Company; except that in each case the
foregoing provisions will not be deemed breached merely because the Optionee owns not more than 1%
of the outstanding common stock of any competitor, if, at the time of its acquisition by the
Optionee, such stock is listed on a national securities exchange, is reported on NASDAQ, or is
regularly traded in the over-the-counter market by a member of a national securities exchange. For
purposes of this Agreement, “Competes” shall include, by way of example and not by way of
limitation, the disclosure by the Optionee to any third party, whether or not a competitor of the
Company, of any trade secret or other confidential or proprietary information of the Company.

               10.2 If, following his or her Retirement, the Optionee exercises any options as to which the
Company would have had, but for such exercise, a right of rescission pursuant to Section 10.1, the
Company may elect to rescind any such exercise by (i) providing written notice of such rescission
to the Optionee, (ii) returning to the Optionee the purchase price received by the Company from the
Optionee in respect of such exercise, and (iii) canceling on the Company’s share register the
shares issued in respect of such rescinded exercise. If the Optionee has sold the Common Stock
issued in respect of such rescinded exercise, the Optionee shall pay to the Company within five (5)
days of receiving such written notice an amount equal to the purchase price received by the
Optionee for such Common Stock.

          11. Nontransferability. The Optionee shall not be permitted to sell, assign,
transfer, pledge or otherwise encumber all or any portion of an unexercised Option. During the
life of the Optionee, the Option shall be exercisable only by the Optionee or the Optionee’s
guardian or legal representative.

          12. No Right to Continued Employment. Nothing in this Agreement, any Award Agreement
or the Plan shall be interpreted or construed to confer upon the

9

 

Optionee any right with respect to continuation of employment by the Company, nor shall this Agreement, any Award Agreement or the
Plan interfere in any way with the right of the Company to remove the Optionee as an officer or
employee of the Company.

          13. Adjustments. If any of the corporate capital transactions described in Section 10
of the Plan, entitled “Stock Adjustments; Public Offering,” occurs, the Committee shall make
appropriate adjustments to the number and kind of securities subject to the Option and any
previously granted option and the purchase price for such securities as the Committee shall deem
appropriate in the circumstances. The determination by the Committee as to the terms of any
adjustment shall be conclusive and binding.

          14. Withholding of Taxes. The Company shall have the right to deduct from cash
payments to Optionee hereunder any federal, state and local income taxes and other amounts as may
be required by law to be withheld with respect to such payment.

          15. Optionee Bound by the Plan. The Optionee hereby acknowledges receipt of a copy of
the Plan, as amended, and agrees to be bound by all terms and provisions thereof. The Optionee
acknowledges he or she has been afforded access to such financial and other information relating to
the Company, its business, operations, and prospects as the Participant shall have requested.

          16. Modification of Agreement. This Agreement may be modified, amended, suspended, or
terminated, and any terms or conditions may be waived, but only by a written instrument executed by
each of the parties hereto.

          17. Severability. Should any provision of this Agreement be held by a court of
competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of
this Agreement shall not be affected by such holding and shall continue in full force in accordance
with their terms.

          18. Governing Law. The validity, interpretation, construction, and performance of
this Agreement shall be governed by the laws of the State of New York without regard to principles
of conflicts of law.

          19. Successors in Interest. This Agreement shall inure to the benefit of and be
binding upon each successor to the Company. This Agreement shall inure to the benefit of the
Optionee’s legal representatives. All obligations imposed upon the Optionee and all rights granted
to the Company under this Agreement shall be final, binding, and conclusive upon the Optionee’s
heirs, executors, administrators, and successors.

10

 

          20. Resolution of Disputes. Any dispute or disagreement which may arise under, or as
a result of, or in any way relate to, the interpretation, construction, or application of this
Agreement shall be determined by the Committee. Any determination made by the Committee hereunder
shall be final, binding, and conclusive on the Optionee and the Company for all purposes.

          21. Confidentiality. The Optionee shall keep in strict confidence and shall not
disclose any of the terms and conditions of this Agreement to any other party, except to Optionee’s
legal or financial advisors or family members who have a need to know the terms and conditions of
the Agreement or except to the extent required by law.

          22. Legend.

          Each certificate representing Shares and any subsequent certificate deriving from such
certificate shall bear the following legend:

          “The shares evidenced by this Certificate have been issued
pursuant to the Company’s 1996 Incentive Plan and are subject to
restrictions as set forth in such plan, the Stock Option Agreement
dated as of [the Grant Date] between the Company and the
registered holder of such shares, and the Company’s Restated
Certificate of Incorporation and Bylaws.

          The shares evidenced by this Certificate have not been
registered under the Securities Act of 1933 with the Securities
and Exchange Commission or under any state securities law with any
state securities commission and may not be sold, transferred or
assigned in the absence of an effective registration statement or
an exemption from registration.”

