Document:

exv4w3

Exhibit 4.3

NUANCE COMMUNICATIONS, INC. (FORMERLY KNOWN AS SCANSOFT, INC.)

2000 STOCK PLAN

(Amended and Restated January 29, 2010)

     1. Purposes of the Plan. The purposes of this Plan are:

	 	•	 	to attract and retain the best available personnel for
positions of substantial responsibility,
	 
	 	•	 	to provide additional incentive to Employees, Directors and
Consultants, and
	 
	 	•	 	to promote the success of the Company’s business.

The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Purchase
Rights, Stock Appreciation Rights, and Restricted Stock Units.

     2. Definitions. As used herein, the following definitions shall apply:

     (a) “Administrator” means the Board or any of its Committees as shall be administering
the Plan, in accordance with Section 4 of the Plan.

     (b) “Affiliated SAR” means an SAR that is granted in connection with a related Option,
and which automatically will be deemed to be exercised at the same time that the related
Option is exercised.

     (c) “Applicable Laws” means the requirements relating to the administration of
equity-based awards under U.S. state corporate laws, U.S. federal and state securities laws,
the Code, any stock exchange or quotation system on which the Common Stock is listed or
quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or
will be, granted under the Plan.

     (d) “Annual Revenue” means the Company’s or a business unit’s net sales for the Fiscal
Year, determined in accordance with generally accepted accounting principles; provided,
however, that prior to the Fiscal Year, the Committee shall determine whether any
significant item(s) shall be excluded or included from the calculation of Annual Revenue
with respect to one or more Participants.

     (e) “Award” means, individually or collectively, a grant under the Plan of Options,
Stock Purchase Rights, Stock Appreciation Rights, and Restricted Stock Units.

     (f) “Award Agreement” means the written or electronic agreement setting forth the terms
and provisions applicable to each Award granted under the Plan. The Award Agreement is
subject to the terms and conditions of the Plan.

     (g) “Board” means the Board of Directors of the Company.

     (h) “Cash Position” means the Company’s level of cash and cash equivalents.

     (i) “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a
section of the Code herein will be a reference to any successor or amended section of the
Code.

     (j) “Committee” means a committee of Directors appointed by the Board in accordance
with Section 4 of the Plan.

     (k) “Common Stock” means the common stock of the Company.

 

 

     (l) “Company” means Nuance Communications, Inc. (formerly known as ScanSoft, Inc.) a
Delaware corporation. With respect to the definitions of the Performance Goals, the
Committee may determine that “Company” means Nuance Communications, Inc. and its
consolidated subsidiaries.

     (m) “Consultant” means any person, including an advisor, engaged by the Company or a
Parent or Subsidiary to render services to such entity.

     (n) “Controllable Profits” means as to any Plan Year, a business unit’s Annual Revenue
minus (a) cost of sales, (b) research, development, and engineering expense, (c) marketing
and sales expense, (d) general and administrative expense, (e) extended receivables expense,
and (f) shipping requirement deviation expense.

     (o) “Customer Satisfaction MBOs” means as to any Participant for any Plan Year, the
objective and measurable individual goals set by a “management by objectives” process and
approved by the Committee, which goals relate to the satisfaction of external or internal
customer requirements(p) .

     (p) “Director” means a member of the Board.

     (q) “Disability” means total and permanent disability as defined in Section 22(e)(3) of
the Code.

     (r) “Earnings Per Share” means as to any Fiscal Year, the Company’s or a business
unit’s Net Income, divided by a weighted average number of common shares outstanding and
dilutive common equivalent shares deemed outstanding, determined in accordance with
generally accepted accounting principles.

     (s) “Employee” means any person, including Officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company. Neither service as a Director nor
payment of a director’s fee by the Company shall be sufficient to constitute “employment” by
the Company.

     (t) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (u) “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

     (i) If the Common Stock is listed on any established stock exchange or a
national market system, including without limitation the Nasdaq National Market or
The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall
be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system on the day of determination, as
reported in The Wall Street Journal or such other source as the Administrator deems
reliable;

     (ii) If the Common Stock is regularly quoted by a recognized securities dealer
but selling prices are not reported, the Fair Market Value of a Share of Common
Stock shall be the mean between the high bid and low asked prices for the Common
Stock on the last market trading day on the day of determination, as reported in The
Wall Street Journal or such other source as the Administrator deems reliable; or

     (iii) In the absence of an established market for the Common Stock, the Fair
Market Value shall be determined in good faith by the Administrator.

     (v) “Fiscal Year” means the fiscal year of the Company.

     (w) “Freestanding SAR” means an SAR that is granted independent of any Option.

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     (x) “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.

     (y) “Individual Objectives” means as to a Participant, the objective and measurable
goals set by a “management by objectives” process and approved by the Committee (in its
discretion).

     (z) “Net Income” means as to any Fiscal Year, the income after taxes of the Company for
the Fiscal Year determined in accordance with generally accepted accounting principles,
provided that prior to the Fiscal Year, the Committee shall determine whether any
significant item(s) shall be included or excluded from the calculation of Net Income with
respect to one or more Participants.

     (aa) “New Orders” means as to any Plan Year, the firm orders for a system, product,
part, or service that are being recorded for the first time as defined in the Company’s
order Recognition Policy.

     (bb) “Nonstatutory Stock Option” means an Option that by its terms does not qualify or
is not intended to qualify as an Incentive Stock Option.

     (cc) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

     (dd) “Operating Cash Flow” means the Company’s or a business unit’s sum of Net Income
plus depreciation and amortization less capital expenditures plus changes in working capital
comprised of accounts receivable, inventories, other current assets, trade accounts payable,
accrued expenses, product warranty, advance payments from customers and long-term accrued
expenses, determined in accordance with generally acceptable accounting principles.

     (ee) “Operating Income” means the Company’s or a business unit’s income from operations
but excluding any unusual items, determined in accordance with generally accepted accounting
principles.

     (ff) “Option” means a stock option granted pursuant to the Plan.

     (gg) “Optionee” means the holder of an outstanding Option or Stock Purchase Right
granted under the Plan.

     (hh) “Optioned Stock” means the Shares subject to an Award.

     (ii) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

     (jj) “Participant” means the holder of an outstanding Award, which shall include an
Optionee.

     (kk) “Performance Goals” means the goal(s) (or combined goal(s)) determined by the
Committee (in its discretion) to be applicable to a Participant with respect to an Award. As
determined by the Committee, the Performance Goals applicable to an Award may provide for a
targeted level or levels of achievement using one or more of the following measures: (a)
Annual Revenue, (b) Cash Position, (c) Controllable Profits, (d) Customer Satisfaction MBOs,
(e) Earnings Per Share, (f) Individual Objectives, (g) Net Income, (h) New Orders, (i)
Operating Cash Flow, (j) Operating Income, (k) Return on Assets, (l) Return on Equity, (m)
Return on Sales, and (n) Total Shareholder Return. The Performance Goals may differ from
Participant to Participant and from Award to Award.

     (ll) “Plan” means this 2000 Stock Plan, as amended and restated.

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     (mm) “Restricted Stock” means Shares acquired pursuant to a grant of Stock Purchase
Rights under Section 9 of the Plan or pursuant to the early exercise of an Option.

