Document:

First Amendment dated as of March 16, 2004

 Exhibit 10.2 
  
 FIRST AMENDMENT 
  
 THIS FIRST AMENDMENT dated as of March 16, 2004 (this “Amendment”) amends the Amended and Restated Credit Agreement dated as of July 25,
2003 (the “Credit Agreement”) among PENTAIR, INC. (the “Company”), various subsidiaries thereof, various financial institutions and BANK OF AMERICA, N.A., as Administrative Agent. Terms defined in the Credit
Agreement are, unless otherwise defined herein or the context otherwise requires, used herein as defined therein. 
  
 WHEREAS, the Company, the Lenders and the Administrative Agent have entered into the Credit Agreement; and 
  
 WHEREAS, the parties hereto desire to amend the Credit Agreement in certain
respects as more fully set forth below. 
  
 NOW, THEREFORE, the
parties hereto agree as follows: 
  
 SECTION 1 Amendments.
Subject to the satisfaction of the conditions precedent set forth in Section 4, the Credit Agreement shall be amended as set in this Section 1. 
  
 SECTION 1.1 Amendment to Section 1.01. Section 1.01 is amended by (a) adding the following definitions in appropriate alphabetical sequence:

  
 “Bridge Facility means the
$850,000,000 Bridge Credit Agreement relating to the WICOR Acquisition, among the Company, various financial institutions and Bank of America, as Administrative Agent, as such agreement may be amended, modified or supplemented from time to
time.” 
  
 “JV Acquisition means
the Acquisition by the Company or a Subsidiary of all outstanding shares or other equity interests in a JV Entity not then owned by the Company or a Subsidiary.” 
  
 “JV Entity means each of the following entities in which, as of the date of this Agreement, a
Subsidiary holds a minority equity interest and which has been operated as a joint venture by such Subsidiary, Lucas Chang and various employees thereof: (i) Joinery Industrial Co., Ltd., a company limited by shares established and registered under
the laws of Taiwan, R.O.C.; (ii) Jointech Corporation Ltd., a company limited by shares established and registered under the laws of Cayman Islands; (iii) Hangtech Limited, a company limited by shares established and registered under the laws of
Hong Kong; and (iv) Orion International, LLC, a Pennsylvania limited liability company.” 
  
 “Tools Business means that portion of the Company’s assets and business, and/or any Subsidiary’s assets and
business, that is identified as, or reported as part of, the “tools segment” of the Company in the Company’s 10-Q for the quarterly period ended September 27, 2003.” 
  
 “WICOR Acquisition means the acquisition by the Company or a Subsidiary thereof of 100% of the
outstanding stock of WICOR, Inc., a Wisconsin Corporation, from Wisconsin Energy Corporation and the assumption by the Company or a Subsidiary thereof of debt of WICOR in an amount expected to be approximately $24,000,000 (subject to seasonal
working capital fluctuations and other changes in the ordinary course of business).”; and 
  
 (b) deleting the definition of “Permitted Acquisition” contained therein and replacing it with the following: 
  

“Permitted Acquisition means any Acquisition by the Company or a Subsidiary which satisfies each of the following
requirements: (i) no Event of Default or Unmatured Event of Default has occurred and is continuing at the time of, or will result from, such Acquisition; (ii) if the aggregate consideration to be paid by the Company and its Subsidiaries in
connection with such Acquisition (including Debt assumed, but excluding capital stock of the Company) exceeds $10,000,000, the Company shall have delivered to the Administrative Agent a certificate demonstrating that, after giving effect to such
Acquisition, the Company will be in pro forma compliance with Sections 13.02 and 13.03 (provided that, at any time that the Bridge Facility is outstanding, (a) the Company shall be required to deliver the above certificate in
connection with each Acquisition and (b) “Permitted Acquisition” shall not include any Acquisition (other than the WICOR Acquisition and any JV Acquisition) where the aggregate consideration to be paid by the Company and its Subsidiaries
in connection with such Acquisition (including Debt assumed, but excluding capital stock of the Company) would, when combined with all other consideration paid in connection with Acquisitions made during the term of the Bridge Facility (other than
the WICOR Acquisition and any JV Acquisition), exceed $25,000,000); and (iii) in the case of the Acquisition of any Person, the Board of Directors (or equivalent governing body) of the Person being acquired shall have approved such
Acquisition.” 
  

 1 

 SECTION 1.2 Amendment to Section 12.11. Section 12.11 is deleted in its entirety and replaced with the
following: 
  
 12.11 [Reserved.]

  
 SECTION 1.3 Amendment to Section 13.01. Section 13.01(j) is
deleted in its entirety and replaced with the following: 
  
 (j)    [Reserved.] 
  
 SECTION 1.4 Amendment to Section 13.02. Section 13.02 is deleted in its entirety and replaced with the following: 
  
 13.02 Maximum Leverage Ratio. The Company shall not at any time permit the Leverage Ratio to exceed: (a) if the Company has not sold all or
substantially all of the Tools Business, (i) during the period from the date of the completion of the WICOR Acquisition to October 1, 2004, 4.35 to 1, (ii) during the period from October 2, 2004 to December 30, 2004, 4.25 to 1 and (iii) at all times
on and after December 31, 2004, 3.00 to 1; and (b) if the Company has sold all or substantially all of the Tools Business, 3.00 to 1 (or, if the Company sells all or substantially all of the Tools Business prior to July 3, 2004, (x) 3.25 to 1 during
the period from the date of the completion of such sale to the earlier of October 1, 2004 or the date the Company notifies the Administrative Agent that the maximum Leverage Ratio should be reduced to 3.00 to 1 and (y) 3.00 to 1 on and after the
last day of the period specified in clause (x)). 
  
