Document:

exv4w1

 

EXHIBIT
4.1

ENDORSEMENT

     I, Mitchell C. Hill, hereby agree with, and as an employee of, Avanade Inc. (the “Company”)
that I will vote all of my shares of the Company’s common stock in accordance with the following
provisions:

	 	1)	 	in the case of any matter being voted on by the holders of the Company’s common stock
and Series A Preferred Stock, together as a single class, that requires the affirmative
vote of the holders of a majority of the shares present and entitled to vote, I will act
to ensure that my shares of the Company’s common stock then-held, if any, are represented
in person or by proxy so that a quorum is present for the transaction of such business,
but I will not cast any votes for my shares of common stock on such matters and will take
such action as to ensure that voting instructions for my shares are not otherwise
submitted by a trust, a broker or other person or entity on my behalf;
	 
	 	2)	 	in the case of any matter being voted on by the holders of the Company’s common stock
and Series A Preferred Stock, together as a single class, that requires either (i) the
affirmative vote of the holders of shares present and entitled to vote of a higher
percentage of shares than a majority or (ii) the affirmative vote of the holders of a
minimum percentage of such shares outstanding, I will act to ensure that my shares of the
Company’s common stock then-held, if any, are represented in person or by proxy so that a
quorum is present for the transaction of such business and voted in proportion to the
votes cast by the combined class; and
	 
	 	3)	 	in the case of any matter that the holders of the Company’s common stock are entitled
to vote on as a separate class or series, alone or together with another class or series
of the Company’s capital stock other than the Series A Preferred Stock, under the
Washington Business Corporation Act, Title 23B of the Revised Code of Washington, or the
Company’s articles of incorporation or bylaws then in effect, I will act to ensure that my
shares of the Company’s common stock then- held, if any, are represented in person or by
proxy so that a quorum is present for the transaction of such business and voted in
proportion to the votes cast by the other holders of the Company’s common stock.

     I further agree that this endorsement will continue in effect until the earlier of (i) the
termination of the Avanade Inc. Employee Stockholders Agreement (the “Agreement”), dated as of
August 4, 2000, among the Company, the holders of shares of Series A Preferred Stock, and the
individuals listed on Attachment A thereto, or (ii) a determination by the Company’s Board of
Directors that my adherence to the terms of Section 1.1 of the Agreement would be in the Company’s
best interests. I acknowledge that I otherwise continue to be bound by the terms and conditions of
the Agreement, other than those set forth in Section 1.1, as an Employee under the Agreement.

 

 

     This endorsement may not be amended, modified or terminated without the consent of the
Company’s Board of Directors.

	 	 	 	 	 
	 	MITCHELL C. HILL

 	 
	Date: February 14, 2008  	/s/
 Mitchell C. Hill
 	 
	 	 	 	 
	 	 	 	 
	 
	 	AVANADE INC.

 	 
	 	By:  	/s/ Dennis K. Knapp
 	 
	 	 	Dennis K. Knapp  	 
	 	 	Chief Financial Officerexv10w17

 

Exhibit 10.17

BROOKSIDE TECHNOLOGY HOLDINGS CORP

2007 STOCK OPTION PLAN

I. Purpose.

     The purpose of this Brookside Technology Holdings Corp Stock Option Plan is to advance the
interests of Brookside Technology Holdings Corp, a corporation organized under the laws of Texas
(the “Company”) by providing eligible key employees, consultants and non-employee directors of the
Company (as designated pursuant to Section 3 below) an opportunity to acquire (or increase) shares
of common stock of the Company, which thereby will create stronger incentives to expend maximum
effort for the growth and success of the Company and will encourage such eligible individuals to
remain in the employ or service of the Company.

     The 2007 Stock Option Plan was approved by the Board of Directors on April 19, 2007 and by its
stockholders on June 21, 2007.

II. Definitions.

          The following terms shall have the meanings shown:

     2.1 “Board of Directors” shall mean the Board of Directors of the Company.

     2.2 “Change of Control” shall mean any event described in Section 6.1.

     2.3 “Code” shall mean the Internal Revenue Code of 1986, as the same shall be amended from
time to time.

     2.4 “Common Stock” shall mean shares of the common stock of the Company, no par value, except
as provided in Section 7.2 of the Plan.

     2.5 “Consultant” shall mean any individual who performs valuable services for pay for the
Company (or any Subsidiary) on a regular and on-going basis who is not an employee of the Company.

     2.6 “Date of Grant” shall mean the date specified by the Board of Directors on which a grant
of Options, or a grant or sale of Restricted Stock, shall become effective, which shall not be
earlier than the date on which the Board of Directors takes action with respect thereto.

     2.7 “Fair Market Value” shall mean the fair market value of a share of Common Stock as
determined by the Board of Directors in good faith, as reflected in the minutes of the Board of
Directors. For periods in which there is no public market for the Common Stock, the Board of
Directors may rely in good faith upon any written opinions or other advice provided to the Board of
Directors with respect to the valuation of the Common Stock by professional advisors, including any
professional appraiser or accountants (including the Company’s certified public accountants) who
may present reports or other advice to the Board of Directors.

