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Exhibit 10.04    
    

 
 

ALIBRIS
  
    1998 STOCK OPTION PLAN    
    

        1.    Adoption and Purpose of the Plan.    This stock option plan, to be known as the "Alibris 1998 Stock Option Plan"
(the "Plan") has been adopted by the board of directors (the "Board") of Alibris, a California
corporation (the "Company"), and is subject to the approval of its shareholders pursuant to section 7 below. The purpose of this Plan is to
advance the interests of the Company and its shareholders by enabling the Company to attract and retain qualified directors, officers, employees, independent contractors, consultants and advisers by
providing them with an opportunity for investment in the Company. The options that may be granted hereunder ("Options") represent the right by the
grantee thereof ("Optionee") to acquire shares of the Company's common stock ("Shares" which if acquired
pursuant to the exercise of an Option will be referred to as "Option Shares") subject to the terms and conditions of this Plan and a written agreement
between the Company and the Optionee to evidence each such Option (an "Option Agreement"). 

        2.    Certain Definitions.    The defined terms set forth in Exhibit A attached hereto and incorporated herein
(together with other capitalized terms defined elsewhere in this Plan) will govern the interpretation of this Plan. 

        3.    Eligibility.    The Company may grant Options under this Plan only to (i) persons who, at the time of
such grant, are directors, officers and/or employees of the Company and/or any of its Subsidiaries, and (ii) persons who, and entities which, at the time of such grant, are independent
contractors, consultants or advisers of the Company and/or any of its Subsidiaries ("Eligible Participants"). Subject to the provisions of
section 4 of this Plan, there is no limitation on the number of Options that may be granted to an Eligible Participant. 

        4.    Option Pool; Shares Reserved for Options.    In no event will the Company issue, in the aggregate, more than
Three Hundred Sixty Thousand Shares (the "Option Pool") pursuant to the exercise of all Options granted under this Plan, exclusive of those Option
Shares that may be reacquired by the Company by repurchase or otherwise; provided that in order to comply with the requirements of
Section 260.140.45 of Title 10 of the California Code of Regulations (the "30% Rule"), at no time will the total number of Shares that either
(x) may be acquired pursuant to the exercise of all outstanding Options granted hereunder or under any other outstanding options or warrants issued by the Company (exclusive of certain excluded
rights and warrants described in the 30% Rule), or (y) are provided for under any stock bonus or similar plan of the Company, in the aggregate exceed 30% of the total number of then issued and
outstanding Shares of the Company (including shares of convertible preferred stock or convertible senior common stock on an as converted basis), unless
a percentage higher than 30% has been approved by at least two-thirds of the outstanding Shares of the Company entitled to vote. At all times while Options granted under this Plan are
outstanding, the Company will reserve for issuance for the purposes hereof a sufficient number of authorized and unissued Shares to fully satisfy the Company's obligations under all such outstanding
Options. 

        5.    Administration.    This Plan will be administered and interpreted by the Board, or by a committee consisting of
two or more members of the Board, appointed by the Board for such purpose (the Board, or such committee, referred to herein as the "Administrator").
Subject to the express terms and conditions hereof, the Administrator is authorized to prescribe, amend and rescind rules and regulations relating to this Plan, and to make all other determinations
necessary or advisable for its administration and interpretation. Specifically, the Administrator will have full and final authority in its 

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discretion,
subject to the specific limitations on that discretion as are set forth herein and in the Articles of Incorporation or Bylaws of the Company at any time: 

	(a)
	to
select and approve the Eligible Participants to whom Options will be granted; provided that no Option may be granted to any person
after he or she ceases, or to any entity after it ceases, for any reason, to be an Eligible Participant (a "Loss of Eligibility Status");

	(b)
	to
determine the Fair Market Value of the Shares as of the Grant Date for any Option;

	(c)
	with
respect to each Option, to determine the terms and conditions of the Option, to be set forth in the Option Agreement evidencing the Option (the form of which also being subject
to approval by the Administrator), which may vary from the "default" terms and conditions set forth in section 6 below, except to the extent otherwise provided, including, without limitation,
as follows:

	(i)
	the
total number of Option Shares that may be acquired by the Optionee pursuant to the Option;

	(ii)
	whether
the Option granted to an employee of the Company or its Subsidiary will be designated an ISO; if an Option does not expressly so indicate, the Option will not
be deemed an ISO;

	(iii)
	the
per share purchase price to be paid to the Company by the Optionee to acquire the Option Shares issuable upon exercise of the Option (the
"Option Price"); provided that the Option Price will not be less than 85% of the Fair Market Value of
the Shares as of the Grant Date, unless the Optionee is a 10% Shareholder, in which case the Option Price will not be less than 110% of such Fair Market Value;

	(iv)
	the
maximum period or term during which the Option will be exercisable (the "Option Term"),  provided that in no event may the Option Term be longer than
10 years from the Grant Date;

	(v)
	the
maximum period following any Loss of Eligibility Status with respect to the Optionee, whether resulting from his or her death, disability or any other reason, during
which period (the "Grace Period") the Option will be exercisable, provided that in no event may the
Administrator designate a Grace Period that is shorter than six months after such Loss of Eligibility Status by reason of the Optionee's death or disability, or 30 days after such Loss of
Eligibility Status for any other reason, except in the event of a just Cause Termination, in which case no Grace Period will be required (i.e., the Option will terminate immediately);

	(vi)
	whether
to accept a promissory note or other form of payment as a form of legal consideration in addition to cash as payment of all or a portion of the Option Price
and/or Tax Withholding Liability to be paid by the Optionee upon the exercise of an Option granted hereunder;

	(vii)
	the
conditions (e.g., the passage of time or the occurrence of events), if any, that must be satisfied prior to the vesting of the right to exercise all or specified
portions of an Option (such portions being described as a percentage of the total number of Option Shares that may be acquired by the Optionee pursuant to the Option; the vested portion being referred
to as a "Vested Option" and the unvested portion being referred to as an "Unvested Option");  provided that
no such conditions (except the Loss of Eligibility Status of the Optionee, after which no Unvested Option will become a Vested Option) may
be imposed which prevents an Optionee who is an employee, but who is neither an officer or director, of the Company or any of its Subsidiaries, from purchasing at least 20% of the Option Shares
initially subject to the Option as of the first anniversary of the Grant Date, 

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and
as of each anniversary thereafter, such that by the fifth anniversary of the Grant Date (assuming no such Loss of Eligibility Status) the entire Option would be deemed a Vested Option; and 

	(viii)
	in
addition, or as an alternative, to imposing conditions on the right to exercise an Option as provided in section 5(c)(vii) above, whether any portion
of the Option Shares acquired by an Optionee upon exercise of an Option will be subject to repurchase by the Company or its assigns pursuant to section 6.8(c) below at the Option Price paid for
such Shares (such Shares, if subject to repurchase at less than Fair Market Value, being referred to as "Unvested Shares") following a Termination of
Eligibility Status or other designated event, and the conditions (e.g., the passage of time or the occurrence of events), if any, that must be satisfied for such Shares to be no longer subject to such
right of repurchase at such Option Price (such Shares being referred to as "Vested Shares"); provided
that no such conditions (except an Optionee's Termination of Eligibility Status, after which no Unvested Shares will become Vested Shares) may be imposed which prevent Unvested
Shares held by an employee, who is neither an officer or director, of the Company and/or any of its Subsidiaries, from becoming Vested Shares at the rate of at least twenty percent (20%) per year
following the Grant Date, such that by the fifth anniversary of the Grant Date (assuming no earlier Termination of Eligibility Status) all of the Shares would be deemed Vested Shares;

	(d)
	to
delegate all or a portion of the Administrator's authority under sections 5(a), (b) and (c) above to one or more members of the Board who also are executive officers
of the Company, and subject to such restrictions and limitations as the Administrator may decide to impose on such delegation. 

        6.    Default Terms and Conditions of Option Agreements.    Unless otherwise expressly provided in an Option Agreement
based on the Administrator's determination pursuant to section 5(c) above, the following terms and conditions will be deemed to apply to each Option as if expressly set forth in the Option
Agreement, provided that in no event may an Option Agreement modify the provisions of section 6.7(a): 

        6.1    ISO.    If an Option is granted to an Eligible Participant who, as of the Grant Date, is an employee of the
Company or any Subsidiary (as determined under Section 3401(c) of the Code), and the Option is designated by the Administrator as an ISO and the Option Agreement so states, then the Option will
be subject to the following additional terms and conditions: 

	(a)
	To
the extent that the Fair Market Value of Option Shares (determined as of the Grant Date) with respect to which all ISOs are exercisable for the first time by any individual during
any calendar year (pursuant to this Plan and all other plans of the Company and/or its Subsidiaries) exceeds $100,000, an Option granted to such Optionee will  not be treated as an ISO.

	(b)
	The
Option Price will not be less than 100% of the Fair Market Value of the Shares as of the Grant Date, except that if the Optionee is a 10% Shareholder the Option Price will not be
less than 110% of the Fair Market Value of the Shares as of the Grant Date, and the Option Term may not be more than five (5) years.

	(c)
	Notwithstanding
any Grace Period selected by the Administrator pursuant to section 5(c)(v) above, or the default provisions of section 6.3 below, the tax
treatment available pursuant to Section 422 of the Code upon the exercise of the ISO will not be available to an Optionee who exercises the Option (if permitted to do so) more than
(i) three months following the Optionee's Loss of Eligibility Status other than by reason of his or her 

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death
or disability, or (ii) 12 months following such Optionee's Loss of Eligibility Status by reason or his or her disability, whichever case may be applicable. 

        6.2    Option Term.    The Option Term will be for a period of 10 years beginning on the Grant Date (subject to
section 6.1(b) above in the case of an ISO granted to a 10% Shareholder). 

        6.3    Grace Periods.    Following a Loss of Eligibility Status: 

	(a)
	the
Grace Period will be sixty days, unless the Loss of Eligibility Status is a result of a just Cause Termination or the death or disability of the Optionee;

	(b)
	the
Grace Period will be six months if the Loss of Eligibility Status is a result of the death or disability of the Optionee;

	(c)
	the
Option will terminate, and there will be no Grace Period, effective immediately as of the date and time of a Loss of Eligibility Status which results from a Just Cause Termination
of the Optionee, regardless of whether the Option is Vested or Unvested; and

	(d)
	in
all events following a Loss of Eligibility Status, no portion of an Option may be exercised as would result in the purchase of Unvested Shares. 

        6.4    Vesting.    Section 5(c)(viii), and not section 5(c)(vii), will apply to the Option. The shares
into which the Option is exercisable initially will be deemed entirely Unvested Shares, but portions of the shares into which the Option is exercisable will become Vested Shares on the following
schedule: 

	(a)
	twenty-five
percent (25%) will become Vested Shares as of the first anniversary of the "Vesting Start Date" specified in the Option Agreement (which may be earlier than
the Grant Date specified therein);

	(b)
	the
balance of the shares into which the Option is exercisable will become Vested Shares pro rata monthly over the three year period commencing with the first anniversary of such
Vesting Start Date; and

	(c)
	upon
a Change of Control Transaction, an additional twelve and one-half percent (12.5%) of the shares into which the Option is exercisable will become Vested Shares;
provided that the Optionee is employed by the Company immediately prior to the Change of Control Transaction and is terminated without cause by the Successor Entity upon or within six months after the
time of the Change of Control Transaction as a result thereof. 

provided that the Optionee does not suffer a Loss of Eligibility Status prior to each such vesting date and provided further
that additional vesting will be suspended during any period while the Optionee is on a leave of absence from the Company, as determined by the Administrator. 

        6.5    Exercise of the Option; Issuance of Share Certificate.    

	(a)
	Subject
to section 6.5(d) below, the portion of the Option that is a Vested Option may be exercised by giving written notice thereof to the Company, on such form as may be
specified by the Administrator, but in any event stating: the Optionee's intention to exercise the Option; the date of exercise; the number of full Option Shares to be purchased (which number will be
no less than 100 Shares, without regard to adjustments to the number of Shares subject to the Option pursuant to section 8 below, or, if less, all of the remaining Shares subject to the
Option); the amount and form of payment of the Option Price; and such assurances of the Optionee's investment intent as the Company may require to ensure that the transaction complies in all respects
with the requirements of the 1933 Act and other applicable securities laws. The notice of exercise will be signed by the person or persons exercising the Option. In the event that the Option is being
exercised by the representative of the Optionee, the notice will be accompanied by proof satisfactory to the Company of the representative's right to 

4

 

exercise
the Option. The notice of exercise will be accompanied by full payment of the Option Price for the number of Option Shares to be purchased, in United States dollars, in cash, by check made
payable to the Company, or by delivery of such other form of payment (if any) as approved by the Administrator in the particular case. 

	(b)
	To
the extent required by applicable federal, state, local or foreign law, and as a condition to the Company's obligation to issue any Shares upon the exercise of the Option in full
or in part, the Optionee will make arrangements satisfactory to the Company for the payment of any applicable Tax Withholding Liability that may arise by reason of or in connection with such exercise.
Such arrangements may include, in the Company's sole discretion, that the Optionee tender to the Company the amount of such Tax Withholding Liability, in cash, by check made payable to the Company, or
in the form of such other payment as may be approved by the Administrator, in its discretion pursuant to section 5(c)(vi) above.

	(c)
	After
receiving a proper notice of exercise and payment of the applicable Option Price and Tax Withholding Liability, the Company will cause to be issued a certificate or certificates
for the Option Shares as to which the Option has been exercised, registered in the name of the person rightfully exercising the Option and the Company will cause such certificate or certificates to be
delivered to such person. 

        6.6    Compliance with Law.    Notwithstanding any other provision of this Plan, Options may be granted pursuant to
this Plan, and Option Shares may be issued pursuant to the exercise thereof by an Optionee, only after and on the condition that there has been compliance with all applicable federal
and state securities laws. The Company will not be required to list, register or qualify any Option Shares upon any securities exchange, under any applicable state, federal or foreign law or
regulation, or with the Securities and Exchange Commission or any state agency, or secure the consent or approval of any governmental regulatory authority, except that if at any time the Board
determines, in its discretion, that such listing, registration or qualification of the Option Shares, or any such consent or approval, is necessary or desirable as a condition of or in connection with
the exercise of an Option and the purchase of Option Shares thereunder, that Option may not be exercised, in whole or in part, unless and until such listing, registration, qualification, consent or
approval is effected or obtained free of any conditions that are not acceptable to the Board, in its discretion. However, the Company will seek to register or qualify with, or as may be provided by
applicable local law, file for and secure an exemption from such registration or qualification requirements from, the applicable securities administrator and other officials of each jurisdiction in
which an Eligible Participant would be granted an Option hereunder prior to such grant. 

        6.7    Restrictions on Transfer.    

        (a)    Options Nontransferable.    No Option will be transferable by an Optionee otherwise than by will or the laws of
descent and distribution. During the lifetime of a natural person who is granted an Option under this Plan, the Option will be exercisable only by him or her. 

        (b)    Prohibited Transfers.    Prior to the Initial Public Offering, no Holder of any Option Shares may Transfer such
Shares, or any interest therein: (i) except as expressly provided in this Plan; and (ii) in full compliance with all applicable securities laws. All Transfers of Option Shares not
complying with the specific limitations and conditions set forth in this section 6.7 and section 6.8 below are expressly prohibited. Any prohibited Transfer is void and of no effect, and
no purported transferee in connection therewith will be recognized as a Holder of Option Shares for any purpose whatsoever. Should such a Transfer purport to occur, the Company may refuse to carry out
the Transfer on its books, attempt to set aside the Transfer, enforce any undertakings or rights under this Plan, or exercise any other legal or equitable remedy. 

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        (c)    Conditions to Transfer.    It will be a condition to any Transfer of any Option Shares that: 

	(i)
	the
transferee of the Shares will execute such documents as the Company may reasonably require to ensure that the Company's rights under this Plan, and any applicable
Option Agreement, are adequately protected with respect to such Shares, including, without limitation, the transferee's agreement to be bound by all of the terms and conditions of this Plan and such
Agreement, as if he or she were the original Holder of such Shares; and

	(ii)
	the
Company is satisfied that such Transfer complies in all respects with the requirements imposed by applicable state and federal securities laws and regulations. 

        (d)    Market Standoff.    If in connection with any public offering of securities of the Company (or any Successor
Entity), the underwriter or underwriters managing such offering so requests, then each Optionee and each Holder of Option Shares will agree to not sell or otherwise Transfer any such Shares (other
than Shares included in such underwriting) without the prior written consent of such underwriter, for such period of time as may be requested by the underwriter (not to exceed 210 days)
commencing on the effective date of the registration statement filed with the Securities and Exchange Commission in connection with such offering. 

        6.8    Rights of Purchase and First Refusal.    The Company will have the following rights of purchase and first
refusal with respect to Option Shares, provided that the rights set forth in sections (a) and (b) will terminate upon the closing of the Initial Public Offering: 

        (a)    Right of First Refusal.    If any Holder proposes to Transfer any Option Shares, other than in the case of an
Involuntary or Donative Transfer subject to section 6.8(b) below, the Company will have an assignable right of first refusal to purchase such Shares on the terms and conditions set out in this
section 6.8(a). If the Company (or its assignee) elects to exercise such right, it will do so on an all-or-nothing basis with respect to any particular Transfer of
Shares in the following manner: 

	(i)
	Before
any such Transfer, the Holder proposing to Transfer such Shares will deliver a notice of proposed Transfer (a "Proposed Transfer
Notice") to the Company stating: the number of Option Shares that the Holder proposes to Transfer and the Holder's bona fide
intention to Transfer such Shares; the names and addresses of the Holder, the proposed transferee and subsequently such other information regarding such transferee as the Company reasonably requests;
the manner and date of such proposed Transfer; and the bona fide cash price and/or other consideration (and the fair market value thereof) per share, if
any, that such Transferee has offered to pay Holder for such Shares (the "Offered Price") as well as such other terms, including payment terms, and
conditions, if any, as were included in such offer (the "Offered Terms").

	(ii)
	The
Company (or its assignee) may exercise its right of first refusal under this section 6.8(a) at any time not more than thirty (30) days after the
Company has received the Proposed Transfer Notice with respect to such Shares. If the Company (or its assignee) elects to exercise such purchase rights it will do so by delivering to the Holder of
such Shares a notice of such election and a closing date that is no more than sixty (60) days after receipt of the Proposed Transfer Notice (or such later date as the transferee may have
offered or on which the Transfer is otherwise scheduled to occur).

	(iii)
	At
the closing of the sale of the Shares to the Company (or its assignee), to be held at its principal executive offices, the Company (or its assignee) will pay the
Holder of the Shares, in cash, the purchase price equal to the Offered Price, subject to an appropriate 

6

 

adjustment
to take into account any deferred payment terms that were included in the Offered Terms, except in the case of a Transfer of Option Shares without consideration;  provided that if the Offered Price
includes any non-cash consideration, the value thereof for purposes of this section 6.8(a) will be
determined in good faith by the Board. 

	(iv)
	If
the Company (including its assignees) fails or refuses to exercise its rights under this section 6.8(a) with respect to any Shares that are the subject of any
Proposed Transfer Notice, then the Holder will have the right to Transfer such Shares to the transferee named in such Notice at the Offered Price and upon such Offered Terms as were set forth in such
Notice; provided that such Transfer must be completed within ninety (90) days after the Company has received the Proposed Transfer Notice with
respect to such Shares. 

        (b)    Following an Involuntary or Donative Transfer.    Following any Involuntary Transfer or Donative Transfer of
Option Shares (the "Transferred Shares"), the Company will have the assignable right to purchase from the transferee of the Transferred Shares
("Transferee") all or a portion of such Shares for a purchase price that is equal to the Fair Market Value of those Shares as of the date of such
Transfer. If the Company (or its assignee) elects to exercise such right, it will do so in the following manner: 

	(i)
	Promptly
after such Transfer, the transferor of the Transferred Shares will deliver, or will cause the Transferee to deliver, a notice (a
"Completed Transfer Notice") to the Company stating: the number of Transferred Shares; the names and addresses of the transferor and the Transferee, and
subsequently such other information regarding the Transferee as the Company reasonably requests; and the manner, circumstances and date of such Transfer.

	(ii)
	The
Company (or its assignee) may exercise its purchase rights under this section 6.8(b) at any time not more than ninety (90) days after the Company has
received the Completed Transfer Notice with respect to the Transferred Shares. If the Company (or its assignee) elects to exercise such purchase rights it will do so by delivering to the Transferee a
notice of such election, specifying the number of Transferred Shares to be purchased and a dosing date that is no more than sixty (60) days after the giving of such notice.

	(iii)
	At
such closing, to be held at the Company's principal executive offices, the Company (or its assignee) will pay the Transferee the purchase price specified in this
section 6.8(b). 

        (c)    Following a Loss of Eligibility Status.    Following any Loss of Eligibility Status by the Original Holder of
an Option, the Company will have the assignable right (but not the obligation) to purchase from the Holder of Shares acquired pursuant to the exercise of the Option (except to the extent that such
Shares previously were transferred in a transaction as to which section 6.8(a) or (b) applied), all or a portion of such Shares as of the date of Loss of Eligibility Status for a
purchase price that is equal to (1) in the case of Unvested Shares, the Option Price per Share paid upon the exercise of the Option, and (2) in the case of Vested Shares, the greater of
(A) the Option Price per Share paid upon exercise of the Option and (B) the Fair Market Value of such Shares as of the date of such Loss of Eligibility Status, provided that the right to
purchase Vested Shares shall terminate upon the Initial Public Offering. Such right will be exercisable in the following manner: 

	(i)
	The
Company (or its assignee) may exercise its right of repurchase under this section 6.8(c) at any time not more than ninety (90) days after the effective
date of the Loss of Eligibility Status of the Original Holder of the Option (or in the case of Shares issued upon the exercise of Options after such Loss of Eligibility Status, a period of ninety
(90) days after the date of the exercise). If the Company (or its assignee) elects to 

7

 

exercise
such purchase rights it will do so by delivering to the Holder of such Shares a notice of such election, specifying the number of Shares to be purchased and a closing date that is within such
ninety (90) day period. 

	(ii)
	At
such closing, to be held at the Company's principal executive offices, the Company (or its assignee) will pay the Holder of the Shares, the purchase price, as
specified in this section 6.8(c), in cash, or by cancellation of indebtedness to the Company, if any, incurred by the original purchaser of the Option Shares to purchase the same, or both, at a
closing to be held at the Company's principal executive offices on the date specified in such notice. 

        (d)    Escrow.    For purposes of facilitating the enforcement of the restrictions on Transfer set forth in this Plan
or in any Option Agreement, the Administrator may, at its discretion, require the Holder of Option Shares to deliver the certificate(s) for such Shares with a stock power executed by him or her and by
his or her spouse (if required for Transfer), in blank, to the Secretary of the Company or his or her designee, to hold said certificate(s) and stock power(s) in escrow and to take all such actions
and to effectuate all such Transfers and/or releases as are in accordance with the terms of this Plan. The certificates may be held in escrow so long as the Option Shares whose ownership they evidence
are
subject to any right of repurchase or first refusal under this Plan or under an Option Agreement, and shall be released by the escrow holder to an Optionee (or to any permitted transferee of the
Optionee) when they are no longer subject to any right of repurchase or first refusal under this Plan or under the Option Agreement. Each Optionee, by exercising an Option, thereby acknowledges that
the Secretary of the Company (or his or her designee) is so appointed as the escrow holder with the foregoing authorities as a material inducement to the grant of an Option under this Plan, that the
appointment is coupled with an interest, and that it accordingly will be irrevocable. The escrow holder will not be liable to any party to an Option Agreement (or to any other party) for any actions
or omissions unless the escrow holder is grossly negligent relative thereto. The escrow holder may rely upon any letter, notice or other document executed by any signature purported to be genuine. 