          23. Notices. Any notice, request, consent, waiver or other communication required or
permitted to be delivered hereunder shall be effectively delivered only if it is in writing and
personally delivered or sent by Express Mail, Federal Express or similar overnight delivery
service, addressed as set forth below, or sent by facsimile to the number set forth below with
confirmation received and followed by a writing personally delivered or sent by Express Mail,
Federal Express or similar overnight delivery service.

          If
to Optionee:

          The address specified in Schedule I.

11

 

	 	 	 
	 

	 	If to ISO:
	 
	 	 
	 

	 	INSURANCE SERVICES OFFICE, INC.
	 

	 	545 Washington Boulevard
	 

	 	Jersey City, New Jersey 07310-1686
	 

	 	Attention: Secretary
	 

	 	Facsimile: (201) 748-1429

or such other person or address or to such other facsimile number as the addressee may have
specified in a notice duly given to the sender as provided herein. Such notice or communication
shall be deemed to have been delivered as of the date of acknowledged receipt.

[Remainder of page intentionally left blank]

12

 

	 	 	 	 	 
	 	INSURANCE SERVICES OFFICE, INC.

 	 
	 	By:  	 	 
	 	 	Mark V. Anquillare 	 
	 	 	Senior Vice President
and Chief Financial Officer	 
	 
	 	OPTIONEE:
	 
	 
	 	
I hereby (i) acknowledge that the Insurance Services
Office, Inc. 1996 Incentive Plan was amended on September
18, 2002 to place restrictions on transactions of ISO
common stock when similar restrictions are placed on
transactions of common stock in the ISO 401(k) and
Employee Stock Ownership Plan; (ii) agree, acknowledge and
consent that any and all Awards granted to me under the
Plan (and any and all securities received in respect of
such Awards), whether past, present or future, shall be
bound by the terms and conditions as set forth in the
Plan, as so amended, including, but not limited to, the
restrictions described above; and (iii) acknowledge
receipt of the Plan, as so amended.

 	 
	 	 	 
	 	«Full_Name» 	 

13exv10w1

Exhibit 10.1

Execution Copy

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of September 18, 2009, is
made by and between QuikByte Software, Inc., a Colorado corporation (the “Company”), and
each of the Investors listed on Exhibit A hereto (each, an “Investor” and
collectively, the “Investors”).

RECITALS

     WHEREAS, the Company is a party to that certain Merger Agreement, dated as of July 14, 2009,
as amended (the “Merger Agreement”), by and among the Company, Sorrento Therapeutics, Inc.,
a Delaware corporation (“Sorrento”), Sorrento Merger Corp., Inc., a Delaware corporation
and wholly-owned subsidiary of the Company (“Merger Sub”), Stephen Zaniboni, as
Stockholders’ Agent thereunder, and Glenn Halpryn, as Parent Representative thereunder, pursuant to
which the Company will acquire Sorrento via a merger whereby Merger Sub will be merged with and
into Sorrento (the “Merger”) with Sorrento continuing as the surviving entity in the Merger
and as a wholly-owned subsidiary of the Company; and

     WHEREAS, the closing of the Merger (the “Merger Closing”) is subject to, among other
conditions, the Company’s receipt of an aggregate investment of $2.0 million in exchange for shares
of common stock, $0.0001 par value, of the Company (the “Common Stock”); and

     WHEREAS, the Investors desire to acquire from the Company, and the Company desires to issue
and sell to the Investors, in the manner and on the terms and conditions hereinafter set forth,
44,634,374 shares of Common Stock (collectively, the “Shares”); and

     WHEREAS, in connection with the Investors’ purchase of the Shares, the Company and the
Investors desire to establish certain rights and obligations between themselves.

     NOW, THEREFORE, in consideration of these premises, the mutual covenants and agreements herein
contained and for other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the Company and each of the Investors hereby agree as follows:

SECTION I  DEFINITIONS.

     The following terms when used in this Agreement have the following respective meanings:

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

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

     “Affiliate” means with respect to any Person, any (i) officer, director, partner or
holder of more than 10% of the outstanding shares or equity interests of such Person, (ii) any
relative of such Person, or (iii) any other Person which directly or indirectly controls, is
controlled by, or is under common control with such Person. A Person will be deemed to control
another Person if such Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of the “Controlled” Person, whether through
ownership of voting securities, by contract, or otherwise.

     “Agreement” has the meaning set forth in the recitals hereto.

     “Articles of Incorporation” means the Articles of Incorporation of the Company, as
amended and restated and as on file with the Secretary of State of the State of Colorado on the
date of this Agreement.

 

 

     “Business Day” means a day other than Saturday, Sunday or statutory holiday in the
State of Florida and in the event that any action to be taken hereunder falls on a day which is not
a Business Day, then such action shall be taken on the next succeeding Business Day.

     “Bylaws” means the Amended and Restated Bylaws of the Company, as filed with the SEC
on the date of this Agreement.

     “Closing Date” has the meaning set forth in Section 3.1 hereof.

     “Closing” has the meaning set forth in Section 3.1 hereof.

