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Exhibit 10.3    
    

 
 

Kintera, Inc.
  2003 Equity Incentive Plan    
    

   TABLE OF CONTENTS  

	 
	 	 
	 	 
	 	Page

	1.	 	Establishment, Purpose and Term of Plan	 	1
	 	 	1.1	 	Establishment	 	1
	 	 	1.2	 	Purpose	 	1
	 	 	1.3	 	Term of Plan	 	1
	

2.	
 	

Definitions and Construction	
 	

1
	 	 	2.1	 	Definitions	 	1
	 	 	2.2	 	Construction	 	4
	

3.	
 	

Administration	
 	

5
	 	 	3.1	 	Administration by the Committee	 	5
	 	 	3.2	 	Authority of Officers	 	5
	 	 	3.3	 	Administration with Respect to Insiders	 	5
	 	 	3.4	 	Committee Complying with Section 162(m)	 	5
	 	 	3.5	 	Powers of the Committee	 	5
	 	 	3.6	 	Option Repricing	 	6
	 	 	3.7	 	Indemnification	 	6
	

4.	
 	

Shares Subject to Plan	
 	

7
	 	 	4.1	 	Maximum Number of Shares Issuable	 	7
	 	 	4.2	 	Adjustments for Changes in Capital Structure	 	7
	

5.	
 	

Eligibility and Award Limitations	
 	

7
	 	 	5.1	 	Persons Eligible for Awards	 	7
	 	 	5.2	 	Participation	 	7
	 	 	5.3	 	Incentive Stock Option Limitations	 	8
	 	 	5.4	 	Award Limits	 	8
	

6.	
 	

Terms and Conditions of Options	
 	

9
	 	 	6.1	 	Exercise Price	 	9
	 	 	6.2	 	Exercisability and Term of Options	 	9
	 	 	6.3	 	Payment of Exercise Price	 	9
	 	 	6.4	 	Effect of Termination of Service	 	10
	 	 	6.5	 	Transferability of Options	 	10
	

7.	
 	

Terms and Conditions of Stock Appreciation Rights	
 	

10
	 	 	7.1	 	Types of SARs Authorized	 	10
	 	 	7.2	 	Exercise Price	 	11
	 	 	7.3	 	Exercisability and Term of SARs	 	11
	

8.	
 	

Terms and Conditions of Stock Awards	
 	

12
	 	 	8.1	 	Types of Stock Awards Authorized	 	12
	 	 	8.2	 	Purchase Price	 	12
	 	 	8.3	 	Purchase Period	 	12
	 	 	8.4	 	Payment of Purchase Price	 	12
	 	 	8.5	 	Vesting and Restrictions on Transfer	 	13
	 	 	8.6	 	Voting Rights; Dividends and Distributions	 	13
	 	 	8.7	 	Effect of Termination of Service	 	13
	 	 	 	 	 	 	 

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9.	
 	

Terms and Conditions of Performance Awards	
 	

13
	 	 	9.1	 	Types of Performance Awards Authorized	 	13
	 	 	9.2	 	Initial Value of Performance Shares and Performance Units	 	13
	 	 	9.3	 	Establishment of Performance Period, Performance Goals and Performance Award Formula	 	13
	 	 	9.4	 	Measurement of Performance Goals	 	13
	 	 	9.5	 	Settlement of Performance Awards	 	14
	 	 	9.6	 	Dividend Equivalents	 	14
	 	 	9.7	 	Effect of Termination of Service	 	14
	 	 	9.8	 	Nontransferability of Performance Awards	 	14
	

10.	
 	

Standard Forms of Award Agreement	
 	

14
	 	 	10.1	 	Award Agreements	 	15
	 	 	10.2	 	Authority to Vary Terms	 	15
	

11.	
 	

Change in Control	
 	

17
	 	 	11.1	 	Definitions	 	17
	 	 	11.2	 	Effect of Change in Control on Options and SARs	 	18
	

12.	
 	

Compliance with Securities Law	
 	

18
	

13.	
 	

Tax Withholding	
 	

19
	

14.	
 	

Termination or Amendment of Plan	
 	

20
	

15.	
 	

Miscellaneous Provisions	
 	

20

ii

   KINTERA, INC.

2003 EQUITY INCENTIVE PLAN  

        1.    ESTABLISHMENT, PURPOSE AND TERM OF PLAN.    

        1.1   Establishment. Kintera, Inc., a Delaware corporation, hereby establishes the Kintera, Inc. 2003 Equity
Incentive Plan (the "Plan") effective as of the effective date of the initial registration by the
Company of its Stock under Section 12 of the Securities Exchange Act of 1934, as amended (the "Effective
Date"). 

        1.2   Purpose. The purpose of the Plan is to advance the interests of the Participating Company Group and its stockholders by
providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating such persons to contribute to the growth and profitability of the
Participating Company Group. The Plan seeks to achieve this purpose by providing for Awards in the form of Options, Stock Appreciation Rights, Stock Purchase Rights, Stock Bonuses, Stock Units,
Performance Shares and Performance Units. 

        1.3   Term of Plan. The Plan shall continue in effect until the earlier of its
termination by the Board or the date on which all of the shares of Stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms of the Plan and the
agreements evidencing Awards granted under the Plan have lapsed. However, all Incentive Stock Options shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is
adopted by the Board or the date the Plan is duly approved by the stockholders of the Company. 

        2.    DEFINITIONS AND CONSTRUCTION.    

        2.1   Definitions. Whenever used herein, the following terms shall have their
respective meanings set forth below: 

        (a)   "Affiliate" means (i) an entity, other than a Parent Corporation,
that directly, or indirectly through one or more intermediary entities, controls the Company or (ii) an entity, other than a Subsidiary Corporation, that is controlled by the Company directly,
or indirectly through one or more intermediary entities. For this purpose, the term "control" (including the term "controlled by") means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of the relevant entity, whether through the ownership of voting securities, by contract or otherwise; or shall have such other meaning assigned such
term for the purposes of registration on Form S-8 under the Securities Act. 

        (b)   "Award" means any Option, SAR, Stock Purchase Right, Stock Bonus, Stock
Unit, Performance Share or Performance Unit granted under the Plan. 

        (c)   "Award Agreement" means a written agreement between the Company and a
Participant setting forth the terms, conditions and restrictions of the Award granted to the Participant. An Award Agreement may be an "Option Agreement," an "SAR Agreement," a "Stock Purchase
Agreement," a "Stock Bonus Agreement," a "Stock Unit Agreement," a "Performance Share Agreement" or a "Performance Unit Agreement." 

        (d)   "Board" means the Board of Directors of the Company. 

        (e)   "Code" means the Internal Revenue Code of 1986, as amended, and any
applicable regulations promulgated thereunder. 

        (f)    "Committee" means the Compensation Committee or other committee of the
Board duly appointed to administer the Plan and having such powers as shall be specified by the Board. If no committee of the Board has been appointed to administer the Plan, the Board shall exercise
all of the powers of the Committee granted herein, and, in any event, the Board may in its discretion exercise any or all of such powers. 

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        (g)   "Company" means Kintera, Inc., a Delaware corporation, or any
successor corporation thereto. 

        (h)   "Consultant" means a person engaged to provide consulting or advisory
services (other than as an Employee or a member of the Board) to a Participating Company, provided that the identity of such person, the nature of such services or the entity to which such services
are provided would not preclude
the Company from offering or selling securities to such person pursuant to the Plan in reliance on registration on a Form S-8 Registration Statement under the Securities Act. 

        (i)    "Director" means a member of the Board or of the board of directors of
any other Participating Company. 

        (j)    "Disability" means the permanent and total disability of the Participant,
within the meaning of Section 22(e)(3) of the Code. 

        (k)   "Dividend Equivalent" means a credit, made at the discretion of the
Committee or as otherwise provided by the Plan, to the account of a Participant in an amount equal to the cash dividends paid on one share of Stock for each share of Stock represented by an Award held
by such Participant. 

        (l)    "Employee" means any person treated as an employee (including an Officer
or a member of the Board who is also treated as an employee) in the records of a Participating Company and, with respect to any Incentive Stock Option granted to such person, who is an employee for
purposes of Section 422 of the Code; provided, however, that neither service as a member of the Board nor payment of a director's fee shall be sufficient to constitute employment for purposes
of the Plan. 

        (m)  "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (n)   "Fair Market Value" means, as of any date, the value of a share of Stock
or other property as determined by the Committee, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following: 

        (i)    If,
on such date, the Stock is listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be the closing
price of a share of Stock (or the mean of the closing bid and asked prices of a share of Stock if the Stock is so quoted instead) as quoted on the Nasdaq National Market, The Nasdaq SmallCap Market or
such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in The Wall Street
Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market
system, the date on which the Fair Market Value shall be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be
determined by the Committee, in its discretion. 

        (ii)   If,
on such date, the Stock is not listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be as
determined by the Committee in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse. 

        (o)   "Incentive Stock Option" means an Option intended to be (as set forth in
the Award Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the Code. 

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        (p)   "Insider" means an Officer, a Director or any other person whose
transactions in Stock are subject to Section 16 of the Exchange Act. 

        (q)   "Nonstatutory Stock Option" means an Option not intended to be (as set
forth in the Award Agreement) an incentive stock option within the meaning of Section 422(b) of the Code. 

        (r)   "Officer" means any person designated by the Board as an officer of the
Company. 

        (s)   "Option" means the right to purchase Stock at a stated price for a
specified period of time granted to a participant pursuant to Section 6 of the Plan or to an Outside Director pursuant to Section 7 of the Plan. An Option may be either an Incentive
Stock Option or a Nonstatutory Stock Option. 

        (t)    "Outside Director" means a Director who is not an Employee of the Company
or of any Parent Corporation or Subsidiary Corporation. 

        (u)   "Parent Corporation" means any present or future "parent corporation" of
the Company, as defined in Section 424(e) of the Code. 

        (v)   "Participant" means any eligible person who has been granted one or more
Awards. 

        (w)  "Participating Company" means the Company or any Parent Corporation,
Subsidiary Corporation or Affiliate. 

        (x)   "Participating Company Group" means, at any point in time, all
corporations collectively which are then Participating Companies. 

        (y)   "Performance Award" means an Award of Performance Shares or Performance
Units. 

        (z)   "Performance Award Formula" means, for any Performance Award, a formula
or table established by the Committee pursuant to Section 10.3 of the Plan which provides the basis for computing the value of a Performance Award at one or more threshold levels of attainment
of the applicable Performance Goal(s) measured as of the end of the applicable Performance Period. 

        (aa) "Performance Goal" means a performance goal established by the Committee
pursuant to Section 10.3 of the Plan. 

        (bb) "Performance Period" means a period established by the Committee
pursuant to Section 10.3 of the Plan at the end of which one or more Performance Goals are to be measured. 

        (cc) "Performance Share" means a bookkeeping entry representing a right
granted to a Participant pursuant to Section 10 of the Plan to receive a payment equal to the value of a Performance Share, as determined by the Committee, based on performance. 

        (dd) "Performance Unit" means a bookkeeping entry representing a right
granted to a Participant pursuant to Section 10 of the Plan to receive a payment equal to the value of a Performance Unit, as determined by the Committee, based upon performance. 

        (ee) "Prior Plan Options" means any option granted pursuant to the Company's
2000 Stock Option Plan which is outstanding on or after the date on which the Board adopts the Plan or which is granted thereafter and prior to the Effective Date. 

        (ff)  "Restriction Period" means the period established in accordance with
Section 9.5 of the Plan during which shares subject to a Stock Award are subject to Vesting Conditions. 

        (gg) "Rule 16b-3" means Rule 16b-3
under the Exchange Act, as amended from time to time, or any successor rule or regulation. 

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        (hh) "SAR" or "Stock
Appreciation Right" means a bookkeeping entry representing, for each share of Stock subject to such SAR, a right granted to a Participant pursuant to
Section 8 of the Plan to receive payment of an amount equal to the excess, if any, of the Fair Market Value of a share of Stock on the date of exercise of the SAR over the exercise price. 

        (ii)   "Section 162(m)" means Section 162(m) of the Code. 

        (jj)   "Securities Act" means the Securities Act of 1933, as amended. 

        (kk) "Service" means a Participant's employment or service with the
Participating Company Group, whether in the capacity of an Employee, a Director or a Consultant. A Participant's Service shall not be deemed to have terminated merely because of a change in the
capacity in which the Participant renders Service to the Participating Company Group or a change in the Participating Company for which the Participant renders such Service, provided that there is no
interruption or termination of the Participant's Service. Furthermore, a Participant's Service with the Participating Company Group shall not be deemed to have terminated if the Participant takes any
military leave, sick leave, or other bona fide leave of absence approved by the Company; provided, however, that if any such leave exceeds ninety (90) days, on the ninety-first (91st) day of
such leave the Participant's Service shall be deemed to have terminated unless the Participant's right to return to Service with the Participating Company Group is guaranteed by statute or contract.
Notwithstanding the foregoing, unless otherwise designated by the Company or required by law, a leave of absence shall not be treated as Service for purposes of determining vesting under the
Participant's Option Agreement. The Participant's Service shall be deemed to have terminated either upon an actual termination of Service or upon the corporation for which the Participant performs
Service ceasing to be a Participating Company. Subject to the foregoing, the Company, in its discretion, shall determine whether the Participant's Service has terminated and the effective date of such
termination. 

        (ll)   "Stock" means the common stock of the Company, as adjusted from time to
time in accordance with Section 4.2 of the Plan. 

        (mm) "Stock Award" means an Award of a Stock Bonus, a Stock Purchase Right or
a Stock Unit. 

        (nn) "Stock Bonus" means Stock granted to a Participant pursuant to
Section 9 of the Plan. 

        (oo) "Stock Purchase Right" means a right to purchase Stock granted to a
Participant pursuant to Section 9 of the Plan. 

        (pp) "Stock Unit" means the right to receive in cash or Stock the Fair Market
Value of a share of Stock granted pursuant to Section 9 of the Plan. 

        (qq) "Subsidiary Corporation" means any present or future "subsidiary
corporation" of the Company, as defined in Section 424(f) of the Code. 

        (rr)  "Ten Percent Owner" means a Participant who, at the time an Option is
granted to the Participant, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating Company (other than an Affiliate) within the
meaning of Section 422(b)(6) of the Code. 

        (ss)  "Vesting Conditions" mean those conditions established in accordance
with Section 9.5 of the Plan prior to the satisfaction of which shares subject to a Stock Award remain subject to forfeiture or a repurchase option in favor of the Company. 

        2.2   Construction. Captions and titles contained herein are for convenience
only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by 

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the
context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise. 

        3.    ADMINISTRATION.    

        3.1   Administration by the Committee. The Plan shall be administered by the
Committee. All questions of interpretation of the Plan or of any Award shall be determined by the Committee, and such determinations shall be final and binding upon all persons having an interest in
the Plan or such Award. 

        3.2   Authority of Officers. Any Officer shall have the authority to act on
behalf of the Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has
apparent authority with respect to such matter, right, obligation, determination or election. The Board may, in its discretion, delegate to a committee comprised of one or more Officers the authority
to grant one or more Options, without further approval of the Board or the Committee, to any Employee, other than a person who, at the time of such grant, is an Insider; provided, however, that
(i) such Awards shall not be granted for shares in excess of the maximum aggregate number of shares of Stock authorized for issuance pursuant to Section 4.1, (ii) the exercise
price per share of each Option shall be not less than the Fair Market Value per share of the Stock on the effective date of grant (or, if the Stock has not traded on such date, on the last day
preceding the effective date of grant on which the Stock was traded), and (iii) each such Award shall be subject to the terms and conditions of the appropriate standard form of Award Agreement
approved by the Board or the Committee and shall conform to the provisions of the Plan and such other guidelines as shall be established from time to time by the Board or the Committee. 

        3.3   Administration with Respect to Insiders. With respect to participation by
Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with
the requirements, if any, of Rule 16b-3. 

        3.4   Committee Complying with Section 162(m). If the Company is a
"publicly held corporation" within the meaning of Section 162(m), the Board may establish a Committee of "outside directors" within the meaning of Section 162(m) to approve the grant of
any Award which might reasonably be anticipated to result in the payment of employee remuneration that would otherwise exceed the limit on employee remuneration deductible for income tax purposes
pursuant to Section 162(m). 