        6.9    Change of Control Transactions.    Notwithstanding any other provision of this Plan, in the event of a Change
of Control Transaction (as defined herein): 

        (a)   with
respect to all Options that have been granted hereunder and that are outstanding as of the consummation of such Change of Control Transaction, the Board, in its
sole discretion, may determine that it is in the best interests of the Company, and if so may take all appropriate action either to: 

	(i)
	cancel
all such Options effective as of the consummation of the Change of Control Transaction and, in connection with each Option, any portion of which is a Vested,
Option, notify the Optionee of the proposed Change of Control Transaction reasonably prior to its consummation so that the Optionee will have an opportunity to exercise the Vested Option immediately
prior to such consummation; or

	(ii)
	require
the Successor Entity in such Change of Control Transaction to assume the outstanding Options or substitute therefor comparable options of such Successor Entity
(or of its parent or its Subsidiary); and 

        (b)   with
respect to all Option Shares that have been issued and that are outstanding as of the consummation of such Change of Control Transaction, the Company will have the
right (but not the obligation) to repurchase all (but not less than all) of such Shares by paying each Holder thereof cash, or cancelling any indebtedness of such Holder to the Company, or both, at a
closing to be held contemporaneously with the consummation of the Change of Control Transaction, 

8

 

 provided that the repurchase price for such Shares will be an amount per Share that is equal to the Fair Market Value of the relevant Class of Shares based on the Board's good
faith estimate of the valuation of the Company implied by the estimated fair market value of the total consideration to be paid in connection with the Change of Control Transaction. 

For
purposes of this section 6.9, the term "Change of Control Transaction" means a Business Combination in which less than 50% of the outstanding
voting securities of the Successor Entity immediately following the Closing of the Business Combination transaction are beneficially held by those persons and entities in the same proportion as such
persons and entities beneficially held the voting securities of the Company immediately prior to such transaction; the term "Business Combination" means
a transaction or series of transactions consummated within any period of 90 days resulting in (A) the sale of all or substantially all of the assets of the Company, or (B) a
merger or consolidation or other reorganization of which the Company or a Subsidiary is a merging party. 

        6.10    Additional Restrictions on Transfer; Investment Intent.    By accepting an Option and/or Option Shares under
this Plan, the Optionee will be deemed to represent, warrant and agree that, unless a registration statement is in effect with respect to the offer and sale of Option Shares: (i) neither the
Option nor any such Shares will be freely tradeable and must be held indefinitely unless such Option and such Shares are either registered under the 1933 Act or an exemption from such registration is
available; (ii) the Company is under no obligation to register the Option or any such Shares; (iii) upon exercise of the Option, the Optionee will purchase the Option Shares for his or
her own account and not with a view to distribution within the meaning of the 1933 Act, other than as may be effected in compliance with the 1933 Act and the rules and regulations promulgated
thereunder; (iv) no one else will have any beneficial interest in the Option Shares; (v) the Optionee has no present intention of disposing of the Option Shares at any particular time;
and (vi) neither the Option nor the Shares have been qualified under the securities laws of any state and may only be offered and sold pursuant to an exception from qualification under
applicable state securities laws. 

        6.11    Stock Certificates; Legends.    Certificates representing Option Shares will bear all legends required by law
and necessary or appropriate in the Administrator's discretion to effectuate the provisions of this Plan and of the applicable Option Agreement. The Company may place a "stop transfer" order against
Option Shares until full compliance with all restrictions and conditions set forth in this Plan, in any applicable Option Agreement and in the legends referred to in this section 6.11. 

        6.12    Notices.    Any notice to be given to the Company under the terms of an Option Agreement will be addressed to
the Company at its principal executive office, Attention: President, or at such other address as the Company may designate in writing. Any notice to be given to an Optionee will be addressed to him or
her at the address provided to the Company by the Optionee. Any such notice will be deemed to have been duly given if and when enclosed in a properly sealed envelope, addressed as aforesaid,
deposited, postage prepaid, in a post office or branch post office regularly maintained by the local postal authority. 

        6.13    Other Provisions.    Each Option Agreement may contain such other terms, provisions and conditions, including
restrictions on the Transfer of Option Shares, and rights of the Company to repurchase such Shares, not inconsistent with this Plan and applicable law, as may be determined by the Administrator in its
sole discretion. 

        6.14    Specific Performance.    Under those circumstances in which the Company chooses to timely exercise its rights
to repurchase Option Shares as provided herein or in any Option Agreement, the Company will be entitled to receive such Shares in specie in order to have the same available for future issuance without
dilution of the holdings of other shareholders of the Company. By accepting Option Shares, the Holder thereof therefore acknowledges and agrees that 

9

 

money
damages will be inadequate to compensate the Company and its shareholders if such a repurchase is not completed as contemplated hereunder and that the Company will, in such case, be entitled to
a decree of specific performance of the terms hereof or to an injunction restraining such holder (or such Holder's personal representative) from violating this Plan or Option Agreement, in addition to
any other remedies that may be available to the Company at law or in equity. 

        7.    Term of the Plan.    This Plan will become effective on the date of its adoption by the Board, provided this
Plan is approved by the shareholders of the Company (excluding Option Shares issued by the Company pursuant to the exercise of Options granted under this Plan) within 12 months before or after
that date. If this Plan is not so approved by the shareholders of the Company within that 12-month period of time, any Options granted under this Plan will be rescinded and will be void.
This Plan will expire on the tenth (10th) anniversary of the date of its adoption by the Board or its approval by the shareholders of the Company, whichever is earlier, unless it is terminated earlier
pursuant to section 11 of this Plan, after which no more Options may be granted under this Plan, although all outstanding Options granted prior to such expiration or termination will remain
subject to the provisions of this Plan, and no such expiration or termination of this Plan will result in the expiration or termination of any such Option prior to the expiration or early termination
of the applicable Option Term. 

        8.    Adjustments Upon Changes in Stock; Rights Offering.    In the event of any change in the outstanding Shares of
the Company as a result of a stock split, reverse stock split, stock bonus or distribution, recapitalization, combination or reclassification, appropriate proportionate adjustments will be made in:
(i) the aggregate number of Shares that are reserved for issuance in the Option Pool pursuant to section 4 above, under outstanding Options or future Options granted hereunder;
(ii) the Option Price and the number of Option Shares that may be acquired under each outstanding Option granted hereunder; and (iii) other rights and matters determined on a per share
basis under this Plan or any Option Agreement evidencing an outstanding Option granted hereunder. Any such adjustments will be made only by the Board, and when so made will be effective, conclusive
and binding for all purposes with respect to this Plan and all Options then outstanding. No such adjustments will be required by reason of the issuance or sale by the Company for cash or other
consideration of additional Shares or securities convertible into or exchangeable for Shares. 

        9.    Modification, Extension and Renewal of Options; Governing Law.    Subject to the terms and conditions and within
the limitations of this Plan, the Administrator may modify, extend or renew outstanding Options granted under this Plan, or accept the surrender of outstanding Options (to the extent not theretofore
exercised) and authorize the granting of new Options in substitution therefor (to the extent not theretofore exercised). Notwithstanding the foregoing, however, no modification of any Option will,
without the consent of the Optionee, alter or impair any rights or obligations under any outstanding
Option. This Plan will be governed by, and construed in accordance with, the substantive laws of the State of California as applied to contracts wholly made and performed therein by residents thereof. 

        10.    Amendment and Discontinuance.    The Board may amend, suspend or discontinue this Plan at any time or from time
to time; provided that no action of the Board will cause ISOs granted under this Plan not to comply with Section 422 of the Code unless the Board
specifically declares such action to be made for that purpose and provided further that no such action may, without the approval of the shareholders of
the Company, materially increase (other than by reason of an adjustment pursuant to section 8 hereof) the maximum aggregate number of Option Shares in the Option Pool, materially increase the
benefits accruing to Eligible Participants, or materially modify the category of, or eligibility requirements for persons who are Eligible Participants. However, no such action may alter or impair any
Option previously granted under this Plan without the consent of the Optionee, nor may the number of Option Shares in the Option Pool be reduced to a number that is less than the aggregate 

10

 

number
of Option Shares (i) that may be issued pursuant to the exercise of all outstanding and unexpired Options granted hereunder, and (ii) that have been issued and are outstanding
pursuant to the exercise of Options granted hereunder. 

        11.    Information Provided by Company.    Prior to the date on which the Company is required to file its annual
financial statements with the Securities and Exchange Commission under the Securities Exchange Act of 1934, the Company annually will make available to each Optionee the Company's financial statements
(which statements need not be audited), and each Optionee will, by virtue of entering into an Option Agreement, be deemed to have agreed (and to cause any investment advisers to whom the Optionee
proposes to make such information available to agree) to keep such information confidential and not to use, disclose or copy such information for any purpose whatsoever other than determining whether
to exercise an Option. The Company deems such financial statements to be the valuable trade secrets of the Company, and in the event of any wrongful use, disclosure or other breach of the obligation
to maintain the confidentiality of such financial information, the Company may seek to enforce all of its available legal and equitable rights and remedies, and may notify local law enforcement
officials that a criminal misappropriation of the Company's trade secrets has taken place. 

        12.    No Shareholder Rights.    No rights or privileges of a shareholder in the Company are conferred by reason of
the granting of an Option. No Optionee will become a shareholder in the Company with respect to any Option Shares unless and until the Option has been properly exercised and the Option Price fully
paid as to the portion of the Option exercised. 

        13.    Copies of Plan.    A copy of this Plan will be delivered to each Optionee at or before the time he or she
executes an Option Agreement. 

11

  

 
 

ALIBRIS
  
    1998 STOCK OPTION PLAN    
    

EXHIBIT
A
 DEFINITIONS

        1.    "10% Shareholder" means a person who owns, either directly or indirectly by virtue of the ownership attribution provisions
set forth in Section 424(d) of the Code at the time he or she is granted an Option, stock possessing more than 10% of the total combined voting power or value of all classes of stock of the
Company and/or of its Subsidiaries. 

        2.    "1933 Act" means the Securities Act of 1933, as amended. 

        3.    "Administrator" has the meaning set forth in section 5 of the Plan. 

        4.    "Board" has the meaning set forth in section 1 of the Plan. 

        5.    "Business Combination" has the meaning set forth in section 6.9 of the Plan. 

        6.    "Change of Control Transaction" has the meaning set forth in section 6.9 of the Plan. 

        7.    "Closing" has the meaning set forth in section 6.9 of the Plan. 

        8.    "Code" means the Internal Revenue Code of 1986, as amended (references herein to Sections of the Code are intended to
refer to Sections of the Code as enacted at the time of the Plan's adoption by the Board and as subsequently amended, or to any substantially similar successor provisions of the Code resulting from
recodification, renumbering or otherwise). 

        9.    "Company" has the meaning set forth in section 1 of the Plan. 

        10.    "Completed Transfer Notice" has the meaning set forth in section 6.8(b) of the Plan. 

        11.    "disability" means permanent and total disability within the meaning of Section 22(e)(3) of the Code. 

        12.    "Donative Transfer" with respect to Option Shares means any voluntary Transfer by a transferor other than for value or
the payment of consideration to the transferor. A Donative Transfer will include, without limitation: (i) a Transfer by will or under the laws of descent and distribution; or (ii) a
Transfer by a Holder of Option Shares to his or her ancestors, descendants or spouse (other than pursuant to a decree of divorce, dissolution or separate maintenance, a property settlement, or a
separation agreement or any similar agreement or arrangement with a spouse, except for bona fide estate planning purposes), or to a trust, partnership,
limited liability company, custodianship or other fiduciary account for the benefit of the Holder and/or such ancestors, descendants or spouse, including any Transfer in the form of a distribution
from any such trust, partnership, limited liability company, custodianship or other fiduciary account to any of the foregoing permitted beneficial owners or beneficiaries thereof. 

        13.    "Eligible Participants" has the meaning set forth in section 3 of the Plan. 

        14.    "Fair Market Value" means, with respect to the Shares and as of the date that is relevant to such a determination (e.g.,
on the Grant Date), the market price per share of such Shares determined by the Administrator, consistent with the requirements of Section 422 of the Code and to the extent consistent
therewith, as follows: (a) if the Shares are traded on a stock exchange on the date in question, then the Fair Market Value will be equal to the closing price reported by the applicable
composite-transactions report for such date; (b) if the Shares are traded over-the-counter on the date in question and are classified as a national market issue, then
the Fair Market Value will be equal to the last-transaction price quoted by the NASDAQ system for such date; (c) if the Shares are traded over-the-counter on
the date in question but are not classified as a national market issue, then the Fair 

1

 

Market
Value will be equal to the mean between the last reported representative bid and asked prices quoted by the NASDAQ system for such date; and (d) if none of the foregoing provisions is
applicable, then the Fair Market Value will be determined by the Administrator in good faith on such basis as it deems appropriate, taking into consideration the provisions of
Section 260.140.50 of Title 10 of the California Code of Regulations. 

        15.    "Grace Period" has the meaning set forth in section 5(c)(v) of the Plan. 

        16.    "Grant Date" means, with respect to an Option, the date on which the Option Agreement evidencing that Option is entered
into between the Company and the Optionee, or such other date as may be set forth in that Option Agreement as the "Grant Date" which will be the effective date of that Option Agreement. 

        17.    "Holder" means the holder of any Option Shares. 

        18.    "Initial Public Offering" means the closing of the first sale of securities of the Company, or of any Successor Entity,
to the public, through a firm commitment underwriting, for an aggregate price (exclusive of underwriters' discounts and commissions and expenses of the offering) of at least fifteen million dollars
($15,000,000), pursuant to an effective registration statement filed with the Securities and Exchange Commission under the 1933 Act. 

        19.    "Involuntary Transfer" with respect to Option Shares includes, without limitation, any of the following: (A) an
assignment of the Shares for the benefit of creditors of the transferor; (B) a Transfer by operation of law; (C) an execution of judgment against the Shares or the acquisition of record
or beneficial ownership of Shares by a lender or creditor; (D) a Transfer pursuant to any decree of divorce, dissolution or separate maintenance, any property settlement, any separation
agreement or any other agreement with a spouse (except for bona fide estate planning purposes) under which any Shares are Transferred or awarded to the
spouse of the transferor or are required to be sold; or (E) a Transfer
resulting from the filing by the transferor of a petition for relief, or the filing of an involuntary petition against the transferor, under the bankruptcy laws of the United States or of any other
nation. 

        20.    "ISO" means an "incentive stock option" as defined in Section 422 of the Code. 

        21.    "Just Cause Termination" means a termination by the Company and/or any of its Subsidiaries of the Optionee's employment
or services (or if the Optionee is a director, removal of him or her from the Board by action of the shareholders or, if permitted by applicable law and the Bylaws of the Company, the other
directors), in connection with the good faith determination of the Board (or of the Company's shareholders if the Optionee is a director and the removal of him or her from the Board is by action of
the shareholders, but in either case excluding the vote of the subject individual if he or she is a director or a shareholder) that the Optionee has engaged in any acts involving dishonesty or moral
turpitude or in any acts that materially and adversely affect the business, affairs or reputation of the Company or any of its Subsidiaries. 

        22.    "Loss of Eligibility Status" has the meaning set forth in section 5(a) of the Plan. 

        23.    "Offered Price" has the meaning set forth in section 6.8(a) of the Plan. 

        24.    "Offered Terms" has the meaning set forth in section 6.8(a) of the Plan. 

        25.    "Option Agreement" has the meaning set forth in section 1 of the Plan. 

        26.    "Option Pool" has the meaning set forth in section 4 of the Plan. 

        27.    "Option Price" has the meaning set forth in section 5(c)(iii) of the Plan. 

        28.    "Option Shares" has the meaning set forth in section 1 of the Plan, provided that for purposes of
section 6.7 and section 6.8 of the Plan, the term "Option Shares" includes all Shares issued by the Company to a Holder (or his, her or
its predecessor) by reason of such holdings, including any 

2

 

securities
which may be acquired as a result of a stock split, stock dividend, and other distributions of Shares in the Company made upon, or in exchange for, other securities of the Company. 

        29.    "Option Term" has the meaning set forth in section 5(c)(iv) of the Plan. 

        30.    "Optionee" has the meaning set forth in section 1 of the Plan. 

        31.    "Options" has the meaning set forth in section 1 of the Plan. 

        32.    "Original Holder" means the original Eligible Participant to whom an Option is granted under the Plan, even if such
Option is transferred pursuant to section 6.7(a) of the Plan. 

        33.    "Plan" has the meaning set forth in section 1 of the Plan. 

        34.    "Proposed Transfer Notice" has the meaning set forth in section 6.8(a) of the Plan. 

        35.    "Shares" has the meaning set forth in section 1 of the Plan. 

        36.    "Subsidiary" has the same meaning as "subsidiary corporation" as defined in Section 424(f) of the Code. 

        37.    "Successor Entity" means a corporation or other entity that acquires all or substantially all of the assets of the
Company, or which is the surviving or parent entity resulting from a Business Combination, as that term is defined in section 6.9(b) of the Plan. 

        38.    "Tax Withholding Liability" in connection with the exercise of any Option means all federal and state income taxes,
social security tax, and any other taxes applicable to the compensation income arising from the transaction required by applicable law to be withheld by the Company. 

        39.    "Transfer" with respect to Option Shares, includes, without limitation, a voluntary or involuntary sale, assignment,
transfer, conveyance, pledge, hypothecation, encumbrance, disposal, loan, gift, attachment or levy of those Shares, including, without limitation, any Involuntary Transfer or any Donative Transfer. 

        40.    "Transferee" has the meaning set forth in section 6.8(b) of the Plan. 

        41.    "Transferred Shares" has the meaning set forth in section 6.8(b) of the Plan. 

        42.    "Unvested Option" has the meaning set forth in section 5(c)(vii) of the Plan. 

        43.    "Unvested Shares" has the meaning set forth in section 5(c)(viii) of the Plan. 

        44.    "Vested Option" has the meaning set forth in section 5(c)(vii) of the Plan. 

        45.    "Vested Shares" has the meaning set forth in section 5(c)(viii) of the Plan. 

3

 
 
 

OPTION AGREEMENT
  
    UNDER THE ALIBRIS 1998 OPTION PLAN    
    

        THIS AGREEMENT is made effective as of                        ,
199    (the "Grant Date"), between ALIBRIS, a
California corporation (the "Company"), and the undersigned Optionee. 

        THE
PARTIES AGREE AS FOLLOWS: 

        1.    Option Grant.    Subject to all of the terms and conditions of this Agreement and of the Company's 1998 OPTION
PLAN (the "Option Plan"), a copy of which is attached hereto and incorporated by reference, the Company hereby grants to Optionee an option (the
"Option") to purchase the number of shares of Common Stock of (the "Shares"), for an exercise price per
Share (the "Option Price"), and based upon a Grant Date set forth above and an Expiration Date (subject to earlier termination as provided in the Option
Plan), all as set forth below: 

	Number of Shares subject to the Option:	 	 
	 	 	

	

Option Price per Share: $	
 	

$
	 	 	

	

Vesting Start Date:	
 	

 
	 	 	

	

Expiration Date:	
 	

 
	 	 	

        2.    Vesting.    The Shares purchasable upon exercise of the Option will become Vested Shares on the schedule set
forth in Section 6.4 of the Option Plan; provided that in each case the Original Holder of the Option does not suffer a Loss of Eligibility
Status prior to each such vesting date. 

        3.    Representations and Warranties of Optionee.    Optionee represents and warrants that he or she is acquiring the
Option, and will acquire any Shares obtained upon exercise of the Option, for investment purposes only, for Optionee's own account, and with no view to the distribution thereof. 

        4.    No Employment Rights.    This Agreement gives Optionee no right to be retained as an employee of the Company
and/or its Subsidiaries. 

        5.    Terms of the Option Plan.    Optionee understands that the Option Plan includes important terms and conditions
that apply to the Option. Those terms include: important conditions to the right of Optionee to exercise the Option; important restrictions on the ability of Optionee to transfer the Option or to
Transfer any of the Shares received upon exercise of the Option; Company rights of repurchase related to Option Shares; and early termination of the Option following the occurrence of certain events.  OPTIONEE HAS READ THE
OPTION PLAN, AGREES TO BE BOUND BY ITS TERMS, AND MAKES EACH OF THE REPRESENTATIONS REQUIRED TO BE MADE BY OPTIONEE UNDER IT. OPTIONEE FURTHER
ACKNOWLEDGES THAT THE COMPANY HAS GIVEN NO TAX ADVICE CONCERNING THE OPTION AND HAS ADVISED OPTIONEE TO CONSULT WITH HIS OR HER OWN TAX OR FINANCIAL ADVISOR ABOUT THE TAX TREATMENT OF THE OPTION AND
ITS EXERCISE.

        6.    Miscellaneous.    Capitalized terms not otherwise defined herein will have the meaning set forth in the Option
Plan. Neither this Agreement nor the Option is assignable by either party, except as expressly provided herein. All of the covenants and provisions of this Agreement by or for the benefit of the
Company or Optionee shall bind and inure to the benefit of their respective successors. This Agreement (including the Option Plan) constitutes the final and complete expression of all of the terms of
the understanding and agreement between the parties hereto concerning the subject matter hereof. This Agreement may not be modified, amended, altered or, supplemented except by means of the execution
and delivery of a written instrument mutually executed by the Company and Optionee. This Agreement shall be construed and governed by the substantive laws of the State of California. 

1

 

        The
parties hereby have entered into this Agreement as of the Grant Date. 

	 	 	ALIBRIS
	

 	
 	
By:	

 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	

 	
 	

"OPTIONEE"
	

 	
 	

	

 	
 	

Address:
	

 	
 	

	

 	
 	

	 	 	Social Security No.                        

	Attachments:	 	(1)	 	Spousal Consent
	 	 	(2)	 	1998 Option Plan

2

 
 
 

CONSENT OF SPOUSE    
    

        I am the spouse of                        , who together with
Alibris, a California corporation (the "Company"), has
entered into the Option Agreement, to which this Consent is attached. Capitalized terms not defined herein will have the meaning set forth in such agreement. 

        I
have read and understand the Option Agreement, and the Company's 1998 Option Plan (the "Option Plan"). I acknowledge that, by execution
hereof, I am bound by the Option Agreement, and the Option
Plan, as to any and all interests I may have in the Option and Option Shares. In particular, I understand and agree that the Option Shares (including any interest that I may have therein) are subject
to certain repurchase rights in the Company and certain restrictions on transfer. 

        I
also agree with my spouse and the Company that if my spouse and I ever get divorced or enter into any marital property settlement agreement, or if my spouse or I ever seek a decree of
separate maintenance, to the extent my spouse has or can obtain assets other than the Option Shares in amounts and of value sufficient to settle or satisfy any marital property claims I may have in
the value of the Option Shares, I will accept such other assets in settlement of those claims. 

        I
agree that I will not do anything to try to prevent the operation of any part of the Option Agreement or the Option Plan. I acknowledge that I have had an opportunity to obtain
independent counsel to advise me concerning the matters contained herein. 

	 	 	 	 	Signature
	

 	

 	

 	
 	

	

Dated:	

 	

 	
 	

Name:	

 
	 	
	 	 	 	

1

 
 

ALIBRIS, INC. 1998 STOCK PLAN    
    
    NOTICE OF STOCK OPTION EXERCISE    
    

OPTIONEE INFORMATION  

	Name:	
	 	Social Security Number:	            —            —            

	

Address:	

	
 	

Employee Number:	

	 	
	 	 	 

OPTION INFORMATION:  

	Date of Grant:	 	
	 	, 19	
	 	Type of Option:	 	o Nonstatutory (NSO) or
	 	 	 	 	 	 	 	 	 	o Incentive (ISO)

	Exercise Price per Share:	 	$	
	 

	

Total number of shares of Common Stock of Alibris, Inc. (the "Company") covered by option:	

	
 	

shares

EXERCISE INFORMATION:  

Number
of shares of Common Stock of the Company for which option is being exercised now:                         . (These shares
are referred to below as the "Purchased Shares.") 

Total
Exercise Price for the Purchased Shares: $                    

Form
of payment, enclosed [check all that apply]: 

	

o	
 	

Check for $          , made payable to "Alibris, Inc."	
 	

o	
 	

Certificate(s) for          shares of the Common Stock of the Company that I have owned for at least six months. (These shares will be valued as of the date when this notice is received by the
Company.)
	

