Document:

CipherTrust 2000 Option Plan

 Exhibit 4.7 
  

CipherTrust, Inc. 
 2000
STOCK OPTION PLAN 
 (As Amended through July 3, 2003) 
  
 I. PURPOSE. 
  
 CipherTrust, Inc. (“Company”) 2000 Stock Option Plan is intended to encourage stock ownership by officers and other key employees of the Company
and of its subsidiaries, to provide them with a proprietary interest or to increase their proprietary interest in the Company’s success and/or to encourage them to remain in the employ of the Company or any of its subsidiaries. 
  
 II. DEFINITIONS 
  
 Where the following words appear in the Plan, they shall have the respective meanings set forth below, unless their context
clearly indicates a contrary meaning: 
  

	A.	Board of Directors - The Board of Directors of the Company. 

  

	B.	Code - The Internal Revenue Code of 1986, as amended, including amendments hereafter adopted. 

  

	C.	Committee - The Compensation Committee of the Board of Directors or any successor Committee appointed by the Board of Directors. In the absence of the appointment of the Committee,
the Board of Directors of the Company shall exercise all of the powers of the Committee under the Plan. 

  

	D.	Company - CipherTrust, Inc, a Georgia corporation, which is the parent corporation as defined in Subsections 424(e) and (g) of the Code. 

  

	E.	Employee - Employee shall mean any officer or other key employee (including an officer or other key employee who is also a director) employed on a full-time basis by the Company or
any present or future Parent or Subsidiary. 

  

	F.	ISO - An option granted under the Plan which constitutes an incentive stock option within the meaning of Section 422 of the Code. 

  

	G.	Non-Qualified Stock Option or NQSO - An option granted under the Plan which does not qualify as an ISO. 

  

	H.	Option - An option granted under the Plan which may be either an ISO or a Non-Qualified Stock Option. 

  

	I.	Option Agreement - The document setting forth the terms and conditions of each Option. 

  

	J.	Optionee - The holder of an Option. 

	K.	Parent - Parent shall mean any present or future corporation as defined in Subsections 424(e) and (g) of the Code. 

  

	L.	Plan - CipherTrust, Inc. 2000 Stock Option Plan, as the same may be amended from time to time in accordance with the terms hereof. 

  

	M.	Shares - The shares of common stock of the Company, $.001 par value, subject to adjustment and substitution as provided in Paragraph V of the Plan. 

  

	N.	Subsidiary - Any present or future subsidiary of the Company as defined in Subsections 424(f) and (g) of the Code. 

  
 III. ADMINISTRATION. 
  

	A.	The Committee shall have full and complete authority in its sole discretion, but subject to the express provisions of the Plan: to grant Options; to determine the option price of
the Shares covered by each Option; to determine the Employees of the Company and of its Subsidiaries to whom, and the time or times at which, Options shall be granted; to determine the number of Shares to be covered by each Option; to interpret the
Plan; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of each option grant and Option Agreement (which terms need not be identical); to determine the vesting schedule of each Option (
including the acceleration thereof); to cancel and amend Options (with the consent of the holder of the Option where required); to impose such conditions on the grant of Options as it determines to be appropriate, including the surrender of
outstanding stock options issued under the Plan or any other stock option plan, regardless of the option price; and to make all other determinations and rules and take such other action deemed necessary or advisable for the administration of the
Plan. In addition, the Committee may extend the duration of any NQSO for a period not to exceed one year subject to the provisions of Paragraph VI B hereof without changing the option price upon such terms as the Committee may deem advisable.

  

	B.	Each determination, interpretation, rule or other action made or taken pursuant to the Plan by the Committee shall be final and conclusive for all purposes and binding upon all
persons, including, but without limitation thereto, the Company, Subsidiaries, the Board of Directors, the Committee, Employees of the Company and its Subsidiaries and Optionees and their respective successors in interest. 

