Document:

Exhibit 10.31

 

FORM OF OFFER LETTER FOR EXECUTIVE OFFICERS

 

[RIGHTNOW TECHNOLOGIES, INC. LETTERHEAD]

 

[DATE]

 

 

[NAME]

c/o RightNow
Technologies, Inc.

136
Enterprise Blvd.

Bozeman,
MT  59718

 

Dear
[NAME],

 

I
am pleased to offer you a full-time position with RightNow Technologies (“RightNow”)
as [POSITION] located in Bozeman, Montana. 
If you accept this offer, you will report to Greg Gianforte, Chief
Executive Officer.  Your start date will
be effective upon your acceptance of this offer.

 

Your
on Target Earnings (OTE) will be [OTE], comprising a base of [BASE SALARY] per
year with an on-target bonus potential of [BONUS POTENTIAL] per annum.  In addition, [OPTION SHARES] of RightNow
common stock, which will vest over four years and be governed
by the terms of the applicable stock option agreement.

 

[REPORTING]

 

[INDEMNIFICATION]

 

Any
capitalized terms in this letter shall have the same meaning as in the
attachment to this letter.

 

Termination
of Employment:  You will
receive the following benefits if your employment with the Company (or any
successor company or affiliated entity with which you are then employed) is
terminated by the Company or such other employer without Cause:

 

	
   

  	
  (i)

  	
  acceleration
  of [TERMINATION ACCELERATION]of your then unvested stock options in
  connection with the attendant stock option award, and stock option awards
  made after the date of this letter, and subject to the terms and conditions
  of each such stock option agreement that is executed by you and the Company;
  and

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  [TERMINATION
  SEVERANCE] salary continuation at your then current on target earnings (OTE)
  as determined by the Company’s Compensation Committee from time to time.

  

 

 

Termination
of Employment following a Change of Control:  In lieu of the benefits referred to above,
you will receive the following benefits if (a) your employment with the
Company (or any successor company or affiliated entity with which you are then
employed) is terminated by the Company or such other employer without Cause
within twelve months following the date of a Change in Control of the Company;
or (b) your employment with the Company (or any successor company or
affiliated entity with which you are then employed) is terminated by you for
Good Reason within twelve months following the date of a Change in Control of
the Company:

 

	
   

  	
  (i)

  	
  acceleration
  of [CHANGE OF CONTROL ACCELERATION] of your then unvested stock options in
  connection with the attendant stock option award, and stock option awards
  made after the date of this letter, and subject to the terms and conditions
  of each such stock option agreement that is executed by you and the Company;
  and

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  [CHANGE
  OF CONTROL SEVERANCE] salary continuation at your then current on target
  earnings (OTE) as determined by the Company’s Compensation Committee from
  time to time.

  

 

The
above-listed termination benefits will apply to your approved option grant and
all option grants in the future.

 

Actions:  If this offer meets with your approval,
please take the following actions:

 

1.               Sign this letter to indicate
your acceptance and return a copy to Vicki Pollington.

 

2.               Return a copy of the signed
Indemnification Agreement to Vicki Pollington.

 

3.               Retain one copy of each
document for your records.

 

We
look forward to working with you in your new position.

 

 

RIGHTNOW
TECHNOLOGIES, INC.

 

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Greg
  Gianforte

  	
  [NAME]

  
	
   

  	
   

  	
  Date:
  [ACCEPTANCE DATE]

  

 

 

ATTACHMENT

 

DEFINITIONS

 

“Change in Control” shall
mean a change in ownership or control of the Company effected
through any of the following transactions:

 

	
   

  	
  1.

  	
  merger, consolidation or
  other reorganization unless securities representing more than 50% of the
  total combined voting power of the voting securities of the successor
  corporation are immediately thereafter beneficially owned, directly or
  indirectly and in substantially the same proportion, by the persons who
  beneficially owned the Company’s outstanding voting securities immediately
  prior to such transaction;

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  the sale,
  transfer or other disposition of all or substantially all of the Company’s
  assets;