 	
 	

 	
 	

o	
 	

Attestation Form covering          shares of the Common Stock of the Company. (These shares will be valued as of the date when this notice is received by the Company.)

Names
in which the Purchased Shares should be registered [you must check one]: 

	o	 	In my name only	 	 
	

o	
 	

In the names of my spouse and myself as community property	
 	

My spouse's name (if applicable):
	 	 	 	 	

	o	 	In the names of my spouse and myself as joint tenants with right of survivorship	 	 

	The certificate for the Purchased	 	

	Shares should be sent to the	 	

	following address:	 	

You must sign this Notice on the second page before submitting it to the Company. 

 
 

REPRESENTATIONS AND ACKNOWLEDGMENTS OF THE OPTIONEE:    
    

	1.
	I
represent and warrant to the Company that I am acquiring and will hold the Purchased Shares for investment for my account only, and not with a view to, or for resale in
connection with, any "distribution" of the Purchased Shares within the meaning of the Securities Act of 1933, as amended (the "Securities Act").

	2.
	I
understand that the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption therefrom and that the Purchased Shares must be
held indefinitely, unless they are subsequently registered under the Securities Act or I obtain an opinion of counsel (in form and substance satisfactory to the Company and its counsel) that
registration is not required.

	3.
	I
acknowledge that the Company is under no obligation to register the Purchased Shares.

	4.
	I
am aware of the adoption of Rule 144 by the Securities and Exchange Commission under the Securities Act, which permits limited public resales of securities
acquired in a non-public offering, subject to the satisfaction of certain conditions. These conditions include (without limitation) that certain current public information about the issuer
is available, that the resale occurs only after the holding period required by Rule 144 has been satisfied, that the sale occurs through an unsolicited "broker's transaction" and that the
amount of securities being sold during any three-month period does not exceed specified limitations. I understand that the conditions for resale set forth in Rule 144 have not been satisfied
and that the Company has no plans to satisfy these conditions in the foreseeable future.

	5.
	I
will not sell, transfer or otherwise dispose of the Purchased Shares in violation of the Securities Act, the Securities Exchange Act of 1934, or the rules promulgated
thereunder, including Rule 144 under the Securities Act.

	6.
	I
acknowledge that I have received and had access to such information as I consider necessary or appropriate for deciding whether to invest in the Purchased Shares and
that I had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the issuance of the Purchased Shares.

	7.
	I
am aware that my investment in the Company is a speculative investment which has limited liquidity and is subject to the risk of complete loss. I am able, without
impairing my financial condition, to hold the Purchased Shares for an indefinite period and to suffer a complete loss of my investment in the Purchased Shares.

	8.
	I
acknowledge that the Purchased Shares remain subject to the Company's right of first refusal and may remain subject to the Company's right of repurchase at the exercise
price, all in accordance with the applicable Notice of Stock Option Grant and Stock Option Agreement.

	9.
	I
acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice of Stock Option Grant and Stock Option Agreement.

	10.
	I
acknowledge that I have received a copy of the Company's memorandum regarding the federal income tax consequences of an option exercise and the tax election under
section 83(b) of the Internal Revenue Code. In the event that I choose to make a section 83(b) election, I acknowledge that it is my responsibility—and not the Company's
responsibility—to file the election in a timely manner, even if I ask the Company or its agents to make the filing on my behalf. I acknowledge that the Company has encouraged me to consult
my own adviser to determine the tax consequences of acquiring the Purchased Shares at this time.

	11.
	I
agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing. 

SIGNATURE:

	 	 	 	 	, 19	 
	
	 	
	 	 	

 
 

SECTION 83(b) ELECTION    
    

        This statement is made under Section 83(b) of the Internal Revenue Code of 1986, as amended, pursuant to Treasury Regulations
Section 1.83-2. 

	(1)
	The
taxpayer who performed the services is:  

	 	 	Name:	

	 	 	Address:	

	 	 	 	

	 	 	Social Security No.:	

	(2)
	The
property with respect to which the election is made is            shares of the common stock of Alibris, Inc.

	(3)
	The
property was transferred on                         ,     .

	(4)
	The
taxable year for which the election is made is the calendar year             .

	(5)
	The
property is subject to a repurchase right pursuant to which the issuer has the right to acquire the property at the original purchase price if for any reason taxpayer's employment
with the issuer is terminated. The issuer's repurchase right lapses in a series of installments over a            -year period ending on
                        
    ,     .

	(6)
	The
fair market value of such property at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is
$    per share.

	(7)
	The
amount paid for such property is $            per share.

	(8)
	A
copy of this statement was furnished to Alibris, Inc., for whom taxpayer rendered the services underlying the transfer of such property.

	(9)
	This
statement is executed on                                     ,
            . 

	

	
 	

	Spouse (if any)	 	Taxpayer

This election must be filed with the Internal Revenue Service Center with which the Optionee files his or her Federal income tax returns and must be filed within 30 days
after the date of purchase. This filing should be made by registered or certified mail, return receipt requested. The Optionee must retain two copies of the completed form for filing with his or her
Federal and state tax returns for the current tax year and an additional copy for his or her records. 

QuickLinks

Exhibit 10.04

ALIBRIS 1998 STOCK OPTION PLAN

ALIBRIS 1998 STOCK OPTION PLAN

OPTION AGREEMENT UNDER THE ALIBRIS 1998 OPTION PLAN

CONSENT OF SPOUSE

ALIBRIS, INC. 1998 STOCK PLAN NOTICE OF STOCK OPTION EXERCISE

REPRESENTATIONS AND ACKNOWLEDGMENTS OF THE OPTIONEE

SECTION 83(b) ELECTIONQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.05    
    

 
 

ALIBRIS
  
    2000 EQUITY INCENTIVE PLAN
  
    Adopted on January 19, 2000
  As Amended on March 9, 2000
  As Amended on June 25, 2001
  As Amended on April 11, 2002    

        1.    PURPOSE.    The purpose of this Plan is to provide incentives to
attract, retain and motivate eligible persons whose present and potential contributions are important to the success of the Company and its Subsidiaries, by offering them an opportunity to participate
in the Company's future performance through awards of Options and Restricted Stock. Capitalized terms not defined in the text are defined in Section 22 hereof. This Plan is intended to be a
written compensatory benefit plan within the meaning of Rule 701 promulgated under the Securities Act. 

        2.    SHARES SUBJECT TO THE PLAN.    

        2.1    Number of Shares Available.    Subject to Sections 2.2 and 17 hereof, the total number of Shares
reserved and available for grant and issuance pursuant to this Plan will be 4,000,0001 Shares, or such lesser number of Shares as permitted under Section 260.140.45 of Title 10 of
the California Code of Regulations. Subject to Sections 2.2, 5.10 and 17 hereof, Shares subject to Awards previously granted will again be available for grant and issuance in connection with future
Awards under this Plan to the extent such Shares: (i) cease to be subject to issuance upon exercise of an Option, other than due to exercise of such Option; (ii) are subject to an Award
granted hereunder but the Shares subject to such Award are forfeited or repurchased by the Company at the original issue price; or (iii) are subject to an Award that otherwise terminates
without Shares being issued. In addition, any authorized shares not issued or subject to outstanding grants under the Company's 1998 Stock Option Plan (the "Prior
Plan") on the Effective Date (as defined in Section 18 hereof) and any shares issued under the Prior Plan that are forfeited or repurchased by the Company or that are
issuable upon exercise of options granted pursuant to the Prior Plan that expire or become unexercisable for any reason without having been
exercised in full, will no longer be available for grant and issuance under the Prior Plan, but will be available for grant and issuance under this Plan. At all times the Company will reserve and keep
available a sufficient number of Shares as will be required to satisfy the requirements of all Awards granted and outstanding under this Plan. 

	1
	On
January 19, 2000, 1,000,000 shares of Common Stock were reserved upon adoption of the Plan for issuance thereunder. 

On
March 9, 2000, the Plan was amended reserve an additional 500,000 shares for a total reserve of 1,500,000 shares of Common Stock for issuance thereunder. 

On
June 25, 2001, the Plan was amended to reserve an additional 1,000,000 shares for a total reserve of 2,500,000 shares of Common Stock for issuance thereunder, plus an additional number of shares of
Common Stock (1) authorized and available under the Prior Plan and (2) options previously granted under the Prior Plan that become available pursuant to repurchase, cancellation or
expiration pursuant to the Plan terms. 

On
April 11, 2002, the Plan was amended to reserve an additional 1,500,000 shares for a total reserve of 4,000,000 shares of Common Stock for issuance thereunder, plus an additional number of shares
of Common Stock (1) authorized and available under the Prior Plan and (2) options previously granted under the Prior Plan that become available pursuant to repurchase, cancellation or
expiration pursuant to the Plan terms. 

 

        2.2    Adjustment of Shares.    In the event that the number of outstanding shares of the Company's Common Stock is
changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without
consideration, then (i) the number of Shares reserved for issuance under this Plan, (ii) the Exercise Prices of and number of Shares subject to outstanding Options and (iii) the
Purchase Prices of and number of Shares subject to other outstanding Awards will be proportionately adjusted, subject to any required action by the Board or the shareholders of the Company and
compliance with applicable securities laws; provided, however, that fractions of a Share will not be issued but will either be paid in cash at the Fair Market Value of such fraction of a Share or will
be rounded down to the nearest whole Share, as determined by the Committee. 

        3.    ELIGIBILITY.    ISOs (as defined in Section 5 hereof) may
be granted only to employees (including officers and directors who are also employees) of the Company or of a Subsidiary of the Company. NQSOs (as defined in Section 5 hereof) and Restricted
Stock Awards may be granted to employees, officers, directors and consultants of the Company or any Subsidiary of the Company; provided such consultants render bona fide services not in connection
with the offer and sale of securities in a capital-raising transaction. A person may be granted more than one Award under this Plan. 

        4.    ADMINISTRATION.    

        4.1    Committee Authority.    This Plan will be administered by the Committee or the Board if no Committee is created
by the Board. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan. Without
limitation, the Committee will have the authority to: 

	(a)
	construe
and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

	(b)
	prescribe,
amend and rescind rules and regulations relating to this Plan;

	(c)
	approve
persons to receive Awards;

	(d)
	determine
the form and terms of Awards;

	(e)
	determine
the number of Shares or other consideration subject to Awards;

	(f)
	determine
whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives to, other Awards under this Plan or awards under any other
incentive or compensation plan of the Company or any Subsidiary of the Company;

	(g)
	grant
waivers of any conditions of this Plan or any Award;

	(h)
	determine
the terms of vesting, exercisability and payment of Awards;

	(i)
	correct
any defect, supply any omission, or reconcile any inconsistency in this Plan, any Award, any Award Agreement, any Exercise Agreement or any Restricted Stock Purchase
Agreement;

	(j)
	determine
whether an Award has been earned;

	(k)
	make
all other determinations necessary or advisable for the administration of this Plan; and

	(l)
	extend
the vesting period beyond a Participant's Termination Date. 

        4.2    Committee Discretion.    Unless in contravention of any express terms of this Plan or Award, any determination
made by the Committee with respect to any Award will be made in its sole discretion either (i) at the time of grant of the Award, or (ii) subject to Section 5.9 hereof, at any
later time. Any such determination will be final and binding on the Company and on all persons having an interest in any Award under this Plan. The Committee may delegate to one or 

2

 

more
officers of the Company the authority to grant an Award under this Plan, provided such officer or officers are members of the Board. 

        5.    OPTIONS.    The Committee may grant Options to eligible persons
described in Section 3 hereof and will determine whether such Options will be Incentive Stock Options within the meaning of the Code ("ISOs") or
Nonqualified Stock Options ("NQSOs"), the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option
may be exercised, and all other terms and conditions of the Option, subject to the following: 

        5.1    Form of Option Grant.    Each Option granted under this Plan will be evidenced by an Award Agreement which will
expressly identify the Option as an ISO or an NQSO ("Stock Option Agreement"), and will be in such form and contain such provisions (which need not be
the same for each Participant) as the Committee may from time to time approve, and which will comply with and be subject to the terms and conditions of this Plan. 

        5.2    Date of Grant.    The date of grant of an Option will be the date on which the Committee makes the
determination to grant such Option, unless a later date is otherwise specified by the Committee. The Stock Option Agreement and a copy of this Plan will be delivered to the Participant within a
reasonable time after the granting of the Option. 

        5.3    Exercise Period.    Options may be exercisable immediately but subject to repurchase pursuant to
Section 11 hereof or may be exercisable within the times or upon the events determined by the Committee as set forth in the Stock Option Agreement governing such Option; provided, however, that
no Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and provided further that no ISO granted to a person who directly or by attribution
owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Subsidiary of the Company ("Ten Percent
Shareholder") will be exercisable after the expiration of five (5) years from the date the ISO is granted. The Committee also may provide for Options to become
exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee determines. Subject to earlier termination of the Option as
provided herein, each Participant who is not an officer, director or consultant of the Company or of a Subsidiary of the Company shall have the right to exercise an Option granted hereunder at the
rate of no less than twenty percent (20%) per year over five (5) years from the date such Option is granted. 

        5.4    Exercise Price.    The Exercise Price of an Option will be determined by the Committee when the Option is
granted and may not be less than eighty-five percent (85%) of the Fair Market Value of the Shares on the date of grant; provided that (i) the Exercise Price of an ISO will not be
less than one hundred percent (100%) of the Fair Market Value of the Shares on the date of grant and (ii) the Exercise Price of any Option granted to a Ten Percent Shareholder will not be less
than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased must be made in accordance with Section 7 hereof. 

        5.5    Method of Exercise.    Options may be exercised only by delivery to the Company of a written stock option
exercise agreement (the "Exercise Agreement") in a form approved by the Committee (which need not be the same for each Participant). The Exercise
Agreement will state (i) the number of Shares being purchased, (ii) the restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and (iii) such
representations and agreements regarding Participant's investment intent and access to information and other matters, if any, as may be required or desirable by the Company to comply with applicable
securities laws. Participant shall execute and deliver to the Company the Exercise Agreement together with payment in full of the Exercise Price, and any applicable taxes, for the number of Shares
being purchased. 

3

 

        5.6    Termination.    Subject to earlier termination pursuant to Sections 17 and 18 hereof and notwithstanding the
exercise periods set forth in the Stock Option Agreement, exercise of an Option will always be subject to the following: 

	(a)
	If
the Participant is Terminated for any reason other than death, Disability or for Cause, then the Participant may exercise such Participant's Options only to the extent that such
Options are exercisable upon the Termination Date or as otherwise determined by the Committee. Such Options must be exercised by the Participant, if at all, as to all or some of the Vested Shares
calculated as of the Termination Date or such other date determined by the Committee, within ninety (90) days after the Termination Date (or within such shorter time period, not less than
thirty (30) days, or within such longer time period, not exceeding five (5) years, after the Termination Date as may be determined by the Committee, with any exercise beyond ninety
(90) days after the Termination Date deemed to be an NQSO) but in any event, no later than the expiration date of the Options.

	(b)
	If
the Participant is Terminated because of Participant's death or Disability (or the Participant dies within ninety (90) days after a Termination other than for Cause), then
Participant's Options may be exercised only to the extent that such Options are exercisable by Participant on the Termination Date or as otherwise determined by the Committee. Such options must be
exercised by Participant (or Participant's legal representative or authorized assignee), if at all, as to all or some of the Vested Shares calculated as of the Termination Date or such other date
determined by the Committee, within six (6) months after the Termination Date or within such longer time period, not exceeding five (5) years, after the Termination Date as may be
determined by the Committee, with any exercise beyond ninety (90) days after the Termination Date when the Termination is for any reason other than the Participant's death or disability, within
the meaning of Section 22(e)(3) of the Code, or (ii) six (6) months after the Termination Date when the Termination is for Participant's disability, within the meaning of
Section 22(e)(3) of the Code, deemed to be an NQSO) but in any event no later than the expiration date of the Options.

	(c)
	If
the Participant is terminated for Cause, then Participant's Options shall expire on such Participant's Termination Date, or at such later time and on such conditions as are
determined by the Committee. 

        5.7    Limitations on Exercise.    The Committee may specify a reasonable minimum number of Shares that may be
purchased on any exercise of an Option, provided that such minimum number will not prevent Participant from exercising the Option for the full number of Shares for which it is then exercisable. 

        5.8    Limitations on ISOs.    The aggregate Fair Market Value (determined as of the date of grant) of Shares with
respect to which ISOs are exercisable for the first time by a Participant during any calendar year (under this Plan or under any other incentive stock option plan of the Company or any Subsidiary of
the Company) will not exceed One Hundred Thousand Dollars ($100,000). If the Fair Market Value of Shares on the date of grant with respect to which ISOs are exercisable for the first time by a
Participant during any calendar year exceeds One Hundred Thousand Dollars ($100,000), then the Options for the first One Hundred Thousand Dollars ($100,000) worth of Shares to become exercisable in
such calendar year will be ISOs and the Options for the amount in excess of One Hundred Thousand Dollars ($100,000) that become exercisable in that calendar year will be NQSOs. In the event that the
Code or the regulations promulgated thereunder are amended after the Effective Date (as defined in Section 18 hereof) to provide for a different limit on the Fair Market Value of Shares
permitted to be subject to ISOs, then such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment. 

4

 

        5.9    Modification, Extension or Renewal.    The Committee may modify, extend or renew outstanding Options and
authorize the grant of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such Participant's rights under any
Option previously granted. Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to
Section 5.10 hereof, the Committee may reduce the Exercise Price of outstanding Options without the consent of Participants by a written notice to them; provided, however, that the Exercise
Price may not be reduced below the minimum Exercise Price that would be permitted under Section 5.4 hereof for Options granted on the date the action is taken to reduce the Exercise Price. 

        5.10    No Disqualification.    Notwithstanding any other provision in this Plan, no term of this Plan relating to
ISOs will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without
the consent of the Participant, to disqualify any Participant's ISO under Section 422 of the Code. In no event shall the total number of Shares issued (counting each reissuance of a Share that
was previously issued and then forfeited or repurchased by the Company as a separate issuance) under the Plan upon exercise of ISOs exceed 40,000,000 Shares (adjusted in proportion to any adjustments
under Section 2.2. hereof) over the term of the Plan. 

        6.    RESTRICTED STOCK.    A Restricted Stock Award is an offer by the
Company to sell to an eligible person Shares that are subject to certain specified restrictions. The Committee will determine to whom an offer will be made, the number of Shares the person may
purchase, the Purchase Price, the restrictions to which the Shares will be subject, and all other terms and conditions of the Restricted Stock Award, subject to the following: 

        6.1    Form of Restricted Stock Award.    All purchases under a Restricted Stock Award made pursuant to this Plan will
be evidenced by an Award Agreement ("Restricted Stock Purchase Agreement") that will be in such form (which need not be the same for each Participant)
as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. The Restricted Stock Award will be accepted by the Participant's
execution and delivery of the Restricted Stock Purchase Agreement and full payment for the Shares to the Company within thirty (30) days from the date the Restricted Stock Purchase Agreement is
delivered to the person. If such person does not execute and deliver the Restricted Stock Purchase Agreement along with full payment for the Shares to the Company within such thirty (30) days,
then the offer will terminate, unless otherwise determined by the Committee. 

        6.2    Purchase Price.    The Purchase Price of Shares sold pursuant to a Restricted Stock Award will be determined by
the Committee and will be at least eighty-five percent (85%) of the Fair Market Value of the Shares on the date the Restricted Stock Award is granted or at the time the purchase is
consummated, except in the case of a sale to a Ten Percent Shareholder, in which case the Purchase Price will be one hundred percent (100%) of the Fair Market Value on the date the Restricted Stock
Award is granted or at the time the purchase is consummated. Payment of the Purchase Price must be made in accordance with Section 7 hereof. 

        6.3    Restrictions.    Restricted Stock Awards may be subject to the restrictions set forth in Section 11
hereof or such other restrictions not inconsistent with Section 25102(o) of the California Corporations Code. 

5

 

        7.    PAYMENT FOR SHARE PURCHASES.    

        7.1    Payment.    Payment for Shares purchased pursuant to this Plan may be made in cash (by check) or, where
expressly approved for the Participant by the Committee and where permitted by law: 

	(a)
	by
cancellation of indebtedness of the Company owed to the Participant;

	(b)
	by
surrender of shares that: (i) either (A) have been owned by Participant for more than six (6) months and have been paid for within the meaning of SEC
Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares) or (B) were obtained by Participant
in the public market and (ii) are clear of all liens, claims, encumbrances or security interests;

	(c)
	by
tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate sufficient to avoid imputation of income under
Sections 483 and 1274 of the Code; provided, however, that Participants who are not employees or directors of the Company will not be entitled to purchase Shares with a promissory note unless the note
is adequately secured by collateral other than the Shares;

	(d)
	by
waiver of compensation due or accrued to the Participant from the Company for services rendered;

	(e)
	with
respect only to purchases upon exercise of an Option, and provided that a public market for the Company's stock exists:

	(i)
	through
a "same day sale" commitment from the Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an
"NASD Dealer") whereby the Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased sufficient to pay the
total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company; or

	(ii)
	through
a "margin" commitment from the Participant and an NASD Dealer whereby the Participant irrevocably elects to exercise the Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of
such Shares to forward the total Exercise Price directly to the Company; or

	(f)
	by
any combination of the foregoing. 

        7.2    Loan Guarantees.    The Committee may, in its sole discretion, elect to assist the Participant in paying for
Shares purchased under this Plan by authorizing a guarantee by the Company of a third-party loan to the Participant. 

        8.    WITHHOLDING TAXES.    

        8.1    Withholding Generally.    Whenever Shares are to be issued in satisfaction of Awards granted under this Plan,
the Company may require the Participant to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate or
certificates for such Shares. Whenever, under this Plan, payments in satisfaction of Awards are to be made in cash by the Company, such payment will be net of an amount sufficient to satisfy federal,
state, and local withholding tax requirements. 

        8.2    Stock Withholding.    When, under applicable tax laws, a Participant incurs tax liability in connection with
the exercise or vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required to be withheld, the Committee 

6

 

may
in its sole discretion allow the Participant to satisfy the minimum withholding tax obligation by electing to have the Company withhold from the Shares to be issued that minimum number of Shares
having a Fair Market Value equal to the minimum amount required to be withheld, determined on the date that the amount of tax to be withheld is to be determined; but in no event will the Company
withhold Shares if such withholding would result in adverse accounting consequences to the Company. All elections by a Participant to have Shares withheld for this purpose will be made in accordance
with the requirements established by the Committee for such elections and be in writing in a form acceptable to the Committee. 

        9.    PRIVILEGES OF STOCK OWNERSHIP.    

        9.1    Voting and Dividends.    No Participant will have any of the rights of a shareholder with respect to any Shares
until the Shares are issued to the Participant. After Shares are issued to the Participant, the Participant will be a shareholder and have all the rights of a shareholder with respect to such Shares,
including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or
different securities the Participant may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of
the Company will be subject to the same restrictions as the Restricted Stock. The Participant will have no right to retain such stock dividends or stock distributions with respect to Unvested Shares
that are repurchased pursuant to Section 11 hereof. The Company will comply with Section 260.140.1 of Title 10 of the California Code of Regulations with respect to the voting rights of
Common Stock. 

        9.2    Financial Statements.    The Company will provide financial statements to each Participant annually during the
period such Participant has Awards outstanding, or as otherwise required under Section 260.140.46 of Title 10 of the California Code of Regulations. Notwithstanding the foregoing, the Company
will not be required to provide such financial statements to Participants when issuance is limited to key employees whose services in connection with the Company assure them access to equivalent
information. 

        10.    TRANSFERABILITY.    Awards granted under this Plan, and any
interest therein, will not be transferable or assignable by Participant, other than by will or by the laws of descent and distribution, and may not be made subject to execution, attachment or similar
process. During the lifetime of the Participant an Award will be exercisable only by the Participant or Participant's legal representative and any elections with respect to an Award may be made only
by the Participant or Participant's legal representative. 

