Document:

2004 EMPLOYEE STOCK PURCHASE PLAN

 Exhibit 10.7 
 Marchex, Inc. 
 2004 EMPLOYEE STOCK PURCHASE PLAN 

As amended on December 8, 2005 
  

	1.	Purpose. 

 It is the purpose of this
Employee Stock Purchase Plan to provide a means whereby eligible employees may purchase Class B common stock of Marchex, Inc. (the “Company”) through after-tax payroll deductions. It is intended to provide a further incentive for employees
to promote the best interests of the Company and to encourage stock ownership by employees in order that they may participate in the Company’s economic growth. It is the intention, but not the obligation, of the Company that the Plan qualify as
an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code, and that the provisions of this Plan be construed in a manner consistent with the Code. 

 

	2.	Definitions. 

 The following words or
terms, when used herein, shall have the following respective meanings: 
 (a) “Account” means the Employee Stock Purchase Account
established for a Participant under Section 7 hereunder. 
 (b) “Board of Directors” shall mean the Board of Directors of the
Company. 
 (c) “Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 (d) “Committee” shall mean the committee described in Section 5. 
 (e) “Common Stock” shall mean shares of the Company’s Class B common stock with a par value of $.01 per share. 
 (f) “Company” shall mean Marchex, Inc., a Delaware corporation. 
 (g)
“Compensation” means the amount of money reportable on the employee’s Federal Income Tax Withholding Statement, excluding overtime, shift premium, incentive or bonus awards, allowances and reimbursements for expenses such as
relocation allowances for travel expenses, income or gains on the exercise of Company stock options or stock appreciation rights, and similar items, whether or not shown on the employee’s Federal Income Tax Withholding Statement.
Notwithstanding the foregoing, the Board of Directors or Committee in its sole discretion from time to time may substitute another definition of compensation to be eligible to be taken into account under the Plan, provided that no such determination
shall include or exclude any type or amount of Compensation contrary to the requirements of Section 423 of the Code. 
 (h) “Effective
Date” shall mean the first date that the Company’s Common Stock is publicly traded as a result of the Company’s initial underwritten public offering (“IPO”) of shares of its Common Stock, with gross proceeds in excess of $20
million, pursuant to an effective registration statement filed by the Company under the Securities Act of 1933, as amended. 
 (i)
“Eligible Employees” shall mean all persons employed by the Company or a Subsidiary and classified by the Company or the Subsidiary as an employee for federal income tax withholding purposes, but excluding: 

(1) Persons who have been employed by the Company or a Subsidiary for less than three months on the first day of the Purchase Period, with the exception
of a person previously eligible; 
 (2) Persons whose customary employment is less than twenty hours per week or five months or less per year;
and 
 (3) Persons who are deemed for purposes of Section 423(b)(3) of the Code to own stock possessing 5% or more of the total combined
voting power or value of all classes of stock of the Company or a Subsidiary. 
 Except as otherwise provided in Section 12, for purposes
of the Plan, the employment relationship shall be treated as continuing intact while an individual is on military leave or other leave of absence approved by the Company or a Subsidiary. Where the period of leave exceeds 90 days and the
individual’s right to re-employment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave. 

  
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 (j) “Exercise Date” shall mean the last day of a Purchase Period; provided, however, that if such
date is not a business day, “Exercise Date” shall mean the immediately preceding business day. 
 (k) “Participant” shall
mean an Eligible Employee who elects to participate in the Plan under Section 6 hereunder. 
 (l) “Plan” shall mean the Marchex,
Inc. 2004 Employee Stock Purchase Plan. 
 (m) “Purchase Periods” shall mean the four purchase periods within each
calendar year, the first commencing on January 1st of each calendar year and continuing through the March 31st of such calendar year, the second commencing on April 1st of each calendar year and continuing through June 30th of such calendar year, the third commencing on
July 1st of each calendar year and continuing through the September 30th of such calendar year, and the fourth commencing on
October 1st of each calendar year and continuing
through December 31st of such calendar year. However,
the first Purchase Period shall commence on the first date that the Common Stock is publicly traded as a result of the Company’s IPO and shall end on the last day of the quarter in which the IPO occurs. 

