Document:

eXalt Solutions, Inc. Agreement

  
 Exhibit 10.1

  
 EXALT SOLUTIONS, INC. 
 APPLICATION SERVICE PROVIDER AGREEMENT 
  
 THIS AGREEMENT is by and between eXalt Solutions, Inc., a Massachusetts corporation, with offices at 98 Kinnaird St., Suite B, Cambridge, MA 02139
(“eXalt”) and the following Customer: 
  

			
	 Customer:
	  	 Source Atlantic Inc., as incorporated in STATE OR
 COMMONWEALTH OF Delaware

		
	 Customer Address:
	  	55 Accord Park Dr
		
	 	  	Rockland, Ma
		
	 	  	 Attention: Chris Sanborn
 Tel: 781-871-8500

Facsimile: 781-871-1059
 E-mail:
c.Sanborn@sourceatlantic.com

  
 eXalt agrees to
provide to Customer application services and hosting services, including server networking and hardware, for the modules of proprietary software set forth on Schedule A , subject to the attached Terms and Conditions of this Agreement:

  
 Executed under seal as of 16 May 2003 (the “Effective Date”).

  

									
	 EXALT SOLUTIONS, INC.
	 	 	 	 CUSTOMER:

	 	 	 	 	 Source Atlantic Inc

					
	By:	 	 /s/
	 	 	 	By:	 	 /s/

					
	 Name:
	 	Leslie Swanson	 	 	 	 Name:
	 	Chris Sanborn
					
	 Title:
	 	President	 	 	 	 Title:
	 	Vice President Operations

  

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 MASTER TERMS AND CONDITIONS 
  
 ARTICLE I – DEFINITIONS. 
  

	1.1	“Application Service Provided Content” shall mean the Customer Content as augmented by the eXalt Matter, generated through the use of the Software.

  

	1.2	“Application Services” shall mean the Application Services described on Schedule A, as such Schedule A may be amended from time to time upon the mutual
written agreement of the parties hereto, and the Application Service Provided Content. Customer may elect additional Application Services during the Term through the parties’ execution of an additional or amended Schedule A.

  

	1.3	“Authorized Syndication” shall mean the downloading or exporting of “Machine Readable Content for Syndication” from the eXalt repository, using the Syndication
Module, by licensed users authorized by Customer. Such Authorized Syndication users shall be subject to a license agreement consistent with the terms attached hereto as Exhibit 1 to Schedule H. Authorized Syndication is not meant to include
the downloading or exporting of any incidental excerpts which occur through the normal permitted use of the Bill of Materials and/or Catalogue Modules. 

  

	1.4	“Brand Features” shall mean the trademarks, service marks, logos and other distinctive brand features of eXalt or Customer, as applicable. 

  

	1.5	“Customer Content” shall mean, collectively all text, data, images, sounds, photographs, illustrations, graphics, programs, code and other materials, that are purchased or
otherwise owned by Customer or that are developed by Customer or on behalf of Customer by any third party other than eXalt, whether prior to or during the term of the Agreement and (a) that are (i) provided by Customer to eXalt in accordance with
the terms of Schedule H, as the same may be amended from time to time, or (ii) collected by eXalt in connection with the Application Services, and (b) reside in the eXalt repository. 

  

	1.6	“Error” means any error, problem, or defect resulting from an incorrect functioning of Application Services, if such an error, problem, or defect causes the Application
Services to materially fail to meet their applicable specifications as provided in this Agreement. 

  

	1.7	“eXalt Matter” shall mean, collectively, all materials, domain name(s) and similar information, data and materials collected and/or owned by eXalt, which is accessible or
available through the Application Services, including without limitation rules, relationships and indices pertaining to, and augmentation of, Customer Content, but not including the underlying Customer Content. 

  

	1.8	“Intellectual Property Rights” shall mean all rights in and to trade secrets, patents, copyrights, trademarks, know-how, and similar rights of any type under the laws of
any governmental authority, domestic or foreign, including rights in and to all applications and registrations relating to any of the foregoing. 

  

	1.9	“Machine Readable Content” means the Customer Content, or any portion thereof, in machine readable format. 

  

	1.10	“Software” shall mean the software/code underlying the Application Services, including any eXalt technology or technology licensed by eXalt from third parties used to
develop, operate, maintain and enhance such Software, including content presentation technology, tools, security technology, authorization scripts, and technology containing any of the foregoing. 

  
 ARTICLE II –EXALT OBLIGATIONS. 
  

	2.1	Content: eXalt shall customize the Customer Content, which when used in conjunction with the Software and the eXalt Matter, shall produce the Application Service Provided
Content, pursuant to the specifications and/or other requirements attached hereto as Schedule C. 

  

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	2.2	Project Manager: eXalt and Customer shall each select one (1)-program manager who will be responsible for directing and overseeing all activities regarding this Agreement and
for transmitting and receiving all communications regarding this Agreement on behalf of its respective party. Each party may change its designated program manager at any time effective upon providing written notice to the other party.

  

	2.3	“Go Live” Procedures eXalt shall make available the ability for Customer to view and review the Application Services prior to going live with the Customer’s
site. During such review period, Customer and eXalt will determine mutually acceptable performance levels for the Application Services in accordance with the criteria set forth in Schedule D. Within fourteen (14) days after making the ability
to view the Application Services available, Customer may provide eXalt with a written list of desired reasonable modifications to the viewer experience, in accordance with the established criteria. eXalt will use commercially reasonable efforts to
make the requested modifications and shall make the modified site available to the Customer within a commercially reasonable period of time given the number and complexity of the modifications. 

  

	2.4	Software and Hosting Services: eXalt will provide access to the Application Services via the Internet to Customer and Authorized Syndications. eXalt may elect to host the
Software or, alternatively, subcontract for such services with third party application hosting providers (“third party provider”) in its discretion. In the event that eXalt subcontracts with a third party application hosting provider, such
provider’s terms and conditions of service are attached as Schedule E. Customer acknowledges that it has read such terms and conditions of service and agrees to be bound thereby, to the extent that such terms and conditions are
applicable to Customer. In the event that eXalt elects to change its third party provider, eXalt shall use commercially reasonable efforts to find a third party provider that shall continue to provide comparable services and shall notify Customer of
such third party provider’s terms and conditions. Customer shall review and to the extent reasonable, agree to be bound to any new or additional terms. eXalt shall use commercially reasonable efforts to provide up-to-date virus scanning
software, to safeguard passwords, to use and maintain firewalls, and to maintain the Application Services in a secure environment. Subject to the performance level criteria described in Schedule D, eXalt does not warrant that any hosting
service or the server that makes it available are free of viruses or other harmful components or that Customer, end users and other third parties will have uninterrupted access to such server. Whether or not eXalt provides such services directly,
eXalt and its third party providers do not and cannot control the flow of data to or from servers to other portions of the Internet. Such flow depends in large part on the performance of Internet services provided or controlled by third party
providers. At times, actions or inactions caused by these third party providers can produce situations in which availability of hosting services may be impaired or disrupted. In addition, Customer agrees that neither eXalt nor its suppliers shall,
under any circumstances, be held responsible or liable for situations where the data stored or communicated through the Application Services are accessed by third parties through illegal or illicit means including situations where such data is
accessed through the exploitation of security gaps, weaknesses or flaws which may exist. Although eXalt will not systematically monitor content which is submitted by third parties to, stored on or distributed via any hosting service, eXalt reserves
the right, in its reasonable discretion, to edit or delete any information or other content regardless of whether use of such material is otherwise permitted under applicable law or this Agreement. eXalt disclaims any and all liability resulting
from or related to such events described in this Section 2.4. In the event of service outages at the Credit Threshold level determined in accordance with Schedule D, eXalt shall appropriately credit Customer’s account as more fully set
forth in Schedule D. Such credits shall be Customer’s exclusive remedy with respect to outages. THIS SECTION 2.4 STATES EXALT’S AND ITS SUPPLIERS’ ENTIRE LIABILITY AND CUSTOMER’S EXCLUSIVE REMEDY FOR SERVICE OUTAGES.