     “Common Stock” has the meaning set forth in the recitals hereto.

     “Company” has the meaning set forth in the recitals hereto.

     “Computershare” has the meaning set forth in Section 3.2(a) hereof.

     “GAAP” means generally accepted accounting principles in the United States.

     “Governmental Authority” means the United States, any state or municipality, the
government of any foreign country, any subdivision of any of the foregoing, or any authority,
department, commission, board, bureau, agency, court, or instrumentality of any of the foregoing.

     “Instruction Letter” has the meaning set forth in Section 3.2(a) hereof.

     “Investor(s)” has the meaning set forth in the recitals hereto.

     “Investor Lock-Up Agreement” means the lock-up letter agreement substantially in the
form of Exhibit B hereto.

     “Knowledge” means the actual knowledge of the officers of the Company after due and
diligence inquiry of the employees or agents of the Company reasonably believed to have knowledge
of such matters.

     “Lien” means any mortgage, lien, pledge, security interest, easement, conditional sale
or other title retention agreement, or other encumbrance of any kind.

     “Material Adverse Effect” means a change or effect in the condition (financial or
otherwise), properties, assets, liabilities, rights, operations or business of the Company which
change or effect, individually or in the aggregate, could reasonably be expected to be materially
adverse to such condition, properties, assets, liabilities, rights, operations or business.

     “Merger” has the meaning set forth in the recitals hereto.

     “Merger Agreement” has the meaning set forth in the recitals hereto.

     “Merger Closing” has the meaning set forth in the recitals hereto.

     “Merger Sub” has the meaning set forth in the recitals hereto.

     “Person” means an individual, corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, or Governmental Authority.

2

 

     “Purchase Price” means $2.0 million.

     “SEC” means the United States Securities and Exchange Commission.

     “SEC
Filings” has the meaning set forth in Section 4.2 (f) hereof.

     “Shareholders” mean the record holders of shares of capital stock of the Company.

     “Shares” has the meaning set forth in the recitals hereto.

     “Sorrento” has the meaning set forth in the recitals hereto.

SECTION II  PURCHASE AND SALE OF COMMON STOCK.

     2.1
Issuance and Purchase of Common Stock. At the Closing, based upon the representations, warranties, covenants and agreements of the
parties set forth in this Agreement, the Company shall issue and sell to each Investor, and each
Investor shall purchase from the Company, that number of Shares set forth opposite such Investor’s
name on Exhibit A attached hereto. At the Closing, the Company shall deliver to each
Investor a copy of the Instruction Letter against payment of that portion of the Purchase Price set
forth opposite such Investor’s name on Exhibit A.

     2.2 Payment for Common Stock. At the Closing, for all of the Shares, the Investors shall pay to the Company, in the
aggregate, the Purchase Price. Each Investor shall pay that portion of the Purchase Price set
forth opposite such Investor’s name on Exhibit A. The Investors shall pay the Purchase
Price by wire transfers of immediately available funds to an account designated in writing by the
Company.

SECTION III  THE CLOSING.

     3.1 Closing . The closing of the issuance and sale of the Shares pursuant to Section 2.1 hereof
and certain of the other transactions contemplated hereby (the “Closing”) shall take place
contemporaneously with the execution of this Agreement (the “Closing Date”) at the offices
of Greenberg Traurig P.A., in Miami, Florida, or such other place as agreed by the parties hereto.
The Closing shall take place immediately prior to the Merger Closing.

     3.2 Deliveries by the Company. At the Closing, the Company shall deliver or cause to be delivered to the Investors the
following items (in addition to any other items required to be delivered to the Investors pursuant
to any other provision of this Agreement):

          (a) a copy of an instruction letter to Computershare Trust Company, N.A.
(“Computershare”), the transfer agent for the Common Stock, duly executed by an officer of
the
Company directing Computershare to promptly issue certificates representing the Shares being
issued and sold by the Company to the Investors pursuant to
Section 2.1 hereof, duly
recorded on the books of the Company in the names of each of the Investors as set forth on
Exhibit A (bearing a legend that such securities have not been registered under the 1933
Act or any state securities laws) and shall deliver such letter to Computershare (the
“Instruction Letter”); and

          (b) a certificate of the Secretary of State of the State of Colorado as to the good standing
of the Company dated within five Business Days prior to the Closing Date.

3

 

     3.3 Deliveries by the Investors . At the Closing, each of the Investors shall deliver or cause to be delivered to the Company
(in addition to any other items required to be delivered to the Company pursuant to any other
provision of this Agreement):

          (a) payment by wire transfer of immediately available funds necessary to satisfy each
Investor’s obligations to the Company under Section 2.2 hereof and to result in payment to
the Company of the Purchase Price; and

          (b) a fully-executed Investor Lock-Up Agreement.

SECTION IV  REPRESENTATIONS AND WARRANTIES.