(n) “Purchase Price” for each share purchased shall be 85% of the closing price of the Common Stock on (i) the first business day of such
relevant Purchase Period, or (ii) the relevant Exercise Date, whichever closing price shall be less. Notwithstanding the foregoing, effective January 1, 2006, the “Purchase Price” for each share purchased shall be 95% of the
closing price of Common Stock on the Exercise Date. Such closing price shall be (a) the closing price on any national securities exchange on which the Common Stock is listed, (b) the closing price of the Common Stock on the Nasdaq National
Market, or (c) the average of the closing bid and asked prices in the over-the-counter-market, whichever is applicable, as published in The Wall Street Journal; provided, however, that, with respect to the first Purchase Period, the closing
price on the Effective Date shall be the initial public offering price provided for in the underwriting agreement entered into by the Company in connection with the IPO. If no sales of Common Stock were made on such a day, the price of the Common
Stock for purposes of clauses (a) and (b) above shall be the reported price for the next preceding day on which sales were made. 

(o) “Subsidiary” shall mean any present or future corporation which (i) would be a subsidiary corporation as defined in
Section 424(f) of the Code, and (ii) is designated by the Board of Directors as a participating employer for purposes of this Plan. 
  

	3.	Grant of Option to Purchase Shares. 

 Each
Eligible Employee shall be granted an option (“Option”) effective on the first day of each Purchase Period to purchase shares of Common Stock. The term of the Option shall be the length of the Purchase Period. The number of shares subject
to each Option shall be the quotient of the aggregate payroll deductions in the Purchase Period authorized by each Participant in accordance with Section 6 divided by the Purchase Price, but in no event shall the number of shares subject to
each Option be in excess of 1,000 shares per Purchase Period (subject to adjustment in accordance with Section 4), or such other number of shares as determined from time to time by the Board of Directors or the Committee. Notwithstanding the
foregoing, no employee shall be granted an Option which permits his right to purchase shares under the Plan to accrue at a rate which exceeds in any one calendar year $25,000 (or such other amount as may be prescribed from time to time under
Section 423 of the Code) of the fair market the value of the Common Stock as of the date the Option to purchase is granted. 
  

	4.	Shares. 

 Subject to adjustment upon
changes in capitalization of the Company as provided this Section 4, the maximum number of shares of Common Stock which shall be made available for issuance to and purchase by Participants under this Plan shall be 300,000 shares. The shares of
Common Stock subject to the Plan shall be either shares of authorized but unissued Common Stock or shares of Common Stock reacquired by the Company and held as treasury shares. Shares of Common Stock not purchased under an Option terminated pursuant
to the provisions of the Plan may again be subject to Options granted under the Plan. The aggregate number of shares of Common Stock which may be purchased pursuant to Options granted hereunder, the number of shares of Common Stock covered by each
outstanding Option, and the purchase price for each such Option shall be appropriately adjusted for any increase or decrease in the number of outstanding shares of Common Stock resulting from a stock split or other subdivision or consolidation of
shares of Common Stock or for other capital adjustments or payments of stock dividends or distributions or other increases or decreases in the outstanding shares of Common Stock effected 

  
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without receipt of consideration by the Company provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Board of Directors whose determination in that respect shall be binding and conclusive. 
  

	5.	Administration. 

 The Plan shall be
administered by the Board of Directors or a Committee (which may be the same committee as the Company’s compensation committee) as may be appointed from time to time by the Board of Directors. Committee members shall be ineligible to
participate under the Plan. All members of the Committee shall serve at the discretion of the Board. The Board of Directors or the Committee, if one has been appointed, is vested with full authority to interpret the terms of the Plan, to remedy any
ambiguity, inconsistency, or omission, and to make, administer and interpret such equitable rules and regulations regarding the Plan as it may deem advisable. The Board of Directors, or the Committee’s, if one has been appointed, determinations
as to the interpretation and operation of the Plan shall be final and conclusive. No member of the Board of Directors or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Option granted
under the Plan. 
  