     (nn) “Restricted Stock Purchase Agreement” means a written agreement between the
Company and the Participant evidencing the terms and restrictions applying to stock
purchased under a Stock Purchase Right. The Restricted Stock Purchase Agreement is subject
to the terms and conditions of the Plan and the Notice of Grant.

     (oo) “Restricted Stock Unit” means an Award granted to a Participant pursuant to
Section 11.

     (pp) “Return on Assets” means the percentage equal to the Company’s or a business
unit’s Operating Income before incentive compensation, divided by average net Company or
business unit, as applicable, assets, determined in accordance with generally accepted
accounting principles.

     (qq) “Return on Equity” means the percentage equal to the Company’s Net Income divided
by average stockholder’s equity, determined in accordance with generally accepted accounting
principles.

     (rr) “Return on Sales” means the percentage equal to the Company’s or a business unit’s
Operating Income before incentive compensation, divided by the Company’s or the business
unit’s, as applicable, revenue, determined in accordance with generally accepted accounting
principles.

     (ss) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3,
as in effect when discretion is being exercised with respect to the Plan.

     (tt) “Section 16(b)” means Section 16(b) of the Exchange Act.

     (uu) “Service Provider” means an Employee, Director or Consultant.

     (vv) “Share” means a share of the Common Stock, as adjusted in accordance with Section
14 of the Plan.

     (ww) “Stock Appreciation Right” or “SAR” means an Award, granted alone or in connection
with an Option, which pursuant to Section 10 is designated as an SAR.

     (xx) “Stock Purchase Right” means the right to purchase Shares pursuant to Section 9 of
the Plan.

     (yy) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing,
as defined in Section 424(f) of the Code.

     (zz) “Tandem SAR” means an SAR that is granted in connection with a related Option, the
exercise of which will require forfeiture of the right to purchase an equal number of Shares
under the related Option (and when a Share is purchased under the Option, the SAR will be
canceled to the same extent).

     (aaa) “Total Shareholder Return” means the total return (change in share price plus
reinvestment of any dividends) of a Share.

     3. Stock Subject to the Plan. Subject to the provisions of Section 14 of the Plan, the
maximum aggregate number of Shares that may be issued under the Plan is 35,050,000 Shares (the
“Plan Maximum”). If any outstanding Award for any reason expires or is terminated or canceled
without having been exercised or settled in full, or if Shares acquired pursuant to an Award
subject to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares
allocable to the terminated portion of such Award or such forfeited or repurchased Shares shall
again be available for grant under the Plan. Shares shall not be deemed to have been granted
pursuant to the

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Plan (a) with respect to any portion of an Award that is settled in cash or (b) to the extent
such Shares are withheld in satisfaction of tax withholding obligations. Upon payment in Shares
pursuant to the exercise of a Stock Appreciation Right, the number of Shares available for grant
under the Plan shall be reduced only by the number of Shares actually issued in such payment. If
the exercise price of an Option is paid by tender to the Company of Shares underlying the Option,
the number of Shares available for grant under the Plan shall be reduced by the net number of
Shares for which the Option is exercised. The Shares may be authorized, but unissued, or reacquired
Common Stock.

     4. Administration of the Plan.

     (a) Procedure.

     (i) Multiple Administrative Bodies. Different Committees with respect to
different groups of Service Providers may administer the Plan.

     (ii) Section 162(m). To the extent that the Administrator determines it to be
desirable to qualify Awards granted hereunder as “performance-based compensation”
within the meaning of Section 162(m) of the Code, the Plan shall be administered by
a Committee of two or more “outside directors” within the meaning of Section 162(m)
of the Code. For purposes of qualifying grants of Awards as “performance-based
compensation” under Section 162(m) of the Code, the Committee, in its discretion,
may set restrictions based upon the achievement of Performance Goals. The
Performance Goals shall be set by the Committee on or before the latest date
permissible to enable the Awards to qualify as “performance-based compensation”
under Section 162(m) of the Code. In granting Awards which are intended to qualify
under Section 162(m) of the Code, the Committee shall follow any procedures
determined by it from time to time to be necessary or appropriate to ensure
qualification of the Awards under Section 162(m) of the Code (e.g., in determining
the Performance Goals).

     (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as
exempt under Rule 16b-3, the transactions contemplated hereunder shall be structured
to satisfy the requirements for exemption under Rule 16b-3.

     (iv) Other Administration. Other than as provided above, the Plan shall be
administered by (A) the Board or (B) a Committee, which committee shall be
constituted to satisfy Applicable Laws.

     (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the
case of a Committee, subject to the specific duties delegated by the Board to such
Committee, the Administrator shall have the authority, in its discretion:

     (i) to determine the Fair Market Value;

     (ii) to select the Service Providers to whom Awards may be granted hereunder;

     (iii) to determine the number of Shares to be covered by each Award granted
hereunder;

     (iv) to approve forms of agreement for use under the Plan;

     (v) to determine the terms and conditions, not inconsistent with the terms of
the Plan, of any Award granted hereunder. Such terms and conditions include, but are
not limited to, the exercise price, the time or times when Awards may be exercised
(which may be based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions in connection with the termination of a Participant’s status
as a Service Provider, and any restriction or

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limitation regarding any Award or the Shares relating thereto, based in each
case on such factors as the Administrator, in its sole discretion, shall determine;

     (vi) to construe and interpret the terms of the Plan and awards granted
pursuant to the Plan;

     (vii) to prescribe, amend and rescind rules and regulations relating to the
Plan, including rules and regulations relating to sub-plans established for the
purpose of qualifying for preferred tax treatment under foreign tax laws;

     (viii) to modify or amend each Award (subject to Section 17(c) of the Plan),
including the discretionary authority to extend the post-termination exercisability
period of Awards longer than is otherwise provided for in the Plan;

     (ix) to allow Participants to satisfy withholding tax obligations by electing
to have the Company withhold from the Shares to be issued upon exercise of an Award
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld. The Fair Market Value of the Shares to be withheld shall be
determined on the date that the amount of tax to be withheld is to be determined.
All elections by a Participant to have Shares withheld for this purpose shall be
made in such form and under such conditions as the Administrator may deem necessary
or advisable;

     (x) to authorize any person to execute on behalf of the Company any instrument
required to effect the grant of an Award previously granted by the Administrator;

     (xi) to allow a Participant to defer the receipt of payment of cash or the
delivery of Shares that would otherwise be due to such Participant under an Award;
or

     (xii) to make all other determinations deemed necessary or advisable for
administering the Plan.

     (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations
and interpretations shall be final and binding on all Participants and any other holders of
Awards.

     5. Eligibility. Nonstatutory Stock Options, Stock Purchase Rights, Stock Appreciation Rights,
and Restricted Stock Units may be granted to Service Providers. Incentive Stock Options may be
granted only to Employees.

     6. Limitations.

     (a) Each Option shall be designated in the Award Agreement as either an Incentive Stock
Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the
extent that the aggregate Fair Market Value of the Shares with respect to which Incentive
Stock Options are exercisable for the first time by the Participant during any calendar year
(under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options
shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive
Stock Options shall be taken into account in the order in which they were granted. The Fair
Market Value of the Shares shall be determined as of the time the Option with respect to
such Shares is granted.

     (b) The following limitations shall apply to grants of Options and Stock Appreciation
Rights:

     (i) No Service Provider shall be granted, in any Fiscal Year, Options or Stock
Appreciation Rights covering more than 1,000,000 Shares.