        11.    RESTRICTIONS ON SHARES.    

        11.1    Right of First Refusal.    At the discretion of the Committee, the Company may reserve to itself and/or its
assignee(s) in the Award Agreement a right of first refusal to purchase all Shares that a Participant (or a subsequent transferee) may propose to transfer to a third party, unless otherwise not
permitted by Section 25102(o) of the California Corporations Code, provided that such right of first refusal terminates upon the Company's Initial Public Offering. 

        11.2    Right of Repurchase.    At the discretion of the Committee, the Company may reserve to itself and/or its
assignee(s) in the Award Agreement a right to repurchase Unvested Shares held by a Participant for cash and/or cancellation of purchase money indebtedness owed to the Company by the Participant
following such Participant's Termination at any time within the later of ninety (90) days after the Participant's Termination Date and the date the Participant purchases Shares under the Plan
at the Participant's Exercise Price or Purchase Price, as the case may be, provided that, unless the Participant is an officer, director or consultant of the Company or of a Subsidiary of the Company,
such right of repurchase lapses at the rate of no less than twenty percent (20%) 

7

 

per
year over five (5) years from: (a) the date of grant of the Option or (b) in the case of Restricted Stock, the date the Participant purchases the Shares. 

        12.    CERTIFICATES.    All certificates for Shares or other
securities delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any
applicable federal, state or foreign securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed
or quoted. 

        13.    ESCROW; PLEDGE OF SHARES.    To enforce any restrictions on a
Participant's Shares set forth in Section 11 hereof, the Committee may require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments
of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such restrictions have lapsed or terminated. The
Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. Any Participant who is permitted to execute a promissory note as partial or full consideration
for the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of Participant's
obligation to the Company under the promissory note; provided, however, that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and,
in any event, the Company will have full recourse against the Participant under the promissory note notwithstanding any pledge of the Participant's Shares or other collateral. In connection with any
pledge of the Shares, Participant will be required to execute and deliver a written pledge agreement in such form as the Committee will from time to time approve. 

        14.    EXCHANGE AND BUYOUT OF AWARDS.    The Committee may, at any
time or from time to time, authorize the Company, with the consent of the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards.
The Committee may at any time buy from a Participant an Award previously granted with payment in cash, shares of Common Stock of the Company (including Restricted Stock) or other consideration, based
on such terms and conditions as the Committee and the Participant may agree. 

        15.    SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.    This Plan is
intended to comply with Section 25102(o) of the California Corporations Code. Any provision of this Plan which is inconsistent with Section 25102(o) shall, without further act or
amendment by the Company or the Board, be reformed to comply with the requirements of Section 25102(o). An Award will not be effective unless such Award is in compliance with all applicable
federal and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or
quoted, as they are in effect on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no
obligation to issue or deliver certificates for Shares under this Plan prior to (i) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable,
and/or (ii) compliance with any exemption, completion of any registration or other qualification of such Shares under any state or federal law or ruling of any governmental body that the
Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the exemption, registration, qualification or
listing requirements of any state securities laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so. 

        16.    NO OBLIGATION TO EMPLOY.    Nothing in this Plan or any Award
granted under this Plan will confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Subsidiary of the
Company or limit in any 

8

 

way
the right of the Company or any Subsidiary of the Company to terminate Participant's employment or other relationship at any time, with or without Cause. 

        17.    CORPORATE TRANSACTIONS.    

        17.1    Assumption or Replacement of Awards by Successor or Acquiring Company.    In the event of (i) a
dissolution or liquidation of the Company, (ii) a merger or consolidation in which the Company is not the surviving corporation, (iii) a merger in which the Company is the surviving
corporation but after which the shareholders of the Company immediately prior to such merger (other than any shareholder which merges with the Company in such merger, or which owns or controls another
corporation which merges with the Company in such merger) cease to own their shares or other equity interests in the Company, or (iv) the sale of all or substantially all of the assets of the
Company (each a "Change of Control"), the Board, in its sole discretion, may determine that it is in the best interests of the Company, and if so may
take appropriate action either to: (1) cancel all Awards effective as of the consummation of the Change of Control and, in connection with each such Award any portion of which is vested, notify
such Participant of the proposed Change of Control reasonably prior to its consummation so that the Participant will have the opportunity to exercise the vested portion of such Award immediately prior
to such consummation; or (2) cause the Company to enter into an agreement with the successor entity in such Change of Control requiring the successor entity to assume, convert, replace or
provide comparable substitute awards for all outstanding Awards, which assumption, conversion, replacement or provision of a substitute will be binding on all Participants. Upon the consummation of a
Change of Control and contemporaneously thereto, an additional twelve and one-half percent (12.5%) of all of the then Unvested Shares outstanding of any Participant shall become Vested
Shares, provided, however, that (i) the Participant has not been Terminated by the Company prior to the consummation of the Change of Control,
and (ii) the Participant is Terminated without Cause by the Company, or by the successor entity, within six (6) months after the consummation of the Change of Control. 

        17.2    Other Treatment of Awards.    Subject to any greater rights granted to Participants under the foregoing
provisions of this Section 17, in the event of the occurrence of any transaction described in Section 17.1 hereof, any outstanding Awards will be treated as provided in the applicable
agreement or plan of merger, consolidation, dissolution, liquidation or sale of assets. 

        17.3    Assumption of Awards by the Company.    The Company, from time to time, also may substitute or assume
outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either (i) granting an Award under this Plan in substitution of
such other company's award or (ii) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such
substitution or assumption will be permissible if the holder of the substituted or assumed award would have been
eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by another company, the terms
and conditions of such award will remain unchanged (except that the exercise price and the number and nature of shares issuable upon exercise of any such option will be adjusted appropriately pursuant
to Section 424(a) of the Code). In the event the Company elects to grant a new Option rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise
Price. 

        18.    ADOPTION AND SHAREHOLDER APPROVAL.    This Plan will become
effective on the date that it is adopted by the Board (the "Effective Date"). This Plan will be approved by the shareholders of the Company (excluding
Shares issued pursuant to this Plan), consistent with applicable laws, within twelve (12) months before or after the Effective Date. Upon the Effective Date, the Board may grant Awards pursuant
to this Plan; provided, however, that: (i) no Option may be exercised prior to initial shareholder approval of this Plan; (ii) no Option granted pursuant to an increase in the number of 

9

 

Shares
approved by the Board shall be exercised prior to the time such increase has been approved by the shareholders of the Company; (iii) in the event that initial shareholder approval is not
obtained within the time period provided herein, all Awards granted hereunder shall be canceled, any Shares issued pursuant to any Award shall be canceled and any purchase of Shares issued hereunder
shall be rescinded; and (iv) Awards granted pursuant to an increase in the number of Shares approved by the Board which increase is not timely approved by shareholders shall be canceled, any
Shares issued pursuant to any such Awards shall be canceled, and any purchase of Shares subject to any such Award shall be rescinded. 

        19.    TERM OF PLAN/GOVERNING LAW.    Unless earlier terminated as
provided herein, this Plan will terminate ten (10) years from the Effective Date or, if earlier, the date of shareholder approval. This Plan and all agreements hereunder shall be governed by
and construed in accordance with the laws of the State of California. 

        20.    AMENDMENT OR TERMINATION OF PLAN.    Subject to
Section 5.9 hereof, the Board may at any time terminate or amend this Plan in any respect, including without limitation amendment of any form of Award Agreement or instrument to be executed
pursuant to this Plan; provided, however, that the Board will not, without the approval of the shareholders of the Company, amend this Plan in any manner that requires such shareholder approval
pursuant to Section 25102(o) of the California Corporations Code or the Code or the regulations promulgated thereunder as such provisions apply to ISO plans. 

        21.    NONEXCLUSIVITY OF THE PLAN.    Neither the adoption of this
Plan by the Board, the submission of this Plan to the shareholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board
to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock options and other equity awards otherwise than under this Plan, and
such arrangements may be either generally applicable or applicable only in specific cases. 

        22.    DEFINITIONS.    As used in this Plan, the following terms will
have the following meanings: 

        "Award" means any award under this Plan, including any Option or Restricted Stock Award. 

        "Award Agreement" means, with respect to each Award, the signed written agreement between the Company and the Participant setting forth
the terms and conditions of the Award, including the Stock Option Agreement and Restricted Stock Agreement. 

        "Board" means the Board of Directors of the Company. 

        "Cause" means Termination because of (i) any willful, material violation by the Participant of any law or regulation applicable to
the business of the Company or a Subsidiary of the Company, the Participant's conviction for, or guilty plea to, a felony or a crime involving moral turpitude, or any willful perpetration by the
Participant of a common law fraud, (ii) the Participant's commission of an act of personal dishonesty which involves personal profit in connection with the Company or any other entity having a
business relationship with the Company, (iii) any material breach by the Participant of any provision of any agreement or understanding between the Company or any Subsidiary of the Company and
the Participant regarding the terms of the Participant's service as an employee, officer, director or consultant to the Company or a Subsidiary of the Company, including without limitation, the
willful and continued failure or refusal of the Participant to perform the material duties required of such Participant as an employee, officer, director or consultant of the Company or a Subsidiary
of the Company, other than as a result of having a Disability, or a breach of any applicable invention assignment and confidentiality agreement or similar agreement between the Company or a Subsidiary
of the Company and the Participant, (iv) Participant's disregard of the policies of the Company or any Subsidiary of the Company so as to cause loss, damage or injury to the property,
reputation or employees of the Company or a Subsidiary of the Company, or (v) any other misconduct by the 

10

 

Participant
which is materially injurious to the financial condition or business reputation of, or is otherwise materially injurious to, the Company or a Subsidiary of the Company. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Committee" means the committee created and appointed by the Board to administer this Plan, or if no committee is created and appointed,
the Board. 

        "Company" means Alibris, or any successor corporation. 

        "Disability" means a disability, whether temporary or permanent, partial or total, as determined by the Committee. 

        "Exercise Price" means the price at which a holder of an Option may purchase the Shares issuable upon exercise of the Option. 

        "Fair Market Value" means, as of any date, the value of a share of the Company's Common Stock determined as follows: 

	(a)
	if
such Common Stock is then quoted on the Nasdaq National Market, its closing price on the Nasdaq National Market on the date of determination as reported in  The Wall Street Journal;

	(b)
	if
such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities
exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal;

	(c)
	if
such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to trading on a national securities exchange, the average of the closing
bid and asked prices on the date of determination as reported by The Wall Street Journal (or, if not so reported, as otherwise reported by any newspaper
or other source as the Board may determine); or

	(d)
	if
none of the foregoing is applicable, by the Board or the Committee in good faith. 

        "Initial Public Offering" means the closing of the first sale of the Common Stock of the Company, or of any successor entity, to the
public, through a firm commitment underwriting, for an aggregate price (exclusive of underwriters' discounts and commissions and expenses of the offering) of at least $15,000,000 pursuant to an
effective registration statement filed with the SEC under the Securities Act. 

        "Option" means an award of an option to purchase Shares pursuant to Section 5 hereof. 

        "Participant" means a person who receives an Award under this Plan. 

        "Plan" means this Alibris 2000 Equity Incentive Plan, as amended from time to time. 

        "Purchase Price" means the price at which a Participant may purchase Restricted Stock. 

        "Restricted Stock" means Shares purchased pursuant to a Restricted Stock Award. 

        "Restricted Stock Award" means an award of Shares pursuant to Section 6 hereof. 

        "SEC" means the Securities and Exchange Commission. 

        "Securities Act" means the Securities Act of 1933, as amended. 

        "Shares" means shares of the Company's Common Stock reserved for issuance under this Plan, as adjusted pursuant to Sections 2 and 17
hereof, and any successor security. 

        "Subsidiary" means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in 

11

 

the
unbroken chain owns stock representing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

        "Termination" or "Terminated" means, for purposes of this Plan with respect to a
Participant, that the Participant has for any reason ceased to provide services as an employee, officer, director or consultant to the Company or a Subsidiary of the Company. A Participant will not be
deemed to have ceased to provide services in the case of (i) sick leave, (ii) military leave, or (iii) any other leave of absence approved by the Committee, provided that such
leave is for a period of not more than ninety (90) days
(a) unless reinstatement (or, in the case of an employee with an ISO, reemployment) upon the expiration of such leave is guaranteed by contract or statute, or (b) unless provided
otherwise pursuant to formal policy adopted from time to time by the Company's Board and issued and promulgated in writing. In the case of any Participant on (i) sick leave,
(ii) military leave or (iii) an approved leave of absence, the Committee may make such provisions respecting suspension of vesting of the Award while on leave from the Company or a
Subsidiary of the Company as it may deem appropriate, except that in no event may an Option be exercised after the expiration of the term set forth in the Stock Option Agreement. The Committee will
have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide services (the
"Termination Date"). 

        "Unvested Shares" means "Unvested Shares" as defined in the Award Agreement. 

        "Vested Shares" means "Vested Shares" as defined in the Award Agreement. 

12

No.                      

  
 

    ALIBRIS    
    
    2000 EQUITY INCENTIVE PLAN    
    
    IMMEDIATELY EXERCISABLE    
    
    STOCK OPTION AGREEMENT    
    

        This Stock Option Agreement (the "Agreement") is made and entered into as of the date of grant set forth below
(the "Date of Grant") by and between Alibris, a California corporation (the "Company"), and the
participant named below (the "Participant"). Capitalized terms not defined herein shall have the meaning ascribed to them in the Company's 2000 Equity
Incentive Plan (the "Plan"). 

	Participant:	 	    

	

Social Security Number:	
 	

    

	

Address:	
 	

    

	

Total Option Shares:	
 	

    

	

Exercise Price Per Share:	
 	

    

	

Date of Grant:	
 	

    

	

First Vesting Date:	
 	

    

	

Expiration Date:	
 	

    
Unless earlier Terminated (as defined in Section 5.6 of the Plan)
	

Type of Stock Option	
 	

 
	(Check one):	 	o Incentive Stock Option

o Nonqualified Stock Option

        1.    Grant of Option.    The Company hereby grants to Participant an
option (this "Option") to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the
"Shares") at the Exercise Price Per Share set forth above (the "Exercise Price"), subject to all of the
terms and conditions of this Agreement and the Plan. If designated as an Incentive Stock Option above, the Option is intended to qualify as an "incentive stock option" (the
"ISO") within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code"). 

        2.    Exercise Period.    

        2.1    Exercise Period of Option.    This Option is immediately exercisable although the Shares issued upon exercise
of the Option will be subject to the restrictions on transfer and Repurchase Options set forth in Sections 7, 8 and 9 below. Provided Participant continues to provide services to the Company or to any
Parent or Subsidiary of the Company, the Shares issuable upon exercise of this Option will become vested with respect to twenty-five percent (25%) of the Shares on the First Vesting Date
set forth on the first page of this Agreement (the "First Vesting Date") and thereafter at the end of each full succeeding month after the First Vesting
Date an additional 2.08333 percent (2.08333%) of the Shares will become vested until the Shares are vested with respect to one hundred percent (100%) of the Shares. If application of the
vesting percentage causes a fractional share, such share shall be rounded down to the nearest whole share for each month except for the last month in such vesting period, at the end of which last
month this Option shall become vested for the full remainder of the Shares. Unvested Shares may not be sold or otherwise transferred by Participant without the Company's prior written consent.
Notwithstanding any provision in the Plan or this Agreement to the contrary, Options for Unvested Shares (as defined in Section 2.2 of this Agreement) will not be exercisable on or after
Participant's Termination Date. 

 

        2.2    Vesting of Options.    Shares that are vested pursuant to the schedule set forth in Section 2.1 are
"Vested Shares." Shares that are not vested pursuant to the schedule set forth in Section 2.1 are  "Unvested
Shares." Notwithstanding the foregoing or any provision to the contrary in the Plan or this Agreement, in the event that
following the closing of a Change of Control Participant is Terminated by the Company or a successor of the Company within twelve (12) months after the closing of the Change of Control either
without Cause or as a result of Constructive Termination (as defined below), then all Shares which have not previously vested will become Vested Shares. For purposes of this Agreement and the Exercise
Agreement, "Constructive Termination shall mean Participant's delivery of a written notice to the Company stating that Participant is electing to terminate his or her employment with the Company for
any of the following circumstances: (a) a material and adverse reduction in Participant's then existing salary and benefits (taken as a whole) not agreed to by the Participant; or
(b) Participant's employment responsibilities then existing are materially and adversely reduced in scope, function and authority in a manner not agreed to by Participant, or (c) the
Company or its successor entity requires the Optionee to relocate his or her place of employment in excess of twenty-five (25) miles from the Company's location as of the closing of
the Change of Control. 

        2.3    Expiration.    The Option shall expire on the Expiration Date set forth above or earlier as provided in
Section 3 below or pursuant to Section 5.6 of the Plan. 

        3.    Termination.    

        3.1    Termination for Any Reason Except Death, Disability or Cause.    If Participant is Terminated for any reason,
except death, Disability or for Cause, the Option, to the extent (and only to the extent) that it would have been exercisable by Participant on the Termination Date, may be exercised by Participant no
later than ninety (90) days after the Termination Date, but in any event no later than the Expiration Date. 

        3.2    Termination Because of Death or Disability.    If Participant is Terminated because of death or Disability of
Participant (or Participant dies within ninety (90) days of Termination when Termination is for any reason other than Participant's Disability or for Cause), the Option, to the extent that it
is exercisable by Participant on the Termination Date, may be exercised by Participant (or Participant's legal representative) no later than six (6) months after the Termination Date, but in
any event no later than the Expiration Date. Any exercise beyond (i) ninety (90) days after the Termination Date when the Termination is for any reason other than the Participant's death
or disability, within the meaning of Section 22(e)(3) of the Code; or (ii) six (6) months after the Termination Date when the termination is for Participant's disability, within
the meaning of Section 22(e)(3) of the Code, is deemed to be an NQSO. 

        3.3    Termination for Cause.    If Participant is Terminated for Cause, then the Option will expire on Participant's
Termination Date, or at such later time and on such conditions as are determined by the Committee. 

        3.4    No Obligation to Employ.    Nothing in the Plan or this Agreement shall confer on Participant any right to
continue in the employ of, or other relationship with, the Company or any Parent or Subsidiary of
the Company, or limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate Participant's employment or other relationship at any time, with or without Cause. 

        4.    Manner of Exercise.    

        4.1    Stock Option Exercise Agreement.    To exercise this Option, Participant (or in the case of exercise after
Participant's death or incapacity, Participant's executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by 

2

 

the
Committee from time to time (the "Exercise Agreement"), which shall set forth, inter alia,
(i) Participant's election to exercise the Option, (ii) the number of Shares being purchased, (iii) any restrictions imposed on the Shares and (iv) any representations,
warranties and agreements regarding Participant's investment intent and access to information as may be required by the Company to comply with applicable securities laws. If someone other than
Participant exercises the Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option. 

        4.2    Limitations on Exercise.    The Option may not be exercised unless such exercise is in compliance with all
applicable federal and state securities laws, as they are in effect on the date of exercise. The Option may not be exercised as to fewer than one hundred (100) Shares unless it is exercised as
to all Shares as to which the Option is then exercisable. 

        4.3    Payment.    The Exercise Agreement shall be accompanied by full payment of the Exercise Price for the shares
being purchased in cash (by check), or where permitted by law: 

        (a)   by
cancellation of indebtedness of the Company to the Participant; 

        (b)   by
surrender of shares of the Company's Common Stock that (i) either (A) have been owned by Participant for more than six (6) months and have been
paid for within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares); or
(B) were obtained by Participant in the open public market; and (ii) are clear of all liens, claims, encumbrances or security interests; 

        (c)   if
so approved by the Committee, by tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate
sufficient to avoid imputation of income under Sections 483 and 1274 of the Code; provided, however,
that Participants who are not employees or directors of the Company shall not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than the
Shares; 

        (d)   by
waiver of compensation due or accrued to Participant for services rendered; 

        (e)   provided
that a public market for the Company's stock exists: (i) through a "same day sale" commitment from Participant and a broker-dealer that is a member of
the National Association of Securities Dealers (an "NASD Dealer") whereby Participant irrevocably elects to exercise the Option and to sell a portion of
the Shares so purchased sufficient to pay for the total Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the
Company, or (ii) through a "margin" commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the
NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to
forward the total Exercise Price directly to the Company; or 

        (f)    any
other form of consideration approved by the Committee; or 

        (g)   if
so approved by the Committee, by any combination of the foregoing. 

        4.4    Tax Withholding.    Prior to the issuance of the Shares upon exercise of the Option, Participant must pay or
provide for any applicable federal, state and local withholding obligations of the Company. If the Committee permits, Participant may provide for payment of withholding taxes upon exercise of the
Option by requesting that the Company retain the minimum number of Shares with a Fair Market Value equal to the minimum amount of taxes required to be withheld; but in no event will the Company
withhold Shares if such withholding would result in adverse 

3

 

accounting
consequences to the Company. In such case, the Company shall issue the net number of Shares to the Participant by deducting the Shares retained from the Shares issuable upon exercise. 

        4.5    Issuance of Shares.    Provided that the Exercise Agreement and payment are in form and substance satisfactory
to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant's authorized assignee, or Participant's legal representative, and shall deliver
certificates representing the Shares with the appropriate legends affixed thereto. 

        5.    Notice of Disqualifying Disposition of ISO Shares.    If the
Option is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Date of
Grant, and (ii) the date one (1) year after transfer of such Shares to Participant upon exercise of the Option, Participant shall immediately notify the Company in writing of such
disposition. Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant from the early disposition by payment in
cash or out of the current wages or other compensation payable to Participant. 

        6.    Compliance with Laws and Regulations.    The Plan and this
Agreement are intended to comply with Section 25102(o) of the California Corporations Code and any regulations relating thereto. Any provision of this Agreement which is inconsistent with
Section 25102(o) or any regulations relating thereto shall, without further act or amendment by the Company or the Board, be reformed to comply with the requirements of Section 25102(o)
and any regulations relating thereto. The exercise of the Option and the issuance and transfer of Shares shall be subject to compliance by the Company and Participant with all applicable requirements
of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's Common Stock may be listed at the time of such issuance or transfer. Participant
understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange to effect such compliance. 

        7.    Nontransferability of Option.    The Option may not be
transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of Participant only by Participant or in the event of Participant's
incapacity, by Participant's legal representative. The terms of the Option shall be binding upon the executors, administrators, successors and assigns of Participant. 

        8.    Company's Repurchase Option for Unvested Shares.    The Company,
or its assignee, shall have the option to repurchase Participant's Unvested Shares (as defined in Section 2.2 of this Agreement) on the terms and conditions set forth in the Exercise Agreement
(the "Repurchase Option") if Participant is Terminated (as defined in the Plan) for any reason, or no reason, including without limitation Participant's
death, Disability (as defined in the Plan), voluntary resignation or termination by the Company with or without Cause. Notwithstanding the foregoing, the Company shall retain the Repurchase Option for
Unvested Shares only as to that number of Unvested Shares (whether or not exercised) that exceeds the number of shares which remain unexercised. 

        9.    Company's Right of First Refusal.    Unvested Shares may not be
sold or otherwise transferred by Participant without the Company's prior written consent. Before any Vested Shares held by Participant or any transferee of such Vested Shares may be sold or otherwise
transferred (including without limitation a transfer by gift or operation of law), the Company and/or its assignee(s) shall have an assignable right of first refusal to purchase the Vested Shares to
be sold or transferred on the terms and conditions set forth in the Exercise Agreement (the "Right of First Refusal"). The Company's Right of First
Refusal will terminate when the Company's securities become publicly traded. 

        10.    Tax Consequences.    Set forth below is a brief summary as of
the Effective Date of the Plan of some of the federal and California tax consequences of exercise of the Option and disposition of the 

4

 

Shares.
THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE
SHARES. 

        10.1    Exercise of ISO.    If the Option qualifies as an ISO, there will be no regular federal or California income
tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as a tax preference
item for federal alternative minimum tax purposes and may subject the Participant to the alternative minimum tax in the year of exercise. 