	6.	Election to Participate. 

 An Eligible
Employee may elect to become a Participant in the Plan for a Purchase Period by completing a “Stock Purchase Agreement” form prior to the first day of the Purchase Period for which the election is made. Such Stock Purchase Agreement shall
be in such form as shall be determined from time to time by the Board of Directors or the Committee. The election to participate shall be effective for the Purchase Period for which it is made. The Stock Purchase Agreement shall remain in effect for
successive Purchase Periods unless modified as provided in Section 9 or terminated or suspended as provided in Sections 11 and 12. There is no limit on the number of Purchase Periods for which an Eligible Employee may elect to become a
Participant in the Plan. In the Stock Purchase Agreement, the Eligible Employee shall authorize regular payroll deductions of any full percentage of his Compensation, but in no event less than one percent (1%) or more than fifteen percent
(15%) of his Compensation. Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3 herein, a Participant’s payroll deductions may be decreased during any Purchase Period
scheduled to end during the current calendar year to 0%. Payroll deductions shall re-commence at the rate provided in such Participant’s Stock Purchase Agreement at the beginning of the first Purchase Period that is scheduled to end in the
following calendar year, unless terminated by the Participant as provided in Section 9. Except as otherwise provided in Section 9, an Eligible Employee may not change his authorization during a Purchase Period to which the election
applies. Options granted to Eligible Employees who have failed to execute a Stock Purchase Agreement within the time Periods prescribed by the Plan will automatically lapse. 

 

	7.	Employee Stock Purchase Account. 

 An
Employee Stock Purchase Account will be established for each Participant in the Plan for bookkeeping purposes, and payroll deductions made under Section 6 will be credited to such Accounts. However, prior to the purchase of shares in accordance
with Section 8 or withdrawal from or termination of the Plan in accordance with the provisions hereof, the Company may use for any valid corporate purpose all amounts deducted from a Participant’s compensation under the Plan and credited
for bookkeeping purposes to his account. The Company shall be under no obligation to pay interest on funds credited to a Participant’s account, whether upon purchase of shares in accordance with Section 8 or upon distribution in the event
of withdrawal from or termination of the Plan as herein provided. 
  

	8.	Purchase of Shares. 

 Each Eligible
Employee who is a Participant in the Plan automatically and without any act on his part will be deemed to have exercised his Option on each Exercise Date to the extent that the balance then in his Account under the Plan is sufficient to purchase at
the Purchase Price whole shares of the Company’s stock subject to his Option and the limitations described in Section 3. Any balance remaining in the Participant’s Account shall be carried forward and credited for use in the next
Purchase Period. If the Employee chooses not to participate in the next Purchase Period, any balance will be refunded to him in cash. 

  
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	9.	Withdrawal. 

 A Participant who has
elected to authorize payroll deductions for the purchase of shares of Common Stock may cancel his election by written notice of cancellation (“Cancellation”) delivered to the office or person designated by the Company to receive Stock
Purchase Agreements, but any such Cancellation must be so delivered not later than ten (10) days before the relevant Exercise Date. A Participant will receive in cash, as soon as practicable after delivery of the Cancellation, the amount
credited to his Account. Any Participant who so withdraws from the Plan may again become a Participant at the start of the next Purchase Period in accordance with Section 6. 

 

	10.	Issuance of Stock Certificates. 

 The
shares of Common Stock purchased by a Participant shall, for all purposes, be deemed to have been issued and sold at the close of business on the Exercise Date. Prior to that date none of the rights or privileges of a stockholder of the Company,
including the right to vote or receive dividends, shall exist with respect to such shares. 
 Within a reasonable time after the Exercise Date,
the Company shall issue and deliver a certificate for the number of shares of Common Stock purchased by a Participant for the Purchase Period, which certificate shall be registered either in the Participant’s name, or jointly in the names of
the Participant and his spouse, as the Participant shall designate in his Stock Purchase Agreement. Such designation may be changed at any time by filing notice thereof with the person designated by the Company to receive such notices. 

 

	11.	Termination of Employment. 

 Upon a
Participant’s termination of employment for any reason, other than death, no payroll deduction may be made from any compensation due him and the entire balance credited to his Account shall be automatically refunded, and his rights under the
Plan shall terminate. Upon the death of a Participant, no payroll deduction shall be made from any compensation due him at time of death, and the entire balance in the deceased Participant’s Account shall be paid in cash to the
Participant’s designated beneficiary, if any, under a group insurance plan of the Company covering such employee, or otherwise to his estate, and his rights under the Plan shall terminate. 

 

	12.	Temporary Layoff and Authorized Leave of Absence; Long Term Disability. 

 Except as otherwise provided by applicable law, payroll deductions shall cease during a period of absence from work due to a Participant’s temporary layoff, authorized leave of absence without pay,
disability for which benefits are not payable from the Company. If such Participant shall return to active service prior to the Exercise Date for the current Purchase Period, payroll deductions shall be resumed. He shall not be entitled to make up
the deficiency in his Account caused by his absence and, accordingly, the number of shares to be purchased shall be reduced. If the Participant shall not return to active service prior to the Exercise Date for the current Purchase Period, and the
Participant was absent for more than fifty percent (50%) of the weeks in the Purchase Period, his Stock Purchase Agreement shall be terminated and the balance in his Account shall be refunded. All other Participants will have an option to
cancel their election in accordance with Section 9. 
  