 

 

          In determining the Fair Market Value as of any Date of Grant during a period in which the
Common Stock is publicly traded, the Board of Directors shall determine the fair market value as of
that Date of Grant by reference to (a) the closing price of the Common Stock on the principal
exchange on which the Common Stock is then traded, if any, on the trading day previous to such Date
of Grant, or, if the Common Stock is not traded on such date, then on the next preceding trading
day prior to the Date of Grant on which a sale was quoted on such exchange, (b) if the Common Stock
is not then listed or traded on a stock exchange but is regularly quoted on, the Nasdaq bulletin
board, the OTC Bulletin Board, or a successor quotation system, (1) the average of the closing
price quotations, if any, reported on such bulletin board with respect to the sale of Common Stock
over a period of up to ten (10) trading days preceding the Date of Grant, or, (2) if no closing
prices are so quoted, the mean between the closing asked and bid prices quoted for the Common Stock
on each trading day prior to the Date of Grant as the Board of Directors may determine to be
necessary and appropriate to obtain a reliable indicator of fair market value on the Date of Grant.

     2.8 “Grant Agreement” shall mean a written agreement between the Company and a Participant who
has been granted Options or Restricted Stock under this Plan.

     2.9 “ISOs” shall mean options which are intended to qualify as incentive stock options under
Section 422 of the Code.

     2.10 “Management Objectives” shall mean the achievement of performance objectives established
by the Board of Directors pursuant to this Plan for Participants who have received grants of
Restricted Stock or Options with performance-vesting. One or more of the following business
criteria for the Company, on a consolidated basis, and/or specified subsidiaries or business units
of the Company (except with respect to the total stockholder return and earnings per share
criteria), shall be used exclusively by the Board of Directors in establishing performance
objectives: (1) total stockholder return; (2) such total stockholder return as compared to total
return (on a comparable basis) of a publicly available index of companies of a similar
capitalization or in similar industries; (3) net income; (4) annual or quarterly sales or net
sales; (5) annual revenues; (6) pretax earnings; (7) earnings before interest expense, taxes,
depreciation and amortization; (8) pretax operating earnings after interest expense and before
bonuses, service fees, and extraordinary or special items; (9) operating margin; (10) earnings per
share; (11) return on equity; (12) return on capital; (13) return on investment; (14) operating
earnings; (15) working capital or inventory; (16) ratio of debt to stockholders’ equity; or (17)
for awards granted before any equity securities of the Company are registered under the Securities
Act of 1933 or otherwise publicly traded, any other specific performance measure established or set
forth by the Board of Directors. For grants made during periods in which equity securities of the
Company are publicly traded, one or more of the foregoing business criteria described in
subparagraphs (1) through (16) shall be exclusively used in establishing performance objectives for
grants to executive officers that are intended to qualify as “performance-based compensation” under
Code Section 162(m).

     2.11 “Non-Employee Director” shall mean a member of the Board of Directors who is not an
employee or Consultant of the Company, or of any Subsidiary.

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     2.12 “Nonstatutory Options” shall mean options which are not intended to qualify as ISOs.

     2.13 “Option Price” shall mean, with respect to any Option, the amount designated in a
Participant’s Grant Agreement as the price per share he or she will be required to pay to exercise
the Option and acquire shares of Common Stock subject to such Option.

     2.14 “Options” shall mean any rights to purchase shares of Common Stock granted pursuant to
Article IV of this Plan.

     2.15 “Participant” shall mean any employee, Non-Employee Director, or Consultant of the
Company or of any Subsidiary, who has been granted Options or Restricted Stock under the terms of
this Plan.

     2.16 “Plan” shall mean this Brooksdie Technology Holdings Corp 2007 Stock Option Plan, as the
same may be amended from time to time.

     2.17 “Restricted Stock” shall mean shares of Common Stock that are issued to eligible
officers, employees or Consultants of the Company, or of its Subsidiaries, and made subject to
restrictions in accordance with Article V of the Plan, including shares of Common Stock to be
issued in the future contingent upon the satisfaction of conditions established by the Board of
Directors, which may include Management Objectives set forth in Section 2.10, and set forth in the
Participant’s Grant Agreement.

     2.18 “Subsidiary” shall mean any corporation which, on the date of determination, qualifies as
a subsidiary corporation of the Company under Section 424(f) of the Code.

III. Eligibility.

     3.1 Participation. The Board of Directors may grant Options and/or Restricted Stock
awards under this Plan to any officer, key employee or Consultant of the Company. In granting such
awards and determining their form and amount, the Board of Directors shall give consideration to
the functions and responsibilities of the individual, his or her potential contributions to
profitability and sound growth of the Company and such other factors as the Board of Directors may,
in its discretion, deem relevant.

