Carta de exercício das opções de compra de ações

1. Concessão de opção. A Companhia concede ao Participante uma opção (esta 147 Opção 148) para comprar o número total de ações ordinárias Classe A, 0,00005 valor nominal da Companhia, conforme previsto acima como Total de Ações de Opções (as 147 Ações 148) no Exercício Preço por ação estabelecido acima (o 147 Preço Exercício 148), sujeito a todos os termos e condições deste Contrato e do Plano. Se designado como opção de opção de compra de ações acima, a Opção destina-se a ser qualificada como uma opção de compra de incentivo148 (a 147 ISO 148) na acepção da Seção 422 do Internal Revenue Code de 1986, conforme alterada (147 Código 148). 2.1 Período de exercício da opção. Desde que o Participante continue a prestar serviços à Companhia ou a qualquer Controladora ou Subsidiária da Companhia, as Ações que possam ser emitidas após o exercício desta Opção serão adquiridas e exercíveis em relação a 25 das Ações no primeiro aniversário da Data de Início de Vesting estabelecida Na primeira página deste Contrato e 148º mensalmente, até que as Ações sejam investidas em relação a 100 das Ações. Se a aplicação da porcentagem de cobrança causar uma parcela fracionada, essa parcela será arredondada para a parcela total mais próxima por cada mês, exceto no último mês desse período de aquisição, no final do qual no último mês essa Opção se tornará investida pelo total Restante das Ações. Não obstante qualquer disposição do Plano ou deste Contrato em contrário, as Opções para Ações Não Realizadas (conforme definido na Seção 2.2 deste Contrato) não serão exercíveis após a Data de Rescisão do Participante. 2.2 Vesting das opções. As ações que são adquiridas de acordo com o cronograma estabelecido na Seção 2.1 são 147 Ações Vinculadas 148. As ações que não estão de acordo com o cronograma estabelecido na Seção 2.1 são 147 Ações Não Adotadas 148. (a) 147 Causa 148 significa Término por causa de: (I) qualquer violação material e intencional por parte do Participante de qualquer lei ou regulamento aplicável ao negócio da Companhia, convicção pelo Participante146 ou acusação de culpa por um crime ou crime envolvendo torpeza moral ou qualquer perpetração intencional pelo Participante de um comum Fraude de lei (ii) comissão do participante de um ato de desonestidade pessoal que envolve lucro pessoal em conexão com a Companhia ou qualquer outra entidade que tenha uma relação comercial com a Companhia (iii) qualquer violação material pelo Participante de qualquer disposição de qualquer acordo ou entendimento entre A Companhia e o Participante sobre os termos do serviço do Participante146 como funcionário, diretor, diretor ou consultor da Companhia, incluindo, sem limitação, t O incumprimento ou a recusa do Participante, deliberado e continuado, para desempenhar as funções materiais exigidas do Participante como empregado, diretor, diretor ou consultor da Companhia, exceto como resultado de uma Incapacidade ou violação de qualquer atribuição e confidencialidade da invenção aplicável. Acordo ou acordo similar entre a Companhia e o Participante (iv) Participantes146s desconsideram as políticas da Companhia de forma a causar perda, danos ou prejuízos à propriedade, reputação ou funcionários da Companhia ou (v) qualquer outra falta de conduta pelo Participante que seja Materialmente prejudicial à condição financeira ou à reputação comercial de, ou seja de alguma forma materialmente prejudicial para a Companhia. Nenhum ato ou falha no ato pelo Participante será considerado válido148 se feito ou omitido pelo Participante de boa fé com crença razoável de que tal ação ou omissão foi no melhor interesse da Companhia. Todas as referências à Companhia nesta definição de 147Casão148 devem incluir entidades-mãe, subsidiárias, afiliadas e sucessoras da Companhia. 2.4 Vencimento. A Opção caduca na Data de Vencimento estabelecida acima ou mais cedo conforme previsto na Seção 3 abaixo ou de acordo com a Seção 5.6 do Plano. 3.1 Rescisão por qualquer razão, exceto morte, incapacidade ou causa. Se o Participante for encerrado por qualquer motivo, exceto a morte, a Incapacidade ou a Causa, a Opção, na medida (e somente na medida) que teria sido exercível pelo Participante na Data de Rescisão, poderá ser exercida pelo Participante o mais tardar em Três meses após a data de rescisão, mas, em qualquer caso, o mais tardar na data de expiração. 3.2 Rescisão devido à morte ou deficiência. Se o Participante for encerrado por morte ou deficiência do Participante (ou o Participante morre no prazo de três meses após a Rescisão quando a Rescisão for por qualquer motivo que não seja a Incapacidade do Participante146 ou a Causa), a Opção, na medida em que seja exercível pelo Participante na Rescisão Data, pode ser exercida pelo Participante (ou representante legal do Participante146) até 12 meses após a Data de Rescisão, mas, em qualquer caso, o mais tardar na Data de Vencimento. Qualquer exercício além de (i) três meses após a Data de Rescisão quando a Rescisão for por qualquer motivo que não seja a morte ou invalidez do participante146, na acepção da Seção 22 (e) (3) do Código ou (ii) 12 meses após a A data de rescisão quando o término é para deficiência do Participante146, na acepção da Seção 22 (e) (3) do Código, é considerada uma NQSO. 3.3 Término por causa. Se o Participante for encerrado por Causa, as Opções do Participante146s expirarão imediatamente após tal Término. 3.4 Nenhuma obrigação de empregar. Nada no Plano ou neste Contrato conferirá ao Participante qualquer direito de continuar empregando ou outra relação com a Companhia ou qualquer Controladora ou Subsidiária da Companhia, ou limitar de qualquer forma o direito da Companhia ou de qualquer Parente ou Subsidiária da Companhia para rescindir o emprego ou outra relação do Participante em qualquer momento, com ou sem Causa. 4. Modo de Exercício. 4.1 Contrato de exercício da opção de compra de ações. Para exercer esta Opção, Participante (ou, no caso de exercício após a morte ou a incapacidade do participante146, o executor, administrador, herdeiro ou legado da Participante146, conforme o caso) deve entregar à Companhia um contrato de exercício de opção de compra de ações no formulário em anexo Como Anexo A. Ou sob qualquer outra forma que possa ser aprovada pelo Comitê de tempos em tempos (o 147 Convênio de Exercício 148), que deverá estabelecer, entre outros. (I) Eleição do Participante14 para exercer a Opção, (ii) o número de Ações que estão sendo compradas, (iii) quaisquer restrições impostas às Ações e (iv) quaisquer representações, garantias e acordos relativos à intenção de investimento do Participante146 e acesso às informações que possam ser Exigido pela Companhia para cumprir as leis de valores mobiliários aplicáveis. Se outra pessoa que não o Participante exerça a Opção, essa pessoa deve apresentar a documentação razoavelmente aceitável para a Companhia, verificando que essa pessoa tem o direito legal de exercer a Opção e essa pessoa estará sujeita a todas as restrições aqui contidas como se essa pessoa fosse O Participante. 4.2 Limitações no exercício. A Opção pode não ser exercida a menos que tal exercício esteja em conformidade com todas as leis de títulos e valores federais aplicáveis, conforme estão vigentes na data do exercício. A Opção não pode ser exercida em relação a menos de 100 Ações, a menos que seja exercido quanto a todas as Ações em relação às quais a Opção é então exercível. 4.3 Pagamento. O Acordo de Exercício deve ser acompanhado do pagamento integral do Preço de Exercício pelas ações que estão sendo compradas em dinheiro (por cheque), ou quando permitido por lei: (a) por cancelamento de endividamento da Companhia ao Participante (b) por renúncia de Ações ordinárias da Classe A da Companhia146s que (i) ou (A) foram pagas na acepção da Regra 144 da SEC (e, se tais ações fossem compradas da Companhia por uso de uma nota promissória, essa nota foi totalmente Pagos com respeito a tais ações) ou (B) foram obtidos pelo Participante no mercado público aberto e (ii) estão livres de todos os ônus, créditos, encargos ou títulos (c) por renúncia à remuneração devida ou acumulada ao Participante por serviços Prestado (d) desde que exista um mercado público para o estoque da Companhia146: (i) através de um compromisso de venda do participante no momento do participante e um corretor-negociante designado pela Companhia que é membro da Autoridade Reguladora do Setor Financeiro (um 147 revendedor 148) Pelo qual Particip Formiga irrevogavelmente optar por exercer a Opção e vender uma parte das Ações assim compradas suficientes para pagar o Preço de Exercício total e pelo qual o Revendedor compromete-se irrevogavelmente após o recebimento de tais Ações para encaminhar o Preço de Exercício total diretamente para a Companhia, ou (ii) ) Através de um compromisso de 1446 do Participante e de um Negociante pelo qual o Participante opte irrevogavelmente em exercer a Opção e prometer as Ações assim compradas ao Revendedor em uma conta de margem como garantia de um empréstimo do Revendedor no valor do Preço de Exercício total e Pelo qual o Revendedor compromete-se irrevogavelmente após o recebimento de tais Ações para encaminhar o Preço de Exercício total diretamente para a Companhia (e) qualquer outra forma de consideração aprovada pelo Comitê ou (f) por qualquer combinação dos anteriores. 4.4 Retenção de impostos. Antes da emissão das Ações após o exercício da Opção, o Participante deve pagar ou fornecer quaisquer obrigações federais, estaduais e locais de retenção da Companhia. Se o Comitê permitir, o Participante poderá prover o pagamento de impostos retidos na fonte após o exercício da Opção, solicitando que a Companhia mantenha o número mínimo de Ações com um Valor de Mercado Justo igual ao montante mínimo de impostos exigido para ser retido, mas em nenhum caso A Companhia reter as Ações se essa retenção resultar em conseqüências contábeis adversas para a Companhia. Nesse caso, a Companhia deverá emitir o número líquido de Ações ao Participante, deduzindo as Ações retidos das Ações emitíveis após o exercício. 4.5 Emissão de Ações. Desde que o Acordo de Exercício e o pagamento sejam em forma e substância satisfatória para conselho da Companhia, a Companhia deverá emitir as Ações registradas em nome do Participante, do Contratante autorizado do Participante146 ou do representante legal do Participante146 e entregarão certificados representativos das Ações com o Legendas adequadas afixadas a ele. 5. Aviso de Disqualifying Disposition of ISO shares. Se a Opção for um ISO e se o Participante vender ou alienar de qualquer das Ações adquiridas de acordo com o ISO antes ou depois da (i) a data dois anos após a Data de Concessão, e (ii) a data um Ano após a transferência de tais Ações para o Participante após o exercício da Opção, o Participante deverá notificar imediatamente a Companhia por escrito dessa disposição. O Participante concorda que o Participante pode estar sujeito a retenção de imposto de renda pela Companhia sobre a receita de compensação reconhecida pelo Participante da disposição antecipada por pagamento em dinheiro ou fora do salário atual ou outra remuneração a pagar ao Participante. 