Document:

CENTRINITY STOCK OPTION PLAN

 EXHIBIT 4.1 
  

OPEN TEXT CORPORATION 
  
 CENTRINITY STOCK OPTION PLAN 
  
 1. PURPOSE OF THE PLAN 
  
 1.1 This Centrinity Stock Option Plan has been established by the Company to provide long-term incentives to attract, motivate and retain certain key employees, officers and directors of, and consultants providing
services to, the Company. 
  
 2. DEFINITIONS 
  
 2.1 In this Plan, the following terms have the following meanings: 
  
 “Associate” has the meaning ascribed to that term in the Securities
Act (Ontario); 
  
 “Board” means the board of directors of
the Company; 
  
 “Business Day” means any day other than a
Saturday, a Sunday or a statutory holiday observed in the Province of Ontario; 
  
 “Company” means Open Text Corporation, its subsidiaries and their respective successors and assigns, and any reference in the Plan to action by the Company means action by or under the authority of the Board or any person
or the Committee that has been designated for that purpose by the Company; 
  
 “Committee” means a committee, if any, created by the Board to administer the Plan pursuant to the provisions contained herein; 
  
 “Consultant” means a person providing on-going services to the Company; 
  
 “Date of Grant” of an Option means the date the Option is granted to a Participant under the Plan; 
  
 “Designated Number” has the meaning ascribed to it in Subsection 3.3(a)
hereof; 
  
 “Designated Percentage” has the meaning ascribed to
it in Subsection 3.3(c) hereof; 
  
 “Earliest Exercise Date” has
the meaning ascribed to it in Subsection 3.3(d) hereof; 
  
 “Effective
Date” means the 1st day of November, 2002; 
  
 “Eligible
Director” has the meaning ascribed to it in Section 3.2 hereof; 
  
 “Eligible Employee” has the meaning ascribed to it in Section 3.1 hereof; 
  
 “Exercise Notice” has the meaning ascribed to it in Subsection 3.6(a) hereof; 
  
 “Expiry Time” means, in relation to an Option, 5:00 pm (Toronto time) on the Latest Exercise Date; 
  

 “Insider” means: 
  

	(i)	an insider as defined in the Securities Act (Ontario), other than a person who falls within that definition solely by virtue of being a director or senior officer of a
subsidiary of the Company; and 

  

	(ii)	an Associate of any person who is an insider by virtue of (i), above; 

  
 “ISO” has the meaning ascribed to it in Section 9.1 hereof; 
  
 “Latest Exercise Date” has the meaning ascribed to it in Subsection 3.3(e) hereof; 
  
 “Market Price” on any date means, in respect of the Shares, the closing price of the Shares on the trading day immediately
preceding such date on the quotation system or stock exchange on which the greatest volume of trading of Shares has occurred on that trading day; 
  
 “Offeror” or “offeror” has the meaning ascribed to that term in the Securities Act (Ontario); 
  
 “Option” means a right granted under the Plan to a Participant to purchase
Shares in accordance with the Plan; 
  
 “Option Price” has the
meaning ascribed to it in Subsection 3.3(b) hereof; 
  
 “Option
Year” in respect of an Option means the year commencing on the Earliest Exercise Date of the Option or on any anniversary of such date, and ending prior to or on the Latest Exercise Date; 
  
 “Outstanding Issue” means the aggregate number of Shares that are
outstanding immediately prior to the Share issuance in question, excluding Shares which have been issued pursuant to Share Compensation Arrangements within the preceding one year period; 
  
 “Participant” means an Eligible Employee or Eligible Director who has agreed to participate in the Plan on such terms as
the Company may specify at the time he or she is designated as an Eligible Employee or Eligible Director respectively; 
  
 “Plan” means this Centrinity Stock Option Plan, as amended and restated from time to time; 
  
 “Shares” means common shares of the Company, and include any shares of the Company into which such shares may be converted,
reclassified, subdivided, consolidated, exchanged or otherwise changed, whether pursuant to a reorganization, amalgamation, merger, arrangement or other form of reorganization; 
  
 “Share Compensation Arrangement” means a stock option, Stock Option Plan, employee stock purchase plan or any other
compensation or incentive plan involving the issuance or potential issuance of Shares to Participants, including a purchase of Shares from treasury which is financially assisted by the Company by way of a loan, guarantee or otherwise; 
  
 “Take-over Bid” means a take-over bid, as defined in the Securities
Act (Ontario), which is a “formal bid” as defined in such Act, and which is made for all of the issued and outstanding Shares in the capital of the Company and may exclude (i) those Shares in the capital of the Company which are then
owned by the offeror under such Take-over Bid, and/or (ii) those Shares in the capital of the Company which the offeror under such Take-over Bid then otherwise has, directly or indirectly, the right to acquire. 
  
 “Unexercisable Shares” has the meaning ascribed to it in Subsection 3.6(b)
hereof; 
  
 “US Optionee” has the meaning ascribed to it in
Section 9.1 hereof; and 
  
 “Vesting Date” has the meaning
ascribed to it in Subsection 3.3(c) hereof. 
  

 2.2 In this Plan, unless the context requires otherwise, references to the male gender include the female gender, words
importing the singular number may be construed to extend to and include the plural number, and words importing the plural number may be construed to extend to and include the singular number. 
  
 3. GRANT OF OPTIONS AND TERMS 
  
 3.1 The Company may, from time to time, designate one or more bona fide full-time
employees of the Company or Consultants as “Eligible Employees” for the purposes of the Plan. If an employee agrees to participate in the Plan on such terms as the Company may specify at the time he or she is designated as an Eligible
Employee, he or she shall become a Participant in the Plan. 
  
 3.2 The Company
may, from time to time, designate one or more members of the Board, not otherwise able to be designed as Eligible Employees, as an “Eligible Director” for the purposes of the Plan. If an Eligible Director agrees to participate in the Plan
on such terms as the Company may specify at the time he or she is designated as an Eligible Director, he or she shall become a Participant in the Plan. 
  
 3.3 The Company may, from time to time, grant an Option to a Participant to acquire Shares in accordance with the Plan. In granting such Option, subject to the provisions
hereof, the Company shall designate, 
  

	 	(a)	the maximum number (the “Designated Number”) of Shares which the Participant may purchase under the Option; 

  

	 	(b)	the price (the “Option Price”) per Share at which the Participant may purchase his or her Shares under the Option, which price shall be determined by the Company in
accordance with Section 3.4 hereof; 

  

	 	(c)	a percentage of the Designated Number (the “Designated Percentage”), determined in accordance with Section 3.5 hereof, representing the maximum number of Shares that may
be purchased by a Participant pursuant to the exercise of that Option in each year during the term of such Option, and the date after which such Shares may be purchased (the “Vesting Date”); provided that if a Participant exercises an
Option and purchases fewer Shares than the Designated Percentage in any year during the term of the Option, any remaining portion of the Designated Percentage of Shares shall be available for purchase at any time subsequent to the Vesting Date for
such Option and prior to the Expiry Time, in addition to Shares otherwise becoming available to the Participant for purchase after any subsequent Vesting Date. 

  

	 	(d)	the earliest date (the “Earliest Exercise Date”) on which the Option may be exercised, which may be the Date of Grant; 

  

	 	(e)	the latest date (the “Latest Exercise Date”) on which the Option may be exercised, which shall be no later than ten (10) years after the Date of Grant; and

  

	 	(f)	with respect to Options granted pursuant to Section 9 hereof, whether the Option is intended to constitute an ISO. 

  
 3.4 The Option Price in respect of an Option shall be determined by the Company, but shall be
not less than the Market Price of the Company’s Shares on the Date of Grant of the Option provided that if the Shares are not then traded on a stock exchange or on a quotation system, the Option Price shall be the fair market value of the
Shares as determined in good faith by the Board. 
  

 3.5 The Designated Percentage in respect of an Option shall be determined by the Company in its sole discretion, however,
if the Company does not specify otherwise, then the Designated Percentage shall be twenty-five percent (25%). 
  
