exv10w1





Exhibit 10.1



FORRESTER RESEARCH, INC.

STOCK OPTION PLAN FOR DIRECTORS, as amended




1. DEFINED TERMS




     Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets
forth certain operational rules related to those terms.



2. PURPOSE




     The Plan has been established to advance the interests of the Company by providing for the
grant of Stock Options to Eligible Directors.



3. ADMINISTRATION




     The Administrator has discretionary authority, subject only to the express provisions of the
Plan, to interpret the Plan; determine eligibility for and grant Stock Options; determine, modify
or waive the terms and conditions of any Stock Option; prescribe forms, rules and procedures; and
otherwise do all things necessary to carry out the purposes of the Plan. Determinations of the
Administrator made under the Plan will be conclusive and will bind all parties.



4. LIMITS ON AWARDS UNDER THE PLAN




     (a) Number of Shares. A maximum of four hundred fifty thousand (450,000) shares of
Stock may be delivered under the Plan.  Shares of Stock, if any, withheld by the Company
in payment of the exercise price of a Stock Option shall not be treated as delivered for purposes
of the preceding sentence.



     (b) Type of Shares. Stock delivered by the Company under the Plan may be authorized
but unissued Stock or previously issued Stock acquired by the Company. No fractional shares of
Stock will be delivered under the Plan.



5. ELIGIBILITY AND PARTICIPATION




     Only Eligible Directors shall be eligible to be awarded Stock Options under, and thereby to
participate in, the Plan.



6. RULES APPLICABLE TO STOCK OPTIONS




     (a) Automatic Awards



          (1) Number of Stock Options; Time of Grant; Term. On the date of each annual meeting
of stockholders of the Company (beginning with the annual meeting of stockholders at which the Plan
is approved), each individual who is then an Eligible Director, including any Eligible Director
elected to the Board on such date but not including any individual who ceases to be a member of the
Board on such date, shall automatically be granted






 









 







an Annual Award. In addition, each individual who first becomes an Eligible Director between
annual meetings shall be granted an Interim Award on the date he or she first becomes an Eligible
Director. Subject to Section 7 and the terms of the award, (i) each Annual Award shall entitle the
Eligible Director to acquire 12,000 shares of Stock, and (ii) each Interim Award shall entitle the
Eligible Director to acquire 6,000 shares of Stock. Unless earlier exercised or terminated in
accordance with the Plan, each Automatic Award shall have a term of ten (10) years from the date of
grant.




          (2) Exercise Price. The per-share exercise price of each Automatic Award shall be the
per-share fair market value of the Stock on the date of grant, as determined by the Administrator.




          (3) Vesting. Unless earlier terminated and subject to Section 7 below, each Automatic
Award shall vest (become exercisable) as to one quarter (25%) of the shares subject thereto on (a)
in the case of an Interim Award, on the date of grant and on each of the next three anniversaries
of that date, and (b) in the case of an Annual Award, the first, second, third and fourth
anniversaries of the date of grant




     (b) Discretionary Awards



          (1) Grant. In addition to such Automatic Awards as may be granted pursuant to Section
6(a) above, the Administrator may grant Discretionary Awards to any Eligible Director at any time,
for such number of shares as the Administrator may determine in its discretion.




          (2) Exercise Price; Other Terms. Each Discretionary Award shall be exercisable at a
price per share determined by the Administrator in connection with the grant that is not less than
the per-share fair market value of the Stock on the date of grant, as determined by the
Administrator. Each Discretionary Award shall be subject to such vesting and other terms, not
inconsistent with the express provisions of the Plan, as the Administrator may determine in its
discretion.




     (c) All Awards



          (1) Transferability. A Stock Option may not be transferred other than by will or by
the laws of descent and distribution and during the Eligible Director’s lifetime may be exercised
only by the Eligible Director. Notwithstanding the foregoing, the Administrator in its discretion
may permit any Eligible Director to transfer any or all of his or her Stock Options in a
gratuitous transfer to a family member or a family trust, family partnership or similar entity.




          (2) Time and Manner of Exercise; Payment of Exercise Price. A Stock Option will not
be deemed to have been exercised until the Administrator receives a notice of exercise (in form
acceptable to the Administrator) signed by the appropriate person and accompanied by the exercise
price. If the Stock Option is exercised by any person other than the Participant, the
Administrator may require satisfactory evidence that the person exercising the Stock Option has
the right to do so. The exercise price must be paid (i) by cash or check acceptable to the
Administrator, or (ii) through the delivery of shares of Stock that have been




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outstanding for at least six months (unless the Administrator approves a shorter period) and
that have a fair market value equal to the exercise price, or (iii) through a broker-assisted
exercise program acceptable to the Administrator, or (iv) by other means acceptable to the
Administrator, or (v) by any combination of the foregoing permissible forms of payment. The
delivery of shares in payment of the exercise price under clause (ii) above may be accomplished
either by actual delivery or by constructive delivery through attestation of ownership, subject to
such rules as the Administrator may prescribe.