        3.5   Powers of the Committee. In addition to any other powers set forth in the Plan and subject to the provisions of the Plan,
the Committee shall have the full and final power and authority, in its discretion: 

        (a)   to
determine the persons to whom, and the time or times at which, Awards shall be granted and the number of shares of Stock or units to be subject to each Award; 

        (b)   to
determine the type of Award granted and to designate Options as Incentive Stock Options or Nonstatutory Stock Options; 

        (c)   to
determine the Fair Market Value of shares of Stock or other property; 

        (d)   to
determine the terms, conditions and restrictions applicable to each Award (which need not be identical) and any shares acquired pursuant thereto, including, without
limitation, (i) the exercise or purchase price of shares purchased pursuant to any Award, (ii) the method of payment for shares purchased pursuant to any Award, (iii) the method
for satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of shares of Stock, (iv) the timing, terms and conditions of the
exercisability or vesting of any Award or any shares acquired pursuant thereto, (v) the Performance Award 

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Formula
and Performance Goals applicable to any Award and the extent to which such Performance Goals have been attained, (vi) the time of the expiration of any Award, (vii) the effect of
the Participant's termination of Service on any of the foregoing, and (viii) all other terms, conditions and restrictions applicable to any Award or shares acquired pursuant thereto not
inconsistent with the terms of the Plan; 

        (e)   to
determine whether an Award of SARs, Stock Units, Performance Shares or Performance Units will be settled in shares of Stock, cash, or in any combination thereof; 

        (f)    to
approve one or more forms of Award Agreement; 

        (g)   to
amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any shares acquired pursuant thereto; 

        (h)   to
accelerate, continue, extend or defer the exercisability or vesting of any Award or any shares acquired pursuant thereto, including with respect to the period
following a Participant's termination of Service; 

        (i)    to
prescribe, amend or rescind rules, guidelines and policies relating to the plan, or to adopt sub-plans or supplements to, or alternative versions of, the
Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws of or to accommodate the laws, regulations, tax or accounting effectiveness, accounting
principles or custom of, foreign jurisdictions whose citizens may be granted Awards; and 

        (j)    to
correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations and take such other
actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law. 

        3.6   No Repricing. Without the affirmative vote of holders of a majority of
the shares of Stock cast in person or by proxy at a meeting of the stockholders of the Company at which a quorum representing a majority of all outstanding shares of Stock is present or represented by
proxy, the Board shall not approve a program providing for either (a) the cancellation of outstanding Options and/or SARs and the grant in substitution therefore of new Options and/or SARs
having a lower exercise price or (b) the amendment of outstanding Options and/or SARs to reduce the exercise price thereof. This paragraph shall not be construed to apply to "issuing or
assuming a stock option in a transaction to which section 424(a) applies," within the meaning of Section 424 of the Code. 

        3.7   Indemnification. In addition to such other rights of indemnification as
they may have as members of the Board or the Committee or as officers or employees of the Participating Company Group, members of the Board or the Committee and any officers or employees of the
Participating Company Group to whom authority to act for the Board, the Committee or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys'
fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by
reason of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement
is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it
shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty
(60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 

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        4.    SHARES SUBJECT TO PLAN.    

        4.1   Maximum Number of Shares Issuable. Subject to adjustment as provided in Section 4.2, the maximum aggregate number
of shares of Stock that may be issued under the Plan shall be Seven Million (7,000,000) (or such lesser number after adjustment to reflect any stock split which may be completed by the Company prior
to the initial registration by the Company of its Stock under Section 12 of the Exchange Act), reduced at any time by the number of shares subject to the Prior Plan Options. Such shares shall
consist of authorized but unissued or reacquired shares of Stock or any combination thereof. If any outstanding Award, including any Prior Plan Options, for any reason expires or is terminated or
canceled without having been exercised or settled in full, or if shares of Stock acquired pursuant to an Award subject to forfeiture or repurchase, including any Prior Plan Options, are forfeited or
repurchased by the Company, the shares of Stock allocable to the terminated portion of such Award, including any Prior Plan Options, or such forfeited or repurchased shares of Stock shall again be
available for issuance under the Plan. Shares of Stock shall not be deemed to have been issued pursuant to the Plan (i) with respect to any portion of an Award that is settled in cash or
(ii) to the extent such shares are withheld in satisfaction of tax withholding obligations pursuant to Section 14.2. Upon payment in shares of Stock pursuant to the exercise of an SAR,
the number of
shares available for issuance under the Plan shall be reduced only by the number of shares actually issued in such payment. If the exercise price of an Option is paid by tender to the Company, or
attestation to the ownership, of shares of Stock owned by the Participant, the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which the
Option is exercised. 

        4.2   Adjustments for Changes in Capital Structure. In the event of any change in the Stock through merger, consolidation,
reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of
shares, exchange of shares or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than
Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate adjustments shall be made in the number and class of shares subject to the
Plan, in the ISO Share Limit set forth in Section 5.3(b), the Award limits set forth in Section 5.4, to the number of shares awarded as Initial and Annual Options to Outside Directors as
specified in Section 7.1 of the Plan and to any outstanding Awards, and in the exercise or purchase price per share under any outstanding Award. Notwithstanding the foregoing, any fractional
share resulting from an adjustment pursuant to this Section 4.2 shall be rounded down to the nearest whole number, and in no event may the exercise or purchase price under any Award be
decreased to an amount less than the par value, if any, of the stock subject to such Award. The adjustments determined by the Committee pursuant to this Section 4.2 shall be final, binding and
conclusive. 

        5.    ELIGIBILITY AND AWARD LIMITATIONS.    

        5.1   Persons Eligible for Awards. Awards may be granted only to Employees, Directors and Consultants. For purposes of the
foregoing sentence, "Employees," "Consultants," and "Directors" shall include prospective Employees, prospective Consultants and prospective Directors to whom Awards are granted in connection with
written offers of an employment or other service relationship with the Participating Company Group; provided, however, that no Stock subject to any such Award shall vest, become exercisable or be
issued prior to the date on which such person commences Service. 

        5.2   Participation. Awards are granted solely at the discretion of the Committee. Eligible persons may be granted more than
one (1) Award. However, eligibility in accordance with this Section shall not entitle any person to be granted an Award, or, having been granted an Award, to be granted an additional Award. 

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        5.3   Incentive Stock Option Limitations.

        (a)   Persons Eligible. An Incentive Stock Option may be granted only to a person who, on the effective date of grant, is an
Employee of the Company, a Parent Corporation or a Subsidiary Corporation (each being an "ISO-Qualifying
Corporation"). Any person who is not an Employee of an ISO-Qualifying Corporation on the effective date of the grant of an Option to such
person may be granted only a Nonstatutory Stock Option. An Incentive Stock Option granted to a prospective Employee upon the condition that such person become an Employee of an
ISO-Qualifying Corporation shall be deemed granted effective on the date such person commences Service with an ISO-Qualifying Corporation, with an exercise price determined as
of such date in accordance with Section 6.1. 

        (b)   ISO Share Limit. Subject to adjustment as provided in Section 4.2, in no event shall more than Seven Million
(7,000,000) (or such lesser number after adjustment to reflect any stock split which may be completed by the Company prior to the initial registration by the Company of its Stock under
Section 12 of the Exchange Act), shares of Stock be available for issuance pursuant to the exercise of Incentive Stock Options granted under the Plan or the Company's 2000 Stock Option Plan
(the "ISO Share Limit"). 

        (c)   Fair Market Value Limitation. To the extent that options designated as Incentive Stock Options (granted under all stock
option plans of the Participating Company Group, including the Plan) become exercisable by a Participant for the first time during any calendar year for stock having a Fair Market Value greater than
One Hundred Thousand Dollars ($100,000), the portion of such options which exceeds such amount shall be treated as Nonstatutory Stock Options. For purposes of this Section, options designated as
Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of stock shall be determined as of the time the option with respect to such stock
is granted. If the Code is amended to provide for a different limitation from that set forth in this Section, such different limitation shall be deemed incorporated herein effective as of the date and
with respect to such Options as required or permitted by such amendment to the Code. If an Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason
of the limitation set forth in this Section, the Participant may designate which portion of such Option the Participant is exercising. In the absence of such designation, the Participant shall be
deemed to have exercised the Incentive Stock Option portion of the Option first. Upon exercise, each portion shall be separately identified. 

        5.4   Award Limits.

        (a)   Aggregate Limit on Stock Awards and Performance Awards. Subject to adjustment as provided in Section 4.2, in no
event shall more than One Million (1,000,000) shares of Stock in the aggregate be issued under the Plan pursuant to the exercise or settlement of Stock Awards and Performance Awards. 

        (b)   Section 162(m) Award Limits. The following limits shall apply to the grant of any Award if, at the time of grant,
the Company is a "publicly held corporation" within the meaning of Section 162(m). 

        (i)    Options and SARs. Subject to adjustment as provided in Section 4.2, no Employee shall be granted within any fiscal
year of the Company one or more Options or Freestanding SARs which in the aggregate are for more than One Million (1,000,000) shares of Stock. An Option which is canceled (or a Freestanding SAR as to
which the exercise price is reduced to reflect a reduction in the Fair Market Value of the Stock) in the same fiscal year of the Company in which it was granted shall continue to be counted against
such limit for such fiscal year. 

        (ii)   Stock Awards. Subject to adjustment as provided in Section 4.2, no Employee shall be granted within any fiscal
year of the Company one or more Stock Awards, subject to Vesting Conditions based on the attainment of Performance Goals, for more than Two Hundred Thousand (200,000) shares of Stock. 

8

  

        (iii)  Performance Awards. Subject to adjustment as provided in Section 4.2, no Employee shall be granted
(A) Performance Shares which could result in such Employee receiving more than Two Hundred Thousand (200,000) shares of Stock for each full fiscal year of the Company contained in the
Performance Period for such Award, or (B) Performance Units which could result in such Employee receiving more than Two Million dollars ($2,000,000) for each full fiscal year of the Company
contained in the Performance Period for such Award. No Participant may be granted more than one Performance Award for the same Performance Period. 

        6.    TERMS AND CONDITIONS OF OPTIONS.    

        Options
shall be evidenced by Award Agreements specifying the number of shares of Stock covered thereby, in such form as the Committee shall from time to time establish. No Option or
purported Option shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing Options may incorporate all or any of the
terms of the Plan by reference and shall comply with and be subject to the following terms and conditions: 

        6.1   Exercise Price. The exercise price for each Option shall be established in the discretion of the Committee; provided,
however, that (a) the exercise price per share shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the Option and (b) no Incentive Stock
Option granted to a Ten Percent Owner shall have an exercise price per share less than one hundred ten percent (110%) of the Fair Market Value of a share of Stock on the effective date of grant of the
Option. Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than the minimum exercise price set
forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of Section 424(a) of the Code. 

        6.2   Exercisability and Term of Options. Options shall be exercisable at such time or times, or upon such event or events, and
subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such Option; provided, however, that
(a) no Option shall be exercisable after the expiration of ten (10) years after the effective date of grant of such Option, (b) no Incentive Stock Option granted to a Ten Percent
Owner shall be exercisable after the expiration of five (5) years after the effective date of grant of such Option, and (c) no Option granted to a prospective Employee or prospective
Consultant may become exercisable prior to the date on which such person commences Service. Subject to the foregoing, unless otherwise specified by the Committee in the grant of an Option, any Option
granted hereunder shall terminate ten (10) years after the effective date of grant of the Option, unless earlier terminated in accordance with its provisions. 

        6.3   Payment of Exercise Price.

        (a)   Forms of Consideration Authorized. Except as otherwise provided below, payment of the exercise price for the number of
shares of Stock being purchased pursuant to any Option shall be made (i) in cash, by check or cash equivalent, (ii) by tender to the Company, or attestation to the ownership, of shares
of Stock owned by the Participant having a Fair Market Value not less than the exercise price, (iii) by delivery of a properly executed notice of exercise together with irrevocable instructions
to a broker providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without
limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System) (a  "Cashless
Exercise"), (iv) by such other consideration as may be approved by the Committee from
time to time to the extent permitted by applicable law, or (v) by any combination thereof. The Committee may at any time or from time to time grant Options which do not permit all of the
foregoing forms of 

9

 

consideration
to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration. 

        (b)   Limitations on Forms of Consideration.

        (i)    Tender of Stock. Notwithstanding the foregoing, an Option may not be exercised by tender to the Company, or attestation
to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the
Company's stock. Unless otherwise provided by the Committee, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have
been owned by the Participant for more than six (6) months (and not used for another Option exercise by attestation during such period) or were not acquired, directly or indirectly, from the
Company. 

        (ii)   Cashless Exercise. The Company reserves, at any and all times, the right, in the Company's sole and absolute discretion,
to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise. 

        6.4   Effect of Termination of Service. An Option shall be exercisable after a Participant's termination of Service to such
extent and during such period as determined by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Option. 

        6.5   Transferability of Options. During the lifetime of the Participant, an Option shall be exercisable only by the
Participant or the Participant's guardian or legal representative. No Option shall be assignable or
transferable by the Participant, except by will or by the laws of descent and distribution. Notwithstanding the foregoing, to the extent permitted by the Committee, in its discretion, and set forth in
the Award Agreement evidencing such Option, an Option shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to
Form S-8 Registration Statement under the Securities Act. 

        7.    TERMS AND CONDITIONS OF OUTSIDE DIRECTOR OPTIONS.    

        Outside
Director Options shall be evidenced by Award Agreements specifying the number of shares of Stock covered thereby, in such form as the Board shall from time to time establish.
Outside Director Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the terms and conditions of Section 6 to the extent no
inconsistent with this Section and the following terms and conditions: 

        7.1   Automatic Grant. Subject to the execution by an Outside Director of an appropriate Award Agreement, Options shall be
granted automatically and without further action of the Board, as follows: 

        (a)   Initial Option. Each person who first becomes an Outside Director after the Effective Date shall be granted on the date
such person first becomes an Outside Director an Option to purchase One Hundred Thousand (100,000) shares of Stock (or such lesser number after adjustment to reflect any stock split which may be
completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act) (an "Initial
Option")). 

        (b)   Annual Option. Each Outside Director shall be granted on the date of each annual meeting of the stockholders of the
Company which occurs on or after the Effective Date (an "Annual Meeting") immediately following which
such person remains an Outside Director an Option to purchase Fifty Thousand (50,000) shares of Stock (an "Annual
Option") (or such lesser number after adjustment to reflect any stock split which may be completed by the Company prior to the initial registration by
the Company of its Stock under Section 12 of the Exchange Act); provided, however, that an Outside Director granted an Initial Option on, or 

10

 

within
a period of six (6) months prior to, the date of an Annual Meeting shall not be granted an Annual Option pursuant to this Section with respect to the same Annual Meeting. 

        (c)   Right to Decline Outside Director Option. Notwithstanding the foregoing, any person may elect not to receive an Outside
Director Option by delivering written notice of such election to the Board no later than the day prior to the date such Option would otherwise be granted. A person so declining an Outside Director
Option shall receive no payment or other consideration in lieu of such declined Outside Director Option. A person who has declined an Outside Director Option may revoke such election by delivering
written notice of such revocation to the Board no later than the day prior to the
date such Outside Director Option would be granted pursuant to Section 7.1(a) or (b), as the case may be. 

        7.2   Exercisability and Term of Outside Director Options. Each Outside Director Option shall vest and
become exercisable as set forth below and shall terminate and cease to be exercisable on the tenth (10th) anniversary of the date of grant of the Outside Direct Option, unless earlier terminated in
accordance with the terms of the Plan or the Award Agreement evidencing such Outside Director Option. 

        (a)   Initial Options. Except as otherwise provided in the Plan or in the Award Agreement evidencing such Outside Director
Option, each Initial Option shall vest and become exercisable on an equal daily basis determined over a four (4) year term beginning on the date of grant, provided that the Outside Director's
Service has not terminated prior to the relevant date. 

        (b)   Annual Options. Except as otherwise provided in the Plan or in the Award Agreement evidencing such Outside Director
Option, each Annual Option shall vest and become exercisable on an equal daily basis determined over a four (4) year term beginning on the date of grant, provided that the Outside Director's
Service has not terminated prior to the relevant date. 

        7.3   Effect of Change in Control on Outside Director Options. In the event of a Change in Control, as defined in
Section 12.1, any unexercisable or unvested portions of outstanding Outside Director Options and any shares acquired upon the exercise thereof held by Outside Directors whose Service has not
terminated prior to such date shall be immediately exercisable and vested in full as of the date ten (10) days prior to the date of the Change in Control. The exercise or vesting of any Outside
Director Option and any shares acquired upon the exercise thereof that was permissible solely by reason of this Section 7.3 shall be conditioned upon the consummation of the Change in Control.
In addition, the surviving, continuing, successor, or purchasing corporation or parent corporation thereof, as the case may be (the "Acquiring
Corporation"), may either assume the Company's rights and obligations under outstanding Outside Director Options or substitute for outstanding Options
substantially equivalent options for the Acquiring Corporation's stock. Any Outside Director Options which are neither assumed or substituted for by the Acquiring Corporation in connection with the
Change in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the date of the Change in Control. Notwithstanding the foregoing, if
the corporation the stock of which is subject to the outstanding Outside Director Options immediately prior to an Ownership Change Event described in Section 12.1(a)(i) constituting a
Change in Control is the surviving or continuing corporation and immediately after such Ownership Change Event less than fifty percent (50%) of the total combined voting power of its voting stock is
held by another corporation or by other corporations that are members of an affiliated group within the meaning of Section 1504(a) of the Code without regard to the provisions of
Section 1504(b) of the Code, the outstanding Outside Director Options shall not terminate. 