6. Cumprimento de leis e regulamentos. O Plano e este Contrato destinam-se a cumprir com a Seção 25102 (o) do Código de Sociedades da Califórnia e quaisquer regulamentos relacionados a isso. Qualquer disposição deste Contrato que seja incompatível com a Seção 25102 (o) ou quaisquer regulamentos a eles relacionados deve ser reformada para cumprir os requisitos da Seção 25102 (o) e quaisquer regulamentos relacionados com a mesma. Para isso. O exercício da Opção e a emissão e transferência de Ações estarão sujeitas à conformidade da Companhia e do Participante com todos os requisitos aplicáveis ​​das leis de valores mobiliários federais e estaduais e com todos os requisitos aplicáveis ​​de qualquer bolsa de valores em que a Ação Ordinária Classe A da Companhia14 Seja listado no momento dessa emissão ou transferência. O participante entende que a Companhia não tem obrigação de registrar ou qualificar as Ações com a SEC, qualquer comissão estadual de valores mobiliários ou qualquer bolsa de ações para efetuar tal conformidade. 7. Não transferibilidade da Opção. A Opção não pode ser transferida de forma alguma, de acordo com a vontade ou pelas leis de descendência e distribuição, e, no que diz respeito aos NQSOs, por instrumento a um varejo interventos ou testamentário em que as opções devem ser passadas aos beneficiários após a Morte do trustor (settlor), ou por presente para a família imediata148 como esse termo é definido em 17 CFR 240.16a-1 (e), e pode ser exercido durante a vigência do Participante somente pelo Participante ou no caso de incapacidade do Participante146, pelo representante legal do Participante146. Os termos da Opção serão vinculativos para os executores, administradores, sucessores e cessionários do Participante. 8. Direito de Primeira Recusa da Companhia. Antes que quaisquer Ações Vested detidas pelo Participante ou qualquer cessionário de tais Ações Vested possam ser vendidas ou transferidas de outra forma (incluindo, sem limitação, uma transferência por presente ou operação de lei), a Companhia e / ou seu (s) cessionário (s) devem ter um direito de preferência atribuível Para comprar as Ações Vested a serem vendidas ou transferidas nos termos e condições estabelecidos no Contrato de Exercício (o 147 Direito de Primeira Recusa 148). O Direito de Primeira Recusa da Companhia será encerrado quando os títulos da Companhia146s forem negociados publicamente. 9. Consequências fiscais. Apresentar abaixo é um breve resumo a partir da Data Efetiva do Plano de algumas das conseqüências fiscais federais e da Califórnia do exercício da Opção e disposição das Ações. ESTE SUMÁRIO É NECESSÁRIO INCOMPLETO, E AS LEIS E REGULAMENTOS TRIBUTÁRIOS SÃO SUJEITOS À MUDANÇA. O PARTICIPANTE DEVE CONSULTAR UM ADVISOR FISCAL ANTES DE EXERCER A OPÇÃO OU DISPOSIÇÃO DAS AÇÕES. 9.1 Exercício do ISO. Se a Opção se qualificar como um ISO, não haverá um imposto regular sobre o imposto de renda federal ou da Califórnia após o exercício da Opção, embora o excesso, se houver, do Valor de Mercado Justo das Ações na data do exercício sobre o Preço de Exercício Será tratado como um item de preferência de imposto para fins de impostos mínimos federais e pode sujeitar o Participante ao imposto mínimo alternativo no exercício de exercício. 9.2 Exercício de opção de compra não qualificada. Se a Opção não se qualificar como um ISO, pode haver uma obrigação de imposto de renda federal e da Califórnia regular no exercício da Opção. O participante será tratado como tendo recebido uma receita de remuneração (tributável em taxas de imposto de renda ordinárias) igual ao excesso, se houver, do Valor de Mercado Justo das Ações na data do exercício sobre o Preço de Exercício. Se o Participante for um funcionário atual ou antigo da Companhia, a Companhia poderá ser obrigada a reter a remuneração do Participante ou cobrar do Participante e pagar às autoridades tributárias aplicáveis ​​um valor igual a uma porcentagem dessa renda de compensação no momento do exercício. 9.3 Disposição de Ações. As seguintes consequências fiscais podem ser aplicadas aquando da alienação das Ações. (A) Opções de ações de incentivo. Se as Ações forem mantidas por mais de 12 meses após a data de compra das Ações de acordo com o exercício de um ISO e forem descartadas mais de dois anos após a Data de Concessão, qualquer ganho realizado na alienação das Ações será tratado Como ganho de capital de longo prazo para fins de imposto de renda federal e da Califórnia. Se as Ações Vested compradas de acordo com um ISO forem descartadas dentro do período aplicável de um ano ou dois anos, qualquer ganho realizado nessa disposição será tratado como receita de remuneração (tributável a taxas de renda ordinárias no ano da alienação) na extensão da Excesso, se houver, do Valor de Mercado Justo das Ações na data do exercício sobre o Preço de Exercício. (B) Opções de ações não qualificadas. Se as Ações forem mantidas por mais de 12 meses após a data da transferência das Ações de acordo com o exercício de uma NQSO, qualquer ganho realizado na alienação das Ações será tratado como ganho de capital a longo prazo. (C) Retenção. A Companhia pode ser obrigada a reter da compensação do Participante ou coletar do Participante e pagar às autoridades tributárias aplicáveis ​​um valor igual a uma porcentagem dessa renda de compensação. 10. Privilégios de propriedade de ações. O Participante não terá nenhum dos direitos de um acionista em relação a qualquer Ações até que as Ações sejam emitidas ao Participante. 11. Interpretação. Qualquer disputa sobre a interpretação deste Contrato será submetida pelo Participante ou pela Companhia ao Comitê para revisão. A resolução de tal disputa pelo Comitê será final e vinculativa para a Companhia e o Participante. 12. Acordo completo. O Plano é incorporado aqui por referência. Este Contrato e o Plano constituem todo o acordo e entendimento das partes no que se refere ao objeto deste Contrato e substituem todos os entendimentos e acordos anteriores, orais ou escritos, entre ou entre as partes em relação ao assunto específico Aqui. 13. Avisos. Qualquer e todos os avisos exigidos ou permitidos para uma parte de acordo com as disposições deste Contrato serão por escrito e serão efetivos e considerarão fornecer aviso prévio de tal parte no presente Contrato o mais rápido possível: (i) em O tempo de entrega pessoal, se a entrega for pessoalmente ou por e-mail (ii) no momento da transmissão por fax, dirigida à outra parte em seu número de fax especificado neste documento (ou, posteriormente, modificado por notificação subsequente às partes) Confirmação do recibo feito por telefone e folha de confirmação impressa, verificando a transmissão bem sucedida do fax (iii) um dia útil após o depósito com um correio expresso durante a noite para entregas dos Estados Unidos ou dois dias úteis após esse depósito para entregas fora dos Estados Unidos, Com comprovante de entrega do correio solicitado ou (iv) três dias úteis após o depósito no correio dos Estados Unidos por correio certificado (confirmação do recibo) Para entregas dos Estados Unidos. Todos os avisos para entrega fora dos Estados Unidos serão enviados por fax ou e-mail com confirmação de recebimento, ou por correio expresso. Todos os avisos não entregues pessoalmente ou por fax ou e-mail serão enviados com frete e outros encargos pré-pagos e devidamente endereçados à Companhia em: 444 De Haro Street, Suite 132, São Francisco, CA 94107, 415-503-0222 ou Stockadminzynga e ao Participante no endereço, número de fax ou endereço de e-mail estabelecido abaixo da linha de assinatura do Participante146s deste Contrato, ou em qualquer outro endereço ou número de fax que qualquer outra parte possa designar por um dos meios de notificação indicados no presente documento. Outras partes. Os avisos para a Empresa serão marcados como 147Atenção: Administrador do Plano de Ações148. 14. Sucessores e Atribuições. A Companhia pode ceder qualquer dos seus direitos ao abrigo deste Contrato, incluindo seus direitos de compra de Ações de acordo com o Direito de Primeira Recusa. Nenhuma outra parte deste Contrato poderá ceder, voluntariamente ou por força da lei, qualquer dos seus direitos e obrigações ao abrigo deste Contrato, exceto com o consentimento prévio por escrito da Companhia. Este Contrato será vinculativo e incessante em benefício dos sucessores e cessionários da Companhia. Sujeito às restrições de transferência estabelecidas neste documento, este Contrato será obrigatório para os herdeiros, executores, administradores, representantes legais, sucessores e cessionários do participante e do participante146s. 15. Direito aplicável. Este Contrato será regido e interpretado de acordo com as leis do Estado da Califórnia, sem dar efeito a esse corpo de leis relativas a conflitos de leis. 16. Aceitação. O Participante reconhece o recebimento de uma cópia do Plano e deste Contrato. O participante leu e entende os termos e as disposições do mesmo e aceita a Opção sujeita a todos os termos e condições do Plano e deste Contrato. O participante reconhece que pode haver conseqüências fiscais adversas após o exercício da Opção ou disposição das Ações e que o Participante deve consultar um conselheiro fiscal antes desse exercício ou disposição. 17. Outras garantias. As partes concordam em executar tais documentos e instrumentos adicionais e tomar as demais ações que possam ser razoavelmente necessárias para levar a cabo os propósitos e intenções deste Acordo. 18. Títulos e títulos. Os títulos, legendas e rubricas deste Contrato são incluídos apenas para facilidade de referência e serão desconsiderados na interpretação ou interpretação deste Contrato. Salvo indicação expressa especificamente, todas as referências aqui contidas às 147secções148 e 147exclusas148 significarão 147secções148 e 147exposições148 a este Contrato. 19. Contrapartes. Este Contrato pode ser executado em qualquer número de contrapartes, cada um dos quais, quando assim executado e entregue, será considerado original e todos os quais juntos constituirão um e o mesmo acordo. 