  

	2.5	Maintenance and Support. In addition to the license granted by eXalt to Customer pursuant to Section 3.2 of this Agreement, eXalt will provide maintenance and support
services for the Application Services in accordance with Schedule F and this Section 2.5. When Customer suspects an Error in the Application Services, it shall submit a listing of output and such data as required to reproduce operating conditions
similar to those present when the suspected Error occurred. eXalt will use commercially reasonable efforts to address any Application Services Errors resulting from and replicated in the Application Services during the term of this Agreement. If the
corrections are necessary due to Customer Content, Third-party Content (as defined in 5.2) or as a result of a Customer’s requested changes in the operating environment, then upon Customer’s request, eXalt may provide corrections at
eXalt’s then prevailing rates. 

  

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	2.6	Software Enhancements. eXalt shall perform the Software enhancements for Customer as described in Exhibit I, Software Enhancements, Scope of Service. Changes to the Scope of
Services may only be made in writing executed by both parties. 

  

	2.7	Custom Modifications. Any custom modifications to the Software which Customer may request are beyond the scope of this Agreement and shall be subject to eXalt’s standard
terms and conditions then in effect and a separate written agreement between the parties. 

  
 ARTICLE III – LICENSE; OWNERSHIP 
  

	3.1	Use of Application Services. The access to and use of the Application Services by the Customer shall be subject to this Agreement, and to privacy policies, which privacy
policies may be amended by eXalt, from time to time, in eXalt’s sole and reasonable discretion. The privacy policy of eXalt shall be comparable to policies of similar types of companies providing similar services and as such shall not
unreasonably restrict the use of the Application Services. In the event of amendment of any such privacy policies, eXalt will use commercially reasonable efforts to notify Customer in advance of such modifications or, if not commercially reasonable,
notify Customer promptly following such modifications. 

  

	3.2	Grant of License by eXalt. Subject to the terms herein, eXalt hereby grants Customer for the term of this Agreement, a non-exclusive, non-transferable license to (i) use the
Application Services, via the Internet, to produce, cache, display and transmit the Application Service Provided Content, (ii) use and modify the Machine Readable Content, for the purpose of updating the data repository, and (iii) copy, download,
and export any incidental excerpts of the Application Service Provided Content which occur through the normal permitted use of the Customer Content, such as print, CD ROM or Website development. Except as specifically stated within this section 3.2,
or as required in the event of a release of the source code and related materials, for the limited purpose of Customer’s internal support from escrow under Section 3.5 of this Agreement to Customer, Customer may not modify, translate, reverse
engineer, decompile, disassemble, or create derivative works based on the Application Services or Software or any other work found at, aggregated at, contained on, distributed through, linked to or from, downloaded to or from or in any other manner
accessed from the Application Services; copy (including copying onto a bulletin board or similar system) the Application Services, Software or eXalt Matter; rent, lease, grant a security interest in, or otherwise transfer rights to the Application
Services, Software or eXalt Matter or remove any proprietary notices or labels from the Application Services, Software or eXalt Matter. The parties acknowledge and agree that the Software Enhancements to the Planning and Budgeting Modules that eXalt
shall provide pursuant to Section 2.6 shall be licensed in accordance with the license to Customer for the Application Services. eXalt further agrees that the Software Enhancements created solely for the Planning and Budgeting Modules shall not be
licensed by eXalt to any hospitals, or to any architects, general contractors or group purchasing organizations that derive the majority of their revenue from the capital equipment planning, procurement, forecasting, cost estimation, design and
development as it applies to purchases of capital equipment by hospitals (“Competing Entities”) for a period of time equal to the shorter of three years from the Effective Date of this Agreement or the termination of this Agreement
pursuant to Article X. The foregoing exclusion shall not prevent eXalt from (i) licensing to such Competing Entities the Software or providing similar Application Services to such Competing Entities, so long as the Software Enhancements are not
included; (ii) from marketing and selling subscription agreements to any Competing Entity or (iii) from licensing the Software Enhancements to distributors. 

  

	3.3	Grant of License by Customer. Subject to the terms and conditions of this Agreement, Customer hereby grants to eXalt: (i) a non-transferable (except as provided herein),
non-exclusive, worldwide, royalty-free license to use and modify the Customer Content solely in connection with the provision of the Application Services and any necessary activities related thereto, and to sublicense the Customer Content as part of
the Application Service Provided Content; and (ii) for the term of this Agreement, a non-transferable (except as provided herein) non-exclusive, worldwide, royalty-free license to use, reproduce and display the Customer Brand Features in connection
with the provision of the Application Services; provided, however, that all such use, reproduction and/or display of Customer Brand Features are in accordance with reasonable trademark guidelines and restrictions specified by Customer. Exalt will
immediately discontinue use of Customer’s Brand Features upon: any expiration of termination of the Agreement. 

  

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	3.4	Syndication. During the Term of this Agreement, eXalt shall have the non-exclusive right to publish or distribute and the exclusive right to syndicate Customer Content
through the Internet, and Customer shall not permit any other person to so syndicate such Customer Content, on the Internet. Customer shall not itself distribute the Machine Readable Content nor grant to any other entity the right to distribute the
Machine Readable Content eXalt has the exclusive right to distribute the Machine Readable Content. Customer acknowledges that eXalt cannot be adequately compensated in damages for any breach of this paragraph and that in the case of any such breach
or threatened breach, eXalt shall be entitled to injunctive or other equitable relief. 

  

	3.5	Ownership by eXalt. Customer acknowledges and agrees that: (i) as between Customer and eXalt, eXalt owns all right, title and interest in the Application Services,
Application Service Provided Content (except for any Customer Content that is incorporated therein), the eXalt Matter, Software, the eXalt Brand Features, the Software Enhancements (if any in Section 2.6), all derivatives, enhancements and
improvements thereof, and all Intellectual Property Rights therein; (ii) nothing in this Agreement shall confer in Customer any right of ownership in the Application Services, Application Service Provided Content (except for any Customer Content
that is incorporated therein), the eXalt Matter, Software or the eXalt Brand Features, other than the limited licenses set forth in Section 3.2 above; and (iii) Customer shall not now or in the future contest the validity of the eXalt Brand
Features. No licenses are granted by eXalt except for those expressly set forth in this Agreement. eXalt, and its successors and assigns shall have the right to obtain and hold in its own name all patents, copyright registrations and other evidence
of rights that may be available for the Application Services, Application Service Provided Content (except for any Customer Content that is incorporated therein), the eXalt Matter, Software and the eXalt Brand Features, and any portion(s) thereof
except for any Customer Content. To the extent Customer or its employees may acquire any right or interest in any of the foregoing, except for any Customer Content, by operation of law, then as additional consideration for favorable provisions of
this Agreement, Customer hereby irrevocably assigns and transfers to eXalt all right, title and interest worldwide in and to the foregoing, except for any Customer Content, whether or not patentable or copyrighted, made or conceived or reduced to
practice, and to all modifications and derivative works thereof, and to all Intellectual Property Rights related thereto. Customer shall maintain and enforce agreements and policies with its employees sufficient to give effect to the provisions of
this Section 3.5. Within thirty (30) calendar days of the Effective Date, the parties agree to enter into a mutually agreeable standard software source code escrow agreement with a third party escrow agent, mutually agreed to and appointed by the
parties, to preserve Customer’s right to receive source code in the event of the following release conditions: (a) entry of an order for relief under Title 11 of the United States Bankruptcy Code; (b) the making by eXalt of a general assignment
for the benefit of its creditors; (c) the appointment of a general receiver or trustee in bankruptcy of eXalt’s business or property; or (d)action by eXalt under any state or federal insolvency or similar law for the purpose of its bankruptcy,
reorganization, or liquidation. Customer agrees to cover the reasonable costs of establishing and maintaining the escrow arrangement, including the charges imposed by the escrow service and any directly related reasonable attorney’s fees. In
the event of such source code release, eXalt acknowledges and agrees that Customer may seek to retain a third party provider solely for the purposes of supporting Customer’s use of the Software in accordance with the terms of this Agreement,
including but not limited to the use restrictions stated in Article III. 