11

 

        8.    TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.    

        SARs
shall be evidenced by Award Agreements specifying the number of shares of Stock subject to the Award, in such form as the Committee shall from time to time establish. No SAR or
purported SAR shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. Award Agreements evidencing SARs may incorporate all or any of the terms of
the Plan by reference and shall comply with and be subject to the following terms and conditions: 

        8.1   Types of SARs Authorized. SARs may be granted in tandem with all or any portion of a related Option (a  "Tandem SAR") or may be granted independently of any Option (a  "Freestanding SAR"). A Tandem SAR may be granted either concurrently with the grant
of the related
Option or at any time thereafter prior to the complete exercise, termination, expiration or cancellation of such related Option. 

        8.2   Exercise Price. The exercise price for each SAR shall be established in the discretion of the Committee; provided,
however, that (a) the exercise price per share subject to a Tandem SAR shall be the exercise price per share under the related Option and (b) the exercise price per share subject to a
Freestanding SAR shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the SAR. 

        8.3   Exercisability and Term of SARs.

        (a)   Tandem SARs. Tandem SARs shall be exercisable only at the time and to the extent that the related Option is exercisable,
subject to such provisions as the Committee may specify where the Tandem SAR is granted with respect to less than the full number of shares of Stock subject to the related Option. The Committee may,
in its discretion, provide in any Award Agreement evidencing a Tandem SAR that such SAR may not be exercised without the advance approval of the Company and, if such approval is not given, then the
Option shall nevertheless remain exercisable in accordance with its terms. A Tandem SAR shall terminate and cease to be exercisable no later than the date on which the related Option expires or is
terminated or canceled. Upon the exercise of a Tandem SAR with respect to some or all of the shares subject to such SAR, the related Option shall be canceled automatically as to the number of shares
with respect to which the Tandem SAR was exercised. Upon the exercise of an Option related to a Tandem SAR as to some or all of the shares subject to such Option, the related Tandem SAR shall be
canceled automatically as to the number of shares with respect to which the related Option was exercised. 

        (b)   Freestanding SARs. Freestanding SARs shall be exercisable at such time or times, or upon such event or events, and
subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such SAR; provided, however, that no
Freestanding SAR shall be exercisable after the expiration of ten (10) years after the effective date of grant of such SAR. 

        8.4   Exercise of SARs. Upon the exercise (or deemed exercise pursuant to Section 8.5) of a SAR, the Participant (or the
Participant's legal representative or other person who acquired the right to exercise the SAR by reason of the Participant's death) shall be entitled to receive payment of an amount for each share
with respect to which the SAR is exercised equal to the excess, if any, of the Fair Market Value of a share of Stock on the date of exercise of the SAR over the exercise price. Payment of such amount
shall be made in cash, shares of Stock, or any combination thereof as determined by the Committee. Unless otherwise provided in the Award Agreement evidencing such SAR, payment shall be made in a lump
sum as soon as practicable following the date of exercise of the SAR. The Award Agreement evidencing any SAR may provide for deferred payment in a lump sum or in installments. When payment is to be
made in shares of Stock, the number of shares to be issued shall be determined on the basis of the Fair Market Value of a share of Stock on the date of exercise of the SAR. For purposes of
Section 8, an SAR shall be 

12

 

deemed
exercised on the date on which the Company receives notice of exercise from the Participant. 

        8.5   Deemed Exercise of SARs. If, on the date on which an SAR would otherwise terminate or expire, the SAR by its terms
remains exercisable immediately prior to such termination or expiration and, if so exercised, would result in a payment to the holder of such SAR, then any portion of such SAR which has not previously
been exercised shall automatically be deemed to be exercised as of such date with respect to such portion. 

        8.6   Effect of Termination of Service. An SAR shall be exercisable after a Participant's termination of Service to such extent
and during such period as determined by the Committee, in its discretion, and set forth in the Award Agreement evidencing such SAR. 

        8.7   Nontransferability of SARs. SARs may not be assigned or transferred in any manner except by will or the laws of descent
and distribution, and, during the lifetime of the Participant, shall be exercisable only by the Participant or the Participant's guardian or legal representative. 

        9.    TERMS AND CONDITIONS OF STOCK AWARDS.    

        Stock
Awards shall be evidenced by Award Agreements specifying whether the Award is a Stock Bonus, a Stock Purchase Right or a Stock Unit and the number of shares of Stock subject to the
Award, in such form as the Committee shall from time to time establish. No Stock Award or purported Stock Award shall be a valid and binding obligation of the Company unless evidenced by a fully
executed Award Agreement. Award Agreements evidencing Stock Awards may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and
conditions: 

        9.1   Types of Stock Awards Authorized. Stock Awards may be in the form of either a Stock Bonus, a Stock Purchase Right or a
Stock Unit. Stock Awards may be granted upon such conditions as the Committee shall determine, including, without limitation, upon the attainment of one or more Performance Goals described in
Section 10.4. If either the grant of a Stock Award or the lapsing of the Restriction Period is to be contingent upon the attainment of one or more Performance Goals, the Committee shall follow
procedures substantially equivalent to those set forth in Sections 10.3 through 10.5(a). 

        9.2   Purchase Price. The purchase price for shares of Stock issuable under each Stock Purchase Right shall be established by
the Committee in its discretion. No monetary payment (other than applicable tax withholding) shall be required as a condition of receiving shares of Stock pursuant to a Stock Bonus or a Stock Unit,
the consideration for which shall be services actually rendered to a Participating Company or for its benefit. Notwithstanding the foregoing, the Participant shall furnish consideration in the form of
cash or past services rendered to a Participating Company or for its benefit having a value not less than the par value of the shares of Stock subject to such Stock Award. 

        9.3   Purchase Period. A Stock Purchase Right shall be exercisable within a period established by the Committee, which shall in
no event exceed thirty (30) days from the effective date of the grant of the Stock Purchase Right; provided, however, that no Stock Purchase Right granted to a prospective Employee or
prospective Consultant may become exercisable prior to the date on which such person commences Service. 

        9.4   Payment of Purchase Price. Except as otherwise provided below, payment of the purchase price for the number of shares of
Stock being purchased pursuant to any Stock Purchase Right shall be made (i) in cash, by check, or cash equivalent, (ii) by such other consideration as may be approved by the Committee
from time to time to the extent permitted by applicable law, or (iii) by any combination thereof. The Committee may at any time or from time to time grant Stock Purchase Rights which do not
permit all of the foregoing forms of consideration to be used in payment of the purchase price or which otherwise restrict one or more forms of consideration. 

13

 

Stock
Bonuses and Stock Units shall be issued in consideration for past services actually rendered to a Participating Company or for its benefit. 

        9.5   Vesting and Restrictions on Transfer. Shares issued pursuant to any Stock Award may or may not be made subject to vesting
conditioned upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in Section 10.4
(the "Vesting Conditions"), as shall be established by the Committee and set forth in the Award
Agreement evidencing such Award. During any period (the "Restriction Period") in which shares acquired
pursuant to a Stock Award remain subject to Vesting Conditions, such shares may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of other than pursuant to an Ownership
Change Event, as defined in Section 12.1, or as provided in Section 9.8. Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions
prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all
certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions. 

        9.6   Voting Rights; Dividends and Distributions. Except as provided in this Section, Section 9.5 and any Award
Agreement, during the Restriction Period applicable to shares subject to a Stock Purchase Right and Stock Bonuses, the Participant shall have all of the rights of a stockholder of the Company holding
shares of Stock, including the right to vote such shares and to receive all dividends and other distributions paid with respect to such shares. Participants who have been granted Stock Units shall
possess no incidents of ownership with respect to shares of Stock underlying such Stock Units; provided, however, that a Stock Unit Agreement may provide for payments in lieu of dividends in a manner
identical to that specified in Section 10.6 of the Plan. However, in the event of a dividend or distribution paid in shares of Stock or any other adjustment made upon a change in the capital
structure of the Company as described in Section 4.2, then any and all new, substituted or additional securities or other property (other than normal cash dividends) to which the Participant is
entitled by reason of the Participant's Stock Award shall be immediately subject to the same Vesting Conditions as the shares subject to the Stock Award with respect to which such dividends or
distributions were paid or adjustments were made. 

        9.7   Effect of Termination of Service. Unless otherwise provided by the Committee in the grant of a Stock Award and set forth
in the Award Agreement, if a Participant's Service terminates for any reason, whether voluntary or involuntary (including the Participant's death or Disability), then (i) the Company shall have
the option to repurchase for the purchase price paid by the Participant any shares acquired by the Participant pursuant to a Stock Purchase Right which remain subject to Vesting Conditions as of the
date of the Participant's termination of Service and (ii) the Participant shall forfeit to the Company any shares acquired by the Participant pursuant to a Stock Bonus or a Stock Unit which
remain subject to Vesting Conditions as of the date of the Participant's termination of Service. The Company shall have the right to assign at any time any repurchase right it may have, whether or not
such right is then exercisable, to one or more persons as may be selected by the Company. 

        9.8   Nontransferability of Stock Award Rights. Rights to acquire shares of Stock pursuant to a Stock Award may not be subject
in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or garnishment by creditors of the Participant or the Participant's beneficiary, except by will or
the laws of descent and distribution, and, during the lifetime of the Participant, shall be exercisable only by the Participant or the Participant's guardian or legal representative. 

        10.    TERMS AND CONDITIONS OF PERFORMANCE AWARDS.    

        Performance
Awards shall be evidenced by Award Agreements in such form as the Committee shall from time to time establish. No Performance Award or purported Performance Award shall be a
valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement. 

14

 

Award
Agreements evidencing Performance Awards may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions: 

        10.1     Types of Performance Awards Authorized. Performance Awards may be in the form of either Performance Shares
or Performance Units. Each Award Agreement evidencing a Performance Award shall specify the number of Performance Shares or Performance Units subject thereto, the Performance Award Formula, the
Performance Goal(s) and Performance Period applicable to the Award, and the other terms, conditions and restrictions of the Award. 

        10.2     Initial Value of Performance Shares and Performance Units. Unless otherwise provided by the Committee in
granting a Performance Award, each Performance Share shall have an initial value equal to the Fair Market Value of one (1) share of Stock, subject to adjustment as provided in
Section 4.2, on the effective date of grant of the Performance Share, and each Performance Unit shall have an initial value of one hundred dollars ($100). The final value payable to the
Participant in settlement of a Performance Award determined on the basis of the applicable Performance Award Formula will depend on the extent to which Performance Goals established by the Committee
are attained within the applicable Performance Period established by the Committee. 

        10.3     Establishment of Performance Period, Performance Goals and Performance Award Formula. In granting each
Performance Award, the Committee shall establish in writing the applicable Performance Period, Performance Award Formula and one or more Performance Goals which, when measured at the end of the
Performance Period, shall determine on the basis of the Performance Award Formula the final value of the Performance Award to be paid to the Participant. Unless otherwise permitted in compliance with
the requirements under Section 162(m) with respect to "performance-based compensation," the Committee shall establish the Performance Goal(s) and Performance Award Formula applicable to each
Performance Award no later than the earlier of (a) the date ninety (90) days after the commencement of the applicable Performance Period or (b) the date on which 25% of the
Performance Period has elapsed, and, in any event, at a time when the outcome of the Performance Goals remains substantially uncertain. Once established, the Performance Goals and Performance Award
Formula shall not be changed during the Performance Period. The Company shall notify each Participant granted a Performance Award of the terms of such Award, including the Performance Period,
Performance Goal(s) and Performance Award Formula. 

        10.4     Measurement of Performance Goals. Performance Goals shall be established by the Committee on the basis of
targets to be attained ("Performance Targets") with respect to one or more measures of business or
financial performance (each, a "Performance Measure"), subject to the following: 

        (a)   Performance Measures. Performance Measures shall have the same meanings as used in the Company's financial statements,
or, if such terms are not used in the Company's financial statements, they shall have the meaning applied pursuant to generally accepted accounting principles, or as used generally in the Company's
industry. Performance Measures shall be calculated with respect to the Company and each Subsidiary Corporation consolidated therewith for financial reporting purposes or such division or other
business unit as may be selected by the Committee. For purposes of the Plan, the Performance Measures applicable to a Performance Award shall be calculated in accordance with generally accepted
accounting principles, but prior to the accrual or payment of any Performance Award for the same Performance Period and excluding the effect (whether positive or negative) of any change in accounting
standards or any extraordinary, unusual or nonrecurring item, as determined by the Committee, occurring after the establishment of the Performance Goals applicable to the Performance Award.
Performance Measures may be one or more of the following, as determined by the Committee: 

        (i)    growth
in revenue; 

15

 

        (ii)   growth
in the market price of the Stock; 

        (iii)  operating
margin; 

        (iv)  gross
margin; 

        (v)   operating
income; 

        (vi)  pre-tax
profit; 

        (vii) earnings
before interest, taxes and depreciation; 

        (viii) net
income; 

        (ix)  total
return on shares of Stock relative to the increase in an appropriate index as may be selected by the Committee; 

        (x)   earnings
per share; 

        (xi)  return
on stockholder equity; 

        (xii) return
on net assets; 

        (xiii) expenses; 

        (xiv) return
on capital; 

        (xv) economic
value added; 

        (xvi) market
share; and 

        (xvii) cash
flow, as indicated by book earnings before interest, taxes, depreciation and amortization. 

        (b)   Performance Targets. Performance Targets may include a minimum, maximum, target level and intermediate levels of
performance, with the final value of a Performance Award determined under the applicable Performance Award Formula by the level attained during the applicable Performance Period. A Performance Target
may be stated as an absolute value or as a value determined relative to a standard selected by the Committee. 

        10.5     Settlement of Performance Awards.

        (a)   Determination of Final Value. As soon as practicable following the completion of the Performance Period applicable to a
Performance Award, the Committee shall certify in writing the extent to which the applicable Performance Goals have been attained and the resulting final value of the Award earned by the Participant
and to be paid upon its settlement in accordance with the applicable Performance Award Formula. 

        (b)   Discretionary Adjustment of Award Formula. In its discretion, the Committee may, either at the time it grants a
Performance Award or at any time thereafter, provide for the positive or negative adjustment of the Performance Award Formula applicable to a Performance Award granted to any Participant who
is not a "covered employee" within the meaning of Section 162(m) (a "Covered Employee") to
reflect such Participant's individual performance in his or her position with the Company or such other factors as the Committee may determine. If permitted under a Covered Employee's Award Agreement,
the Committee shall have the discretion, on the basis of such criteria as may be established by the Committee, to reduce some or all of the value of the Performance Award that would otherwise be paid
to the Covered Employee upon its settlement notwithstanding the attainment of any Performance Goal and the resulting value of the Performance Award determined in accordance with the Performance Award
Formula. No such reduction may result in an increase in the amount payable upon settlement of another Participant's Performance Award. 

        (c)   Effect of Leaves of Absence. Unless otherwise required by law, payment of the final value, if any, of a Performance Award
held by a Participant who has taken in excess of thirty (30) days of leaves of absence during a Performance Period shall be prorated on the basis of the number of days of the Participant's
Service during the Performance Period during which the Participant was not on a leave of absence. 

        (d)   Notice to Participants. As soon as practicable following the Committee's determination and certification in accordance
with Sections 10.5(a) and (b), the Company shall notify each Participant of the determination of the Committee. 

16

  

        (e)   Payment in Settlement of Performance Awards. As soon as practicable following the Committee's determination and
certification in accordance with Sections 10.5(a) and (b), payment shall be made to each eligible Participant (or such Participant's legal representative or other person who acquired the right to
receive such payment by reason of the Participant's death) of the final value of the Participant's Performance Award. Payment of such amount shall be made in cash, shares of Stock, or a combination
thereof as determined by the Committee. Unless otherwise provided in the Award Agreement evidencing a Performance Award, payment shall be made in a lump sum. An Award Agreement may provide for
deferred payment in a lump sum or in installments. If any payment is to be made on a deferred basis, the Committee may, but shall not be obligated to, provide for the payment during the deferral
period of Dividend Equivalents or interest. 

        (f)    Provisions Applicable to Payment in Shares. If payment is to be made in shares of Stock, the number of such shares shall
be determined by dividing the final value of the Performance Award by the value of a share of Stock determined by the method specified in the Award Agreement. Such methods may include, without
limitation, the closing market price on a specified date (such as the settlement date) or an average of market prices over a series of trading days. Shares of Stock issued in payment of any
Performance Award may be fully vested and freely transferable shares or may be shares of Stock subject to Vesting Conditions as provided in Section 9.5. Any shares subject to Vesting Conditions
shall be evidenced by an appropriate Award Agreement and shall be subject to the provisions of Sections 9.5 through 9.8 above. 