	13.	Rights Not Transferable; Restrictions on Transfer. 

 The right to purchase shares of Common Stock under this Plan is exercisable only by the Participant during his lifetime and is not transferable by him. If a Participant attempts to transfer his right to
purchase shares under the Plan, he shall be deemed to have requested withdrawal from the Plan and the provisions of Section 9 hereof shall apply with respect to such Participant. 

 

	14.	No Guarantee of Continued Employment. 

Granting of an Option under this Plan shall imply no right of continued employment with the Company for any Eligible Employee. 

  
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	15.	Notice. 

 Any notice which an Eligible
Employee or Participant files pursuant to this Plan shall be in writing and shall be delivered personally or by mail addressed to the Company’s General Counsel, c/o Marchex, Inc., 2101 Fourth Avenue, Suite 1980, Seattle, Washington 98121. Any
notice to a Participant or an Eligible Employee shall be conspicuously posted in the Company’s principal office or shall be mailed addressed to the Participant or Eligible Employee at the address designated in the Stock Purchase Agreement or in
a subsequent writing. 
  

	16.	Merger. 

 (a) If the Company shall at any
time merge or consolidate with another corporation and the holders of the capital stock of the Company immediately prior to such merger or consolidation continue to hold at least 80% by voting power of the capital stock of the surviving corporation
(“Continuity of Control”), the holder of each Option then outstanding will thereafter be entitled to receive at the next Exercise Date upon the exercise of such Option for each share as to which such Option shall be exercised the
securities or property which a holder of one share of the Common Stock was entitled to upon and at the time of such merger or consolidation, and the Board of Directors or the Committee shall take such steps in connection with such merger or
consolidation as the Board of Directors or the Committee shall deem necessary to assure that the provisions of Section 4 shall thereafter be applicable, as nearly as reasonably may be, in relation to the said securities or property as to which
such holder of such Option might thereafter be entitled to receive thereunder. 
 (b) In the event of a merger or consolidation of the Company
with or into another corporation which does not involve Continuity of Control, or of a sale of all or substantially all of the assets of the Company while unexercised Options remain outstanding under the Plan, (a) subject to the provisions of
clauses (b) and (c), after the effective date of such transaction, each holder of an outstanding Option shall be entitled, upon exercise of such Option, to receive in lieu of shares of Common Stock, shares of such stock or other securities as
the holders of shares of Common Stock received pursuant to the terms of such transaction; or (b) all outstanding Options may be cancelled by the Board of Directors or the Committee as of a date prior to the effective date of any such
transaction and all payroll deductions shall be paid out to the participating employees; or (c) all outstanding Options may be cancelled by the Board of Directors or the Committee as of the effective date of any such transaction, provided that
notice of such cancellation shall be given to each holder of an Option, and each holder of an Option shall have the right to exercise such Option in full based on payroll deductions then credited to his account as of a date determined by the Board
of Directors or the Committee, which date shall not be less than ten 

	(10)	days preceding the effective date of such transaction. 

  

	17.	Application of Funds. 

 All funds deducted
from a Participant’s compensation in payment for shares purchased or to be purchased under this Plan may be used for any valid corporate purpose provided that the Participant’s Account shall be credited with the amount of all payroll
deductions as provided in Section 7. 
  

	18.	Government Approvals or Consents. 

 This
Plan and the Company’s obligation to sell and deliver Common Stock under this Plan is subject to listing on a national stock exchange or quotation on the Nasdaq National Market (to the extent the Common Stock is then so listed or quoted) and
the approval of all governmental authorities required in connection with the authorization, issuance or sale of such stock. Subject to the provisions of Section 19, the Board of Directors may make such changes in the Plan and include such terms
in any offering under this Plan as may be necessary or desirable, in the opinion of counsel, to comply with the rules or regulations of any governmental authority, or to be eligible for tax benefits under the Code or the laws of any state, or in the
opinion of the Company’s auditors, to eliminate or reduce any unfavorable financial accounting consequences. 
  