 

	C.	The Committee shall consist of not less than two (2) directors. In the event any class of equity security of the Company is registered pursuant to Section 12 of the
Securities Exchange Act of 1934 (“34 Act”), each member of the Committee shall be a member of the Board of Directors who is not eligible to participate under the Plan and who has not been granted or awarded equity securities of the Company
for at least one year prior to the time the director becomes a member of the Committee or during such service on the Committee pursuant to the Plan or any other “plan” within the meaning of Rule 16b-3 promulgated under the 34 Act, except
as otherwise permitted under Rule 16b-3 (or any successor rule or regulation). 

  

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	D.	The Board of Directors may designate one (1) of the members of the Committee as its chairperson and the Committee shall hold its meetings at such times and places as it shall
deem advisable. A majority of its members shall constitute a quorum. All determinations of the Committee shall be made by a majority of its members present at a meeting at which a quorum was present. Any decision or determination reduced to writing
and signed by all the members of the Committee shall be effective as if it had been made by a vote at a meeting duly called and held. The Committee shall keep minutes of its meetings and shall make such rules and regulations for the conduct of its
business as it shall deem advisable. 

  

	E.	No member of the Committee shall be liable for any action or determination made in good faith with respect to the administration of the Plan and the granting of Options thereunder.

  
 IV. ELIGIBILITY AND LIMITATIONS. 
  
 Options may be granted only to Employees of the Company or of any Subsidiary
or Parent. Persons who are not Employees of the Company or of a Subsidiary or Parent will not be eligible to receive an ISO. In determining the number of shares to be covered by each Option, subject to Paragraph V hereof, and persons to whom Options
shall be granted, the Committee shall take into account such factors as it shall deem relevant in connection with accomplishing the purpose of the Plan as set forth in Paragraph I hereof. Any person who has been granted an Option may be granted an
additional Option or Options if the Committee shall so determine. No ISO shall be granted to an individual who, at the time the ISO is granted, owns (within the meaning of subsection 422(b)(6) of the Code) stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or of its Parent or any Subsidiary, unless, at the time the ISO is granted, the option price is at least 110 percent (110%) of the fair market value of the Shares subject to the ISO,
and the ISO by its terms is not exercisable after the expiration of five (5) years from the date the ISO is granted. 
  

	A.	ISOs granted to an Optionee in excess of the limitations set forth in subsection 422(d) of the Code for any calendar year shall be deemed to be a Non-Qualified Stock Option.

  

	B.	Each Option must be granted prior to the 10th anniversary of the adoption of the Plan by the Board of Directors. 

  
 V. AVAILABLE SHARES AND STOCK ADJUSTMENTS. 
  

	A.	The total number of Shares that may be issued pursuant to Options granted under the Plan shall not exceed 7,000,000 Shares, subject to adjustment as set forth hereinafter. Shares
subject to the Plan may be either authorized but unissued Shares or Shares that were once issued and subsequently reacquired by the Company. If any Option is surrendered before exercise or lapses without exercise or for any other reason ceases to be
exercisable, the Shares reserved therefor shall continue to be available under the Plan. The Company will reserve and keep available a sufficient number of authorized but unissued Shares and/or treasury Shares to be issued upon the exercise of the
Options 

  

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	B.	In the event of a stock split, reverse stock split, stock dividend, or a reclassification of the Shares or other similar action by the Company, the total number of Shares which may
be issued under the Plan upon the exercise of Options and the total number of Shares and/or the option price contained in any outstanding Option pursuant to which Options were granted under the Plan, shall be appropriately adjusted as determined by
the Board of Directors in its sole discretion. Any such adjustment in the number of Shares and/or option price of an ISO shall be made in such manner as to not constitute a modification as defined in Subsection 424(h)(3) of the Code and only to the
extent permitted by Sections 422 and 424 of the Code. 