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     (ii) In connection with his or her initial service, a Service Provider may be
granted Options or Stock Appreciation Rights covering up to an additional 1,000,000
Shares, which shall not count against the limit set forth in subsection (i) above.

     (iii) The foregoing limitations shall be adjusted proportionately in connection
with any change in the Company’s capitalization as described in Section 14.

     (iv) If an Option or Stock Appreciation Right is cancelled in the same fiscal
year of the Company in which it was granted (other than in connection with a
transaction described in Section 14), the cancelled Option or Stock Appreciation
Right will be counted against the limits set forth in subsections (i) and (ii)
above. For this purpose, if the exercise price of an Option or Stock Appreciation
Right is reduced, the transaction will be treated as a cancellation of the Option or
Stock Appreciation Right and the grant of a new Option or Stock Appreciation Right.

     (c) The exercise price of any Option or SAR outstanding or to be granted in the future
under the Plan shall not be reduced or cancelled and re-granted at a lower exercise price
(including pursuant to any “6 month and 1 day” cancellation and re-grant scheme), regardless
of whether or not the Shares subject to the cancelled Options or SARs are put back into the
available pool for grant. In addition, the Administrator shall not replace underwater
Options or SARs with restricted stock in an exchange, buy-back or other scheme. Moreover,
the Administrator shall not replace any Options or SARs with new options or stock
appreciation rights having a lower exercise price or accelerated vesting schedule in an
exchange, buy-back or other scheme.

     7. Term of Plan. Subject to Section 20 of the Plan, the Plan shall become effective upon its
adoption by the Board. It shall continue in effect for a term of ten (10) years unless terminated
earlier under Section 17 of the Plan.

     8. Stock Options

     (a) Term of Option. The term of each Option shall be stated in the Award Agreement,
but in no event shall the term of an Option be more than seven (7) years from the date of
grant. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at
the time the Incentive Stock Option is granted, owns stock representing more than ten
percent (10%) of the total combined voting power of all classes of stock of the Company or
any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years
from the date of grant or such shorter term as may be provided in the Award Agreement.

     (b) Option Exercise Price and Consideration.

     (i) Exercise Price. The per Share exercise price for the Shares to be issued
pursuant to the exercise of an Option shall be no less than 100% of the Fair Market
Value per Share on the date of grant. In the case of an Incentive Stock Option
granted to an Employee who, at the time the Incentive Stock Option is granted, owns
stock representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the per Share exercise price shall
be no less than 110% of the Fair Market Value per Share on the date of grant.

     (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and
shall determine any conditions that must be satisfied before the Option may be
exercised.

     (iii) Form of Consideration. The Administrator shall determine the acceptable
form of consideration for exercising an Option, including the method of payment. In
the case of an Incentive Stock Option, the Administrator shall determine the
acceptable form of consideration at the time of grant. Such consideration may
consist entirely of:

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     (1) cash;

     (2) check;

     (3) other Shares which (A) in the case of Shares acquired upon exercise
of an option, have been owned by the Participant for more than six months on
the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which
said Option shall be exercised;

     (4) consideration received by the Company under a cashless exercise
program implemented by the Company in connection with the Plan;

     (5) a reduction in the amount of any Company liability to the
Participant, including any liability attributable to the Participant’s
participation in any Company-sponsored deferred compensation program or
arrangement;

     (6) any combination of the foregoing methods of payment; or

     (7) such other consideration and method of payment for the issuance of
Shares to the extent permitted by Applicable Laws.

     (c) Exercise of Option.

     (i) Procedure for Exercise; Rights as a Stockholder. Any Option granted
hereunder shall be exercisable according to the terms of the Plan and at such times
and under such conditions as determined by the Administrator and set forth in the
Award Agreement. An Option may not be exercised for a fraction of a Share.

     (1) An Option shall be deemed exercised when the Company receives: (i)
written or electronic notice of exercise (in such form as the Administrator
may specify from time to time) from the person entitled to exercise the
Option, and (ii) full payment for the Shares with respect to which the
Option is exercised (together with any applicable withholding taxes). Full
payment may consist of any consideration and method of payment authorized by
the Administrator and permitted by the Award Agreement and the Plan. Shares
issued upon exercise of an Option shall be issued in the name of the
Participant or, if requested by the Participant, in the name of the
Participant and his or her spouse. Until the Shares are issued (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. The Company shall issue
(or cause to be issued) such Shares promptly after the Option is exercised.
No adjustment will be made for a dividend or other right for which the
record date is prior to the date the Shares are issued, except as provided
in Section 14 of the Plan.

     (2) Exercising an Option in any manner shall decrease the number of
Shares thereafter available, both for purposes of the Plan and for sale
under the Option, by the number of Shares as to which the Option is
exercised.

     (ii) Termination of Relationship as a Service Provider. If a Participant
ceases to be a Service Provider, other than upon the Participant’s death or
Disability, the Participant may exercise his or her Option within such period of
time as is specified in the Award Agreement to the extent that the Option is vested
on the date of termination (but in no event later than the expiration of the term of
such Option as set forth in the Award Agreement). In the absence of a

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specified time in the Award Agreement, the Option shall remain exercisable for
three (3) months following the Participant’s termination. If, on the date of
termination, the Participant is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option shall revert to the Plan. If,
after termination, the Participant does not exercise his or her Option within the
time specified by the Administrator, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.

     (iii) Disability of Participant. If a Participant ceases to be a Service
Provider as a result of the Participant’s Disability, the Participant may exercise
his or her Option within such period of time as is specified in the Award Agreement
to the extent the Option is vested on the date of termination (but in no event later
than the expiration of the term of such Option as set forth in the Award Agreement).
In the absence of a specified time in the Award Agreement, the Option shall remain
exercisable for twelve (12) months following the Participant’s termination. If, on
the date of termination, the Participant is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option shall revert to the
Plan. If, after termination, the Participant does not exercise his or her Option
within the time specified herein, the Option shall terminate, and the Shares covered
by such Option shall revert to the Plan.

     (iv) Death of Participant. If a Participant dies while a Service Provider, the
Option may be exercised following the Participant’s death within such period of time
as is specified in the Award Agreement (but in no event may the Option be exercised
later than the expiration of the term of such Option as set forth in the Award
Agreement), by the Participant’s estate or by a person who acquires the right to
exercise the Option by bequest or inheritance, but only to the extent that the
Option is vested on the date of death. In the absence of a specified time in the
Award Agreement, the Option shall remain exercisable for twelve (12) months
following the Participant’s termination. If, at the time of death, the Participant
is not vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall immediately revert to the Plan. The Option may be
exercised by the executor or administrator of the Participant’s estate or, if none,
by the person(s) entitled to exercise the Option under the Participant’s will or the
laws of descent or distribution. If the Option is not so exercised within the time
specified herein, the Option shall terminate, and the Shares covered by such Option
shall revert to the Plan.

     (v) Buyout Provisions. The Administrator may at any time offer to buy out for
a payment in cash or Shares an Option previously granted based on such terms and
conditions as the Administrator shall establish and communicate to the Participant
at the time that such offer is made.