 SECTION 1.5
Amendment to Section 13.05. Section 13.05 is deleted in its entirety and replaced with the following: 
  
 13.05 Consolidations, Mergers and Sales of Assets; Acquisitions. 
  
 (a) No Borrower will merge or consolidate with any other non-affiliated Person or sell, lease, transfer or
otherwise dispose of all or substantially all of its assets as an entirety to any other Person unless: 
  
 (i) in the case of a merger or consolidation, the Person surviving such transaction is the applicable Borrower; and 
  
 (ii) immediately after giving effect to any such action, no
Event of Default or Unmatured Event of Default shall have occurred and be continuing. 
  
 (b) Without limiting clause (a) above, the Company will not, and will not permit its Subsidiaries to, at any time that the Bridge Facility
is outstanding, sell, lease, transfer or otherwise dispose of (or enter into any agreement to do any of the foregoing) assets having an aggregate fair market value greater than $10,000,000, excluding (i) the sale or lease of inventory in the
ordinary course of business, (ii) the licensing of intellectual property in the ordinary course of business, (iii) the sale of the Tools Business or any portion thereof, (iv) any sale or other disposition required by any Governmental Authority in
connection with the WICOR Acquisition, (v) sales pursuant to any Securitization Transaction to the extent permitted hereunder and (vi) the sale or other disposition of excess or obsolete facilities, equipment or inventory in the ordinary course of
business. 
  
 (c) The Company will not, and will
not permit any Subsidiary to, make any Acquisition other than Permitted Acquisitions. 
  
 SECTION 1.6 Amendment to Section 13.06. Section 13.06 is deleted in its entirety and replaced with the following: 
  
 13.06 Subsidiary Debt. The Company will not at any time permit the aggregate amount of all outstanding Debt of its Subsidiaries,
excluding: 
  
 (b) Debt arising under
Securitization Transactions in an aggregate amount not exceeding $150,000,000; 
  
 (c) Debt under the Bridge Facility; 
  

 2 

 (d) Debt of Subsidiaries existing as of the Closing Date and identified on Schedule
13.06; 
  
 (e) Debt under the Subsidiary
Guaranty; 
  
 (f) so long as the Subsidiary
Guaranty is in effect, Debt arising under unsecured guaranties of other senior debt facilities of the Company; and 
  
 (g) Debt of any entity acquired in a Permitted Acquisition occurring during the term of the Bridge Facility, to the extent such Debt is
outstanding at the time such entity becomes a Subsidiary (and not created in contemplation of such Acquisition), including Debt of WICOR, Inc. or any subsidiary thereof and Debt of any JV Entity or any subsidiary thereof, to the extent such entity
is acquired during the term of the Bridge Facility; 
  
 to exceed fifteen percent (15%) of Consolidated Shareholders’ Equity. 
  
 SECTION 1.7 Amendment to Article XIII. Article XIII is amended by adding the following new Sections 13.13 and 13.14 in appropriate numerical sequence: 
  
 13.13 Limitation on Distributions. At any time that the Bridge Facility is outstanding, the Company
shall not, nor shall it suffer or permit any of its Subsidiaries to, declare or make any dividend payment, other payment or other distribution of assets, properties, cash, rights, obligations or securities on account of any shares of any class of
its capital stock (except distributions in such capital stock) or purchase, redeem or otherwise acquire for value any shares of its capital stock or any warrants, rights or options to acquire such shares, now or hereafter outstanding (collectively,
“Restricted Payments”), except that: 
  
 (b) Subsidiaries of the Company may make Restricted Payments to the Company or to wholly-owned Subsidiaries of the Company; 
  
 (c) so long as no Event of Default or Unmatured Event of Default shall then exist and be continuing or would result after giving effect
thereto, the Company may declare and make dividend payments on account of any shares of any class of its capital stock, in the ordinary course of business consistent with past practice, in an aggregate amount not exceeding during the term of the
Bridge Facility 105% of the current annualized dividend rate (as adjusted for stock splits or stock dividends or similar events); and 
  
 (d) the Company or any Subsidiary may purchase, redeem or otherwise acquire shares of its common stock or other equity interests or
warrants or options to acquire any such shares of common stock or other equity interests in connection with employee or director benefit or compensation plans in the ordinary course of business consistent with past practice (or in connection with
any Permitted Acquisition or the sale of the Tools Business). 
  
 13.14 Bridge Facility. If at any time the Bridge Facility contains any term (including with respect to security, guaranties, representations and warranties, covenants and defaults) that is more restrictive than the equivalent term
contained herein (except for (x) the terms of the Bridge Facility as in effect on the date hereof and (y) maturity, requirements for mandatory prepayments and representations and warranties specifically related to the WICOR Acquisition), then the
Company shall promptly enter into an amendment to this Agreement so that, at all times that the Bridge Facility is outstanding, (a) the relevant terms of this Agreement will not be less restrictive than the comparable terms of the Bridge Facility
(except for matters described in the immediately preceding parenthetical clause) and (b) this Agreement will rank pari passu in all respects with the Bridge Facility. Any amendment made to this Agreement in accordance with this Section
13.14 shall, except as expressly set forth in such amendment, cease to be effective upon (i) the termination and payment in full of the Bridge Facility and (ii) the delivery of a written notice thereof from the Company to the Administrative
Agent and each Lender, which notice shall identify each such amendment that will cease to be effective. 
  
 SECTION 1.8 Amendment to Section 14.01. Section 14.01(b) is deleted in its entirety and replaced with the following: 
  
 (b)        any of the Borrowers shall fail to observe or
perform any covenant contained in Sections 13.02 to 13.07, inclusive, Section 13.09, Section 13.13 or Section 13.14; 
  
 SECTION 1.9 Amendment to Section 16.10. Section 16.10 is amended by deleting the last sentence thereof. 
  