     4.1 Representations and Warranties of the Company. In order to induce each of the Investors to purchase the Common Stock that it is purchasing
hereunder, the Company represents and warrants to each of the Investors as of the Closing (unless
another time is expressly provided for herein) as follows:

          (a) Organization and Standing. The Company is duly incorporated and validly existing
under the laws of the State of Colorado, and has all requisite corporate power and authority to own
or lease its properties and assets and to conduct its business as it is presently being conducted.
As of immediately prior to the Closing, the Company did not own any equity interest, directly or
indirectly, in any other Person or business enterprise other than Merger Sub. The Company is
qualified to do business and is in good standing in each jurisdiction in which the failure to so
qualify could reasonably be expected to have a Material Adverse Effect upon its assets, properties,
financial condition, results of operations or business. As of immediately prior to the Closing,
the Company had no subsidiaries other than Merger Sub.

          (b) Capitalization. As of the Closing Date, the authorized capital stock of the
Company is 600,000,000 shares, consisting of (i) 500,000,000 shares of Common Stock, of which
11,073,946 shares are issued and outstanding as of immediately prior to the Closing, and (ii)
100,000,000 shares of preferred stock, par value $0.0001 per share, of which no shares are issued
and outstanding as of immediately prior to the Closing. The Company has no other class or series
of equity securities authorized, issued, reserved for issuance or outstanding. Except for the
Merger and agreements to be assumed by the Company in connection with the Merger, there are (x) no
outstanding options, offers, warrants, conversion rights, contracts or other rights to subscribe
for or to purchase from the Company, or agreements obligating the Company to issue, transfer, or
sell (whether formal or informal, written or oral, firm or contingent), shares of capital stock or
other securities of the Company (whether debt, equity, or a combination thereof) or obligating the
Company to grant, extend, or enter into any such agreement and (y) no agreements or other
understandings (whether formal or informal, written or oral, firm or
contingent) which require or may require the Company to repurchase any of its Common Stock.
There are no preemptive or similar rights with respect to the Company’s capital stock. There are
no anti-dilution or price adjustment provisions contained in any security issued by the Company (or
in any agreement providing rights to security holders). Other than as contemplated by the Merger
Agreement, the Company is not a party to, and, to the Knowledge of the Company, no Shareholder is a
party to, any voting agreements, voting trusts, proxies or any other agreements, instruments or
understandings with respect to the voting of any shares of the capital stock of the Company, or any
agreement with respect to the transferability, purchase or redemption of any shares of the capital
stock of the Company. The issue and sale of the Shares to the Investors does not obligate the
Company to issue any shares of capital stock or other securities to any Person (other than the
Investors) and will not result in a right of any holder of Company securities to adjust the
exercise, conversion, exchange or reset price under such securities. The outstanding Common Stock
is all duly and validly authorized and issued, fully paid and nonassessable.

4

 

Immediately following
the Merger Closing, the Shares will represent approximately 19.83% of the issued and outstanding
shares of the capital stock of the Company on a fully-diluted basis.

          (c) Capacity of the Company; Authorization; Execution of Agreements. The Company has
all requisite corporate power, authority and capacity to enter into this Agreement and to perform
the transactions and obligations to be performed by it hereunder. The execution and delivery of
this Agreement by the Company, and the performance by the Company of the transactions and
obligations contemplated hereby, including, without limitation, the issuance and delivery of the
Shares to the Investors hereunder, have been duly authorized by all requisite action on the part of
the Company. This Agreement has been duly executed and delivered by a duly authorized officer of
the Company and constitutes a valid and legally binding agreement of the Company, enforceable in
accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws of the United States (both state and federal),
affecting the enforcement of creditors’ rights or remedies in general from time to time in effect
and the exercise by courts of equity powers or their application of principles of public policy.

          (d) Status of Shares. The Shares being issued and purchased hereunder, all of which
are to be issued by the Company to the Investors and paid for by the Investors pursuant to the
terms of this Agreement, are and will be, when issued, (i) duly authorized, validly issued, fully
paid and nonassessable, (ii) issued in compliance with all applicable United States federal and
state securities laws, (iii) subject to restrictions under this Agreement, and applicable United
States federal and state securities laws, have the rights and preferences set forth in the Articles
of Incorporation, and (iv) free and clear of all Liens (except for any Liens imposed on such
Shares, directly or indirectly, by the Investors).

          (e) Conflicts; Defaults. The execution and delivery of this Agreement by the Company
and the performance by the Company of the transactions and obligations contemplated hereby and
thereby to be performed by it do not (i) violate, conflict with, or constitute a default under any
of the terms or provisions of, the Articles of Incorporation, the Bylaws, or any provisions of, or
result in the acceleration of any obligation under, any contract, note, debt instrument, security
agreement or other instrument to which the Company is a party or by which the Company, or any of
its assets, is bound; (ii) result in the creation or imposition of any Liens (except for any Liens
imposed, directly or indirectly, by the Investors) or claims upon the Company’s assets or upon any
of the shares of capital stock of the Company; (iii) constitute a violation of any law, statute,
judgment, decree, order, rule, or regulation of a Governmental Authority applicable to the Company;
or (iv) constitute an event which, after notice or lapse of time or both, would result in any of
the foregoing. The Company is not presently in violation of its Articles of Incorporation or
Bylaws.

