Document:

exv10w3

Exhibit 10.3

Walter Investment Management Corp.

1999 Equity Incentive Plan

Nonqualified Option Award Agreement

 

 

 

 

Walter Investment Management Corp.

1999 Equity Incentive Plan

Nonqualified Option Award Agreement

     You have been selected to receive a grant of nonqualified Options pursuant to the Walter
Investment Management Corp. 1999 Equity Incentive Plan (the “Plan”), as specified below:

     Participant:
 

     Date
of
Grant:
 

     Number
of Shares Covered by This
Option:
 

     Option
Price: 

     Date of Expiration:
 

     Vesting of Options:
 

	 	 	 
	 	 	Portion of
	Vesting Date	 	Options Vesting
	 
	 
	 	 
	 

	 	 

THIS AGREEMENT, effective as of the Date of Grant set forth above, represents the grant of a
nonqualified Option by Walter Investment Management Corp., a Maryland corporation (the “Company”),
to the Participant named above, pursuant to the provisions of the Plan.

The Plan provides a complete description of the terms and conditions governing this Option. If
there is any inconsistency between the terms of this Agreement and the terms of the Plan, the
Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All
capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set
forth otherwise herein. The parties hereto agree as follows:

 

					
	 
	 	1
	 	 

 

 

	1.	 	Grant of Options. The Company hereby grants to the Participant an Option to purchase the number of
Shares set forth above, at the stated Option Price, which is one hundred percent (100%) of the
Fair Market Value of a Share on the Date of Grant, in the manner and subject to the terms and
conditions of the Plan and this Agreement.
	 
	2.	 	Exercise of Option. Except as hereinafter provided, the Participant may exercise this Option
at any time after the Option vests (according to the vesting schedule set forth above),
provided that no exercise may occur subsequent to the close of business on the Date of
Expiration (as defined on page 1 of this Agreement). This Option may be exercised in whole or
in part, but not for less than one hundred (100) Shares at any one time, unless fewer than one
hundred (100) Shares then remain subject to the Option, and the Option is then being exercised
as to all such remaining Shares.
	 
	3.	 	Termination of Service.

	 	(a)	 	By Death. In the event the employment of the Participant with the Company is terminated
by reason of death, the portion of the Option not yet vested as of the date of death shall
become immediately vested and exercisable. The entire Option shall remain exercisable at
any time prior to its expiration date, or for twelve (12) months after the date of death,
whichever period is shorter, by such person or persons as shall have been named as the
Participant’s beneficiary, or by such persons that have acquired the Participant’s rights
under the Options by will or by the laws of descent and distribution.
	 
	 	(b)	 	By Disability. In the event the employment of the Participant with the Company is
terminated by reason of Disability, the portion of the Option not yet vested as of the date
of termination shall become immediately vested and exercisable. The entire Option shall
remain exercisable at any time prior to its expiration date, or for twelve (12) months
after the date of termination, whichever period is shorter.
	 
	 	 	 	For purposes of this Agreement, disability shall be defined as a “permanent and total
disability” within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as
amended and such other disabilities, infirmities, afflictions or conditions as the Committee
by rule may include.
	 
	 	(c)	 	For Cause. In the event the employment of the Participant with the Company is
involuntarily terminated for Cause, all vested and unvested options shall be forfeited.
	 
	 	 	 	For purposes of this Agreement, Cause means the Participant’s:

	 	i)	 	Willful failure to substantially perform the Executive’s duties with the
Company (other than any such failure resulting from the Executive’s Disability), after
a written demand for substantial performance is delivered to the Executive that
specifically identifies the manner in which the Company believes that the Executive has
not substantially performed such duties, and the Executive has failed to remedy the
situation, to the extent possible, within fifteen (15) business days of such written
notice from the Company, or such longer time as may be reasonably required to remedy
the situation, but no longer than forty-five (45) calendar days;

 

					
	 
	 	2
	 	 

 

 

	 	ii)	 	Conviction of, or plea of guilty or nolo contendere, to any felony which, in
the discretion of the Compensation and Human Resources Committee of the Company’s Board
of Directors, is materially injurious to the Company or its reputation or which
compromises the Executive’s ability to perform the Executive’s job function, or any
other crime involving moral turpitude or the personal enrichment of the Executive at
the expense of the Company;
	 
	 	iii)	 	Willful violation of any of the covenants contained in the Participant’s
employment agreement (e.g., Noncompete, Nonsolicitation, Confidentiality, etc.), as
applicable;
	 
	 	iv)	 	Act of dishonesty resulting in or intending to result in personal gain at the
expense of the Company; or
	 
	 	v)	 	Engaging in any act that is intended, or may be reasonably expected, to harm
the reputation, business prospects, or operations of the Company.