     9. Stock Purchase Rights.

     (a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition
to, or in tandem with other Awards granted under the Plan and/or cash awards made outside of
the Plan. After the Administrator determines that it will offer Stock Purchase Rights under
the Plan, it shall advise the offeree in writing or electronically, of the terms, conditions
and restrictions related to the offer, including the number of Shares that the offeree shall
be entitled to purchase (subject to the limits set forth in Section 3), the price to be
paid, and the time within which the offeree must accept such offer. The offer shall be
accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the
Administrator. The following limitations shall apply to grants of Stock Purchase Rights:

     (i) No Service Provider shall be granted, in any Fiscal Year, Stock Purchase
Rights covering more than 750,000 Shares.

     (ii) The foregoing limitation shall be adjusted proportionately in connection
with any change in the Company’s capitalization as described in Section 14.

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     (iii) If a Stock Purchase Right is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 14), the cancelled Stock Purchase Right will be counted against
the limit set forth in subsection (i) above.

     (b) Repurchase Option. Unless the Administrator determines otherwise, the Restricted
Stock Purchase Agreement shall grant the Company a repurchase option exercisable upon the
voluntary or involuntary termination of the purchaser’s service with the Company for any
reason (including death or Disability). The purchase price for Shares repurchased pursuant
to the Restricted Stock Purchase Agreement shall be the original price paid by the purchaser
and may be paid by cancellation of any indebtedness of the purchaser to the Company. The
repurchase option shall lapse at a rate determined by the Administrator.

     (c) Other Provisions. The Restricted Stock Purchase Agreement shall contain such other
terms, provisions and conditions not inconsistent with the Plan as may be determined by the
Administrator in its sole discretion.

     (d) Rights as a Stockholder. Once the Stock Purchase Right is exercised, the purchaser
shall have the rights equivalent to those of a stockholder, and shall be a stockholder when
his or her purchase is entered upon the records of the duly authorized transfer agent of the
Company. No adjustment will be made for a dividend or other right for which the record date
is prior to the date the Stock Purchase Right is exercised, except as provided in Section 14
of the Plan.

     10. Stock Appreciation Rights

     (a) Grant of SARs. Subject to the terms and conditions of the Plan, an SAR may be
granted to Service Providers at any time and from time to time as will be determined by the
Administrator, in its sole discretion. The Administrator may grant Affiliated SARs,
Freestanding SARs, Tandem SARs, or any combination thereof.

     (b) Number of Shares. The Administrator will have complete discretion to determine the
number of SARs granted to any Service Provider.

     (c) Exercise Price and Other Terms. The Administrator, subject to the provisions of
the Plan, will determine the terms and conditions of SARs granted under the Plan; provided,
that, the exercise price of an SAR is at least 100% of the Fair Market Value of the Shares
subject to the SAR; provided, further, the exercise price of Tandem or Affiliated SARs will
equal the exercise price of the related Option.

     (d) Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the
Shares subject to the related Option upon the surrender of the right to exercise the
equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to
the Shares for which its related Option is then exercisable. With respect to a Tandem SAR
granted in connection with an Incentive Stock Option: (i) the Tandem SAR will expire no
later than the expiration of the underlying Incentive Stock Option; (ii) the value of the
payout with respect to the Tandem SAR will be for no more than one hundred percent (100%) of
the difference between the exercise price of the underlying Incentive Stock Option and the
Fair Market Value of the Shares subject to the underlying Incentive Stock Option at the time
the Tandem SAR is exercised; and (iii) the Tandem SAR will be exercisable only when the Fair
Market Value of the Shares subject to the Incentive Stock Option exceeds the Exercise Price
of the Incentive Stock Option.

     (e) Exercise of Affiliated SARs. An Affiliated SAR will be deemed to be exercised upon
the exercise of the related Option. The deemed exercise of an Affiliated SAR will not
necessitate a reduction in the number of Shares subject to the related Option.

     (f) Exercise of Freestanding SARs. Freestanding SARs will be exercisable on such terms
and conditions as the Administrator, in its sole discretion, will determine.

10

 

     (g) SAR Agreement. Each SAR grant will be evidenced by an Award Agreement that will
specify the exercise price, the term of the SAR, the conditions of exercise, and such other
terms and conditions as the Administrator, in its sole discretion, will determine.

     (h) Expiration of SARs. An SAR granted under the Plan will expire upon the date
determined by the Administrator, in its sole discretion, and set forth in the Award
Agreement. Notwithstanding the foregoing, the rules of Section 8(c) also will apply to SARs.

     (i) Payment of SAR Amount. Upon exercise of an SAR, a Participant will be entitled to
receive payment from the Company in an amount determined by multiplying:

     (i) The difference between the Fair Market Value of a Share on the date of
exercise over the exercise price; times

     (ii) The number of Shares with respect to which the SAR is exercised.

At the discretion of the Administrator, the payment upon SAR exercise may be in cash, in
Shares of equivalent value, or in some combination thereof.

     11. Restricted Stock Units.

     (a) Grant of Restricted Stock Units. Restricted Stock Units may be granted to Service
Providers at any time and from time to time, as will be determined by the Administrator, in
its sole discretion. The Administrator will have complete discretion in determining the
number of Restricted Stock Units granted to each Participant, subject to the limits set
forth in Section 3 of the Plan. The following limitations shall apply to grants of
Restricted Stock Units:

     (i) No Service Provider shall be granted, in any Fiscal Year, Restricted Stock
Units covering more than 750,000 Shares.

     (ii) The foregoing limitation shall be adjusted proportionately in connection
with any change in the Company’s capitalization as described in Section 14.

     (iii) If a Restricted Stock Unit is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 14), the cancelled Restricted Stock Unit will be counted
against the limit set forth in subsection (i) above.

     (b) Value of Restricted Stock Units. Each Restricted Stock Unit will have an initial
value that is established by the Administrator on or before the date of grant.

     (c) Performance Objectives and Other Terms. The Administrator will set performance
objectives or other vesting provisions (including, without limitation, continued status as a
Service Provider) in its discretion which, depending on the extent to which they are met,
will determine the number or value of Restricted Stock Units that will be paid out to the
Service Providers. The time period during which the performance objectives or other vesting
provisions must be met will be called the “Performance Period.” Each award of Restricted
Stock Units will be evidenced by an Award Agreement that will specify the Performance
Period, and such other terms and conditions as the Administrator, in its sole discretion,
will determine. The Administrator may set performance objectives based upon the achievement
of Company-wide, divisional, or individual goals, applicable federal or state securities
laws, or any other basis determined by the Administrator in its discretion.

     (d) Earning of Restricted Stock Units. After the applicable Performance Period has
ended, the holder of Restricted Stock Units will be entitled to receive a payout of the
number of Restricted Stock

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Units earned by the Participant over the Performance Period, to be determined as a
function of the extent to which the corresponding performance objectives or other vesting
provisions have been achieved. After the grant of a Restricted Stock Units, the
Administrator, in its sole discretion, may reduce or waive any performance objectives or
other vesting provisions for such Restricted Stock Unit.

     (e) Form and Timing of Payment of Restricted Stock Units. Payment of earned Restricted
Stock Units will be made as soon as practicable after the expiration of the applicable
Performance Period. The Administrator, in its sole discretion, may pay earned Restricted
Stock Units in the form of cash, in Shares (which have an aggregate Fair Market Value equal
to the value of the earned Restricted Stock Units at the close of the applicable Performance
Period) or in a combination thereof.