     3.2 Named Executive Officers. Notwithstanding any other provisions of this Plan, if
the Company is subject to the reporting requirements of the Securities Exchange Act of 1934, any
officer who is (or is likely to become) a named executive officer shall not be granted Options or
Restricted Stock unless the grant has been approved by a Board of Directors or a Committee of the
Board of Directors comprised exclusively of outside directors who qualify as “outside directors”
within the meaning of Code Section 162(m) and any IRS regulations promulgated thereunder.

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     3.3 Employees of Subsidiaries. The Board of Directors may also, in its discretion,
grant Options or Restricted Stock awards under this Plan to any officer, key employee or
Consultant of any Subsidiary of the Company.

     3.4 Non-Employee Directors. The Board of Directors may grant Options or Restricted
Stock awards under this Plan to Non-Employee Directors only to the extent permitted under such
written policy on the compensation of non-employee directors as may have been approved by the full
Board of Directors.

IV. Options.

     4.1 Terms and Conditions. The Board of Directors may, in its sole discretion, from
time to time grant Options to any officer, key employee or Consultant of the Company or Subsidiary
of the Company. The grant of an Option to an eligible officer, key employee or Consultant shall be
evidenced by a written Grant Agreement in substantially the form approved by the Board of
Directors. Such Option shall be subject to the following express terms and conditions and to such
other terms and conditions, not inconsistent with the terms of this Plan, as the Board of Directors
may deem appropriate.

          (a) Shares Covered. The Board of Directors shall, in its discretion, determine the
number of shares of Common Stock to be covered by the Options granted to any Participant.

          (b) Maximum Term of Options. The term of each Option shall be for such period as the
Board of Directors shall determine, but unless the Board of Directors determines that another term
is more appropriate and includes that other term in the Participant’s Grant Agreement, the term for
any Option granted under this Plan shall be for ten years from the Date of Grant thereof.

          (c) Vesting of Options. The Board of Directors shall also have the discretion to
determine when each Option granted hereunder shall become exercisable, and to prescribe any vesting
schedule limiting the exercisability of such Options as it may deem appropriate. Unless the Board
of Directors determines that another vesting schedule should apply and includes that vesting
schedule in the Participant’s Grant Agreement, any Option granted under this Plan shall vest in
equal annual installments over a period of five (5) years.

          The Board of Directors may, in its discretion, condition the vesting and exercisability of any
Option granted under the Plan on satisfaction of (i) any minimum period of continued employment
with the Company by the Participant the Board of Directors deems appropriate (“service vesting”),
(ii) satisfaction of any of one or more Management Objectives the Board of Directors deems
appropriate (“performance vesting”), or (iii) any combination of servicing vesting and performance
vesting requirements the Board of Directors deems appropriate.

          (d) Option Price. The Option Price payable for the shares of Common Stock covered by
any Option shall be determined by the Board of Directors, but shall in no event be less than the
current fair market value of the Common Stock on the Date of Grant.

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          (e) Exercise of Options. A Participant may exercise his or her Options from time to
time by written notice to the Secretary of the Company of his or her intent to exercise the Options
with respect to a specified number of shares. The specified number of shares of Common Stock will
be issued and transferred to the Participant upon receipt by the Company of (i) such notice and
(ii) payment in full for such shares, and (iii) receipt of any payments required to satisfy the
Company’s tax withholding obligations pursuant to Section 8.2 of this Plan.

          (f) Payment of Option Price Upon Exercise. Each Option Agreement shall provide that
the Option Price for the Common Stock with respect to which an Option is exercised may be paid to
the Company at the time of exercise, in the form of (i) cash, (ii) delivery to the Company of
shares of Common Stock already owned by the Participant, valued at their Fair Market Value on the
day immediately preceding the date of exercise, or (iii) a combination of any of the above equal to
the Option Price for the shares.

     4.2 Effect of Termination of Employment, Retirement, Disability or Death.

          (a) Unless otherwise expressly provided in the Participant’s Grant Agreement or an employment
agreement expressly approved by the Board of Directors, if a Participant’s employment (or service
on the Board of Directors for a Non-Employee Director, or other relationship for a Consultant) with
the Company is involuntarily terminated, or is terminated by the Participant without the Company’s
express consent, for any reason other than retirement, disability or death, his or her Options
shall terminate immediately upon the date of the termination, unless the Board of Directors
decides, in its sole discretion, to waive this termination.

          Notwithstanding the foregoing, if a Participant’s employment with the Company (or service on
the Board of Directors, for a Non-Employee Director, or other relationship, in the case of a
Consultant) is involuntarily terminated for “cause,” his or her Options shall terminate immediately
on the date of the termination. For this purpose, termination for “cause” shall include
termination for breaching any covenants not to compete, non-solicitation, confidentiality or
similar covenants the Participant has made in any employment agreement or confidentiality agreement
with the Company, or, if the Participant has an employment agreement with the Company, any event
that would permit the Company to involuntarily terminate his employment under that employment
agreement for cause or good reason.