  
	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  the acquisition, directly
  or indirectly by any person or related group of persons (other than the
  Company or a person that directly or indirectly controls, is controlled by,
  or is under common control with, the Company), of beneficial ownership (within
  the meaning of Rule 13d-3 of the Exchange Act) of securities possessing
  more than 50% of the total combined voting power of the Company’s outstanding
  securities pursuant to a tender or exchange offer made directly to the
  Company’s stockholders; or

  
	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  a change in the
  composition of the Board of Directors over a period of 36 consecutive months
  or less such that a majority of the directors ceases, by reason of one or
  more contested elections for directorship, to be comprised of individuals who
  either (i) have been directors continuously since the beginning of such
  period or (ii) have been elected or nominated for election as directors
  during such period by at least a majority of the directors described in
  clause (i) who were still in office at the time the Board of Directors
  approved such election or nomination.

  

 

Following
a Change in Control, “Company” shall refer to the successor corporation in the
transaction.

 

Termination of employment
for “Cause” shall mean termination by the Company of your employment based upon
(i) the willful and continued failure by you substantially to perform your
duties and obligations (other than any such failure resulting from your
incapacity due to physical or mental illness or any such actual or anticipated
failure resulting from your termination for “Good Reason” as defined below), (ii) your
conviction or plea bargain in connection with the commission or alleged
commission of any felony or gross misdemeanor involving moral turpitude, fraud
or misappropriation of funds, or (iii) your willful engaging in misconduct
which causes substantial injury to the Company, its other employees or its
clients, whether monetarily or otherwise. 
For purposes of this paragraph, no action or failure to act on your part
shall be considered “willful” unless done, or omitted to be done, by you in bad
faith and without reasonable belief that your action or omission was in the
best interests of the Company.

 

 

“Good Reason” shall mean the
occurrence of any of the following events following a Change in Control, except
for the occurrence of such an event in connection with the termination of your
employment by the Company (or any successor company or affiliated entity then
employing you) for Cause, Disability or death:

 

1.               the assignment to
you of employment duties or responsibilities which are not substantially
comparable in responsibility and status to the employment duties and
responsibilities you held immediately prior to the Change in Control;

 

2.               a reduction in your base salary as in effect
immediately prior to the Change in Control or as the same may be increased from
time to time during the term of this Agreement; or

 

3.               requiring you to work in a location more than
50 miles from your office location immediately prior to the Change in Control,
except for requirements of temporary travel on the Company’s business to an
extent substantially consistent with your business travel obligations
immediately prior to the Change in Control.

 

 

SCHEDULE OF
MATERIAL DIFFERENCES

TO EXHIBIT 10.31

 

	
  Name

  	
   

  	
  Date

  	
   

  	
  Position

  	
   

  	
  OTE

  	
   

  	
  Base

  Salary

  	
   

  	
  Bonus

  Potential

  	
   

  	
  Reporting

  	
   

  	
  Indemnification

  	
   

  
	
  Jeffrey C. Davison

  	
   

  	
  January 28, 2008

  	
   

  	
  Vice

  President

  and Chief

  Financial

  Officer

  	
   

  	
  $

  	
  300,000

  	
   

  	
  $

  	
  200,000

  	
   

  	
  $

  	
  100,000

  	
   

  	
  Your position will meet
  the requirements of SEC Rule 16a-1, and accordingly you will be
  designated as an officer of RightNow Technologies, Inc. (the “Company”)
  for the purpose of Section 16 of the Securities and Exchange Act of 1934
  (“Executive Officer”). As an Executive Officer, there will be additional SEC
  reporting requirements that pertain to your employment and remuneration. You
  are herewith provided with a copy of the Company’s Section 16 Manual,
  which you should carefully review.

  	
   

  	
  In addition, the Company
  has adopted a policy of indemnifying its Executive Officers and directors for
  certain types of liabilities. In this regard, I enclose a copy of our
  standard indemnification agreement for your review and signature.

  	
   

  
	
  Susan J. Carstensen

  	
   

  	
  January 28, 2008

  	
   

  	
  Vice

  President

  and Chief Operating Officer

  	
   

  	
  $

  	
  400,000

  	
   

  	
  $

  	
  240,000

  	
   

  	
  $

  	
  160,000

  	
   

  	
  N/A. However,
  Ms. Carstensen’s previous designation as a Section 16 officer
  continues.