  

	3.6	Ownership by Customer. eXalt acknowledges and agrees that: (i) as between eXalt and Customer, Customer owns all the right, title and interest in the Customer Content and the
Customer Brand Features, all derivatives, enhancements and improvements thereof (except the Application Service Provided Content), and all Intellectual Property Rights therein; (ii) nothing in this Agreement shall confer in eXalt any right of
ownership in the Customer Content or the Customer Brand Features, other than the limited licenses set forth in Section 3.3 above; and (iii) eXalt shall not now or in the future contest the validity of the Customer Brand Features. Customer grants no
licenses except for those expressly set forth in this Agreement and shall retain all rights not expressly granted hereunder. To the extent eXalt or its employees may acquire any right or interest in any of the foregoing by operation of law, then as
additional consideration for favorable provisions of this Agreement, eXalt hereby irrevocably assigns and transfers to Customer all right, title and interest worldwide in and to such Customer Content, whether or not patentable or copyrighted, made
or conceived or reduced to practice, and to all modifications and derivative works thereof (except the Application Service Provided Content), and to all Intellectual Property Rights related thereto. eXalt shall maintain and enforce agreements and
policies with its employees sufficient to give effect to the provisions of this Section 3.6. 

  

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 ARTICLE IV – PAYMENT 
  

	4.1	In consideration of the Services and licenses granted under this Agreement, Customer agrees to pay the annual fees set forth in the attached Schedule B, in accordance with the terms
specified in Schedule B. Absent additional terms, all payments are due net thirty (30) days from the date of invoice. eXalt may, in its sole reasonable discretion, require alternative payment terms (for example advance payment) if eXalt
determines Customer’s financial condition or previous payment record warrants such change. Any invoiced amount for which eXalt does not receive payment within thirty (30) days of the invoice date shall be subject to a late charge, commencing
thirty (30) days after the invoice date, at the lesser of one and a half percent (1.5%) per month or the maximum rate allowable by law, and eXalt may suspend Customer’s access to the Application Services and the Software until such payment it
made. All payments shall be in U.S. Dollars. 

  

	4.2	Fees provided for herein are exclusive of all applicable taxes. Customer agrees to pay all taxes associated with the use of the Application Services provided under this Agreement,
including but not limited to sales, use, excise, added value and similar taxes and all customs, duties or governmental impositions, excluding taxes solely on eXalt’s net income and employment-related taxes incurred by personnel employed by
eXalt. If Customer claims a tax exemption, Customer must provide eXalt with valid tax exemption certificates. 

  

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 ARTICLE V – CUSTOMER OBLIGATIONS 
  

	5.1	Customer understands that, as between Customer and eXalt, Customer is responsible for the accuracy of the Customer Content. Customer may not post, upload, or otherwise transfer by
any means, including but not limited to web page content, linked web pages, e-mail or FTP, any document, image, communication, or other transmission into the Application Services which (i) Customer knows infringes the Intellectual Property Rights of
any third party, (ii) is obscene or constitutes child pornography under applicable laws, (iii) is defamatory, or (iv) Customer knows contains any computer code intentionally designed to disrupt, disable, harm, or otherwise impede in any manner,
including aesthetic disruptions or distortions, the operation of the Application Services or any associated data, software, firmware, hardware, computer or network (sometimes referred to as “viruses” or “worms”). Without limiting
any other available remedies, eXalt reserves the right to edit or delete any such document, image, communication, or other transmission. 

  

	5.2	Customer understands that all information, data, text, other materials of third parties accessible through the use of the Application Services (“Third-Party Content”), are
the sole responsibility of the person(s) from which such Third-Party Content originated. As eXalt does not control the Third-Party Content accessible via the Application Services, it does not guarantee the accuracy, integrity or quality of such
Third-Party Content. Under no circumstances will eXalt be liable in any way for any Third-Party Content, including, but not limited to, for any errors or omissions in any Third-Party Content or for any loss or damage of any kind incurred as a result
of the use of any Third-Party Content. 

  

	5.3	Customer may not use or export the Application Services and/or any information, document, image, communication or other transmission generated or received in connection with the
Application Services in violation of the laws of any jurisdiction, including but not limited to the privacy and export regulations and restrictions of the United States and the Children’s Online Privacy Protection Act of 1998
(“COPPA”). Customer shall notify eXalt if it intends to collect information from children under the age of 13 prior to collection of such information to ensure that the parties are in compliance with the provisions of COPPA.

  

	5.4	Customer (for itself and on behalf of its agents) agrees not to use the Application Services made available to Customer in any manner that (i) may cause or causes the whole or any
part of the Application Services to be interrupted, damaged, rendered less efficient or is in any way impaired, or (ii) may cause or causes loss or damage to any person. Customer agrees to defend, indemnify and hold harmless eXalt, its officers,
directors, stockholders and agents from and against any losses or damages suffered by eXalt arising out of or relating to a breach of this Article V, including any legal, administrative or technical costs. 

  

	5.5	Customer shall appoint a project manager in accordance with Section 2.2, and is responsible for and must provide all telephone and other equipment, software and services necessary
to transmit the Customer Content and access the Internet and Application Services. 

  

	5.6	Customer and eXalt shall use commercially reasonable efforts to prepare a standard form of subscription agreement for Authorized Syndications within thirty (30) days after the
Effective Date. The subscription agreement shall include the terms set forth on Exhibit 1 of Schedule H. 

  
 ARTICLE VI – CONFIDENTIALITY 
  
 The parties agree that any Confidential Information provided under this Agreement shall be held and maintained in strict confidence. Each party shall
protect the other’s Confidential Information from unauthorized dissemination and use the greater of industry standard precautions or the degree of care that such party uses to protect its own like information. Neither party will use the
other’s Confidential Information for purposes other than those necessary to directly further the purposes of this Agreement. Neither party will disclose to third parties the other’s Confidential Information without the prior written
consent of the other party. However, any of the Confidential Information may be disclosed to directors, officers, consultants, agents or employees (collectively, “Representatives”) of the recipient, 

  

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but only if such Representatives need to know the Confidential Information for the performance of their duties in connection with the transactions
contemplated under this Agreement, it being understood (i) that such Representatives shall be informed by the recipient of the confidential nature of the Confidential Information and the requirement that it not be used other than for the purpose
described above, and (ii) that, in any event, the recipient shall be responsible for any breach of this Agreement by any of its Representatives. “Confidential Information” shall mean: (i) the Software; (ii) any materials or information
marked as confidential (or described as confidential at the time of oral disclosure and summarized in writing and sent to the receiving party within thirty (30) days of disclosure, with the appropriate markings) at the time of disclosure, or any
other materials that based on the events surrounding such disclosure are reasonably deemed to be confidential; and (iii) the terms of this Agreement. “Confidential Information” does not include information that (i) is already known to the
receiving party at the time it is disclosed and has not been obtained wrongfully, (ii) becomes publicly known without fault of the receiving party, (iii) is approved for release in writing by the disclosing party, (iv) is independently created
through no breach of this Agreement, (v) is disclosed without restriction by the disclosing party to a third party, or (vi) is disclosed pursuant to legal obligations beyond the control of the disclosing party provided that the disclosing party uses
its best efforts to notify the non-disclosing party in advance of such required disclosure. Within fifteen (15) days after the recipient’s receipt of the disclosing party’s written request for the return of any portion or all Confidential
Information, all the disclosing party’s Confidential Information and all copies thereof in the recipient’s possession or control must be returned to the disclosing party or destroyed by the recipient at the disclosing party’s
instruction. Upon request, the recipient shall certify in writing that it has done so. 
  