          (b) Any Option Agreement may, in the Board of Directors’ sole discretion, include such
provisions as the Board of Directors deems advisable with respect to the Participant’s right to
exercise the Option subsequent to retirement at or after age 60 or other termination with the
consent of the Company, or subsequent to termination of the Participant’s employment (or other
relationship, in the case of a Non-Employee Director or Consultant) by reason of total and
permanent disability; provided, that, in no event shall any Option be exercisable after the
fixed termination date set forth in the Participant’s Grant Agreement pursuant to Section 4.1(b).

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          (c) Any Grant Agreement may, in the Board of Directors’ sole discretion, provide that, in the
event the Participant dies while in the employ of the Company (or while serving as an active
Consultant), or while he or she has the right to exercise his or her Options under the preceding
Section 4.2(b), the Options may be exercised (to the extent it had become exercisable prior to the
time of the Participant’s death), during such period of up to one year after the date of the
Participant’s death as the Board of Directors deems to be appropriate, by the personal
representative of the Participant’s estate, or by the person or persons to whom the Options shall
have been transferred by will or by the laws of descent and distribution.

          (d) For purposes of this Section 4.2, termination of a Participant shall be deemed to occur at
such time as the Board of Directors shall determine that the Participant is no longer a common law
employee or active Consultant of the Company or any Subsidiary. The Board of Directors shall have
the discretion to determine whether the employment relationship or consulting relationship between
the Company (or Subsidiary) and any Participant has terminated. Part-time or non-exclusive
employment by the Company may be considered employment by the Company as long as the Participant is
treated as an employee for purposes of FICA and payroll taxes, as shall employment by a Subsidiary.
In addition, the Board of Directors shall have full discretion to determine whether a
Participant’s reduction in hours, medical or disability leave, FMLA leave, absence on military or
government service, or other authorized leave of absence, shall constitute a termination of
employment (or termination of consulting services, in the case of a Consultant) for purposes of
this Plan.

     4.3 Designation of Options as Incentive Stock Options. The Board may, in its
discretion, specify that any Option granted to a Participant who is employed by the Company, or by
a Subsidiary (to the extent specified in Section 3.3 above), shall be an ISO qualifying under Code
Section 422. Each Grant Agreement which provides for the grant of ISOs shall designate that such
Options are intended to qualify as ISOs. Each provision of the Plan and of each Grant Agreement
relating to an Option designated as an ISO shall be construed so that such Option qualifies as an
ISO, and any provision that cannot be so construed shall be disregarded.

          Any Options granted under this Plan which are designated as ISOs shall comply with the
following terms:

          (a) The aggregate Fair Market Value (determined at the time an ISO is granted) of the shares
of Common Stock (together with all other stock of the Company and all stock of any Subsidiary) with
respect to which the ISOs may first become exercisable by an individual Participant during any
calendar year, under all stock option plans of the Company (or any Subsidiaries) shall not exceed
$100,000. To the extent this limitation would otherwise be exceeded, the Option shall be deemed to
consist of an ISO for the maximum number of shares which may be covered by ISOs pursuant to the
preceding sentence, and a Nonstatutory Option for the remaining shares subject to the Option.

          (b) The Option Price payable upon the exercise of an ISO shall not be less than the Fair
Market Value of a share of Common Stock on the Date of Grant.

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          (c) In the case of an ISO granted to a Participant who is a ten percent stockholder of the
Company, the period of the Option shall not exceed five years from the Date of Grant, and the
Option Price shall not be less than 110 percent of the Fair Market Value of Common Stock on the
Date of Grant.

          (d) No Option designated as an ISO granted under this Plan shall be assignable or transferable
by the Participant, except by will or by the laws of descent and distribution. During the life of
the Participant, any Option designated as an ISO shall be exercisable only by the Participant.

     4.4 Authority to Waive Restrictions on Exercisability. The Board of Directors may, in
its discretion, determine at any time that all or any portion of the Options granted to one or more
Participants under the Plan shall, notwithstanding any restrictions on exercisability imposed
pursuant to Section 4.1(c), become immediately exercisable in full. The Board of Directors may
make such further adjustments to the terms of such Options as it may deem necessary or appropriate
in connection therewith.

     4.5 Non-Assignability. Options granted under this Plan shall generally not be
assignable or transferable by the Participant, except by will or by the laws of descent and
distribution, or as described in the next paragraph. Notwithstanding the foregoing, the Board of
Directors may, in its discretion, permit a Participant to transfer all or a portion of his or her
Options to members of his or her immediate family as defined in Securities and Exchange Commission
Rule 701, to trusts for the benefit of members of his immediate family, or to family partnerships
or limited liability company which immediate family members are the only partners or members,
provided that the Participant may receive no consideration for such transfers, and that such
Options shall still be subject to termination in accordance with Section 4.2 above in the hands of
the transferee.