     (f) Cancellation of Restricted Stock Units. On the date set forth in the Award
Agreement, all unearned or unvested Restricted Stock Units will be forfeited to the Company,
and again will be available for grant under the Plan.

     12. Leaves of Absence. Unless the Administrator provides otherwise, vesting of Awards granted
hereunder will be suspended during any unpaid leave of absence. A Service Provider will not cease
to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers
between locations of the Company or between the Company, its Parent, or any Subsidiary. For
purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment
upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration
of a leave of absence approved by the Company is not so guaranteed, then three months following the
91st day of such leave any Incentive Stock Option held by the Participant will cease to be treated
as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

     13. Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award
may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised, during the lifetime of
the Participant, only by the Participant. If the Administrator makes an Award transferable, such
Award shall contain such additional terms and conditions as the Administrator deems appropriate.

     14. .Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale.

     (a) Changes in Capitalization. Subject to any required action by the stockholders of
the Company, the number and class of Shares that may be delivered under the Plan and/or the
number, class, and price of Shares covered by each outstanding Award, and the numerical
Share limits in Sections 3, 6, 9 and 11 of the Plan, shall be proportionately adjusted for
any increase or decrease in the number of issued Shares resulting from a stock split,
reverse stock split, stock dividend, combination or reclassification of the Shares, or any
other increase or decrease in the number of issued Shares effected 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, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof shall be
made with respect to, the number or price of Shares subject to an Award.

     (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Participant as soon as
practicable prior to the effective date of such proposed transaction. The Administrator in
its discretion may provide for a Participant to have the right to exercise his or her Award
until ten (10) days prior to such transaction as to all of the Optioned Stock covered
thereby, including Shares as to which the Award would not otherwise be exercisable. In
addition, the Administrator may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Award shall lapse as to all such Shares, provided the
proposed dissolution or liquidation takes place at the time and in the manner contemplated.
To the extent it has not been previously exercised, an Award will terminate immediately
prior to the consummation of such proposed action.

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     (c) Merger or Asset Sale. In the event of a merger of the Company with or into another
corporation, or the sale of substantially all of the assets of the Company, each outstanding
Award shall be assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the Award, the Participant will
fully vest in and have the right to exercise all of his or her outstanding Options and Stock
Appreciation Rights, including Shares as to which such Awards would not otherwise be vested
or exercisable, all restrictions on Restricted Stock will lapse, and, with respect to
Restricted Stock Units, all Performance Goals or other vesting criteria will be deemed
achieved at target levels and all other terms and conditions met. In addition, if an Option
or Stock Appreciation Right becomes fully vested and exercisable in lieu of assumption or
substitution in the event of a merger or sale of assets, the Administrator will notify the
Participant in writing or electronically that the Option or Stock Appreciation Right will be
fully vested and exercisable for a period of 15 days from the date of such notice, and the
Option or Stock Appreciation Right will terminate upon the expiration of such period.

     For the purposes of this paragraph, the Award shall be considered assumed if, following
the merger or sale of assets, the Award confers the right to purchase or receive, for each
Share subject to the Award immediately prior to the merger or sale of assets, the
consideration (whether stock, cash, or other securities or property) or, in the case of a
Stock Appreciation Right upon the exercise of which the Administrator determines to pay cash
or a Restricted Stock Unit which the Administrator can determine to pay in cash, the fair
market value of the consideration received in the merger or sale of assets by holders of
Common Stock for each Share held on the effective date of the transaction (and if holders
were offered a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares); provided, however, that if such consideration received
in the merger or sale of assets is not solely common stock of the successor corporation or
its Parent, the Administrator may, with the consent of the successor corporation, provide
for the consideration to be received upon the exercise of an Option or Stock Appreciation
Right or upon the payout of a Restricted Stock Unit, for each Share subject to such Award
(or in the case of Restricted Stock Units, the number of implied shares determined by
dividing the value of the Restricted Stock Units by the per Share consideration received by
holders of Common Stock in the merger or sale of assets), to be solely common stock of the
successor corporation or its Parent equal in fair market value to the per Share
consideration received by holders of Common Stock in the merger or sale of assets.

     Notwithstanding anything in this Section 14(c) to the contrary, an Award that vests, is
earned or paid-out upon the satisfaction of one or more Performance Goals will not be
considered assumed if the Company or its successor modifies any of such Performance Goals
without the Participant’s consent; provided, however, a modification to such Performance
Goals only to reflect the successor corporation’s corporate structure post-merger or
post-sale of assets will not be deemed to invalidate an otherwise valid Award assumption.

     15. No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a
Participant any right with respect to continuing the Participant’s relationship as a Service
Provider with the Company, nor will they interfere in any way with the Participant’s right or the
Company’s right to terminate such relationship at any time, with or without cause, to the extent
permitted by Applicable Laws.

     16. Date of Grant. The date of grant of an Award shall be, for all purposes, the date on
which the Administrator makes the determination granting such Award, or such other later date as is
determined by the Administrator. Notice of the determination shall be provided to each Participant
within a reasonable time after the date of such grant.

     17. Amendment and Termination of the Plan.

     (a) Amendment and Termination. The Board may at any time amend, alter, suspend or
terminate the Plan.

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     (b) Stockholder Approval. The Company shall obtain stockholder approval of any Plan
amendment to the extent necessary and desirable to comply with Applicable Laws.

     (c) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan shall impair the rights of any Participant, unless mutually agreed
otherwise between the Participant and the Administrator, which agreement must be in writing
and signed by the Participant and the Company. Termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with respect to
Awards granted under the Plan prior to the date of such termination.

     18. Conditions Upon Issuance of Shares.

     (a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Award
unless the exercise of such Award and the issuance and delivery of such Shares shall comply
with Applicable Laws and shall be further subject to the approval of counsel for the Company
with respect to such compliance.

     (b) Investment Representations. As a condition to the exercise of an Award, the
Company may require the person exercising such Award to represent and warrant at the time of
any such exercise that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of counsel for the
Company, such a representation is required.

     19. Inability to Obtain Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     20. Stockholder Approval. The Plan shall be subject to approval by the stockholders of the
Company within twelve (12) months after the date the Plan is adopted. Such stockholder approval
shall be obtained in the manner and to the degree required under Applicable Laws.

14exv4w4

Exhibit 4.4

AMENDED AND RESTATED

NUANCE COMMUNICATIONS, INC. (FORMERLY KNOWN AS SCANSOFT, INC.)

(As amended on January 29, 2010)

1995 EMPLOYEE STOCK PURCHASE PLAN

     The following constitute the provisions of the 1995 Employee Stock Purchase Plan of Nuance
Communications, Inc (formerly known as ScanSoft, Inc.), as proposed to be amended and restated:

     1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the Company. It is the
intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under
Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of the Plan shall,
accordingly, be construed so as to extend and limit participation in a manner consistent with the
requirements of that section of the Code.

     2. Definitions.

     (a) “Board” shall mean the Board of Directors of the Company.

     (b) “Code” shall mean the Internal Revenue Code of 1986, as amended.

     (c) “Common Stock” shall mean the common stock of the Company.

     (d) “Company” shall mean Nuance Communications, Inc (formerly known as
ScanSoft, Inc.), a Delaware corporation.

     (e) “Compensation” shall mean an Employee’s regular straight time gross
earnings and shall not include payments for overtime, shift premium, incentive compensation,
incentive payments, commissions, bonuses and other compensation.