          (f) SEC Filings. The SEC Filings, when filed, complied in all material respects with
the requirements of Section 13 or 15(d) of the 1934 Act, as applicable, did not, as of the dates
when filed,
contain an untrue statement of material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading. The SEC Filings are all
of the filings that the Company was required to file with the SEC during the periods covered
thereby and all such filings were made on a timely basis when due. The financial statements of the
Company included in the SEC Filings complied in all material respects with the rules and
regulations of the SEC with respect thereto as in effect at the time of filing. Such financial
statements have been prepared in accordance with GAAP applied on a consistent basis during the
periods covered by such financial statements, except as may be otherwise specified in such
financial statements or the notes thereto, and fairly present in all material respects the
financial position of the Company as of and for the dates thereof and for the periods indicated,
and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments. All material agreements
to which the Company is a party or to which the property or assets of the Company are subject and
which are required

5

 

to be disclosed pursuant to the 1934 Act are included as part of or specifically
identified in the SEC Filings.

          (g) Material Changes. Since the date of the latest audited financial statements
included within the SEC Filings, except as disclosed in the SEC Filings, (i) there has been no
event that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company
has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and
accrued expenses incurred in the ordinary course of the business of a shell corporation consistent
with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP as required to be disclosed in filings made with the SEC, (iii) the
Company has not altered its method of accounting or the identity of its auditors, (iv) the Company
has not declared or made any dividend or distribution of cash or other property to its shareholders
or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock
and (v) the Company has not issued any equity securities to any officer, director or Affiliate.

          (h) Absence of Litigation. There is no action, suit, claim, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization
or body pending or, to the Knowledge of the Company, threatened against the Company.

          (i) Brokers, Finders, and Agents. The Company is not, directly or indirectly,
obligated to anyone acting as broker, finder or in any other similar capacity in connection with
this Agreement or the transactions contemplated hereby. No Person has or, immediately following
the consummation of the transactions contemplated by this Agreement, will have, any right, interest
or valid claim against the Company or, as a result of any action or inaction by the Company, the
Investors, in either case for any commission, fee or other compensation as a finder or broker in
connection with the transactions contemplated by this Agreement, nor are there any brokers’ or
finders’ fees or any payments or promises of payment of similar nature, however characterized, that
have been paid or that are or may become payable in connection with the transactions contemplated
by this Agreement, as a result of any agreement or arrangement made by the Company.

          (j) Application of Takeover Protections. There is no control share acquisition,
business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Articles of Incorporation or Bylaws that is or could
become applicable to any of the Investors as a result of the Investors and the Company fulfilling
their obligations or exercising their rights under this Agreement, including without limitation, as
a result of the Company’s issuance of the Shares and the Investors’ ownership of the Shares.

          (k) Absence of Businesses. Neither the Company nor Merger Sub is engaged in any
business and neither the Company nor the Merger Sub has any liability or obligation of any kind or
nature
other than liabilities or obligations that are disclosed in an SEC Filing or that ordinarily
and customarily relate to the maintenance of a public company or the Merger.

          (l) Merger. To the Knowledge of the Company, immediately following the Closing, all
conditions precedent to the Merger Closing will have been satisfied.

          (m) Disclosure. All written disclosure materials provided to the Investors regarding
the Company, its business and the transactions contemplated hereby furnished by or on behalf of the
Company are true and correct in all material respects and as otherwise contemplated in this
Agreement and do not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein not misleading. No event or
circumstance has occurred or information exists with respect to the Company or its business,
properties, operations or financial

6

 

condition, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company, but which has not been so publicly
announced or disclosed.

     4.2 Representations and Warranties of the Investors. Each of the Investors hereby severally, but not jointly, represents and warrants to the
Company as of the Closing as follows:

          (a) Investment Intent. The Shares being purchased by the Investor hereunder are being
purchased for its own account, not as a nominee or agent, and not with the view to, or for resale
in connection with, any distribution or public offering thereof within the meaning of the 1933 Act.
The Investor understands that such Shares have not been registered under the 1933 Act by reason of
their issuance in a transaction exempt from the registration and prospectus delivery requirements
of the 1933 Act pursuant to Section 4(2) thereof and/or the provisions of Rule 506 of Regulation D
promulgated thereunder, and under the securities laws of applicable states and agrees to deliver to
the Company, if requested by the Company, an investment letter in customary form. The Investor
further understands that the certificates representing such Shares bear a legend substantially
similar to the following and agrees that it will hold such Shares subject thereto:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED DIRECTLY OR INDIRECTLY
FROM THE ISSUER WITHOUT BEING REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR ANY OTHER APPLICABLE SECURITIES LAWS, AND ARE RESTRICTED
SECURITIES AS THAT TERM IS DEFINED UNDER RULE 144 PROMULGATED UNDER THE ACT. THESE
SHARES MAY NOT BE SOLD, PLEDGED, TRANSFERRED, DISTRIBUTED OR OTHERWISE DISPOSED OF
IN ANY MANNER (“TRANSFER”) UNLESS THEY ARE REGISTERED UNDER THE ACT AND ANY
APPLICABLE SECURITIES LAWS, OR UNLESS THE REQUEST FOR TRANSFER IS ACCOMPANIED BY A
FAVORABLE OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE ISSUER, STATING THAT
THE TRANSFER WILL NOT RESULT IN A VIOLATION OF THE ACT OR ANY APPLICABLE SECURITIES
LAWS.