 ARTICLE VII – REPRESENTATIONS AND WARRANTIES 
  

	7.1	By Each Party. eXalt and Customer each represent and warrant to the other that: (i) it has the full corporate right, power and authority to enter into this Agreement and to
perform the acts required of it hereunder; (ii) the execution of this Agreement by such party, and the performance by such party of its obligations and duties hereunder, do not and will not violate any agreement to which such party is a party or by
which it is otherwise bound; (iii) when executed and delivered by such party, this Agreement will constitute the legal, valid and binding obligation of such party, enforceable against it in accordance with its terms; (iv) such party acknowledges
that the other party makes no representations, warranties or agreements related to the subject matter hereof that are not expressly provided for in this Agreement; and (v) it will comply with all applicable federal, state and local laws in the
performance of its obligations hereunder. 

  

	7.2	By eXalt. eXalt represents and warrants to Customer that (i) it has the right to grant the licenses granted by eXalt to Customer hereunder; (ii) the Software, eXalt Matter
and the eXalt Brand Features will not, to eXalt’s knowledge, infringe the Intellectual Property Rights of any third party; and (iii) to eXalt’s knowledge, the Software and the eXalt Matter shall be free of any virus, defect, disabling
device, “time bomb,” “Trojan horses,” “worms,” or remote control mechanism whatsoever. eXalt further represents and warrants that eXalt will use best practices to protect from such intrusions by utilizing commercially
standard firewall and/or commercially standard technology for protecting the confidentiality of the Customer Content and/or other confidential information of Customer (provided, however, that no representation or warranty is made or may be implied
as to the effectiveness of any such commercially standard firewall or other similar security technology). Except as specifically set forth in this Section, eXalt makes no representation or warranty as to the operation of the Application Services or
the accuracy or completeness of any eXalt Matter that is displayed or is otherwise made available on or through the Application Services. 

  

	7.3	By Customer. Customer represents and warrants to eXalt that it has the right to grant the licenses granted by Customer to eXalt hereunder and that Customer Content and the
Customer Brand Features will not, to Customer’s knowledge, infringe the Intellectual Property Rights of any third party. 

  
 ARTICLE VIII – LIMITATION OF LIABILITY; DISCLAIMER 
  

	8.1	 Limitation of Liability. EXCEPT FOR OBLIGATIONS ARISING UNDER ARTICLE X OR FOR ANY BREACHES OF ARTICLES III OR VI ABOVE, IN NO EVENT SHALL EITHER
PARTY HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES OR FOR INTERRUPTED COMMUNICATIONS, RE-RUN TIME, INACCURATE INPUT, WORK DELAYS, LOST DATA OR LOST PROFITS, ARISING OUT OF OR IN
CONNECTION WITH 

  

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THIS AGREEMENT, THE APPLICATION SERVICES OR THE USE OF THE APPLICATION SERVICES BY CUSTOMER, EVEN IF EXALT HAS BEEN ADVISED OR (OR KNOWS OR SHOULD KNOW OF)
THE POSSIBILITY OF SUCH DAMAGES. FURTHERMORE, IN NO EVENT SHALL EXALT’S LIABILITY UNDER THIS AGREEMENT, INCLUDING FOR DIRECT DAMAGES, EXCEED THE AMOUNT EXALT HAS BEEN PAID BY CUSTOMER UNDER THIS AGREEMENT. THE LIMITATION ON EXALT’S
LIABILITY IS CUMULATIVE, WITH ALL PAYMENTS TO CUSTOMER FOR CLAIMS OR DAMAGES UNDER THIS AGREEMENT BEING AGGREGATED TO DETERMINE SATISFACTION OF THE LIMIT. THE EXISTENCE OF ONE OR MORE CLAIMS OR SUITS WILL NOT ENLARGE THE LIMIT. THESE LIMITATIONS
APPLY TO ALL CAUSES OF ACTION UNDER OR RELATING TO THIS AGREEMENT (CONTRACT, TORT OR OTHERWISE). 

  

	8.2	No Additional Warranties. EXCEPT AS SET FORTH IN ARTICLE VII OF THIS AGREEMENT, NEITHER PARTY MAKES, AND EACH PARTY HEREBY SPECIFICALLY DISCLAIMS, ANY REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE PRODUCTS AND THE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ANY IMPLIED WARRANTY OF NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR IMPLIED WARRANTIES ARISING FROM COURSE
OF DEALING OR COURSE OF PERFORMANCE. 

  
 ARTICLE IX –
INDEMNIFICATION 
  

	9.1	eXalt will defend, indemnify and hold Customer harmless from and against all damages, claims, liabilities, losses and other expenses, including without limitation reasonable
attorney’s fees and costs, whether or not a lawsuit or other proceeding is filed, arising out of or related to a claim that Application Services furnished and used within the scope of this Agreement infringe any issued United States patents, or
any copyrights, trademarks, or trade secrets provided that: (a) Customer notifies eXalt in writing within thirty (30) days of Customer first becoming aware of a claim; (b) eXalt has sole control of the defense and all related settlement
negotiations; and (c) Customer provides eXalt, at eXalt’s cost, with assistance and information necessary to perform eXalt’s obligations under this paragraph. Actual out-of-pocket expenses incurred by Customer in providing such assistance
will be reimbursed by eXalt. If eXalt fails to assume the defense of the claim within sixty (60) days after Customer’s notification under clause (i) above, and Customer defends the claim, eXalt shall reimburse Customer for the costs of such
defense within sixty (60) days after demand therefor. eXalt shall have no liability with respect to any intellectual property infringement claim if such infringement is attributable to: (x) Customer Content incorporated into the Application Services
if such infringement would have been avoided by the use of the Application Services without such Customer Content; (y) modification of the Application Services by any party other than eXalt or its authorized subcontractors or any other party
expressly authorized by eXalt; or (z) the combination, operation or use of any Application Services furnished under this Agreement with Customer Content, specifications, software, hardware or other materials not furnished, designated, authorized, or
certified in writing by eXalt if such infringement would have been avoided by the use of the Application Services without such Customer Content, specifications, design, modification, software, hardware or other materials. 

 

	9.2	Should the Application Services, or any part thereof, become or, in eXalt’s opinion, be likely to become the subject of any infringement claim, then in addition to its
indemnity obligations herein, eXalt shall also, without additional cost to Customer, either (i) modify the Application Services to be non-infringing, without material loss of functionality or increased costs of use, operation or maintenance; or (ii)
obtain for Customer a license to continue using the Application Services; or (iii) replace the infringing item with a non-infringing substitute without material loss of functionality or increased costs of use, operation or maintenance; or (iv) in
the event that the options described in clauses (i) through (iii) are not available on commercially reasonable terms, terminate this Agreement and refund to Customer fifty percent (50%) of the ASP Fee received by eXalt from Customer during the
preceding twelve-month period. 