  	
   

  	
  N/A. However,
  Ms. Carstensen previously signed RightNow’s standard indemnification
  agreement.

  	
   

  

 

 

	
  Name

  	
   

  	
  Option Shares

  	
   

  	
  Termination Acceleration

  	
   

  	
  Termination Severance

  	
   

  	
  Change of

  Control

  Acceleration

  	
   

  	
  Change of Control Severance

  	
   

  	
  January 29, 2008

  	
   

  
	
  Jeffrey C. Davison

  	
   

  	
  the Board has approved a
  new grant to you of options to purchase 75,000 shares

  	
   

  	
  12.5

  	
  %

  	
  6 months

  	
   

  	
  100

  	
  %

  	
  6 months

  	
   

  	
  January 29, 2008

  	
   

  
	
  Susan J. Carstensen

  	
   

  	
  the Board has approved a
  new grant to you of options to purchase 100,000 shares

  	
   

  	
  12.5

  	
  %

  	
  6 months

  	
   

  	
  100

  	
  %

  	
  6 months

  	
   

  	
  January 29, 2008

  	
   

  

 

This
schedule sets forth the material terms, to the extent
they are different, of the offer letters with each of Jeff Davison and Susan
Carstensen.  The form is filed herewith.Exhibit 10.1

 

ADOBE
SYSTEMS INCORPORATED

2003 EQUITY INCENTIVE PLAN

 

[           ] PERFORMANCE SHARE
PROGRAM

 

ADOPTED: [                              ]

 

 

1.                                      Purpose.  The Adobe Systems Incorporated [       ] Performance Share Program (the “Program”),
established under the Adobe Systems Incorporated 2003 Equity Incentive Plan
(the “Plan”), is intended to provide equity incentive compensation to
individuals who make a significant contribution to the performance of Adobe
Systems Incorporated (the “Company”).  Program
objectives are to:  (i) focus key
Employees on achieving specific performance targets, (ii) reinforce a team
orientation, (iii) provide significant award potential for achieving
outstanding performance, and (iv) enhance the ability of the Company to
attract and retain highly talented and competent individuals.

 

2.                                      Definitions.

 

Defined terms not explicitly defined in this Program but
defined in the Plan shall have the same definitions as in the Plan.

 

(a)                                  “Actual
Award” means the number of shares of Stock credited to a
Designated Participant under the Program during a Performance Period based on
achievement of applicable Performance Goals and Other Performance Goals.

 

(b)                                  “Board” means the Board of
Directors of the Company.

 

(c)                                  “Certification Date” means the date on which the Committee certifies
whether the Performance Goals have been met under the Performance Award Formula
and whether any reductions in the Maximum Awards should be made on account of
the degree of achievement of the Other Performance Goals.

 

(d)                                  “Committee” means a committee of one or
more members of the Board appointed by the Board pursuant to the Plan;
provided, however, that for purposes of administering the Plan with respect to
Designated Participants who are or may be deemed “covered employees” (as
defined for purposes of Section 162(m) of the  Code), the “Committee” shall be composed of
two or more members of the Board, each of whom is an “outside director” for
purposes of Section 162(m) of the Code.

 

(e)                                  “Disability”
means, with respect to a Designated Participant, the inability of such
Designated Participant to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months, as provided in Section 22(e)(3) and
409A(a)(2)(c)(i) of the Code.

 

(f)                                    “Designated
Participant” means a key Employee of the Company or any other
Participating Company  who is
designated by the Committee in writing to participate in the Program.

 

(g)                                 “Maximum
Award” means the maximum number of shares of Stock that
may be credited to a Designated Participant under the Program in respect of a
specified Performance Period if the applicable Performance Goals are achieved
at the levels set by the Committee during the applicable 

 

 

1

 

Performance
Period and the Designated Participant continues to render Service to the Company or any other Participating
Company during the entire Performance Period.

 

(h)                                 “Other
Performance Goal” means a performance goal established by the
Committee that is not a Performance Goal established pursuant to Section 9.3
of the Plan.