  

	C.	In the event of any merger or consolidation or other reorganization in which the Company shall be the surviving entity and its shareholders retain all of the Shares held immediately
prior to such event and receive no securities or other property, there shall be no change in the securities or the number of Shares that the holder of the Option will be entitled to receive upon the exercise of the Option or the option price, except
as set forth in Paragraph V. 

  

	D.	In the event of any merger or consolidation or other reorganization in which the Company shall be the surviving entity and its shareholders have a right to receive securities for or
other property in addition to, the outstanding Shares held, each holder of an outstanding Option shall be entitled to receive, upon the exercise of the Option, in lieu of the number of Shares as to which such holder of the Option would otherwise
have been entitled to receive upon the exercise of the Option immediately prior to such merger or consolidation or other reorganization, the number and class of shares and other securities and other property to which such holder of the Option would
have been entitled to receive (or retain) pursuant to the terms of the merger or consolidation or other reorganization if, at the time of such merger or consolidation or other reorganization, such holder of the Option had been the holder of record
of a number of Shares equal to the number of Shares to which such Option is then being so exercised. Comparable rights shall accrue to each holder of an Option in the event of successive mergers or consolidations or other reorganizations.

  

	E.	In the event of any merger or consolidation or other reorganization, in which the Company is not the surviving corporation and the shareholders of the Company shall not receive any
equity securities of the surviving entity (or its Parent) for their Shares, except as hereinafter set forth, all Options (whether or not vested in whole or in part) which have not been exercised prior to or upon such event, shall terminate upon such
event unless and to the extent the Board of Directors shall have provided for the substitution of other options for, or for the assumption by the surviving corporation (or its Parent) of any unexercised Options then outstanding. Such action by the
Board of Directors may be taken with respect to ISO’s only to the extent permitted by the Code, including Sections 422 and 424. Except to the extent the Board of Directors shall have provided for the substitution of other options for, or for
the assumption by another corporation of, any unexercised Options then outstanding or shall have specifically otherwise provided as permitted by this Subparagraph E, the Options which have not vested shall not become exercisable upon such event and
all outstanding Options shall expire upon such event. 

  

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	F.	In the event of any merger or consolidation or other reorganization in which the Company is not the surviving entity and in which its shareholders shall receive equity securities
regardless of whether they receive other property) for their Shares, each holder of an outstanding Option shall be entitled to receive, upon the exercise of the Option, in lieu of the number of Shares as to which such holder of the Option would
otherwise have been entitled to receive upon the exercise of the Option immediately prior to such merger or consolidation or other reorganization, the number and class of shares and other securities and other property to which such holder of the
Option would have been entitled to receive pursuant to the terms of the merger or consolidation or other reorganization if, at the time of such merger or consolidation or other reorganization, such holder of the Option had been the holder of record
of a number of Shares equal to the number of Shares to which such Option is then being so exercised. Comparable rights shall accrue to each holder of an Option in the event of successive mergers or consolidations or reorganizations.

  

	G.	Upon the dissolution or liquidation of the Company, all Options, whether or not vested in whole or in part, which have not been exercised prior to such event shall terminate upon
such event. 

  

	H.	Any adjustments pursuant to this Paragraph V may provide for the elimination of any fractional interest which might otherwise become subject to an Option, with or without
consideration, as determined by the Board of Directors. 

  
 VI.
OPTION TERMS. 
  
 The Options will be granted under terms and
conditions set forth in a written instrument as determined by the Committee from time to time. The Options will include (but not by way of limitation) the following: 
  

	A.	Price and Payment - The purchase price of each Share covered by each Option as determined by the Committee. The purchase price of each Share covered by an ISO shall not be
less than the fair market value of a Share at the time of the granting of the Option. The purchase price of each Share covered by NQSO may be less than or more than the fair market value of a Share at the time of the granting of the Option. The
purchase price of the Shares to which an Option shall be exercised shall be paid in full at the time of the exercise in cash or by check, subject to collection. With respect to Options granted to Employees of the Company, the Committee may also
provide that the purchase price may be paid in whole or in part by assigning to the Company a number of Shares having a fair market value, determined as of the date the Option is exercised, equal to the amount of the purchase price for the Shares
being acquired upon the exercise of the Option which the Committee permits to be paid by the assigning of Shares to the Company. In such event, the Committee may, in its sole discretion, require certain representations and other conditions precedent
to the acceptance of the Shares from the Optionee. 