          (3) Termination of Service. If an Eligible Director ceases for any reason other than
death to be a member of the Board, all Automatic Awards and, unless otherwise provided in the terms
of the Award, all Discretionary Awards then held by the Eligible Director that are not then vested
shall immediately terminate and all other Automatic Awards and Discretionary Awards then held by
the Eligible Director shall remain exercisable for a period of three (3) months or until the last
day of the applicable ten-year term, if earlier, and then (except to the extent previously
exercised) shall immediately terminate. In the event of an Eligible Director’s death, except as the
Administrator shall otherwise provide, all Automatic Awards and Discretionary Awards held by the
Eligible Director not then exercisable shall terminate. All Automatic Awards and Discretionary
Awards held by an Eligible Director or his or her permitted transferees, if any, immediately
prior to the Eligible Director’s death, to the extent exercisable, (i) will remain exercisable for
the lesser of the one-year period ending with the first anniversary of the Eligible Director’s
death or (ii) the period ending on the latest date on which such Automatic Award or Discretionary
Award could have been exercised without regard to this Section 6(c)(3), and will thereupon
terminate.




          (4) Dividend Equivalents, Etc. The Administrator may provide for the payment of
amounts in lieu of cash dividends or other cash distributions with respect to Stock subject to a
Stock Option, subject in each case to compliance with the requirements of Section 409A to the
extent applicable.




          (5) Rights Limited. Nothing in the Plan will be construed as giving any Eligible
Director the right to continued service with the Company or any rights as a stockholder except as
to shares of Stock actually issued under the Plan.




7. EFFECT OF CERTAIN TRANSACTIONS




     (a) Mergers, etc. Except as otherwise provided in a Stock Option, the following
provisions shall apply in the event of a Covered Transaction:



          (1) Assumption or Substitution. If the Covered Transaction is one in which there is
an acquiring or surviving entity, the Administrator may provide for the assumption of some or all
outstanding Stock Options or for the grant of new awards in substitution therefor by the acquiror
or survivor or an affiliate of the acquiror or survivor to any Eligible Director who will continue
to provide services to the acquiring or surviving entity.







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          (2) Cash-Out of Awards. If the Covered Transaction is one in which holders of Stock
will receive upon consummation a payment (whether cash, non-cash or a combination of the
foregoing), the Administrator may provide for payment (a “cash-out”), with respect to some or all
Awards, equal in the case of each affected Stock Option to the excess, if any, of (A) the fair
market value of one share of Stock (as determined by the Administrator in its reasonable
discretion) times the number of shares of Stock subject to the Stock Option, over (B) the aggregate
exercise or purchase price, if any, under the Stock Option, in each case on such payment terms
(which need not be the same as the terms of payment to holders of Stock) and other terms, and
subject to such conditions, as the Administrator determines. 




          (3) Acceleration of Certain Awards. If the Covered Transaction (whether or not there
is an acquiring or surviving entity) is one in which there is no assumption, substitution or
cash-out under Section 7(a)(1) above), each Stock Option requiring exercise will become fully
exercisable, prior to the Covered Transaction, on a basis that gives the holder of the Stock Option
a reasonable opportunity, as determined by the Administrator, following exercise of the Stock
Option to participate as a stockholder in the Covered Transaction.




          (4) Termination of Awards Upon Consummation of Covered Transaction. Each Stock Option
(unless assumed pursuant to Section 7(a)(1) above), will terminate upon consummation of the Covered
Transaction.




          (5) Additional Limitations. Any share of Stock delivered pursuant to Section 7(a)(2)
or Section 7(a)(3) above with respect to a Stock Option may, in the discretion of the
Administrator, contain such restrictions, if any, as the Administrator deems appropriate to reflect
any performance or other vesting conditions to which the Stock Option was subject.