          (b) Capacity of the Investor; Execution of Agreement. Such Investor has all requisite
power, authority and capacity to enter into this Agreement and to perform the transactions and
obligations to be performed by it hereunder. The execution and delivery of this Agreement, and the
performance by the Investor of the transactions and obligations contemplated hereby, have been duly
authorized by all requisite corporate or individual, as the case may be, action of the Investor.
This Agreement has been duly executed and delivered by the Investor and constitutes a valid and
legally
binding agreement of the Investor, enforceable in accordance with its terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws, both state and federal, affecting the enforcement of creditors’ rights or remedies in
general from time to time in effect and the exercise by courts of equity powers or their
application of principles of public policy.

          (c) Accredited Investor/Qualified Institutional Buyer. Each Investor is an
“accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the 1933
Act or a “qualified institutional buyer” within the meaning of Rule 144A(a)(1) promulgated
under the 1933 Act.

          (d) Suitability and Sophistication. The Investor has (i) such knowledge and
experience in financial and business matters that it is capable of independently evaluating the
risks and merits of purchasing the Shares it is purchasing; (ii) independently evaluated the risks
and merits of purchasing such Shares and has independently determined that the Shares are a
suitable investment for it; and (iii) sufficient financial resources to bear the loss of its entire
investment in such Shares. The

7

 

Investor has had an opportunity to review: the Company’s Annual
Report on Form 10-K for the year ended December 31, 2008, the Company’s quarterly reports on Form
10-Q for the periods ended March 31, 2009 and June 30, 2009, the Company’s current report on Form
8-K filed with the SEC on July 14, 2009 and other filings made by the Company under Section 13(a)
of the 1934 Act since July 7, 2008 (the “SEC Filings”).

          (e) Brokers, Finders, and Agents. The Investor is not, directly or indirectly,
obligated to anyone acting as broker, finder, or in any other similar capacity in connection with
this Agreement or the transactions contemplated hereby. No Person has or, immediately following
the consummation of the transactions contemplated by this Agreement, will have, any right, interest
or valid claim against the Company or the Investor for any commission, fee or other compensation as
a finder or broker in connection with the transactions contemplated by this Agreement, nor are
there any brokers’ or finders’ fees or any payments or promises of payment of similar nature,
however characterized, that have been paid or that are or may become payable in connection with the
transactions contemplated by this Agreement, as a result of any agreement or arrangement made by
the Investor.

          (f) Nationality; Residence. Each Investor is a citizen of the United States of
America and a resident of, or organized within, the state set forth underneath such Investor’s name
on Exhibit A attached to this Agreement.

          (g) General Solicitation. The Investor is not purchasing the Shares as a result of
any advertisement, article, notice or other communication regarding the Shares published in any
newspaper, magazine or similar media or broadcast over television or radio or presented at any
seminar or any other general solicitation or general advertisement.

     4.3 Rule 144. Each Investor acknowledges that the Shares it will be purchasing must be held indefinitely
unless subsequently registered under the 1933 Act or unless an exemption from such registration is
available. Each Investor acknowledges that the Company is neither obligated, nor has the present
intention, to register the Shares for resale pursuant to a registration statement filed with the
SEC. Each of the Investors is aware of the provisions of Rule 144 promulgated under the 1933 Act
which permit limited resale of shares purchased in a private placement subject to the satisfaction
of certain conditions, including, among other things, the provisions of Rule 144(i), which provide
additional conditions that must be satisfied by (a) an issuer with (i) no or nominal operations;
and (ii) either (A) no or nominal assets; (B) assets consisting solely of cash and cash
equivalents; or (C) assets consisting of any amount of cash and cash equivalents and nominal other
assets; or (b) an issuer that has been at any time previously
an issuer described in (a), and each Investor is further aware that the provisions of Rule
144(i) are applicable to the Company.

SECTION V  MISCELLANEOUS.

     5.1 Waivers and Amendments. This Agreement may be amended or modified in whole or in part only by a writing which makes
reference to this Agreement executed by the Investors and the Company. The obligations of any
party hereunder may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the party claimed to have given
the waiver; provided, however, that any waiver by any party of any violation of, breach of, or
default under any provision of this Agreement or any other agreement provided for herein shall not
be construed as, or constitute, a continuing waiver of such provision, or waiver of any other
violation of, breach of or default under any other provision of this Agreement or any other
agreement provided for herein.