  

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	B.	Duration - The duration of the Options shall be as determined by the Committee, but in no event shall an Option granted hereunder be exercisable after the earliest of any of
the following dates: (i) the expiration of ten (10) years from the date the Option is granted; (ii) one (1) year after the cessation of employment of the holder of the Option with the Company, any Subsidiary, or the Parent,
except in the event of termination of such employment by reason of disability, death or retirement; (iii) two (2) years after the cessation of such employment in the event of termination of employment due to death, disability (within in
the meaning of Subsection 422(c)(6) of the Code) or retirement. The Committee’s determination as to whether such employment of an Optionee has ceased and the effective date thereof shall be final and conclusive on all persons affected thereby.
Whether military or other government or eleemosynary service or other leave of absence will constitute termination of such employment shall be determined in each case by the Committee in its sole discretion. 

  

	C.	Non-transferability - ISO’s granted under the Plan shall not be transferable otherwise than by will or the laws of descent and distribution or as otherwise permitted
pursuant to the Code. ISOs may be exercised during the lifetime of the Optionee only by the Optionee personally or by the Optionee’s legal representative. 

  

	D.	Exercise of Option - Options granted hereunder shall be exercisable in whole or in part as determined by the Committee. 

  

	E.	 Conditions to Exercise of Options - Shares shall not be issued with respect to any Option granted under the Plan unless the issuance and delivery of such
Shares shall comply with (or be exempt from) all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, any applicable state securities law, and the
requirements of any stock exchange or nation market system on which the Shares may then be listed. If the issuance or transfer of Shares to be issued or issued pursuant to any Option granted under the Plan may in the opinion of counsel to the
Company conflict or be inconsistent with or not be permitted under any applicable law or regulation of any governmental agency having jurisdiction, including, without limitation, regulations promulgated pursuant to federal and state securities laws,
the Company reserves the right to delay the issuance of the Shares upon the exercise of an Option and such delay shall be without liability to or other obligation of the Company. The Company shall have no obligation hereunder to file registration
statements or other reports or notices or obtain any license or permit or exemption under any federal or state law with respect to the grant of an Option or the issuance of Shares upon the exercise of an Option or the transfer of such Shares at any
time thereafter. The Board of Directors or Committee may require that the holder of an Option, as a condition to each exercise of the Option in whole or in part, to represent to the Company in writing that the Shares to be acquired upon the exercise
of the Option are to be acquired by the holder of the Option for investment purposes only, for such person’s own account, and not with a view to distribution and make such other representations as counsel to the Company may reasonably request
to assure the availability of an exemption from or compliance with the registration, notice, reporting or permitting requirements of applicable federal or state securities laws. The Option may also set forth such other terms and 

  

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conditions relating to the non-registration or qualification of the Shares or the issuance of the Shares by the Company or the transfer of the Shares by the
Optionee under the federal and state securities laws, as the Board of Directors or Committee may prescribe. Such representations and other terms and conditions shall continue in effect as long as counsel to the Company may reasonably request.

  

	F.	Disposition of Shares - In the event the disposition of Shares acquired upon the exercise of any Option is not covered by a then current registration statement under the
Securities Act of 1933, as amended, and under applicable state securities laws, the Shares so purchased shall be restricted against transfer to the extent and for as long as required by such laws and regulations promulgated thereunder or until, and
as long as, the Shares are covered by applicable registration statements filed by the Company in its sole discretion. 