        10.6     Dividend Equivalents. In its discretion, the Committee may provide in the Award Agreement evidencing any
Performance Share Award that the Participant shall be entitled to receive Dividend Equivalents with respect to the payment of cash dividends on Stock having a record date prior to the date on which
the Performance Shares are settled or forfeited. Dividend Equivalents may be paid currently or may be accumulated and paid to the extent that Performance Shares become nonforfeitable, as determined by
the Committee. Settlement of Dividend Equivalents may be made in cash, shares of Stock, or a combination thereof as determined by the Committee, and may be paid on the same basis as settlement of the
related Performance Share as provided in Section 10.5. Dividend Equivalents shall not be paid with respect to Performance Units. 

        10.7     Effect of Termination of Service. The effect of a Participant's termination of Service on the
Participant's Performance Award shall be as determined by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Performance Award. 

        10.8     Nontransferability of Performance Awards. Prior to settlement in accordance with the provisions of the
Plan, no Performance Award may be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or
the Participant's beneficiary, except by will or by the laws of descent and distribution. All rights with respect to a Performance Award granted to a Participant hereunder shall be exercisable during
his or her lifetime only by such Participant or the Participant's guardian or legal representative. 

        11.    STANDARD FORMS OF AWARD AGREEMENT.    

        11.1     Award Agreements. Each Award shall comply with and be subject to the terms and conditions set forth in the
appropriate form of Award Agreement approved by the Committee and as amended from time to time. Any Award Agreement may consist of an appropriate form of Notice of Grant and a form of Agreement
incorporated therein by reference, or such other form or forms as the Committee may approve from time to time. 

17

 

        11.2     Authority to Vary Terms. The Committee shall have the authority from time to time to vary the terms of any
standard form of Award Agreement either in connection with the grant or amendment of an individual Award or in connection with the authorization of a new standard form or forms; provided, however,
that the terms and conditions of any such new, revised or amended standard form or forms of Award Agreement are not inconsistent with the terms of the Plan. 

        12.    CHANGE IN CONTROL.    

        12.1     Definitions.

        (a)   An
"Ownership Change Event" shall be deemed to have occurred if any of
the following occurs with respect to the Company: (i) the direct or indirect sale or exchange by the stockholders of the Company of all or substantially all of the voting stock of the Company;
(ii) a merger or consolidation in which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company (other than a sale,
exchange or transfer to one or more subsidiaries of the Company); or (iv) a liquidation or dissolution of the Company. 

        (b)   A
"Change in Control" shall mean an Ownership Change Event or series of
related Ownership Change Events (collectively, a "Transaction") in which the stockholders of the Company
immediately before the Transaction do not retain immediately after the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the
outstanding voting securities of the Company or, in the case of an Ownership Change Event described in Section 12.1(a)(iii), the entity to which the assets of the Company were transferred. 

        12.2     Effect of Change in Control on Options. In the event of a Change in Control, the Acquiring Corporation
may, without the consent of any Participant, either assume the Company's rights and obligations under outstanding Options or substitute for outstanding Options substantially equivalent options for the
Acquiring Corporation's stock. In the event that the Acquiring Corporation elects to assume the outstanding Options, and the Change of Control is consummated, then the vesting of the unvested shares
underlying all Options shall be accelerated by one year as set forth in the Option Agreement. In the event the Acquiring Corporation elects not to assume or substitute for outstanding Options in
connection with a Change in Control, the vesting of each such outstanding Option and any shares acquired upon the exercise thereof held by a Participant whose Service has not terminated prior to such
date shall be fully accelerated, effective as of the date ten (10) days prior to the date of the Change in Control, to such extent, if any, as shall have been determined by the Board, in its
discretion, and set forth in the Option Agreement evidencing such Option. The vesting of any Option thereof that was permissible solely by reason of this Section 12.2 and the provisions of such
Option Agreement shall be conditioned upon the consummation of the Change in Control. Any Options which are neither assumed or substituted for by the Acquiring Corporation in connection with the
Change in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the date of the Change in Control. Notwithstanding the foregoing,
shares acquired upon exercise of an Option prior to the Change in Control and any consideration received pursuant to the Change in Control with respect to such shares shall continue to be subject to
all applicable provisions of the Option Agreement evidencing such Option except as otherwise provided in such Option Agreement. Furthermore, notwithstanding the foregoing, if the corporation the stock
of which is subject to the outstanding Options immediately prior to an Ownership Change Event described in Section 12.1(a)(i) constituting a Change in Control is the surviving or
continuing corporation and immediately after such Ownership Change Event less than fifty percent (50%) of the total combined voting power of its voting stock is held by another 

18

 

corporation
or by other corporations that are members of an affiliated group within the meaning of Section 1504(a) of the Code without regard to the provisions of Section 1504(b) of the
Code, the outstanding Options shall not terminate unless the Board otherwise provides in its discretion. 

        12.3     Effect of Change in Control on SARs. In the event of a Change in Control, the Acquiring Corporation may,
without the consent of any Participant, either assume the Company's rights and obligations under outstanding SARs or substitute for outstanding SARs substantially equivalent SARs for the Acquiring
Corporation's stock. In the event the Acquiring Corporation elects not to assume or substitute for outstanding SARs in connection with a Change in Control, the Committee shall provide that any
unexercised and/or unvested portions of outstanding SARs shall be immediately exercisable and vested in full as of the date thirty (30) days prior to the date of the Change in Control. The
exercise and/or vesting of any SAR that was permissible solely by reason of this paragraph 12.3 shall be conditioned upon the consummation of the Change in Control. Any SARs which are not
assumed by the Acquiring Corporation in connection with the Change in Control nor exercised as of the time of consummation of the Change in Control shall terminate and cease to be outstanding
effective as of the time of consummation of the Change in Control. 

        12.4     Effect of Change in Control on Stock Awards. The Committee may, in its discretion, provide in any Award
Agreement evidencing a Stock Award that, in the event of a Change in Control, the lapsing of the Restriction Period applicable to the shares subject to the Stock Award held by a Participant whose
Service has not terminated prior to such date shall be accelerated effective as of the date of the Change in Control to such extent as specified in such Award Agreement. Any acceleration of the
lapsing of the Restriction Period that was permissible solely by reason of this Section 12.4 and the provisions of such Award Agreement shall be conditioned upon the consummation of the Change
in Control. 

        12.5     Effect of Change in Control on Performance Awards. The
Committee may, in its discretion, provide in any Award Agreement evidencing a Performance Award that, in the event of a Change in Control, the Performance Award held by a Participant whose Service has
not terminated prior to such date shall become payable effective as of the date of the Change in Control to such extent as specified in such Award Agreement. 

        13.    COMPLIANCE WITH SECURITIES LAW.    

        The
grant of Awards and the issuance of shares of Stock pursuant to any Award shall be subject to compliance with all applicable requirements of federal, state and foreign law with
respect to such securities and the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, no Award may be exercised or shares issued pursuant to an
Award unless (i) a registration statement under the Securities Act shall at the time of such exercise or issuance be in effect with respect to the shares issuable pursuant to the Award or
(ii) in the opinion of legal counsel to the Company, the shares issuable pursuant to the Award may be issued in accordance with the terms of an applicable exemption from the registration
requirements of the Securities Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company's legal counsel to be necessary to
the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not
have been obtained. As a condition to issuance of any Stock, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any
applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 

19

 

        14.    TAX WITHHOLDING.    

        14.1     Tax Withholding in General. The Company shall have the right to deduct from any and all payments made
under the Plan, or to require the Participant, through payroll withholding, cash payment or otherwise, including by means of a Cashless Exercise of an Option, to make adequate provision for, the
federal, state, local and foreign taxes, if any, required by law to be withheld by the
Participating Company Group with respect to an Award or the shares acquired pursuant thereto. The Company shall have no obligation to deliver shares of Stock, to release shares of Stock from an escrow
established pursuant to an Award Agreement, or to make any payment in cash under the Plan until the Participating Company Group's tax withholding obligations have been satisfied by the Participant. 

        14.2     Withholding in Shares. The Company shall have the right, but not the obligation, to deduct from the shares
of Stock issuable to a Participant upon the exercise or settlement of an Award, or to accept from the Participant the tender of, a number of whole shares of Stock having a Fair Market Value, as
determined by the Company, equal to all or any part of the tax withholding obligations of the Participating Company Group. The Fair Market Value of any shares of Stock withheld or tendered to satisfy
any such tax withholding obligations shall not exceed the amount determined by the applicable minimum statutory withholding rates. 

        15.    TERMINATION OR AMENDMENT OF PLAN.    

        The
Committee may terminate or amend the Plan at any time. However, without the approval of the Company's stockholders, there shall be (a) no increase in the maximum aggregate
number of shares of Stock that may be issued under the Plan (except by operation of the provisions of Section 4.2), (b) no change in the class of persons eligible to receive Incentive
Stock Options, and (c) no other amendment of the Plan that would require approval of the Company's stockholders under any applicable law, regulation or rule. No termination or amendment of the
Plan shall affect any then outstanding Award unless expressly provided by the Committee. In any event, no termination or amendment of the Plan may adversely affect any then outstanding Award without
the consent of the Participant, unless such termination or amendment is necessary to comply with any applicable law, regulation or rule. 

        16.    MISCELLANEOUS PROVISIONS.    

        16.1     Repurchase Rights. Shares issued under the Plan may be subject to one or more repurchase options, or other
conditions and restrictions as determined by the Committee in its discretion at the time the Award is granted. The Company shall have the right to assign at any time any repurchase right it may have,
whether or not such right is then exercisable, to one or more persons as may be selected by the Company. Upon request by the Company, each Participant shall execute any agreement evidencing such
transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock acquired hereunder for the
placement on such certificates of appropriate legends evidencing any such transfer restrictions. 

        16.2     Provision of Information. Each Participant shall be given access to information concerning the Company
equivalent to that information generally made available to the Company's common stockholders. 

        16.3     Rights as Employee, Consultant or Director. No person, even though eligible pursuant to Section 5,
shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. Nothing in the Plan or any Award granted under the Plan shall confer on any
Participant a right to remain an Employee, Consultant or Director, or interfere with or limit in any way any right of a Participating Company to terminate the Participant's Service at any time. To the
extent that an Employee of a Participating Company other than the Company 

20

 

receives
an Award under the Plan, that Award can in no event be understood or interpreted to mean that the Company is the Employee's employer or that the Employee has an employment relationship with
the Company. 

        16.4     Rights as a Stockholder. A Participant shall have no rights as a stockholder with respect to any shares
covered by an Award until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No
adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in Section 4.2 or another
provision of the Plan. 

        16.5     Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise or
settlement of any Award. 

        16.6     Beneficiary Designation. Subject to local laws and procedures, each Participant may file with the Company
a written designation of a beneficiary who is to receive any benefit under the Plan to which the Participant is entitled in the event of such Participant's death before he or she receives any or all
of such benefit. Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in
writing with the Company during the Participant's lifetime. If a married Participant designates a beneficiary other than the Participant's spouse, the effectiveness of such designation may be subject
to the consent of the Participant's spouse. If a Participant dies without an effective designation of a beneficiary who is living at the time of the Participant's death, the Company will pay any
remaining unpaid benefits to the Participant's legal representative. 

        16.7     Unfunded Obligation. Participants shall have the status of general unsecured creditors of the Company. Any
amounts payable to Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act
of 1974. No Participating Company shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The
Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the
creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Committee or any Participating Company and a
Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant's creditors in any assets of any Participating Company. The Participants shall have no claim
against any Participating Company for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan. 

21

PLAN HISTORY  

	October 29, 2003	 	Board of Directors of Kintera, Inc., a Delaware corporation (the "Company") adopts Plan effective as of the closing of the initial public offering (the "IPO") of the Company with an initial reserve of Seven Million
(7,000,000) (or such lesser number after adjustment to reflect any stock split which may be completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act), reduced at any time by the
number of shares subject to the Prior Plan Options.
	

 	
 	

 
	October 30, 2003	 	Shareholders of the Company approve Plan effective as of the closing of the IPO, with an initial reserve of Seven Million (7,000,000) (or such lesser number after adjustment to reflect any stock split which may be
completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act), reduced at any time by the number of shares subject to the Prior Plan Options.
	

 	
 	

 
	                    , 2003	 	Effective Date of the Plan.

  

 
 

KINTERA, INC.
  STOCK OPTION AGREEMENT    
    

        Kintera, Inc. has granted to the individual (the  "Optionee") named in
the Notice of Grant of Stock Option
(the "Notice") to which this Stock Option Agreement (the  "Option
Agreement") is attached an option (the  "Option") to purchase certain shares of Stock
upon the terms and conditions set forth in the Notice and
this Option Agreement. The Option has been granted pursuant to and shall in all respects be subject to the terms and conditions of the Kintera, Inc. 2003 Equity Incentive Plan (the  "Plan"), as amended to the Date of Option Grant, the provisions of which are incorporated herein by
reference. By signing the Notice, the Optionee: (a) represents that the Optionee has read and is familiar with the terms and conditions of the Notice, the Plan and this Option Agreement,
including the Effect of Termination of Service set forth in Section 7, (b) accepts the Option subject to all of the terms and conditions of the Notice, the Plan and this Option
Agreement, (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions arising under the Notice, the Plan or this Option Agreement,
and (d) acknowledges receipt of a copy of the Notice, the Plan and this Option Agreement. 

        1.    DEFINITIONS AND CONSTRUCTION.    

        1.1   Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings assigned
to such terms in the Notice or the Plan. 

        1.2   Construction. Captions and titles contained herein are for convenience only and shall not affect
the meaning or interpretation of any provision of this Option Agreement. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the
singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires otherwise. 

        2.    TAX CONSEQUENCES.    

        2.1   Tax Status of Option. This Option is intended to have the tax status designated in the Notice. 

        (a)   Incentive Stock Option. If the Notice so designates, this Option is intended to be an Incentive
Stock Option within the meaning of Section 422(b) of the Code, but the Company does not represent or warrant that this Option qualifies as such. The Optionee should consult with the Optionee's
own tax advisor regarding the tax effects of this Option and the requirements necessary to obtain favorable income tax treatment under Section 422 of the Code, including, but not limited to,
holding period requirements. (NOTE TO OPTIONEE: If the Option is exercised more than three (3) months after the date on which you cease to be an Employee (other than by reason of your death or
permanent and total disability as defined in Section 22(e)(3) of the Code), the Option will be treated as a Nonstatutory Stock Option and not as an Incentive Stock Option to the extent required
by Section 422 of the Code.) 

        (b)   Nonstatutory Stock Option. If the Notice so designates, this Option is intended to be a Nonstatutory Stock Option and
shall not be treated as an Incentive Stock Option within the meaning of Section 422(b) of the Code. 

        2.2   ISO Fair Market Value Limitation. If the Notice designates this Option as an Incentive Stock
Option, then to the extent that the Option (together with all Incentive Stock Options granted to the Optionee under all stock option plans of the Participating Company Group,
including the Plan) becomes exercisable for the first time during any calendar year for shares having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion of such
options which exceeds such amount will be treated as Nonstatutory Stock Options. For purposes of this Section 2.2, options designated as Incentive Stock Options are taken into account in the
order in which they were granted, and the Fair Market Value of stock is determined as of the time the option with respect to such stock is granted. If the Code is amended to provide for a different 

1

 

limitation
from that set forth in this Section 2.2, such different limitation shall be deemed incorporated herein effective as of the date required or permitted by such amendment to the Code.
If the Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set forth in this Section 2.2, the Optionee may designate
which portion of such Option the Optionee is exercising. In the absence of such designation, the Optionee shall be deemed to have exercised the Incentive Stock Option portion of the Option first.
Separate certificates representing each such portion shall be issued upon the exercise of the Option. (NOTE TO OPTIONEE: If the aggregate Exercise Price of the Option (that is, the Exercise Price
multiplied by the Number of Option Shares) plus the aggregate exercise price of any other Incentive Stock Options you hold (whether granted pursuant to the Plan or any other stock option plan of the
Participating Company Group) is greater than $100,000, you should contact the Chief Financial Officer of the Company to ascertain whether the entire Option qualifies as an Incentive Stock Option.) 

        3.    ADMINISTRATION.    

        All
questions of interpretation concerning this Option Agreement shall be determined by the Board. All determinations by the Board shall be final and binding upon all persons having an
interest in the Option. Any officer of a Participating Company shall have the authority to act on behalf of the
Company with respect to any matter, right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided the officer has apparent authority with respect
to such matter, right, obligation, or election. 