 3 

 SECTION 1.10 Amendment to Schedule 1.01. Schedule 1.01 attached to the Credit Agreement is amended by
adding thereto, in appropriate numerical sequence, the following paragraphs: 
  
 5. At any time that the applicable maximum Leverage Ratio permitted pursuant to Section 13.02 is greater than 3.00 to 1, a leverage premium shall be added to each of the Applicable Margin, the L/C Fee Rate and the
Usage Fee Rate in an amount equal to (i) if Level I, II, III or IV pricing is then applicable, 22.5 bps and (ii) if Level V or VI pricing is then applicable, 20.0 bps. 
  
 6. At any time that the applicable maximum Leverage Ratio permitted pursuant to Section 13.02 is greater than 3.00 to 1, a
leverage premium shall be added to the Facility Fee Rate in an amount equal to (i) if Level I, II, III or IV pricing is then applicable, 2.5 bps and (ii) if Level V or VI pricing is then applicable, 5.0 bps.  
  
 SECTION 2 Representations and Warranties. The Company represents and
warrants to the Lenders and the Administrative Agent that (a) each of the representations and warranties of the Company set forth in the Credit Agreement is true and correct as of the date of the execution and delivery of this Amendment by the
Company, with the same effect as if made on such date, (b) the execution and delivery by the Company of this Amendment and the performance by the Company of its obligations under the Credit Agreement, as amended hereby (as so amended, the
“Amended Credit Agreement”), (i) are within the powers of the Company, (ii) have been duly authorized by all necessary action on the part of the Company, (iii) have received all necessary governmental approval and (iv) do not and
will not contravene or conflict with (A) any provision of law or the certificate of incorporation or by-laws or other organizational documents of the Company or (B) any agreement, judgment, injunction, order, decree or other instrument binding upon
the Company or any of its Subsidiaries and (c) the Amended Credit Agreement is a legal, valid and binding obligation of the Company and each other Borrower enforceable against the Company and each other Borrower in accordance with its terms, except
as enforceability may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies.

  
 SECTION 3 Amendment Fee. The Company agrees to pay to the
Administrative Agent, on March 16, 2004 (but only if the Required Lenders have executed and delivered to the Administrative Agent counterparts hereof on or before such date), for the account of each Committed Lender that has signed and delivered
to the Administrative Agent a counterpart hereof prior to 2:00p.m., Chicago time, on such date, an amendment fee in an amount equal to (i) such Committed Lender’s Commitment, multiplied by (ii) 0.125%. 
  
 SECTION 4 Effectiveness. Provided that the Company shall have paid the
fee set forth in Section 3 on the date set forth therein, the amendments set forth in Section 1 above shall become effective on the date on which the Administrative Agent has received each of the following, in each case in form and
substance satisfactory to the Administrative Agent: 
  
 (a)
counterparts (or facsimiles thereof) of signature pages to this Amendment executed by the Company, the Required Lenders and the Administrative Agent; 
  
 (b) a Confirmation of Subsidiary Guaranty, in the form attached hereto as Exhibit A, executed by each Subsidiary Guarantor; 
  
 (c) evidence that the Company has entered into a single-draw term loan
facility pursuant to which the Company may borrow up to $850,000,000, and evidence that the Company has borrowed funds thereunder in an amount sufficient to complete the acquisition by the Company or a Subsidiary of WICOR, Inc. from Wisconsin Energy
Corporation (the “WICOR Acquisition”); and 
  
 (d) evidence that the Company or a Subsidiary has completed the WICOR Acquisition on terms satisfactory to the Administrative Agent. 
  
 SECTION 5 Miscellaneous. 
  
 (a) Continuing Effectiveness, etc. As herein amended, the Credit Agreement shall remain in full force and effect and is hereby ratified and
confirmed in all respects. After the effectiveness hereof, all references in the Credit Agreement and the Notes to “Credit Agreement,” “Agreement” or similar terms shall refer to the Amended Credit Agreement. 
  

 4 

 (b) Counterparts. This Amendment may be executed in any number of counterparts and by the
different parties on separate counterparts, and each such counterpart shall be deemed to be an original but all such counterparts shall together constitute one and the same Amendment. 
  
 (c) Expenses. The Company agrees to pay the reasonable costs and expenses of the Administrative Agent (including
reasonable attorney’s fees and expenses) in connection with the preparation, execution and delivery of this Amendment. 
  
 (d) Governing Law. This Amendment shall be a contract made under and governed by the laws of the State of Illinois applicable to contracts made and
to be performed entirely within such State. 
  
 (e) Successors
and Assigns. This Amendment shall be binding upon the Company, the Lenders and the Administrative Agent and their respective successors and assigns, and shall inure to the benefit of the Company, the other Borrowers, the Lenders and the
Administrative Agent and the respective successors and assigns of the Lenders and the Administrative Agent. 
  

 5 

 Delivered at Chicago, Illinois as of the day and year first above written. 
  

	
	 PENTAIR, INC.

	
	 By

	 Name

	 Title

	
	 BANK OF AMERICA, N.A.,
 as Administrative Agent

	
	 By

	 Name

	 Title

	
	 BANK OF AMERICA, NA.,
 as a Committed Lender

	
	 By

	 Name

	 Title

	
	 BANK ONE, NA (Main Office Chicago)

	
	 By

	 Name

	 Title

	
	 U.S. BANK NATIONAL ASSOCIATION,
 as a Committed Lender

	
	 By

	 Name

	 Title

  
  

 6 

	
	 THE BANK OF TOKYO-MITSUBISHI, LTD.,
 CHICAGO BRANCH

	
	 By

	 Name

	 Title

	
	 SUNTRUST BANK

	
	 By

	 Name

	 Title

	
	 MIZUHO CORPORATE BANK, LTD.