 3.6 If a Participant should die and the circumstances specified in Section 3.7 had not occurred in relation to such Participant and such Participant, at the time of his or her death, held an Option(s) in respect of
which the Expiry Time had not then occurred: 
  

	 	(a)	in the case of each Option so held by the deceased Participant which had vested and was exercisable with respect to some or all of the Shares forming the subject matter thereof as
at the date of the death of the deceased Participant, the legal representatives of the deceased Participant shall be entitled to send a notice in writing (an “Exercise Notice”) to the Company advising that they wish to exercise such Option
which notice, to be effective, must be actually received by the Company by no later than the earlier of 5:00 pm (Toronto time) on the date which is the 180th day following the date of the death of such deceased Participant and the Expiry Time, and
must specify the number of Shares in respect of which such Option is wished to be exercised (provided that such exercise can only be in respect of up to that number of Shares that the deceased Participant could have exercised such Option as at the
date of his or her death, subject to Subsection 3.6(b) hereof). In the event that: 

  

	 	(i)	an effective Exercise Notice is actually received by the Company by no later than the earlier of 5:00 pm (Toronto time) on the date which is the 180th day following the date of the
death of such deceased Participant and the Expiry Time, then the Company shall issue to the estate of the deceased Participant that number of Shares as were specified in the Exercise Notice (provided that the maximum number of Shares which can be
issued shall not exceed that number of Shares for which the deceased Participant could have exercised such Option as at the date of his or her death, subject to Subsection 3.6(b) hereof), which issuance shall occur as soon as practicable thereafter.
If the Exercise Notice so received is in respect of less than the maximum number of Shares for which the deceased Participant could have exercised such Option as at the date of his or her death, such Option shall, subject to Subsection 3.6(b)
hereof, in all respects cease and terminate and be of no further force or effect whatsoever as to such of the Shares in respect of which such Option had not been previously exercised; and 

  

	 	(ii)	an effective Exercise Notice is not actually received by the Company by the earlier of 5:00 pm (Toronto time) on the date which is the 180th day following the date of the death of
such deceased Participant and the Expiry Time, such Option shall, subject to Subsection 3.6(b) hereof, in all respects cease and terminate and be of no further force or effect whatsoever as to such of the Shares in respect of which such Option had
not been previously exercised; 

  

	 	(b)	in the case of each Option so held by the deceased Participant which: 

  

	 	(i)	was not vested and was not exercisable with respect to all of the Shares forming the subject matter thereof as at the date of the death of the deceased Participant; and/or

  

	 	(ii)	was not exercised on or prior to the earlier of 5:00 pm (Toronto time) on the date which is the 180th day following the death of such deceased Participant and the Expiry Time with
respect to all of the Shares in respect of which it could have been exercised as at the date of the death of the deceased Participant, 

  
 (the Shares in respect of which such Option was then not exercisable or exercised being collectively referred to in this Subsection 3.6(b) as the
“Unexercisable Shares”) such Option may, with the prior written consent of the Company (which consent may be given or withheld by the 

  

 
Company in its sole and arbitrary discretion), be exercised by the deceased Participant’s legal representatives with respect to up to that number of the
Unexercisable Shares as the Company may, in its sole and arbitrary discretion, designate and advise such legal representatives of by notice in writing given within one year following the date of the death of the deceased Participant, provided that
any such exercise is made by the deceased Participant’s legal representatives pursuant to a written notice of exercise given by them to the Company on or prior to the earlier of 5:00 pm (Toronto time) on the date which is the 60th day following
the giving of such notice by the Company and the Expiry Time and, if such a notice of exercise is given by the legal representatives of the deceased Participant, the Company shall issue to the estate of the deceased Participant that number of Shares
as were specified in the notice of exercise, which issuance shall occur as soon as practicable thereafter. 
  

	3.7  (a)  	Except as otherwise provided in subsection 3.7(b) or in a written agreement with the Company, and approved by the Board, if a Participant: 

  

	 	(i)	resigns or is discharged as, or otherwise ceases to be, an employee or officer of the Company; 

  

	 	(ii)	resigns as, or otherwise ceases to be, a director of the Company and such Participant does not become or continue on as an employee of the Company; or 

  

	 	(iii)	was engaged as a Consultant and is not an employee, director or officer of the Company, and such Participant resigns from such engagement, the engagement is terminated or otherwise
ceases to be so engaged, 

  
 immediately after the
earlier of 5:00 pm (Toronto time) on the 90th day following the date of the occurrence of any such resignation, discharge, removal or termination other than by reason of death as contemplated in Section 3.6 (and without the requirement for any
further act or formality including, without limitation, the giving of any notices) and the Expiry Time each and every Option granted to such Participant under the Plan, which has not been exercised by said time shall in all respects immediately
cease and terminate and be of no further force or effect whatsoever as to the Shares in respect of such Option, regardless of whether or not such Option had vested with respect to such Shares. 
  

	 	(b)	Except as otherwise provided in a written agreement with the Company, and approved by the Board, if a Participant: 

  

	 	(i)	is discharged or terminated as an employee or officer of the Company for cause; 

  

	 	(ii)	ceases to be a director of the Company for cause or breach of duty and (A) does not become an employee of the Company or (B) is discharged or terminated as an employee of the
Company for cause; or 

  

	 	(iii)	was engaged as a Consultant and is not an employee, director or officer of the Company, and the engagement is terminated by the Company for cause or breach of duty,

  
 immediately upon the occurrence of any such
discharge, removal or termination other than by reason of death as contemplated in Section 3.6 (and without the requirement of any further act or formality including, without limitation, the giving of any notices) each and every Option granted to
such Participant under the Plan, which had not been exercised prior to such occurrence, shall in all respects immediately cease and terminate and be of no further force or effect whatsoever as to Shares in respect of such Options, regardless of
whether or not such Option had vested with respect to such Shares. 
  

 For greater certainty, the Company shall in its sole and absolute discretion determine whether “cause” or a
“breach of duty” exists with respect to a discharge or termination. 
  
 3.8 Participation in the Plan shall be entirely voluntary and any decision not to participate shall not affect the employment of any Eligible Employee with the Company. 
  
 3.9 The Company shall in its sole discretion, subject only to the terms of this Plan, determine the terms of all Options. 
  
 4. EXERCISE OF PARTICIPANTS’ OPTIONS 
  
 4.1 Subject to earlier termination as provided for in Sections 3.6, 3.7 and 6.3, a
Participant’s Option shall terminate and may not be exercised after the Latest Exercise Date. 
  
 4.2 Other than as provided for in Sections 3.6, 3.7 and 6.3, the exercise of an Option under the Plan shall be made by notice to the Company in writing specifying and subscribing for the number of Shares in respect of
which the Option is being exercised at that time and accompanied by a certified cheque or other means of cash payment satisfactory to the Company in the amount of the aggregate Option Price for such number of Shares. As of the day the Company
receives such notice and such payment, the Participant (or the person claiming through him or her, as the case may be) shall be entitled to be entered on the share register of the Company as the holder of the number of Shares in respect of which the
Option was exercised and as promptly as possible thereafter shall be delivered a certificate representing that number of Shares. 
  
 4.3 Upon the exercise of any Option, the Company shall have the right to require the Participant to remit to the Company an amount sufficient to satisfy all federal,
provincial, state and local withholding tax requirements, if any, prior to the delivery of any certificate or certificates for Shares. 
  
 4.4 Upon the disposition of any Shares acquired through the exercise of an Option, the Company shall have the right to require the Participant to remit to the Company an
amount sufficient to satisfy all federal, provincial, state and local withholding tax requirements, if any, as a condition to the registration of the transfer of such Shares on its books. Whenever payments are to be made under the Plan to the
Company in cash or by certified cheque, such payments shall be net of any amount sufficient to satisfy all federal, provincial, state and local withholding tax requirements. 
  
 5. MAXIMUM NUMBER OF SHARES TO BE ISSUED UNDER THE PLAN 
  
 5.1 The maximum number of Shares which may be issued under Options granted and outstanding pursuant to this Plan by the Company to
Participants is 227,484. 
  
 5.2 Notwithstanding any of the provisions of this
Plan, the number of Shares reserved for issuance to any one person pursuant to options granted under this Plan and under other Share Compensation Arrangements shall not exceed five percent (5%) of the Outstanding Issue and the number of Shares
reserved for issuance pursuant to all options granted to Insiders under this Plan and under other Share Compensation Arrangements shall not exceed fifteen percent (15%) of the Outstanding Issue. In addition, the issuance to any one Insider and such
Insider’s Associates, within a one year period, of Shares issued pursuant to all Share Compensation Arrangements may not exceed five percent (5%) of the Outstanding Issue and the issuance to all Insiders, within a one year period, of Shares
issued pursuant to all Share Compensation Arrangements may not exceed fifteen percent (15%) of the Outstanding Issue. 
  