        10.2    Exercise of Nonqualified Stock Option.    If the Option does not qualify as an ISO, there may be a regular
federal and California income tax liability upon the exercise of the Option. Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is a current or former employee of the Company, the Company may be required to
withhold from Participant's compensation or collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 

        10.3    Disposition of Shares.    The following tax consequences may apply upon disposition of the Shares. 

        (a)    Incentive Stock Options.    If the Shares are held for more than twelve (12) months after the date of
the transfer of the Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated
as long term capital gain for federal and California income tax purposes. If Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any
gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price. 

        (b)    Nonqualified Stock Options.    If the Shares are held for more than twelve (12) months after the date of
the transfer of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain. 

        (c)    Withholding.    The Company may be required to withhold from the Participant's compensation or collect from the
Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. 

        10.4.    Section 83(b) Election for Unvested Shares.    With respect to Unvested Shares, which are subject to
the Repurchase Option, unless an election is filed by the Participant with the Internal Revenue Service (and, if necessary, the proper state taxing authorities), within
30 days of the purchase of the Unvested Shares, electing pursuant to Section 83(b) of the Code (and similar state tax provisions, if applicable) to be taxed
currently on any difference between the Exercise Price of the Unvested Shares and their Fair Market Value on the date of purchase, there may be a recognition of taxable income (including, where
applicable, alternative minimum taxable income) to the Participant, measured by the excess, if any, of the Fair Market Value of the Unvested Shares at the time they cease to be Unvested Shares, over
the Exercise Price of the Unvested Shares. 

        11.    Privileges of Stock Ownership.    Participant shall not have
any of the rights of a shareholder with respect to any Shares until the Shares are issued to Participant. 

        12.    Interpretation.    Any dispute regarding the interpretation of
this Agreement shall be submitted by Participant or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company and
Participant. 

5

 

        13.    Entire Agreement.    The Plan is incorporated herein by
reference. This Agreement and the Plan constitute the entire agreement of the parties and supersede all prior undertakings and agreements with respect to the subject matter hereof. 

        14.    Notices.    Any notice required to be given or delivered to the
Company under the terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices. Any notice required to be given or delivered
to Participant shall be in writing and addressed to Participant at the address indicated above or to such other address as such party may designate in writing from time to time to the Company. All
notices shall be deemed to have been given or delivered upon: (i) personal delivery; (ii) three (3) days after deposit in the United States mail by certified or registered mail
(return receipt requested); (iii) one (1) business day after deposit with any return receipt express courier (prepaid); or (iv) one (1) business day after transmission by
facsimile or telecopier. 

        15.    Successors and Assigns.    The Company may assign any of its
rights under this Agreement, including, without limitation, the Company's Right of First Refusal and Repurchase Option. This Agreement shall
be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Participant and
Participant's heirs, executors, administrators, legal representatives, successors and assigns. 

        16.    Governing Law.    This Agreement shall be governed by and
construed in accordance with the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within California. If any
provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain
fully effective and enforceable. 

        17.    Acceptance.    Participant hereby acknowledges receipt of a
copy of the Plan and this Agreement. Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan and this
Agreement. Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax adviser prior to such
exercise or disposition. 

[THE
REST OF THIS PAGE IS INTENTIONALLY BLANK.] 

6

 

        IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed in triplicate by its duly authorized representative and Participant has executed this Agreement in triplicate,
effective as of the Date of Grant. 

	ALIBRIS	 	PARTICIPANT
	

By:	
 	

 	
 	

 
	 	 	
	 	

	 	 	 	 	(Signature)
	

 	
 	

 
	
	 	

	(Please print name)	 	(Please print name)
	

 	
 	

 
	
	 	 
	(Please print title)	 	 

[Signature page to Alibris Immediately Exercisable Stock Option Agreement]

7

 
 

EXHIBIT A    
    
    FORM OF
  IMMEDIATELY EXERCISABLE
  STOCK OPTION EXERCISE AGREEMENT    
    

No.           

 
 

ALIBRIS    
    
    2000 EQUITY INCENTIVE PLAN    
    
    IMMEDIATELY EXERCISABLE STOCK OPTION    
    
    EXERCISE AGREEMENT    
    

        This Immediately Exercisable Stock Option Exercise Agreement (the "Exercise Agreement") is made and entered into
as of                            , 2            
(the "Effective Date") by and between Alibris, a California corporation (the
"Company"), and the purchaser named below (the "Purchaser"). Capitalized terms not defined herein shall
have the meanings ascribed to them in the Company's 2000 Equity Incentive (the "Plan"). 

	Purchaser:	 	 	 
	 	 	 	

	
	 	 	 
	 	 	 	

	
Social Security Number:	
 	

 	

 
	 	 	 	

	
Address:	
 	

 	

 
	 	 	 	

	
	 	 	 
	 	 	 	

	
Total Number of Shares:	
 	

 	

 
	 	 	 	

	
Exercise Price Per Share:	
 	

 	

 
	 	 	 	

	
Date of Grant:	
 	

 	

 
	 	 	 	

	
First Vesting Date:	
 	

 	

 
	 	 	 	

	
Expiration Date:	
 	

 	

 
	 	 	 	
 (Unless earlier terminated under Section 5.6 of the Plan)
	
Type of Stock Option

(Check one):	
 	

 	

o Incentive Stock Option

o Nonqualified Stock Option

        1.    Exercise of Option.    

        1.1    Exercise.    Pursuant to exercise of that certain option (the
"Option") granted to Purchaser under the Plan and subject to the terms and conditions of this Exercise Agreement, Purchaser hereby purchases from the
Company, and the Company hereby sells to Purchaser, the Total Number of Shares set forth above (the "Shares") of the Company's Common Stock at the
Exercise Price Per Share set forth above (the "Exercise Price"). As used in this Exercise Agreement, the term
"Shares" refers to the Shares purchased under this Exercise Agreement and includes all securities received (i) in replacement of the Shares,
(ii) as a result of stock dividends or stock splits with respect to the Shares, and (iii) all securities received in replacement of the Shares in a merger, recapitalization,
reorganization or similar corporate transaction. 

        1.2    Title to Shares.    The exact spelling of the name(s) under which Purchaser will take title to the Shares is: 

	 	 	 	

	
	 	 	 
	 	 	 	

        Purchaser
desires to take title to the Shares as follows: 

	o
	Individual,
as separate property

	o
	Husband
and wife, as community property

	o
	Joint
Tenants

	o
	Other;
please specify: 

        1.3    Payment.    Purchaser hereby delivers payment of the Exercise Price in the manner
permitted in the Stock Option Agreement, or other similar agreement, between the Company and the Purchased dated as
of                            , 2            (the
"Stock Option Agreement") as follows (check and complete as appropriate): 

	o
	in
cash (by check) in the amount of $                        , receipt of which is acknowledged by the Company;

	o
	by
cancellation of indebtedness of the Company owed to Purchaser in the amount of $                        ;

	o
	by
delivery of                        fully-paid, nonassessable and vested shares of the Common Stock of the Company owned by
Purchaser for at least six (6) months prior to the date hereof which have been paid for within the meaning of SEC Rule 144, (if purchased by use of a promissory note, such note has been
fully paid with respect to such vested shares), or obtained by Purchaser in the open public market, and owned free and clear of all liens, claims, encumbrances or security interests, valued at the
current Fair Market Value of $                        per share;

	o
	if
so approved by the Committee, by tender of a Full Recourse Promissory Note in the principal amount of $                        ,
having such
terms as may be approved by the Committee and bearing interest at a rate sufficient to avoid imputation of income under Sections 483 and 1274 of the Code and secured by a Pledge Agreement herewith;
provided, however, that Purchasers who are not employees or directors of the Company shall not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral
other than the Shares;

	o
	by
the waiver hereby of compensation due or accrued for services rendered in the amount of $                        .

        2.    Delivery.    

        2.1    Deliveries by Purchaser.    Purchaser hereby delivers to the Company (i) this Exercise Agreement,
(ii) two (2) copies of a blank Stock Power and Assignment Separate from Stock Certificate in the form of Exhibit 1 attached hereto
(the "Stock Powers"), both executed by Purchaser (and Purchaser's spouse, if any), (iii) if Purchaser is married, a Consent of Spouse in the form
of Exhibit 2 attached hereto (the "Spouse Consent") executed by Purchaser's spouse, and
(iv) the Exercise Price and payment or other provision for any applicable tax obligations in the form of a Secured Full Recourse Promissory Note in the form attached hereto as  Exhibit 3 (the
"Note") and (v) if a Note is delivered by the Purchaser as payment under
this Section and Section 1.3 hereof, a Stock Pledge Agreement in the form attached hereto as Exhibit 4 executed by Purchaser (the
"Pledge Agreement"). 

        2.2    Deliveries by the Company.    Upon its receipt of the Exercise Price, payment or other provision for any
applicable tax obligations and all the documents to be executed and delivered by Purchaser to the Company under Section 2.1, the Company will issue a duly executed stock certificate evidencing
the Shares in the name of Purchaser to be placed in escrow as provided in Section 11 to secure payment of Purchaser's obligation to the Company under the promissory note and until expiration or
termination of the Company's Repurchase Option and Right of First Refusal described in Sections 8, 9 and 10. 

        3.    Representations and Warranties of Purchaser.    Purchaser represents and warrants to the
Company that: 

        3.1    Agrees to Terms of the Plan.    Purchaser has received a copy of the Plan and the Stock Option Agreement, has
read and understands the terms of the Plan, the Stock Option Agreement and this Exercise Agreement, and agrees to be bound by their terms and conditions. Purchaser acknowledges that there may be
adverse tax consequences upon exercise of the Option or disposition of the Shares, and that Purchaser should consult a tax adviser prior to such exercise or disposition. 

        3.2    Purchase for Own Account for Investment.    Purchaser is purchasing the Shares for Purchaser's own account for
investment purposes only and not with a view to, or for sale in connection with, a distribution of the Shares within the meaning of the Securities Act. Purchaser has no present intention of selling or
otherwise disposing of all or any portion of the Shares and no one other than Purchaser has any beneficial ownership of any of the Shares. 

        3.3    Access to Information.    Purchaser has had access to all information regarding the Company and its present and
prospective business, assets, liabilities and financial condition that Purchaser reasonably considers important in making the decision to purchase the Shares, and Purchaser has had ample opportunity
to ask questions of the Company's representatives concerning such matters and this investment. 

        3.4    Understanding of Risks.    Purchaser is fully aware of: (i) the highly speculative nature of the
investment in the Shares; (ii) the financial hazards involved; (iii) the lack of liquidity of the Shares and the restrictions on transferability of the Shares
(e.g., that Purchaser may not be able to sell or dispose of the Shares or use them as collateral for loans); (iv) the qualifications and
backgrounds of the management of the Company; and (v) the tax consequences of investment in the Shares. Purchaser is capable of evaluating the merits and risks of this investment, has the
ability to protect Purchaser's own interests in this transaction and is financially capable of bearing a total loss of this investment. 

        3.5    No General Solicitation.    At no time was Purchaser presented with or solicited by any publicly issued or
circulated newspaper, mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and purchase of the Shares. 

        4.    Compliance with Securities Laws.    

        4.1    Compliance with U.S. Federal Securities Laws.    Purchaser understands and acknowledges that the Shares have
not been registered with the SEC under the Securities Act and that, notwithstanding any other provision of the Stock Option Agreement to the contrary, the exercise of any rights to purchase any Shares
is expressly conditioned upon compliance with the Securities Act and all applicable state securities laws. Purchaser agrees to cooperate with the Company to ensure compliance with such laws. The
Shares are being issued under the Securities Act pursuant to the exemption provided by SEC Rule 701. 

        4.2    Compliance with California Securities Laws.    THE PLAN, THE STOCK OPTION AGREEMENT, AND THIS EXERCISE
AGREEMENT ARE INTENDED TO COMPLY WITH SECTION 25102(o) OF THE CALIFORNIA CORPORATIONS CODE AND ANY RULES (INCLUDING COMMISSIONER RULES, IF APPLICABLE) OR REGULATIONS PROMULGATED THEREUNDER BY THE
CALIFORNIA DEPARTMENT OF CORPORATIONS (THE "REGULATIONS"). ANY PROVISION OF THIS EXERCISE AGREEMENT WHICH IS INCONSISTENT WITH SECTION 25102(o) SHALL,
WITHOUT FURTHER ACT OR AMENDMENT BY THE COMPANY OR THE BOARD, BE REFORMED TO COMPLY WITH THE REQUIREMENTS OF SECTION 25102(o). THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF THIS EXERCISE
AGREEMENT, IF NOT YET QUALIFIED WITH THE CALIFORNIA COMMISSIONER OF CORPORATIONS AND NOT EXEMPT FROM SUCH QUALIFICATION, IS SUBJECT TO SUCH QUALIFICATION, AND THE ISSUANCE OF SUCH SECURITIES, AND THE 

RECEIPT
OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS THE SALE IS EXEMPT. THE RIGHTS OF THE PARTIES TO THIS EXERCISE AGREEMENT ARE EXPRESSLY CONDITIONED UPON
SUCH QUALIFICATION BEING OBTAINED OR AN EXEMPTION BEING AVAILABLE. 

        5.    Restricted Securities.    

        5.1    No Transfer Unless Registered or Exempt.    Purchaser understands that Purchaser may not transfer any Shares
unless such Shares are registered under the Securities Act or qualified under applicable state securities laws or unless, in the opinion of counsel to the Company, exemptions from such registration
and qualification requirements are available. Purchaser understands that only the Company may file a registration statement with the SEC and that the Company is under no obligation to do so
with respect
to the Shares. Purchaser has also been advised that exemptions from registration and qualification may not be available or may not permit Purchaser to transfer all or any of the Shares in the amounts
or at the times proposed by Purchaser. 

        5.2    SEC Rule 144.    In addition, Purchaser has been advised that SEC Rule 144 promulgated under the
Securities Act, which permits certain limited sales of unregistered securities, is not presently available with respect to the Shares and, in any event, requires that the Shares be held for a minimum
of one (1) year, and in certain cases two (2) years, after they have been purchased and paid for (within the meaning of Rule 144).
Purchaser understands and acknowledges, if the Shares paid for with a promissory note, that the Shares may not be deemed to be fully "paid for" within the meaning of Rule 144 unless certain
conditions are met and that, accordingly, the Rule 144 holding period of such Shares may not begin to run until such Shares are fully paid for within the meaning of Rule 144. Purchaser
understands that Rule 144 may indefinitely restrict transfer of the Shares so long as Purchaser remains an "affiliate" of the Company or if "current public information" about the Company (as
defined in Rule 144) is not publicly available. 

        5.3    SEC Rule 701.    The Shares are issued pursuant to SEC Rule 701 promulgated under the Securities
Act and may become freely tradeable by non-affiliates (under limited conditions regarding the method of sale) ninety (90) days after the first sale of Common Stock of the Company to
the general public pursuant to a registration statement filed with and declared effective by the SEC, subject to the lengthier market standoff agreement contained in Section 7 of this Exercise
Agreement or any other agreement entered into by Purchaser. Affiliates must comply with the provisions (other than the holding period requirements) of Rule 144. 

        6.    Restrictions on Transfers.    

        6.1    Disposition of Shares.    Purchaser hereby agrees that Purchaser shall make no disposition of the Shares (other
than as permitted by this Exercise Agreement) unless and until: 

        (a)   Purchaser
shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed disposition; 

        (b)   Purchaser
shall have complied with all requirements of this Exercise Agreement applicable to the disposition of the Shares; 

        (c)   Purchaser
shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that (i) the proposed
disposition does not require registration of the Shares under the Securities Act or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities
Act or of any exemption from registration available under the Securities Act (including Rule 144) have been taken; and 

        (d)   Purchaser
shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed disposition will not result in
the contravention of any transfer restrictions applicable to the Shares pursuant to the provisions of the Regulations referred to in Section 4.2 hereof. 

        6.2    Restriction on Transfer.    Purchaser shall not transfer, assign, grant a lien or security interest in, pledge,
hypothecate, encumber or otherwise dispose of any of the Shares which are subject to the Company's Repurchase Option or the Company's Right of First Refusal described below, except as permitted by
this Exercise Agreement. 

        6.3    Transferee Obligations.    Each person (other than the Company) to whom the Shares are transferred by means of
one of the permitted transfers specified in this Exercise Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by
the provisions of this Exercise Agreement and that the transferred Shares are subject to (i) both the Company's Repurchase Option and the Company's Right of First Refusal granted hereunder and
(ii) the market stand-off provisions of Section 7 hereof, to the same extent such Shares would be so subject if retained by the Purchaser. 

        7.    Market Standoff Agreement.    Purchaser agrees in connection with any registration of
the Company's securities that, upon the request of the Company or the underwriters managing any public offering of the Company's securities, Purchaser will not sell or otherwise dispose of any Shares
without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days) after the effective date of such
registration requested by such managing underwriters and subject to all restrictions as the Company or the underwriters may specify. Purchaser further agrees to enter into any agreement reasonably
required by the underwriters to implement the foregoing. 

        8.    Company's Repurchase Option for Unvested Shares.    The Company, or its assignee, shall
have the option to repurchase all or a portion of the Purchaser's Unvested Shares (as defined in Section 2.2 of the Stock Option Agreement) on the terms and conditions set forth in this Section
(the "Repurchase Option") if Purchaser is Terminated (as defined in the Plan) for any reason, or no reason, including without limitation, Purchaser's
death, Disability (as defined in the Plan), voluntary resignation or termination by the Company with or without Cause. Notwithstanding the foregoing, the Company shall retain the Repurchase Option for
Unvested Shares only as to that number of Unvested Shares (whether or not exercised) that exceeds the number of shares which remain unexercised. 

        8.1    Termination and Termination Date.    In case of any dispute as to whether Purchaser is Terminated, the
Committee shall have discretion to determine whether Purchaser has been Terminated and the effective date of such Termination (the "Termination Date"). 

        8.2    Exercise of Repurchase Option.    At any time within ninety (90) days after the Purchaser's Termination
Date (or, in the case of securities issued upon exercise of an Option after the Purchaser's Termination Date, within ninety (90) days after the date of such exercise), the Company, or its
assignee, may elect to repurchase any or all the Purchaser's Unvested Shares by giving Purchaser written notice of exercise of the Repurchase Option. 

        8.3    Calculation of Repurchase Price for Unvested Shares.    The Company or its assignee shall have the option to
repurchase from Purchaser (or from Purchaser's personal representative as the case may be) the Unvested Shares at the Purchaser's Exercise Price, proportionately adjusted for any stock split or
similar change in the capital structure of the Company as set forth in Section 2.2 of the Plan (the "Repurchase Price"). 

        8.4    Payment of Repurchase Price.    The Repurchase Price shall be payable, at the option of the Company or its
assignee, by check or by cancellation of all or a portion of any outstanding indebtedness owed by Purchaser to the Company or such assignee, or by any combination thereof. The Repurchase Price shall
be paid without interest within sixty (60) days after exercise of the Repurchase Option. 

        8.5    Right of Termination Unaffected.    Nothing in this Exercise Agreement shall be construed to limit or otherwise
affect in any manner whatsoever the right or power of the Company (or any Parent or Subsidiary of the Company) to terminate Purchaser's employment or other relationship with Company (or the Parent or
Subsidiary of the Company) at any time, for any reason or no reason, with or without Cause. 

        9.    Company's Right of First Refusal.    Unvested Shares may not be sold or otherwise
transferred by Purchaser without the Company's prior written consent. Before any Vested Shares held by Purchaser or any transferee of such Vested Shares (either sometimes referred to herein as the
"Holder") may be sold or otherwise transferred (including, without limitation, a transfer by gift or operation of law), the Company and/or its
assignee(s) will have a right of first refusal to purchase the Vested Shares to be sold or transferred (the "Offered Shares") on the terms and
conditions set forth in this Section (the "Right of First Refusal"). 

        9.1    Notice of Proposed Transfer.    The Holder of the Offered Shares will deliver to the Company a written notice
(the "Notice") stating: (i) the Holder's bona fide intention to sell or otherwise transfer the
Offered Shares; (ii) the name and address of each proposed purchaser or other transferee (the "Proposed Transferee"); (iii) the number of
Offered Shares to be transferred to each Proposed Transferee; (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Offered Shares (the
"Offered Price"); and (v) that the Holder acknowledges this Notice is an offer to sell the Offered Shares to the Company and/or its assignee(s)
pursuant to the Company's Right of First Refusal at the Offered Price as provided for in this Exercise Agreement. 

        9.2    Exercise of Right of First Refusal.    At any time within thirty (30) days after the date of the Notice,
the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all (or, with the consent of the Holder, less than all) the Offered Shares proposed to be transferred
to any one or more of the Proposed Transferees named in the Notice, at the purchase price, determined as specified below. 

        9.3    Purchase Price.    The purchase price for the Offered Shares purchased under this Section will be the Offered
Price, provided that if the Offered Price consists of no legal consideration (as, for example, in the case of a transfer by gift) the purchase price will be the fair market value of the Offered Shares
as determined in good faith by the Company's Board of Directors. If the Offered Price includes consideration other than cash, then the value of the non-cash consideration, as determined in
good faith by the Company's Board of Directors, will conclusively be deemed to be the cash equivalent value of such non-cash consideration. 

        9.4    Payment.    Payment of the purchase price for the Offered Shares will be payable, at the option of the Company
and/or its assignee(s) (as applicable), by check or by cancellation of all or a portion of any outstanding indebtedness owed by the Holder to the Company (or to such assignee, in the case of a
purchase of Offered Shares by such assignee) or by any combination thereof. The purchase price will be paid without interest within sixty (60) days after the Company's receipt of the Notice,
or, at the option of the Company and/or its assignee(s), in the manner and at the time(s) set forth in the Notice. 

        9.5    Holder's Right to Transfer.    If all of the Offered Shares proposed in the Notice to be transferred to a given
Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Offered Shares to each Proposed Transferee
at the Offered Price or at a higher price, provided that (i) such sale or other transfer is consummated within one hundred twenty
(120) days after the date of the Notice, (ii) any such sale or other transfer is effected in compliance with all applicable securities laws, and (iii) each Proposed Transferee
agrees in writing that the provisions of this Section will continue to apply to the Offered Shares in the hands of such Proposed Transferee. If the Offered Shares described in the Notice are not
transferred to each Proposed Transferee within such one hundred twenty (120) day period, then a new Notice must be given to the Company pursuant to which the Company will again be offered the
Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred. 

        9.6    Exempt Transfers.    Notwithstanding anything to the contrary in this Section, the following transfers of
Vested Shares will be exempt from the Right of First Refusal: (i) the transfer of any or all of the Vested Shares during Purchaser's lifetime by gift or on Purchaser's death by will or
intestacy to Purchaser's "Immediate Family" (as defined below) or to a trust for the benefit of 

Purchaser
or Purchaser's Immediate Family, provided that each transferee or other recipient agrees in a writing satisfactory to the Company that the provisions of this Section will continue to apply
to the transferred Vested Shares in the hands of such transferee or other recipient; (ii) any transfer of Vested Shares made pursuant to a statutory merger or statutory consolidation of the
Company with or into another corporation or corporations (except that the Right of First Refusal will continue to apply thereafter to such Vested Shares, in which case the surviving corporation of
such merger or consolidation shall succeed to the rights of the Company under this Section unless the agreement of merger or consolidation expressly otherwise provides); or (iii) any transfer
of Vested Shares pursuant to the winding up and dissolution of the Company. As used herein, the term "Immediate Family" will mean Purchaser's spouse,
the lineal descendant or antecedent, father, mother, brother or sister, child, adopted child, grandchild or adopted grandchild of the Purchaser or the Purchaser's spouse, or the spouse of any child,
adopted child, grandchild or adopted grandchild of Purchaser or the Purchaser's spouse or Spousal Equivalent, as defined herein. As used herein, a person is deemed to be a
"Spousal Equivalent" provided the following circumstances are true: (i) irrespective of whether or not the Participant and the Spousal Equivalent
are the same sex, they are the sole spousal equivalent of the other for the last twelve (12) months, (ii) they intend to remain so indefinitely, (iii) neither are married to
anyone else, (iv) both are at least 18 years of age and mentally competent to consent to contract, (v) they are not related by blood to a degree of closeness that which would
prohibit legal marriage in the state in which they legally reside, (vi) they are jointly responsible for each other's common welfare and financial obligations, and (vii) they reside
together in the same residence for the last twelve (12) months and intend to do so indefinitely. 