     4.6 Covenants Not to Compete. The Board of Directors may, in its discretion,
condition any Option granted to an employee, Consultant or Director of the Company upon such
Participant’s agreement to enter into such covenant not to compete with the Company as the Board of
Directors may deem to be desirable. Such covenant not to compete shall be appended to the
Participant’s Grant Agreement, and the Grant Agreement shall provide that the Option shall be
forfeited immediately, whether otherwise vested or not, if the Board of Directors determines that
the Participant has violated his or her covenant not to compete. In addition, in the Board of
Directors’ discretion, a Participant’s Grant Agreement may also provide that if the Participant
breaches his or her covenant not to compete, the Company shall have the right to repurchase any
shares of Common Stock previously issued to the Participant pursuant to an exercise of the Option,
at a repurchase price equal to the Option Price paid by the Participant.

V. Restricted Stock.

     5.1 Rights As A Stockholder. Subject to Section 3.3 above, the Board of Directors
may, in its discretion, grant a Participant an award consisting of shares of Common Stock, or sell
a Participant shares of Common Stock on such terms as the Board of Directors may determine to be
appropriate. At the time of the award, the Board of Directors shall cause the Company to

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deliver to the Participant, or to a custodian or an escrow agent designated by the Board of
Directors, a certificate or certificates for such shares of Restricted Stock, registered in the
name of the Participant. The Participant shall have all the rights of a stockholder of the Company
with respect to such Restricted Stock, subject to the terms and conditions, including forfeiture or
resale to such Company, if any, as the Board of Directors may determine to be desirable pursuant to
Section 5.3 of the Plan. The Board of Directors may designate the Company or one or more of its
executive officers to act as custodian or escrow agent for the certificates.

     5.2 Awards and Certificates.

          (a) A Participant granted an award of Restricted Stock shall not be deemed to have become a
stockholder of the Company, or to have any rights with respect to such shares of Restricted Stock,
until and unless such Participant shall have executed a Grant Agreement evidencing the terms of the
Restricted Stock award and delivered a fully executed copy thereof to the Company and otherwise
complied with the then applicable terms and conditions of such award, including, if the shares of
Restricted Stock are to be sold to the Participant, payment of the specified purchase price for the
Restricted Stock award on such terms as the Board of Directors may set.

          (b) When a Participant is granted Restricted Stock, the Company shall issue a stock
certificate or certificates in respect of the shares of Restricted Stock. Such certificates shall
be registered in the name of the Participant, and shall bear an appropriate legend referring to the
terms, conditions and restrictions applicable to such award substantially in the following form:

“The transferability of the Common Units represented by this
Certificate are subject to the terms and conditions (including
forfeiture) of a Restricted Stock Grant Agreement entered into
between the registered owner and Brooksdie Technology Holdings Corp
A copy of such Agreement is on file in the offices of the Secretary
of the Company, 333 4th Ave. North, St. Petersburg,
Florida 33701.”

          (c) Except as may be otherwise determined by the Board of Directors pursuant to Section 5.1
above (or as required in order to satisfy the tax withholding obligations imposed under Section 8.2
of this Plan), Participants granted awards of Restricted Stock under this Plan will not be required
to make any payment or provide consideration to the Company other than the rendering of services.

     5.3 Restrictions and Forfeitures. Restricted Stock awarded to a Participant pursuant
to this Article V of the Plan shall be subject to the following restrictions and conditions:

          (a) During a period set by the Board of Directors of not more than ten (10) years, commencing
with the Date of Grant (the “Restriction Period”), the Participant will not be permitted to sell,
transfer, pledge or assign the shares of Restricted Stock awarded to him or her. Within these
limits, the Board of Directors may provide for the lapse of such restrictions in

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installments where
deemed appropriate, or for the lapse of such restrictions upon the satisfaction
of such minimum periods of continued service with the Company or the achievement of such Management
Objectives as the Board of Directors may have established in connection with the award.

          (b) Except as provided in Section 5.3(a), the Participant shall have with respect to the
Restricted Stock award all of the rights provided to any holder of Common Stock of the Company,
subject to the terms of the Shareholder Agreement, including the right to vote the Restricted Stock
and receive a share of any dividends or other distributions declared with respect to the Common
Stock.

          (c) Subject to the provisions of Section 5.3(d), unless otherwise provided in the
Participant’s Grant Agreement or an employment agreement expressly approved by the Board of
Directors, upon termination of the Participant’s employment with the Company (or termination of the
Participant’s status as a Non-Employee Director or Consultant of the Company) during the
Restriction Period for any reason, all shares of Restricted Stock with respect to which the
restrictions have not yet expired shall be forfeited to or repurchased by the Company on such terms
as may be set forth in the Participant’s Grant Agreement.

          (d) In the event of a Participant’s retirement, permanent total disability, or death, or in
cases of special circumstances, the Board of Directors may, in its sole discretion, when it finds
that a waiver would be in the best interests of the Company, waive in whole or in part any or all
remaining restrictions with respect to such Participant’s Restricted Stock.

          (e) Notwithstanding the other provisions of this Section 5.3, the Board of Directors may adopt
rules which would permit a Participant to transfer all or a portion of his or her Restricted Stock
to members of his or her immediate family as defined in SEC Rule 701, or to a trust for the benefit
of members of his or her immediate family, or to a family limited partnership or limited liability
companies of which immediate family members are the only partners or members, provided that the
Restricted Stock so transferred shall be similarly restricted.