        4.    EXERCISE OF THE OPTION. 

        4.1   Right to Exercise. Except as otherwise provided herein, the Option shall be exercisable on and after the Date of Option
Grant (or if later, the Optionee's Service commencement date) and prior to the termination of the Option (as provided in Section 6) in an amount not to exceed the number of Vested Shares less
the number of shares previously acquired upon exercise of the Option. 

        4.2   Method of Exercise. Exercise of the Option shall be by written notice to the Company which must
state the election to exercise the Option, the number of whole shares of Stock for which the Option is being exercised and such other representations and agreements as to the Optionee's investment
intent with respect to such shares as may be required pursuant to the provisions of this Option Agreement. The written notice must be signed by the Optionee and must be delivered in person, by
certified or registered mail, return receipt requested, by confirmed facsimile transmission, or by such other means as the Company may permit, to the Chief Financial Officer of the Company, or other
authorized representative of the Participating Company Group, prior to the termination of the Option as set forth in Section 6, accompanied by full payment of the aggregate Exercise Price for
the number of shares of Stock being purchased. The Option shall be deemed to be exercised upon receipt by the Company of such written notice and the aggregate Exercise Price. 

        4.3   Payment of Exercise Price.    

        (a)   Forms of Consideration Authorized. Except as otherwise provided below, payment of the aggregate
Exercise Price for the number of shares of Stock for which the Option is being exercised shall be made (i) in cash, by check, or cash equivalent, (ii) by tender to the Company, or
attestation to the ownership, of whole shares of Stock owned by the Optionee having a Fair Market Value (as determined by the Company without regard to any restrictions on transferability applicable
to such stock by reason of federal or state securities laws or agreements with an underwriter for the Company) not less than the aggregate Exercise Price, (iii) by means of a Cashless Exercise,
as defined in Section 4.3(b), or (iv) by any combination of the foregoing. 

2

 

        (b)   Limitations on Forms of Consideration.

        (i)    Tender of Stock. Notwithstanding the foregoing, the Option may not be exercised by tender to the Company, or attestation
to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the
Company's stock. The Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the Optionee for more than
six (6) months or were not acquired, directly or indirectly, from the Company. 

        (ii)   Cashless Exercise. A "Cashless
Exercise" means the delivery of a properly executed notice together with irrevocable instructions to a broker in a form acceptable to the Company
providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares of Stock acquired upon the exercise of the Option pursuant to a program or
procedure approved by the Company (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of
the Federal Reserve System). The Company reserves, at any and all times, the right, in the Company's sole and absolute discretion, to decline to approve or terminate any such program or procedure. 

        4.4   Tax Withholding. At the time the Option is exercised, in whole or in part, or at any time
thereafter as requested by the Company, the Optionee hereby authorizes withholding from payroll and any other amounts payable to the Optionee, and otherwise agrees to make adequate provision for
(including by means of a Cashless Exercise to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Participating
Company Group, if any, which arise in connection with the Option, including, without limitation, obligations arising upon (i) the exercise, in whole or in part, of the Option, (ii) the
transfer, in whole or in part, of any shares acquired upon exercise of the Option, (iii) the operation of any law or regulation providing for the imputation of interest, or (iv) the
lapsing of any restriction with respect to any shares acquired upon exercise of the Option. The Company shall have no obligation to deliver shares of Stock until the tax withholding obligations of the
Participating Company Group have been satisfied by the Optionee. 

        4.5   Certificate Registration. Except in the event the Exercise Price is paid by means of a Cashless
Exercise, the certificate for the shares as to which the Option is exercised shall be registered in the name of the Optionee, or, if applicable, in the names of the heirs of the Optionee. 

        4.6   Restrictions on Grant of the Option and Issuance of Shares. The grant of the Option and the
issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities. The Option may
not be exercised if the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the
requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, the Option may not be exercised unless (i) a registration statement under the
Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or (ii) in the opinion of legal counsel to the Company,
the shares issuable upon exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. THE OPTIONEE IS
CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS
VESTED. The inability of the Company to obtain from any regulatory body having jurisdiction the 

3

 

authority,
if any, deemed by the Company's legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Option shall relieve the Company of any liability in respect of
the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of the Option, the Company may require the Optionee to
satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be
requested by the Company. 

        4.7   Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise
of the Option. 

        5.    NONTRANSFERABILITY OF THE OPTION.    

        The
Option may be exercised during the lifetime of the Optionee only by the Optionee or the Optionee's guardian or legal representative and may not be assigned or transferred in any
manner except by will or by the laws of descent and distribution. Following the death of the Optionee, the Option, to the extent provided in Section 7, may be exercised by the Optionee's legal
representative or by any person empowered to do so under the deceased Optionee's will or under the then applicable laws of descent and distribution. 

        6.    TERMINATION OF THE OPTION.    

        The
Option shall terminate and may no longer be exercised on the first to occur of (a) the Option Expiration Date, (b) the last date for exercising the Option following
termination of the Optionee's Service as described in Section 7, or (c) a Change in Control to the extent provided in Section 8. 

        7.    EFFECT OF TERMINATION OF SERVICE.    

        7.1   Option Exercisability.

        (a)   Disability. If the Optionee's Service with the Participating Company Group terminates because of
the Disability of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee's Service terminated, may be exercised by the Optionee (or the Optionee's
guardian or legal representative) at any time prior to the expiration of twelve (12) months after the date on which the Optionee's Service terminated, but in any event no later than the Option
Expiration Date. 

        (b)   Death. If the Optionee's Service with the Participating Company Group terminates because of the
death of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee's Service terminated, may be exercised by the Optionee's legal representative or other
person who acquired the right to exercise the Option by reason of the Optionee's death at any time prior to the expiration of twelve (12) months after the date on which the Optionee's Service
terminated, but in any event no later than the Option Expiration Date. The Optionee's Service shall be deemed to have terminated on account of death if the Optionee dies within three (3) months
after the Optionee's termination of Service. 

        (c)   Termination After Change in Control. If the Optionee's Service ceases as a result of Termination After Change in Control
(as defined in 7.4(a) below), (i) the Option, to the extent unexercised and exercisable on the date on which the Optionee's Service terminated, may be exercised by the Optionee (or the
Optionee's guardian or legal representative) at any time prior to the expiration of six (6) months after the date on which the Optionee's Service terminated, but in any event no later than the
Option Expiration Date, and (ii) the Option shall become immediately vested and exercisable in full and the Vested Ratio shall be deemed to be 1/1 as of the date on which the
Optionee's Service terminated. 

        (d)   Other Termination of Service. If the Optionee's Service with the Participating Company Group
terminates for any reason, except Disability, death or Termination After Change in Control, the Option, to the extent unexercised and exercisable by the Optionee on the date on which the Optionee's
Service terminated, may be exercised by the Optionee at any time prior to the expiration of three (3) months (or such other longer period of time as determined by the Board, in its discretion)
after the date on which the Optionee's Service terminated, but in any event no later than the Option Expiration Date. 

4

  

        7.2   Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of the
Option within the applicable time periods set forth in Section 7.1 is prevented by the provisions of Section 4.6, the Option shall remain exercisable until three (3) months after
the date the Optionee is notified by the Company that the Option is exercisable, but in any event no later than the Option Expiration Date. 

        7.3   Extension if Optionee Subject to Section 16(b). Notwithstanding the foregoing, if a sale within the applicable
time periods set forth in Section 7.1 of shares acquired upon the exercise of the Option would subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall
remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a sale of such shares by the Optionee would no longer be subject to such suit,
(ii) the one hundred and ninetieth (190th) day after the Optionee's termination of Service, or (iii) the Option Expiration Date. 

        7.4   Certain Definitions.

        (a)   "Termination After Change in Control" shall mean either of the following
events occurring within twenty-four (24) months after a Change in Control: 

        (i)    termination
by the Participating Company Group of the Optionee's Service with the Participating Company Group for any reason other than for Cause (as defined in 7.4(b)
below); or 

        (ii)   the
Optionee's resignation for Good Reason (as defined in 7.4(c) below) from all capacities in which the Optionee is then rendering Service to the Participating Company
Group within a reasonable period of time following the event constituting Good Reason. 

        Notwithstanding
any provision herein to the contrary, Termination After Change in Control shall not include any termination of the Optionee's Service with the Participating Company Group
which (1) is for Cause (as defined below); (2) is a result of the Optionee's death or disability; (3) is a result of the Optionee's voluntary termination of Service other than for
Good Reason; or (4) occurs prior to the effectiveness of a Change in Control. 

        (b)   "Cause" shall mean any of the following: (i) the Optionee's theft,
dishonesty, or falsification of any Participating Company documents or records; (ii) the Optionee's improper use or disclosure of a
Participating Company's confidential or proprietary information; (iii) any action by the Optionee which has a detrimental effect on a Participating Company's reputation or business;
(iv) the Optionee's failure or inability to perform adequately any reasonable assigned duties as determined by a Participating Company; (v) any violation by the Optionee of any material
agreement between the Optionee and a Participating Company, which breach is not cured pursuant to the terms of such agreement or any breach of any material statutory duty to a Participating Company;
or (vi) the Optionee's conviction (including any plea of guilty or nolo contendere) of any felony or crime involving moral turpitude or dishonesty. 

        (c)   "Good Reason" shall mean any one or more of the following: 

        (i)    without
the Optionee's express written consent, the relocation of the principal place of the Optionee's Service to a location that is more than fifty (50) miles
from the Optionee's principal place of Service immediately prior to the date of the Change in Control; 

        (ii)   any
failure by the Participating Company Group to pay, or any reduction by the Participating Company Group of the Optionee's base salary in effect immediately prior to
the date of the Change in Control; or 

5

 

        (iii)  any
failure by the Participating Company Group to (1) continue to provide to the Optionee a package of welfare benefit plans, including, but not limited to, the
Participating Company Group's life, disability, health, dental, medical, savings, profit sharing and retirement plans, that, taken as a whole, provide substantially similar benefits to those to which
the Optionee was entitled immediately prior to the Change in Control (except that the Optionee's contributions may be increased to the extent of any cost increases imposed by third parties) or
(2) provide the Optionee with all other fringe benefits (or their equivalent) from time to time in effect for the benefit of any employee of the Participating Company Group. 

        8.    CHANGE IN CONTROL.    

        (a)   In
the event of a Change in Control, the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the  "Acquiring Corporation"), may,
 without the consent of the Optionee, either assume the Company's rights and obligations under the Option or substitute
for the Option a substantially equivalent option for the Acquiring Corporation's stock. In the event of such assumption or substitution, the vesting schedule set forth in the Notice shall accelerate
by one full year. The vesting schedule shall be adjusted as follows: 

        (i)    if
the Change of Control occurs prior to the Initial Vesting Date, the Initial Vesting Date shall remain unchanged; however, thereafter the daily vesting shall be
adjusted so that the remaining 75% of the Stock shall vest daily in 730 equal increments for the two-year period immediately following the Initial Vesting Date, provided that the Optionee
provides continuous Service to the Acquiring Corporation or any Participating Company, and the Vested Ratio shall be calculated accordingly; 

        (ii)   if
the Change of Control occurs on or after the Initial Vesting Date, all Option Shares vested as of the date of the Change of Control shall remain Vested Shares and,
in lieu of the daily vesting schedule that would otherwise be applicable, all shares that were not vested at the time of the Change of Control will vest daily in equal increments from the date of the
Change of Control through the date two years after the Initial Vesting Date, provided that the Optionee provides continuous Service to the Acquiring Corporation or any Participating Company, and the
Vested Ratio shall be calculated accordingly. Notwithstanding the foregoing, if the Change of Control occurs after the third anniversary of the Initial Vesting Date, then all remaining Option Shares
that had not yet vested shall vest at the time of the Change of Control. 

        (b)   In
the event the Acquiring Corporation elects not to assume the Company's rights and obligations under the Option or substitute for the Option in connection with the
Change in Control, and provided that the Optionee's Service has not terminated prior to such date, the Vested Ratio shall be deemed to be 1/1 and all shares acquired upon exercise of
the Option shall be Vested Shares as of the date ten (10) days prior to the date of the Change in Control. Any vesting of the Option that was permissible solely by reason of this
Section 8 shall be conditioned upon the consummation of the Change in Control. The Option shall terminate and cease to be outstanding effective as of the date of the Change in Control to the
extent that the Option is neither assumed or substituted for by the Acquiring Corporation in connection with the Change in Control nor exercised as of the date of the Change in Control.
Notwithstanding the foregoing, shares acquired upon exercise of the Option prior to the Change in Control and any consideration received pursuant to the Change in Control with respect to such shares
shall continue to be subject to all applicable provisions of this Option Agreement except as otherwise provided herein. Furthermore, notwithstanding the foregoing, if the corporation the stock of
which is subject to the Option immediately prior to an Ownership Change Event described in Section 12.1(a)(i) of the Plan 

6

 

constituting
a Change in Control is the surviving or continuing corporation and immediately after such Ownership Change Event less than fifty percent (50%) of the total combined voting power of its
voting stock is held by another corporation or by other corporations that are members of an affiliated group within the meaning of Section 1504(a) of the Code without regard to the provisions
of Section 1504(b) of the Code, the Option shall not terminate unless the Board otherwise provides in its discretion. 

        9.    ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE.    

        In
the event of any stock dividend, stock split, reverse stock split, recapitalization, combination, reclassification, or similar change in the capital structure of the Company,
appropriate adjustments shall be made in the number, Exercise Price and class of shares of stock subject to the Option. If a majority of the shares which are of the same class as the shares that are
subject to the Option are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares of another corporation (the  "New
Shares"), the Board may unilaterally amend the Option to provide that the Option is exercisable for
New Shares. In the event of any such amendment, the Number of Option Shares and the Exercise Price shall be adjusted in a fair and equitable manner, as determined by the Board, in its discretion.
Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 9 shall be rounded down to the nearest whole number, and in no event may the Exercise
Price be decreased to an amount less than the par value, if any, of the stock subject to the Option. The adjustments determined by the Board pursuant to this Section 9 shall be final, binding
and conclusive. 

        10.    RIGHTS AS A STOCKHOLDER, EMPLOYEE OR CONSULTANT.    

        The
Optionee shall have no rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of a certificate for the shares for which the Option
has been exercised (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions
or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 9. If the Optionee is an Employee, the Optionee understands and
acknowledges that, except as otherwise provided in a separate, written employment agreement between a Participating Company and the Optionee, the Optionee's employment is "at will" and is for no
specified term. Nothing in this Option Agreement shall confer upon the Optionee any right to continue in the Service of a Participating Company or interfere in any way with any right of the
Participating Company Group to terminate the Optionee's Service as an Employee or Consultant, as the case may be, at any time. 

        11.    NOTICE OF SALES UPON DISQUALIFYING DISPOSITION.    

        The
Optionee shall dispose of the shares acquired pursuant to the Option only in accordance with the provisions of this Option Agreement. In addition, if the
Notice designates this Option as an Incentive Stock Option, the Optionee shall (a) promptly notify the Chief Financial Officer of the Company if the Optionee disposes of
any of the shares acquired pursuant to the Option within one (1) year after the date the Optionee exercises all or part of the Option or within two (2) years after the Date of Option
Grant and (b) provide the Company with a description of the circumstances of such disposition. Until such time as the Optionee disposes of such shares in a manner consistent with the provisions
of this Option Agreement, unless otherwise expressly authorized by the Company, the Optionee shall hold all shares acquired pursuant to the Option in the Optionee's name (and not in the name of any
nominee) for the one-year period immediately after the exercise of the Option and the two-year period immediately after Date of Option Grant. At any time during the
one-year or two-year periods set forth above, the Company may place a legend on any certificate representing shares acquired pursuant to the Option requesting the transfer
agent for the Company's stock to notify the Company of any such transfers. The obligation of the Optionee to notify the Company of any such transfer shall continue notwithstanding that a legend has
been placed on the certificate pursuant to the preceding sentence. 

7

 

        12.    LEGENDS.    

        The
Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions, and, if applicable, that the shares were acquired upon
exercise of an Incentive Stock Option on all certificates representing shares of stock subject to the provisions of this Option Agreement. The Optionee shall, at the request of the Company, promptly
present to the Company any and all certificates representing shares acquired pursuant to the Option in the possession of the Optionee in order to carry out the provisions of this Section. 

        13.    LOCK-UP AGREEMENT.    

        The
Optionee hereby agrees that in the event of any underwritten public offering of stock, including an initial public offering of stock, made by the Company pursuant to an effective
registration statement filed under the Securities Act, the Optionee shall not offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase or make any short sale of, or otherwise
dispose of any shares of stock of the Company or any rights to acquire stock of the Company for such period of time from and after the effective date of such registration statement as may be
established by the underwriter for such public offering; provided, however, that such period of time shall not exceed one hundred eighty (180) days from the effective date of the registration
statement to be filed in connection with such public offering. The foregoing limitation shall not apply to shares registered in the public offering under the Securities Act. 