 6. ANTI-DILUTION AND TAKE-OVER BID PROVISIONS 
  
 6.1 Notwithstanding any other provision of the Plan, in the event of any change in the Shares by reason of any stock dividend, split,
recapitalization, reclassification, amalgamation, arrangement, merger, consolidation, combination or exchange of Shares or distribution of rights to holders of Shares or any other form of corporate reorganization whatsoever, an equitable adjustment
shall be made to any Options then outstanding and in the Option Price in respect of such Options. Such adjustment shall be made by the Board and, subject to applicable law, shall be conclusive and binding for all purposes of the Plan. 
  
 6.2 The Company shall not be required to issue fractional shares in satisfaction of its
obligations hereunder. Any fractional interest in a Share that would, except for the provisions of this Section 6.2, be deliverable upon the exercise of any Option shall be cancelled and not be deliverable by the Company. 
  
 6.3 If a Take-over Bid is made, then, notwithstanding Subsections 3.3(c), (d) and (e) hereof,
but subject to the other provisions of the Plan, the following shall apply: 
  

	 	(a)	The Company may, in its sole and arbitrary discretion, give its express consent to the exercise of any Options which are outstanding at the time that such Take-over Bid was made
regardless of whether such Options have vested in accordance with Subsection 3.3(c). 

  

	 	(b)	If the Company has so expressly consented to the exercise of any Options outstanding at the time that such Take-over Bid was made, the Company shall, immediately after such consent
has been given, give a notice in writing (a “Take-over Bid Notice”) to each Participant then holding unexpired Options (whether vested or not) advising of the making of the Take-over Bid and such notice shall provide reasonable particulars
of the Take-over Bid and shall specify that the Participant may conditionally exercise all or any portion of any such unexpired Options then held by the Participant in accordance with Subsection 6.3(c) below. 

  

	 	(c)	If a Participant wishes to conditionally exercise any such Option, such exercise shall be made by notice in writing to the Company at any time during the period commencing on the
date of the Take-over Bid Notice and ending on the date which is the earlier of the 10th day following the giving of the Take-over Bid Notice and the day immediately preceding the date specified in the Take-over Bid as the last date on which the
offer therein provided for may be taken up. Such notice shall specify and conditionally subscribe for the shares (the “Specified Shares”) issuable upon conditional exercise of such Option and shall be accompanied by a certified cheque or
other means of cash payment satisfactory to the Company in the amount of the aggregate Option Price for such number of Specified Shares. The conditional exercise of the Option and the conditional subscription for the Specified Shares shall be
conditional upon: (i) the Participant tendering the Specified Shares into the Take-over Bid, and (ii) the completion of the Take-over Bid on or before the expiry of the Take-over Bid (which shall include the irrevocable obligation of the offeror to
take up and pay for all Specified Shares deposited under the Take-over Bid). Provided that, if necessary in order to permit such Participant to participate in the Take-over Bid, the Options so exercised shall be deemed to have been exercised and the
issuance of the Specified Shares issuable upon such exercise shall be deemed to have been issued, effective as of the first Business Day immediately prior to the date on which the Take-over Bid was made. 

  

	 	(d)	If, upon the expiry of the applicable Option exercise period specified in Subsection 6.3(c) above, the Take-over Bid is completed and a Participant did not, prior to the expiration
of such exercise period, conditionally exercise the entire or any portion of the Option which such Participant could have exercised in accordance with the provisions of this Section 6.3, then, as of and from the expiry of such exercise period, the
Participant shall cease to have any further right to exercise such Option, in whole or in part, and each such Option shall be deemed to have expired and shall be null and void. 

  

	 	(e)	In no event shall the Participant be entitled to sell the Specified Shares otherwise than pursuant to a Take-over Bid. 

  
 7. LOANS OR GUARANTEES FOR LOANS TO PARTICIPANTS 
  
 7.1 Subject to applicable law and under the applicable rules of any stock exchange upon
which the shares of the Company are listed, the Company may, at any time, in its sole discretion, arrange for the Company to make loans or provide guarantees for loans by financial institutions to assist Participants to purchase Shares upon the
exercise of the Options so granted and to pay any tax exigible upon exercise of the Options. Such loans shall bear interest at such rates, if any, and be on such other terms as may be determined by the Company, provided however, that the repayment
of such loans shall in each case be secured by the Shares purchased with the proceeds of such loans and shall not exceed the term of the Option and the Company shall, in its sole discretion, determine the procedures, documents and other steps
necessary or desirable to secure the repayment of such loans with such Shares. 
  
 8. ACCOUNTS AND STATEMENTS 
  
 8.1 The Company shall maintain
records of the details of each Option granted to each Participant under the Plan, including the Date of Grant, Designated Number, the Option Price of each Option, the Vesting Date or Dates, the Latest Exercise Date or Dates, the number of Shares in
respect of which the Option has been exercised and the maximum number of Shares which the Participant may still purchase under the Option. Upon request therefore from a Participant and at such other times as the Company shall determine, the Company
shall furnish the Participant with a statement setting forth the details of his Options. Such statement shall be deemed to have been accepted by the Participant as correct unless written notice to the contrary is provided to the Company within
thirty (30) days after such statement is given to the Participant. 
  
 9.
OPTIONS GRANTED TO US RESIDENTS OR CITIZENS 
  
 9.1 Any Option granted under
this Plan to a Participant who is a citizen or resident of the United States (including its territories, possessions and all areas subject to the jurisdiction) (a “U.S. Optionee”) may be an incentive stock option (an “ISO”)
within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, of the United States (the “Code”), but only if so designated by the Company in the agreement evidencing such Option. No provision of this Plan, as
it may be applied to a US Optionee, shall be construed so as to be inconsistent with any provision of Section 422 of the Code. Grants of Options to US Optionees which are not ISO’s may be granted pursuant to Section 3 hereof. Notwithstanding
anything in this Plan contained to the contrary, the following provisions shall apply to ISO’s granted to each US Optionee: 
  

	 	(a)	ISO’s shall only be granted to US Optionees who are, at the time of grant, officers, key employees or directors (provided, for purposes of this Section 9 only, such directors
are then also officers or key employees of the Company). Any director of the Company who is a US Optionee shall be ineligible to vote upon the granting of such Option; 

  

	 	(b)	the aggregate fair market value (determined as of the time an ISO is granted) of the Shares subject to ISO’s exercisable for the first time by a US Optionee during any calendar
year under this Plan and all other Stock Option Plans, within the meaning of Section 422 of the Code, of the Company shall not exceed One Hundred Thousand Dollars in US funds (US $100,000); provided that options for Shares which exceed such
aggregate fair market value shall not be void, but shall instead be options which are granted under Section 3 hereof and are not ISOs; 

  

	 	(c)	the Option Price for Shares under each ISO granted to a US Optionee pursuant to this Plan shall be not less than the fair market value of such Shares at the time the Option is
granted, as determined in good faith by the directors at such time; 

  

	 	(d)	if any US Optionee to whom an ISO is to be granted under the Plan at the time of the grant of such ISO is the owner of shares possessing more than ten percent (10%) of the total
combined voting power of all classes of shares of the Company, then the following special provisions shall be applicable to the ISO granted to such individual: 

  

	 	(i)	the Option Price (per Share) subject to such ISO shall not be less than one hundred ten percent (110%) of the fair market value of one Share at the time of grant; and

  

	 	(ii)	for the purposes of this Section 9 only, the option exercise period shall not exceed five (5) years from the Date of Grant; 

  

	 	(e)	no Option may be granted hereunder to a US Optionee following the expiration of ten (10) years after the date on which this Plan is adopted by the Company or the date on which the
Plan is approved by the shareholders of the Company, whichever is earlier; and 

  

	 	(f)	no Option granted to a US Optionee under the Plan shall become exercisable unless and until the Plan shall have been approved by the shareholders of the Company.

  
 10. NOTICES 
  
 10.1 Any payment, notice, statement, certificate or other instrument required or permitted
to be given to a Participant or any person claiming or deriving any rights through him or her shall be given by: 
  

	 	(a)	delivering it personally to the Participant or to the person claiming or deriving rights through him or her, as the case may be; or 

  

	 	(b)	mailing it postage paid (provided that the postal service is then in operation) or delivering it to the address which is maintained for the Participant in the Company’s
records. 

  
 10.2 Any payment, notice, statement, certificate or
instrument required or permitted to be given to the Company shall be given by mailing it postage prepaid (provided that the postal service is then in operation) or delivering it to the Company at the following address: 
  
 Open Text Corporation 
 185 Columbia Street West 
 Waterloo, Ontario

 N2L 5Z5 
  
 Attention: Chief Financial Officer 
  
 10.3 Any payment, notice, statement, certificate or other instrument referred to in Sections 8.1 or 10.2 hereof, if delivered, shall be deemed to have been given or
delivered on the date on which it was delivered or, if mailed (provided that the postal service is then in operation), shall be deemed to have been given or delivered on the second Business Day following the date on which it was mailed. 