     (f) “Continuous Status as an Employee” shall mean the absence of any
interruption or termination of service as an Employee. Continuous Status as an Employee
shall not be considered interrupted in the case of a leave of absence agreed to in writing
by the Company, provided that such leave is for a period of not more than ninety (90) days
or reemployment upon the expiration of such leave is guaranteed by contract or statute.

     (g) “Contributions” shall mean all amounts credited to the account of a
participant pursuant to the Plan.

     (h) “Designated Subsidiary” shall mean any Subsidiary that has been designated
by the Board from time to time in its sole discretion as eligible to participate in the
Plan.

     (i) “Employee” shall mean any person who is an employee of an Employer for tax
purposes and is customarily employed for at least twenty (20) hours per week and more than
five (5) months in a calendar year by the Employer.

     (j) “Employer” shall mean the Company and any Designated Subsidiary of the
Company.

     (k) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     (l) “Offering Date” shall mean the first Trading Day of each Offering Period.

     (m) “Offering Period” shall mean a period of approximately twelve (12) months
during which an option granted pursuant to the Plan may be exercised, commencing on the
first Trading Day on or after February 16 and August 16 of each year and terminating on the
last Trading Day in the periods ending

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twelve (12) months later. The duration and timing of Offering Periods may be changed
pursuant to Section 4 hereof.

     (n) “Plan” shall mean this 1995 Employee Stock Purchase Plan.

     (o) “Purchase Date” shall mean the last Trading Day of each Purchase Period.

     (p) “Purchase Period” shall mean the approximately six (6) month period
commencing after one Purchase Date and ending with the next Purchase Date, except that the
first Purchase Period of any Offering Period shall commence on the Offering Date and end
with the next Purchase Date.

     (q) “Subsidiary” shall mean a corporation, domestic or foreign, of which not
less than fifty percent (50%) of the voting shares are held by the Company or a Subsidiary,
whether or not such corporation now exists or is hereafter organized or acquired by the
Company or a Subsidiary.

     (r) “Trading Day” shall mean a day on which U.S. national stock exchanges and
the Nasdaq System are open for trading.

     3. Eligibility.

     (a) Any person who is an Employee as of the Offering Date of a given Offering Period
shall be eligible to participate in such Offering Period under the Plan, subject to the
requirements of Section 5(a) hereof and the limitations imposed by Section 423(b) of the
Code.

     (b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be
granted an option under the Plan (i) if, immediately after the grant, such Employee (or any
other person whose stock would be attributed to such Employee pursuant to Section 424(d) of
the Code) would own stock and/or hold outstanding options to purchase stock possessing five
percent (5%) or more of the total combined voting power or value of all classes of stock of
the Company or of any Subsidiary, or (ii) if such option would permit his or her rights to
purchase stock under all employee stock purchase plans (described in Section 423 of the
Code) of the Company and its Subsidiaries to accrue at a rate which exceeds twenty-five
thousand dollars ($25,000) worth of stock (determined at the fair market value of such stock
at the time such option is granted) for each calendar year in which such option is
outstanding at any time.

     4. Offering Periods. The Plan shall be implemented by a series of consecutive,
overlapping Offering Periods, with a new Offering Period commencing on the first Trading Day on or
after February 16 and August 16 of each year (or at such other time or times as may be determined
by the Board), and continuing thereafter until terminated in accordance with Section 19 hereof. The
Board shall have the power to change the duration and/or the frequency of Offering Periods
(including the commencement dates thereof) with respect to future offerings without stockholder
approval if such change is announced at least fifteen (15) days prior to the scheduled beginning of
the first Offering Period to be affected thereafter. Eligible Employees may not participate in more
than one Offering Period at a time.

     5. Participation.

     (a) An Employee who is eligible to participate in the Plan pursuant to Section 3
hereof may become a participant in the Plan by completing an enrollment form provided by the
Company for such purpose and filing it with the Company’s payroll office prior to the
applicable Offering Date, unless a later time for filing the enrollment form is set by the
Board for all eligible Employees with respect to a given Offering Period.

     (b) Payroll deductions for a participant shall commence on the first payroll paid
following the Offering Date and shall end on the last payroll paid in the Offering Period to
which the enrollment form is applicable, unless sooner terminated by the participant as
provided in Section 10 hereof.

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     6. Method of Payment of Contributions.

     (a) At the time a participant files his or her enrollment form as provided in Section
5 hereof, he or she shall elect to have payroll deductions made on each payday during the
Offering Period in an amount not less than one percent (1%) and not more than twelve percent
(12%) of such participant’s Compensation on each such payday. All payroll deductions made
for a participant shall be credited to his or her account under the Plan and shall be
withheld in whole percentages only. A participant may not make any additional payments into
such account.

     (b) A participant may discontinue his or her participation in the Plan as provided in
Section 10 hereof, or, on one occasion only during the Offering Period, may decrease the
rate of his or her Contributions during the Offering Period by completing and filing with
the Company a new enrollment form authorizing the decrease in Contribute rate. The change in
rate shall be effective as of the beginning of the next calendar month following the date of
the Company’s receipt of the new enrollment form, if the form is received at least ten (10)
business days prior to such date and, if not, as of the beginning of the next succeeding
calendar month. A participant’s enrollment form shall remain in effect for successive
Offering Periods unless terminated as provided in Section 10 hereof.

     (c) Notwithstanding the foregoing, to the extent necessary to comply with Section
423(b)(8) of the Code and Section 3(b) hereof, a participant’s Contributions may be
decreased to zero percent (0%) at any time during a Offering Period. Contributions shall
recommence at the rate provided in such participant’s enrollment form at the beginning of
the first Purchase Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10 hereof.

     (d) At the time the option is exercised, in whole or in part, or at the time some or
all of the Common Stock issued under the Plan is disposed of, the participant must make
adequate provision for the Company’s federal, state, or other tax withholding obligations,
if any, which 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 the sale or early disposition of Common Stock by the
participant.

     7. Grant of Option.

     (a) On the Offering Date of each Offering Period, each eligible Employee participating
in such Offering Period shall be granted an option to purchase on each Purchase Date during
such Offering Period a number of shares of Common Stock determined by dividing such
participant’s Contributions accumulated prior to such Purchase Date and retained in the
participant’s account as of the Purchase Date by the purchase price specified in Section
7(b) below; provided, however, that the maximum number of shares a participant may purchase
during each Purchase Period shall be two thousand (2,000) shares (subject to any adjustment
pursuant to Section 18 hereof), and provided further that such purchase shall be subject to
the limitations set forth in Sections 3(b) and 13 hereof. The Board may, for future Offering
Periods, increase or decrease, in its absolute discretion, the maximum number of shares of
Common Stock that a participant may purchase during each Purchase Period of such Offering
Period. Exercise of the option shall occur as provided in Section 8 hereof, unless the
participant has withdrawn pursuant to Section 10 hereof. The option shall expire on the last
day of the Offering Period.