	19.	Amendment of the Plan. 

 The Board of
Directors may, without the consent of the Participants, amend the Plan at any time, provided that, except as otherwise provided in this Plan, no such action shall adversely affect Options theretofore granted hereunder and no such amendment (without
approval by the company’s stockholders) shall: (i) increase the total number of shares of Common Stock which may be purchased by all Participants or (ii) change the class of 

  
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Employees eligible to receive Options under the Plan. For purposes of this Section 19, termination of the Plan by the Board of Directors pursuant to Section 20 shall not be deemed to be
an action which adversely affects Options theretofore granted hereunder. 
  

	20.	Term of the Plan. 

 The Plan shall become
effective on the Effective Date. The Plan will terminate on the date which is ten years from the earlier of the date of its adoption and the date of its approval by the stockholders of the Company, provided, however, that the Board of Directors
shall have the right to terminate the Plan at any time. In the event of the expiration of the Plan or its termination, all Options then outstanding under the Plan shall automatically be canceled and the entire amount credited to the Account of each
Participant hereunder shall be refunded to each such Participant without interest. 
  

	21.	Notice to Company of Disqualifying Dispositions. 

 By electing to participate in the Plan, each Participant agrees to notify the Company in writing immediately after the Participant transfers Common Stock acquired under the Plan, if such transfer occurs
within two years after the first business day of the Purchase Period in which such Common Stock was acquired. Each Participant further agrees to provide any information about such a transfer as may be requested by the Company or any Subsidiary in
order to assist it in complying with any applicable tax laws. The Participant acknowledges that the Company may send a W-2, or substitute therefor, as appropriate, to the Participant with respect to any income recognized by the Participant upon a
disqualifying disposition of Common Stock. 
  

	22.	Withholding of Taxes. 

 Each Participant
must make adequate provision for the Company’s federal, state or other tax withholding obligations, if any, which may arise upon the exercise of the Option or the disposition of the Common Stock. At any time, the Company may, but shall not be
obligated to, withhold from the Participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits
attributable to sale or early disposition of Common Stock by the Participant. 
  

	23.	General. 

 Whenever the context of this
Plan permits, words in any gender shall include any other gender, words in the singular shall include the plural and the plural shall include the singular. 
  

	24.	Governing Law. 

 The internal substantive
laws of the State of Delaware shall govern all matters relating to this Plan. 

  
 6Marchex, Inc. Amended and Restated Annual Incentive Plan

 Exhibit 10.32 
 MARCHEX, INC. AMENDED & RESTATED 
 ANNUAL INCENTIVE PLAN

 Marchex, Inc., a Delaware corporation (the “Company”), established the Marchex, Inc. Annual Incentive Plan,
effective as of January 1, 2007 and as amended effective January 1, 2011 (the “Incentive Plan”). The purpose of the Incentive Plan is to motivate and reward performance resulting in the achievement of corporate objectives, to
increase the competitiveness of pay without increasing fixed costs and to align the compensation of the management team to key financial drivers. 
 ARTICLE I. 
 DEFINITIONS 

Section 1.1—Base Compensation. “Base Compensation,” with respect to a fiscal year, shall mean the
Participant’s rate of annual base salary as in effect as of the last day of such fiscal year and shall exclude moving expenses, bonus pay and other payments which are not considered part of annual base salary. 

Section 1.2—Board. “Board” shall mean the Board of Directors of the Company. 

Section 1.3—Code. “Code” shall mean the Internal Revenue Code of 1986, as amended. Any reference to a section
of the Code herein shall be deemed to include a reference to the regulations promulgated under such section. 

Section 1.4—Committee. “Committee” shall mean the Compensation Committee of the Board. 

Section 1.5—Disability. “Disability” shall mean a permanent and total disability, within the meaning of
Section 22(e)(3) of the Code. 
 Section 1.6—Participant. “Participant” shall mean, with respect
to any fiscal year during the term of the Incentive Plan, a key employee of the Company selected by the Committee to participate in the Incentive Plan in accordance with Section 2.3 hereof. 

ARTICLE II. 

BONUS AWARDS 
 Section 2.1—Bonus Pool. Each fiscal year the Committee shall determine the maximum aggregate amount of the bonus pool to be awarded hereunder for such fiscal year. 