8

 

     5.2 Entire Agreement. This Agreement (together with the Exhibits hereto) and the other agreements and instruments
expressly provided for herein, together set forth the entire understanding of the parties hereto
and supersede in their entirety all prior contracts, agreements, arrangements, communications,
discussions, representations and warranties, whether oral or written, among the parties with
respect to the subject matter hereof.

     5.3 Governing Law. This Agreement shall in all respects be governed by and construed in accordance with the
internal substantive laws of the State of Florida without giving effect to the principles of
conflicts of law thereof. Each of the parties hereto irrevocably agrees that any legal action or
proceeding arising out of or relating to this Agreement brought by any other party or its
successors or assigns shall be brought and determined in any Florida state or federal court sitting
in Miami-Dade County, Florida (or, if such court lacks subject matter jurisdiction, in any
appropriate Florida state or federal court), and each of the parties hereby irrevocably submits to
the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property,
generally and unconditionally, with regard to any such action or proceeding arising out of or
relating to this Agreement and the transactions contemplated hereby.

     5.4 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. EACH OF THE PARTIES HERETO ALSO
WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND THAT MIGHT, BUT FOR THIS WAIVER, BE REQUIRED
OF THE OTHER PARTY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL
DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THIS AGREEMENT, INCLUDING, BUT NOT
LIMITED TO, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO ENTER INTO THIS AGREEMENT. EACH OF THE PARTIES HERETO HEREBY FURTHER ACKNOWLEDGES AND AGREES
THAT EACH HAS REVIEWED OR HAD THE OPPORTUNITY TO REVIEW THIS WAIVER WITH ITS RESPECTIVE LEGAL
COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     5.5 Public Announcements. Except as provided below in this Section 5.5, none of the parties hereto shall publicly
disclose the execution, delivery or contents of this Agreement other than (i) with the prior
written consent of the other parties hereto, or (ii) as required by any applicable law (including
for the purpose of holding shareholder or stockholder meetings and proxies therefor), the
applicable rules of any stock exchange, or any Governmental Authority. Without limiting the
foregoing, the parties understand that this Agreement will be publicly filed by the Company with
the SEC and that the Company may issue press releases and/or public statements with respect to this
Agreement and the Merger. Nothing contained herein shall prohibit the Company from making any such
disclosure if required by any applicable law or any Governmental Authority.

     5.6 Notices. Any notice, request or other communication required or permitted hereunder shall be in
writing and be deemed to have been duly given (a) when personally delivered or sent by facsimile
transmission (the receipt of which is confirmed in writing), (b) one Business Day after being sent
by a nationally recognized overnight courier service or (c) five Business Days after being sent by
registered or certified mail, return receipt requested, postage prepaid, to the parties at their
respective addresses set forth below.

9

 

	 	 	 	 	 
	 

	 	If to the Company:
	 	QuikByte Software, Inc.
	 

	 	 	 	4400 Biscayne Boulevard
	 

	 	 	 	Suite 950
	 

	 	 	 	Miami, Florida 33137
	 

	 	 	 	Attn: Glenn Halpryn, CEO
	 

	 	 	 	Facsimile: (305) 573-4115
	 
	 	 	 	 
	 

	 	with a courtesy copy (not
	 	Robert L. Grossman, Esq.
	 

	 	constituting notice) to:
	 	Greenberg Traurig, P.A.
	 

	 	 	 	1221 Brickell Avenue
	 

	 	 	 	Miami, Florida 33131
	 

	 	 	 	Facsimile: (305) 961-5756
	 
	 	 	 	 
	 

	 	if to Investors:
	 	At the addresses set forth across from
each Investor’s name on Exhibit A
hereto.
	 
	 	 	 	 
	 

	 	 	 	Any party by written notice to the
other may change the address or the
persons to whom notices or copies
thereof shall be directed.

     5.7 Counterparts; Facsimile Signatures. This Agreement may be executed in any number of counterparts, each of which shall be deemed
to be an original, and all of which together will constitute one and the same instrument. Any
facsimile, scanned or e-mailed copy of this Agreement will be deemed an original for all purposes
and any
facsimile, scanned or e-mailed copy of an original written signature shall be deemed to have
the same effect as an original written signature.

     5.8 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto
and their respective successors and permitted assigns, except that the Company may not assign or
transfer its rights hereunder without the prior written consent of the Investors and no Investor
may assign or transfer its rights hereunder without the prior written consent of the Company.

     5.9 Third Parties. Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer
upon or give any Person other than the parties hereto and their successors and assigns any rights
or remedies under or by reason of this Agreement.

     5.10 Exhibits. The Exhibits attached to this Agreement are incorporated herein and shall be part of this
Agreement for all purposes.

     5.11 Expenses. Each party shall bear and pay all of the legal, accounting and other costs and expenses
incurred by it in connection with the transactions contemplated by this Agreement.

