8x8 2009 Annual Report Download - page 84

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(p) “Nonstatutory Stock Option” means an Option not intended to be
(as set forth in the Option Agreement) or which does not qualify as an Incentive Stock Option.
(q) “Officer” means any person designated by the Board as an officer
of the Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.
(r) “Option” means a right granted under Section 6 to purchase Stock
pursuant to the terms and conditions of the Plan. An Option may be either an Incentive Stock
Option or a Nonstatutory Stock Option.
(s) “Option Agreement” means a written agreement between the
Company and a Participant setting forth the terms, conditions and restrictions of the Option
granted to the Participant and any shares acquired upon the exercise thereof. An Option
Agreement may consist of a form of “Notice of Grant of Stock Option” and a form of “Stock
Option Agreement” incorporated therein by reference, or such other form or forms as the Board
may approve.
(t) “Ownership Change Event” means the occurrence of any of the
following with respect to the Company: (i) the direct or indirect sale or exchange in a single or
series of related transactions by the stockholders of the Company of more than fifty percent
(50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company
is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the
Company.
(u) “Parent Corporation” means any present or future “parent
corporation” of the Company, as defined in Section 424(e) of the Code.
(v) “Participant” means any eligible person who has been granted one
or more Awards.
(w) “Participating Company” means the Company or any Parent
Corporation, Subsidiary Corporation or Affiliate.
(x) “Participating Company Group” means, at any point in time, all
entities collectively which are then Participating Companies.
(y) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as
amended from time to time, or any successor rule or regulation.
(z) “Securities Act” means the Securities Act of 1933, as amended.
(aa) “Service” means a Participant’ s employment or service with the
Participating Company Group, whether in the capacity of an Employee, a Director or a
Consultant. A Participant’ s Service shall not be deemed to have terminated merely because of a
change in the capacity in which the Participant renders Service to the Participating Company
Group or a change in the Participating Company for which the Participant renders such Service,
provided that there is no interruption or termination of the Participant’ s Service. Furthermore, a
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