 

(i)                                    “Performance
Period” means the period of time selected by the Committee
over which the attainment of one or more Performance Goals will be measured for
the purpose of determining a Designated Participant’s right to an Actual
Award.  At the discretion of the
Committee, a Performance Period may be divided into shorter periods (for
example, fiscal years of the Company) over which the attainment of one or more
Performance Goals will be measured.

 

3.                                      How
Awards Are Earned Under the Program.

 

(a)                                  General
Program Description.  The
Program provides the opportunity for certain key Employees to earn shares of
Stock based on the performance of the Company. 
In general, the Committee will select certain key Employees to
participate in the Program at the beginning of a Performance Period.  Upon selection to participate in the Program,
each such Designated Participant will be granted a Maximum Award equal to the
number of shares of Stock that will be represented by an Actual Award to such
Designated Participant  if (i) specified
levels of applicable Performance Goals are achieved during the Performance
Period, (ii) the Committee does not reduce the Maximum Award on account of
the degree of achievement of applicable Other Performance Goals, and (iii) the
Designated Participant continues to render Service to the Company or any other
Participating Company during the entire Performance Period and any subsequent
additional vesting period.  If the
Committee does reduce the Maximum Award on account of the degree of achievement
of applicable Other Performance Goals, the Designated Participant will be
awarded a portion (or none) of the shares of Stock subject to the Maximum
Award; provided, however, that (i) if
the specified level of Performance Goals is not achieved during the Performance
Period, the Designated Participant will not receive any shares of Stock, and (ii) the
maximum number of shares of Stock that a Designated Participant may receive as
an Actual Award will in no event exceed the Maximum Award.  The methodology for the operation of the
Program in terms of establishing the Maximum Award based on the levels of
achievement of the Performance Goals and the determination of whether the
Maximum Award, or some portion of it, will become payable to a Designated
Participant as an Actual Award in respect of a Performance Period is set forth
in the attached Exhibit A.  As required by Section 5.4(b)(iii) of
the Plan and in accordance with Section 162(m) of the Code, in no
event may a Maximum Award be granted to a Designated Participant such that the
number of shares of Stock that could be earned by such Designated Participant
as an Actual Award would exceed two hundred thousand (200,000) shares of Stock
for each full fiscal year of the Company contained in the Performance Period
for such Actual Award.

 

(b)                                  Designated
Participants.  Each key
Employee of the Company or any other Participating Company who is designated by the Committee in
writing for participation in the Program for a particular Performance Period
shall be eligible for a Maximum Award with respect to such Performance
Period.  The Committee may designate a
key Employee who commences Service
after the beginning of a particular Performance Period as eligible to receive a
prorated Maximum Award for such Performance Period.  The determination as to whether an
individual is a Designated Participant shall be made by the Committee, in its
sole discretion, and such determination shall be binding and conclusive on all
persons.

 

No
Employee shall have any right to be a Designated Participant in the Program, to
continue as a Designated Participant, or to be granted a Maximum Award or
Actual Award under the Program.  The
Company is not obligated to give uniform treatment (e.g., number of shares subject to 

 

 

2

 

Maximum Awards) to Employees
or Designated Participants under the Program. 
Participation in the Program as to a particular Performance Period does
not convey any right to participate in the Program as to any other Performance
Period.

 

(c)                                  Performance
Goals and Other Performance Goals.  The Performance Goals for a particular
Performance Period and Other Performance Goals, if applicable, and their
relative weights, will be determined by the Committee, in its sole discretion.
The Committee also may establish, in its sole discretion, Performance Goals and
Other Performance Goals for annual, quarterly or other periods within the
applicable Performance Period.  The
Performance Goals and Other Performance Goals for a Performance Period or for
shorter periods within a Performance Period are not required to be identical to
the Performance Goals and Other Performance Goals for any other Performance
Period or shorter period within a Performance Period.  The Committee may establish Performance Goals
and Other Performance Goals for the Company that differ from those established
for one or more other Participating Companies and may establish different
Performance Goals and Other Performance Goals for each Designated Participant
or for groups of Designated Participants.