        14.    RESTRICTIONS ON TRANSFER OF SHARES.    

        No
shares acquired upon exercise of the Option may be sold, exchanged, transferred (including, without limitation, any transfer to a nominee or agent of the Optionee), assigned, pledged,
hypothecated or otherwise disposed of, including by operation of law, in any manner which violates any of the provisions of this Option Agreement, and any such attempted disposition shall be void. The
Company shall not be required (a) to transfer on its books any shares which will have been transferred in violation of any of the provisions set forth in this Option Agreement or (b) to
treat as owner of such shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such shares will have been so transferred. 

        15.    MISCELLANEOUS PROVISIONS.    

        15.1     Binding Effect. Subject to the restrictions on transfer set forth herein, this Option Agreement shall
inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns. 

        15.2     Termination or Amendment. The Board may terminate or amend the Plan or the Option at any time; provided,
however, that except as provided in Section 8 in connection with a Change in Control, no such termination or amendment may adversely affect the Option or any unexercised portion hereof without
the consent of the Optionee unless such termination or amendment is necessary to comply with any applicable law or government regulation or is required to enable the Option, if designated an Incentive
Stock Option in the Notice, to qualify as an Incentive Stock Option. No amendment or addition to this Option Agreement shall be effective unless in writing. 

        15.3     Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given (except to the extent that this Option Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery or upon deposit in the United States Post
Office, by registered or certified mail, with postage and fees prepaid, addressed to the other party at the address shown below that party's signature on the Notice or at such other address as such
party may designate in writing from time to time to the other party. 

8

 

        15.4     Integrated Agreement. The Notice, this Option Agreement and the Plan constitute the entire understanding
and agreement of the Optionee and the Participating Company Group with respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings, restrictions,
representations, or warranties among the Optionee and the Participating Company Group with respect to such subject matter other than those as set forth or provided for herein or therein. To
the extent contemplated herein or therein, the provisions of the Notice and the Option Agreement shall survive any exercise of the Option and shall remain in full force and effect. 

        15.5     Applicable Law. This Option Agreement shall be governed by the laws of the State of California as such
laws are applied to agreements between California residents entered into and to be performed entirely within the State of California. 

        15.6     Counterparts. The Notice may be executed in counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. 

9

  

	o Nonstatutory Stock Option

o Incentive Stock Option	 	Optionee:	 

	 	 	Date:	 

 
 

STOCK OPTION EXERCISE NOTICE    
    

Kintera, Inc.

Attention: Chief Financial Officer

9605 Scranton Rd., Suite 240

San Diego, CA 92121 

Ladies
and Gentlemen: 

        1.     Option. I was granted an option (the  "Option") to purchase shares of the common stock (the 
"Shares") of Kintera, Inc. (the
"Company") pursuant to the Company's 2003 Equity Incentive Plan (the  "Plan"), my Notice of Grant of Stock Option (the  "Notice") and my Stock
Option Agreement (the "Option
Agreement") as follows: 

	

 	

 	

 
	 	Grant Number:	

	

 	

 	

 
	 	Date of Option Grant:	

	

 	

 	

 
	 	Number of Option Shares:	

	

 	

 	

 
	 	Exercise Price per Share:	$

        2.     Exercise of Option. I hereby elect to exercise the Option to purchase the following number of Shares: 

	

 	

 	

 
	 	Total Shares Purchased:	

	

 	

 	

 
	 	Total Exercise Price (Total Shares X Price per Share)	$

        3.     Payments. I enclose payment in full of the total exercise price for the Shares in the following form(s), as authorized by
my Option Agreement: 

	

 	

 	

 
	 	o Cash:	$

	

 	

 	

 
	 	o Check:	$

	

 	

 	

 
	 	o Tender of Company Stock:	Contact Plan Administrator
	

 	

 	

 
	 	o Cashless exercise	Contact Plan Administrator

        4.     Tax Withholding. Subject to the Option Agreement, I authorize payroll withholding and otherwise
will make adequate provision for the federal, state, local and foreign tax withholding obligations of the Company, if any, in connection with the Option. 

1

 

        5.     Optionee Information. 

	

 	

 
	My address is:	 

	

 	

 
	 	 

	

 	

 
	My Social Security Number is:	 

        6.     Notice of Disqualifying Disposition. If the Option is an Incentive Stock Option, I agree that I
will promptly notify the Chief Financial Officer of the Company if I transfer any of the Shares within one (1) year from the date I exercise all or part of the Option or within two
(2) years of the Date of Option Grant. 

        7.     Binding Effect. I agree that the Shares are being acquired in accordance with and subject to the
terms, provisions and conditions of the Option Agreement, to all of which I hereby expressly assent. This Agreement shall inure to the benefit of and be binding upon the my heirs, executors,
administrators, successors and assigns. 

        I understand that I am purchasing the Shares pursuant to the terms of the Plan, the Notice and my Option Agreement, copies of which I have received and carefully
read and understand. 

	

 	

 	
 	

 
	 	 	 	Very truly yours,
	

 	

 	
 	

 
	 	 	 	 
 (Signature)
	

 	

 	
 	

 
	Receipt of the above is hereby acknowledged.	 	 
	

 	

 	
 	

 
	KINTERA, INC.	 	 
	

 	

 	
 	

 
	By:	 
	 	 
	

 	

 	
 	

 
	Title:	 
	 	 
	

 	

 	
 	

 
	Dated:	 
	 	 

2

QuickLinks

Exhibit 10.3

Kintera, Inc. 2003 Equity Incentive Plan

KINTERA, INC. STOCK OPTION AGREEMENT

STOCK OPTION EXERCISE NOTICEQuickLinks
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Exhibit 10.4  

 
 

KINTERA, INC.
  2003 EMPLOYEE STOCK PURCHASE PLAN    
    

        1.    ESTABLISHMENT, PURPOSE AND TERM OF PLAN.    

        1.1   Establishment. Kintera, Inc., a Delaware corporation, hereby establishes the Kintera, Inc. 2003 Employee
Stock Purchase Plan (the "Plan") effective as of the effective date of the initial registration by the
Company of its Stock under Section 12 of the Securities Exchange Act of 1934, as amended (the "Effective
Date"). 

        1.2   Purpose. The purpose of the Plan is to advance the interests of the Company and its stockholders by providing an
incentive to attract, retain and reward Eligible Employees of the Participating Company Group and by motivating such persons to contribute to the growth and profitability of the Participating Company
Group. The Plan provides such Eligible Employees with an opportunity to acquire a proprietary interest in the Company through the purchase of Stock. The Company intends that the Plan qualify as an
"employee stock purchase plan" under Section 423 of the Code (including any amendments or replacements of such section), and the Plan shall be so construed. 

        1.3   Term of Plan. The Plan shall continue in effect until the earlier of its termination by the Board, the date on which all
of the shares of Stock available for issuance under the Plan have been issued, or the date ten (10) years after the Effective Date. 

        2.    DEFINITIONS AND CONSTRUCTION.    

        2.1   Definitions. Any term not expressly defined in the Plan but defined for purposes of Section 423 of the Code shall
have the same definition herein. Whenever used herein, the following terms shall have their respective meanings set forth below: 

        (a)   "Board" means the Board of Directors of the Company. If one or more
Committees have been appointed by the Board to administer the Plan, "Board" also means such Committee(s). 

        (b)   "Code" means the Internal Revenue Code of 1986, as amended, and any
applicable regulations promulgated thereunder. 

        (c)   "Committee" means a committee of the Board duly appointed to administer
the Plan and having such powers as specified by the Board. Unless the powers of the Committee have been specifically limited, the Committee shall have all of the powers of the Board granted herein,
including, without limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 

        (d)   "Company" means Kintera, Inc., a Delaware corporation, or any
successor corporation thereto. 

        (e)   "Compensation" means, with respect to any Offering Period, base wages or
salary, overtime, bonuses, commissions, shift differentials, payments for paid time off, payments in lieu of notice, and compensation deferred under any program or plan, including, without limitation,
pursuant to Section 401(k) or Section 125 of the Code. Compensation shall be limited to amounts actually payable in cash or deferred during the Offering Period. Compensation shall not
include moving allowances, payments pursuant to a severance agreement, termination pay, relocation payments, sign-on bonuses, any amounts directly or indirectly paid pursuant to the Plan
or any other stock purchase or stock option plan, or any other compensation not included above. 

1

 

        (f)    "Eligible Employee" means an Employee who meets the requirements set
forth in Section 5 for eligibility to participate in the Plan. 

        (g)   "Employee" means a person treated as an employee of a Participating
Company for purposes of Section 423 of the Code. A Participant shall be deemed to have ceased to be an Employee either upon an actual termination of employment or upon the corporation employing
the Participant ceasing to be a Participating Company. For purposes of the Plan, an individual shall not be deemed to have ceased to be an Employee while on any military leave, sick leave, or other
bona fide leave of absence approved by the Company of ninety (90) days or less. If an individual's leave of absence exceeds ninety (90) days, the individual shall be deemed to have
ceased to be an Employee on the ninety-first (91st) day of such leave unless the individual's right to reemployment with the Participating Company Group is guaranteed either by statute or by contract. 

        (h)   "Fair Market Value" means, as of any date: 

        (i)    If
the Stock is then listed on a national or regional securities exchange or market system or is regularly quoted by a recognized securities dealer, the closing sale
price of a share of Stock (or the mean of the closing bid and asked prices if the Stock is so quoted instead) as quoted on the Nasdaq National Market, the Nasdaq SmallCap Market or such other national
or regional securities exchange or market system constituting the primary market for the Stock, or by such recognized securities dealer, as reported in The Wall Street
Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market
system or has been quoted by such securities dealer, the date on which the Fair Market Value is established shall be the last day on which the Stock was so traded or quoted prior to the relevant date,
or such other appropriate day as determined by the Board, in its discretion. 

        (ii)   If,
on the relevant date, the Stock is not then listed on a national or regional securities exchange or market system or regularly quoted by a recognized securities
dealer, the Fair Market Value of a share of Stock shall be as determined in good faith by the Board. 

        (iii)  Notwithstanding
the foregoing, the Fair Market Value of a share of Stock on the Effective Date shall be deemed to be the public offering price set forth in the final
prospectus filed with the Securities and Exchange Commission in connection with the Company's initial public offering of the Stock. 

        (i)    "Initial Offering Period Cash Exercise Notice" means a written notice in
such form as specified by the Company, which states a Participant's election to exercise, as of the next Purchase Date, a Purchase Right granted to such Participant with respect to the Initial
Offering Period. 

        (j)    "Offering" means an offering of Stock as provided in Section 6. 

        (k)   "Offering Date" means, for any Offering, the first day of the Offering
Period. 

        (l)    "Offering Period" means a period established in accordance with
Section 6. 

        (m)  "Parent Corporation" means any present or future "parent corporation" of
the Company, as defined in Section 424(e) of the Code. 

        (n)   "Participant" means an Eligible Employee who has become a participant in
an Offering Period in accordance with Section 7 and remains a participant in accordance with the Plan. 

2

 

        (o)   "Participating Company" means the Company or any Parent Corporation or
Subsidiary Corporation designated by the Board as a corporation the Employees of which may, if Eligible Employees, participate in the Plan. The Board shall have the sole and absolute discretion to
determine from time to time which Parent Corporations or Subsidiary Corporations shall be Participating Companies. 

        (p)   "Participating Company Group" means, at any point in time, the Company
and all other corporations collectively which are then Participating Companies. 

        (q)   "Purchase Date" means, for any Offering Period, the last day of such
period. 

        (r)   "Purchase Price" means the price at which a share of Stock may be
purchased under the Plan, as determined in accordance with Section 9. 

        (s)   "Purchase Right" means an option granted to a Participant pursuant to the
Plan to purchase such shares of Stock as provided in Section 8, which the Participant may or may not exercise during the Offering Period in which such option is outstanding. Such option arises
from the right of a Participant to withdraw any accumulated payroll deductions of the Participant not previously applied to the purchase of Stock under the Plan and to terminate participation in the
Plan at any time during an Offering Period. 

        (t)    "Registration Date" means the effective date of the initial registration
on Form S-8 of shares of Stock issuable pursuant to the Plan. 

        (u)   "Stock" means the common stock of the Company, as adjusted from time to
time in accordance with Section 4.2. 

        (v)   "Subscription Agreement" means a written agreement in such form as
specified by the Company, stating an Employee's election to participate in the Plan and authorizing payroll deductions under the Plan from the Employee's Compensation. 

        (w)  "Subscription Date" means the last business day prior to the Offering
Date of an Offering Period or such earlier date as the Company shall establish. 

        (x)   "Subsidiary Corporation" means any present or future "subsidiary
corporation" of the Company, as defined in Section 424(f) of the Code. 

        2.2   Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or
interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is
not intended to be exclusive, unless the context clearly requires otherwise. 

        3.    ADMINISTRATION.    

        3.1   Administration by the Board. The Plan shall be administered by the Board. All questions of interpretation of the Plan, of
any form of agreement or other document employed by the Company in the administration of the Plan, or of any Purchase Right shall be determined by the Board, and such determinations shall be final,
binding and conclusive upon all persons having an interest in the Plan or the Purchase Right, unless fraudulent or made in bad faith. Subject to the provisions of the Plan, the Board shall determine
all of the relevant terms and conditions of Purchase Rights; provided, however, that all Participants granted Purchase Rights pursuant to an Offering shall have the same rights and privileges within
the meaning of Section 423(b)(5) of the Code. Any and all actions, decisions and determinations taken or made by the Board in the exercise of its discretion pursuant to the Plan or any
agreement thereunder (other than determining questions of interpretation pursuant to the second sentence of this Section 3.1) shall be final, binding and conclusive upon all persons having an
interest therein. All expenses incurred in connection with the administration of the Plan shall be paid by the Company. 

3

 

        3.2   Authority of Officers. Any officer of the Company shall have the authority to act on behalf of the Company with respect
to any matter, right, obligation, determination or election that is the responsibility of or that is allocated to the Company herein, provided that the officer has apparent authority with respect to
such matter, right, obligation, determination or election. 

        3.3   Policies and Procedures Established by the Company. The Company may, from time to time, consistent with the Plan and the
requirements of Section 423 of the Code, establish, change or terminate such rules, guidelines, policies, procedures, limitations, or adjustments as deemed advisable by the Company, in its
discretion, for the proper administration of the Plan, including, without limitation, (a) a minimum payroll deduction amount required for participation in an Offering, (b) a limitation
on the frequency or number of changes permitted in the rate of payroll deduction during an Offering, (c) an exchange ratio applicable to amounts withheld in a currency other than United States
dollars, (d) a payroll deduction greater than or less than the amount designated by a Participant in order to adjust for the Company's delay or mistake in processing a Subscription Agreement or
in otherwise effecting a Participant's election under the Plan or as advisable to comply with the requirements of Section 423 of the Code, and (e) determination of the date and manner by
which the Fair Market Value of a share of Stock is determined for purposes of administration of the Plan. All such actions by the Company shall be taken consistent with the requirement under
Section 423(b)(5) of the Code that all Participants granted Purchase Rights pursuant to an Offering shall have the same rights and privileges within the meaning of such section. 

        3.4   Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or officers
or employees of the Participating Company Group, members of the Board and any officers or employees of the Participating Company Group to whom authority to act for the Board or the Company is
delegated shall be indemnified by the Company against all reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any action, suit or
proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right
granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for
gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer
to the Company, in writing, the opportunity at its own expense to handle and defend the same. 

        4.    SHARES SUBJECT TO PLAN.    

        4.1   Maximum Number of Shares Issuable. Subject to adjustment as provided in Section 4.2, the maximum aggregate number
of shares of Stock that may be issued under the Plan shall be Two Million (2,000,000) (or such lesser number after adjustment to reflect any stock split which may be completed by the Company prior to
the initial registration by the Company of its Stock under Section 12 of the Exchange Act), cumulatively increased on January 1, 2005 and each January 1 thereafter until and
including January 1, 2013 (the "Annual Increase") by the lesser of (a) 1% of the number of
shares of Stock issued and outstanding on the immediately preceding December 31, (b) 600,000 shares (or such lesser number after adjustment to reflect any stock split which may be
completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act), or (c) such lesser number of shares determined by the Board,
and shall consist of authorized but unissued or reacquired shares of Stock, or any combination thereof. If an outstanding Purchase Right for any reason expires or is terminated or canceled, the 

4

 

shares
of Stock allocable to the unexercised portion of that Purchase Right shall again be available for issuance under the Plan. 