          (f) Any attempt to dispose of shares of Restricted Stock in a manner contrary to the
restrictions set forth herein shall be ineffective.

          (g) Nothing in this Section 5.3 shall preclude a Participant from exchanging any Restricted
Stock for any other equity securities of the Company that are similarly restricted.

VI. Change in Control Transactions.

     6.1 Change in Control. For purposes of this Plan, a “Change in Control” shall include
any of the events described below:

     (a) Any one person, or more than one person acting as a group (as determined under
Subsection (d) below), acquires (or has acquired during the 12-month period

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ending on the
date of the most recent acquisition by such person or persons) ownership of
Common Stock of the Company possessing 35 percent or more of the total voting power of the
outstanding equity securities of the Company; or

     (b) a majority of members of the Board of Directors is replaced during any 12-month
period by members whose appointment or election is not endorsed by a majority of the members
of the Company’s Board of Directors prior to the date of the appointment or election; or

     (c) any one person, or more than one person acting as a group (as determined in
Subsection (e) below), acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person or persons) assets from the Company that
have a total gross fair market value equal to or more than 40 percent of the total gross
fair market value of all of the assets of the Company immediately prior to such acquisition
or acquisitions. For this purpose, gross fair market value means the value of the assets of
the Company, or the value of the assets being disposed of, determined without regard to any
liabilities associated with such assets.

Notwithstanding the foregoing, no Change in Control shall be considered to have occurred for
purposes of this Plan by reason of any issuance of Common Stock or other equity securities of the
Company in any public offering or private placement approved by the Board of Directors, by reason
of the issuance of Common Stock upon the exercise of warrants or any convertible securities which
were approved by the Board of Directors, or by reason of a change in the composition of the Board
of Directors resulting from the appointment of one or more directors pursuant to Board
representation rights granted to a venture capital fund or similar investor. Further, no Change in
Control shall be considered to have occurred by reason of a transfer of Common Stock or assets of
the Company to the members of the Company or to another entity that is controlled by the members of
the Company immediately after the transfer.

     For purposes of this Section 6.1, persons will not be considered to be acting as a group
solely because they purchase assets or purchase or own equity securities of the same firm at the
same time, or as a result of the same public offering. However, persons will be considered to be
acting as a group if they are owners of a corporation or limited liability company that enters into
a merger, consolidation, purchase or acquisition of stock, purchase or acquisition of assets, or
similar business transaction with the Company.

     6.2 Effect of Change in Control. In the event of a pending or threatened Change in
Control, the Board of Directors may, in its sole discretion, take any one or more of the following
actions with respect to any one or more Participants (other than with respect to Named Executive
Officers):

     (i) Accelerate the exercise dates of any outstanding Options;

     (ii) Make outstanding Options fully vested and exercisable;

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     (iii) Determine that all or any portion of conditions
associated with a Restricted Stock award have been met;

     (iv) Grant a cash bonus award to any of the holders of
outstanding Options;

     (v) Pay cash to any or all Option holders in exchange for the
cancellation of their outstanding Options or unvested Restricted
Stock; or

     (vi) Make any other adjustments or amendments to the Plan and
outstanding Options or Restricted Stock awards and/or substitute new
Options or other awards.

If the Common Stock is registered under the Securities Exchange Act of 1934, any such action with
respect to any Named Executive Officer shall be effective only if it is approved by a committee
comprised exclusively of outside directors within the meaning of Code section 162(m).

          In exercising its authority under this Section 6.2, the Board of Directors shall have no duty
to apply any action taken under this Section uniformly to all Participants, and may choose, in its
sole discretion, whether or not the Options, or Restricted Stock awards granted to any particular
Participant will be affected (subject to any pre-existing provisions in the Participant’s Grant
Agreement or employment agreement with the Company requiring accelerated vesting upon a Change in
Control).

VII. Aggregate Limitation on Common Stock Available for Issuance.

     7.1 Number of Common Stock Available.

          (a) The shares of Common Stock which may be issued pursuant to Options or Restricted Stock
awards granted under the Plan may be either authorized and unissued Common Stock or shares of
Common Stock reacquired by the Company from members. The number of shares of Common Stocks
reserved for issuance pursuant to the exercise of Options granted under this Plan, or as Restricted
Stock awards under Article V of this Plan, shall not exceed 5,000,000 shares of Common Stock,
subject to such adjustments as may be made pursuant to Section 7.2.

          (b) For purposes of Section 7.1(a), upon the exercise of an Option, the number of shares of
Common Stock available for future issuance under the Plan shall be reduced by the net number of
shares of Common Stock actually issued to the Optionee, exclusive of any shares of Common Stock
surrendered to the Company as payment of the Option price.

          (c) Any shares of Common Stock subject to an Option which for any reason is cancelled,
terminates unexercised or expires, shall again be available for issuance under the Plan.