        9.7    Termination of Right of First Refusal.    The Right of First Refusal will terminate as to all Shares on the
effective date of the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the SEC under the Securities Act (other
than a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an employee incentive or benefit plan). 

        9.8    Encumbrances on Vested Shares.    Purchaser may grant a lien or security interest in, or pledge, hypothecate or
encumber Vested Shares only if each party to whom such lien or security interest is granted, or to whom such pledge, hypothecation or other encumbrance is made, agrees in a writing satisfactory to the
Company that: (i) such lien, security interest, pledge, hypothecation or encumbrance will not apply to such Vested Shares after they are acquired by the Company and/or its assignees under this
Section; and (ii) the provisions of this Section will continue to apply to such Vested Shares in the hands of such party and any transferee of such party. Purchaser may not grant a lien or
security interest in, or pledge, hypothecate or encumber, any Unvested Shares. 

        10.    Rights as a Shareholder.    Subject to the terms and conditions of this Exercise
Agreement, Purchaser will have all of the rights of a shareholder of the Company with respect to the Shares from and after
the date that Shares are issued to Purchaser until such time as Purchaser disposes of the Shares or the Company and/or its assignee(s) exercise(s) the Repurchase Option or Right of First Refusal. Upon
an exercise of the Repurchase Option or the Right of First Refusal, Purchaser will have no further rights as a holder of the Shares so purchased upon such exercise, other than the right to receive
payment for the Shares so purchased in accordance with the provisions of this Exercise Agreement, and Purchaser will promptly surrender the stock certificate(s) evidencing the Shares so purchased to
the Company for transfer or cancellation. 

        11.    Escrow.    As security for Purchaser's faithful performance of this Exercise Agreement,
Purchaser agrees, immediately upon receipt of the stock certificate(s) evidencing the Shares, to deliver such certificate(s), together with the Stock Powers executed by Purchaser and by Purchaser's
spouse, if any (with the date and number of Shares left blank), to the Secretary of the Company or other designee of the Company (the "Escrow Holder"),
who is hereby appointed to hold such certificate(s) and Stock Powers in escrow and to take all such actions and to effectuate all such transfers and/or releases of such Shares as are in accordance
with the terms of this Exercise Agreement. Purchaser and the Company agree that Escrow Holder will not be liable to any party to this Exercise Agreement (or 

to
any other party) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Exercise Agreement. Escrow
Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court with respect to the
transactions contemplated by this Exercise Agreement. The Shares will be released from escrow upon termination of both the Repurchase Option and the Right of First Refusal;  provided, however, that, if the Shares are pledged by the Purchaser subject to a Pledge Agreement, the
Shares will remain in escrow so long as they are subject to the Pledge Agreement. 

        12.    Restrictive Legends and Stop-Transfer Orders.    

        12.1    Legends.    Purchaser understands and agrees that the Company will place the legends set forth below or
similar legends on any stock certificate(s) evidencing the Shares, together with any other legends that may be required by state or U.S. Federal securities laws, the Company's Articles of
Incorporation or Bylaws, any other agreement between Purchaser and the Company or any agreement between Purchaser and any third party: 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF
THESE SECURITIES MAY REQUIRE AN OPINION
OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAWS.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER, INCLUDING THE RIGHT OF REPURCHASE AND RIGHT OF FIRST REFUSAL
OPTIONS HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION EXERCISE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE
PRINCIPAL OFFICE OF THE ISSUER. SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS INCLUDING THE RIGHT OF REPURCHASE AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE
SHARES.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER
OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE
INITIAL PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.

        12.2    Stop-Transfer Instructions.    Purchaser agrees that, to ensure compliance with the restrictions
imposed by this Exercise Agreement, the Company may issue appropriate "stop-transfer" instructions to its transfer agent, if any, and if the Company transfers its own securities, it may
make appropriate notations to the same effect in its own records. 

        12.3    Refusal to Transfer.    The Company will not be required (i) to transfer on its books any Shares that
have been sold or otherwise transferred in violation of any of the provisions of this Exercise Agreement or (ii) to treat as owner of such Shares, or to accord the right to vote or pay
dividends to any purchaser or other transferee to whom such Shares have been so transferred. 

        13.    Tax Consequences.    PURCHASER UNDERSTANDS THAT PURCHASER MAY SUFFER ADVERSE TAX
CONSEQUENCES AS A RESULT OF PURCHASER'S PURCHASE OR DISPOSITION OF THE SHARES. PURCHASER REPRESENTS: (i) THAT PURCHASER HAS CONSULTED WITH ANY TAX ADVISER THAT PURCHASER DEEMS ADVISABLE IN
CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND (ii) THAT PURCHASER IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. IN PARTICULAR, IF UNVESTED SHARES ARE SUBJECT TO REPURCHASE
BY THE COMPANY, PURCHASER REPRESENTS THAT PURCHASER HAS CONSULTED WITH
PURCHASER'S OWN TAX ADVISER CONCERNING THE ADVISABILITY OF FILING AN 83(b) ELECTION WITH THE INTERNAL REVENUE SERVICE WHICH MUST BE FILED WITHIN THIRTY (30) DAYS OF THE PURCHASE OF SHARES TO BE
EFFECTIVE. Set forth below is a brief summary as of the date the Plan was adopted by the Board of some of the U.S. Federal and California tax consequences of exercise of the Option and disposition of
the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PURCHASER SHOULD CONSULT HIS OR HER OWN TAX ADVISER BEFORE EXERCISING THIS OPTION OR
DISPOSING OF THE SHARES. 

        13.1    Exercise of Incentive Stock Option.    If the Option qualifies as an ISO, there will be no regular U.S.
Federal income tax liability or California income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price will be treated as a tax preference item for U.S. Federal alternative minimum tax purposes and may subject Purchaser to the alternative minimum tax in the year of exercise. 

        13.2    Exercise of Nonqualified Stock Option.    If the Option does not qualify as an ISO, there may be a regular
U.S. Federal income tax liability and a California income tax liability upon the exercise of the Option. Purchaser will be treated as having received compensation income (taxable at ordinary income
tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Purchaser is or was an employee of the Company, the Company may be
required to withhold from Purchaser's compensation or collect from Purchaser and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of
exercise. 

        13.3    Disposition of Shares.    The following tax consequences may apply upon disposition of the Shares. 

        (a)    Incentive Stock Options.    If the Shares are held for more than twelve (12) months after the date of
the transfer of the Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated
as long term capital gain for federal and California income tax purposes. If Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any
gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price. 

        (b)    Nonqualified Stock Options.    If the Shares are held for more than twelve (12) months after the date of
the transfer of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain. 

        (c)    Withholding.    The Company may be required to withhold from the Purchaser's compensation or collect from the
Purchaser and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. 

        13.4    Section 83(b) Election for Unvested Shares.    With respect to Unvested Shares, which are subject to
the Repurchase Option, unless an election is filed by the Purchaser with the Internal Revenue Service (and, if necessary, the proper state taxing authorities), within
30 days of the purchase of the Unvested Shares, electing pursuant to Section 83(b) of the Code (and similar state 

tax
provisions, if applicable) to be taxed currently on any difference between the Exercise Price of the Unvested Shares and their Fair Market Value on the date of purchase, there may be a recognition
of taxable income (including, where applicable, alternative minimum taxable income) to the Purchaser, measured by the excess, if any, of the Fair Market Value of the Unvested Shares at the time they
cease to be Unvested Shares, over the Exercise Price of the Unvested Shares. A form of Election under Section 83(b) is attached hereto as  Exhibit 5 for reference. 

        14.    Compliance with Laws and Regulations.    The issuance and transfer of the Shares will
be subject to and conditioned upon compliance by the Company and Purchaser with all applicable state and U.S. Federal laws and regulations and with all applicable requirements of any stock exchange or
automated quotation system on which the Company's Common Stock may be listed or quoted at the time of such issuance or transfer. 

        15.    Successors and Assigns.    The Company may assign any of its rights under this Exercise
Agreement, including its rights to purchase Shares under the Repurchase Option and the Right of First Refusal. This Exercise Agreement shall be binding upon and inure to the benefit of the successors
and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Exercise Agreement will be binding upon Purchaser and Purchaser's heirs, executors, administrators, legal
representatives, successors and assigns. 

        16.    Governing Law; Severability.    This Exercise Agreement shall be governed by and
construed in accordance with the internal laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within
California. If any provision of this Exercise Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the
other provisions will remain fully effective and enforceable. 

        17.    Notices.    Any notice required to be given or delivered to the Company shall be in
writing and addressed to the Corporate Secretary of the Company at its principal corporate offices. Any notice required to be given or delivered to Purchaser shall be in writing and addressed to
Purchaser at the address indicated above or to such other address as Purchaser may designate in writing from time to time to the Company. All notices shall be deemed effectively given upon personal
delivery, (i) three (3) days after deposit in the United States mail by certified or registered mail (return receipt requested), (ii) one (1) business day after its deposit
with any return receipt express courier (prepaid), or (iii) one (1) business day after transmission by rapifax or telecopier. 

        18.    Further Instruments.    The parties agree to execute such further instruments and to
take such further action as may be reasonably necessary to carry out the purposes and intent of this Exercise Agreement. 

        19.    Headings.    The captions and headings of this Exercise Agreement are included for ease
of reference only and will be disregarded in interpreting or construing this Exercise Agreement. All references herein to Sections will refer to Sections of this Exercise Agreement. 

        20.    Entire Agreement.    The Plan, the Stock Option Agreement and this Exercise Agreement,
together with all Exhibits thereto, constitute the entire agreement and understanding of the parties with respect to the subject matter of this Exercise Agreement, and supersede all prior
understandings and agreements, whether oral or written, between the parties hereto with respect to the specific subject matter hereof. 

[THE
REST OF THIS PAGE IS INTENTIONALLY BLANK.] 

        IN
WITNESS WHEREOF, the Company has caused this Exercise Agreement to be executed in triplicate by its duly authorized representative and Purchaser has executed this Exercise Agreement
in triplicate as of the Effective Date, indicated above. 

	ALIBRIS	 	 	PURCHASER
	

By:	
 	

 	
 	

 	

 
	 	 	
	 	 	

	 	 	 	 	 	(Signature)
	
	 	 	 	 	 
	

 (Please print name)	
 	

 	

 (Please print name)
	
	 	 	 	 	 
	

 (Please print title)	
 	

 	

 

[Signature page to Alibris Immediately Exercisable Stock Option Exercise Agreement]

 
 

LIST OF EXHIBITS    
    

	Exhibit 1:	 	Stock Power and Assignment Separate from Stock Certificate
	

Exhibit 2:	
 	

Spouse Consent
	

Exhibit 3:	
 	

Copy of Purchaser's Check and/or Secured Full Recourse Promissory Note
	

Exhibit 4:	
 	

Stock Pledge Agreement (for use if a Note is executed by Purchaser)
	

Exhibit 5:	
 	

Section 83(b) Election

 
 

EXHIBIT 1    
    
    STOCK POWER AND ASSIGNMENT
  SEPARATE FROM STOCK CERTIFICATE    
    

Stock Power and Assignment

Separate from Stock Certificate  

        FOR VALUE RECEIVED and pursuant to that certain Stock Option Exercise Agreement No.            dated as
of                            ,            ,
(the "Agreement"), the undersigned hereby sells, assigns and transfers
unto                        ,
                        shares of the Common Stock of Alibris, a
California corporation (the "Company"), standing in the undersigned's name on the books of the Company represented by Certificate
No(s).             delivered herewith, and does hereby irrevocably constitute and appoint the Secretary of the Company as the undersigned's attorney-in-fact, with
full power of substitution, to transfer said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS THERETO. 

Dated:                        ,            

	 	 	PURCHASER
	 	 	 	 
	

 	
 	

 (Signature)
	 	 	 	 
	

 	
 	

 (Please Print Name)
	 	 	 	 
	

 	
 	

 (Spouse's Signature, if any)
	 	 	 	 
	

 	
 	

 (Please Print Spouse's Name)

Instructions to Purchaser:    Please do not fill in any blanks other than the signature line. The purpose of this Stock Power and Assignment
is to enable the Company to acquire the shares upon a default under Purchaser's Note and to exercise its "Repurchase Option" and/or "Right of First Refusal" set forth in the Exercise Agreement without
requiring additional signatures on the part of the Purchaser or Purchaser's Spouse, if any. 

 
 

EXHIBIT 2    
    
    SPOUSE CONSENT    
    

Spouse Consent  

        The undersigned spouse of            (the "Purchaser") has read, understands, and hereby approves the Stock Option Exercise
Agreement between Purchaser and
the Company (the "Agreement"). In consideration of the Company's granting my spouse the right to purchase the Shares as set forth in the Agreement, the undersigned hereby agrees to be irrevocably
bound by the Agreement and further agrees that any community property interest I may have in the Shares shall similarly be bound by the Agreement. The undersigned hereby appoints Purchaser as my
attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement. 

Date:

	 	 	 	 
	

 	
 	

 	

 Print Name of Purchaser's Spouse
	 	 	 	 
	

 	
 	

 	

 Signature of Purchaser's Spouse
	 	 	 	 
	

 	
 	

Address:	

 
	 	 	 	

	 	 	 	 
	 	 	 	

	 	 	 	 
	 	 	 	

 
 

EXHIBIT 3    
    
    COPY OF PURCHASER'S CHECK AND/OR
  SECURED FULL RECOURSE PROMISSORY NOTE    
    

Secured Full Recourse Promissory Note  

Emeryville,
California 

	$                        	 	            ,            

Reference
is made to that certain Immediately Exercisable Stock Option Exercise Agreement (the "Purchase Agreement") of even date herewith, by and
between the undersigned (the "Purchaser") and ALIBRIS, a California corporation (the "Company"), issued
to Purchaser under the Company's 2000 Equity Incentive Plan (the "Plan"). This Secured Full Recourse Promissory Note (the
"Note") is being
tendered by Purchaser to the Company as all or part of the total purchase price of the Shares (as defined below) pursuant to the Purchase Agreement. 

        1.    Obligation.    In exchange for the issuance to the Purchaser pursuant to the Purchase
Agreement of                        shares of the Company's Common Stock (the "Shares"), receipt of which is hereby acknowledged, Purchaser hereby promises to
pay to the order of the Company on or before the earliest to occur of the following: (i) the fifth (5th) anniversary of the date first above written, (ii) ninety
(90) days after the Termination (as defined in the Plan) of Purchaser, or (iii) immediately upon any Event of Default (as defined in Section 3, below) at the Company's principal
place of business located at 1250 45th Street, Suite 100, Emeryville, California 94068, or at such other place as the Company may direct, the principal sum
of                        Dollars
($                        ) together with interest compounded annually on the unpaid principal at the rate of 6.4500 percent
(6.4500%) [Update
rate by going to http://www.irs.ustreas.gov/ind_info/index.html, clicking on "Applicable Federal Rates", and noting the current long-term, annual
rate.], which rate is not less than the minimum rate established pursuant to Section 1274(d) of the Internal Revenue Code of 1986, as
amended, on the earliest date on which there was a binding contract in writing for the purchase of the Shares; provided,  however, that the rate at which
interest will accrue on unpaid principal under this Note will not exceed the highest rate permitted by applicable law.
All payments hereunder shall be made in lawful tender of the United States. 

        2.    Security.    Performance of Purchaser's obligations under this Note is secured by a
security interest in the Shares and any other property of the Purchaser granted to the Company by Purchaser under a Stock Pledge Agreement dated of even date herewith between the Company and Purchaser
(the "Pledge Agreement"). 

        3.    Events of Default.    Purchaser will be deemed to be in default under this Note upon the
occurrence of any of the following events (each an "Event of Default"): (i) upon Purchaser's failure to make any payment when due under this
Note, which failure shall continue for a period of ten (10) days after such due date; (ii) the failure of any representation or warranty in the Pledge Agreement to have been true, the
failure of Purchaser to perform any obligation under the Pledge Agreement, or upon any other breach by the Purchaser of the Pledge Agreement; (iii) any voluntary or involuntary transfer of any
of the Shares or any interest therein (except a transfer to the Company); (iv) upon the filing regarding the Purchaser of any voluntary or involuntary petition for relief under the United
States Bankruptcy Code or the initiation of any proceeding under federal law or law of any other jurisdiction for the general relief of debtors; or (v) upon the execution by Purchaser of an
assignment for the benefit of creditors or the appointment of a receiver, custodian, trustee or similar party to take possession of Purchaser's assets or property. 

        4.    Acceleration; Remedies On Default.    Upon the occurrence of any Event of Default, at
the option of the Company, all principal and other amounts owed under this Note shall become immediately due and payable without notice or demand on the part of the Company, and the Company will have,
in addition to its rights and remedies under this Note, the Pledge Agreement, full recourse against any real, personal, tangible or intangible assets of Purchaser, and may pursue any legal or
equitable remedies that are available to it. 

        5.    Rule 144 Holding Period.    PURCHASER UNDERSTANDS THAT THE HOLDING PERIOD
SPECIFIED UNDER RULE 144(d) OF THE SECURITIES AND EXCHANGE COMMISSION 

WILL
NOT BEGIN TO RUN WITH RESPECT TO SHARES PURCHASED WITH THIS NOTE UNTIL EITHER (i) THE EXERCISE PRICE OF SUCH SHARES IS PAID IN FULL IN CASH OR BY OTHER PROPERTY ACCEPTED BY THE COMPANY, OR
(ii) THIS NOTE IS SECURED BY COLLATERAL, OTHER THAN THE SHARES THAT HAVE NOT BEEN FULLY PAID FOR IN CASH, HAVING A FAIR MARKET VALUE AT LEAST EQUAL TO THE AMOUNT OF PURCHASER'S THEN OUTSTANDING
OBLIGATION UNDER THIS NOTE (INCLUDING ACCRUED INTEREST). 

        6.    Prepayment.    Prepayment of principal and/or other amounts owed under this Note may be
made at any time without penalty. Unless otherwise agreed in writing by the Company, each payment will be applied to the extent of available funds from such payment in the following order:
(i) first to the accrued and unpaid costs and expenses under the Note or the Pledge Agreement, (ii) then to accrued but unpaid interest, and (iii) lastly to the outstanding
principal. 

        7.    Governing Law; Waiver.    The validity, construction and performance of this Note will
be governed by the internal laws of the State of California, excluding that body of law pertaining to conflicts of law. Purchaser hereby waives presentment, notice of non-payment, notice
of dishonor, protest, demand and diligence. 

        8.    Attorneys' Fees.    If suit is brought for collection of this Note, Purchaser agrees to
pay all reasonable expenses, including attorneys' fees, incurred by the holder in connection therewith whether or not such suit is prosecuted to judgment. 

        IN
WITNESS WHEREOF, Purchaser has executed this Note as of the date and year first above written. 

	
 Purchaser's Name [type or print]	 	 	
 Purchaser's Signature

[Signature page to Alibris Secured Full Recourse Promissory Note]

 
 

EXHIBIT 4    
    
    STOCK PLEDGE AGREEMENT    
    

Stock Pledge Agreement  

        This Stock Pledge Agreement (the "Pledge Agreement") is made and entered into as
of                        
            ,            between Alibris, a California corporation (the "Company"), and                        (the
"Pledgor"). Capitalized terms that are not defined herein shall have the meanings ascribed to them in the Secured Full Recourse Promissory Note of even
date herewith delivered by Pledgor to the Company (the "Note"). 

R E C I T A L S  

        A.    In
exchange for delivery of the Note to the Company, the Company has issued and sold to Pledgor                        shares of its
Common Stock (the
"Shares") pursuant to the terms and conditions of that certain Purchase Agreement. 

        B.    Pledgor
has agreed that repayment of the Note will be secured by the pledge of the Shares pursuant to this Pledge Agreement and, if required by the Company, by certain
other collateral as more fully set forth on Schedule A attached hereto (the "Additional
Collateral"). 

        NOW,
THEREFORE, the parties agree as follows: 

        1.    Creation of Security Interest.    Pursuant to the provisions of the California
Commercial Code, Pledgor hereby grants to the Company, and the Company hereby accepts, a first and present security interest in (i) the Shares, (ii) all Dividends (as defined in
Section 5 hereof), and (iii) all Additional Securities (as defined in Section 6 hereof) and (iv) such Additional Collateral listed on Schedule A hereto, if any, to
secure payment of the Note and performance of all Pledgor's obligations under this Pledge Agreement. Pledgor herewith delivers to the Company Common Stock certificate(s) No
(s).                        ,
representing all the Shares, together with one or more stock power(s) for each certificate so delivered in the form attached as an Exhibit to the Purchase Agreement, duly executed (with the date and
number of shares left blank) by Pledgor and Pledgor's spouse, if any. For purposes of this Pledge Agreement, the Shares, all Dividends, all Additional Securities and all Additional Collateral will
hereinafter be collectively referred to as the "Collateral." Pledgor agrees that the Collateral will be deposited with and held by the Escrow Holder (as
defined in the Purchase Agreement) and that, notwithstanding anything to the contrary in the Purchase Agreement, for purposes of carrying out the provisions of this Pledge Agreement, Escrow Holder
will act solely for the Company as its agent. 

        2.    Representations and Warranties and Covenants Regarding Collateral.    Pledgor hereby
represents and warrants to the Company that Pledgor has good title (both record and beneficial) to the Collateral, free and clear of all claims, pledges, security interests, liens or encumbrances of
every nature whatsoever, and that Pledgor has the right to pledge and grant the Company the security interest in the Collateral granted under this Pledge Agreement. Pledgor further agrees that, until
all sums due under the Note have been paid in full, and all of Purchaser's obligations under this Pledge Agreement have been performed, Purchaser will not, without the Company's prior written consent,
(i) sell, assign or transfer, or attempt to sell, assign or transfer, any of the Collateral, or (ii) grant or create, or attempt to grant or create, any security interest, lien, pledge,
claim or other encumbrance with respect to any of the Collateral or (iii) suffer or permit to continue upon any of the Collateral during the term of this Pledge Agreement, an attachment, levy,
execution or statutory lien. 

        3.    Rights on Default.    Upon an occurrence of an Event of Default under the Note, the
Company will have full power to sell, assign and deliver or otherwise dispose the whole or any part of the Collateral at any broker's exchange or elsewhere, at public or private sale, at the option of
the Company, in order to satisfy any part of the obligations of Pledgor now existing or hereinafter arising under the Note or under this Pledge Agreement. On any such sale, the Company or its assigns
may purchase all or any part of the Collateral. In addition, at its sole option, the Company may elect to retain all the Collateral in full satisfaction of Pledgor's obligation under the Note, in
accordance with the provisions and procedures set forth in the California Uniform Commercial Code. Pledgor agrees at the Company's request, to cooperate with the Company in connection with the
disposition of any and 

all
of the Collateral and to execute and deliver any documents which the Company shall reasonably request to permit disposition of the Collateral. 

        4.    Additional Remedies.    The rights and remedies granted to the Company herein upon an
Event of Default will be in addition to all the rights, powers and remedies of the Company under the California Uniform Commercial Code and applicable law and such rights, powers and remedies will be
exercisable
by the Company with respect to all of the Collateral. Pledgor agrees that the Company's reasonable expenses of holding the Collateral, preparing it for resale or other disposition, and selling or
otherwise disposing of the Collateral, including attorneys' fees and other legal expenses, will be deducted from the proceeds of any sale or other disposition and will be included in the amounts
Pledgor must tender to redeem the Collateral. All rights, powers and remedies of the Company will be cumulative and not alternative. Any forbearance or failure or delay by the Company in exercising
any right, power or remedy hereunder will not be deemed to be a waiver of any such right, power or remedy and any single or partial exercise of any such right, power or remedy hereunder will not
preclude the further exercise thereof. 