20. Divisibilidade. Se qualquer disposição deste Contrato for determinada por qualquer tribunal ou árbitro de jurisdição competente para ser inválida, ilegal ou inaplicável em qualquer aspecto, tal disposição será aplicada na medida do possível, tendo em vista a intenção das partes. Se tal cláusula ou provisão não puder ser aplicada, essa disposição será afetada por este Contrato e o restante deste Contrato será executado como se essa cláusula ou provisão inválida, ilegal ou inexequível tivesse (na medida em que não fosse executória) nunca foi contida em este acordo. Não obstante a renúncia, se o valor deste Contrato com base no benefício substancial da negociação para qualquer parte é materialmente prejudicado, a determinação feita pelo tribunal ou árbitro da jurisdição competente será vinculativa, ambas as partes concordam em substituir essa disposição (S) através de negociações de boa-fé. 21. Assinaturas de fac-símile. Este Contrato pode ser executado e entregue por fax e, após essa entrega, a assinatura do fax será considerada como tendo o mesmo efeito que se a assinatura original tivesse sido entregue à outra parte. EM TESTEMUNHO DO QUE ESTÃO. A Companhia causou que este Contrato seja executado pelo seu representante devidamente autorizado e o Participante tenha efetuado o presente Contrato, com vigência a partir da Data do Subsídio. Outro, especifique: Para atribuir as Ações a um fideicomisso, um contrato de transferência de ações no formulário em anexo, conforme Anexo 4 (147 Contrato de Transferência de Stock 148), deve ser concluído e executado. Para atribuir as Ações a um fideicomisso, um contrato de transferência de ações na forma aceitável para a empresa deve ser concluído ou executado. 1.3 Pagamento. O Comprador entrega o pagamento do Preço de Exercício da forma permitida no Contrato de Opção de Compra de ações da seguinte forma (verifique e complete, conforme apropriado): em dinheiro (por cheque) no valor de. Cujo recibo é reconhecido pela Companhia por cancelamento de endividamento da Companhia devido ao Comprador no valor de entrega de ações integralizadas, não avaliáveis ​​e adquiridas da Classe Ordinária da Classe B da Companhia detida pelo Comprador por pelo menos seis meses Antes da data da qual foram pagos, na acepção da Regra 144 da SEC, (se comprado pelo uso de uma nota promissória, tal nota foi totalmente paga com relação a essas ações adquiridas), ou obtido pelo Comprador no público aberto Mercado, e possuído livre e desobstruído de todos os ônus, reivindicações, ônus ou interesses de segurança, avaliado no Valor de Mercado Justo atual por ação pela renúncia por conta de compensação devido ou acumulada por serviços prestados no valor de. 2.1 Entregas pelo Comprador. O Comprador entrega à Companhia (i) este Contrato de Exercício, (ii) duas cópias de um Certificado de Estoque e Atribuição Separado de Stock Stock na forma do Anexo 1 em anexo (os 147 Poderes de Ações 148), ambos executados pelo Comprador ( E o cônjuge do comprador146, se houver), (iii) se o Comprador estiver casado, o consentimento do cônjuge sob a forma do Anexo 2 anexo ao presente (o 147 Consentimento do Cônjuge 148) executado pelo cônjuge da Compradora146 e (iv) o Preço de Exercício e o pagamento ou Outra provisão para quaisquer obrigações tributárias aplicáveis ​​sob a forma de cheque, uma cópia da qual está anexada como Anexo 3 e (v) o Contrato de Transferência de Estoque totalmente executado no formulário em anexo como Anexo 4 (se aplicável). 2.2 Entregas pela Companhia. Após o recebimento do Preço de Exercício, pagamento ou outra provisão para quaisquer obrigações tributárias aplicáveis ​​e todos os documentos a serem executados e entregues pelo Comprador à Companhia de acordo com a Seção 2.1, a Companhia emitirá um certificado de ações devidamente assinado que comprovará as Ações no nome Do Comprador para ser colocado em garantia, conforme previsto na Seção 11, para garantir o pagamento da obrigação da Compradora146 à Companhia sob a nota promissória e até o vencimento ou rescisão da Opção de Recompra da Companhia e do Direito de Primeira Recusa descritos nas Seções 8, 9 e 10. 3 Representação e Garantia do Comprador. O Comprador representa e garante à Empresa que: 3.1 Concorda com os Termos do Plano. O Comprador recebeu uma cópia do Plano e do Contrato de Opção de Compra de Ações, leu e entende os termos do Plano, o Contrato de Opção de Compra de Ações e este Contrato de Exercício, e concorda em ficar vinculado aos seus termos e condições. O Comprador reconhece que pode haver conseqüências fiscais adversas após o exercício da Opção ou disposição das Ações e que o Comprador deve consultar um consultor fiscal antes desse exercício ou disposição. 3.2 Compra por Conta Própria para Investimento. O Comprador está comprando as Ações para a própria Conta Compradora146s apenas para fins de investimento e não com vista a, ou para venda em conexão com, uma distribuição das Ações na acepção da Lei de Valores Mobiliários. O Comprador não tem intenção presente de vender ou alienar qualquer parte das Ações e ninguém além do Comprador possui qualquer propriedade efetiva de qualquer das Ações. 3.3 Acesso à informação. O Comprador teve acesso a todas as informações relativas à Companhia e aos seus atuais e futuros negócios, ativos, passivos e condições financeiras que o Comprador considera razoavelmente importante na decisão de comprar as Ações e a Compradora teve ampla oportunidade de fazer perguntas aos representantes da Companhia146 Sobre tais questões e esse investimento. 3.4 Compreensão dos Riscos. O comprador está plenamente ciente de: (i) a natureza altamente especulativa do investimento nas Ações (ii) os riscos financeiros envolvidos (iii) a falta de liquidez das Ações e as restrições à transferibilidade das Ações (por exemplo, que o Comprador pode Não pode vender ou alienar as Ações ou usá-las como garantia de empréstimos) (iv) qualificações e antecedentes da administração da Companhia e (v) as consequências fiscais do investimento nas Ações. O comprador é capaz de avaliar os méritos e os riscos desse investimento, tem a capacidade de proteger os próprios interesses do comprador146 nesta transação e é financeiramente capaz de suportar uma perda total desse investimento. 3.5 Sem solicitação geral. Em nenhum momento o Comprador foi apresentado ou solicitado por qualquer jornal, correio, rádio, televisão ou outra forma de publicidade ou solicitação geral relacionada com a oferta, venda e compra de ações. 4. Cumprimento das Leis de Valores Mobiliários. 4.1 Conformidade com as leis federais dos valores mobiliários dos EUA. O Comprador entende e reconhece que as Ações não foram registradas na SEC nos termos do Securities Act e que, apesar de qualquer outra disposição do Contrato de Opção de Compra de ações em contrário, o exercício de qualquer direito de compra de qualquer Ação está expressamente condicionada ao cumprimento da Securities Act e todas as leis de valores mobiliários aplicáveis. O Comprador concorda em cooperar com a Companhia para garantir o cumprimento dessas leis. 4.2 Conformidade com as Leis de Valores Mobiliários da Califórnia. O PLANO, O ACORDO DE OPÇÃO DE ACÇÃO E ESTE ACORDO DE EXERCÍCIO ESTÃO DESTINADOS A CUMPRIR A SEÇÃO 25102 (o) DO CÓDIGO DE CORPORAÇÕES DE CALIFORNIA E QUAISQUER REGRAS (INCLUINDO AS REGRAS DO COMISSÁRIO, SE SE APLICÁVEL) OU REGULAMENTOS PROMULGADOS POR O DEPARTAMENTO DE CORPORAÇÕES DE CALIFORNIA (THE 147 REGULAMENTOS 148). QUALQUER FORNECIMENTO DESTE ACORDO DE EXERCÍCIO QUE É INCONSISTENTE À SEÇÃO 25102 (o) NÃO SERÁ ATRIBUÍDO OU A ALTERAÇÃO DA COMPANHIA OU DA JUNTA, SERÃO REFORMADOS PARA CUMPRIR OS REQUISITOS DA SEÇÃO 25102 (o). A VENDA DOS TÍTULOS DE VALORES MOBILIÁRIOS QUE SEJA SUJEITO A ESTE CONTRATO DE EXERCÍCIO, SE NÃO É QUALIFICADO COM O COMISSÁRIO DE CORPORAÇÕES DA CALIFÓRNIA E NÃO EXEMPIDO DE TAIS QUALIFICAÇÕES, ESTÁ SUJEITO A TAXA DE QUALIFICAÇÃO, E A EMISSÃO DE TAL VALORES E A RECEITA DE QUALQUER PARTE DA CONSIDERAÇÃO ANTERIOR A TAXA DE QUALIFICAÇÃO É ILÍCITO, A MENOS QUE A VENDA É EXCELENTE. OS DIREITOS DAS PARTES A ESTE ACORDO DE EXERCÍCIO SÃO EXPRESSAMENTE CONDITIONADOS PARA QUE TAIS QUALIFICAÇÕES SEJAM OBTIDAS OU UMA EXIMEÇÃO DISPONÍVEL. 5. Valores Restritos. 5.1 Sem transferência a menos que esteja registrado ou isento. O Comprador entende que o Comprador não pode transferir quaisquer Ações, a menos que tais Ações estejam registradas nos termos do Securities Act ou qualificadas de acordo com as leis de valores mobiliários vigentes ou, a menos que, na opinião de advogados da Companhia, existam isenções de tais requisitos de registro e qualificação. O Comprador entende que somente a Companhia pode arquivar uma declaração de registro com a SEC e que a Companhia não está obrigada a fazê-lo com respeito às Ações. O comprador também foi informado de que as isenções de registro e qualificação podem não estar disponíveis ou não podem permitir que a Compradora transfira todas ou todas as Ações nos montantes ou nas horas propostas pelo Comprador. 5.2 SEC Rule 144. Além disso, o Comprador foi informado de que a Regra 144 da SEC, promulgada nos termos do Securities Act, que permite certas vendas limitadas de títulos não registrados, não está disponível atualmente com relação às Ações e, em qualquer caso, exige que as Ações sejam mantidas por um mínimo De seis meses e, em certos casos, um ano depois de terem sido comprados e pagos (na acepção da Regra 144). O Comprador entende que a Regra 144 pode restringir indefinidamente a transferência das Ações, desde que o Comprador permaneça como um afiliado148 da Companhia ou se 147 informações públicas atuais148 sobre a Companhia (conforme definido na Regra 144) não estão disponíveis publicamente. 6. Restrições às transferências. 6.1 Disposição de Ações. O Comprador concorda que o Comprador não efetuará disposição das Ações (exceto o permitido por este Contrato de Exercício) a menos que e até: (a) O Comprador deve ter notificado a Companhia da disposição proposta e fornecido um resumo escrito dos termos e condições de 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 sati sfactory 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 Company146s Repurchase Option or the Company146s 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 Company146s Repurchase Option and the Company146s 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 Company146s securities that, upon the request of the Company or the underwriters managing any public offering of the Company146s 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 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. Company146s Right of First Refusal . Company andor its assignee(s) will have a right of first refusal to purchase the Vested Shares (as defined in Section 2.2 of the Stock Option Agreement) to be sold or transferred (the 147 Offered Shares 148) on the terms and conditions set forth in this Section (the 147 Right of First Refusal 148). 