	 	 	 	For purposes of this Section 3, no act or omission by the Executive shall be considered
“willful” unless it is done or omitted in bad faith or without reasonable belief that the
Executive’s action or omission was in the best interests of the Company. Any act or failure
to act based upon: (i) authority given pursuant to a resolution duly adopted by the Board;
or (ii) advice of counsel for the Company, shall be conclusively presumed to be done or
omitted to be done by the Executive in good faith and in the best interests of the Company.
	 
	 	(d)	 	For Other Reasons. Subject to the Compensation and Human Resource Committee’s (the
“Committee”) discretion, if the employment of the Participant shall terminate for any
reason other than the reasons set forth in this Section 3(a) through 3(c) herein, the
portion of the Option not yet vested as of the date of termination shall be forfeited. The
portion of the Option vested as of the effective date of termination shall remain
exercisable at any time prior to its expiration date, or for twelve (12) months after the
effective date of termination, whichever period is shorter.

	4.	 	Change in Control. Notwithstanding anything to the contrary in this Agreement, in the event
of a Change in Control of the Company and prior to the Participant’s termination of
employment, the Participant shall become immediately fully vested without restriction in all
Options granted pursuant to this Agreement.
	 
	5.	 	Restrictions on Transfer. Unless otherwise determined by the Committee in accordance with the
Plan, this Option may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. Further, this
Option shall be exercisable during the Participant’s lifetime only by the Participant or the
Participant’s legal representative.
	 
	6.	 	Recapitalization. In the event of any change in the capitalization of the Company such as a
stock split or a corporate transaction such as any merger, consolidation, separation, or
otherwise, the number and class of Shares subject to this Option, as well as the Option Price,
shall be equitably adjusted by the Committee to prevent dilution or enlargement of rights.

 

					
	 
	 	3
	 	 

 

 

	7.	 	Procedure for Exercise of Option. This Option may be exercised by delivery of written notice
to the Company at its executive offices, addressed to the attention of its Secretary. Such
notice: (a) shall be signed by the Participant or his or her legal representative; (b) shall
specify the number of full Shares then elected to be purchased with respect to the Option; (c)
unless a Registration Statement under the Securities Act of 1933 is in effect with respect to
the Shares to be purchased, shall contain a representation of the Participant that the Shares
are being acquired by him or her for investment and with no present intention of selling or
transferring them, and that he or she will not sell or otherwise transfer the Shares except in
compliance with all applicable securities laws and requirements of any stock exchange upon
which the Shares may then be listed; and (d) shall be accompanied by payment in full of the
Option Price of the Shares to be purchased.
	 
	 	 	The Option Price upon exercise of this Option shall be payable to the Company in full as
provided for in the Plan.
	 
	 	 	As promptly as practicable after receipt of notice and payment upon exercise, the Company shall
cause to be issued and delivered to the Participant or his or her legal representative, as the
case may be, certificates for the shares so purchased, which may, if appropriate, be endorsed
with appropriate restrictive legends. The share certificates shall be issued in the
Participant’s name (or, at the discretion of the Participant, jointly in the names of the
Participant and the Participant’s spouse). The Company shall maintain a record of all
information pertaining to the participant’s rights under this Agreement, including the number of
shares for which his or her Option is exercisable. If the Option shall have been exercised in
full, this Agreement shall be returned to the Company and canceled.
	 
	8.	 	Beneficiary Designation. The Participant may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any benefit under this
Agreement is to be paid in case of his or her death before he or she receives any or all of
such benefit. Each such designation shall revoke all prior designations by the Participant,
shall be in a form prescribed by the Company, and will be effective only when filed by the
Participant in writing with the Secretary of 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.
	 
	9.	 	Rights as a Stockholder. The Participant shall have no rights as a stockholder of the Company
with respect to the Shares subject to this Agreement until such time as the purchase price has
been paid, and the Shares have been issued and delivered to him or her.
	 