        5.    Dividends; Voting.    All dividends hereinafter declared on or payable with respect to
any Collateral during the term of this Pledge Agreement (excluding only ordinary cash dividends, which will be payable to Pledgor so long as no Event of Default has occurred under the Note) (the
"Dividends") will be immediately delivered to the Company to be held in pledge under this Pledge Agreement. Notwithstanding this Pledge Agreement, so
long as Pledgor owns the Shares and no Event of Default has occurred under the Note, Pledgor will be entitled to vote any shares comprising the Collateral, subject to any proxies granted by Pledgor. 

        6.    Adjustments.    In the event that during the term of this Pledge Agreement, any stock
dividend, reclassification, readjustment, stock split or other change is declared or made with respect to the Collateral, or if warrants or any other rights, options or securities are issued in
respect of the Collateral, (the "Additional Securities") then all new, substituted and/or additional shares or other securities issued by reason of such
change or by reason of the exercise of such warrants, rights, options or securities, will be (if delivered to Pledgor, immediately surrendered to the Company and) pledged to the Company to be held
under the terms of this Pledge Agreement as and in the same manner as the Collateral is held hereunder. 

        7.    Rights Under Purchase Agreement; Setoff.    Pledgor understands and agrees that the
Company's rights to repurchase the Collateral under the Purchase Agreement, if any, will continue for the periods and on the terms and conditions specified in the Purchase Agreement, whether or not
the Note has been paid in full during such period of time, and that to the extent that the Note is not paid in full during such period of time, the repurchase by the Company of the Collateral may be
made by way of cancellation of all or any part of Pledgor's indebtedness under the Note. 

        8.    Redelivery of Collateral; No Release For Partial Payment.    

        (a)   Until
all obligations of Pledgor under the Note and under this Pledge Agreement have been satisfied in full, all Collateral will continue to be held in pledge under this
Pledge Agreement. If Pledgor prepays all or a portion of the principal amount of the Note, the portion of the Shares for which such pre-payment would represent the purchase price under the
Purchase Agreement (the "Paid Shares") will be treated as independent collateral for the remaining balance of the Note for the purpose of commencing the
holding period under Rule 144(d) of the Securities and Exchange Commission with respect to other Shares purchased with the Note. 

        (b)   Upon
performance of all Pledgor's obligations under the Note and this Pledge Agreement, and subject to the terms and conditions of the Purchase Agreement, the Company
will immediately redeliver the Collateral to Pledgor and this Pledge Agreement will terminate; provided,  however, that all rights of the Company to retain
possession of the Shares pursuant to the Purchase Agreement will survive termination of this Pledge
Agreement. 

        9.    Further Assurances.    Pledgor shall, at the Company's request, execute and deliver such
further documents and take such further actions as the Company shall reasonably request to perfect and maintain the Company's security interest in the Collateral, or in any part thereof. 

        10.    Successors and Assigns.    This Pledge Agreement will inure to the benefit of the
respective heirs, personal representatives, successors and assigns of the parties hereto. 

        11.    Governing Law; Severability.    This Pledge Agreement will be governed by and construed
in accordance with the internal laws of the State of California, excluding that body of law relating to conflicts of law. Should one or more of the provisions of this Pledge Agreement be determined by
a court of law to be illegal or unenforceable, the other provisions nevertheless will remain effective and will be enforceable. 

        12.    Modification; Entire Agreement.    This Pledge Agreement will not be amended without
the written consent of both parties hereto. This Pledge Agreement, together with the Note and any the UCC-1 financing statements filed by the Company, constitute the entire agreement of
the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings related to such subject matter. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Pledge Agreement as of the date and year first above written. 

	ALIBRIS	 	 	PLEDGOR
	

By:	
 	

 	
 	

 	

 
	 	 	
	 	 	

	 	 	 	 	 	(Signature)
	
	 	 	 	 	 
	

 (Please print name)	
 	

 	

 (Please print name)
	
	 	 	 	 	 
	

 (Please print title)	
 	

 	

 

[Signature page to Alibris Stock Pledge Agreement]

 
 

SCHEDULE A    
    
    LIST OF ADDITIONAL COLLATERAL    
    

 
 

EXHIBIT 5    
    
    SECTION 83(b) ELECTION    
    

 
 

ELECTION UNDER SECTION 83(b) OF THE INTERNAL REVENUE CODE    
    

        The undersigned Taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include the excess, if any, of the
fair market value of the property described below at the time of transfer over the amount paid for such property, as compensation for services in the calculation of: (1) regular gross income;
(2) alternative minimum taxable income or (3) disqualifying disposition gross income, as the case may be. 

	1.	 	TAXPAYER'S NAME:	 
	 	 	 	

	

 	
 	

TAXPAYER'S ADDRESS:	

 
	 	 	 	

	
	 	 	 
	

 	
 	

 	

	

 	
 	

SOCIAL SECURITY NUMBER:	

 
	 	 	 	

	

2.	
 	

The property with respect to which the election is made is described as follows:            shares of Common Stock of Alibris, a California corporation (the "Company") which were transferred upon exercise of an option by Company, which is Taxpayer's employer or the corporation for whom the Taxpayer performs services.
	

3.	
 	

The date on which the shares were transferred pursuant to the exercise of the option
was                                    ,
            and this election is made for calendar year            .
	

4.	
 	

The shares received upon exercise of the option are subject to the following restrictions: The Company may repurchase all or a portion of the shares at the Taxpayer's original purchase price under certain conditions at the time of Taxpayer's
termination of employment or services.
	

5.	
 	

The fair market value of the shares (without regard to restrictions other than restrictions which by their terms will never lapse) was $            per share at the time of exercise of the
option.
	

6.	
 	

The amount paid for such shares upon exercise of the option was $            per share.
	

7.	
 	

The Taxpayer has submitted a copy of this statement to the Company.

THIS
ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE ("IRS"), AT THE OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS,  WITHIN 30 DAYS
AFTER THE DATE OF TRANSFER OF THE SHARES, AND MUST ALSO BE FILED WITH THE TAXPAYER'S INCOME TAX RETURNS FOR THE CALENDAR YEAR. THE
ELECTION CANNOT BE REVOKED WITHOUT THE CONSENT OF THE IRS. 

	Dated:	 	 	 
	 	
	 	

	 	 	 	Taxpayer's Signature

No.                      

 ALIBRIS  

 2000 EQUITY INCENTIVE PLAN  

 STOCK OPTION AGREEMENT

(STOCK BONUS GRANT)  

        This Stock Option Agreement (the "Agreement") is made and entered into as of the date of grant set forth below
(the "Date of Grant") by and between Alibris, a California corporation (the "Company"), and the
participant named below (the "Participant"). Capitalized terms not defined herein shall have the meaning ascribed to them in the Company's 2000 Equity
Incentive Plan (the "Plan"). 

	Participant:	 	    

	

Social Security Number:	
 	

    

	

Address:	
 	

    

	

Total Option Shares:	
 	

    

	

Exercise Price Per Share:	
 	

	

Date of Grant:	
 	

	

First Vesting Date:	
 	

	

Expiration Date:	
 	

Unless earlier Terminated (as defined in Section 5.6 of the Plan)
	

Type of Stock Option	
 	

 
	(Check one):	 	ý Incentive Stock Option

o Nonqualified Stock Option

        1.    Grant of Option.    The Company hereby grants to Participant an
option (this "Option") to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the
"Shares") at the Exercise Price Per Share set forth above (the "Exercise Price"), subject to all of the
terms and conditions of this Agreement and the Plan. If designated as an Incentive Stock Option above, the Option is intended to qualify as an "incentive stock option" (the
"ISO") within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code"). 

        2.    Exercise Period.    

        2.1    Exercise Period of Option.    Provided Participant continues to provide services to the Company or any
Subsidiary or Parent of the Company, the Option will be vested and exercisable on the First Vesting set forth on the first page of this Agreement (the "First Vesting
Date") as to one hundred percent (100%) of the Shares. 

        2.2    Vesting of Options.    Shares that are vested pursuant to the schedule set forth in Section 2.1 are
"Vested Shares."

        2.3    Expiration.    The Option shall expire on the Expiration Date set forth above or earlier as provided in
Section 3 below. 

        3.    Termination.    

        3.1    Termination for Any Reason Except Death, Disability or Cause.    If Participant is Terminated for any reason,
except death, Disability or for Cause, the Option, to the extent (and only to the extent) that it would have been exercisable by Participant on the Termination Date, may be exercised by Participant no
later than one (1) year after the Termination Date, but in any 

 

event
no later than the Expiration Date. Any exercise of the Option beyond ninety (90) days after the Termination Date when the Termination is for any reason except death, disability or for
Cause shall be deemed, within the meaning of Section 22(e)(3) of the Code, an NQSO. 

        3.2    Termination Because of Death or Disability.    If Participant is Terminated because of death or Disability of
Participant (or Participant dies within ninety (90) days of Termination when Termination is for any reason other than Participant's Disability or for Cause), the Option, to the extent that it
is exercisable by Participant on the Termination Date, may be exercised by Participant (or Participant's legal representative) no later than six (6) months after the Termination Date, but in
any event no later than the Expiration Date. Any exercise beyond (i) ninety (90) days after the Termination Date when the Termination is for any reason other than the Participant's death
or disability, within the meaning of Section 22(e)(3) of the Code, or for Cause; or (ii) six (6) months after the Termination Date when the termination is for Participant's death
or disability, within the meaning of Section 22(e)(3) of the Code, is deemed to be an NQSO. 

        3.3    Termination for Cause.    If Participant is Terminated for Cause, then the Option will expire on Participant's
Termination Date, or at such later time and on such conditions as are determined by the Committee. 

        3.4    No Obligation to Employ.    Nothing in the Plan or this Agreement shall confer on Participant any right to
continue in the employ of, or other relationship with, the Company or any Parent or Subsidiary of the Company, or limit in any way the right of the Company or any Parent or Subsidiary of the Company
to terminate Participant's employment or other relationship at any time, with or without Cause. 

        4.    Manner of Exercise.    

        4.1    Stock Option Exercise Agreement.    To exercise this Option, Participant (or in the case of exercise after
Participant's death or incapacity, Participant's executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the Committee from time to time (the "Exercise
Agreement"), which shall set forth, inter alia, (i) Participant's election to exercise the Option, (ii) the number
of Shares being purchased, (iii) any restrictions imposed on the Shares and (iv) any representations, warranties and agreements regarding Participant's investment intent and access to
information as may be required by the Company to comply with applicable securities laws. If someone other than Participant exercises the Option, then such person must submit documentation reasonably
acceptable to the Company verifying that such person has the legal right to exercise the Option. 

        4.2    Limitations on Exercise.    The Option may not be exercised unless such exercise is in compliance with all
applicable federal and state securities laws, as they are in effect on the date of exercise. The Option may not be exercised as to fewer than one hundred (100) Shares unless it is exercised as
to all Shares as to which the Option is then exercisable. 

        4.3    Payment.    The Exercise Agreement shall be accompanied by full payment of the Exercise Price for the shares
being purchased in cash (by check), or where permitted by law: 

	(a)
	by
cancellation of indebtedness of the Company to the Participant;

	(b)
	by
surrender of shares of the Company's Common Stock that (i) either (A) have been owned by Participant for more than six (6) months and have been paid for within
the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares); or (B) were
obtained by Participant in the open public market; and (ii) are clear of all liens, claims, encumbrances or security interests; 

2

 

	(c)
	if
so approved by the Committee, by tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate sufficient to avoid
imputation of income under Sections 483 and 1274 of the Code; provided, however, that Participants who
are not employees or directors of the Company shall not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than the Shares;

	(d)
	by
waiver of compensation due or accrued to Participant for services rendered;

	(e)
	provided
that a public market for the Company's stock exists: (i) through a "same day sale" commitment from Participant and a broker-dealer that is a member of the National
Association of Securities Dealers (an "NASD Dealer") whereby Participant irrevocably elects to exercise the Option and to sell a portion of the Shares
so purchased sufficient to pay for the total Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price directly to the Company, or
(ii) through a "margin" commitment from Participant and an NASD Dealer whereby Participant irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in
a margin account as security for a loan from the NASD Dealer in the amount of the total Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the total
Exercise Price directly to the Company; or

	(f)
	any
other form of consideration approved by the Committee; or

	(g)
	if
so approved by the Committee, by any combination of the foregoing. 

        4.4    Tax Withholding.    Prior to the issuance of the Shares upon exercise of the Option, Participant must pay or
provide for any applicable federal, state and local withholding obligations of the Company. If the Committee permits, Participant may provide for payment of withholding taxes upon exercise of the
Option by requesting that the Company retain the minimum number of Shares with a Fair Market Value equal to the minimum amount of taxes required to be withheld; but in no event will the Company
withhold Shares if such withholding would result in adverse accounting consequences to the Company. In such case, the Company shall issue the net number of Shares to the Participant by deducting the
Shares retained from the Shares issuable upon exercise. 

        4.5    Issuance of Shares.    Provided that the Exercise Agreement and payment are in form and substance satisfactory
to counsel for the Company, the Company shall issue the Shares registered in the name of Participant, Participant's authorized assignee, or Participant's legal representative, and shall deliver
certificates representing the Shares with the appropriate legends affixed thereto. 

        5.    Notice of Disqualifying Disposition of ISO
Shares.    If the Option is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or
before the later of (i) the date two (2) years after the Date of Grant, and (ii) the date one (1) year after transfer of such Shares to Participant upon exercise of the
Option, Participant shall immediately notify the Company in writing of such disposition. Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation
income recognized by Participant from the early disposition by payment in cash or out of the current wages or other compensation payable to Participant. 

        6.    Compliance with Laws and
Regulations.    The Plan and this Agreement are intended to comply with Section 25102(o) of the California Corporations Code and any
regulations relating thereto. Any provision of this Agreement which is inconsistent with Section 25102(o) or any regulations relating thereto shall, without further act or amendment by the
Company or the Board, be reformed to comply with the requirements of Section 25102(o) and any regulations relating thereto. The exercise of the Option and the issuance and transfer of Shares
shall be subject to compliance by the Company and 

3

 

Participant
with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's Common Stock may be listed at the
time of such issuance or transfer. Participant understands that the Company is under no obligation to register or qualify the Shares with the SEC, any state securities commission or any stock exchange
to effect such compliance. 

        7.    Nontransferability of Option.    The
Option may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of Participant only by Participant or in the event of
Participant's incapacity, by Participant's legal representative. The terms of the Option shall be binding upon the executors, administrators, successors and assigns of Participant. 

        9.    Company's Right of First Refusal.    Before any Vested Shares
held by Participant or any transferee of such Vested Shares may be sold or otherwise transferred (including without limitation a transfer by gift or operation of law), the Company and/or its
assignee(s) shall have an assignable right of first refusal to purchase the Vested Shares to be sold or transferred on the terms and conditions set forth in the Exercise Agreement (the
"Right of First Refusal"). The Company's Right of First Refusal will terminate when the Company's securities become publicly traded. 

        10.    Tax Consequences.    Set forth below is
a brief summary as of the Effective Date of the Plan of some of the federal and California tax consequences of exercise of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES. 

        10.1    Exercise of ISO.    If the Option qualifies as an ISO, there will be no regular federal or California income
tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as a tax preference
item for federal alternative minimum tax purposes and may subject the Participant to the alternative minimum tax in the year of exercise. 

        10.2    Exercise of Nonqualified Stock Option.    If the Option does not qualify as an ISO, there may be a regular
federal and California income tax liability upon the exercise of the Option. Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is a current or former employee of the Company, the Company may be required to
withhold from Participant's compensation or collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 

        10.3    Disposition of Shares.    The following tax consequences may apply upon disposition of the Shares. 

        (a)    Incentive Stock Options.    If the Shares are held for more than twelve (12) months after the date of
the transfer of the Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated
as long term capital gain for federal and California income tax purposes. If Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any
gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price. 

        (b)    Nonqualified Stock Options.    If the Shares are held for more than twelve (12) months after the date of
the transfer of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain. 

4

 

        (c)    Withholding.    The Company may be required to withhold from the Participant's compensation or collect from the
Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. 

        11.    Privileges of Stock
Ownership.    Participant shall not have any of the rights of a shareholder with respect to any Shares until the Shares are issued to
Participant. 

        12.    Interpretation.    Any dispute
regarding the interpretation of this Agreement shall be submitted by Participant or the Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and
binding on the Company and Participant. 

        13.    Entire Agreement.    The Plan is
incorporated herein by reference. This Agreement and the Plan constitute the entire agreement of the parties and supersede all prior undertakings and agreements with respect to the subject matter
hereof. 

        14.    Notices.    Any notice required to be
given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices. Any notice required
to be given or delivered to Participant shall be in writing and addressed to Participant at the address indicated above or to such other address as such party may designate in writing from time to
time to the Company. All notices shall be deemed to have been given or delivered upon: (i) personal delivery; (ii) three (3) days after deposit in the United States mail by
certified or registered mail (return receipt requested); (iii) one (1) business day after deposit with any return receipt express courier (prepaid); or (iv) one
(1) business day after transmission by facsimile, rapifax or telecopier. 

        15.    Successors and Assigns.    The Company
may assign any of its rights under this Agreement, including, without limitation, the Company's Right of First Refusal. This Agreement shall be binding upon and inure to the benefit of the successors
and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon Participant and Participant's heirs, executors, administrators, legal
representatives, successors and assigns. 

        16.    Governing Law.    This Agreement shall
be governed by and construed in accordance with the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within
California. If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other
provisions will remain fully effective and enforceable. 

        17.    Acceptance.    Participant hereby
acknowledges receipt of a copy of the Plan and this Agreement. Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all the terms and conditions of
the Plan and this Agreement. Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares and that Participant should consult a tax
adviser prior to such exercise or disposition. 

5

 

        IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed in triplicate by its duly authorized representative and Participant has executed this Agreement in triplicate,
effective as of the Date of Grant. 

	ALIBRIS	 	PARTICIPANT
	

By:	
 	

 	
 	

 
	 	 	
	 	

	 	 	 	 	(Signature)
	

 	
 	

 
	
	 	

	(Please print name)	 	(Please print name)
	

 	
 	

 
	
	 	 
	(Please print title)	 	 

[Signature page to Alibris Stock Option Agreement]

6

EXHIBIT A  

FORM OF

STOCK OPTION EXERCISE AGREEMENT  

No.                      

 ALIBRIS  

 2000 EQUITY INCENTIVE PLAN  

 STOCK OPTION EXERCISE AGREEMENT  

        This Stock Option Exercise Agreement (the "Exercise Agreement") is made and entered into as
of                        
    , 2    (the "Effective Date") by and between Alibris, a California corporation (the
"Company"), and the purchaser named below (the "Purchaser"). Capitalized terms not defined herein shall
have the meanings ascribed to them in the Company's 2000 Equity Incentive (the "Plan"). 

	Purchaser:	 	    

	

 	
 	

    

	

Social Security Number:	
 	

    

	

Address:	
 	

    

	

Total Number of Shares:	
 	

    

	

Exercise Price Per Share:	
 	

	

Date of Grant:	
 	

	

First Vesting Date:	
 	

	

Expiration Date:	
 	

Unless earlier Terminated (as defined in Section 5.6 of the Plan)
	

Type of Stock Option	
 	

 
	(Check one):	 	ý Incentive Stock Option

o Nonqualified Stock Option

        1.    Exercise of Option.    

        1.1    Exercise.    Pursuant to exercise of that certain option (the
"Option") granted to Purchaser under the Plan and subject to the terms and conditions of this Exercise Agreement, Purchaser hereby purchases from the
Company, and the Company hereby sells to Purchaser, the Total Number of Shares set forth above (the "Shares") of the Company's Common Stock at the
Exercise Price Per Share set forth above (the "Exercise Price"). As used in this Exercise Agreement, the term
"Shares" refers to the Shares purchased under this Exercise Agreement and includes all securities received (i) in replacement of the Shares,
(ii) as a result of stock dividends or stock splits with respect to the Shares, and (iii) all securities received in replacement of the Shares in a merger, recapitalization,
reorganization or similar corporate transaction. 

        1.2    Title to Shares.    The exact spelling of the name(s) under which Purchaser will take title to the Shares is: 

Purchaser
desires to take title to the Shares as follows: 

o
Individual, as separate property 

o Husband and wife, as community property 

 

o Joint Tenants 

o Other; please specify:                                           
                       
 

        1.3    Payment.    Purchaser hereby delivers payment of the Exercise Price in the manner permitted in the Stock Option
Agreement between the Company and the Purchased dated as of          , 2      (the "Stock Option Agreement") as
follows (check and
complete as appropriate): 

o
in cash (by check) in the amount of $                        , receipt of which is acknowledged by the Company; 

o by cancellation of indebtedness of the Company owed to Purchaser in the amount of
$                        ; 

o by delivery of                        fully-paid, nonassessable and vested shares of the
Common Stock of the Company owned by Purchaser for at
least six (6) months prior to the date hereof which have been paid for within the meaning of SEC Rule 144, (if purchased by use of a promissory note, such note has been fully paid with
respect to such vested shares), or obtained by Purchaser in the open public market, and owned free and clear of all liens, claims, encumbrances or security interests, valued at the current Fair Market
Value of $                        per share; 

o if so approved by the Committee, by tender of a Full Recourse Promissory Note in the principal amount of
$                        , having such terms as may be
approved by the Committee and bearing interest at a rate sufficient to avoid imputation of income under Sections 483 and 1274 of the Code and secured by a Pledge Agreement herewith; provided, however,
that Purchasers who are not employees or directors of the Company shall not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than the
Shares; 

o by the waiver hereby of compensation due or accrued for services rendered in the amount of
$                        . 

        2.    Delivery.    

        2.1    Deliveries by Purchaser.    Purchaser hereby delivers to the Company (i) this Exercise Agreement,
(ii) two (2) copies of a blank Stock Power and Assignment Separate from Stock Certificate in the form of Exhibit 1 attached hereto
(the "Stock Powers"), both executed by Purchaser (and Purchaser's spouse, if any), (iii) if Purchaser is married, a Consent of Spouse in the form
of Exhibit 2 attached hereto (the "Spouse Consent") executed by Purchaser's spouse, and
(iv) the Exercise Price and payment or other provision for any applicable tax obligations in the form of a check, a copy of which is attached hereto as  Exhibit 3. 

        2.2    Deliveries by the Company.    Upon its receipt of the Exercise Price, payment or other provision for any
applicable tax obligations and all the documents to be executed and delivered by Purchaser to the Company under Section 2.1, the Company will issue a duly executed stock certificate evidencing
the Shares in the name of Purchaser to be placed in escrow as provided in Section 10 to secure payment of Purchaser's obligation to the Company under until expiration or termination of the
Company's Right of First Refusal described in Sections 8 and 9. 

        3.    Representations and Warranties of Purchaser.    Purchaser
represents and warrants to the Company that: 

        3.1    Agrees to Terms of the Plan.    Purchaser has received a copy of the Plan and the Stock Option Agreement, has
read and understands the terms of the Plan, the Stock Option Agreement and this Exercise Agreement, and agrees to be bound by their terms and conditions. Purchaser acknowledges that there may be
adverse tax consequences upon exercise of the Option or 

2

 

disposition
of the Shares, and that Purchaser should consult a tax adviser prior to such exercise or disposition. 

        3.2    Purchase for Own Account for Investment.    Purchaser is purchasing the Shares for Purchaser's own account for
investment purposes only and not with a view to, or for sale in connection with, a distribution of the Shares within the meaning of the Securities Act. Purchaser has no present intention of selling or
otherwise disposing of all or any portion of the Shares and no one other than Purchaser has any beneficial ownership of any of the Shares. 

        3.3    Access to Information.    Purchaser has had access to all information regarding the Company and its present and
prospective business, assets, liabilities and financial condition that Purchaser reasonably considers important in making the decision to purchase the Shares, and Purchaser has had ample opportunity
to ask questions of the Company's representatives concerning such matters and this investment. 