  

	9.3	THIS ARTICLE IX STATES EXALT’S AND ITS SUPPLIERS’ ENTIRE LIABILITY AND CUSTOMER’S EXCLUSIVE REMEDY FOR INFRINGEMENT OF ANY THIRD PARTY’S INTELLECTUAL PROPERTY
RIGHTS. 

  

	9.4	 Except where eXalt is obligated to indemnify Customer under Section 9.1, Customer shall indemnify, defend and 

  

 9 

	 	 
hold harmless eXalt, from and against all damages, claims, liabilities, losses and other expenses, including without limitation reasonable attorney’s
fees and costs, whether or not a lawsuit or other proceeding is filed, arising out of or related to a claim that Customer Content or Customer Brand Features infringe any issued United States patents, copyrights, trademarks, or trade secrets,
provided that: (a) eXalt notifies Customer in writing within thirty (30) days of eXalt first becoming aware of a claim; (b) Customer has sole control of the defense and all related settlement negotiations; and (c) eXalt provides Customer, at
Customer’s cost, with assistance and information necessary to perform Customer’s obligations under this paragraph. Actual out-of-pocket expenses incurred by eXalt in providing such assistance will be reimbursed by Customer. If Customer
fails to assume the defense of the claim within sixty (60) days after eXalt’s notification under clause (i) above, and eXalt defends the claim, Customer shall reimburse eXalt for the costs of such defense within sixty (60) days after demand
therefor. THIS SECTION 9.4 STATES CUSTOMER’S ENTIRE LIABILITY AND EXALT’S EXCLUSIVE REMEDY FOR INFRINGEMENT OF ANY THIRD PARTY’S INTELLECTUAL PROPERTY RIGHTS. 

  
 ARTICLE X – TERM AND TERMINATION 
  

	10.1	This Agreement becomes effective on the date of execution and shall remain in effect for the Period of Time specified on Schedule G following such date, unless terminated
earlier pursuant to this Article X (the “Term”). Either party may terminate this Agreement upon written notice to the other party during the thirty (30) day period prior to an anniversary of the Effective Date. Upon the expiration of the
Term, this Agreement shall automatically renew for consecutive one (1) year terms unless notice is give by either party no later than thirty (30) days prior to the end of the then current term of one party’s intent not to renew.

  

	10.2	Except as otherwise provided in this Article X, should Customer commit any material breach of this Agreement and fail to remedy the same to eXalt’s reasonable satisfaction
within thirty (30) days after written notice thereof, eXalt may terminate this Agreement by giving written notice to that effect. Such action by eXalt will not preclude other remedies to which eXalt may be entitled. 

  

	10.3	Except as otherwise provided in this Article X, should eXalt commit any material breach of this Agreement and fail to remedy the same to Customer’s reasonable satisfaction
within thirty (30) days after written notice thereof, Customer may terminate this Agreement by giving written notice to that effect. Such action by Customer will not preclude other remedies to which Customer may be entitled.

  

	10.4	Either party may terminate this Agreement immediately in the event of the other party’s breach of Article VI. 

  

	10.5	eXalt may terminate this Agreement upon a thirty (30) days notice pursuant to Section 9.2 above. 

  

	10.6	Either party may terminate this Agreement upon thirty (30) days notice to the other party in the event of a sale of all or substantially all of the assets of such other party to a
direct competitor of the terminating party, or the merger, consolidation or sale of a majority of the outstanding voting securities of such other party to a direct competitor of the terminating party. 

  

	10.7	Either party may terminate this Agreement immediately if the other party liquidates, dissolves, shall be adjudicated insolvent, files or has filed against it a petition in
bankruptcy or for reorganization, takes advantage of any insolvency act or proceeding, including an assignment for the benefit of creditors, or commits any other act of bankruptcy. 

  

	10.8	Any termination of this Agreement by Customer shall be subject to the terms and conditions set forth on Schedule G. Termination shall not relieve either party of any
obligations incurred prior to the termination. Upon termination, Customer agrees to cease all use of the Application Services and the eXalt Brand Features, and upon request of eXalt, to promptly destroy or return to eXalt all copies (electronic or
written) of the eXalt Matter, the Application Services, and any other confidential or proprietary information of eXalt in Customer’s possession or control. Upon termination, eXalt agrees to cease all use of Customer Content and Customer Brand
Features. 

  

	10.9	eXalt shall have the right, without any liability or obligation to Customer or Authorized Syndications users, to prohibit Authorized Syndications users from accessing the
Application Services or Application Service Provided Content upon termination of this Agreement. 

  

 10 

	10.10 	Sections 3.5 and 3.6 and Articles I, IV, VI, VIII, IX, X and XI shall survive any termination or expiration of this Agreement. 

  
 ARTICLE XI – GENERAL 
  

	11.1	Notices. All notices, requests and other communications required or permitted hereunder must be in writing and sent to the addressee at the address set forth above (or such
other address as the parties may specify from time to time in accordance with this Section 11.1) and must be delivered by personal delivery, by facsimile, by nationally recognized overnight courier, or by certified or registered U.S. Mail, return
receipt requested, and will be deemed effective upon: personal delivery, acknowledgement of receipt of facsimile transmission, one day after deposit with a nationally recognized overnight courier, or five (5) days after deposit in the U.S. Mail.

  

	11.2	Jurisdiction And Disputes 

  
 (a) The validity, construction and performance of this Agreement will be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts applicable to contracts executed in and performed entirely within such state, without reference to any choice of law principles. 
  

(b) All disputes hereunder brought by Customer shall be resolved in the applicable state or federal courts of Commonwealth of
Massachusetts. The parties consent to the jurisdiction of such courts, agree to accept service of process by mail, and waive any jurisdictional or venue defenses otherwise available. 
  

	11.3	Agreement Binding On Successors; Assignment. This Agreement shall be binding on and shall inure to the benefit of the parties hereto, and their heirs, administrators, and
permitted successors and assigns. Neither party may assign or delegate its obligations under this Agreement either in whole or in part, expressly or by operation of law, without the prior written consent of the other; provided however, that,
subject to the limitations of Section 10.6, either party may assign this Agreement pursuant to any merger, consolidation or sale of a majority of the outstanding voting securities of the assigning party or upon the sale of all or substantially all
of the assists of the assigning party without the other party’s consent, upon notice to the other party. 

  

	11.4	Waiver. No waiver by either party of any default shall be deemed as a waiver of any prior or subsequent default of the same or other provisions of this Agreement.

  

	11.5	Severability. If any provision hereof is held invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the validity or operation of any
other provision and such invalid provision shall be deemed to be severed from the Agreement. 

  

	11.6	Delay/ Force Majeure. Neither party will be liable for any failure or delay in its performance under this Agreement, or for damages or losses due to causes beyond its
reasonable control, including acts of God, acts of civil or military authority, fires, floods, earthquakes, environmental conditions, riots, wars, acts of terror, sabotage, failure of utilities, failure of electronic or mechanical equipment or
communications lines caused by outside forces, telephone or other interconnect problems, telecommunications failure caused by outside forces or governmental actions; provided, however, that such affected party give prompt notice to the other party
and take reasonable efforts to mitigate the effects of such causes. The party whose performance is affected will use reasonable efforts to minimize and eliminate the causes of the non-performance. 

  

	11.7	Integration. This Agreement, including the Schedules and Exhibits attached hereto, and the NDA constitute the entire understanding of the parties, and revokes and supersedes
all prior agreements between the parties and is intended as a final expression of their Agreement. It shall not be modified or amended except in writing signed by the parties hereto and specifically referring to this Agreement. This Agreement shall
take precedence over any other documents that may be in conflict therewith. The section headings used in this Agreement are intended for reference and convenience only, and shall not enter into the interpretation of the terms and conditions of this
Agreement. 