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          (d) In the event that any Restricted Stock award is forfeited, cancelled or surrendered for
any reason, the shares of Common Stock constituting such Restricted Stock award shall again be
available for issuance under the Plan.

     7.2 Adjustments of Stock. In the event of any change or changes in the outstanding
Common Stock of the Company by reason of any stock dividend, recapitalization, reorganization,
merger, consolidation, split-up, combination or any similar transaction, the Board of Directors
shall adjust the number of shares of Common Stock which may be issued under this Plan, the number
of shares of Common Stock subject to Options theretofore granted under this Plan, the Option Price
of such Options, the number of Restricted Stock and make any and all other adjustments deemed
appropriate by the Board of Directors in such manner as the Board of Directors deems necessary to
prevent substantial dilution or enlargement of the rights granted to Participants.

          New option rights may be substituted for the Options granted under the Plan, or the Company’s
duties as to Options outstanding under the Plan may be assumed by a Subsidiary, or by another
corporation or by a parent or subsidiary (within the meaning of Section 424 of the Code) of such
other corporation, in connection with any merger, consolidation, acquisition, separation,
reorganization, liquidation or like occurrence in which the Company is involved. In the event of
such substitution or assumption, the term Common Stock shall thereafter include the securities of
the entity granting such new option rights or assuming the Company’s duties as to such Options.

VIII. Miscellaneous.

     8.1 Restrictions. Any Option or Restricted Stock award granted under this Plan shall
be subject to the requirement that, if at any time the Board of Directors shall determine that any
registration of the Common Stock, or any consent or approval of any governmental body, or the
taking of any action to perfect an exemption from the registration of such Common Stock under the
Securities Act or any state securities law, is necessary as a condition of the granting of an
Option or other award, or the issuance of Common Stock in satisfaction thereof, such shares of
Common Stock will not be issued or delivered until such requirement is satisfied in a manner
acceptable to the Board of Directors. A Participant’s right to exercise Options granted under this
Plan is conditioned on, and subject to, satisfaction of one of the following requirements: (i) the
Board of Directors is reasonably satisfied that the exercise of the Options will be exempt from
registration under the Securities Act of 1933, as amended, pursuant to SEC Rule 701, or (ii) the
Participant is an “accredited investor” at the time of the exercise.

          The Board of Directors may from time to time impose such other conditions on the grant of
awards or the exercise of Options granted under this Plan as it deems necessary or advisable to
ensure that the Common Stock issued hereunder, and each exercise thereof, is exempt from the
registration requirements of federal and state securities laws. Such conditions to satisfy
applicable federal and state securities laws may include, without limitation, a requirement that
upon each exercise of the Options or award of Restricted Stock the Participant provide the Board of
Directors with such investment representation letter or other documentation

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as the Board of
Directors may deem to be necessary or desirable to qualify for an exemption from
registration and printing legends on all certificates issued to the Participant referring to the
restrictions on the transferability of such shares of Common Stock.

     8.2 Withholding Taxes.

          (a) The Board of Directors shall have the right to require participating employees to remit to
the Company an amount sufficient to satisfy any federal, state and local withholding tax
requirements prior to the delivery of any shares of Common Stock under the Plan.

          (b) The Company shall have the right to withhold from payments made in cash to a Participant
under the terms of the Plan, an amount sufficient to satisfy any federal, state and local
withholding tax requirements imposed with respect to such cash payments.

          (c) Amounts to which the Company is entitled pursuant to Section 8.2(a) or (b), may be paid,
at the election of the Participant and with the express approval of the Board of Directors, either
(i) paid in cash, (ii) withheld from the Participant’s salary or other compensation payable by the
Company or the relevant Subsidiary, including cash payments made under this Plan, (iii) withheld
from the shares of Common Stock otherwise issuable to the Participant upon exercise of an Option or
vesting of a Restricted Stock award, that have a Fair Market Value on the date on which the amount
of tax to be withheld is determined (the “Tax Date”) not less than the minimum amount of tax the
Company is required to withhold, (iv) by delivery to the Company of shares of Common Stock already
held by the Participant (including newly vested Restricted Stock under this Plan) with a Fair
Market Value on the Tax Date equal to the minimum amount of tax the Company is required to
withhold, or (v) in any combination of the foregoing acceptable to the Board of Directors. A
Participant’s election to have shares of Common Stock withheld that are otherwise issuable shall be
in writing, shall be irrevocable upon approval by the Board of Directors, and shall be delivered to
the Company prior to the Tax Date with respect to the exercise of an Option.

     8.3 Tax Loans. For periods prior to the time the Common Stock are registered under
the Securities Exchange Act, at the discretion of the Board of Directors, the Company may make a
loan to a Participant (i) in connection with the exercise of an Option in an amount not to exceed
the grossed up amount of any Federal and state taxes payable in connection with such exercise, for
the purpose of assisting such Participant to exercise such Option, or (ii) in connection with the
vesting of Restricted Stock in an amount equal to the grossed up amount of any Federal and state
taxes payable as a result of such vesting. Any such loan may be secured by the shares of Common
Stock issued to the Participant or other collateral deemed adequate by the Board of Directors and
will comply in all respects with all applicable laws and regulations. The Board of Directors may
adopt policies regarding eligibility for such loans, the maximum amounts thereof and any terms and
conditions not specified in the Plan upon which such loans will be made. In no event will the
interest rate be lower than the minimum rate at which the Internal Revenue Service would not impute
additional taxable income to the Participant.