 

 11. GENERAL 
  
 11.1 The Company shall have the power to, at any time and from time to time either prospectively or retrospectively, add to, amend, vary, cancel, discontinue or terminate
the Plan or any Option granted under the Plan, subject to any approvals required under applicable law and any prior approvals required under the applicable rules of any stock exchange upon which Shares of the Company are listed. 
  
 11.2 The Company shall have the power to make such rules and regulations for the
administration of this Plan, and to interpret the provisions hereof and of such rules and regulations, as it shall in its sole discretion determine to be appropriate. 
  
 11.3 The determination by the Company of any question which may arise as to the interpretation or implementation of the Plan or any of the
Options granted hereunder shall be final and binding on all Participants and other persons claiming or deriving rights through any of them. 
  
 11.4 The Plan shall enure to the benefit of and be binding upon the Company, its successors and assigns. The interest of any Participant under the Plan or in any Option
shall not be transferable or alienable by him or her either by pledge, assignment or in any other manner whatsoever and, during his lifetime, shall be vested only in him or her, but shall thereafter enure to the benefit of and be binding upon the
legal personal representatives of the Participant in accordance with the terms hereof. 
  
 11.5 The Company’s obligation to issue Shares in accordance with the terms of this Plan and any Options granted hereunder is subject to compliance with the laws, rules and regulations of all public agencies and authorities applicable
to the issuance and distribution of such Shares and to the listing of such Shares on any stock exchange on which any of the Shares of the Company may be listed. As a condition of participating in the Plan, each Participant agrees to comply with all
such laws, rules and regulations and agrees to furnish to the Company all information and undertakings as may be required to permit compliance with such laws, rules and regulations. 
  
 11.6 No Participant shall have any rights as a shareholder in respect of Shares subject to an Option until such Shares have been paid for in
full and issued. 
  
 11.7 No Participant or other person shall have any claim or
right to be granted Options under the Plan. Neither the Plan nor any action taken thereunder shall interfere with the right of the employer of a Participant to terminate that Participant’s employment at any time. Neither any period of notice
nor any payment in lieu thereof upon termination of employment shall be considered as extending the period of employment for the purposes of the Plan. 
  
 11.8 The Board shall be entitled to make such rules, regulations and determinations as it deems appropriate under the Plan in respect of any leave of absence or
disability of any Participant. Without limiting the generality of the foregoing, the Board shall be entitled to determine (i) whether or not any such leave of absence shall constitute a termination of employment within the meaning of the Plan, and
(ii) the impact, if any, of any such leave of absence on awards under the Plan theretofore made to any Participant who takes such leave of absence (including, without limitation, whether or not such leave of absence shall cause any Options to expire
and the impact upon the time or times such Options shall become exercisable). 
  
 11.9 This Plan and any Options granted hereunder shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein. 
  
 11.10 This Plan is hereby instituted and in effect as of the Effective Date. 
  

 [LETTERHEAD OF OPEN TEXT CORPORATION] 
  

	TO:	[Name of Eligible Employee/Eligible Director] 

  
 You have been designated as an [Eligible Employee/Eligible Director] under the Centrinity Stock Option Plan of Open Text Corporation (the
“Plan”), and assuming that you become a Participant in the Plan by signing this letter, the details of the non-assignable Option which has been granted to you under the Plan are as follows: 
  

			
	 (a)
	  	Date of Grant:	  	______________________________________
			
	 (b)
	  	Designated Number (maximum
number of shares which you
may purchase under this Option):	  	______________________________________
			
	 (c)
	  	Option Price (price per share): 	  	______________________________________
			
	 (d)
	  	Earliest Exercise Date: 	  	______________________________________
			
	 (e)
	  	Latest Exercise Date:	  	______________________________________
		
	 (f)
	  	Vesting Date and Designated Percentage (% of Designated Number you may purchase each year after the applicable Vesting Date):

  

	 Vesting Date

	 	 Designated Percentage

  
 If you agree to
participate in the Plan and comply with its terms and conditions, please sign one copy of this letter and return it to                     
by                 . 
  

	OPEN TEXT CORPORATION
		
	By:	 	 
	 	

  
 I have read the
Centrinity Stock Option Plan and agree to comply with, and agree that my participation is subject in all respects to, its terms and conditions: 
  

	
	 
	

	 (Signature)

	
	 
	

	 (Date)PepsiCo, Inc. 2003 Long-term Incentive Plan

 EXHIBIT 4.3 
  
 PepsiCo, Inc. 
 2003 Long-Term Incentive Plan 
 (as amended and restated effective October 1, 2003) 
  

	1.	 	Purposes. 

  
 The purposes of this Plan are to provide long-term incentives to those persons with significant responsibility for the success and growth of PepsiCo, Inc.
(“PepsiCo”) and its subsidiaries, divisions and affiliated businesses, to associate the interests of such persons with those of PepsiCo’s shareholders, to assist PepsiCo in recruiting, retaining and motivating a diverse group of
employees and outside directors on a competitive basis, and to ensure a pay for performance linkage for such employees and outside directors. If approved by PepsiCo’s shareholders, this Plan would replace the PepsiCo, Inc. 1994 Long-Term
Incentive Plan, the PepsiCo, Inc. 1995 Stock Option Incentive Plan, the PepsiCo SharePower Stock Option Plan, the Director Stock Plan and the PepsiCo Share Award Plan, and no further awards would be made under any of the foregoing plans. 

  

	2.	 	Definitions. 

  
 For purposes of the Plan: 
  
 (a)    “Award” means a grant of Options, Stock Appreciation Rights, Restricted Shares, Restricted Share Units, Performance
Awards, or any or all of them. 
  
 (b)    “Board” means the Board of Directors of PepsiCo, Inc. 
  
 (c)    “Change in Control” is defined in Section 11(f). 
  
 (d)    “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (e)    “Committee” means, with respect to any
matter relating to Section 8 of the Plan, the Board, and with respect to all other matters under the Plan, the Compensation Committee of the Board of Directors of PepsiCo, Inc. The Compensation Committee shall be appointed by the Board and shall
consist of two or more outside, disinterested members of the Board. The Compensation Committee, in the judgment of the Board, shall be qualified to administer the Plan as contemplated by (a) Rule 16b-3 of the Securities and Exchange Act of 1934 (or
any successor rule), (b) Section 162(m) of the Code, as amended, and the regulations thereunder (or any successor Section and regulations), and (c) any rules and regulations of a stock exchange on which Common Stock is traded. Any member of the
Compensation Committee who does not satisfy the qualifications set out in the preceding sentence may recuse himself or herself from any vote or other action taken by the Committee. The Board may, at any time and in its complete discretion, remove
any member of the Compensation Committee and may fill any vacancy in the Compensation Committee. 
  
 (f)    “Common Stock” means the common stock, par value 1 2/3 cents per share, of PepsiCo, Inc. 
  
 (g)    “Company” means PepsiCo, its
subsidiaries, divisions and affiliated businesses. 
  
 (h)    “Eligible Participants” means any of the following individuals who is designated by the Committee as eligible to receive Awards, subject to the conditions set forth in this Plan: any officer, employee,
consultant or advisor of the Company. The term employee does not include any individual who is not, as of the grant date of an Award, classified by the Company as an employee on its corporate books and records even if that individual is later
reclassified (by the Company, any court or any governmental or regulatory agency) as an employee as of the grant date. Non-Employee Directors are not Eligible Participants. 
  
 (i)    “Employee Directors” means the members of the Board who are also employees of the
Company. 
  
 (j)    “Fair Market
Value” on any date means the average of the high and low market prices at which a share of Common Stock shall have been sold on such date, or the immediately preceding trading 

 
day if such date was not a trading day, as reported on the New York Stock Exchange Composite Transactions Listing and, in the case of an ISO, means fair
market value as determined by the Committee in accordance with Section 422 of the Code. 
  
 (k)    “ISO” means an Option satisfying the requirements of Section 422 of the Code and designated by the Committee as an ISO. 
  
 (l)    “Named Executive Officer” means
PepsiCo’s Chief Executive Officer and PepsiCo’s next four highest paid executive officers, as reported in PepsiCo’s proxy statement pursuant to Regulation S-K, Item 402(a)(3) for a given year. 
  
 (m)    “Non-Employee Director” means a member
of the Board who is not an employee of the Company. 
  