  

	G.	Tax Withholdings. In any case where the Company, any Subsidiary or the Parent is obliged to account for (i) any tax (or similar liabilities) in any jurisdiction, and/or
(ii) any employee and/or employer social security contributions (or similar liabilities) in any jurisdiction, by virtue of the exercise, release or assignment of the Option or the acquisition and holding of Shares (together, the “Tax
Liability”) the Company, Subsidiary or the Parent, as the case may be, may recover the Tax Liability from the Optionee in such manner as the Board of Directors shall think fit and (without prejudice to the generality of the foregoing) Shares
shall not be transferred to the Optionee unless the Optionee has either (iii) made a payment to the Company, Subsidiary or the Parent, as the case may be, of an amount equal to the estimated Tax Liability or (iv) entered into arrangements
with the Company, Subsidiary or the Parent, as the case may be, to secure that such a payment is made. 

  

	H.	National Insurance Contributions Joint Election - Without prejudice to the generality of clause VI. E. above (Conditions to Exercise of Options), the Optionees who are
subject to the laws of the United Kingdom may not exercise, release or assign an Option granted under the Plan in any circumstances unless and until the Board of Directors is satisfied that the Optionee has entered into a binding election in the
form prescribed by the Company pursuant to which the Optionee assumes liability for the whole of the employers’ National Insurance contributions in respect of share option gains arising from the Option. 

  

	I.	Executive Officers. In the event any class of equity security of the Company is registered pursuant to Section 12 of the 34 Act, any election granted to an executive
officer (as defined pursuant to rules promulgated under the 1934 Act) of the Parent shall only be made during the period set forth in Rule 16b-3 promulgated under the 1934 Act (or any successor rule or regulation), if any. 

 
 VII. EXERCISE. 
  
 An Option granted hereunder shall be exercisable in whole or in part only by written notice delivered in person or by mail
to the President of the Company or such other officer designated by the President, at its principal executive office, specifying the number of Shares to 

  

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 7 

 
be purchased and accompanied by payment therefor and other consideration in accordance with the Option. The holder of an Option shall not be deemed to be a
holder of any Shares subject to any Option and shall not be entitled to the rights of a holder of any Shares, including the right to vote the Shares and to receive dividends, unless and until such Shares have been issued. 
  
 VIII. TERMINATION AND AMENDMENT. 
  
 The Board of Directors may at any time terminate the Plan, or make such
amendments thereto or modifications thereof as it shall deem advisable, including amendments deemed necessary or desirable to conform any ISO to any change in the Code or regulations thereto; provided, however, that the Board of Directors may not,
without further approval by the shareholders of the Company, increase the maximum number of Shares for which Options may be granted under the Plan or change the designation of the class of employees and other persons eligible to receive Options. No
termination, modification or amendment of the Plan shall, without the consent of the Optionee to whom an Option shall theretofore have been granted, adversely affect the rights of such Optionee under such Option without the written consent of such
Optionee. 
  
 IX. MISCELLANEOUS. 
  

	A.	Applicable Law. The Plan shall be governed and construed in accordance with the laws of the State of Georgia. 

  

	B.	Employee/Employer Rights. The granting of Options hereunder shall be entirely discretionary and nothing in the Plan shall be deemed to give any person any right of continued
employment or give any person any right to receive Options or additional Options hereunder or interfere in any way with the right of the Company, its Parent or Subsidiary to terminate the Optionee’s employment for any reason or the right of the
Optionee to terminate his/her employment for any reason. Without prejudice to the generality of the foregoing, participation in this Plan is a matter entirely separate from any pension right or entitlement an Optionee may have and from their terms
and conditions of employment and in particular (but without limiting the generality of the foregoing) any individual who leaves the employment of the Company or its Subsidiaries, or the Parent or who otherwise ceases to be an employee shall not be
entitled to any compensation for any loss of any right or benefit or prospective right or benefit under the Plan which the Optionee might otherwise have enjoyed whether such compensation is claimed by way of damages for wrongful dismissal or other
breach of contract or by way of compensation for loss of office, employment or otherwise howsoever. 