        4.2   Adjustments for Changes in Capital Structure. In the event of any stock dividend, stock split, reverse stock split,
recapitalization, combination, reclassification or similar change in the capital structure of the Company, or in the event of any merger (including a merger effected for the purpose of changing the
Company's domicile), sale of assets or other reorganization in which the Company is a party, appropriate adjustments shall be made in the number and class of shares subject to the Plan, the Annual
Increase, the limit on the shares which may be purchased by any Participant during an Offering (as described in Section 8.1) and each Purchase Right, and in the Purchase Price. If a majority of
the shares of the same class as the shares subject to outstanding Purchase Rights are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares
of another corporation (the "New Shares"), the Board may unilaterally amend the outstanding Purchase
Rights to provide that such Purchase Rights are exercisable for New Shares. In the event of any such amendment, the number of shares subject to, and the Purchase Price of, the outstanding Purchase
Rights shall be adjusted in a fair and equitable manner, as determined by the Board, in its discretion. Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to
this Section 4.2 shall be rounded down to the nearest whole number, and in no event may the Purchase Price be decreased to an amount less than the par value, if any, of the stock subject to the
Purchase Right. The adjustments determined by the Board pursuant to this Section 4.2 shall be final, binding and conclusive. 

        5.    ELIGIBILITY.    

        5.1   Employees Eligible to Participate. Each Employee of a Participating Company is eligible to participate in the Plan and
shall be deemed an Eligible Employee, except the following: 

        (a)   Any
Employee who is customarily employed by the Participating Company Group for less than twenty (20) hours per week; or 

        (b)   Any
Employee who is customarily employed by the Participating Company Group for not more than five (5) months in any calendar year. 

        5.2   Exclusion of Certain Stockholders. Notwithstanding any provision of the Plan to the contrary, no Employee shall be
treated as an Eligible Employee and granted a Purchase Right under the Plan if, immediately after such grant, the Employee would own or hold options to purchase stock of the Company or of any Parent
Corporation or Subsidiary Corporation possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of such corporation, as determined in accordance with
Section 423(b)(3) of the Code. For purposes of this Section 5.2, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of such
Employee. 

        5.3   Determination by Company. The Company shall determine in good faith and in the exercise of its discretion whether an
individual has become or has ceased to be an Employee or an Eligible Employee and the effective date of such individual's attainment or termination of such status, as the case may be. For purposes of
an individual's participation in or other rights, if any, under the Plan as of the time of the Company's determination, all such determinations by the Company shall be final, binding and conclusive,
notwithstanding that the Company or any court of law or governmental agency subsequently makes a contrary determination. 

        6.    OFFERINGS.    

        The
Plan shall be implemented on and after the Effective Date by sequential Offerings of approximately six (6) months duration or such other duration as the Board shall determine
(an "Offering Period"); provided, however, that the first Offering Period (the  "Initial
Offering Period") shall commence on the Effective Date and end on March 31, 2004.
Subsequent Offering Periods shall 

5

 

commence
on or about April 1 and October 1 of each year and end on or about September 30 and March 31, respectively, occurring thereafter. Notwithstanding the foregoing,
the Board may establish a different duration for one or more Offering Periods or different commencing or ending dates for such Offering Periods; provided, however, that no Offering Period may have a
duration exceeding twenty-seven (27) months. If the first or last day of an Offering Period is not a day on which the national securities exchanges or Nasdaq Stock Market are open for trading,
the Company shall specify the trading day that will be deemed the first or last day, as the case may be, of the Offering Period. 

        7.    PARTICIPATION IN THE PLAN.    

        7.1   Initial Participation.

        (a)   Generally. Except as provided in Section 7.1(b), an Eligible Employee may become a Participant in an Offering
Period by delivering a properly completed Subscription Agreement to the office designated by the Company not later than the close of business for such office on the Subscription Date established by
the Company for that Offering Period. An Eligible Employee who does not deliver a properly completed Subscription Agreement to the Company's designated office on or before the Subscription Date for an
Offering Period shall not participate in the Plan for that Offering Period or for any subsequent Offering Period unless the Eligible Employee subsequently delivers a properly completed Subscription
Agreement to the appropriate office of the Company on or before the Subscription Date for such subsequent Offering Period. An Employee who becomes an Eligible Employee after the Offering Date of an
Offering Period shall not be eligible to participate in that Offering Period but may participate in any subsequent Offering Period provided the Employee is still an Eligible Employee as of the
Offering Date of such subsequent Offering Period. 

        (b)   Automatic Participation in Initial Offering Period. Notwithstanding Section 7.1(a), each Employee who is an
Eligible Employee as of the Effective Date shall automatically become a Participant in the Initial Offering Period and shall be granted automatically a Purchase Right consisting of an option to
purchase the lesser of (a) a number of whole shares of Stock determined in accordance with Section 8 or (b) a number of whole shares of Stock determined by dividing fifteen
percent (15%) of such Participant's Compensation paid during the Initial Offering Period by the Purchase Price applicable to the Initial Offering Period. The Company shall not require or permit any
Participant to deliver a Subscription Agreement for participation in the Initial Offering Period; provided, however, that following the Registration Date a Participant may deliver a Subscription
Agreement to the office designated by the Company if the Participant wishes to change the terms of the Participant's participation in the Initial Offering Period. Such changes may include, for
example, an election to commence payroll deductions in accordance with Section 10. 

        7.2   Continued Participation.

        (a)   Generally. Except as provided in Section 7.2(b), a Participant shall automatically participate in the next
Offering Period commencing immediately after the Purchase Date of each Offering Period in which the Participant participates provided that the Participant remains an Eligible Employee on the Offering
Date of the new Offering Period and has not either (a) withdrawn from the Plan pursuant to Section 12.1 or (b) terminated employment as provided in Section 13. A
Participant who may automatically participate in a subsequent Offering Period, as provided in this Section, is not required to deliver any additional Subscription Agreement for the subsequent Offering
Period in order to continue participation in the Plan. However, a Participant may deliver a new Subscription Agreement for a subsequent Offering Period in accordance with the procedures set forth in
Section 7.1(a) if the Participant desires to change any of the elections contained in the Participant's then effective Subscription Agreement. 

6

 

        (b)   Participation in Subsequent Offering Period. Notwithstanding Section 7.2(a), an Eligible Employee who was
automatically enrolled in the Initial Offering Period and who wishes to participate in an Offering Period which begins after the Initial Offering Period shall deliver a Subscription Agreement in
accordance with Section 7.1(a) no earlier than the Registration Date and no later than the Subscription Date for such Offering Period, unless such Employee was a Participant in the Initial
Offering Period who delivered a Subscription Agreement with respect to the Initial Offering Period as provided in Section 7.1(b). 

        8.    RIGHT TO PURCHASE SHARES.    

        8.1   Grant of Purchase Right. Except as provided in Section 7.1 with respect to the Initial Offering Period or as set
forth below (or otherwise specified by the Board prior to the Offering Date), on the Offering Date of each Offering Period, each Participant in such Offering Period shall be granted automatically, on
the Offering Date, a Purchase Right consisting of an option to purchase the lesser of (a) that number of whole shares of Stock determined by dividing Twelve Thousand Five Hundred Dollars
($12,500) by the Fair Market Value of a share of Stock on such Offering Date or (b) five thousand (5,000) shares of Stock (or such lesser number after adjustment to reflect any stock split
which may be completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act). No Purchase Right shall be granted on an Offering Date
to any person who is not, on such Offering Date, an Eligible Employee. 

        8.2   Calendar Year Purchase Limitation. Notwithstanding any provision of the Plan to the contrary, no Participant shall be
granted a Purchase Right which permits his or her right to purchase shares of Stock under the Plan to accrue at a rate which, when aggregated with such Participant's rights to purchase shares under
all other employee stock purchase plans of a Participating Company intended to meet the requirements of Section 423 of the Code, exceeds Twenty-Five Thousand Dollars ($25,000) in
Fair Market Value (or such other limit, if any, as may be imposed by the Code) for each calendar year in which such Purchase Right is outstanding at any time. For purposes of the preceding sentence,
the Fair Market Value of shares purchased during a given Offering Period shall be
determined as of the Offering Date for such Offering Period. The limitation described in this Section shall be applied in conformance with applicable regulations under Section 423(b)(8) of the
Code. 

        9.    PURCHASE PRICE.    

        The
Purchase Price at which each share of Stock may be acquired in an Offering Period upon the exercise of all or any portion of a Purchase Right shall be established by the Board;
provided, however, that the Purchase Price on each Purchase Date shall not be less than eighty-five percent (85%) of the lesser of (a) the Fair Market Value of a share of Stock on
the Offering Date of the Offering Period or (b) the Fair Market Value of a share of Stock on the Purchase Date. 

        10.    ACCUMULATION OF PURCHASE PRICE THROUGH PAYROLL DEDUCTION.    

        Except
as provided in Section 11.1(b) with respect to the Initial Offering Period, shares of Stock acquired pursuant to the exercise of all or any portion of a Purchase Right may
be paid for only by means of payroll deductions from the Participant's Compensation accumulated during the Offering Period for which such Purchase Right was granted, subject to the following: 

        10.1     Amount of Payroll Deductions. Except as otherwise provided herein, the amount to be deducted under the
Plan from a Participant's Compensation on each payday during an Offering Period shall be determined by the Participant's Subscription Agreement. The Subscription Agreement shall set forth the
percentage of the Participant's Compensation to be deducted on each payday during an Offering Period in whole percentages of not less than one percent (1%) (except as a result of an election pursuant
to Section 10.3 to stop payroll deductions effective 

7

 

following
the first payday during an Offering) or more than fifteen percent (15%). The Board may change the foregoing limits on payroll deductions effective as of any Offering Date. 

        10.2     Commencement of Payroll Deductions. Payroll deductions shall commence on the first payday following the
Offering Date and shall continue to the end of the Offering Period unless sooner altered or terminated as provided herein; provided, however, that with respect to the Initial Offering Period, payroll
deductions shall commence as soon as practicable following the Company's receipt of the Participant's Subscription Agreement (delivered no earlier than the Registration Date), if any. 

        10.3     Election to Change or Stop Payroll Deductions. During an Offering Period, a Participant may elect to
increase or decrease the rate of or to stop deductions from his or her Compensation by delivering to
the Company's designated office an amended Subscription Agreement authorizing such change on or before the "Change Notice Date." The "Change Notice
Date" shall be a date prior to the beginning of the first pay period for which such election is to be effective as established by the Company from time
to time and announced to the Participants. A Participant who elects, effective following the first payday of an Offering Period, to decrease the rate of his or her payroll deductions to zero percent
(0%) shall nevertheless remain a Participant in the current Offering Period unless such Participant withdraws from the Plan as provided in Section 12.1. 

        10.4     Administrative Suspension of Payroll Deductions. The Company may, in its sole discretion, suspend a
Participant's payroll deductions under the Plan as the Company deems advisable to avoid accumulating payroll deductions in excess of the amount that could reasonably be anticipated to purchase the
maximum number of shares of Stock permitted (a) under the Participant's Purchase Right or (b) during a calendar year under the limit set forth in Section 8.2. Payroll deductions
shall be resumed at the rate specified in the Participant's then effective Subscription Agreement at the beginning of the next Offering Period, unless the Participant has either withdrawn from the
Plan as provided in Section 12.1 or has ceased to be an Eligible Employee. 

        10.5     Participant Accounts. Individual bookkeeping accounts shall be maintained for each Participant. All
payroll deductions from a Participant's Compensation (and other amounts received from the Participant in the Initial Offering Period) shall be credited to such Participant's Plan account and shall be
deposited with the general funds of the Company. All such amounts received or held by the Company may be used by the Company for any corporate purpose. 

        10.6     No Interest Paid. Interest shall not be paid on sums deducted from a Participant's Compensation pursuant
to the Plan or otherwise credited to the Participant's Plan account. 

        11.    PURCHASE OF SHARES.    

        11.1     Exercise of Purchase Right.

        (a)   Generally. Except as provided in Section 11.1(b), on each Purchase Date of an Offering Period, each Participant
who has not withdrawn from the Plan and whose participation in the Offering has not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the exercise of the
Participant's Purchase Right the number of whole shares of Stock determined by dividing (a) the total amount of the Participant's payroll deductions accumulated in the Participant's Plan
account during the Offering Period and not previously applied toward the purchase of Stock by (b) the Purchase Price. However, in no event shall the number of shares purchased by the
Participant during an Offering Period exceed the number of shares subject to the Participant's Purchase Right. No shares of Stock shall be purchased on a Purchase Date on behalf of a Participant whose
participation in the Offering or the Plan has terminated before such Purchase Date. 

8

 

        (b)   Purchase in Initial Offering Period. Notwithstanding Section 11.1(a), on the Purchase Date of the Initial Offering
Period, each Participant who has not withdrawn from the Plan and whose participation in such Offering has not otherwise terminated before such Purchase Date shall automatically acquire pursuant to the
exercise of the Participant's Purchase Right (i) a number of whole shares of Stock determined in accordance with Section 11.1(a) to the extent of the total amount of the Participant's
payroll deductions accumulated in the Participant's Plan account during the Initial Offering Period, if any, and not previously applied toward the purchase of Stock and (ii) such additional
shares of Stock (not exceeding in the aggregate the Participant's Purchase Right) as determined in accordance with an Initial Offering Period Cash Exercise Notice delivered to the office designated by
the Company no earlier than the Registration Date and not later than the close of business for such office on the business day immediately preceding the Purchase Date or such earlier date as the
Company shall establish, accompanied by payment in cash or by check of the Purchase Price for such additional shares. However, in no event shall the number of shares purchased by a Participant during
the Initial Offering Period exceed the number of shares subject to the Participant's Purchase Right. In addition, if a Participant delivers a Subscription Agreement to the Company after the
Registration Date, the Participant may not elect to exercise a Purchase Right pursuant to an Initial Offering Period Cash Exercise Notice in an amount which exceeds fifteen percent (15%) of the
Compensation paid such Participant prior to the effectiveness of such initial Subscription Agreement. The Company shall refund to the Participant in accordance with Section 11.4 any excess
Purchase Price payment received from the Participant. 

        11.2     Pro Rata Allocation of Shares. If the number of shares of Stock which might be purchased by all
Participants in the Plan on a Purchase Date exceeds the number of shares of Stock available in the Plan as provided in Section 4.1, the Company shall make a pro rata allocation of the remaining
shares in as uniform a manner as practicable and as the Company determines to be equitable. Any fractional share resulting from such pro rata allocation to any Participant shall be disregarded. 

        11.3     Delivery of Certificates. As soon as practicable after each Purchase Date, the Company shall arrange the
delivery to each Participant of a certificate representing the shares acquired by the Participant on such Purchase Date; provided that the Company may deliver such shares to a broker designated by the
Company that will hold such shares for the benefit of the Participant. Shares to be delivered to a Participant under the Plan shall be registered in the name of the Participant, or, if
requested by the Participant, in the name of the Participant and his or her spouse, or, if applicable, in the names of the heirs of the Participant. 

        11.4     Return of Cash Balance. Any cash balance remaining in a Participant's Plan account following any Purchase
Date shall be refunded to the Participant as soon as practicable after such Purchase Date. However, if the cash balance to be returned to a Participant pursuant to the preceding sentence is less than
the amount that would have been necessary to purchase an additional whole share of Stock on such Purchase Date, the Company may retain the cash balance in the Participant's Plan account to be applied
toward the purchase of shares of Stock in the subsequent Offering Period, as the case may be. 

        11.5     Tax Withholding. At the time a Participant's Purchase Right is exercised, in whole or in part, or at the
time a Participant disposes of some or all of the shares of Stock he or she acquires under the Plan, the Participant shall make adequate provision for the federal, state, local and foreign tax
withholding obligations, if any, of the Participating Company Group which arise upon exercise of the Purchase Right or upon such disposition of shares, respectively. The Participating Company Group
may, but shall not be obligated to, withhold from the Participant's compensation the amount necessary to meet such withholding obligations. 

        11.6     Expiration of Purchase Right. Any portion of a Participant's Purchase Right remaining unexercised after
the end of the Offering Period to which the Purchase Right relates shall expire immediately upon the end of the Offering Period. 

9

  

        11.7     Provision of Reports and Stockholder Information to Participants. Each Participant who has exercised all
or part of his or her Purchase Right shall receive, as soon as practicable after the Purchase Date, a report of such Participant's Plan account setting forth the total amount credited to his or her
Plan account prior to such exercise, the number of shares of Stock purchased, the Purchase Price for such shares, the date of purchase and the cash balance, if any, remaining immediately after such
purchase that is to be refunded or retained in the Participant's Plan account pursuant to Section 11.4. The report required by this Section may be delivered in such form and by such means,
including by electronic transmission, as the Company may determine. In addition, each Participant shall be provided information concerning the Company equivalent to that information provided generally
to the Company's common stockholders. 