	
	 By

	 Name

	 Title

	
	 BANK OF CHINA, LOS ANGELES BRANCH

	
	 By

	 Name

	 Title

  

 7 

	
	 THE GOVERNOR AND COMPANY OF
 THE BANK OF IRELAND

	
	 By

	 Name

	 Title

	
	 By

	 Name

	 Title

	
	 BNP PARIBAS

	
	 By

	 Name

	 Title

	
	 By

	 Name

	 Title

	
	 DEUTSCHE BANK AG NEW YORK BRANCH

	
	 By

	 Name

	 Title

	
	 By

	 Name

	 Title

  

 8 

	
	 FLEET NATIONAL BANK

	
	 By

	 Name

	 Title

	
	 KBC BANK N.V.

	
	 By

	 Name

	 Title

	
	 PNC BANK, NATIONAL ASSOCIATION

	
	 By

	 Name

	 Title

	
	 WELLS FARGO BANK, NATIONAL ASSOCIATION

	
	 By

	 Name

	 Title

	
	 By

	 Name

	 Title

  

 9 

	
	 BANCA DI ROMA – CHICAGO BRANCH

	
	 By

	 Name

	 Title

	
	 By

	 Name

	 Title

	
	 MELLON BANK, N.A.

	
	 By

	 Name

	 Title

	
	 NATIONAL CITY BANK

	
	 By

	 Name

	 Title

	
	 BANK HAPOALIM B.M.

	
	 By

	 Name

	 Title

	
	 By

	 Name

	 Title

  

 10 

 EXHIBIT A 
  
 CONFIRMATION OF SUBSIDIARY GUARANTY 
  
 To the Administrative Agent and the Lenders under and as 
     defined in the Credit Agreement referred to below 
  
 Please refer to the First Amendment dated as of March 16, 2004 (the “Amendment”) among Pentair, Inc. (the “Company”), various financial institutions and Bank of America, N.A., as
Administrative Agent, amending the Amended and Restated Credit Agreement dated as of July 25, 2003 (the “Credit Agreement”) among Pentair, Inc. (the “Company”), various subsidiaries thereof, various financial
institutions and Bank of America, N.A., as Administrative Agent. Capitalized terms used but not defined herein are used as defined in the Credit Agreement. 
  
 Each of the undersigned hereby confirms to the Administrative Agent and the Lenders that, after giving effect to the effectiveness of the Amendment, the
Subsidiary Guaranty (i) continues in full force and effect as a guaranty of all obligations of the Company under the Credit Agreement and all other liabilities described in the Subsidiary Guaranty and (ii) continues to be a legal, valid and binding
obligation of such undersigned, enforceable against such undersigned in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of
equity. 
  
 [Remainder of page intentionally left blank.]

  

 11 

 IN WITNESS WHEREOF, each of the undersigned has caused this Confirmation to be executed and delivered by
its duly authorized representative as of March 16, 2004. 
  

			
	 	 	 APLEX INDUSTRIES, INC.

	 	 	 BIESEMEYER MANUFACTURING CORPORATION

	 	 	 BURGER ACQUISITION, LLC

	 	 	 CENTURY MANUFACTURING CO.

	 	 	 CODELINE CORPORATION

	 	 	 DELTA INTERNATIONAL MACHINERY CORPORATION

	 	 	 DEVILBISS AIR POWER COMPANY

	 	 	 ELECTRONIC ENCLOSURES, INC.

	 	 	 ESSEF CORPORATION

	 	 	 EVERPURE, INC.

	 	 	 EVERPURE SALES COMPANY

	 	 	 FLECK CONTROLS, INC.

	 	 	 HOFFMAN ENCLOSURES (MEX.), LLC

	 	 	 HOFFMAN ENCLOSURES INC.

	 	 	 LINCOLN AUTOMOTIVE COMPANY

	 	 	 MCNEIL (OHIO) CORPORATION

	 	 	 MORAINE PROPERTIES, LLC

	 	 	 NATIONAL POOL TILE GROUP, INC.

	 	 	 OLDHAM SAW CO., INC.

	 	 	 PENTAIR ELECTRONIC PACKAGING COMPANY

	 	 	 PENTAIR ENCLOSURES, INC.

	 	 	 PENTAIR ENCLOSURES GROUP, INC.

	 	 	 PENTAIR POOL PRODUCTS, INC.

	 	 	 PENTAIR PUMP GROUP, INC.

	 	 	 PENTAIR TOOL & EQUIPMENT SALES COMPANY

	 	 	 PENTAIR TOOLS GROUP, INC.

	 	 	 PENTAIR TRANSPORT, INC.

	 	 	 PENTAIR WATER GROUP, INC.

	 	 	 PENTAIR WATER TREATMENT COMPANY

	 	 	 PFAM, INC.

	 	 	 PLYMOUTH PRODUCTS INC.

	 	 	 PORTER-CABLE ARGENTINA, LLC

	 	 	 PORTER-CABLE CORPORATION

	 	 	 PTG ACCESSORIES CORP.

	 	 	 SCHROFF, INC.

	 	 	 SUREWOOD ACQUISITION CORPORATION

	 	 	 THE WOODWORKERS CHOICE, INC.

	 	 	 WEB TOOL & MANUFACTURING, INC.

		
	 By:
	 	  

	 Name:
	 	 Louis L. Ainsworth

	 Title:
	 	 Senior Vice President,

	 	 	 General Counsel and Secretary

  
  

 12Amended and Restated 2000 Employee Stock Purchase Plan

 EXHIBIT 10.1 
  
 SUPPORTSOFT, INC. 
  