Section 2.2—Performance Targets. A Participant shall be eligible to earn a bonus award under the Incentive Plan based on
the achievement of performance targets by the Company, as determined by the Committee for each fiscal year of the Company. The performance targets for a fiscal year shall be determined on or before March 31st of such year and shall be based on
the following objective business criteria and measured against such performance targets, as the Committee determines: (a) revenues; (b) pre-tax income; (c) adjusted operating income before amortization; (d) operating income
before amortization; (e) operating income; (f) net earnings; (g) net income; (h) cash flow or funds from operations; (i) adjusted earnings per share; (j) earnings per share; (k) appreciation in the fair market
value of the Company’s stock; (l) cost reductions or savings; (m) implementation of critical processes or projects; or (n) adjusted EBITDA or earnings before any of the following items: interest, taxes, depreciation or
amortization. 
 Section 2.3—Bonus Awards. Each individual who (a) is a key employee and (b) who is
selected by the Committee to participate in the Incentive Plan with respect to such fiscal year, shall be eligible for a bonus award with respect to such fiscal year under this Incentive Plan. Each bonus award shall be in the sole discretion of the
Committee based on its assessment of (i) the Company’s achievement of the performance targets established by the Committee for the applicable fiscal year, and (ii) the Participant’s performance during such fiscal year.

 ARTICLE III. 
 PAYMENT OF BONUS AWARD 
 Section 3.1—Form of Payment. Each
Participant’s bonus award shall be paid in cash. 

 Section 3.2—Timing of Payment. Unless a Participant has properly elected
to defer all or part of a bonus award under a deferred compensation plan sponsored by the Company, each bonus award made by the Committee shall be paid within seventy (70) days after the end of the fiscal year to which such bonus award relates.

 ARTICLE IV. 
 TERMINATIONS 
 A Participant who, whether voluntarily or involuntarily, is
terminated, demoted, transferred or otherwise ceases to be a key employee at any time during a fiscal year shall not be eligible to receive a partial fiscal year bonus award; provided, however, that if a Participant has executed an individually
negotiated employment contract or agreement with the Company providing otherwise, such Participant’s entitlement to a bonus award for such fiscal year shall be governed by the terms of the individually negotiated employment contract or
agreement. 
 Notwithstanding the terms of the previous paragraph, in the event of a Participant’s death or disability, or
in the event of a change in ownership or control, the Committee may, in its sole discretion, provide partial fiscal year bonus awards to affected Participants. 
 ARTICLE V. 
 ADMINISTRATION 

It shall be the duty of the Committee to conduct the general administration of the Incentive Plan in accordance with its provisions. The
Committee shall have the power to interpret the Incentive Plan, and to adopt such rules for the administration, interpretation and application of the Incentive Plan as are consistent therewith and to interpret, amend or revoke any such rules. All
actions taken and all interpretations and determinations made by the Committee or the Board in good faith shall be final and binding upon all parties. 
 ARTICLE VI. 
 OTHER PROVISIONS 

Section 6.1—Amendment, Suspension or Termination of the Incentive Plan. This Incentive Plan does not constitute a
promise to pay and may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board. 
 Section 6.2—Miscellaneous. 
 (a) The Company shall deduct all
federal, state and local taxes required by law or Company policy from any bonus paid to a Participant hereunder. 
 (b) In no
event shall the Company be obligated to pay to any Participant a bonus award for a fiscal year by reason of the Company’s payment of a bonus to such Participant in any other fiscal year. 

(c) The rights of Participants under the Incentive Plan shall be unfunded and unsecured. Amounts payable under the Incentive Plan are not
and will not be transferred into a trust or otherwise set aside. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any bonus under the Incentive Plan.

 (d) Nothing contained herein shall be construed as a contract of employment or deemed to give any Participant the right to be
retained in the employ of the Company, or to interfere with the rights of the Company to discharge any individual at any time, with or without cause, for any reason or no reason, and with or without notice except as may be otherwise agreed in
writing. 
 (e) No rights of any Participant to payments of any amounts under the Incentive Plan shall be sold, exchanged,
transferred, assigned, pledged, hypothecated or otherwise disposed of other than by will or by laws of descent and distribution, and any such purported sale, exchange, transfer, assignment, pledge, hypothecation or disposition shall be void.

 (f) Any provision of the Incentive Plan that is prohibited or unenforceable shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions of the Incentive Plan. 

 (g) The Incentive Plan and the rights and obligations of the parties to the Incentive Plan
shall be governed by, and construed and interpreted in accordance with, the law of the State of Washington (without regard to principles of conflicts of law). 
 *    *    *    *    *

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