  

 11 

	11.8	Publicity; Freedom of Action. 

  
 (a) The parties shall cooperate with each other so that each party may issue a press release other than as a customer reference concerning
this Agreement, provided that each party must approve such press release in its reasonable discretion prior to its release. eXalt shall have the right to use Customer’s name as a customer reference throughout the Term and to demonstrate the
Customer Content to any third party in accordance with the terms of the license in Article III; provided, however, that if Customer engages eXalt to provide custom development work, then eXalt may not demonstrate such custom development work to any
third party without Customer’s prior written consent. 
  
 (b) Each party agrees and acknowledges that the relationship between the parties under this Agreement is nonexclusive. Nothing herein will prohibit either party from pursuing similar development services agreement
with any company or individual. The parties further agree and acknowledge that eXalt will have the right to provide similar services for or software to third parties and work with other third parties in connection with any development services;
provided that nothing herein shall constitute an implied license to any right, title and interest in the Customer Content. 
  

	11.9	Relationship of Parties. The parties are independent contractors, and no partnership, joint venture, employee-employer, or agency relationship between the parties is intended
or created by this Agreement or any of the terms and conditions contained herein. Neither party will have the power to bind any other party or incur obligations on another’s behalf without the other’s prior written consent.

  

	11.10 	Further Assurances. Both parties agree to execute such additional documents and perform such acts as are reasonably necessary to effectuate the intent of this Agreement.

  

 122004 Employee Commencement Incentive Plan

  
 Exhibit 10.1

  
 CV THERAPEUTICS, INC. 
  
 2004 EMPLOYMENT COMMENCEMENT INCENTIVE PLAN 
  
 ADOPTED BY THE
BOARD OF DIRECTORS DECEMBER 14, 2004 
  
 1. PURPOSES. 
  
 (a) Eligible Stock Award Recipients. Only Eligible Participants may receive Stock Awards under this Plan. 
  
 (b) General Purpose. The purpose of the Plan is to provide a means by which Eligible Participants may be given an opportunity to benefit
from increases in value of the Common Stock through the granting of Stock Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and
its Affiliates. 
  
 2. DEFINITIONS. 
  
 (a) “Affiliate” means any parent corporation
or subsidiary corporation of the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 
  

(b) “Board” means the Board of Directors of the Company. 
  
 (c) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (d) “Committee” means a committee of one or
more members of the Board appointed by the Board in accordance with subsection 3(c). 
  
 (e) “Common Stock” means the common stock of the Company. 
  
 (f) “Company” means CV Therapeutics, Inc., a Delaware corporation. 
  
 (g) “Consultant” means any person, including
an advisor, (i) engaged by the Company or an Affiliate to render consulting or advisory services and who is compensated for such services or (ii) who is a member of the Board of Directors of an Affiliate. However, the term “Consultant”
shall not include Directors. 
  
 (h) “Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee or Consultant, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have
terminated merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee or Consultant or a change in the entity for which the Participant renders such service, provided that there
is no interruption or termination of the Participant’s service to the Company or an Affiliate. For example, a change in status without interruption from an Employee of the Company to a Consultant of an Affiliate will not constitute an
interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party’s 

  

 
sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party,
including sick leave, military leave or any other personal leave. 
  
 (i) “Director” means a member of the Board of Directors of the Company. 
  
 (j) “Disability” means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code.

  
 (k) “Eligible Participant”
means any Employee who has not previously been an Employee or Director of the Company or an Affiliate, or following a bona fide period of non-employment by the Company or an Affiliate, if he or she is granted a Stock Award in connection with
his or her commencement of employment with the Company or an Affiliate and such grant is an inducement material to his or her entering into employment with the Company or an Affiliate. The Board may in its discretion adopt procedures from time to
time to ensure that an Employee is eligible to participate in the Plan prior to the granting of any Stock Awards to such Employee under the Plan (including, without limitation, a requirement, if any, that each such Employee certify to the Company
prior to the receipt of a Stock Award under the Plan that he or she has not been previously employed by the Company or an Affiliates, or if previously employed, has had a bona fide period of non-employment, and that the grant of Stock Awards under
the Plan is an inducement material to his or her agreement to enter into employment with the Company or an Affiliates). 
  
 (l) “Employee” means any person employed by the Company or an Affiliate. Mere service as a Director or payment of a
director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate. 
  
 (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (n) “Fair Market Value” means, as of any date,
the value of the Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such
stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the last market trading day prior to the day of determination, as
reported in The Wall Street Journal or such other source as the Board deems reliable. 
  
 (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board.

  
 (o) “Incentive Stock Option”
means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. Incentive Stock Options may not be granted under the Plan. 
  

 2 

 (p) “Independent Director” means a Director who is not an Employee of the
Company and who qualifies as “independent” within the meaning of NASD Rule 4200(a)(14), if the Company’s securities are traded on the Nasdaq National Market, or the requirements of any other established stock exchange on which the
Company’s securities are traded, as such rules or requirements may be amended from time to time. 
  
 (q) “NASD” means the National Association of Securities Dealers, Inc. 
  
 (r) “Nonstatutory Stock Option” means an
Option not intended to qualify as an Incentive Stock Option. 
  
 (s) “Option” means a Nonstatutory Stock Option granted pursuant to the Plan. 
  
 (t) “Option Agreement” means a written or electronic agreement between the Company and an Optionholder evidencing certain
terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 
  
 (u) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person
who holds an outstanding Option. 
  
 (v)
“Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 
  
 (w) “Plan” means this CV Therapeutics, Inc. 2004 Employment Commencement Incentive Plan.

  
 (x) “Restricted Stock” means
Common Stock awarded to a Participant pursuant to Section VII that is subject to certain restrictions and to risk of forfeiture. 
  
 (y) “Restricted Stock Unit” means a right to receive a specified number of shares of Common Stock during specified time
periods pursuant to Section VII. 
  
 (z) “Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time. 
  
 (aa) “Securities Act” means the Securities Act of 1933, as amended. 
  
 (bb) “Stock Award” means any right granted
under the Plan, including an Option, Restricted Stock, and a Restricted Stock Unit. 
  
 (cc) “Stock Award Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award
Agreement shall be subject to the terms and conditions of the Plan. 
  
 3.
ADMINISTRATION. 
  
 (a)
Administration by Board. The Board shall administer the Plan unless and until the Board delegates administration to a Committee, as provided in subsection 3(c). Any actions 

  

 3 

 
taken by the Board in connection with the administration of the Plan shall not be deemed approved by the Board unless such actions are approved by a majority
of the Independent Directors. 
  
 (b) Powers of
Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan: 
  
 (i) To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how each
Stock Award shall be granted; the provisions of each Stock Award granted (which need not be identical), including the time or times when a person shall be permitted to receive Common Stock pursuant to a Stock Award; and the number of shares of
Common Stock with respect to which a Stock Award shall be granted to each such person. 
  
 (ii) To adopt procedures from time to time in the Board’s discretion to ensure that an Employee is eligible to participate in
the Plan prior to the granting of any Stock Awards to such Employee under the Plan (including, without limitation, a requirement, if any, that each such Employee certify to the Company prior to the receipt of a Stock Award under the Plan that he or
she has not been previously employed by the Company or an Affiliates, or if previously employed, has had a bona fide period of non-employment, and that the grant of Stock Awards under the Plan is an inducement material to his or her agreement to
enter into employment with the Company or an Affiliates). 
  
 (iii) To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct
any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 
  
 (iv) To amend the Plan or a Stock Award as provided in Section 11. 
  
 (v) To terminate or suspend the Plan as provided in
Section 12. 
  
 (vi) Generally, to
exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company which are not in conflict with the provisions of the Plan. 
  