8.1 Notice of Proposed Transfer . The Holder of the Offered Shares will deliver to the Company (A) a written notice (the 147 Notice 148) stating: (i) the Holder146s bona fide intention to sell or otherwise transfer the Offered Shares (ii) the name and address of each proposed purchaser or other transferee (the 147 Proposed Transferee 148) (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 147 Offered Price 148) and (v) that the Holder acknowledges this Notice is an offer to sell the Offered Shares to the Company andor its assignee(s) pursuant to the Company146s Right of First Refusal at the Offered Price as provided for in this Exercise Agreement and (B) a fully executed copy of the stock transfer agreement between the Holder and the Proposed Transferee. 8.2 Exercise of Right of First Refusal . At any time within 30 days after the date of the Notice, the Company andor 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 Company146s 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 Company146s Board of Directors, will conclusively be deemed to be the cash equivalent value of such non-cash consideration. 8.4 Payment . Payment of the purchase price for the Offered Shares will be payable, at the option of the Company andor its assignee(s) (as applicable), by check or by cancellation of all or a portion of any outstanding purchase money 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 60 days after the Company146s receipt of the Notice, or, at the option of the Company andor its assignee(s), in the manner and at the time(s) set forth in the Notice. 8.5 Holder146s 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 andor 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 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 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 Purchaser146s lifetime by gift or on Purchaser146s death by will or intestacy to Purchaser146s 147Immediate Family148 (as defined below) or to a trust for the benefit of Purchaser or Purchaser146s 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 su cceed 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 147 Immediate Family 148 will mean Purchaser146s spouse, the lineal descendant or antecedent, father, mother, brother or sister, child, adopted child, grandchild or adopted grandchild of the Purchaser or the Purchaser146s spouse, or the spouse of any of the above. 8.7 Termination of Right of First Refusal . The Right of First Refusal will terminate as to all Shares (i) on the effective date of the first sale of Class B Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the SEC under the 1933 Act (other than a registration statement relating solely to the issuance of Class B Common Stock pursuant to a business combination or an employee incentive or benefit plan) or (ii) on any transfer or conversion of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations if the common stock of the surviving corporation or any direct or indirect parent corporation thereof is registered under the Securities Exchange Act of 1934, as amended. 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 andor 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 (as defined in Section 2.2 of the Stock Option Agreement). 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 andor 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. 10. Escrow . As security for Purchaser146s 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 Purchaser146s 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 147 Escrow Holder 148), 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 andor 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. 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 Company146s Certificate of Incorporation or Bylaws, any other agreement between Purchaser and the Company or any agreement between Purchaser and any third party: THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS. THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON RESALE AND POTENTIAL FORFEITURE AS SET FORTH IN ISSUER146S BYLAWS AND CERTAIN AGREEMENTS, COPIES OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH AGREEMENTS, AMONG OTHER RESTRICTIONS, THESE SHARES MAY NOT BE SOLD OR TRADED AT ANY TIME DURING THE PERIOD BEGINNING ON THE DATE OF ISSUANCE OF SUCH SHARES AND ENDING ON THE LATER OF (i) 180 DAYS AFTER THE EFFECTIVE DATE OF THE INITIAL PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF OR (ii) THE DATE ON WHICH THE MARKET STAND-OFF AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER REFERRED TO ABOVE TERMINATES. SUCH RESTRICTIONS ARE BINDING ON TRANSFEREES OF SUCH 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 147stop-transfer148 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 PURCHASER146S 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 PURCHASER146S OWN TAX ADVISER CONCERNING THE ADVISABILITY OF FILING AN 83(b) ELECTION WITH THE INTERNAL REVENUE SERVICE WHICH MUST BE FILED WITHIN 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. 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 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 Purchaser146s 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 12 months after the date of purchase of the Shares pursuant to the exercise of an ISO and are disposed of more than two 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 Vested Shares purchased under an ISO are disposed of within the applicable one year or two year period, any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates in the year of the disposition) 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. To the extent the Shares were exercised prior to vesting coincident with the filing of an 83(b) Election, the amount taxed because of a disqualifying disposition will be based upon the excess, if any, of the fair market value on the date of vesting over the exercise price. (b) Nonqualified Stock Options . If the Shares are held for more than 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) Retenção. The Company may be required to withhold from the Purchaser146s 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 Company146s Class B 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 and obligations under this Exercise Agreement, including its rights to purchase Shares under the Repurchase Option and the Right of First Refusal. No other party to this Exercise Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Exercise Agreement, except with the prior written consent of the Company. 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 Purchaser146s heirs, executors, administrators, legal representatives, successors and assigns. 15. Governing Law . This Exercise Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to that body of laws pertaining to conflict of laws. Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following: (i) at the time of personal delivery, if delivery is in person or by email (ii) at the time of transmission by facsimile, addressed to the other party at its facsimile number specified herein (or hereafter modified by subsequent notice to the parties hereto), with confirmation of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile (iii) one business day after deposit with an express overnight courier for United States deliveries, or two business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested or (iv) three business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries. All notices for delivery outside the United States will be sent by facsimile or e-mail with confirmation of receipt, or by express courier. All notices not delivered personally or by facsimile or e-mail will be sent with postage andor other charges prepaid and properly addressed to the Company at: 699 Eighth Street, San Francisco, CA 94103, facsimile (415) 503-0222, stockadminzynga and to the Participant at the address, facsimile number or email address set forth below the Participant146s signature line of this Agreement, or at such other address or facsimile number as such other party may designate by one of the indicated means of notice herein to the other parties hereto. Notices to the Company will be marked 147Attention: Stock Plan Administrator148. 18. Further Assurances . The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Exercise Agreement. 19. Titles and Headings . The titles, 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. Unless otherwise specifically stated, all references herein to 147sections148 and 147exhibits148 will mean 147sections148 and 147exhibits148 to 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 or among the parties hereto with respect to the specific subject matter hereof. 21. Counterparts . This Exercise Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement. 22. Severability . If any provision of this Exercise Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such clause or provision cannot be so enforced, such provision shall be stricken from this Exercise Agreement and the remainder of this Exercise Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Exercise Agreement. Notwithstanding the forgoing, if the value of this Exercise Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 23. Facsimile Signatures . This Exercise Agreement may be executed and delivered by facsimile and upon such delivery the facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other party. 24. Compliance with Employee Invention Assignment and Confidentiality Agreement . Purchaser acknowledges and agrees that any breach by Purchaser of the Employee Invention Assignment and Confidentiality between Purchaser and the Company (or any predecessor-in-interest, including, but not limited to Presidio Media Inc.) may result in Purchaser146s personal liability for damages to the Company and that the Company may, or may not, accept the Shares as compensation for damages caused by such breach. 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. (Please Print Spouse146s 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 and to exercise its 147Repurchase Option148 and 147Right of First Refusal148 set forth in the Exercise Agreement without requiring additional signatures on the part of the Purchaser or Purchaser146s Spouse. The undersigned spouse of (the 147 Purchaser 148) has read, understands, and hereby approves the Stock Option Exercise Agreement between Purchaser and the Company (the 147 Agreement 148). In consideration of the Company 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. STOCK TRANSFER AGREEMENT STOCK TRANSFER AGREEMENT This Stock Transfer Agreement (this 147 Agreement 148) is made and entered into as of . 200 (the 147 Effective Date 148), by and among (the 147 Transferee 148), (the 147 Transferor 148) and Zynga Inc. a Delaware corporation (the 147 Company 148). A. Transferor is the holder of shares of the Class B Common Stock of the Company (the 147 Shares 148), which are represented by stock certificate number CA - . The Shares were originally issued to Transferor pursuant to a certain Stock Option Exercise Agreement dated . 