        3.4    Understanding of Risks.    Purchaser is fully aware of: (i) the highly speculative nature of the
investment in the Shares; (ii) the financial hazards involved; (iii) the lack of liquidity of the Shares and the restrictions on transferability of the Shares
(e.g., that Purchaser may not be able to sell or dispose of the Shares or use them as collateral for loans); (iv) the qualifications and
backgrounds of the management of the Company; and (v) the tax consequences of investment in the Shares. Purchaser is capable of evaluating the merits and risks of this investment, has the
ability to protect Purchaser's own interests in this transaction and is financially capable of bearing a total loss of this investment. 

        3.5    No General Solicitation.    At no time was Purchaser presented with or solicited by any publicly issued or
circulated newspaper, mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and purchase of the Shares. 

        4.    Compliance with Securities Laws.    

        4.1    Compliance with U.S. Federal Securities Laws.    Purchaser understands and acknowledges that the Shares have
not been registered with the SEC under the Securities Act and that, notwithstanding any other provision of the Stock Option Agreement to the contrary, the exercise of any rights to purchase any Shares
is expressly conditioned upon compliance with the Securities Act and all applicable state
securities laws. Purchaser agrees to cooperate with the Company to ensure compliance with such laws. The Shares are being issued under the Securities Act pursuant to the exemption provided by SEC
Rule 701. 

        4.2    Compliance with California Securities Laws.    THE PLAN, THE STOCK OPTION AGREEMENT, AND THIS EXERCISE
AGREEMENT ARE INTENDED TO COMPLY WITH SECTION 25102(o) OF THE CALIFORNIA CORPORATIONS CODE AND ANY RULES (INCLUDING COMMISSIONER RULES, IF APPLICABLE) OR REGULATIONS PROMULGATED THEREUNDER BY THE
CALIFORNIA DEPARTMENT OF CORPORATIONS (THE "REGULATIONS"). ANY PROVISION OF THIS EXERCISE AGREEMENT WHICH IS INCONSISTENT WITH SECTION 25102(o) SHALL,
WITHOUT FURTHER ACT OR AMENDMENT BY THE COMPANY OR THE BOARD, BE REFORMED TO COMPLY WITH THE REQUIREMENTS OF SECTION 25102(o). THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF THIS EXERCISE
AGREEMENT, IF NOT YET QUALIFIED WITH THE CALIFORNIA COMMISSIONER OF CORPORATIONS AND NOT EXEMPT FROM SUCH QUALIFICATION, IS SUBJECT TO SUCH QUALIFICATION, AND THE ISSUANCE OF SUCH SECURITIES, AND THE
RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS THE SALE IS EXEMPT. THE RIGHTS OF THE 

3

 

PARTIES
TO THIS EXERCISE AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED OR AN EXEMPTION BEING AVAILABLE. 

        5.    Restricted Securities.    

        5.1    No Transfer Unless Registered or Exempt.    Purchaser understands that Purchaser may not transfer any Shares
unless such Shares are registered under the Securities Act or qualified under applicable state securities laws or unless, in the opinion of counsel to the Company, exemptions from such registration
and qualification requirements are available. Purchaser understands that only the Company may file a registration statement with the SEC and that the Company is under no obligation to do so
with respect to the Shares. Purchaser has also been advised that exemptions from registration and qualification may not be available or may not permit Purchaser to transfer all or any of the Shares in
the amounts or at the times proposed by Purchaser. 

        5.2    SEC Rule 144.    In addition, Purchaser has been advised that SEC Rule 144 promulgated under the
Securities Act, which permits certain limited sales of unregistered securities, is not presently available with respect to the Shares and, in any event, requires that the Shares be held for a minimum
of one (1) year, and in certain cases two (2) years, after they have been purchased and paid for (within the meaning of Rule 144).
Purchaser understands and acknowledges, if the Shares paid for with a promissory note, that the Shares may not be deemed to be fully "paid for" within the meaning of Rule 144 unless certain
conditions are met and that, accordingly, the Rule 144 holding period of such Shares may not begin to run until such Shares are fully paid for within the meaning of Rule 144.
Purchaser understands that Rule 144 may indefinitely restrict transfer of the Shares so long as Purchaser remains an "affiliate" of the Company or if "current public information" about the
Company (as defined in Rule 144) is not publicly available. 

        5.3    SEC Rule 701.    The Shares are issued pursuant to SEC Rule 701 promulgated under the Securities
Act and may become freely tradeable by non-affiliates (under limited conditions regarding the method of sale) ninety (90) days after the first sale of Common Stock of the Company to
the general public pursuant to a registration statement filed with and declared effective by the SEC, subject to the lengthier market standoff agreement contained in Section 7 of this Exercise
Agreement or any other agreement entered into by Purchaser. Affiliates must comply with the provisions (other than the holding period requirements) of Rule 144. 

        6.    Restrictions on Transfers.    

        6.1    Disposition of Shares.    Purchaser hereby agrees that Purchaser shall make no disposition of the Shares (other
than as permitted by this Exercise Agreement) unless and until: 

        (a)   Purchaser
shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed disposition; 

        (b)   Purchaser
shall have complied with all requirements of this Exercise Agreement applicable to the disposition of the Shares; 

        (c)   Purchaser
shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that (i) the proposed
disposition does not require registration of the Shares under the Securities Act or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities
Act or of any exemption from registration available under the Securities Act (including Rule 144) have been taken; and 

        (d)   Purchaser
shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed disposition will not result in
the contravention of any transfer restrictions applicable to the Shares pursuant to the provisions of the Regulations referred to in Section 4.2 hereof. 

4

 

        6.2    Restriction on Transfer.    Purchaser shall not transfer, assign, grant a lien or security interest in, pledge,
hypothecate, encumber or otherwise dispose of any of the Shares that are subject to the Company's Right of First Refusal described below, except as permitted by this Exercise Agreement. 

        6.3    Transferee Obligations.    Each person (other than the Company) to whom the Shares are transferred by means of
one of the permitted transfers specified in this Exercise Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by
the provisions of this Exercise Agreement and that the transferred Shares are subject to (i) the Company's Right of First Refusal granted hereunder and (ii) the market
stand-off provisions of Section 7 hereof, to the same extent such Shares would be so subject if retained by the Purchaser. 

        7.    Market Standoff Agreement.    Purchaser agrees in connection
with any registration of the Company's securities that, upon the request of the Company or the underwriters managing any public offering of the Company's securities, Purchaser will not sell or
otherwise dispose of any Shares without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days)
after the effective date of such registration requested by such managing underwriters and subject to all restrictions as the Company or the underwriters may specify. Purchaser further agrees to enter
into any agreement reasonably required by the underwriters to implement the foregoing. 

        8.    Company's Right of First Refusal.    Before any Vested Shares
held by Purchaser or any transferee of such Vested Shares (either sometimes referred to herein as the "Holder") may be sold or otherwise transferred
(including, without limitation, a transfer by gift or operation of law), the Company and/or its assignee(s) will have a right of first refusal to purchase the Vested Shares to be sold or transferred
(the "Offered Shares") on the terms and conditions set forth in this Section (the "Right of First
Refusal"). 

        8.1    Notice of Proposed Transfer.    The Holder of the Offered Shares will deliver to the Company a written notice
(the "Notice") stating: (i) the Holder's bona fide intention to sell or otherwise transfer the Offered Shares; (ii) the name and address
of each proposed purchaser or other transferee (the "Proposed Transferee"); (iii) the number of Offered Shares to be transferred to each Proposed
Transferee; (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Offered Shares (the "Offered
Price"); and (v) that the Holder acknowledges this Notice is an offer to sell the Offered Shares to the Company and/or its assignee(s) pursuant to the Company's Right of
First Refusal at the Offered Price as provided for in this Exercise Agreement. 

        8.2    Exercise of Right of First Refusal.    At any time within thirty (30) days after the date of the Notice,
the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all (or, with the consent of the Holder, less than all) the Offered Shares proposed to be transferred
to any one or more of the Proposed Transferees named in the Notice, at the purchase price, determined as specified below. 

        8.3    Purchase Price.    The purchase price for the Offered Shares purchased under this Section will be the Offered
Price, provided that if the Offered Price consists of no legal consideration (as, for example, in the case of a transfer by gift) the purchase price will be the fair market value of the Offered Shares
as determined in good faith by the Company's Board of Directors. If the Offered Price includes consideration other than cash, then the value of the non-cash consideration, as determined in
good faith by the Company's Board of Directors, will conclusively be deemed to be the cash equivalent value of such non-cash consideration. 

5

 

        8.4    Payment.    Payment of the purchase price for the Offered Shares will be payable, at the option of the Company
and/or its assignee(s) (as applicable), by check or by cancellation of all or a portion of any outstanding indebtedness owed by the Holder to the Company (or to such assignee, in the case of a
purchase of Offered Shares by such assignee) or by any combination thereof. The purchase price will be paid without interest within sixty (60) days after the Company's receipt of the Notice,
or, at the option of the Company and/or its assignee(s), in the manner and at the time(s) set forth in the Notice. 

        8.5    Holder's Right to Transfer.    If all of the Offered Shares proposed in the Notice to be transferred to a given
Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Offered Shares to each Proposed Transferee
at the Offered Price or at a higher price, provided that (i) such sale or other transfer is consummated within one hundred twenty
(120) days after the date of the Notice, (ii) any such sale or other transfer is effected in compliance with all applicable securities laws, and (iii) each Proposed Transferee
agrees in writing that the provisions of this Section will continue to apply to the Offered Shares in the hands of such Proposed Transferee. If the Offered Shares described in the Notice are not
transferred to each Proposed Transferee within such one hundred twenty (120) day period, then a new Notice must be given to the Company pursuant to which the Company will again be offered the
Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred. 

        8.6    Exempt Transfers.    Notwithstanding anything to the contrary in this Section, the following transfers of
Vested Shares will be exempt from the Right of First Refusal: (i) the transfer of any or all of the Vested Shares during Purchaser's lifetime by gift or on Purchaser's death by will or
intestacy to Purchaser's "Immediate Family" (as defined below) or to a trust for the benefit of Purchaser or Purchaser's Immediate Family, provided that each transferee or other recipient agrees in a
writing satisfactory to the Company that the provisions of this Section will continue to apply to the transferred Vested Shares in the hands of such transferee or other recipient; (ii) any
transfer of Vested Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations (except that the Right of First Refusal will
continue to apply thereafter to such Vested Shares, in which case the surviving corporation of such merger or consolidation shall succeed to the rights of the Company under this Section unless the
agreement of merger or consolidation expressly otherwise provides); or (iii) any transfer of Vested Shares pursuant to the winding up and dissolution of the Company. As used herein, the term
"Immediate Family" will mean Purchaser's spouse, the lineal descendant or antecedent, father, mother, brother or sister, child, adopted child,
grandchild or adopted grandchild of the Purchaser or the Purchaser's spouse, or the spouse of any child, adopted child,
grandchild or adopted grandchild of Purchaser or the Purchaser's spouse or Spousal Equivalent, as defined herein. As used herein, a person is deemed to be a "Spousal
Equivalent" provided the following circumstances are true: (i) irrespective of whether or not the Participant and the Spousal Equivalent are the same sex, they are the
sole spousal equivalent of the other for the last twelve (12) months, (ii) they intend to remain so indefinitely, (iii) neither are married to anyone else, (iv) both are at
least 18 years of age and mentally competent to consent to contract, (v) they are not related by blood to a degree of closeness that which would prohibit legal marriage in the state in
which they legally reside, (vi) they are jointly responsible for each other's common welfare and financial obligations, and (vii) they reside together in the same residence for the last
twelve (12) months and intend to do so indefinitely. 

        8.7    Termination of Right of First Refusal.    The Right of First Refusal will terminate as to all Shares on the
effective date of the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the SEC under the 

6

 

Securities
Act (other than a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an employee incentive or benefit plan). 

        8.8    Encumbrances on Vested Shares.    Purchaser may grant a lien or security interest in, or pledge, hypothecate or
encumber Vested Shares only if each party to whom such lien or security interest is granted, or to whom such pledge, hypothecation or other encumbrance is made, agrees in a writing satisfactory to the
Company that: (i) such lien, security interest, pledge, hypothecation or encumbrance will not apply to such Vested Shares after they are acquired by the Company and/or its assignees under this
Section; and (ii) the provisions of this Section will continue to apply to such Vested Shares in the hands of such party and any transferee of such party. 

        9.    Rights as a Shareholder.    Subject to the terms and conditions
of this Exercise Agreement, Purchaser will have all of the rights of a shareholder of the Company with respect to the Shares from and after the date that Shares are issued to Purchaser until such time
as Purchaser disposes of the Shares or the Company and/or its assignee(s) exercise(s) the Right of First Refusal. Upon an exercise of the Right of First Refusal, Purchaser will have no further rights
as a holder of the Shares so purchased upon such exercise, other than the right to receive payment for the Shares so purchased in accordance with the provisions of this Exercise Agreement, and
Purchaser will promptly surrender the stock certificate(s) evidencing the Shares so purchased to the Company for transfer or cancellation. 

        10.    Escrow.    As security for Purchaser's faithful performance of
this Exercise Agreement, Purchaser agrees, immediately upon receipt of the stock certificate(s) evidencing the Shares, to deliver such certificate(s), together with the Stock Powers executed by
Purchaser and by Purchaser's spouse, if any (with the date and number of Shares left blank), to the Secretary of the Company or other designee of the Company (the "Escrow
Holder"), who is hereby appointed to hold such certificate(s) and Stock Powers in escrow and to take all such actions and to effectuate all such transfers and/or releases of
such Shares as are in accordance with the terms of this Exercise Agreement. Purchaser and the Company agree that Escrow Holder will not be liable to any party to this Exercise Agreement (or to
any other party) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Exercise Agreement. Escrow
Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court with respect to the
transactions contemplated by this Exercise Agreement. The Shares will be released from escrow upon termination of the Right of First Refusal. 

        11.    Restrictive Legends and Stop-Transfer Orders.    

        11.1    Legends.    Purchaser understands and agrees that the Company will place the legends set forth below or
similar legends on any stock certificate(s) evidencing the Shares, together with any other legends that may be required by state or U.S. Federal securities laws, the Company's Articles of
Incorporation or Bylaws, any other agreement between Purchaser and the Company or any agreement between Purchaser and any third party: 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF
THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY  

7

 

 PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER, INCLUDING RIGHT OF FIRST REFUSAL OPTIONS HELD BY THE ISSUER AND/OR
ITS ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION EXERCISE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.
SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS INCLUDING THE RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER
OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT
THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE INITIAL PUBLIC OFFERING OF THE COMMON STOCK OF THE
ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.

        11.2    Stop-Transfer Instructions.    Purchaser agrees that, to ensure compliance with the restrictions
imposed by this Exercise Agreement, the Company may issue appropriate "stop-transfer" instructions to its transfer agent, if any, and if the Company transfers its own securities, it may
make appropriate notations to the same effect in its own records. 

        11.3    Refusal to Transfer.    The Company will not be required (i) to transfer on its books any Shares that
have been sold or otherwise transferred in violation of any of the provisions of this Exercise Agreement or (ii) to treat as owner of such Shares, or to accord the right to vote or pay
dividends to any purchaser or other transferee to whom such Shares have been so transferred. 

        12.    Tax Consequences.    PURCHASER UNDERSTANDS THAT PURCHASER MAY
SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF PURCHASER'S PURCHASE OR DISPOSITION OF THE SHARES. PURCHASER REPRESENTS: (i) THAT PURCHASER HAS CONSULTED WITH ANY TAX ADVISER THAT PURCHASER
DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND (ii) THAT PURCHASER IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. Set forth below is a brief summary as of
the date the Plan was adopted by the Board of some of the U.S. Federal and California tax consequences of exercise of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PURCHASER SHOULD CONSULT HIS OR HER OWN TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 

        12.1    Exercise of Incentive Stock Option.    If the Option qualifies as an ISO, there will be no regular U.S.
Federal income tax liability or California income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price will be treated as a tax preference item for U.S. Federal alternative minimum tax purposes and may subject Purchaser to the alternative minimum tax in the year of exercise. 

        12.2    Exercise of Nonqualified Stock Option.    If the Option does not qualify as an ISO, there may be a regular
U.S. Federal income tax liability and a California income tax liability upon the exercise of the Option. Purchaser will be treated as having received compensation income (taxable at ordinary income
tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on 

8

 

the
date of exercise over the Exercise Price. If Purchaser is or was an employee of the Company, the Company may be required to withhold from Purchaser's compensation or collect from Purchaser and pay
to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 

        12.3    Disposition of Shares.    The following tax consequences may apply upon disposition of the Shares. 

        (a)    Incentive Stock Options.    If the Shares are held for more than twelve (12) months after the date of
the transfer of the Shares pursuant to the exercise of an ISO and are disposed of more than two (2) years after the Date of Grant, any gain realized on disposition of the Shares will be treated
as long term capital gain for federal and California income tax purposes. If Shares purchased under an ISO are disposed of within the applicable one (1) year or two (2) year period, any
gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price. 

        (b)    Nonqualified Stock Options.    If the Shares are held for more than twelve (12) months after the date of
the transfer of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain. 

        (c)    Withholding.    The Company may be required to withhold from the Purchaser's compensation or collect from the
Purchaser and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. 

        13.    Compliance with Laws and Regulations.    The issuance and
transfer of the Shares will be subject to and conditioned upon compliance by the Company and Purchaser with all applicable state and U.S. Federal laws and regulations and with all applicable
requirements of any stock exchange or automated quotation system on which the Company's Common Stock may be listed or quoted at the time of such issuance or transfer. 

        14.    Successors and Assigns.    The Company may assign any of its
rights under this Exercise Agreement, including, but not limited to, its rights to purchase Shares under the Right of First Refusal. This Exercise Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the
Company. Subject to the restrictions on transfer herein set forth, this Exercise Agreement will be binding upon Purchaser and Purchaser's heirs, executors, administrators, legal representatives,
successors and assigns. 

        15.    Governing Law; Severability.    This Exercise Agreement shall
be governed by and construed in accordance with the internal laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed
entirely within California. If any provision of this Exercise Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent
possible and the other provisions will remain fully effective and enforceable. 

        16.    Notices.    Any notice required to be given or delivered to the
Company shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices. Any notice required to be given or delivered to Purchaser shall be in writing
and addressed to Purchaser at the address indicated above or to such other address as Purchaser may designate in writing from time to time to the Company. All notices shall be deemed effectively given
upon personal delivery, (i) three (3) days after deposit in the United States mail by certified or registered mail (return receipt requested), (ii) one (1) business day
after its deposit with any return receipt express courier (prepaid), or (iii) one (1) business day after transmission by rapifax or telecopier. 

9

 

        17.    Further Instruments.    The parties agree to execute such
further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Exercise Agreement. 

        18.    Headings.    The captions and headings of this Exercise
Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Exercise Agreement. All references herein to Sections will refer to Sections of this
Exercise Agreement. 

        19.    Entire Agreement.    The Plan, the Stock Option Agreement and
this Exercise Agreement, together with all Exhibits thereto, constitute the entire agreement and understanding of the parties with respect to the subject matter of this Exercise Agreement, and
supersede all prior understandings and agreements, whether oral or written, between the parties hereto with respect to the specific subject matter hereof. 

[THE
REST OF THIS PAGE IS INTENTIONALLY BLANK.] 

10

 

        IN
WITNESS WHEREOF, the Company has caused this Exercise Agreement to be executed in triplicate by its duly authorized representative and Purchaser has executed this Exercise Agreement
in triplicate as of the Effective Date, indicated above. 

	ALIBRIS	 	PURCHASER
	

By:	
 	

 	
 	

 
	 	 	
	 	

	 	 	 	 	(Signature)
	

 	
 	

 
	
	 	

	(Please print name)	 	(Please print name)
	

 	
 	

 
	
	 	 
	(Please print title)	 	 

[Signature page to Alibris Stock Option Exercise Agreement]

11

 
 

LIST OF EXHIBITS    
    

	Exhibit 1:	 	Stock Power and Assignment Separate from Stock Certificate
	

Exhibit 2:	
 	

Spouse Consent

 
 

EXHIBIT 1    
    
    STOCK POWER AND ASSIGNMENT
  SEPARATE FROM STOCK CERTIFICATE    
    

 
 

Stock Power and Assignment    
    Separate from Stock Certificate    
    

        FOR VALUE RECEIVED and pursuant to that certain Stock Option Exercise Agreement No.              dated as of
                              ,
            , (the "Agreement"), the undersigned hereby sells, assigns and
transfers unto
                                        ,
                 shares of the Common Stock of Alibris, a California corporation (the
"Company"), standing in the undersigned's name on the books of the Company represented by Certificate No(s).
             delivered herewith, and does hereby irrevocably constitute and appoint the Secretary of the Company as the undersigned's
attorney-in-fact, with full power of substitution, to transfer said stock on the books of the Company. THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY
EXHIBITS THERETO. 

	

Dated:                         ,         	
 	

 
	

 	
 	
PURCHASER
	

 	
 	

	 	 	(Signature)
	

 	
 	

	 	 	(Please Print Name)
	

 	
 	

	 	 	(Spouse's Signature, if any)
	

 	
 	

	 	 	(Please Print Spouse's Name)

        Instructions to Purchaser:    Please do not fill in any blanks other than the signature line. The
purpose of this Stock Power and Assignment is to enable the Company to acquire the shares pursuant to its "Right of First Refusal" set forth in the Exercise Agreement without requiring additional
signatures on the part of the Purchaser or Purchaser's Spouse, if any. 

 
 

EXHIBIT 2    
    
    SPOUSE CONSENT    
    

 
 

Spouse Consent    
    

        The undersigned spouse of
                                        
(the "Purchaser") has read, understands,
and hereby approves the Stock Option Exercise Agreement between Purchaser and the Company (the "Agreement"). In consideration of the Company's granting
my spouse the right to purchase the Shares as set forth in the Agreement, the undersigned hereby agrees to be irrevocably bound by the Agreement and further agrees that any community property interest
I may have in the Shares shall similarly be bound by the Agreement. The undersigned hereby appoints Purchaser as my attorney-in-fact with respect to any amendment or exercise
of any rights under the Agreement. 

	

Date:	

	
 	

 	

 
	

 	

 	
 	

 	

	 	 	 	 	Print Name of Purchaser's Spouse
	

 	

 	
 	

 	

	 	 	 	 	Signature of Purchaser's Spouse
	

 	

 	
 	

Address:	

 
	 	 	 	 	

	

 	

 	
 	

 	

	

 	

 	
 	

 	

QuickLinks

Exhibit 10.05

ALIBRIS 2000 EQUITY INCENTIVE PLAN Adopted on January 19, 2000 As Amended on March 9, 2000 As Amended on June 25, 2001 As Amended on April 11, 2002

ALIBRIS 2000 EQUITY INCENTIVE PLAN IMMEDIATELY EXERCISABLE STOCK OPTION AGREEMENT

EXHIBIT A FORM OF IMMEDIATELY EXERCISABLE STOCK OPTION EXERCISE AGREEMENT

ALIBRIS 2000 EQUITY INCENTIVE PLAN IMMEDIATELY EXERCISABLE STOCK OPTION EXERCISE AGREEMENT

LIST OF EXHIBITS

EXHIBIT 1 STOCK POWER AND ASSIGNMENT SEPARATE FROM STOCK CERTIFICATE

EXHIBIT 2 SPOUSE CONSENT

EXHIBIT 3 COPY OF PURCHASER'S CHECK AND/OR SECURED FULL RECOURSE PROMISSORY NOTE

EXHIBIT 4 STOCK PLEDGE AGREEMENT

SCHEDULE A LIST OF ADDITIONAL COLLATERAL

EXHIBIT 5 SECTION 83(b) ELECTION

ELECTION UNDER SECTION 83(b) OF THE INTERNAL REVENUE CODE

LIST OF EXHIBITS

EXHIBIT 1 STOCK POWER AND ASSIGNMENT SEPARATE FROM STOCK CERTIFICATE

Stock Power and Assignment Separate from Stock Certificate

EXHIBIT 2 SPOUSE CONSENT

Spouse Consent

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