  

	C.	ISO Grants. The Plan is intended to provide in part for the grant of ISO’s pursuant to Section 422 of the Code, including amendments thereto hereafter adopted, and
the provisions of the Plan as they relate to ISO’s and the ISO’s granted shall be construed to effectuate such purpose. If for any reason it is subsequently determined that an Option intended to qualify as an ISO does not so qualify, the
Company, Parent and Subsidiary shall have no liability to the Optionee and such Options shall be deemed to be Non-Qualified Stock Options. 

  

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 X. EFFECTIVE DATE. 
  
 The Plan shall become effective on the date of its adoption by the Board of Directors subject to the approval of the Plan by the shareholders of the
Company within twelve (12) months after the date of its adoption. The date of granting of an Option shall be the date on which the Committee makes the determination of granting such Option or such later date as designated by the Committee.

  

 CipherTrust Stock Option Plan 
  

 9Form of Restricted Stock Award Agreement

 Exhibit 10.14 
  
 

 
  
 2002 STOCK INCENTIVE PLAN

 RESTRICTED STOCK AWARD AGREEMENT 
  
 THIS RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”), dated ‹GRANT DATE› between Secure Computing Corporation, a Delaware
corporation (“Company”), and ‹EMPLOYEE›‹NAME› (the “Employee”), is entered into as follows: 
  
 WITNESSETH: 
  
 WHEREAS, the continued participation of the Employee is considered by the Company to be important for the Company's continued growth; and 
  
 WHEREAS, in order to give the Employee an incentive to continue in the employ
of the Company and to assure his or her continued commitment to the success of the Company, the Compensation Committee of the Board of Directors of the Company or its delegates (the “Administrator”) has determined that the Employee shall
be granted a stock award (“Stock Award”) covering shares of the Company's common stock (the “Shares”), subject to the restrictions stated below and in accordance with the terms and conditions of the 2002 Stock Incentive Plan
(the “Plan”). Capitalized terms used but not defined in this Agreement have the meanings assigned to them in the Plan. 
  
 THEREFORE, the parties agree as follows: 
  
 1. Grant of Stock Award. Subject to the terms and conditions of this Agreement and of the Plan, the Company hereby grants to the Employee a
Stock Award covering ‹SHARES› Shares and hereby issues such Shares to the Employee. 
  
 2. Vesting Schedule. Subject to Employee's not experiencing a Termination during the following vesting term, the interest of the
Employee in the Shares shall vest and become nonforfeitable as follows: Twenty-five percent (25%) of the restricted stock units vest in one year. The remainder of the restricted stock units shall vest in equal installments each quarter
thereafter until fully vested over the following three years. Therefore, provided the Employee has not experienced a Termination prior to the close of business as the vesting date, the interest of the Employee in the Shares shall become fully
vested and nonforfeitable on that date. The Shares will be held with the Company or an agent of the Company until the Shares have vested. Upon each vesting date the Company or the agent of the Company holding the Shares will surrender to the Company
a sufficient number of Shares acquired under this Agreement to satisfy applicable required withholding taxes as set forth in Section 7(a) below. 
  
 3. Termination. In the event of the Termination of the Employee, all of the Shares held by the Employee which have not vested and which
remain forfeitable as of the date of Termination shall be forfeited to the Company as of such date, without payment by the Company of any amount with respect thereto. Any forfeiture will be effected by the Company in such manner and to such degree
as the Administrator, in its sole discretion, determines, and will in all events (including as to the provisions of this Section 3) be subject to Applicable Laws. To enforce any restrictions on the Shares, the Administrator may require the
Employee to deposit the certificates representing the Shares, with stock powers or other transfer instruments approved by the Administrator endorsed in blank, with the Company or an agent of the Company to hold in escrow until the restrictions have
lapsed or terminated. The Administrator may also cause a legend or legends referencing the restrictions be placed on the certificates. 
  