20, by and between the Company and the Transferor, as amended (the 147 Acquisition Agreement 148). B. In accordance with the terms of the Acquisition Agreement, Transferor desires to transfer a portion of such shares to Transferee as a gift and for no additional consideration, as indicated below. Now, therefore, the parties hereby agree as follows. 1. TRANSFER OF SHARES . On the Effective Date and subject to the terms and conditions of this Agreement, Transferor hereby transfers to Transferee as a gift and for no additional consideration, and Transferee hereby acquires from Transferor an aggregate of ( ) vested shares of the Company146s Class B Common Stock (the 147 Shares 148). As used in this Agreement, 147Shares148 shall include all the Shares transferred under this Agreement and all securities received (a) in replacement of the Shares, (b) as a result of stock dividends or stock splits in respect of the Shares and (c) as substitution for the Shares in a recapitalization, merger, reorganization or the like. The Company hereby consents to such transfer, it being expressly understood that such rights shall continue to be applicable to other proposed transfers of the Shares hereafter. 2.1 Deliveries by Transferor . Transferor hereby delivers to the Company (a) any share certificates representing the Shares, if in Transferor possession, or otherwise authorizes Company to remove any such share certificates from escrow for cancellation and reissuance (b) a Stock Power and Assignment Separate from Stock Certificate, in substantially the form attached hereto as Exhibit A (a 147 Stock Power 148) and (c) an executed copy of this Agreement. 2.2 Deliveries by Transferee . Transferee hereby delivers to the Company (a) an executed copy of this Agreement, (b) if Transferee is married, a Consent of Spouse in the form of Exhibit B attached hereto, if any, duly executed by Transferee146s spouse and (d) if applicable, the blank Stock Power required by Section 5 below, executed by Transferee and Transferee146s spouse. 2.3 Deliveries of Stock Certificate . Transferor hereby instructs the Company to: (a) cancel any stock certificate issued to Transferor146s representing the Shares (b) issue a duly executed stock certificate evidencing the Shares in Transferee146s name and (c) issue a duly executed stock certificate evidencing the number of shares remaining after the transfer to Transferee, if any, in Transferor146s name. All newly issued stock certificates will be held in escrow by the Company pursuant to Section 5 below. 3. REPRESENTATIONS AND WARRANTIES OF TRANSFEREE . Transferee represents and warrants to Transferor and the Company as follows. 3.1 Purchase for Own Account for Investment . Transferee is acquiring the Shares for Transferee146s 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 of 1933, as amended (the 147 1933 Act 148). Transferee has no present intention of selling or otherwise disposing of all or any portion of the Shares and, upon transfer of the Shares to Transferee, no one other than Transferee will have any beneficial ownership of any of the Shares. 3.2 Compliance with Securities Laws . Transferee understands and acknowledges that, in reliance upon the representations and warranties made by Transferee herein, the Shares are not being registered with the Securities and Exchange Commission (147 SEC 148) under the 1933 Act or being qualified under any other applicable securities laws, but instead, based upon a representation by Transferee that no value or consideration is being given by Transferee to Transferor for the Shares, the Shares are being transferred under an exemption or exemptions from the registration and qualification requirements of the 1933 Act or other applicable securities laws. Such securities laws impose certain restrictions on Transferee146s ability to transfer the Shares. 3.3 Securities Law Restrictions on Transfer . Transferee understands that Transferee may not transfer any Shares unless such Shares are registered under the 1933 Act or qualified under other applicable securities laws or unless, in the opinion of counsel to the Company, exemptions from such registration and qualification requirements are available. Transferee understands that only the Company may file a registration statement with the SEC or other applicable securities laws and the Company is under no obligation to do so with respect to the Shares. Transferee has also been advised that exemptions from registration and qualification may not be available or may not permit Transferee to transfer all or any of the Shares in the amounts or at the times proposed by Transferee. 3.4 Restrictions on Transfer and Ownership of Capital Stock of the Company. Until the occurrence of a Liquidity Event (as defined below), unless otherwise permitted pursuant to the terms of a written agreement between the Company and any such transferring stockholder or its permitted assigns, no share of capital stock of the Company acquired subsequent to November 10, 2010 may be Transferred (as defined below) by the acquirer thereof without the written consent of the Company. For purposes of this Section 3.4, the following terms shall have the meanings ascribed to them as set forth below: 147 Liquidity Event 148 means the first to occur of (i) an IPO (as defined below) or (ii) a Change of Control (as defined below). 147 Transferred, 148 as it relates to the capital stock of the Company, means any sale, assignment, transfer, conveyance, hypothecation or other transfer or disposition of such capital stock or any legal or beneficial interest in such capital stock, whether or not for value and whether voluntary or involuntary or by operation of law. 147 IPO 148 means an underwritten public offering by the Company of its securities that is registered pursuant to the U. S. Securities Act of 1933, as amended. 147 Change of Control 148 means (i) (a) a dissolution or liquidation of the Company or (b) any reorganization, consolidation, merger or similar transaction or series of related transactions (each, a 147 combination transaction 148) in which the Company is a constituent corporation or is a party if, as a result of such combination transaction, the voting securities of the Company that are outstanding immediately prior to the consummation of such combination transaction ( other than any such securities that are held by an Acquiring Shareholder (as defined below)) do not represent, or are not converted into, securities of the surviving corporation of such combination transaction (or such surviving corporation146s parent corporation if the surviving corporation is owned by the parent corporation) that, immediately after the consummation of such combination transaction, together possess at least fifty percent (50) of the total voting power of all securities of such surviving corporation (or its parent corporation, if applicable) that are outstanding immediately after the consummation of such combination transaction , including securities of such surviving corporation (or its parent corporation, if applicable) that are held by the Acquiring Shareholder or (ii) a sale of all or substantially all of the assets of the Company, that is followed by the distribution of the proceeds to the Company146s shareholders. 147 Acquiring Shareholder 148 means a shareholder or shareholders of the company that (i) merges or combines with the Company in such combination transaction or (ii) owns or controls a majority of another corporation that merges or combines with the Company in such combination transaction. 3.5 Rule 144 . In addition, Transferee has been advised that SEC Rule 144 promulgated under the 1933 Act, which permits certain limited sales of unregistered securities, may not be presently available with respect to the Shares and, in any event, requires that the Shares be held for a minimum of six (6) months, and in certain cases one (1) year, after they have been purchased and paid for (within the meaning of SEC Rule 144), before they may be resold under SEC Rule 144. Under certain circumstances where the Transferor is not an 147affiliate148 as defined under the 1933 Act, the holding period of the Transferor will carry over to the Transferee. 4. REPRESENTATIONS AND WARRANTIES OF TRANSFEROR . Transferor represents and warrants to the Company and Transferee as follows. 4.1 Transfer for Own Account . Transferor is transferring the Shares not with a view to, or for sale in connection with, a distribution of the Shares within the meaning of the 1933 Act. No cash, property or other consideration will be paid or given for the Shares by Transferee to Transferor or to the Company. 4.2 Title to Shares . Immediately prior to the Effective Date, Transferor had valid marketable title to the Shares to be transferred under this Agreement, free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest other than pursuant to any Agreement or other document described in Section 5 below. 4.3 Consents . All consents, approvals, authorizations and orders required for the execution and delivery of this Agreement and the transfer of the Shares under this Agreement have been obtained and are in full force and effect. 4.4 Authority . Transferor has full legal right, power and authority to enter into and perform its obligations under this Agreement and to transfer the Shares under this Agreement. Transferor, if other than a natural person, has been duly organized and is validly existing in good standing under the laws of the jurisdiction of its organization as the type of entity that it purports to be. 5. COMPLIANCE WITH ACQUISITION AGREEMENT . 5.1 Terms Continue to Apply . Transferee agrees to be bound by the terms and conditions of the Acquisition Agreement in the same manner as Transferor is bound, a copy of which is attached hereto as Exhibit D . Transferee expressly agrees to comply with such sections of the Acquisition Agreement and that the Shares shall be subject to the transfer restrictions contained therein to the same extent the Shares would be if retained by Transferor. Subject to the terms and conditions of this Agreement, Transferee will have all of the rights of a shareholder of the Company with respect to the Shares until such time as Transferee disposes of the Shares andor the Company andor its assignee(s) exercise(s) any rights pursuant thereto. 