     (b) The purchase price per share of Common Stock covered by each option granted under
the Plan shall be the lower of: (i) eighty-five percent (85%) of the fair market value of a
share of Common Stock on the Offering Date; or (ii) eighty-five percent (85%) of the fair
market value of a share of Common Stock on the Purchase Date. The fair market value of the
Common Stock on a given date shall be determined by the Board in its discretion based on the
closing price of the Common Stock for such date (or, in the event that the Common Stock is
not traded on such date, on the immediately preceding trading date), as reported by The
Nasdaq National Market (“Nasdaq”) or, if such price is not reported, the mean of the bid and
asked prices per share of the Common Stock as reported by Nasdaq or, in the event the Common
Stock is listed on a stock exchange, the fair market value per share shall be the closing
price on such exchange on such

3

 

date (or, in the event that the Common Stock is not traded on such date, on the
immediately preceding trading date), as reported in The Wall Street Journal.

     8. Exercise of Option.

     (a) Unless a participant withdraws from the Plan as provided in Section 10 hereof, his
or her option for the purchase of shares of Common Stock will be exercised automatically on
each Purchase Date of an Offering Period, and the maximum number of full shares subject to
the option will be purchased for such participant at the applicable purchase price specified
in Section 7(b) hereof with the accumulated Contributions in his or her account. The shares
purchased upon exercise of an option hereunder shall be deemed to be transferred to the
participant on the Purchase Date. No fractional shares of Common Stock shall be purchased;
any Contributions accumulated in a participant’s account that are not sufficient to purchase
a full share shall be retained in the participant’s account for the subsequent Purchase
Period or Offering Period, subject to earlier withdrawal by the participant as provided in
Section 10 hereof. Any other cash remaining to the credit of a participant’s account under
the Plan after the Purchase Date shall be returned to said participant. During his or her
lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or
her.

     (b) If the Board determines that, on a given Purchase Date, the number of shares with
respect to which options are to be exercised may exceed (i) the number of shares of Common
Stock that were available for sale under the Plan on the Offering Date of the applicable
Offering Period, or (ii) the number of shares available for sale under the Plan on such
Purchase Date, the Board may in its sole discretion (x) provide that the Company shall make
a pro rata allocation of the shares of Common Stock available for purchase on such Offering
Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as
it shall determine in its sole discretion to be equitable among all participants exercising
options to purchase Common Stock on such Purchase Date, and continue all Offering Period
then in effect, or (y) provide that the Company shall make a pro rata allocation of the
shares available for purchase on such Offering Date or Purchase Date, as applicable, in as
uniform a manner as shall be practicable and as it shall determine in its sole discretion to
be equitable among all participants exercising options to purchase Common Stock on such
Purchase Date, and terminate any or all Offering Periods then in effect pursuant to Section
19 hereof. The Company may make pro rata allocation of the shares available on the Offering
Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding
any authorization of additional shares for issuance under the Plan by the Company’s
shareholders subsequent to such Offering Date.

9. Delivery. As promptly as practicable following each Purchase Date on which a
purchase of shares of Common Stock occurs, the Company shall arrange the delivery to each
participant, as appropriate, of a certificate representing the shares purchased upon
exercise of his or her option. If permitted by the Company, the shares will be
electronically delivered to a brokerage account for the benefit of the participant. If the
Company designates or approves a stock brokerage or other financial services firm (the “ESPP
Broker”) to hold shares purchased under the Plan for the accounts of participants, the
following procedures shall apply. Promptly following each Purchase Date, the number of
shares of Common Stock purchased by each participant shall be deposited into an account
established in the participant’s name with the ESPP Broker. Each participant shall be the
beneficial owner of the Common Stock purchased under the Plan and shall have all rights of
beneficial ownership in such Common Stock. A participant shall be free to undertake a
disposition of the shares of Common Stock in his or her account at any time, but, in the
absence of such a disposition, the shares of Common Stock must remain in the participant’s
account at the ESPP Broker until the holding period set forth in Code Section 423 has been
satisfied. With respect to shares of Common Stock for which the holding period set forth
above has been satisfied, the participant may move those shares of Common Stock to another
brokerage account of the participant’s choosing or request that a stock certificate be
issued and delivered to him or her. Dividends paid in the form of shares of Common Stock
with respect to Common Stock in a participant’s account shall be credited to such account.

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10. Voluntary Withdrawal; Termination of Employment.

     (a) A participant may withdraw all but not less than all the Contributions credited to
his or her account and not yet used to exercise his or her option under the Plan at any time
prior to each Purchase Date by giving written notice to the Company. All of the
participant’s Contributions credited to his or her account will be paid to him or her
promptly after the Company’s receipt of his or her notice of withdrawal and his or her
option for the Offering Period will be automatically terminated, and no further
Contributions for the purchase of shares will be made during the Offering Period. If a
participant withdraws from an Offering Period, Contributions shall not resume at the
beginning of the succeeding Offering Period unless the participant files a new enrollment
form in accordance with Section 5 hereof.

     (b) Upon termination of a participant’s Continuous Status as an Employee prior to the
Purchase Date of an Offering Period for any reason, including retirement or death, he or she
will be deemed to have elected to withdraw from the Plan and the Contributions credited to
his or her account but not yet used to exercise his or her option under the Plan will be
returned to him or her or, in the case of his or her death, to the person or persons
entitled thereto under Section 14 hereof, and his or her option will be automatically
terminated.

     (c) In the event an Employee fails to remain in Continuous Status as an Employee for
at least twenty (20) hours per week during the Offering Period in which the Employee is a
participant, he or she will be deemed to have elected to withdraw from the Plan and the
Contributions credited to his or her account but not yet used to exercise his or her option
under the Plan will be returned to him or her, and his or her option will be automatically
terminated.

     (d) A participant’s withdrawal from an Offering Period will not have any effect upon
his or her eligibility to participate in a succeeding Offering Period that commences after
the termination of the Offering Period from which the participant withdraws or in any
similar plan which may hereafter be adopted by the Company.

     11. Interest. No interest shall accrue on the Contributions of a participant in the
Plan.

     12. Stock.

     (a) The maximum number of shares of Common Stock which shall be made available for
sale under the Plan shall be ten million (10,000,000) shares, subject to adjustment upon
changes in the capitalization of the Company as provided in Section 18 hereof. If the total
number of shares which otherwise be subject to options granted pursuant to Section 7(a)
hereof on the Offering Date of an Offering Period exceeds the number of shares then
available under the Plan (after deduction of all shares for which options have been
exercised or are then outstanding), the Company shall make a pro rata allocation of the
shares remaining available for option grant in as uniform a manner as shall be practicable
and as it shall determine to be equitable. In such event, the Company shall give written
notice of such reduction of the number of shares subject to the option to each Employee
affected thereby and shall similarly reduce the rate of Contributions, if necessary.

     (b) The participant will have no right to vote or receive dividends or any other
rights as a shareholder of the Company with respect to the shares covered by his or her
option until such option has been exercised and certificates representing such shares have
been issued, recorded on the records of the Company or its transfer agents or registrars,
and delivered to the participant as provided in Section 9 hereof.

     (c)
Shares to be delivered to a participant under the Plan will be registered in the
name of the participant or in the name of the participant and his or
her spouse.

     13. Administration. The Board, or a committee named by the Board, shall supervise
and administer the Plan, and shall have full and exclusive discretionary power to adopt, amend and
rescind any rules deemed desirable and appropriate for the administration of the Plan and not
inconsistent with the Plan, to construe, interpret and apply the terms of the Plan, to determine
eligibility and to adjudicate all disputed claims filed under the Plan, and to make all other
determinations necessary or advisable for the administration of the Plan. Every finding, decision
and

5

 

determination made by the Board or its committee shall, to the fullest extent permitted by
law, be final and binding upon all parties.