 4. Change in Control. In the event that an Event occurs (as defined in the Plan) the Shares shall immediately become fully vested and
nonforfeitable effective as of immediately prior to and contingent upon consummation of the Event. 

 5. Transfer Restrictions. Except as otherwise provided for in this Agreement, the Shares or
rights granted hereunder may not be sold, pledged or otherwise transferred until the Shares become vested and nonforfeitable in accordance with Sections 2 and 3. 
  
 6. Stockholder Rights. The Employee shall be entitled to all of the rights and benefits generally accorded to
stockholders with respect to the Shares. All dividends on Shares that are subject to any restrictions, including vesting, shall be subject to the same restrictions, including those set forth in Section 2, as the Shares on which the dividends
were paid. 
  
 7. Taxes. 
  
 (a) The Employee shall be liable for any and all taxes, including
withholding taxes, arising out of this grant and the vesting of Shares hereunder, or any other transaction or event occurring with respect to the Shares if and to the extent required by Applicable Law. In the event that the Company is required to
withhold taxes at the time the Shares vest and the restrictions on the Shares lapse (or at such other time as required by applicable laws, including in connection with the filing of the Section 83(b) election described below), the Employee
shall make a cash payment in an amount necessary to satisfy applicable required withholding taxes, surrender a sufficient number of whole Shares acquired under this Agreement as are necessary to satisfy the applicable minimum statutory withholding
amount or satisfy the payment of the withholding taxes in a form agreed to by the Company. The Employee will receive a cash refund for any fraction of a surrendered Share not necessary for required withholding taxes. To the extent that any surrender
of Shares or payment of cash or alternative procedure for such payment is insufficient, the Employee authorizes the Company, its affiliates and subsidiaries, which are qualified to deduct tax at source, to deduct all applicable required withholding
taxes from the Employee's compensation. The Employee agrees to pay any amounts that cannot be satisfied from wages or other cash compensation, to the extent permitted by law. For purposes of this Agreement, the Company shall calculate any applicable
income required to be recognized and withholding taxes arising in connection with the issuance or vesting of the Shares using the same method of determining fair market value of a share of its common stock as the Company uses in determining fair
market value under the Plan.  
  
 (b) The Employee
understands that Section 83(a) of the Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary income the difference between the amount paid for the Shares and the fair market value of the Shares as of (i) the
date of issuance of the Shares in the case of vested Shares that are not subject to a substantial risk of forfeiture, and (ii) the date forfeiture restrictions on the Shares lapse. In this context, “restrictions” mean the forfeiture
obligation in the event of the Termination as set forth in Sections 2 and 3 of this Agreement and the restriction on transferability as set forth in Section 4 of this Agreement. The Employee understands that the Employee may elect to be
taxed as to the unvested Shares at the time such Shares are issued, based on the value of the Shares at the issuance date rather than when and as the forfeiture restrictions lapse (on the vesting dates), by filing an election under
Section 83(b) (an “83(b) Election”) of the Code with the Internal Revenue Service within 30 days from the date of issuance. The Employee acknowledges that the foregoing is only a summary of the effect of United States federal
income taxation with respect to issuance and vesting of the Shares hereunder, and does not purport to be complete. The Company has directed the Employee to seek independent advice regarding the applicable provisions of the Code, the income tax laws
of any municipality, state or foreign country in which Employee may reside, the tax consequences of the Employee’s death, and the decision as to whether or not to file an 83(b) Election (as well as appropriate advice and assistance with the
actual filing of any such 83(b) Election) in connection with the issuance of the Shares. The Company has not provided any tax advice to the Employee in connection with the issuance of the Shares hereunder. 
  