     5.12 Headings. The headings in this Agreement are solely for convenience of reference and shall not be
given any effect in the construction or interpretation of this Agreement.

     5.13 Interpretation. Whenever the context may require, any pronoun used herein shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall
include the plural and vice versa.

[Signature Page Follows]

10

 

SIGNATURE PAGES TO

STOCK PURCHASE AGREEMENT

BY AND AMONG

QUIKBYTE SOFTWARE, INC. AND THE INVESTORS

     IN WITNESS WHEREOF, the Company and each of the Investors have executed this Agreement as of
the date first above written.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	QuikByte Software, Inc.,

a Colorado corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	INVESTOR (if an individual):	 	INVESTOR (if an entity):	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	(Signature)	 	(Legal Name of Entity)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

(Print Name)

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

11

 

EXHIBIT A

SCHEDULE OF INVESTORS

	 	 	 	 	 	 	 	 	 
	Name, Address and	 	Number of	 	 
	State of Residence or Organization	 	Shares Purchased	 	Purchase Price
	 
	Total:
	 	 	44,634,374	 	 	$	2,000,000.00	 

A-1 

 

EXHIBIT B

INVESTOR LOCK-UP AGREEMENT

QuikByte Software, Inc.

4400 Biscayne Blvd., Suite 950

Miami, FL 33137

Attn: Glenn L. Halpryn, CEO

Ladies and Gentlemen:

     The undersigned, a holder of shares of Sorrento Therapeutics, Inc., a Delaware corporation
(“Sorrento”), and/or QuikByte Software, Inc., a Colorado corporation (together with its
successors, “Parent”), will hold shares of common stock, $0.0001 par value, of Parent
(“Parent Shares”) after the transactions contemplated by that certain Merger Agreement,
dated as of July 14, 2009 by and among Sorrento, Parent, Sorrento Merger Corp., Inc., a Delaware
corporation, Stephen Zaniboni, an individual as the Stockholders’ Agent thereunder, and Glenn
Halpryn, an individual as Parent Representative thereunder, as amended (the “Merger
Agreement”). For good and valuable consideration, the undersigned hereby irrevocably agrees
that following the closing of the merger contemplated under the Merger Agreement (the
“Merger”), the undersigned will not, directly or indirectly, (1) offer for sale, sell,
pledge or otherwise dispose of (or enter into any transaction or device that is designed to, or
could be expected to, result in the disposition by any person at any time in the future of) any
Parent Share, including, Parent Shares that may be deemed to be beneficially owned by the
undersigned in accordance with the rules and regulations of the United States Securities and
Exchange Commission and Parent Shares that may be issued upon exercise of any options or warrants,
or securities convertible into or exercisable or exchangeable for Parent Shares, (2) enter into any
swap or other derivatives transaction that transfers to another, in whole or in part, any of the
economic benefits or risks of ownership of Parent Shares, whether any such transaction described in
clause (1) or (2) above is to be settled by delivery of Parent Shares or other securities, in cash
or otherwise, (3) make any demand for or exercise any right or cause to be filed a registration
statement, including any amendments thereto, with respect to the registration of any Parent Shares
or securities convertible into or exercisable or exchangeable for Parent Shares or any other
securities of Parent, or (4) publicly disclose the intention to do any of the foregoing, in each
case, for a period commencing on the date of the closing of the Merger and ending on the
twenty-four (24) month anniversary of such date. Notwithstanding the foregoing, this Lock-Up
Letter Agreement shall automatically terminate and the undersigned holder will be automatically
released from any transfer restrictions hereunder on the last business date that is immediately
prior to the consummation of a Change of Control. For purposes hereof, a “Change of Control” shall
mean any transaction or series of transactions involving (i) any merger, consolidation, share
exchange, business combination, issuance of securities, direct or indirect acquisition of
securities, recapitalization, tender offer, exchange offer or other similar transaction involving
Parent, as a result of which the shareholders of Parent immediately prior to such transaction hold,
in the aggregate, less than 50% of the voting power of Parent or the surviving entity immediately
after such transaction on a fully-diluted basis; (ii) any direct or indirect sale, lease, exchange,
transfer, license, acquisition or disposition of all or substantially all of the business or assets
(including intangible assets) of Parent; or (iii) any liquidation or dissolution of Parent.

     In furtherance of the foregoing, Parent and its transfer agent on its behalf are hereby
authorized to decline to make any transfer of securities if such transfer would constitute a
violation or breach of this Lock-Up Letter Agreement.

B-1

 

     The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Letter Agreement and that, upon request, the undersigned will
execute any additional documents necessary in connection with the enforcement hereof. Any
obligations of the undersigned shall be binding upon the heirs, personal representatives,
successors and assigns of the undersigned.

	 	 	 	 	 	 	 
	 	 	Yours truly,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Dated:                                         

Accepted and Acknowledged:

QuikByte Software, Inc.

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

B-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]