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     8.4 Investment Representation. If the Board of Directors determines that a written
representation is necessary in order to secure an exemption from registration under the Securities
Act of 1933, the Board of Directors may demand that the Participant deliver to the Company at the
time of any exercise of any Option, at time of the transfer of Restricted Stock, any written
representation that Board of Directors determines to be necessary or appropriate for such purpose,
including but not limited to a representation that the shares to be issued are to be acquired for
investment and not for resale or with a view to the distribution thereof, and any other assurances
that the Board of Directors deems appropriate. If the Board of Directors makes such a demand,
delivery of a written representation satisfactory to the Board of Directors shall be a condition
precedent to the right of the Participant to acquire such shares of Common Stock.

     8.5 No Right to Employment. Nothing in this Plan or in any Grant Agreement or other
agreement entered into pursuant to the Plan shall confer upon any Participant the right to continue
in the employment of the Company or any Subsidiary, or affect any right which the Company (or
Subsidiary) may have to terminate the employment of such Participant.

     8.6 Non-Uniform Determinations. The Board of Directors’ determinations under this
Plan (including without limitation its determinations of the persons to receive Options, or
Restricted Stock awards, the form, amount and timing of such awards and the terms and provisions of
such awards) need not be uniform and may be made by it selectively among Participants who receive,
or are eligible to receive, awards under this Plan, whether or not such Participants are similarly
situated.

     8.7 No Rights as Stockholders. Participants granted Options under this Plan shall
have no rights as stockholders of the Company as applicable with respect thereto unless and until
certificates for the shares of Common Stock are issued to them.

     8.8 Transfer Restrictions. The Board of Directors may determine that any shares of
Common Stock to be issued by the Company upon the exercise of Options or as Restricted Stock awards
shall be subject to such further restrictions upon transfer as the Board of Directors determines to
be appropriate.

     8.9 Fractional Shares. The Company shall not be required to issue any fractional
shares of Common Stock pursuant to this Plan. The Board of Directors may provide for the
elimination of fractions or for the settlement thereof in cash.

     8.10 Notification of Election Under Section 83(b) of the Code. If any Participant
shall, in connection with the acquisition of shares of Common Stock under the Plan, make the
election permitted under Section 83(b) of the Code, such Participant shall notify the Company of
such election within 10 days of filing notice of the election with the Internal Revenue Service.

XI. Administration.

          (a) The Plan shall be administered by the Board of Directors.

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          (b) Except as provided in Section 3.2, the Board of Directors shall have the authority, in its
sole discretion, from time to time: (i) to grant Options or Restricted Stock awards to officers,
employees, directors and Consultants of the Company and its Subsidiaries, as
provided for in this Plan; (ii) to prescribe such limitations, restrictions and conditions upon any
such awards as the Board of Directors shall deem appropriate; (iii) to determine the periods during
which Options may be exercised and to accelerate the exercisability of outstanding Options or the
vesting of Restricted Stock awards, as it may deem appropriate; (iv) to modify, cancel, or replace
any prior Options or Restricted Stock awards and to amend the Grant Agreements with the consent of
the affected Participants, including amending such agreements to amend vesting schedules or
increase the Option Price for Options, as it may deem to be necessary; and (v) to interpret the
Plan, to adopt, amend and rescind rules and regulations relating to the Plan, and to make all other
determinations and to take all other action necessary or advisable for the implementation and
administration of the Plan.

          (c) All actions taken by the Board of Directors shall be final, conclusive and binding upon
any eligible Participant. No member of the Board of Directors shall be liable for any action taken
or decision made in good faith relating to the Plan or any award thereunder.

XII. Amendment and Termination.

     12.1 Amendment or Termination of the Plan. The Board of Directors may at any time
terminate this Plan or any part thereof and may from time to time amend this Plan as it may deem
advisable; provided, however the Board of Directors shall obtain stockholder approval of any
amendment for which stockholder approval is required under the stockholder approval requirements
imposed on the Company by the Listing Rules of any stock exchange on which the Common Stock is
listed, including an amendment which would (i) increase the aggregate number of shares of Common
Stock which may be issued under this Plan (other than increases permitted under Section 7.2),
(ii) extend the term of this Plan, or (iii) extend the period during which an Option may be
exercised beyond ten years. The termination or amendment of this Plan shall not, without the
consent of the affected Participant, affect such Participant’s rights under an award previously
granted.

     12.2 Term of Plan. Unless previously terminated pursuant to Section 12.1, the Plan
shall terminate on April 19, 2017, the tenth anniversary of the date on which the Plan became
effective, and no Options or awards of Restricted Stock may be granted under this Plan on or after
such date.

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