     14. Designation of Beneficiary.

     (a) A participant may file a written designation of a beneficiary who is to receive
any shares and cash, if any, from the participant’s account under the Plan in the event of
such participant’s death subsequent to a Purchase Date on which the option is exercised but
prior to delivery to him or her of such shares and cash. In addition, a participant may file
a written designation of a beneficiary who is to receive any cash from the participant’s
account under the Plan in the event of such participant’s death prior to the exercise of the
option. If a participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective.

     (b) Such designation of beneficiary may be changed by the participant (and his or her
spouse, if any) at any time by written notice. In the event of the death of a participant
and in the absence of a beneficiary validly designated under the Plan who is living at the
time of such participant’s death, the Company shall deliver such shares and/or cash to the
executor or administrator of the estate of the participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company, in its
discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known
to the Company, then to such other person as the Company may designate.

     15. Transferability. Neither Contributions credited to a participant’s account nor
any rights with regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution, or as provided in Section 14 hereof) by the participant. Any such attempt
at assignment, transfer, pledge or other disposition shall be without effect, except that the
Company may treat such act as an election to withdraw funds from an Offering Period in accordance
with Section 10 hereof.

     16. Use of Funds. All Contributions received or held by the Company under the Plan
may be used by the Company for any corporate purpose, and the Company shall not be obligated to
segregate such Contributions.

     17. Reports. Individual accounts will be maintained for each participant in the
Plan. Statements of account will be given to participating Employees promptly following the
Purchase Date, which statements will set forth the amounts of Contributions, the purchase price per
share, the number of shares purchased and the remaining cash balance, if any.

     18. Adjustments Upon Changes in Capitalization; Corporate Transactions.

     (a) Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by each option
under the Plan which has not yet been exercised and the number of shares of Common Stock
which have been authorized for issuance under the Plan but have not yet been placed under
option (collectively, the “Reserves”), as well as the purchase price per share and the
number of shares of Common Stock covered by each option under the Plan which has not yet
been exercised and the maximum number of shares each participant may purchase during each
[Purchase] Period (pursuant to Section 7 hereof), shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of the Common
Stock, or any other increase or decrease in the number of shares of Common Stock effected
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, whose determination
in that respect shall be final, binding and conclusive. Except as expressly provided herein,
no issuance by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof shall be
made with respect to, the number or price of shares of Common Stock subject to an option.

6

 

     (b) Corporate Transactions. In the event of the proposed dissolution or
liquidation of the Company, the Offering Period then in progress will terminate immediately
prior to the consummation of such proposed action, unless otherwise provided by the Board.
In the event of a proposed sale of all or substantially all of the assets of the Company, or
the merger of the Company with or into another corporation, each outstanding option under
the Plan shall be assumed or an equivalent option shall be substituted by such successor
corporation or a parent or subsidiary of such successor corporation, unless the Board
determines, in the exercise of its sole discretion and in lieu of such assumption or
substitution, to shorten the Offering Period then in progress by setting a new Purchase Date
(the “New Purchase Date”). If the Board shortens the Offering Period then in progress in
lieu of assumption or substitution in the event of a merger or sale of assets, the Board
shall notify each participant in writing, at least ten (10) days prior to the New Purchase
Date, that the Purchase Date for his or her option has been changed to the New Purchase
Date, and that his or her option will be exercised automatically on the New Purchase Date,
unless prior to such date he or she has withdrawn from the Offering Period as provided in
Section 10 hereof. For purposes of this paragraph, an option granted under the Plan shall be
deemed to be assumed if, following the sale of assets or merger, the option confers the
right to purchase, for each share of option stock subject to the option immediately prior to
the sale of assets or merger, the consideration (whether stock, cash or other securities or
property) received in the sale of assets or merger by holders of Common Stock for each share
of Common Stock held on the effective date of the transaction (and if such holders were
offered a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding shares of Common Stock); provided, however, that if such
consideration received in the sale of assets or merger was not solely common stock of the
successor corporation or its parent (as defined in Section 424(e) of the Code), the Board
may, with the consent of the successor corporation and the participant, provide for the
consideration to be received upon exercise of the option to be solely common stock of the
successor corporation or its parent equal in fair market value to the per share
consideration received by holders of Common Stock and the sale of assets or merger. The
Board may, if it so determines in the exercise of its sole discretion, also make provision
for adjusting the Reserves, as well as the purchase price per share of Common Stock covered
by each outstanding option, in the event that the Company effects one or more
reorganizations, recapitalizations, rights offerings or other increases or reductions of
shares of its outstanding Common Stock, and in the event of the Company being consolidated
with or merged into any other corporation.

     19. Amendment or Termination.

     (a) The Board may at any time and for any reason terminate or amend the Plan. Except
as provided in Section 18 and this Section 19 hereof, no such termination may affect options
previously granted, nor may an amendment make any change in any option theretofore granted
which adversely affects the rights of any participant. In addition, to the extent necessary
to comply with Section 423 of the Code (or any successor rule or provision or any applicable
law or regulation), the Company shall obtain stockholder approval in such a manner and to
such a degree as so required.

     (b) Without stockholder consent and without regard to whether any participant rights
may be considered to have been “adversely affected,” the Board (or its committee) shall be
entitled to change the Offering Periods, limit the frequency and/or number of changes in the
amount withheld during an Offering Period, establish the exchange ratio applicable to
amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess
of the amount designated by a participant in order to adjust for delays or mistakes in the
Company’s processing of properly completed withholding elections, establish reasonable
waiting and adjustment periods and/or accounting and crediting procedures to ensure that
amounts applied toward the purchase of Common Stock for each participant properly correspond
with amounts withheld from the participant’s Compensation, and establish such other
limitations or procedures as the Board (or its committee) determines in its sole discretion
advisable which are consistent with the Plan.

     (c) In the event the Board determines that the ongoing operation of the Plan may
result in unfavorable financial accounting consequences, the Board may, in its discretion
and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate
such accounting consequence including, but not limited to:

7

 

     (i) altering the purchase price per share of the shares offered in any Offering
Period including an Offering Period underway at the time of the change in purchase
price;

     (ii) shortening any Offering Period so that Offering Period ends on a new
Purchase Date, including an Offering Period underway at the time of the Board
action; and

     (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the consent of
any Plan participants.

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

     21. Conditions Upon Issuance of Shares. Shares of Common Stock shall not be issued
with respect to an option under the Plan unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable provisions of law,
domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock
exchange upon which the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance. As a condition to the exercise of an
option, the Company may require the person exercising such option to represent and warrant at the
time of any such exercise that the shares are being purchased only for investment and without any
present intention to sell or distribute such shares if, in the opinion of counsel for the Company,
such a representation is required by any of the aforementioned applicable provisions of law.

     22. No Effect on Employment. Nothing in the Plan shall be deemed to give any
Employee the right to be retained in the employ of any Employer or to interfere with the right of
the Employer to discharge the Employee at any time.

     23. Term of Plan; Effective Date. The Plan shall become effective upon the earlier
to occur of its adoption by the Board or its approval by the stockholders of the Company. It shall
continue in effect for a term of twenty (20) years unless sooner terminated under Section 19
hereof.

8

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