 (n)    “NQSO” or “Non-Qualified Stock Option” means an Option that does not satisfy the requirements of Section 422 of the Code and that is not designated as an ISO by the Committee. 
  
 (o)    “Options” means the right to purchase
shares of Common Stock at a specified price for a specified period of time. 
  
 (p)    “Option Exercise Price” means the purchase price per share of Common Stock covered by an Option granted pursuant to this Plan. 
  
 (q)    “Participant” means an individual who
has received an Award under this Plan. 
  
 (r)    “PepsiCo” means PepsiCo, Inc., a North Carolina corporation. 
  
 (s)    “Performance Awards” means an Award of Performance Shares or Performance Units based on the achievement of
Performance Goals during a Performance Period. 
  
 (t)    “Performance Based Exception” means the performance-based exception set forth in Code Section 162(m)(4)(C) from the deductibility limitations of Code Section 162(m). 
  
 (u)    “Performance Goals” means the goals
established by the Committee under Section 7(d). 
  
 (v)    “Performance Measures” means the criteria set out in Section 7(d) that may be used by the Committee as the basis for a Performance Goal. 
  
 (w)    “Performance Period” means the period established by the Committee during which the
achievement of Performance Goals is assessed in order to determine whether and to what extent a Performance Award has been earned. 
  
 (x)    “Performance Shares” means shares of Common Stock awarded to a Participant based on the achievement of Performance
Goals during a Performance Period. 
  
 (y)    “Performance Units” means an Award denominated in shares of Common Stock, cash or a combination thereof, as determined by the Committee, awarded to a Participant based on the achievement of Performance
Goals during a Performance Period. 
  
 (z)    “Plan” means the PepsiCo, Inc. 2003 Long-Term Incentive Plan, as amended and restated from time to time. 
  
 (aa)    “Prior Plans” means the PepsiCo, Inc. 1994 Long-Term Incentive Plan, the PepsiCo, Inc. 1995 Stock Option Incentive
Plan, the PepsiCo SharePower Stock Option Plan, the Director Stock Plan, the PepsiCo Share Award Plan, the PepsiCo 1987 Incentive Plan, the Quaker Long Term Incentive Plan of 1990, the Quaker Long Term Incentive Plan of 1999 and the Quaker Stock
Compensation Plan for Outside Directors. 
  

 2 

 (bb)    “Restriction Period” means, with respect to Restricted Shares or
Restricted Share Units, the period during which any restrictions set by the Committee remain in place. Restrictions remain in place until such time as they have lapsed under the terms and conditions of the Restricted Shares or as otherwise
determined by the Committee. 
  
 (cc)    “Restricted Shares” means shares of Common Stock, which may not be traded or sold until the date that the restrictions on transferability imposed by the Committee with respect to such shares have
lapsed. 
  
 (dd)    “Restricted Share
Units” means the right, as described in Section 7(c), to receive an amount, payable in either cash or shares of Common Stock, equal to the value of a specified number of shares of Common Stock. 
  
 (ee)    “Retirement” with respect to a
Non-Employee Director shall mean termination from the Board after such Non-Employee Director shall have attained at least age 55 or after such Non-Employee Director shall have satisfied the criteria for Retirement established by the Employee
Directors from time to time. 
  
 (ff)    “Stock Appreciation Rights” or “SAR” means the right to receive the difference between the Fair Market Value of a share of Common Stock on the grant date and the Fair Market Value of a share
of Common Stock on the date the Stock Appreciation Right is exercised. 
  
 (gg)    “Total Disability” shall have the meaning set forth in the long-term disability program of PepsiCo. 
  

	3.	 	Administration of the Plan. 

  
 (a)    Authority of Committee. The Plan shall be administered by the Committee, which shall have all the powers vested in it by
the terms of the Plan, such powers to include the authority (within the limitations described herein): 
  

	 	•	 	to select the persons to be granted Awards under the Plan, 

  

	 	•	 	to determine the type, size and terms of Awards to be made to each person selected, 

  

	 	•	 	to determine the time when Awards are to be made and any conditions which must be satisfied before an Award is made, 

  

	 	•	 	to establish objectives and conditions for earning Awards, 

  

	 	•	 	to determine whether an Award shall be evidenced by an agreement and, if so, to determine the terms of such agreement (which shall not be inconsistent with the Plan) and who must
sign such agreement, 

  

	 	•	 	to determine whether the conditions for earning an Award have been met and whether an Award will be paid at the end of the Performance Period, 

  

	 	•	 	to determine if and when an Award may be deferred, 

  

	 	•	 	to determine whether the amount or payment of an Award should be reduced or eliminated, 

  

	 	•	 	to determine the guidelines and/or procedures for the payment or exercise of Awards, and 

  

	 	•	 	to determine whether an Award should qualify, regardless of its amount, as deductible in its entirety for federal income tax purposes, including whether any Awards granted to Named
Executive Officers comply with the Performance Based Exception under Code Section 162(m). 

  
 (b)    Interpretation of Plan. The Committee shall have full power and authority to administer and interpret the Plan and to
adopt or establish such rules, regulations, agreements, guidelines, procedures and instruments, which are not contrary to the terms of the Plan and which, in its opinion, may be necessary or advisable for the administration and operation of the
Plan. The Committee’s interpretations of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested in it hereunder, shall be conclusive and binding on all parties concerned, including PepsiCo, its
shareholders and any person receiving an Award under the Plan. 
  

 3 

 (c)    Delegation of Authority. To the extent not prohibited by law, the
Committee may delegate its authority hereunder and may grant authority to employees or designate employees of the Company to execute documents on behalf of the Committee or to otherwise assist the Committee in the administration and operation of the
Plan. 
  

	4.	 	Eligibility. 

  
 (a)    General. Subject to the provisions of the Plan, the Committee may, from time to time, select from all Eligible
Participants those to whom Awards shall be granted under Section 7 and shall determine the nature and amount of each Award. Only Non-Employee Directors shall be eligible to receive Awards under Section 8. 
  
 (b)    International Participants. Notwithstanding
any provision of the Plan to the contrary, in order to foster and promote achievement of the purposes of the Plan or to comply with provisions of laws in other countries in which the Company operates or has employees, the Committee, in its sole
discretion, shall have the power and authority to (i) determine which Eligible Participants (if any) employed by the Company outside the United States are eligible to participate in the Plan, (ii) modify the terms and conditions of any Awards made
to such Eligible Participants, and (iii) establish subplans and modified Option exercise procedures and other Award terms and procedures to the extent such actions may be necessary or advisable. 
  

	5.	 	Shares of Common Stock Subject to the Plan. 

  
 (a)    Authorized Number of Shares. Unless otherwise authorized by PepsiCo’s shareholders and subject to the provisions of
this Section 5 and Section 10, the maximum aggregate number of shares of Common Stock available for issuance under the Plan shall be (i) 70 million, plus (ii) the number of shares underlying awards under the Prior Plans, which are cancelled or
expire after the effective date of this Plan. Any of the authorized shares may be used for any of the types of Awards described in the Plan, except: 
  
 (i)    at least 20 million of the authorized shares will be available for issuance in connection with broad-based grants under
PepsiCo’s SharePower program, 
  
 (ii)    no more than 30 million of the authorized shares may be issued pursuant to Awards other than Options granted with an Option Exercise Price equal to Fair Market Value on the date of grant, and 
  
 (iii)    no more than 50 million shares may be issued in
the form of ISOs. 
  
 (b)    Share
Counting. The following shall apply in determining the number of shares remaining available for grant under this Plan: 
  
 (i)    In connection with the granting of an Option or other Award (other than a Performance Unit denominated in dollars), the number
of shares of Common Stock available for issuance under this Plan shall be reduced by the number of shares in respect of which the Option or Award is granted or denominated; provided, however, that where a SAR is settled in shares of Common Stock,
the number of shares of Common Stock available for issuance under this Plan shall be reduced only by the number of shares issued in such settlement. 
  
 (ii)    If any Option is exercised by tendering shares of Common Stock to PepsiCo as full or partial payment of the exercise price,
the number of shares available for issuance under this Plan shall be increased by the number of shares so tendered. 
  
 (iii)    Whenever any outstanding Option or other Award (or portion thereof) expires, is cancelled, is settled in cash or is otherwise
terminated for any reason without having been exercised or payment having been made in respect of the entire Option or Award, the shares allocable to the expired, cancelled, settled or otherwise terminated portion of the Option or Award may again be
the subject of Options or Awards granted under this Plan. 
  
 (iv)    Awards granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who become employees as a result of a merger, consolidation, acquisition 
  

 4 

 
or other corporate transaction involving the Company as a result of an acquisition will not count against the reserve of available shares under this Plan.