5.2 Escrow . As security for Transferee146s faithful performance of the Acquisition Agreement, Transferee and Transferee146s Spouse, if any, have executed the Stock Power attached hereto and marked Exhibit C which has been executed and blank (with the date and number of shares left blank). Immediately upon receipt of the stock certificate evidencing the Shares, Transferee will deliver such certificate to the Secretary of the Company or other designee of the Company (the 147 Escrow Holder 148), who is hereby appointed to hold such certificate and Stock Power in escrow and to take all such actions and to effectuate all such transfers andor releases of such Shares as are in accordance with the terms of the Acquisition Agreement. Transferee and the Company agree that Escrow Holder will not be liable to any party to this Agreement (or to any other person or entity) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Section. Escrow Holder may rely upon any letter, notice or other document executed by 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 Agreement or the Acquisition Agreement. The Shares will be released from escrow upon termination of the restrictions upon transfer set forth in the Acquisition Agreement. 6. COMPLIANCE WITH LAWS AND REGULATIONS . The sale and transfer of the Shares will be subject to and conditioned upon compliance by the Company and Transferee with all applicable state and federal laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company146s Common Stock may be listed or quoted at the time of such issuance or transfer. 7. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS . 7.1 Legends . Transferee 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 federal securities laws, the Company146s Certificate of Incorporation or Bylaws, any other agreement affecting the Shares between Transferor and the Company, including but not limited to the Acquisition Agreement, or between Transferor and any third party: THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE 147SECURITIES ACT148), 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 RESALE AND POTENTIAL FORFEITURE AS SET FORTH IN ISSUER146S BYLAWS AND CERTAIN AGREEMENTS, COPIES OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF THE BYLAWS AND SUCH AGREEMENTS, AMONG OTHER RESTRICTIONS, THESE SHARES MAY NOT BE SOLD OR TRADED AT ANY TIME PRIOR TO AN INITIAL PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER OR A CHANGE IN CONTROL OF THE ISSUER. 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 ANY PUBLIC OFFERING OF THE COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES. THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE RIGHT OF FIRST REFUSAL ANDOR RIGHT OF REPURCHASE HELD BY THE ISSUER ANDOR ITS ASSIGNEE(S) 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. SUCH RIGHT OF FIRST REFUSAL ANDOR RIGHT OF REPURCHASE HELD BY THE ISSUER ARE BINDING ON THE TRANSFEREES OF THESE SHARES. 7.2 Stop-Transfer Instructions . Transferee agrees that, in order to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate 147stop-transfer148 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. The Company will not be required (a) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (b) to treat as owner of such Shares, or to accord the right to vote or pay dividends, to any purchaser or other purchaser to whom such Shares have been so transferred. 8.1 Successors and Assigns Assignment . Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives. The Company may assign any of its rights and obligations under this Agreement. No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior written consent of the Company. 8.2 Governing Law . This Agreement will be governed by and construed in accordance with the laws of the State of California, without giving effect to that body of laws pertaining to conflict of laws. 8.3 Notices . Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following: (a) at the time of delivery, if delivery is in person or by email or facsimile, with confirmation of receipt (b) one (1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of the United States or (c) three (3) business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries. All notices for delivery outside the United States will be sent by express courier. All notices not delivered personally or by email or facsimile will be sent with postage andor other charges prepaid and properly addressed to the party to be notified at the address set forth below the signature lines of this Agreement or at such other address as such other party may designate by one of the indicated means of notice herein to the other party hereto. A 147 business day 148 shall be a day, other than Saturday or Sunday, when the banks in the city of San Francisco are open for business. 8.4 Further Assurances . The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement. 8.5 Titles and Headings . The titles, captions and headings of this Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to 147sections148 and 147exhibits148 will mean 147sections148 and 147exhibits148 to this Agreement. 8.6 Entire Agreement . This Agreement and the documents referred to herein constitute the entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof. 8.7 Severability . If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 8.8 Amendment and Waivers . This Agreement may be amended only by a written agreement executed by each of the parties hereto. No amendment of or waiver of, or modification of any obligation under this Agreement will be enforceable unless set forth in a writing signed by the party against which enforcement is sought. Any amendment effected in accordance with this section will be binding upon all parties hereto and each of their respective successors and assigns. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. No waiver granted under this Agreement as to any one provision herein shall constitute a subsequent waiver of such provision or of any other provision herein, nor shall it constitute the waiver of any performance other than the actual performance specifically waived. 8.9 Counterparts Facsimile Signatures . This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement. This Agreement may be executed and delivered by facsimile and upon such delivery the facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other party. Signature page follows IN WITNESS WHEREOF . the Company has caused this Stock Transfer Agreement to be executed by its duly authorized representative and Transferor and Transferee have each executed this Agreement, as of the Effective Date. You are an executive or senior employee who has just received a verbal or written job offer. Perhaps the company is an emerging technology company, possibly venture capital-funded. Whether you are coming from a similar company, or a large, more traditional employer, the Offer Letter may come as a bit of a let-down. It may be only a few pages long. It may read like a form letter, with your name, title, salary and stock option information filled-in. Perhaps you received it by e-mail. Be careful not to let the informality of the companys approach to lull you into nonchalance. This Offer Letter sets forth what you and your family will receive in return for your blood, sweat and tears for the next untold number of years. The Offer Letter was probably drafted as a form by an employment lawyer with a large law firm, and it is carefully crafted to protect the companys interests. (If you received a longer, more formal-looking Employment Agreement instead, you simply have that much more legalese to wade through and understand.) Even though you may have negotiated your salary and title, the negotiation is not necessarily over. There are a number of other terms of significant import to the job candidate that the Offer Letter also addresses, or fails to address by design. Do not be discouraged from negotiating by the oft-utilized canards that the offer is quotthe best the company can doquot or that quoteveryone at your level has the same dealquot. A rational company will always listen carefully to the well-considered positions of a candidate it values. Besides, you just may be better advised than those prior hires. So how do you proceed The following are general points which reflect portions of the collaborative process I typically use with clients to evaluate, strategize and negotiate an optimal set of employment and compensation terms: 1) Think hard, find a sounding board. Engage in an evaluation of your employment history, career goals, knowledge of the company and the particular practices of its sector, your work style, financial goals and comfort level in negotiating with your future employer. Hash out your reactions to the terms of the Offer Letter, both the major financial terms and the implications of the obscure legal terms. Draw upon the experience of someone who has first-hand knowledge of the compensation practices of companies in the sector, and determine a set of requests to be negotiated. 2) Adopt a posture. Adopt and communicate a negotiation posture to the company. The posture must integrate several competing interests at once -- your strong interest in the company and the job, your thoughtfulness about what compensation terms you need in order to take the job, your firmness and deliberate demeanor and a projected sensibility that whatever happens during the negotiations will not affect your future job performance or your interpersonal relationships with your colleagues. Once this posture is successfully established and communicated, there is practically nothing you cannot fruitfully attempt to negotiate. 3) Control success. Control the negotiation process and drive the resolution of issues. This is not as hard as it may seem. Control over the process can be achieved in most cases by seizing the initial workload and drawing a clear road map for resolution and completion of the process. For example, I will often initiate a negotiation in the following manner: quotI understand that you and Mr. Candidate have reached a consensus on the outlines of the compensation and job responsibilities. Our issues generally relate to wording of portions of the Offer Letter, some issues around the edges of the compensation points and a few issues that the Offer Letter does not directly address that we would like to address in the interest of clarity. We will prepare a document with our comments and well set up a call to discuss the broader points then let the lawyers work out the smaller details -- preferably off-line without involving the principals. I foresee Mr. Candidate being able to sign the revised Offer Letter prepared by your attorney before the end of the week. quot 4) Have a clear strategy. Prioritize your requests into three categories, deal-breakers for you, minor issues and deal-breakers for the company. Do not fall into the trap of conceding a point in isolation simply because it does not matter to you -- weigh your concession based on what it means to the company. Obtain something of equivalent value in return. 