 (c) Delegation to Committee. The Board may delegate
administration of the Plan to the Compensation Committee of the Board, which shall be comprised of a majority of the Independent Directors, or is a committee comprised solely of the Company’s Independent Directors. The term
“Committee” shall apply to any persons to whom such authority has been delegated. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board (and references in this Plan to the Board shall thereafter be to the Committee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the administration of the Plan. 
  

 4 

 (d) Effect of Board’s Decision. All determinations, interpretations and constructions
made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 
  
 4. SHARES SUBJECT TO THE PLAN. 
  
 (a) Share Reserve. The number of shares of Common Stock that
may be issued pursuant to Stock Awards shall initially be zero (0). Prior to or concurrently with the grant of any Stock Awards under the Plan, the Board shall reserve for issuance hereunder such number of shares of Common Stock as may be necessary
in order to accommodate such Stock Awards, which reservation shall be noted on the schedule attached hereto. Subject to subsection 4(b), the aggregate number of shares of Common Stock that may be issued pursuant to Stock Awards at any given time
shall be equal to the total of such shares so reserved by the Board. Any shares of Common Stock so reserved shall be subject to the provisions of Section 11 relating to adjustments upon changes in Common Stock. 
  
 (b) Reversion of Shares to the Share Reserve. If any Stock
Award shall for any reason expire or otherwise terminate, in whole or in part, without having been exercised in full, the shares of Common Stock not acquired under such Stock Award shall revert to and again become available for issuance under the
Plan. 
  
 (c) Source of Shares. The shares of Common
Stock subject to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise. 
  
 5. ELIGIBILITY. Stock Awards may be granted only to Eligible Participants. All Options granted under the Plan shall be Nonstatutory Stock Options. 
  
 6. OPTION PROVISIONS. 
  
 The Board may grant Options, the terms of which Stock Awards shall be set forth in an
appropriate Option Agreement. Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The provisions of separate Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 
  
 (a) Option Exercise Price. The exercise price of each Option shall be not less than par value of the Common Stock subject to the Option on
the date the Option is granted. 
  
 (b)
Consideration. The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised or (ii) at the
discretion of the Board (1) by delivery to the Company of other Common Stock, (2) according to a deferred payment or other similar arrangement with the Optionholder or (3) in any other form of legal consideration that may be acceptable to the Board.
Unless otherwise specifically provided in the Option, the purchase price of Common Stock acquired pursuant to an Option that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid
only by shares of the Common Stock of the Company that have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial 

  

 5 

 
accounting purposes). At any time that the Company is incorporated in Delaware, payment of the Common Stock’s “par value,” as defined in the
Delaware General Corporation Law, shall not be made by deferred payment. 
  
 (c) Deferred Payment. In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be charged at the minimum rate of interest necessary to avoid the treatment
as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 
  
 (d) Transferability of Options. An Option shall be transferable to the extent provided in the Option Agreement. If the Option does not
provide for transferability, then the Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the
foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

  
 (e) Vesting Generally. The total number of
shares of Common Stock subject to an Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it
may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this subsection 6(f) are subject to any Option provisions governing
the minimum number of shares of Common Stock as to which an Option may be exercised. 
  
 (f) Termination of Continuous Service. In the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his
or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the
Optionholder’s Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not
exercise his or her Option within the time specified in the Option Agreement, the Option shall terminate. 
  
 (g) Extension of Termination Date. An Optionholder’s Option Agreement may also provide that if the exercise of the Option following the
termination of the Optionholder’s Continuous Service (other than upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements
under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in subsection 6(a) or (ii) the expiration of a period of three (3) months after the termination of the
Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration requirements. 
  
 (h) Disability of Optionholder. In the event that an Optionholder’s Continuous Service terminates as a result of the
Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the 

  

 6 

 
date of termination), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such longer
or shorter period specified in the Option Agreement) or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein,
the Option shall terminate. 
  
 (i) Death of
Optionholder. In the event (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of
the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person
who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder’s death pursuant to subsection 6(e), but only within the period ending on the earlier of (1) the date
eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement) or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate. 
  
 (j) Early Exercise. The Option may, but need not, include a provision whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of
the shares of Common Stock subject to the Option prior to the full vesting of the Option. Any unvested shares of Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any other restriction the Board determines
to be appropriate. The Company will not exercise its repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed following exercise
of the Option unless the Board otherwise specifically provides in the Option. 
  
 7. PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS. 
  
 The Board
may grant Restricted Stock and/or Restricted Stock Units, the terms of which Stock Awards shall be set forth in an appropriate Stock Award Agreement. Each such Stock Award shall be in such form and shall contain such terms and conditions as the
Board shall deem appropriate. The provisions of separate Stock Award agreements need not be identical, but each Stock Award Agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance
of each of the following provisions: 
  
 (a) Purchase
Price. At its discretion, the Board may designate a purchase price or no purchase price for the issuance of Common Stock under the Plan. The purchase price, if any, under each Stock Award Agreement shall be such amount as the Board shall
determine and designate in such Stock Award Agreement. In no event may Common Stock be issued under the Plan for less than adequate legal consideration, as determined by the Board in its sole discretion. 
  
 (b) Consideration. The purchase price of Common Stock acquired
pursuant to the Stock Award Agreement shall be paid either: (i) in cash at the time of issuance of the Common Stock; (ii) at the discretion of the Board, according to a deferred payment or other similar arrangement with the Participant; or (iii) in
any other form of legal consideration that may be 

  

 7 

 
acceptable to the Board in its discretion; provided, however, that at any time that the Company is incorporated in Delaware, then payment of the Common
Stock’s “par value,” as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 
  
 (c) Restricted Stock Vesting. Restricted Stock Units and/or shares of Common Stock acquired under a Stock Award Agreement shall be subject
to vesting schedule or a forfeiture or share repurchase option (in the case of Restricted Stock issued with a purchase price) in favor of the Company pursuant to a vesting schedule to be determined by the Board in accordance with the following
guidelines: (A) the vesting period for Restricted Stock Units or shares of Common Stock acquired under Stock Award Agreements shall be no less than three (3) years unless based upon performance, in which event the vesting period shall be no less
than one (1) year; and (B) notwithstanding the provisions of Section 10(a), the Board may not accelerate such vesting except under extraordinary circumstances, including without limitation the death, disability or divorce of the Participant, change
in corporate structure of the Company, Change of Control or termination of Continuous Service in connection with a Change of Control. 
  
 (d) Termination of Participant’s Continuous Service. In the event a Participant’s Continuous Service terminates, the Board may
cancel an unvested Restricted Stock Unit and/or repurchase or otherwise reacquire any or all of the shares of Restricted Stock held by the Participant which have not vested as of the date of termination under the terms of the Stock Award Agreement.

  
 (e) Transferability. Restricted Stock or
Restricted Stock Units shall be transferable by the Participant only upon such terms and conditions as are set forth in the Stock Award Agreement, as the Board shall determine in its discretion, so long as Common Stock awarded under the applicable
Stock Award Agreement remains subject to the terms of the Stock Award Agreement. 
  
 (f) Restricted Stock Units. Common Stock underlying a Restricted Stock Unit award will not be issued until the Restricted Stock Unit award has vested. Unless otherwise provided by the Board, a
Participant awarded Restricted Stock Units shall have no rights as a Company stockholder with respect to such Restricted Stock Units until such time as the Restricted Stock Units have vested and the Common Stock underlying the Restricted Stock Units
has been issued. 
  
 8. COVENANTS OF
THE COMPANY. 
  
 (a)
Availability of Shares. During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such Stock Awards. 
  