        12.    WITHDRAWAL FROM PLAN OR OFFERING.    

        12.1     Voluntary Withdrawal from the Plan. A Participant may withdraw from the Plan by signing and delivering to
the Company's designated office a written notice of withdrawal on a form provided by the Company for this purpose. Such withdrawal may be elected at any time prior to the end of an Offering Period;
provided, however, that if a Participant withdraws from the Plan after a Purchase Date, the withdrawal shall not affect shares of Stock acquired by the Participant on such Purchase Date. A Participant
who voluntarily withdraws from the Plan is prohibited from resuming participation in the Plan in the same Offering from which he or she withdrew, but may participate in any subsequent Offering by
again satisfying the requirements of Sections 5 and 7.1. The Company may impose, from time to time, a requirement that the notice of withdrawal from the Plan be on file with the Company's designated
office for a reasonable period prior to the effectiveness of the Participant's withdrawal. 

        12.2     Return of Payroll Deductions. Upon a Participant's voluntary withdrawal from the Plan pursuant to
Section 12.1, the Participant's accumulated Plan account balance which has not been applied toward the purchase of shares of Stock shall be refunded to the Participant as soon as practicable
after the withdrawal, without the payment of any interest, and the Participant's interest in the Plan or the Offering, as applicable, shall terminate. Such amounts to be refunded in accordance with
this Section may not be applied to any other Offering under the Plan. 

        13.    TERMINATION OF EMPLOYMENT OR ELIGIBILITY.    

        Upon
a Participant's ceasing, prior to a Purchase Date, to be an Employee of the Participating Company Group for any reason, including retirement, disability or death, or upon the
failure of a Participant to remain an Eligible Employee, the Participant's participation in the Plan shall terminate
immediately. In such event, the Participant's Plan account balance which has not been applied toward the purchase of shares shall, as soon as practicable, be returned to the Participant or, in the
case of the Participant's death, to the Participant's beneficiary designated in accordance with Section 20, if any, or legal representative, and all of the Participant's rights under the Plan
shall terminate. Interest shall not be paid on sums returned pursuant to this Section 13. A Participant whose participation has been so terminated may again become eligible to participate in
the Plan by satisfying the requirements of Sections 5 and 7.1. 

        14.    CHANGE IN CONTROL.    

        14.1     Definitions.

        (a)   An
"Ownership Change Event" shall be deemed to have occurred if any of
the following occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty
percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the
assets of the Company; or (iv) a liquidation or dissolution of the Company. 

10

 

        (b)   A  "Change in Control" shall mean an Ownership Change
Event or a series of
related Ownership Change Events (collectively, the "Transaction") wherein the stockholders of the
Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the Company's voting stock immediately
before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in the case
of a Transaction described in Section 14.1(a)(iii), the corporation or other business entity to which the assets of the Company were transferred (the  "Transferee"), as the case may be. For purposes of the preceding sentence, indirect beneficial ownership
shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the
case may be, either directly or through one or more subsidiary corporations or other business entities. The Board shall have the right to determine whether multiple sales or exchanges of the voting
securities of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive. 

        14.2     Effect of Change in Control on Purchase Rights. In the event of a Change in Control, the surviving,
continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the "Acquiring
Corporation"), may, without the consent of any Participant, assume the Company's rights and obligations under the Plan. If the Acquiring Corporation
elects not to assume the Company's rights and obligations under the Plan, the Purchase Date of the then current Offering
Period shall be accelerated to a date before the date of the Change in Control specified by the Board, but the number of shares of Stock subject to outstanding Purchase Rights shall not be adjusted.
All Purchase Rights which are neither assumed by the Acquiring Corporation in connection with the Change in Control nor exercised as of the date of the Change in Control shall terminate and cease to
be outstanding effective as of the date of the Change in Control. 

        15.    NONTRANSFERABILITY OF PURCHASE RIGHTS.    

        Neither
payroll deductions or other amounts credited to a Participant's Plan account nor a Participant's Purchase Right may be assigned, transferred, pledged or otherwise disposed of in
any manner other than as provided by the Plan or by will or the laws of descent and distribution. (A beneficiary designation pursuant to Section 20 shall not be treated as a disposition for
this purpose.) Any such attempted assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from the Plan as
provided in Section 12.1. A Purchase Right shall be exercisable during the lifetime of the Participant only by the Participant. 

        16.    COMPLIANCE WITH SECURITIES LAW.    

        The
issuance of shares under the Plan shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities. A Purchase Right
may not be exercised if the issuance of shares upon such exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the
requirements of any securities exchange or market system upon which the Stock may then be listed. In addition, no Purchase Right may be exercised unless (a) a registration statement under the
Securities Act of 1933, as amended, shall at the time of exercise of the Purchase Right be in effect with respect to the shares issuable upon exercise of the Purchase Right, or (b) in the
opinion of legal counsel to the Company, the shares issuable upon exercise of the Purchase Right may be issued in accordance with the terms of an applicable exemption from the registration
requirements of said Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company's legal counsel to be necessary to the lawful
issuance and sale of any shares under the Plan shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such 

11

 

requisite
authority shall not have been obtained. As a condition to the exercise of a Purchase Right, the Company may require the Participant to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation, and to make any representation or warranty with respect thereto as may be requested by the Company. 

        17.    RIGHTS AS A STOCKHOLDER AND EMPLOYEE.    

        A
Participant shall have no rights as a stockholder by virtue of the Participant's participation in the Plan until the date of the issuance of a certificate for the shares purchased
pursuant to the exercise of the Participant's Purchase Right (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment
shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 4.2. Nothing herein shall
confer upon a Participant any right to continue in the employ of the Participating Company Group or interfere in any way with any right of the Participating Company Group to terminate the
Participant's employment at any time. 

        18.    LEGENDS.    

        The
Company may at any time place legends or other identifying symbols referencing any applicable federal, state or foreign securities law restrictions or any provision convenient in the
administration of the Plan on some or all of the certificates representing shares of Stock issued under the Plan. The Participant shall, at the request of the Company, promptly present to the Company
any and all certificates representing shares acquired pursuant to a Purchase Right in the possession of the Participant in order to carry out the provisions of this Section. Unless otherwise specified
by the Company, legends placed on such certificates may include but shall not be limited to the following: 

        "THE
SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE REGISTERED HOLDER UPON THE PURCHASE OF SHARES UNDER AN EMPLOYEE STOCK PURCHASE PLAN AS DEFINED IN SECTION
423 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. THE TRANSFER AGENT FOR THE SHARES EVIDENCED HEREBY SHALL NOTIFY THE CORPORATION IMMEDIATELY OF ANY TRANSFER OF THE SHARES BY THE REGISTERED HOLDER
HEREOF. THE REGISTERED HOLDER SHALL HOLD ALL SHARES PURCHASED UNDER THE PLAN IN THE REGISTERED HOLDER'S NAME (AND NOT IN THE NAME OF ANY NOMINEE)." 

        19.    NOTIFICATION OF DISPOSITION OF SHARES.    

        The
Company may require the Participant to give the Company prompt notice of any disposition of shares acquired by exercise of a Purchase Right. The Company may require that until such
time as a Participant disposes of shares acquired upon exercise of a Purchase Right, the Participant shall hold all such shares in the Participant's name (or, if elected by the Participant, in the
name of the Participant and his or her spouse but not in the name of any nominee) until the later of two years after the date of grant of such Purchase Right or one year after the date of exercise of
such Purchase Right. The Company may direct that the certificates evidencing shares acquired by exercise of a Purchase Right refer to such requirement to give prompt notice of disposition. 

        20.    DESIGNATION OF BENEFICIARY.    

        20.1     Designation Procedure. A Participant may file a written designation of a beneficiary who is to
receive (a) shares and cash, if any, from the Participant's Plan account if the Participant dies subsequent to a Purchase Date but prior to delivery to the Participant of such shares and cash
or (b) cash, if any, from the Participant's Plan account if the Participant dies prior to the exercise of the Participant's Purchase Right. If a married Participant designates a beneficiary
other than the Participant's spouse, the effectiveness of such designation shall be subject to the consent of the 

12

 

Participant's
spouse. A Participant may change his or her beneficiary designation at any time by written notice to the Company. 

        20.2     Absence of Beneficiary Designation. If a Participant dies without an effective designation pursuant to
Section 20.1 of a beneficiary who is living at the time of the Participant's death, the Company shall deliver any shares or cash credited to the Participant's Plan account to the Participant's
legal representative. 

        21.    NOTICES.    

        All
notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by
the Company at the location, or by the person, designated by the Company for the receipt thereof. 

        22.    AMENDMENT OR TERMINATION OF THE PLAN.    

        The
Board may at any time amend or terminate the Plan, except that (a) no such amendment or termination shall affect Purchase Rights previously granted under the Plan unless
expressly provided by the Board and (b) no such amendment or termination may adversely affect a Purchase Right previously granted under the Plan without the consent of the Participant, except
to the extent permitted by the Plan or as may be necessary to qualify the Plan as an employee stock purchase plan pursuant to Section 423 of the Code or to comply with any applicable law,
regulation or rule. In addition, an amendment to the Plan must be approved by the stockholders of the Company within twelve (12) months of the adoption of such amendment if such amendment would
authorize the sale of more shares than are then authorized for issuance under the Plan or would change the definition of the corporations that may be designated by the Board as Participating
Companies. 

13

PLAN HISTORY  

	October 29, 2003	 	Board of Directors of Kintera, Inc., a Delaware corporation (the "Company") adopts Plan effective as of the closing of the initial public offering (the "IPO") of the Company with an initial reserve of Two Million
(2,000,000) (or such lesser number after adjustment to reflect any stock split which may be completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act). The number of shares of
stock available for issuance under the Plan shall be cumulatively increased on January 1, 2005 and each January 1 thereafter until and including January 1, 2013 by the lesser of (a) 1% of the number of shares of Stock issued and
outstanding on the immediately preceding December 31, (b) 600,000 shares (or such lesser number after adjustment to reflect any stock split which may be completed by the Company prior to the initial registration by the Company of its Stock
under Section 12 of the Exchange Act), or (c) such lesser number of shares determined by the Board.
	

 	
 	

 
	October 30, 2003	 	Shareholders of the Company approve Plan effective as of the closing of the IPO, with an initial reserve of Two Million (2,000,000) (or such lesser number after adjustment to reflect any stock split which may be completed
by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act). The number of shares of stock available for issuance under the Plan shall be cumulatively increased on January 1, 2005 and
each January 1 thereafter until and including January 1, 2013 by the lesser of (a) 1% of the number of shares of Stock issued and outstanding on the immediately preceding December 31, (b) 600,000 shares (or such lesser number
after adjustment to reflect any stock split which may be completed by the Company prior to the initial registration by the Company of its Stock under Section 12 of the Exchange Act), or (c) such lesser number of shares determined by the
Board.
	

 	
 	

 
	                    , 2003	 	Effective Date of the Plan (i.e., date on which Initial Offering Period commenced).

  

 
 
 

KINTERA, INC.
  2003 EMPLOYEE STOCK PURCHASE PLAN
  SUBSCRIPTION AGREEMENT    
    

	NAME (Please print):	 	 

	 	 	(Last)	 	(First)	 	(Middle)

	

 	

 	

 
	 	TM Original application for the Offering Period beginning (date):	 

	

 	

 	

 
	 	TM Stop payroll deductions effective with the pay period ending (date):	 

	

 	

 	

 
	 	TM Change of beneficiary.	 

I. SUBSCRIPTION  

        I elect to participate in the 2003 Employee Stock Purchase Plan (the "Plan") of Kintera, Inc. (the
"Company") and to subscribe to purchase shares of the Company's Common Stock in accordance with this Subscription Agreement and the Plan. 

        I
authorize payroll deductions of                        percent (in whole percentages not less than 1%, unless an election to stop
deductions is being made, or more than 15%) of my
"Compensation" on each payday throughout the "Offering Period" in accordance with the Plan. I understand
that these payroll deductions will be accumulated for the purchase of shares of Common Stock at the applicable purchase price determined in accordance with the Plan. Except as otherwise provided by
the Plan, I will automatically purchase shares on each "Purchase Date" unless I withdraw from the Plan by giving written notice on a form provided by
the Company or unless my eligibility or employment terminates. 

        I
understand that I will automatically participate in each subsequent Offering that commences immediately after the last day of an Offering in which I am participating until I withdraw
from the Plan by giving written notice on a form provided by the Company or my eligibility or employment terminates. 

        Shares
I purchase under the Plan should be issued in the name(s) set forth below. (Shares may be issued in the participant's name alone or together with the participant's spouse as
community property or in joint tenancy.) 

	

 	

 	

 
	 	NAME(S) (please print):	 

	

 	

 	

 
	 	ADDRESS:	 

	

 	

 	

 
	 	MY SOCIAL SECURITY NUMBER:	 

        I agree to make adequate provision for the federal, state, local and foreign tax withholding obligations, if any, which arise upon my purchase of shares under the
Plan and/or my disposition of shares. The Company may withhold from my compensation the amount necessary to meet such withholding obligations. 

        I
agree that, unless otherwise permitted by the Company, until I dispose of shares I purchase under the Plan, I will hold such shares in the name(s) entered above (and not in the name of
any nominee) until the later of (i) two years after the first day of the Offering Period in which I purchased the shares and (ii) one year after the Purchase Date on which I purchased
the shares. This restriction only applies to the name(s) in which shares are held and does not affect my ability to dispose of Plan shares. 

        I agree that I will notify the Chief Financial Officer of the Company in writing within 30 days after any sale, gift, transfer or other disposition of any
kind prior to the end of the periods referred to  

1

 

 in the preceding paragraph (a "Disqualifying Disposition") of any shares I purchased under the Plan. If I do not respond within 30 days of the date of a Disqualifying Disposition Survey
delivered to me by certified mail, the Company is authorized to treat my nonresponse as my notice to the Company of a Disqualifying Disposition and to compute and report to the Internal Revenue
Service the ordinary income I must recognize upon such Disqualifying Disposition.

II. BENEFICIARY DESIGNATION  

        In the event of my death, I designate the following as my beneficiary to receive all payments and shares then due me under the Plan: 

	 	 	BENEFICIARY'S NAME (please print):	 	 

	 	 	 	 	(First)	 	(Middle)	 	(Last)

	

 	

 	

 	

 	

 
	 	RELATIONSHIP:	 
	SOC. SEC. NO.:	 

	

 	

 	

 	

 	

 
	 	ADDRESS:	 

        If you are married and your beneficiary is someone other than your spouse, then your spouse must sign and date this form as indicated below. If you are not
married when you designate a beneficiary and you later become married, or if you later become married to a different person, the beneficiary designation previously made will be automatically revoked.
Payments and shares then due you upon your death will be delivered to your then spouse unless you have completed a new beneficiary designation and it is consented to by your then spouse. 

III. CONSENT OF SPOUSE  

        I am the spouse of                        . I consent to the above
designation of a beneficiary other than me to receive payments and shares due my spouse under the Plan.
 

	Date:	 
	 	 
 Signature of Participant's Spouse

IV. PARTICIPANT DECLARATION  

        Any election I have made on this form revokes all prior elections with regard to this form. 

        I
am familiar with the provisions of the Plan and agree to participate in the Plan subject to all of its provisions. I understand that the Board of Directors of the Company reserves the
right to terminate the Plan or to amend the Plan and my right to purchase stock under the Plan to the extent provided by the Plan. I understand that the effectiveness of this Subscription Agreement is
dependent upon my eligibility to participate in the Plan. 

	Date:	 
	 	 
 Signature of Participant

2

KINTERA, INC.

2003 EMPLOYEE STOCK PURCHASE PLAN

NOTICE OF WITHDRAWAL  

	NAME (Please print):	 	 

	 	 	(Last)	 	(First)	 	(Middle)

        I elect to withdraw from the Kintera, Inc. 2003 Employee Stock Purchase Plan (the "Plan") and the Offering
which began on (date)                        and in which I am participating (the "Current
Offering"). 

        I
elect to terminate immediately my participation in the Current Offering and the Plan. I request that the Company cease all further payroll deductions under the Plan (provided I have
given sufficient notice before the next payday). My payroll deductions not previously used to purchase shares should not be used to purchase shares in the Current Offering. Instead, I request that all
such amounts be paid to me as soon as practicable. I understand that this election immediately terminates my interest in the Current Offering and in the Plan. 

        I
understand that I am terminating my interest in the Plan and that no further payroll deductions will be made (provided I have given sufficient notice before the next payday), unless I
elect to become a participant in another Offering by filing a new Subscription Agreement with the Company. I understand that I will receive no interest on the amounts paid to me from my Plan account,
and that I may not apply such amounts to any other Offering under the Plan or any other employee stock purchase plan of the Company. 

	

 	

 	
 	

 	

 
	Date:	 
	 	Signature:	 

QuickLinks

KINTERA, INC. 2003 EMPLOYEE STOCK PURCHASE PLAN

Form of Subscription Agreement

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