 2000 EMPLOYEE STOCK PURCHASE PLAN 
  
 (Adopted by the Board on February 15, 2000) 
  
 (As amended and restated as of April 13, 2004) 

 Table of Contents 
  

			
	 	  	Page

		
	 SECTION 1 Purpose Of The Plan
	  	3
		
	 SECTION 2 Definitions
	  	3
		
	 (a) “Accumulation Period”
	  	3
		
	 (b) “Board”
	  	3
		
	 (c) “Code”
	  	3
		
	 (d) “Committee”
	  	3
		
	 (e) “Company”
	  	3
		
	 (f) “Compensation”
	  	3
		
	 (g) “Corporate Reorganization”
	  	3
		
	 (h) “Eligible Employee”
	  	4
		
	 (i) “Exchange Act”
	  	4
		
	 (j) “Fair Market Value”
	  	4
		
	 (k) “IPO”
	  	4
		
	 (l) “Offering Period”
	  	4
		
	 (m) “Participant”
	  	4
		
	 (n) “Participating Company”
	  	4
		
	 (o) “Plan”
	  	4
		
	 (p) “Plan Account”
	  	4
		
	 (q) “Purchase Price”
	  	5
		
	 (r) “Stock”
	  	5
		
	 (s) “Subsidiary”
	  	5
		
	 SECTION 3 Administration Of The Plan
	  	5
		
	 (a) Committee Composition
	  	5
		
	 (b) Committee Responsibilities
	  	5
		
	 SECTION 4 Enrollment And Participation
	  	5
		
	 (a) Offering Periods
	  	5
		
	 (b) Accumulation Periods
	  	5
		
	 (c) Enrollment
	  	5
		
	 (d) Duration of Participation
	  	5
		
	 (e) Applicable Offering Period
	  	6
		
	 SECTION 5 Employee Contributions
	  	6
		
	 (a) Frequency of Payroll Deductions
	  	6
		
	 (b) Amount of Payroll Deductions
	  	6
		
	 (c) Changing Withholding Rate
	  	6
		
	 (d) Discontinuing Payroll Deductions
	  	6
		
	 (e) Limit on Number of Elections
	  	7
		
	 SECTION 6 Withdrawal From The Plan
	  	7
		
	 (a) Withdrawal
	  	7

  

 1 

			
		
	 (b) Re-enrollment After Withdrawal
	  	7
		
	 SECTION 7 Change In Employment Status
	  	7
		
	 (a) Termination of Employment
	  	7
		
	 (b) Leave of Absence
	  	7
		
	 (c) Death
	  	7
		
	 SECTION 8 Plan Accounts And Purchase Of Shares
	  	7
		
	 (a) Plan Accounts
	  	7
		
	 (b) Purchase Price
	  	7
		
	 (c) Number of Shares Purchased
	  	8
		
	 (d) Available Shares Insufficient
	  	8
		
	 (e) Issuance of Stock
	  	8
		
	 (f) Unused Cash Balances
	  	8
		
	 (g) Stockholder Approval
	  	8
		
	 SECTION 9 Limitations On Stock Ownership
	  	9
		
	 (a) Five Percent Limit
	  	9
		
	 (b) Dollar Limit
	  	9
		
	 SECTION 10 Rights Not Transferable
	  	9
		
	 SECTION 11 No Rights As An Employee
	  	9
		
	 SECTION 12 No Rights As A Stockholder
	  	10
		
	 SECTION 13 Securities Law Requirements
	  	10
		
	 SECTION 14 Stock Offered Under The Plan
	  	10
		
	 (a) Authorized Shares
	  	10
		
	 (b) Antidilution Adjustments
	  	10
		
	 (c) Reorganizations
	  	10
		
	 SECTION 15 Amendment Or Discontinuance
	  	10
		
	 SECTION 16 Execution
	  	11

  

 2 

 SUPPORTSOFT, INC. 
  

2000 EMPLOYEE STOCK PURCHASE PLAN 
  
 SECTION 1 Purpose Of The Plan. 
  
 The Plan was adopted by the Board on February 15, 2000, effective as of the date of the IPO. The purpose of the Plan is to provide Eligible Employees with
an opportunity to increase their proprietary interest in the success of the Company by purchasing Stock from the Company on favorable terms and to pay for such purchases through payroll deductions. The Plan is intended to qualify under section 423
of the Code. 
  

	SECTION	2 Definitions. 

  
 (a) “Accumulation Period” means a six-month period during which contributions may be made toward the purchase of Stock under the Plan, as
determined pursuant to Section 4(b). 
  
 (b)
“Board” means the Board of Directors of the Company, as constituted from time to time. 
  
 (c) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (d) “Committee” means a committee of the Board, as described in Section 3. 
  
 (e) “Company” means SupportSoft, Inc., a Delaware
Corporation. 
  
 (f) “Compensation” means (i) the
total compensation paid in cash to a Participant by a Participating Company, including salaries, wages, bonuses, incentive compensation, commissions, overtime pay and shift premiums, plus (ii) any pre-tax contributions made by the Participant under
section 401(k) or 125 of the Code. “Compensation” shall exclude all non-cash items, moving or relocation allowances, cost-of-living equalization payments, car allowances, tuition reimbursements, imputed income attributable to cars or life
insurance, severance pay, fringe benefits, contributions or benefits received under employee benefit plans, income attributable to the exercise of stock options, and similar items. The Committee shall determine whether a particular item is included
in Compensation. 
  
 (g) “Corporate
Reorganization” means: 
  
 (i) The
consummation of a merger or consolidation of the Company with or into another entity, or any other corporate reorganization; or 
  
 (ii) The sale, transfer or other disposition of all or substantially all of the Company’s assets or the complete liquidation or
dissolution of the Company. 
  