 (b) Securities Law Compliance. The Company shall seek to obtain
from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise or vesting of the Stock Awards; provided, however, that
this undertaking shall not require the Company to register under the Securities Act the Plan, any Option or any Common Stock issued or issuable pursuant to any such Option. If, after reasonable efforts, the Company is unable to obtain from any such
regulatory commission or agency the authority which counsel for the 

  

 8 

 
Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to
issue and sell Common Stock upon exercise or vesting of such Stock Awards unless and until such authority is obtained. 
  
 9. USE OF PROCEEDS FROM STOCK. Proceeds from the sale of Common Stock pursuant to
Options shall constitute general funds of the Company. 
  
 10.
MISCELLANEOUS. 
  
 (a) Acceleration
of Exercisability and Vesting. Subject to subsection 7(c) with respect to Restricted Stock and Restricted Stock Units, the Board shall have the power to accelerate the time at which a Stock Award may first vest and/or be exercised in accordance
with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during which it will vest. 
  
 (b) Stockholder Rights. No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any
shares of Common Stock subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms. 
  
 (c) No Employment or Other Service Rights. Nothing in the Plan or any instrument executed or Stock Award
granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to
terminate (i) the employment of an Employee with or without notice and with or without cause or (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate. 
  
 (d) Investment Assurances. The Company may require a
Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to
employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the
merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any
present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (1) the issuance of the shares of Common Stock upon the exercise or
acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act or (2) as to any particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock. 
  

 9 

 (e) Withholding Obligations. To the extent provided by the terms of a Stock Award
Agreement, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under a Stock Award by any of the following means (in addition to the Company’s right to
withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise
issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by
law; or (iii) delivering to the Company owned and unencumbered shares of Common Stock.  
  
 (f) UK Withholding Obligations. Each Optionholder agrees that he shall be liable for any employer’s United Kingdom National Insurance Contribution and to the extent provided by the terms of an
Option Agreement, the Company may require that any liability it has to account for United Kingdom income tax under the Pay As You Earn system and National Insurance Contributions or any other federal, state or local tax withholding obligation
relating to the exercise or acquisition of Common Stock under a Stock Award be satisfied by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Optionholder by the Company) or by a
combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Optionholder as a result of the exercise or acquisition of Common
Stock under the Option, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered shares of Common Stock.

  
 11. ADJUSTMENTS UPON CHANGES
IN STOCK. 
  
 (a)
Capitalization Adjustments. If any change is made in the Common Stock subject to the Plan, or subject to any Stock Award, without the receipt of consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject to the Plan pursuant to subsection 4(a) and the outstanding Stock Awards will be appropriately adjusted in the class(es)
and number of securities and price per share of Common Stock subject to such outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. The conversion of any convertible securities
of the Company shall not be treated as a transaction “without receipt of consideration” by the Company. 
  
 (b) Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company, then all outstanding Stock Awards shall
terminate immediately prior to such event. 
  
 (c)
Change of Control. 
  
 (i) in
the event of a Change of Control, each outstanding Stock Award under the Plan shall, automatically and without further action by the Company, become fully vested and/or exercisable with respect to all of the shares of Common Stock subject thereto no
later than 

  

 10 

 
five (5) business days before the closing of such Change in Control. In addition, to the extent permitted by law, any surviving corporation or acquiring
corporation in a Change of Control may assume any such Stock Awards outstanding under the Plan or substitute similar stock awards (including awards to acquire the same consideration paid to the stockholders in the Change of Control) for those
outstanding under the Plan. In the event any surviving corporation or acquiring corporation does not assume such Stock Awards or substitute similar stock awards for those outstanding under the Plan, then the Stock Awards shall terminate if not
exercised at or prior to the closing of the Change of Control. 
  
 (ii) For purposes of this Plan, “Change of Control” means: (i) a sale of substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving
corporation (other than a merger or consolidation in which shareholders immediately before the merger or consolidation have, immediately after the merger or consolidation, equal or greater stock voting power); (iii) a reverse merger in which the
Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise (other than a reverse
merger in which stockholders immediately before the merger have, immediately after the merger, greater stock voting power); or (iv) any transaction or series of related transactions in which in excess of 50% of the Company’s voting power is
transferred. 
  
 12. AMENDMENT OF
THE PLAN AND STOCK AWARDS. 
  
 (a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan. However, except as provided in Section 11 relating
to adjustments upon changes in Common Stock, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy the requirements of Rule 16b-3 or the requirements of the
Nasdaq National Market or an established stock exchange on which the Company’s securities are traded. 
  
 (b) Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or
advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code. 
  
 (c) No Impairment of Rights. Rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the
Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 
  
 (d) Amendment of Stock Awards. The Board at any time, and from time to time, may amend the terms of any one or more Stock Awards; provided,
however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. Notwithstanding the foregoing, the Board shall
not, without the approval of the stockholders of the Company, authorize the amendment of any outstanding Option to reduce its exercise price. Furthermore, no Option shall be canceled and replaced with grants having a lower exercise price without the
further approval of stockholders of the Company. 
  

 11 

 13. TERMINATION OR SUSPENSION OF THE
PLAN. 
  
 (a) Plan Term. The
Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board. No Stock Award may be granted under the Plan while
the Plan is suspended or after it is terminated. 
  
 (b)
No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the Participant. 
  
 14. EFFECTIVE DATE OF
PLAN. The Plan shall become effective upon its adoption by the Board. 
  
 15. CHOICE OF LAW/INTERPRETATION. The law of the State of Delaware shall govern all questions concerning the construction, validity and
interpretation of this Plan, without regard to such state’s conflict of laws rules. 
  
 16. STOCKHOLDER APPROVAL NOT REQUIRED. It is expressly intended that approval of the Company’s stockholders not be required as a condition
of the effectiveness of the Plan, and the Plan’s provisions shall be interpreted in a manner consistent with such intent for all purposes. Specifically, Rule 4350(i) promulgated by the NASD generally requires stockholder approval for stock
option plans or other equity compensation arrangements adopted by companies whose securities are listed on the Nasdaq National Market pursuant to which stock awards or stock may be acquired by officers, directors, employees, or consultants of such
companies. NASD Rule 4350(i)(1)(A)(iv) provides an exception to this requirement for issuances of securities to a person not previously an employee or director of the issuer, or following a bona fide period of non-employment, as an inducement
material to the individual’s entering into employment with the issuer, provided such issuances are approved by either the issuer’s compensation committee comprised of a majority of independent directors or a majority of the issuer’s
independent directors. Stock Awards under this Plan may only be made to Eligible Participants who have not previously been an Employee or director of the Company or an Affiliate, or following a bona fide period of non-employment by the Company or an
Affiliate, as an inducement material to the Eligible Participant’s entering into employment with the Company or an Affiliate. Stock Awards under the Plan will be approved by (i) the Company’s Compensation Committee comprised of a majority
of the Company’s Independent Directors or (ii) a majority of the Company’s Independent Directors. Accordingly, pursuant to NASD Rule 4350(i)(1)(A)(iv), the issuance of Stock Awards and the shares of Common Stock issuable upon exercise or
vesting of such Stock Awards pursuant to this Plan are not subject to the approval of the Company’s stockholders. 
  
 17. PARTICIPANTS IN FOREIGN COUNTRIES. The Board shall have the authority to adopt such
modifications, procedures and subplans as may be necessary or desirable to comply with provisions of the laws of foreign countries in which the Company or any Affiliate may operate to assure the viability of Stock Awards granted under the Plan in
such countries and to meet the objectives of the Plan. 
  

 12 

 SHARES RESERVED 
  

			
	 Date Reserved

	 	 Number of Shares

	 	 	 
	 	 	 

  

 13

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