5) Creating momentum to close the deal. Start with an open book, then quickly work to narrow the list of open issues. The company, by presenting a written Offer Letter, has opened the door to a discussion of whether the document as drafted accurately reflects the expectations of the candidate during the recruitment process. Once you have established the legitimacy of addressing all issues in the Offer Letter, you should make every effort to demonstrate a commitment to obtaining final resolution of issues that can be agreed to. Often, there are minor issues which can be sacrificed to establish goodwill. This creates a palpable sense of progress which can become a powerful rationale for the company to agree to your more important requests in the interest of getting you on board quickly. 6) Always trade major issues. Resist pressure to concede important points in isolation. If the company is waiting for word from the Board on a point important to you, do not concede a point important to the company in advance. I have found that honesty can be quite effective in this situation. quotWe know that that is an important point for you, and we are reasonable people, but until we know whether you can make progress on our big issue we have to table your request for now. quot Compensation and Employment Terms 7) Keep what you already have. Scan your memory, notes and any e-mail received from the company regarding compensation issues, and carefully cross-reference your expectations against the terms of the Offer Letter. The person preparing the Offer Letter may have had only a cursory discussion with the hiring executive. Often, crucial details are unintentionally misstated or omitted. Do not assume that any term at odds with your expectation is intentional, but do assume that the person preparing the Offer Letter will err to the benefit of the company. Salary is a difficult issue to address broadly, as it turns completely upon the particular facts of your situation. If you first learned of your proposed salary in the Offer Letter (which is not as uncommon as you might think) consider it fair game to negotiate it aggressively. If you previously heard a salary number bandied about, but never expressly negotiated and accepted a particular salary figure, proceed more cautiously, taking into account the fact that people treat salary matters differently than almost any other aspect of an employment negotiation. A little diplomacy goes a long way -- your future boss might not mind giving you a large signing or performance bonus, but might not want to pay you a salary larger than that paid to the company founder or to themselves. If you had arguably assented to a salary number during the recruitment process, tie your request for a higher figure to the companys resistance to other of your requests. For example, to illustrate the concept, you might say quotI was willing to accept 150k when I thought you had standard four-year stock vesting, but now that Ive learned it takes five years to vest, I really need to ask for 175k. quot Recognize that it is substantially easier to increase your salary, bonus and stock options before you start your new job than it is once you join the payroll and become subject to company compensation policies. 10) Money is money. Consider substituting pre-defined bonuses for salary where the company appears to be genuinely restricted in meeting your salary target. The path of least resistance may be to propose a bonus structure or two in place of that higher salary. Bonuses go into your pocket and, unless you agree to some sort of give-back scheme should you leave the company, they dont come back out. A written bonus provision that provides no quotoutsquot for the company will pay off as long as you are still employed when it comes due. (You can attempt to negotiate that too). Consider requesting the following bonuses if they apply to your situation: Signing Bonus (aka sign-on or starting bonus) Relocation Bonus (relocating to take a job costs more than just moving expenses, negotiate a lump-sum grossed-up for taxes to cover all of the unexpected expenses of being happy in a new location) Cost-of-Living Bonus (when moving to an area with a notoriously high cost of living) Retention Bonus (payable on a periodic basis if you remain employed by the company) Performance Bonus (payable upon achieving certain objectives, negotiate mutually-defined performance targets to be determined periodically) SalesRevenue Bonus (payable periodically based on the level of revenues generated by the company, your department or your activity, company profitability or other measurable financial criteria) 12) Equity interests. Equity interests -- actual or potential ownership interests in your employer -- are some of the most attractive elements of your compensation, but are difficult to value in a practical manner. This article addresses stock options, but some other equity interests beyond the scope of this article, such as founders stock, grants of restricted stock, warrants, and other less common devices, are worth considering. Stock options are the right to purchase stock in ones employer over a period of time for a set exercise price. The financial and tax impact of stock options, the differences between incentive stock options and non-qualified stock options and the increasingly negative impact of the Alternative Minimum Tax (AMT) on those who exercise options is complex and beyond the scope of this particular article. Professional advice should be obtained with regard to these issues from your personal legal andor tax advisors based on your particular financial situation. (Continue reading for a discussion of what to ask for and how to negotiate more stock options.) 13) Stock options. It has been established that employees often overvalue the stock option grants they receive, making them attractive substitutes for cash for the companies that issue them. Nonetheless, the prospect of earning a potential ownership stake worth many times your salary is a combination that may not have an equal in the American workplace. Shareholders like the incentive that stock options create for employees to align their interests wholly with those of the employer and the shareholders. Commence a negotiation over stock options with the knowledge that even many senior corporate executives are unclear on exactly how their option grants operate in all likely scenarios. The more you understand about the details of your stock option grant, the stock option plan under which it is issued and the corporate governance principals of the company the greater the likelihood that you can negotiate for more options under more favorable exercise terms, and realize substantial upside. 14) Ownership interest. A threshold analysis of any offer of stock options requires understanding of what share of corporate ownership the grant potentially represents. Has the company indicated a particular number of options to be granted Have they indicated what percentage of the companys presently issued and outstanding stock this grant would represent, if the option grant were to become fully vested In determining whether the grant is large enough, only an analysis of percentage ownership is meaningful. Nominal figures themselves, such as quot100,000 optionsquot, have no meaning without comparison to these other figures. A person experienced in your chosen industry may be able to provide an estimate of typical ownership ranges for executives of certain responsibility levels. It is crucial to consider the effect of the future dilution of your potential ownership interest resulting from anticipated financing rounds. 15) Upside potential. It is not enough simply to assume that quotthe sky is the limitquot for what your stock options may someday be worth. This assumption can lead to making unnecessary and costly compromises in other important areas of your compensation package. Instead, consider a reasonable success scenario, possibly an IPO or an acquisition. Remember that unless the company takes the extraordinary step of granting you options at an exercise price below the current fair market value of the shares, on the date of grant the exercise price and the value of the stock are the same. Other than the time value of the option, which can be quite valuable, the option is not yet quotin the moneyquot. The value of the companys stock must appreciate before your options are quotin the moneyquot -- that is, worth exercising. Calculate your ownership percentage of the potential aggregate market value of the entire company in the future, less the exercise cost of your options, discounted by the probability that this success will actually be achieved. Discount further to account for the numerous liquidity hurdles that exist for executives seeking to sell shares. Is this number what you think it needs to be in light of the other elements of your compensation package and job responsibilities 16) Vesting options. How many years must you work before you are vested in the entire number of options being presently offered Recent developments indicate that, given the volatility of corporate fortunes, especially in the technology area, the odds of remaining happily employed with one company for four years may be lower than previously anticipated. Is there a quotcliffquot, a waiting period, before your options begin to vest It is common for a four year stock grant to vest one-quarter after twelve months, and to vest monthly thereafter over the remaining three years. Many developments can occur in both the companys life and your personal life to cause you to terminate your service as an employee before that cliff has ended, leaving you with no vested options for your experience. Likewise, some grants vest only annually. Consider negotiating a better vesting schedule. Most stock option plans allow the Board or management to set variations in vesting schedules with the stroke of their lawyers pen. 17) Exercising vested options. Pay attention to how long you have to exercise vested shares after leaving employment with the company. Usually, this period is 90 days or less. Options, as incentives for performance, seek to keep employees in the employ of the company. Once you leave, the company wants to quotdivestquot you of your unexercised options. If the options are not quotin the moneyquot -- valuable -- at some point during that period, you are not economically motivated to exercise them, and they will expire worthless. This post-employment exercise period can sometimes be profitably extended through negotiation. 