 3 

 (h) “Eligible Employee” means any employee of a Participating Company customary
employment is for more than five months per calendar year and for more than 20 hours per week. 
  
 The foregoing notwithstanding, an individual shall not be considered an Eligible Employee if his or her participation in the Plan is prohibited by the law of any country which has jurisdiction over him or her or if he
or she is subject to a collective bargaining agreement that does not provide for participation in the Plan. 
  
 (i) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (j) “Fair Market Value” means the market price of Stock, determined by the Committee as follows:

  
 (i) If Stock was traded on The Nasdaq
National Market on the date in question, then the Fair Market Value shall be equal to the last-transaction price quoted for such date by The Nasdaq National Market; 
  
 (ii) If Stock was traded on a stock exchange on the date in question, then the Fair Market Value shall be
equal to the closing price reported by the applicable composite transactions report for such date; or 
  
 (iii) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on
such basis as it deems appropriate. 
  
 Whenever possible, the
determination of Fair Market Value by the Committee shall be based on the prices reported in the Wall Street Journal or as reported directly to the Company by Nasdaq or a stock exchange. Such determination shall be conclusive and binding on
all persons. 
  
 (k) “IPO” means the initial
offering of Stock to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission. 
  
 (l) “Offering Period” means a 24-month period with respect to which the right to purchase Stock may be granted under the Plan, as
determined pursuant to Section 4(a). 
  
 (m)
“Participant” means an Eligible Employee who elects to participate in the Plan, as provided in Section 4(c). 
  
 (n) “Participating Company” means (i) the Company and (ii) each present or future Subsidiary designated by the Committee as a
Participating Company. 
  
 (o) “Plan” means this
SupportSoft, Inc. 2000 Employee Stock Purchase Plan, as it may be amended from time to time. 
  
 (p) “Plan Account” means the account established for each Participant pursuant to Section 8(a). 
  

 4 

 (q) “Purchase Price” means the price at which Participants may purchase Stock under the
Plan, as determined pursuant to Section 8(b). 
  
 (r)
“Stock” means the Common Stock of the Company. 
  
 (s) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  

	SECTION	3 Administration Of The Plan. 

  
 (a) Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist exclusively of one or more directors of the
Company, who shall be appointed by the Board. 
  
 (b) Committee
Responsibilities. The Committee shall interpret the Plan and make all other policy decisions relating to the operation of the Plan. The Committee may adopt such rules, guidelines and forms as it deems appropriate to implement the Plan. The
Committee’s determinations under the Plan shall be final and binding on all persons. 
  

	SECTION	4 Enrollment And Participation. 

  
 (a) Offering Periods. While the Plan is in effect, two Offering Periods shall commence in each calendar year. The Offering Periods shall consist of
the 24-month periods commencing on each February 1 and August 1, except that the first Offering Period shall commence on the date of the IPO and end on July 31, 2002. 
  
 (b) Accumulation Periods. While the Plan is in effect, two Accumulation Periods shall commence in each calendar year.
The Accumulation Periods shall consist of the six month periods commencing on February 1 and August 1, except that the first Accumulation Period shall commence on the date of the IPO and end on January 31, 2001. 
  
 (c) Enrollment. Any individual who, on the day preceding the first day
of an Offering Period, qualifies as an Eligible Employee may elect to become a Participant in the Plan for such Offering Period by executing the enrollment form prescribed for this purpose by the Committee. The enrollment form shall be filed with
the Company at the prescribed location not later than 15 days prior to the commencement of such Offering Period. 
  
 (d) Duration of Participation. Once enrolled in the Plan, a Participant shall continue to participate in the Plan until he or she ceases to be an
Eligible Employee, withdraws from the Plan under Section 6(a) or reaches the end of the Offering Period in which his or her employee contributions were discontinued under Section 5(d) or 9(b). A Participant who discontinued employee contributions
under Section 5(d) or 9(b) or withdrew from the Plan under Section 6(a) may again become a Participant, if he or she then is an Eligible Employee, by following the procedure described in Subsection (c) above. A Participant whose employee
contributions were discontinued automatically under Section 9(b) shall automatically resume participation at the 
  

 5 

 beginning of the earliest Offering Period ending in the next calendar year, if he or she then is an Eligible Employee.

  
 (e) Applicable Offering Period. For purposes of
calculating the purchase price under Section 8(b), the applicable Offering Period shall be determined as follows: 
  
 (i) Once a Participant is enrolled in the Plan for an Offering Period, such Offering Period shall continue to apply to him or her until
the earliest of: (A) the end of such Offering Period; (B) the end of his or her participation under Subsection (d) above; or (C) re-enrollment in a subsequent Offering Period under Paragraph (ii) below. 
  
 (ii) In the event that the Fair Market Value of Stock on the
last trading day before the commencement of the Offering Period in which the Participant is enrolled is higher than on the last trading day before the commencement of any subsequent Offering Period, the Participant shall automatically be re-enrolled
for such subsequent Offering Period. 
  
 (iii)
When a Participant reaches the end of an Offering Period but his or her participation is to continue, then such Participant shall automatically be re-enrolled for the Offering Period that commences immediately after the end of the prior Offering
Period. 
  
 SECTION 5 Employee
Contributions. 
  
 (a) Frequency of Payroll
Deductions. A Participant may purchase shares of Stock under the Plan solely by means of payroll deductions. Payroll deductions, as designated by the Participant pursuant to Subsection (b) below, shall occur on each payday during participation
in the Plan. 
  
 (b) Amount of Payroll Deductions.An
Eligible Employee shall designate on the enrollment form the portion of his or her Compensation that he or she elects to have withheld for the purchase of Stock. Such portion shall be a whole percentage of the Eligible Employee’s Compensation,
but not less than 1% nor more than 15%. 
  