  
 (c)    Shares to be Delivered.
Shares of Common Stock to be delivered by the Company under this Plan shall be determined by the Committee and may consist in whole or in part of authorized but unissued shares, treasury shares or shares acquired on the open market. 

  

	6.	 	Award Limitations. 

  
 The maximum number of Options or SARs that can be granted to any Eligible Participant during a single calendar year cannot exceed 2,000,000. The maximum
per Eligible Participant, per calendar year amount of Awards other than Options and SARs shall not exceed $15,000,000 or 500,000 shares of Common Stock. The maximum Award that may be granted to any Eligible Participant for a Performance Period
greater than one year shall not exceed the foregoing annual maximum multiplied by the number of full years in the Performance Period. 
  

	7.	 	Awards to Eligible Participants. 

  
 (a)    Options. 
  
 (i)    Grants. Subject to the terms and provisions of this Plan, Options may be granted to Eligible Participants. Options may
consist of ISOs or NQSOs, as the Committee shall determine. Options may be granted alone or in tandem with SARs. With respect to Options granted in tandem with SARs, the exercise of either such Options or such SARs will result in the simultaneous
cancellation of the same number of tandem SARs or Options, as the case may be. 
  
 (ii)    Option Exercise Price. The Option Exercise Price shall be equal to or greater than the Fair Market Value on the date the Option is granted, unless the Option was granted through the
assumption of, or in substitution for, outstanding awards previously granted to individuals who became employees of the Company as a result of a merger, consolidation, acquisition or other corporate transaction involving the Company. 
  
 (iii)    Term. The term of Options shall be
determined by the Committee in its sole discretion, but in no event shall the term exceed ten (10) years from the date of grant; provided, however, that Awards covering up to five (5) million shares of Common Stock may be issued with a term of up to
fifteen (15) years. 
  
 (iv)    ISO
Limits. ISOs may only be granted to employees of PepsiCo, its divisions and subsidiaries and may only be granted to an employee who, at the time the Option is granted, does not own stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of PepsiCo. The aggregate Fair Market Value of all shares with respect to which ISOs are exercisable by a Participant for the first time during any year shall not exceed $100,000. The aggregate Fair
Market Value of such shares shall be determined at the time the Option is granted. 
  
 (v)    No Repricing. Except for adjustments made pursuant to Section 10, the Option Exercise Price for any outstanding Option granted under the Plan may not be decreased after the date of
grant nor may any outstanding Option granted under the Plan be surrendered to the Company as consideration for the grant of a new Option with a lower Option Exercise Price without the approval of PepsiCo’s shareholders. 
  
 (vi)    Buy Out of Option Gains. At any time after
any Option becomes exercisable, the Committee shall have the right to elect, in its sole discretion and without the consent of the holder thereof, to cancel such Option and to cause PepsiCo to pay to the Participant the excess of the Fair Market
Value of the shares of Common Stock covered by such Option over the Option Exercise Price of such Option at the date the Committee provides written notice (the “Buy Out Notice”) of its intention to exercise such right. Buy outs pursuant to
this provision shall be effected by PepsiCo as promptly as possible after the date of the Buy Out Notice. Payments of buy out amounts may be made in cash, in shares of Common Stock, or partly in cash and partly in Common Stock, as the Committee
deems advisable. To the extent payment is made in shares 
  

 5 

 
of Common Stock, the number of shares shall be determined by dividing the amount of the payment to be made by the Fair Market Value of a share of Common
Stock at the date of the Buy Out Notice. 
  
 (b)    Stock Appreciation Rights. 
  
 (i)    Grants. Subject to the terms and provisions of this Plan, SARs may be granted to Eligible Participants. SARs may be granted alone or in tandem with Options. With respect to SARs granted in tandem with Options, the
exercise of either such Options or such SARs will result in the simultaneous cancellation of the same number of tandem SARs or Options, as the case may be. 
  
 (ii)    Purchase Price. The purchase price per share of Common Stock covered by a SAR granted pursuant to this Plan shall be
equal to or greater than Fair Market Value on the date the SAR is granted, unless the SAR was granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who became employees of the Company as a
result of a merger, consolidation, acquisition or other corporate transaction involving the Company. 
  
 (iii)    Term. The term of a SAR shall be determined by the Committee in its sole discretion, but in no event shall the term
exceed ten (10) years from the date of grant; provided, however, that Awards covering up to five (5) million shares of Common Stock may be issued with a term of up to fifteen (15) years. 
  
 (iv)    Form of Payment. The Committee may authorize payment of a SAR in the form of cash, Common
Stock valued at its Fair Market Value on the date of the exercise, a combination thereof, or by any other method as the Committee may determine. 
  
 (c)    Restricted Shares / Restricted Share Units. 
  
 (i)    Grants. Subject to the terms and provisions of the Plan, Restricted Shares or Restricted
Share Units may be granted to Eligible Participants. 
  
 (ii)    Restrictions. The Committee shall impose such terms, conditions and/or restrictions on any Restricted Shares or Restricted Share Units granted pursuant to the Plan as it may deem advisable including,
without limitation: a requirement that Participants pay a stipulated purchase price for each Restricted Share or each Restricted Share Unit; restrictions based upon the achievement of specific performance goals (Company-wide, divisional, and/or
individual); time-based restrictions on vesting; and/or restrictions under applicable Federal or state securities laws. Unless otherwise determined by the Committee at the time of grant, any time-based restriction period shall be for a minimum of
three years. To the extent the Restricted Shares or Restricted Share Units are intended to be deductible under Code Section 162(m), the applicable restrictions shall be based on the achievement of Performance Goals over a Performance Period, as
described in Section 7(d) below. 
  
 (iii)    Payment of Units. Restricted Share Units that become payable in accordance with their terms and conditions shall be settled in cash, shares of Common Stock, or a combination of cash and shares, as
determined by the Committee. 
  
 (iv)    No
Disposition During Restriction Period. During the Restriction Period, Restricted Shares may not be sold, assigned, transferred or otherwise disposed of, or mortgaged, pledged or otherwise encumbered. In order to enforce the limitations imposed
upon the Restricted Shares, the Committee may (a) cause a legend or legends to be placed on any certificates relating to such Restricted Shares, and/or (b) issue “stop transfer” instructions, as it deems necessary or appropriate.

  
 (v)    Dividend and Voting Rights.
Unless otherwise determined by the Committee, during the Restriction Period, Participants who hold Restricted Shares and Restricted Share Units shall have the right to receive dividends in cash or other property or other distribution or rights in
respect of such shares, and Participants who hold Restricted Shares shall have the right to vote such shares as the record owner thereof. Unless otherwise determined by the Committee, any dividends payable to a Participant during the Restriction
Period shall be distributed to the Participant only if and when the restrictions imposed on the applicable Restricted Shares or Restricted Share Units lapse. 
  

 6 

 (vi)    Share Certificates. Each certificate issued for Restricted Shares
shall be registered in the name of the Participant and deposited with the Company or its designee. At the end of the Restriction Period, a certificate representing the number of shares to which the Participant is then entitled shall be delivered to
the Participant free and clear of the restrictions. No certificate shall be issued with respect to a Restricted Share Unit unless and until such unit is paid in shares of Common Stock. 
  
 (d)    Performance Awards. 
  
 (i)    Grants. Subject to the provisions of the Plan, Performance Awards consisting of
Performance Shares or Performance Units may be granted to Eligible Participants. Performance Awards may be granted either alone or in addition to other Awards made under the Plan. 
  
 (ii)    Performance Goals. Unless otherwise determined by the Committee, Performance Awards shall
be conditioned on the achievement of Performance Goals (which shall be based on one or more Performance Measures, as determined by the Committee) over a Performance Period. The Performance Period shall be one year, unless otherwise determined by the
Committee. 
  
 (iii)    Performance
Measures. The Performance Measure(s) to be used for purposes of Performance Awards may be described in terms of objectives that are related to the individual Participant or objectives that are Company-wide or related to a subsidiary, division,
department, region, function or business unit of the Company in which the Participant is employed, and may consist of one or more or any combination of the following criteria: stock price, market share, sales revenue, cash flow, sales volume,
earnings per share, return on equity, return on assets, return on sales, return on invested capital, economic value added, net earnings, total shareholder return, gross margin, and/or costs. The Performance Goals based on these Performance Measures
may be made relative to the performance of other corporations.  
  