	10.	 	Continuation of Employment. This Agreement shall not confer upon the Participant any right to
continue employment with the Company, nor shall this Agreement interfere in any way with the
Company’s right to terminate the Participant’s service at any time.

 

					
	 
	 	4
	 	 

 

 

	11.	 	Miscellaneous.

	 	(a)	 	This Agreement and the rights of the Participant hereunder are subject to all the terms
and conditions of the Plan, as the same may be amended from time to time, as well as to
such rules and regulations as the Committee may adopt for administration of the Plan. The
Committee shall have the right to impose such restrictions on any Shares acquired pursuant
to the exercise of this Option, as it may deem advisable, including, without limitation,
restrictions under applicable federal securities laws, under the requirements of any stock
exchange or market upon which such Shares are then listed and/or traded, and under any blue
sky or state securities laws applicable to such Shares. It is expressly understood that the
Committee is authorized to administer, construe, and make all determinations necessary or
appropriate to the administration of the Plan and this Agreement, all of which shall be
binding upon the Participant.
	 
	 	(b)	 	The Committee may terminate, amend, or modify the Plan; provided, however, that no such
termination, amendment, or modification of the Plan may in any material way adversely
affect the Participant’s rights under this Agreement, without the written consent of the
Participant.
	 
	 	(c)	 	The Participant acknowledges and agrees that the Company shall have the power and the
right to deduct or withhold, an amount sufficient to satisfy federal, state, and local
taxes (including the Participant’s FICA obligation), domestic or foreign, required by law
to be withheld with respect to any exercise of the Participant’s rights under this
Agreement should Participant fail to make timely payment of all taxes due.
	 
	 	 	 	The Participant may elect, subject to any procedural rules adopted by the Committee, to
satisfy the withholding requirement, in whole or in part, by having the Company withhold
Shares having an aggregate Fair Market Value on the date the tax is to be determined, equal
to the minimum amount required to be withheld.
	 
	 	(d)	 	The Participant agrees to take all steps necessary to comply with all applicable
provisions of federal and state securities laws in exercising his or her rights under this
Agreement.
	 
	 	(e)	 	This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be
required.
	 
	 	(f)	 	All obligations of the Company under the Plan and this Agreement, with respect to this
Option, 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.
	 
	 	(g)	 	To the extent any provision of this Agreement is held by a court of competent
jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of
this Agreement shall not be affected by such holding and shall continue in full force in
accordance with their terms.

 

					
	 
	 	5
	 	 

 

 

	 	(h)	 	To the extent not preempted by federal law, this Agreement shall be governed by, and
construed in accordance with, the laws of the state of Maryland.
	 
	 	(i)	 	Notice hereunder shall be given to the Company at its principal place of business, and
shall be given to the Participant at the address set forth below, or in either case at such
addresses as one party may subsequently furnish to the other party in writing.
	 
	 	(j)	 	This Option is not intended to qualify as an “incentive stock option” under Section 422
of the Code.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Date of
Grant.

	 	 	 	 	 
	 	Walter Investment Management Corp.

 	 
	 	By:  	 	 
	 

	 	 	 	 	 
	ATTEST:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	Participant

	 	 
	 

	 	Participant’s name and address:	 	 
	 
	 

	 	 	 	 
	 

	 	 	 	 
	 
	 
	 

	 	 	 	 
	 
	 
	 

	 	 	 	 
	 
	 
	 

	 	 	 	 
	 

 

					
	 
	 	6exv10w1

Exhibit 10.1

SoundBite Communications, Inc.

2009 Management Cash Compensation Plan

Purpose

The purpose of this 2009 Management Cash Compensation Plan (this “Plan”) of SoundBite
Communications, Inc. (“SoundBite”) is to provide a balanced compensation package for SoundBite’s
management for 2009, in light of SoundBite’s needs and stage of development. This Plan seeks to
establish competitive levels of management compensation, integrate management’s pay with
SoundBite’s performance, and facilitate the attraction and retention of qualified management. This
Plan is intended to align management’s financial interests with those of stockholders and to
increase stockholder value through continued revenue growth coupled with improved financial
performance. This Plan is designed to focus management on increasing revenue, achieving
profitability, and meeting intermediate- and long-term strategic objectives. The bonus opportunity
is tied directly to factors that are expected to increase stockholder value.