 (c) Changing
Withholding Rate. If a Participant wishes to change the rate of payroll withholding, he or she may do so by filing a new enrollment form with the Company at the prescribed location at any time. The new withholding rate shall be effective as soon
as reasonably practicable after such form has been received by the Company. The new withholding rate shall be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% nor more than 15%. 
  
 (d) Discontinuing Payroll Deductions. If a Participant wishes to
discontinue employee contributions entirely, he or she may do so by filing a new enrollment form with the Company at the prescribed location at any time. Payroll withholding shall cease as soon as reasonably practicable after such form has been
received by the Company (In addition, employee contributions may be discontinued automatically pursuant to Section 9(b)). A Participant who has discontinued employee contributions may resume such contributions by filing a new 
  

 6 

 enrollment form with the Company at the prescribed location. Payroll withholding shall resume as soon as reasonably
practicable after such form has been received by the Company. 
  
 (e) Limit on Number of Elections. No Participant shall make more than two elections under Subsection (c) or (d) above during any Accumulation Period. 
  
 SECTION 6 Withdrawal From The Plan. 
  
 (a) Withdrawal. A Participant may elect to withdraw from the Plan by
filing the prescribed form with the Company at the prescribed location at any time before the last day of an Accumulation Period. As soon as reasonably practicable thereafter, payroll deductions shall cease and the entire amount credited to the
Participant’s Plan Account shall be refunded to him or her in cash, without interest. No partial withdrawals shall be permitted. 
  
 (b) Re-enrollment After Withdrawal. A former Participant who has withdrawn from the Plan shall not be a Participant until he or she re-enrolls in
the Plan under Section 4(c). Re-enrollment may be effective only at the commencement of an Offering Period. 
  
 SECTION 7 Change In Employment Status. 
  
 (a) Termination of Employment. Termination of employment as an Eligible Employee for any reason, including death,
shall be treated as an automatic withdrawal from the Plan under Section 6(a). (A transfer from one Participating Company to another shall not be treated as a termination of employment.) 
  
 (b) Leave of Absence. For purposes of the Plan, employment shall not be deemed to terminate when the Participant goes
on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing. Employment, however, shall be deemed to terminate ninety (90) days after the Participant goes on a leave, unless a contract
or statute guarantees his or her right to return to work. Employment shall be deemed to terminate in any event when the approved leave ends, unless the Participant immediately returns to work. 
  
 (c) Death. In the event of the Participant’s death, the amount
credited to his or her Plan Account shall be paid to a beneficiary designated by him or her for this purpose on the prescribed form or, if none, to the Participant’s estate. Such form shall be valid only if it was filed with the Company at the
prescribed location before the Participant’s death. 
  
 SECTION 8 Plan Accounts And Purchase Of Shares. 
  
 (a) Plan Accounts. The Company shall maintain a Plan Account on its books in the name of each Participant. Whenever an amount is deducted from the Participant’s Compensation under the Plan, such amount
shall be credited to the Participant’s Plan Account. Amounts credited to Plan Accounts shall not be trust funds and may be commingled with the Company’s general assets and applied to general corporate purposes. No interest shall be
credited to Plan Accounts. 
  
 (b) Purchase Price. The
Purchase Price for each share of Stock purchased at the close of an Accumulation Period shall be the lower of: 
  

 7 

 (i) 85% of the Fair Market Value of such share on the last trading day in such
Accumulation Period; or 
  
 (ii) 85% of the Fair
Market Value of such share on the last trading day before the commencement of the applicable Offering Period (as determined under Section 4(e)) or, in the case of the first Offering Period under the Plan, 85% of the price at which one share of Stock
is offered to the public in the IPO. 
  
 (c) Number of Shares
Purchased. As of the last day of each Accumulation Period, each Participant shall be deemed to have elected to purchase the number of shares of Stock calculated in accordance with this Subsection (c), unless the Participant has previously
elected to withdraw from the Plan in accordance with Section 6(a). The amount then in the Participant’s Plan Account shall be divided by the Purchase Price, and the number of shares that results shall be purchased from the Company with the
funds in the Participant’s Plan Account. The foregoing notwithstanding, no Participant shall purchase more than 1,000 shares of Stock with respect to any Accumulation Period nor more than the amounts of Stock set forth in Sections 9(b) and
14(a). The Committee may determine with respect to all Participants that any fractional share, as calculated under this Subsection (c), shall be (i) rounded down to the next lower whole share or (ii) credited as a fractional share. 
  
 (d) Available Shares Insufficient. In the event that the aggregate
number of shares that all Participants elect to purchase during an Accumulation Period exceeds the maximum number of shares remaining available for issuance under Section 14(a), then the number of shares to which each Participant is entitled shall
be determined by multiplying the number of shares available for issuance by a fraction, the numerator of which is the number of shares that such Participant has elected to purchase and the denominator of which is the number of shares that all
Participants have elected to purchase. 
  
 (e) Issuance of
Stock. Certificates representing the shares of Stock purchased by a Participant under the Plan shall be issued to him or her as soon as reasonably practicable after the close of the applicable Accumulation Period, except that the Committee may
determine that such shares shall be held for each Participant’s benefit by a broker designated by the Committee (unless the Participant has elected that certificates be issued to him or her). Shares may be registered in the name of the
Participant or jointly in the name of the Participant and his or her spouse as joint tenants with right of survivorship or as community property. 
  