 (iv)    Negative Discretion. Notwithstanding the achievement of any Performance Goal established under this Plan, the Committee has the discretion, by Participant, to reduce some or all of a Performance Award that
would otherwise be paid. 
  
 (v)    Extraordinary Events. At, or at any time after, the time an Award is granted, and to the extent permitted under Code Section 162(m) and the regulations thereunder without adversely affecting the treatment
of the Award under the Performance Based Exception, the Committee may provide for the manner in which performance will be measured against the Performance Goals (or may adjust the Performance Goals) to reflect the impact of specific corporate
transactions, accounting or tax law changes and other extraordinary and nonrecurring events. 
  
 (vi)    Interpretation. With respect to any Award that is intended to satisfy the conditions for the Performance Based Exception under Code Section 162(m): (A) the Committee shall interpret
the Plan and this Section 7 in light of Code Section 162(m) and the regulations thereunder; (B) the Committee shall have no discretion to amend the Award in any way that would adversely affect the treatment of the Award under Code Section 162(m) and
the regulations thereunder; and (C) such Award shall not be paid until the Committee shall first have certified that the Performance Goals have been achieved. 
  

	8.	 	Awards to Non-Employee Directors. 

  
 (a)    Awards. Non-Employee Directors are eligible to receive any and all types of Awards under this Plan other than ISOs.

  
 (b)    Initial Grants. Each newly
appointed Non-Employee Director shall, as soon as practicable after initially becoming a member of the Board, be granted: (i) 1,000 shares of Common Stock; (ii) an Annual Grant (as defined below), which for a Non-Employee Director elected after
October 1 shall be pro-rated to reflect his or her date of election; and (iii) a Retainer Award, which for a Non-Employee Director elected after October 1 shall be pro-rated to reflect his or her date of election. 
  

 7 

 (c)    Annual Grants. Each Non-Employee Director shall receive the following
on October 1 (or on such other date as is determined by the Committee) of each year: 
  
 (i)    An Award (the “Annual Grant”) of Restricted Share Units, the number of which shall be determined by dividing $75,000 by the Fair Market Value on the grant date. In substitution of
the foregoing, the Non-Employee Director may elect to receive all or a portion (in 10% increments) of the Annual Grant of Restricted Stock Units in the form of stock options. In the event the Non-Employee Director elects to receive stock options,
the number of stock options shall be determined by multiplying the number of Restricted Share Units by four. 
  
 (ii)    A retainer fee of $110,000 for each Non-Employee Director who is the chairman of a committee of the Board or $100,000 for each
other Non-Employee Director (the “Retainer Award”). Each Non-Employee Director may elect to receive the Retainer Award in the form of (A) cash or (B) deferred stock units. 
  
 (d)    Death, Total Disability and Retirement. In the event of the death, Total Disability or
Retirement of a Non-Employee Director prior to the granting of an Annual Grant and Retainer Award in respect of the fiscal year in which such event occurred, an Annual Grant and Retainer Award may, in the discretion of the Committee, be granted in
respect of such fiscal year to the retired or disabled Non-Employee Director or his or her estate. If any Non-Employee Director ceases to be a member of the Board for any reason other than death, Total Disability or Retirement, his or her rights to
any Award in respect of the fiscal year during which such cessation occurred will terminate unless the Committee determines otherwise. 
  
 (e)    Terms of Awards Granted to Non-Employee Directors. 
  
 (i)    Each Option granted to a Non-Employee Director shall have an Option Exercise Price equal to the
Fair Market Value on the grant date. 
  
 (ii)    Each Option granted to a Non-Employee Director prior to October 1, 2003 shall be fully vested and exercisable on the grant date. Subject to subparagraph (iii) below, each Option and Restricted Share Unit granted
to a Non-Employee Director on or after October 1, 2003 shall vest (and, in the case of Options, become exercisable) on the third anniversary of the grant date. Each Option granted to a Non-Employee Director shall have a term of ten years.

  
 (iii)    In the event a Non-Employee
Director terminates membership on the Board prior to the vesting date of an Award, then (A) if such termination is the result of such Non-Employee Director’s death, Total Disability or Retirement, such Award shall immediately vest and, in the
case of Options, be exercisable, and (B) if such termination is the result of an event other than death, Total Disability or Retirement, such Award shall immediately terminate and expire. 
  
 (iv)    No Options granted to a Non-Employee Director may be exercised after he or she ceases to be a
member of the Board, except that: (A) if such cessation occurs by reason of death, the Options then held by the Non-Employee Director may be exercised by his or her designated beneficiary (or, if none, his or her legal representative) until the
expiration of such Options in accordance with the terms hereof; (B) if such cessation occurs by reason of the Non-Employee Director incurring a Total Disability, the Options then held by the Non-Employee Director may be exercised by him or her until
the expiration of such Options in accordance with the terms hereof; and (C) if such cessation occurs by reason of the Non-Employee Director’s Retirement, the Options then held by the Non-Employee Director may be exercised by him or her until
the expiration of such Options in accordance with the terms hereof. 
  
 (f)    Exercise of Options Granted to Non-Employee Directors. 
  
  
 (i)    To exercise an Option, a Non-Employee Director must provide to PepsiCo (A) a written notice
specifying the number of Options to be exercised and (B) to the extent applicable, any required payments due upon exercise. 
  
 (ii)    Non-Employee Directors may exercise Options under either of the following methods: 
  

 8 

 (A)    Cashless Exercise. Non-Employee Directors may exercise Options through a
registered broker-dealer pursuant to cashless exercise procedures that are, from time to time, approved by the Committee. Proceeds from any such exercise shall be used to pay the exercise costs, which include the Option Exercise Price, applicable
taxes, brokerage commissions and SEC fees. Any remaining proceeds from the sale shall be delivered to the Non-Employee Director in cash or stock, as specified by the Non-Employee Director. 
  
 (B)    Standard Exercise. Non-Employee Directors may
exercise Options by paying to PepsiCo an amount in cash from his or her own funds equal to the Option Exercise Price and any taxes required at exercise. A certificate representing the shares of Common Stock that the Non-Employee Director purchased
shall be delivered to him or her only after the Option Exercise Price and the applicable taxes have been paid. 
  

	9.	 	Deferred Payments. 

  
 Subject to the terms of this Plan, the Committee may determine that all or a portion of any Award to a Participant, whether it is to be paid in cash,
shares of Common Stock or a combination thereof, shall be deferred or may, in its sole discretion, approve deferral elections made by Participants. Deferrals shall be for such periods and upon such terms as the Committee may determine in its sole
discretion. 
  

	10.	 	Dilution and Other Adjustments. 

  
 In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split, combination or exchange of shares or other
change in corporate structure affecting any class of Common Stock, the Committee may, but shall not be required to, make such adjustments in the class and aggregate number of shares which may be delivered under this Plan as described in Section 5,
the individual award maximums under Section 6, the class, number, and Option Exercise Price of outstanding Options and the class and number of shares subject to any other Awards granted under this Plan (provided the number of shares of any class
subject to any Award shall always be a whole number), as may be determined to be appropriate by the Committee, and any such adjustment may, in the sole discretion of the Committee, take the form of Options covering more than one class of Common
Stock. Such adjustment shall be conclusive and binding for all purposes of the Plan. 
  

	11.	 	Change in Control. 

  
 Upon a Change in Control, the following shall occur: 
  
 (a)    Options. Effective on the date of such Change in Control, all outstanding and unvested Options granted under the Plan
shall immediately vest and become exercisable, and all Options then outstanding under the Plan shall remain outstanding in accordance with their terms. Notwithstanding anything to the contrary in this Plan, in the event that any Option granted under
the Plan becomes unexercisable during its term on or after a Change in Control because: (i) the individual who holds such Option is involuntarily terminated (other than for cause) within two (2) years after the Change in Control; (ii) such Option is
terminated or adversely modified; or (iii) Common Stock is no longer issued and outstanding, or no longer traded on a national securities exchange, then the holder of such Option shall immediately be entitled to receive a lump sum cash payment equal
to (A) the gain on such Option or (B) only if greater than the gain and only with respect to NQSOs the Black-Scholes value of such Option (as determined by a nationally recognized independent investment banker chosen by PepsiCo), in either case
calculated on the date such Option becomes unexercisable. For purposes of the preceding sentence, the gain on an Option shall be calculated as the difference between the closing price per share of Common Stock as of the date such Option becomes
unexercisable less the Option Exercise Price. 
  