 

4.                                      Other
Program Provisions.

 

(a)                                  Distribution
of Actual Awards.  Assessment of
actual performance, determination of Actual Awards and the distribution of
shares of Stock in respect of Actual Awards will be subject to (i) certification
by the Committee that the applicable Performance Goals and other terms of the
Program have been met, (ii) the Committee’s determination as to the
appropriate reductions, if any, in the amounts of the Maximum Awards in
arriving at the amounts of the Actual Awards, based on the levels of achievement
of applicable Other Performance Goals, and (iii) the completion of any
subsequent additional vesting period. 
Unless an Actual Award provides otherwise, shares of Stock that are
credited to a Designated Participant as an Actual Award will be distributed to
the Designated Participant (or the Designated Participant’s heirs in the case
of death) within thirty (30) days following the applicable vesting date.  Notwithstanding the foregoing, if the Company
has provided a Designated Participant with a plan or program by which to defer
distribution of such shares of Stock and the Designated Participant has made an
effective election to defer such distribution under such plan or program, such
shares will be distributed to the Designated Participant (or the Designated
Participant’s heirs in the case of death) in accordance with such
election.  The Company shall withhold
shares of Stock otherwise deliverable to the Designated Participant in
satisfaction of any federal, state or local tax withholding obligation relating
to the delivery of Stock under the Actual Award, but the Company shall not
withhold a number of shares with a fair market value in excess of the
applicable tax withholdings determined by application of the minimum required
statutory rates.

 

(b)                                  Employment
and Termination.  In order to
receive shares of Stock in respect of an Actual Award under the Program, a
Designated Participant must continue to render Service to the Company or any
other Participating Company during the entire Performance Period, and for any
subsequent additional vesting period, except as otherwise provided under the
terms of the applicable award agreement.

 

(c)                                  No Employment or Service Rights.  Nothing in the Program or any instrument
executed or Award granted pursuant to the Program shall (i) confer upon
any Employee or Designated Participant any right to continue to be retained in
the employ or service of the Company or any other Participating Company, (ii) change
the at-will employment relationship between the Company or any other
Participating Company and an Employee or Designated Participant, or (iii) interfere
with the right of the Company or any other Participating Company to discharge
any Employee, Designated Participant or other person at any time, with or
without cause, and with or without advance notice.

 

 

3

 

A.                                    Program
Administration.  The
Committee shall be responsible for all decisions and recommendations regarding
Program administration and retains final authority regarding all aspects of
Program administration, the resolution of any disputes, and application of the
Program in any respect to a Designated Participant.  All determinations and interpretations made
by the Committee in good faith shall not be subject to review by any person and
shall be final, binding and conclusive on all persons.  The Committee may, without notice, amend,
suspend or terminate the Program; provided, however, that
no such action may adversely affect any then outstanding Award unless (i) expressly
provided by the Committee and (ii) with the consent of the Participant,
unless such action is necessary to comply with any applicable law, regulation
or rule.

 

B.                                    Stockholder Rights.  No Designated Participant
shall be deemed to be the holder of, or to have any of the rights of a holder
with respect to, any shares of Stock subject to a Maximum Award (including,
without limitation, the right to receive dividends) unless and until such
Designated Participant has received an Actual Award under the Program, has
vested in the shares subject to the Actual Award and has received delivery of
such shares; provided, however, that a plan or
program by which receipt of shares of Stock in respect of an Actual Award may
be deferred may provide for the crediting of dividend equivalent rights.

 

(d)                                  Validity.  If any provision of the Program is held
invalid, void, or unenforceable, the same will not affect, in any respect
whatsoever, the validity of any other provision of the Program.

 

(e)                                  Governing Plan Document.  The Program is subject to all the provisions
of the Plan and is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted by the
Committee, the Board or the Company pursuant to the Plan.  In the event of any conflict between the
provisions of this Program and those of the Plan, the provisions of the Plan
shall control.

 

 

4

 

EXHIBIT A

[               ] PERFORMANCE SHARE PROGRAM

 

AWARD
CALCULATION METHODOLOGY

 

 

 

[To Be Approved Annually]

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