     (b) Change in and Distributions With Respect to Stock



          (1) Basic Adjustment Provisions. In the event of a stock dividend, stock split or
combination of shares (including a reverse stock split), recapitalization or other change in the
Company’s capital structure, the Administrator will make appropriate adjustments to the maximum
number of shares specified in Section 4(a) that may be delivered under the Plan and to the share
amounts described in Section 6(a)(1), and will also make appropriate adjustments to the number and
kind of shares of stock or securities subject to Stock Options then outstanding or subsequently
granted, any exercise prices relating to Stock Options and any other provision of Stock Options
affected by such change.




          (2) Continuing Application of Plan Terms. References in the Plan to shares of Stock
will be construed to include any stock or securities resulting from an adjustment pursuant to this
Section 7.




8. LEGAL CONDITIONS ON DELIVERY OF STOCK




     The Company will not be obligated to deliver any shares of Stock pursuant to the Plan or to
remove any restriction from shares of Stock previously delivered under the Plan until: (i) the
Company is satisfied that all legal matters in connection with the issuance and delivery of such
shares have been addressed and resolved; (ii) if the outstanding Stock is at the time of delivery



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listed on any stock exchange or national market system, the shares to be delivered have been
listed or authorized to be listed on such exchange or system upon official notice of issuance; and
(iii) all conditions of the Award have been satisfied or waived. If the sale of Stock has not been
registered under the Securities Act of 1933, as amended, the Company may require, as a condition to
exercise of the Award, such representations or agreements as counsel for the Company may consider
appropriate to avoid violation of such Act. The Company may require that certificates evidencing
Stock issued under the Plan bear an appropriate legend reflecting any restriction on transfer
applicable to such Stock, and the Company may hold the certificates pending lapse of the applicable
restrictions.




9. AMENDMENT AND TERMINATION




     The Administrator may at any time or times amend the Plan or any outstanding Stock Option for
any purpose which may at the time be permitted by law, and may at any time terminate the Plan as to
any future grants of Stock Options; provided, that except as otherwise expressly provided in the
Plan the Administrator may not, without the Eligible Director’s consent, alter the terms of a Stock
Option so as to affect adversely the Eligible Director’s rights under the Stock Option, unless the
Administrator expressly reserved the right to do so at the time of the Stock Option grant. Any
amendments to the Plan shall be conditioned upon stockholder approval only to the extent, if any,
such approval is required by law (including the Code and applicable stock exchange or Nasdaq
requirements), as determined by the Administrator.



10. OTHER COMPENSATION ARRANGEMENTS




     The existence of the Plan or the grant of any Stock Option will not in any way affect the
Company’s right to grant an Eligible Director other compensation outside of the Plan.



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EXHIBIT A




Definition of Terms



     The following terms, when used in the Plan, will have the meanings and be subject to the
provisions set forth below:



     “Administrator”: The Compensation Committee, except that the Compensation Committee may
delegate to such persons as it determines such ministerial tasks as it deems appropriate. In the
event of any delegation described in the preceding sentence, the term “Administrator” shall include
the person or persons so delegated to the extent of such delegation.



     “Annual Award”: An Automatic Award described in Section 6(a)(1)(i).



     “Automatic Award”: A Stock Option described in Section 6(a)(1).



     “Board”: The Board of Directors of the Company.



     “Code”: The U.S. Internal Revenue Code of 1986 as from time to time amended and in effect, or
any successor statute as from time to time in effect.



     “Compensation Committee”: The Compensation and Nominating Committee of the Board.



     “Company”: Forrester Research, Inc.



     “Covered Transaction”: Any of (i) a consolidation, merger, or similar transaction or series
of related transactions, including a sale or other disposition of stock, in which the Company is
not the surviving corporation or which results in the acquisition of all or substantially all of
the Company’s then outstanding common stock by a single person or entity or by a group of persons
and/or entities acting in concert, (ii) a sale or transfer of all or substantially all the
Company’s assets, or (iii) a dissolution or liquidation of the Company. Where a Covered
Transaction involves a tender offer that is reasonably expected to be followed by a merger
described in clause (i) (as determined by the Administrator), the Covered Transaction shall be
deemed to have occurred upon consummation of the tender offer.



     “Discretionary Award”: A Stock Option described in Section 6(b)(1).



     “Eligible Director": A member of the Board who is not a present or former employee of the
Company or of any subsidiary of the Company.



     “Interim Award”: An Automatic Award described in Section 6(a)(1)(ii).



     “Plan”: The Forrester Research, Inc. Stock Option Plan for Directors as from time to time
amended and in effect.



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     “Stock”: Common Stock of the Company, par value $.01 per share.



     “Stock Option”: An option entitling the holder to acquire shares of Stock upon payment of the
exercise price.




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