18) Stock option documents. The documents setting forth your stock option grant and the plan under which the options are granted are crucial documents that you (or more fruitfully, your professional advisor) need to read prior to executing an Offer Letter. Additional issues to focus on, other than those set forth above, include what happens to your options in the event of a merger or acquisition of the company, whether you can engage in a cashless exercise, what happens in the event you leave employment voluntarily, or are terminated by the company with or without quotcausequot as that term is defined and what restrictions exist on sale of stock acquired pursuant to the options, both before and after an IPO. 19) Termination of employment. Think hard about the need to protect yourself from the risks of joining an emerging company that may not be in a position to control its own destiny. Executives coming from stable and lucrative established companies or careers, relocating, joining troubled companies or otherwise destabilizing their careers in order to accept a job offer should negotiate a severance package and the terms under which it is triggered in advance, in the Offer Letter. While this sounds defeatist, it is the ultimate way to exercise substantial control over your destiny. Most technology companies craft employment to be at-will in states that allow it (even for their most senior executives). This in essence means that the employee has no future right to be employed by the company, even on the first day of the job. While it is framed that the employee likewise has no obligation to stay with the company, this is a right the employee already has -- it is nearly impossible to get a court to require an individual to perform services against their will. When you begin to consider all of your professional and financial interests at stake in an employment relationship, you recognize that at-will employment presents significant risks. 20) More on termination. While it is possible to negotiate an employment contract providing for employment (or continued salary and benefits) for a specific period of time, that is beyond the scope of this article. Suffice it to say that guaranteed employment contracts of this type are disfavored in the world of technology companies. Protections are more typically provided instead through severance benefits in the event of termination. As with all of the issues raised in this article, professional advice is advisable to obtain the desired results. Reduced to the most basic concepts, termination of employment can occur through your voluntary resignation, termination for quotcausequot by the employer (best defined for the employee as limited to some kind of illegality or other objectively improper conduct on the part of the employee), termination without cause (covering terminations resulting from budget cuts, layoffs, changes in strategy, poor job performance or no reason at all), disability or death. You can define what compensation should be paid under each of the foregoing circumstances, with compensation forms including, for a period of time, continued salary, continued payment of bonuses, continued employee benefits including health insurance, continued vesting (or acceleration) of stock options, lump sum payments, retention of company office equipment or peripherals, provision of favorable job references, continuation of e-mail and voice mail, etc. 21) Even more on termination. An artfully crafted deal may further provide additional protections and consideration to the executive in the event of a merger or acquisition of the company, impending insolvency, a detrimental change in your salary, bonus opportunity, job title, job function, job responsibilities or reporting relationships or the failure of the company to promote you to a certain position within a fixed period of time. The available protections and consideration include accelerated vesting of options and the payment of the severance benefits previously discussed above. The only limit to these protections is the job candidates (and advisors) imagination. It is crucial to review your Offer Letter and other documents proffered to you prior to or after the start of employment (or better, have them reviewed by a professional) for elements of a non-competition agreement. These agreements seek to prevent you from working for another company for a period of time after leaving the company. Depending on the state you live in, where your employer is located and where you want to work next, these agreements are either valid and enforceable, or largely unenforceable. They can catastrophically prevent you from earning a living in your chosen profession for a period of years. Non-competes need to be narrowly tailored if they are to be acceptable to you at all, and it is advisable to carefully define when they are triggered, such as depending upon whether the employee leaves voluntarily or is terminated by the company. Better yet, an employee subject to a non-compete should require that the company provide a lump sum payment of salary and benefits in advance upon termination of employment for the potential period of subsequent unemployment imposed by the company. 23) Non-solicitations, confidentiality and invention assignments You will likely also be requested to enter, either in the Offer Letter or in related employment documents, an agreement not to directly or indirectly solicit the employees of the company to join another venture for a period of time, an agreement to protect the confidences of the company as defined for a period of time, with penalties and remedies for your breach set forth in detail, and to assign ownership of all inventions and other intellectual property created by you while an employee and to assist the company in obtaining patents and other expressions of ownership of such intellectual property by the company. Conceptually, these documents are all very commonly agreed to without significant negotiation by employees. Nonetheless, a properly experienced lawyer can advise you in detail whether these types of provisions contain non-standard terms that impair your rights to an unusual and unacceptable degree. 24) Other benefits. You can negotiate to set the number of weeks of vacation to which you are entitled and your right to be paid for unused vacation days at the end of your employment. You can protect yourself against waiting periods for employee benefits to kick in, having the company reimburse any expenses resulting from such delays (such as paying your COBRA during the interim). You can define special office equipment to be provided to you (Blackberry pagers and cell phones and the related service plans, reimbursement for home office communication expenses and equipment), whether you can travel first or business class on business trips, essentially anything that is important to you and reasonable for the company to accept in order to obtain your services. I hope the foregoing has been helpful and has stimulated your thinking about what you might seek to negotiate for in your new position and how you might go about successfully obtaining it. Certainly a decent sized book could explore many more of the nuances which arise in each case. I sincerely hope this modest effort at setting forth a real-world approach to executive compensation negotiations has helped to fill the gap in freely-available information on this important subject. I cannot overstate how valuable an experienced legal advisor can be in evaluating an Offer Letter or Employment Agreement, and all of the related documents (the stock option plan document, the stock option grant document, the confidentiality agreement, the invention assignment agreement, the non-solicitation agreement and the non-compete agreement). Focusing on the many suggestions above, it is likely that the right advisor could help you obtain additional compensation and terms that would cover and possibly exceed the cost of obtaining such advice. When your deal is done, dont forget to enjoy your good fortune. Emerging companies provide an incredibly challenging work experience, respectable standards of living, and the rare possibility of earning real wealth that can transform the lives of you and your family. After employing the concepts in this article to make what I hope will the best deal yet of your career, Im certain you will give your employer the benefit of the bargain and reward it for its belief in your capabilities -- by earning every dollar, and then some, with outstanding job performance. Copyright 2002-2009 Gary A. Paranzino The author represents individuals who are negotiating new employment arrangements. Many clients work with Gary Paranzino behind the scenes to set a strategy for enhancing their job offers. For information on negotiating a better severance package upon leaving a job, see the authors related article here . Gary A. Paranzino. admitted to practice in California and New York Gary Paranzino has practiced law for over 22 years. He served as General Counsel and Chief Legal Officer for two prominent venture-funded technology companies, PointCast and Ashford, where he negotiated and drafted offer letters, employment agreements and separation agreements for CEOs, executives and employees. Previously, he represented Wall Street firms and media companies in high-profile litigation in New York. He is a graduate of Cornell University and its Law School. Today, in private practice, he spends a significant proportion of his time representing executives and employees entering and leaving technology companies, financial firms and multinational corporations. Visit Paranzinos web site for more information. Disclaimer This article provides general background information only. It is not a substitute for obtaining professional advice based upon the unique circumstances of your personal situation and your applicable local law. No attorney-client relationship is created by a visitor reading or acting upon the contents of this web site. An attorney-client relationship can only be created with memy law firm by entering into a written, executed engagement or retainer agreement. If you are interested, please visit my web site to contact me to discuss potentially becoming a client. How to Evaluate a Job Offer Letter and Negotiate a Better Deal: A Lawyers View by Gary A. ParanzinoWe have updated the terms and conditions of our Rocket Lawyer On Callreg Service Level Agreement that apply to your use of the platform and products and services provided by Rocket Lawyer. Leia atentamente o Contrato de nível de serviço, uma vez que governa a relação entre você e Rocket Lawyer e, continuando usando o Rocket Lawyer, você concorda em ficar vinculado pelos termos e condições atualizados. Se você tiver dúvidas, comentários ou preocupações, entre em contato conosco no attorneyservicesrocketlawyer. 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