Participants

The following members of management will participate in this Plan:

	 	•	 	President and Chief Executive Officer
	 
	 	•	 	Chief Operating Officer and Chief Financial Officer
	 
	 	•	 	Chief Technology Officer
	 
	 	•	 	Chief Marketing and Business Development Officer
	 
	 	•	 	Executive Vice President, Sales

Compensation

Compensation for each participant consists of two components: base salary and a variable
performance-based bonus.

In 2008 the Compensation Committee of SoundBite’s Board of Directors engaged a third-party
executive compensation consulting firm to review senior management compensation and to advise the
Compensation Committee with respect to 2008 compensation for senior management, including each of
the participants. The Compensation Committee established a base salary and a variable
performance-based bonus for each participant after considering a number of factors, including: the
status of the competitive marketplace for the participant’s position, including a comparison of
base salaries and bonuses for comparable positions at comparable companies within SoundBite’s
industry; the responsibilities of the position; the level of experience of the participant; and the
knowledge required of the participant.

In establishing the participants’ base salary and bonus levels for 2009, the Compensation Committee
reviewed the information previously provided by the executive compensation consulting firm for
purposes of establishing 2008 compensation, together with updates of that information prepared by
management at the request of the Compensation Committee. The Compensation Committee determined
that, in light of existing economic conditions and SoundBite’s needs and stage of development, it
was not necessary to engage an executive compensation consulting firm to perform a new review of
senior management compensation for purposes of this Plan.

	1.	 	Base Salary
	 
	 	 	The base salary of each participant is set forth on Schedule 1.

 

 

	2.	 	Variable Performance-Based Bonus
	 
	 	 	The aggregate target bonus amount available for all participants is $406,667 (the “Bonus
Target”).
	 
	 	 	The aggregate amount of the Bonus Target payable to all participants will be determined as
described below under “Initial Bonus Calculation,” which amount will be subject to the cap set
forth below under “Bonus Limitation.” The aggregate amount of the Bonus Target payable to the
participants will be allocated among the participant in accordance with the percentages set
forth in Schedule 1.
	 
	 	 	Bonus amounts payable under this Plan will be due within 30 days after the later of (a) the
completion of the audit of SoundBite’s consolidated financial statements for 2009 and (b) the
approval by the Compensation Committee of the bonus amounts payable under this Plan.
	 
	 	 	Initial Bonus Calculation. For 2009 the aggregate variable performance-based bonus for
all participants will equal the sum of components for revenue growth, pro forma operating
income, and organizational goals and objectives, each as determined by the Compensation
Committee, but subject to the cap described below under “Bonus Limitation.” Without limiting
the foregoing, the Compensation Committee will identify organization goals and objectives and
will evaluate and determine the extent to which each of those organization goals and objectives
has been satisfied as of December 31, 2009.
	 
	 	 	Bonus Limitation. The aggregate amount of the accrued Bonus Target computed as
described above under “Initial Bonus Calculation” is limited to an amount equal to:

	 	(a)	 	50% of SoundBite’s 2009 pro forma operating income, less
	 
	 	(b)	 	the amount of any employee bonuses paid or accrued outside this Plan and recorded in
2009.

Page 2 of 2

 

Schedule 1

Base Salaries and Bonus Target Allocations

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Bonus Target	 
	Name	 	Title	 	Base Salary	 	 	$	 	 	%	 
	James A. Milton	 	President and Chief Executive Officer
	 	$	216,667	(1)	 	$	116,667	 	 	 	28.69	%
	Robert C. Leahy	 	Chief Operating Officer and Chief Financial Officer
	 	 	240,000	 	 	 	110,000	 	 	 	27.05	 
	Timothy R. Segall	 	Chief Technology Officer
	 	 	225,000	 	 	 	75,000	 	 	 	18.44	 
	Mark D. Friedman	 	Chief Marketing and Business Development Officer
	 	 	225,000	 	 	 	75,000	 	 	 	18.44	 
	Jeffrey J. Struzenski	 	Executive Vice President, Sales
	 	 	168,750	 	 	 	    30,000	 	 	 	    7.38	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 
	    Totals	 	 
	 	 	 	 	 	$	406,667	 	 	 	100.00	%
	 	 	 
	 	 	 	 	 	 	 	 	 	 

 

			
	(1)	 	Based on employment commencement date of May 1, 2009, and represents eight months of base salary at an annual rate of $325,000.

Page 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]