 (f) Unused Cash Balances. An amount remaining in the Participant’s Plan Account that represents the Purchase Price for any fractional share
shall be carried over in the Participant’s Plan Account to the next Accumulation Period. Any amount remaining in the Participant’s Plan Account that represents the Purchase Price for whole shares that could not be purchased by reason of
Subsection (c) above, Section 9(b) or Section 14(a) shall be refunded to the Participant in cash, without interest. 
  
 (g) Stockholder Approval. Any other provision of the Plan notwithstanding, no shares of Stock shall be purchased under the Plan unless and until
the Company’s stockholders have approved the adoption of the Plan. 
  

 8 

 SECTION 9 Limitations On Stock Ownership. 
  
 (a) Five Percent Limit. Any other provision of the Plan
notwithstanding, no Participant shall be granted a right to purchase Stock under the Plan if such Participant, immediately after his or her election to purchase such Stock, would own stock possessing more than 5% of the total combined voting power
or value of all classes of stock of the Company or any parent or Subsidiary of the Company. For purposes of this Subsection (a), the following rules shall apply: 
  
 (i) Ownership of stock shall be determined after applying the attribution rules of section 424(d) of the
Code; 
  
 (ii) Each Participant shall be deemed
to own any stock that he or she has a right or option to purchase under this or any other plan; and 
  
 (iii) Each Participant shall be deemed to have the right to purchase 1,000 shares of Stock under this Plan with respect to each
Accumulation Period. 
  
 (b) Dollar Limit. Any other
provision of the Plan notwithstanding, no Participant shall purchase Stock with a Fair Market Value in excess of the following limit: 
  
 Any other provision of the Plan notwithstanding, no Participant shall purchase Stock with a Fair Market Value in excess of $25,000 per calendar year
(under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary of the Company). 
  
 For purposes of this Subsection (b), the Fair Market Value of Stock shall be determined in each case as of the beginning of the Offering Period in which
such Stock is purchased. Employee stock purchase plans not described in section 423 of the Code shall be disregarded. If a Participant is precluded by this Subsection (b) from purchasing additional Stock under the Plan, then his or her employee
contributions shall automatically be discontinued and shall resume at the beginning of the earliest Accumulation Period ending in the next calendar year (if he or she then is an Eligible Employee). 
  
 SECTION 10 Rights Not Transferable. 
  
 The rights of any Participant under the Plan, or any Participant’s
interest in any Stock or moneys to which he or she may be entitled under the Plan, shall not be transferable by voluntary or involuntary assignment or by operation of law, or in any other manner other than by beneficiary designation or the laws of
descent and distribution. If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or interest under the Plan, other than by beneficiary designation or the laws of descent and distribution, then such act
shall be treated as an election by the Participant to withdraw from the Plan under Section 6(a). 
  
 SECTION 11 No Rights As An Employee 
  
 Nothing in the Plan or in any right granted under the Plan shall confer upon the Participant any right to continue in the employ of a Participating
Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Participating 

  

 9 

 
Companies or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her employment at any time and for any reason, with
or without cause. 
  
 SECTION 12 No Rights As
A Stockholder. 
  
 A Participant shall have no rights as a
stockholder with respect to any shares of Stock that he or she may have a right to purchase under the Plan until such shares have been purchased on the last day of the applicable Offering Period. 
  
 SECTION 13 Securities Law Requirements. 

 
 Shares of Stock shall not be issued under the Plan unless the issuance
and delivery of such shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and
regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. 
  
 SECTION 14 Stock Offered Under The Plan. 
  

(a) Authorized Shares. The maximum aggregate number of shares of Stock available for purchase under the Plan is two million (2,000,000) shares,
plus an annual increase to be added on the first day of each of the Company’s fiscal years beginning in 2001 and ending in 2010, equal to the lesser of (i) two million (2,000,000) shares, (ii) 3% of the outstanding shares on such date or (iii)
a lesser amount determined by the board of directors. The aggregate number of shares available for purchase under the Plan shall at all times be subject to adjustment pursuant to Section 14. 
  
 (b) Antidilution Adjustments. The aggregate number of shares of Stock
offered under the Plan, the 1,000 share limitation described in Section 8(c) and the price of shares that any Participant has elected to purchase shall be adjusted proportionately by the Committee for any increase or decrease in the number of
outstanding shares of Stock resulting from a subdivision or consolidation of shares or the payment of a stock dividend, any other increase or decrease in such shares effected without receipt or payment of consideration by the Company, the
distribution of the shares of a Subsidiary to the Company’s stockholders or a similar event. 
  
 (c) Reorganizations. Any other provision of the Plan notwithstanding, immediately prior to the effective time of a Corporate Reorganization, the
Offering Period then in progress shall terminate and shares shall be purchased pursuant to Section 8, unless the Plan is assumed by the surviving corporation or its parent corporation pursuant to the plan of merger or consolidation. The Plan shall
in no event be construed to restrict in any way the Company’s right to undertake a dissolution, liquidation, merger, consolidation or other reorganization. 
  

SECTION 15 Amendment Or Discontinuance. 
  
 The Board shall have the right to amend, suspend or terminate the Plan at any time and without notice. Except as provided in
Section 14, any increase in the aggregate number of shares of Stock to be issued under the Plan shall be subject to approval by a vote of the stockholders of the Company. In addition, any other amendment of the Plan shall be subject to approval by a

  

 10 

 
vote of the stockholders of the Company to the extent required by an applicable law or regulation. 
  
 SECTION 16 Execution. 
  
 To record the amendment and restatement of the Plan by the Board the Company
has caused its authorized officer to execute the same. 
  

			
	 SupportSoft, Inc.

		
	 By:
	 	/s/ Brian M. Beattie
	 	 	

	 	 	Brian M. Beattie
	 Title:
	 	Executive Vice President of Finance and Administration,
	 	 	Chief Financial Officer and Secretary

  
  
  
  

 11

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