 (c) Regardless of any action the Company takes with respect to any or all
income tax, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Employee acknowledges and agrees that the ultimate liability for all Tax-Related Items legally due by him or her is and remains the
Employee's responsibility and that the Company (i) makes no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this issuance of Shares, including the vesting of the Shares or the
subsequent sale of the Shares; and (ii) does not commit to structure the terms or any aspect of this issuance of 

  

 2 

 
Shares to reduce or eliminate the Employee’s liability for Tax-Related Items. Prior to the vesting of the Shares, the Employee shall pay the Company any
amount of Tax-Related Items that the Company may be required to withhold as a result of the Employee’s receipt of Shares that cannot be satisfied by the means previously described. The Company may refuse to deliver the Shares if the Employee
fails to comply with the Employee’s obligations in connection with the Tax-Related Items. 
  
 8. Plan Information. The Employee acknowledges that the Employee has received copies of the Plan and the Plan prospectus from the Company and agrees to receive stockholder information, including copies
of any annual report, proxy statement and periodic report, from the Company’s website at: http://www.securecomputing.com/invest.cfm?p=irol-sec&skey=1049. The Employee acknowledges that copies of the Plan, Plan prospectus, Plan
information and stockholder information are available upon written or telephonic request to the Company’s legal department. 
  
 9. Acknowledgment and Waiver. By accepting this grant of a Stock Award, the Employee acknowledges and agrees that: 
  
 (a) the Plan is established voluntarily by the Company, it is
discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time unless otherwise provided in the Plan or this Agreement; 
  
 (b) the grant of Stock Awards is voluntary and occasional and does not create any contractual or other right to receive
future grants of Stock Awards or Shares, even if Stock Awards or Shares have been granted repeatedly in the past; 
  
 (c) the Employee’s participation in the Plan shall not create a right to further employment with Employer, shall not create an employment
agreement between the Employee and his or her Employer and shall not interfere with the ability of Employer to terminate the Employee's employment relationship at any time with or without cause and it is expressly agreed and understood that
employment is terminable at the will of either party, insofar as permitted by law; 
  
 (d) Stock Award grants, Shares and resulting benefits are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or the Employer, and is outside
the scope of the Employee’s employment contract, if any; and Stock Award grants, Shares and resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any
severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments insofar as permitted by law; and 
  
 (e) in consideration of this grant of a Stock Award, no claim or entitlement to compensation or damages shall arise
from termination of this Stock Award or diminution in value of the Shares resulting from Termination by the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws) and the Employee irrevocably releases
the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting the terms of this Agreement, the Employee shall be
deemed irrevocably to have waived any entitlement to pursue such claim. 
  
 10. Miscellaneous. 
  
 (a) The Company
shall not be required to treat as the owner of Shares, and associated benefits hereunder, any transferee to whom such Shares or benefits shall have been so transferred in violation of this Agreement. 
  
 (b) The parties agree to execute such further instruments and to take such
action as may reasonably be necessary to carry out the intent of this Agreement. 
  
 (c) Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon delivery to the Employee at Employee’s address then on file with the Company. 
  

 3 

 (d) The Plan is incorporated herein by reference. The Plan and this Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof, and may not be modified adversely to
the Employee's interest except by means of a writing signed by the Company and the Employee. This Agreement is governed by the laws of the state of Delaware. In the event of any conflict between the terms and provisions of the Plan and this
Agreement, the Plan terms and provisions shall govern. Certain other important terms governing this contract are contained in the Plan. 
  
 (e) The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or
in part, the remaining provisions shall nevertheless be binding and enforceable. 
  

									
	 	 	 	 	SECURE COMPUTING CORPORATION
				
	 Accepted by Employee:
  
	 	 	 	  
 By
	 	 
	 	 	 	 	 	 	 	 	 Tim Steinkopf
 Senior Vice President, CFO

  
 RETAIN THIS AGREEMENT FOR YOUR
RECORDS 
  

 4

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