 (b)    Stock Appreciation Rights. Effective on the date of such Change in Control, all outstanding and unvested SARs granted under the Plan shall immediately vest and become exercisable, and all SARs then
outstanding under the Plan shall remain outstanding in accordance with their terms. In the event that any SAR granted under the Plan becomes unexercisable during its term on or after a Change in Control because: (i) the individual who holds such SAR
is involuntarily terminated (other than for cause) within two (2) years after the Change in Control; (ii) such SAR is terminated or adversely modified; or (iii) Common 
  

 9 

 Stock is no longer issued and outstanding, or no longer traded on a national securities exchange, then the holder of such
SAR shall immediately be entitled to receive a lump sum cash payment equal to the gain on such SAR. For purposes of the preceding sentence, the gain on a SAR shall be calculated as the difference between the closing price per share of Common Stock
as of the date such SAR becomes unexercisable and the purchase price per share of Common Stock covered by the SAR. 
  
 (c)    Restricted Shares/Restricted Share Units. Upon a Change of Control all Restricted Shares and Restricted Share Units
shall immediately vest and be distributed to Participants, effective as of the date of the Change of Control. 
  
 (d)    Performance Awards. Each Performance Award granted under the Plan that is outstanding on the date of the Change in
Control shall immediately vest and the holder of such Performance Award shall be entitled to a lump sum cash payment equal to the amount of such Performance Award payable at the end of the Performance Period as if 100% of the Performance Goals have
been achieved. 
  
 (e)    Timing of
Payment. Any amount required to be paid pursuant to this Section 11 shall be paid as soon as practical after the date such amount becomes payable. 
  
 (f)    Definition. “Change in Control” means the occurrence of any of the following events: (i) acquisition of 20% or
more of the outstanding voting securities of PepsiCo, Inc. by another entity or group; excluding, however, the following (A) any acquisition by PepsiCo, Inc., or (B) any acquisition by an employee benefit plan or related trust sponsored or
maintained by PepsiCo, Inc.; (ii) during any consecutive two-year period, persons who constitute the Board of Directors of PepsiCo, Inc. (the “Board”) at the beginning of the period cease to constitute at least 50% of the Board (unless the
election of each new Board member was approved by a majority of directors who began the two-year period); (iii) PepsiCo, Inc. shareholders approve a merger or consolidation of PepsiCo, Inc. with another company, and PepsiCo, Inc. is not the
surviving company; or, if after such transaction, the other entity owns, directly or indirectly, 50% or more of the outstanding voting securities of PepsiCo, Inc.; (iv) PepsiCo, Inc. shareholders approve a plan of complete liquidation of PepsiCo,
Inc. or the sale or disposition of all or substantially all of PepsiCo, Inc.’s assets; or (v) any other event, circumstance, offer or proposal occurs or is made, which is intended to effect a change in the control of PepsiCo, Inc., and which
results in the occurrence of one or more of the events set forth in clauses (i) through (iv) of this paragraph. 
  

	12.	 	Miscellaneous Provisions. 

  
 (a)    Misconduct. Except as otherwise provided in agreements covering Awards hereunder, a Participant shall forfeit all rights
in his or her outstanding Awards under the Plan, and all such outstanding Awards shall automatically terminate and lapse, if the Committee determines that such Participant has (i) used for profit or disclosed to unauthorized persons, confidential
information or trade secrets of the Company, (ii) breached any contract with or violated any fiduciary obligation to the Company, including without limitation, a violation of any Company code of conduct, (iii) engaged in unlawful trading in the
securities of PepsiCo or of another company based on information gained as a result of that Participant’s employment or other relationship with the Company, or (iv) committed a felony or other serious crime. 
  
 (b)    Rights as Shareholder. Except as otherwise
provided herein, a Participant shall have no rights as a holder of Common Stock with respect to Awards hereunder, unless and until certificates for shares of Common Stock are issued to the Participant. 
  
 (c)    No Loans. No loans from the Company to
Participants shall be permitted under this Plan. 
  
 (d)    Assignment or Transfer. Unless the Committee shall specifically determine otherwise, no Award under the Plan or any rights or interests therein shall be transferable other than by will or the laws of
descent and distribution and shall be exercisable, during the Participant’s lifetime, only by the Participant. Once awarded, the shares of Common Stock received by Participants may be freely transferred, assigned, pledged or otherwise subjected
to lien, subject to the restrictions imposed by the Securities Act of 1933, Section 16 of the Securities Exchange Act of 1934 and PepsiCo’s Insider Trading Policy, each as amended from time to time. 
  

 10 

 (e)    Withholding Taxes. PepsiCo shall have the right to deduct from all
Awards paid in cash (and any other payment hereunder) any federal, state, local or foreign taxes required by law to be withheld with respect to such Awards and, with respect to Awards paid in stock or upon exercise of Options, to require the payment
(through withholding from the Participant’s salary or otherwise) of any such taxes. The obligations of PepsiCo to make delivery of Awards in cash or Common Stock shall be subject to currency or other restrictions imposed by any government.

  
 (f)    No Rights to Awards. Neither
the Plan nor any action taken hereunder shall be construed as giving any employee any right to be retained in the employ of PepsiCo or any of its subsidiaries, divisions or affiliates. Except as set forth herein, no employee or other person shall
have any claim or right to be granted an Award under the Plan. By accepting an Award, the Participant acknowledges and agrees (i) that the Award will be exclusively governed by the terms of the Plan, including the right reserved by the Company to
amend or cancel the Plan at any time without the Company incurring liability to the Participant (except for Awards already granted under the Plan), (ii) that Awards are not a constituent part of salary and that the Participant is not entitled, under
the terms and conditions of employment, or by accepting or being granted Awards under this Plan to require Awards to be granted to him or her in the future under this Plan or any other plan, (iii) that the value of Awards received under the Plan
will be excluded from the calculation of termination indemnities or other severance payments, and (iv) that the Participant will seek all necessary approval under, make all required notifications under and comply with all laws, rules and regulations
applicable to the ownership of Options and stock and the exercise of Options, including, without limitation, currency and exchange laws, rules and regulations. 
  

(g)    Beneficiary Designation. To the extent allowed by the Committee, each Participant under the Plan may, from time to
time, name any beneficiary or beneficiaries (who may be named on a contingent or successive basis) to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Unless the
Committee determines otherwise, each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Company
during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
  
 (h)    Costs and Expenses. The cost and expenses of administering the Plan shall be borne by
PepsiCo and not charged to any Award or to any Participant. 
  
 (i)    Fractional Shares. Fractional shares of Common Stock shall not be issued or transferred under an Award, but the Committee may pay cash in lieu of a fraction or round the fraction, in its discretion.

  
 (j)    Funding of Plan. PepsiCo
shall not be required to establish or fund any special or separate account or to make any other segregation of assets to assure the payment of any Award under the Plan. 
  
 (k)    Indemnification. Provisions for the indemnification of officers and directors of the
Company in connection with the administration of the Plan shall be as set forth in PepsiCo’s Certificate of Incorporation and Bylaws as in effect from time to time. 
  
 (l)    Successors. All obligations of the Company under the Plan with respect to Awards granted
hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the
Company. 
  

	13.	 	Effective Date, Governing Law, Amendments and Termination. 

  
 (a)    Effective Date. The Plan was approved by the Board on January 30, 2003 and shall become effective on the date it is
approved by PepsiCo’s shareholders. 
  
  
 (b)    Amendments. The Board may at any time terminate or from time to time amend the Plan in whole or in part, but no such
action shall adversely affect any rights or obligations with respect to any Awards granted prior to the date of such termination or amendment. Notwithstanding the foregoing, unless PepsiCo’s shareholders shall have first approved the amendment,
no amendment of the Plan shall be effective which would (i) increase the maximum number of shares of Common Stock which may be delivered 
  

 11 

 
under the Plan or to any one individual (except to the extent such amendment is made pursuant to Section 10 hereof), (ii) extend the maximum period during
which Awards may be granted under the Plan, (iii) add to the types of awards that can be made under the Plan, (iv) change the Performance Measures pursuant to which Performance Awards are earned, (v) modify the requirements as to eligibility for
participation in the Plan, or (vi) require shareholder approval pursuant to this Plan or applicable law to be effective. With the consent of the Participant affected, the Committee may amend outstanding agreements evidencing Awards under the Plan in
a manner not inconsistent with the terms of the Plan. 
  
 (c)    Governing Law. All questions pertaining to the construction, interpretation, regulation, validity and effect of the provisions of the Plan shall be determined in accordance with the laws of the State of
North Carolina without giving effect to conflict of laws principles. 
  
 (d)    Termination. No Awards shall be made under the Plan after the tenth anniversary of the date on which PepsiCo’s shareholders approve the Plan. 
  

 12

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