Document:

2013.12.31 EX 10.8

Exhibit 10.8 

STOCK AWARD AGREEMENT
(Independent Director)

THIS STOCK AWARD AGREEMENT (the “Agreement”) is made effective as of the      day of            , 20     (the “Date of Grant”), between CYS Investments, Inc., a Maryland corporation (the “Company”), and              (the “Participant”).

R E C I T A L S:

WHEREAS, the Company has adopted the CYS Investments, Inc. 2013 Equity Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement; capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the Stock Award provided for herein to the Participant pursuant to the Plan and the terms set forth herein.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

1.    Grant of the Stock Award. Subject to the terms and conditions of the Plan and the additional terms and conditions set forth in this Agreement, the Company hereby grants to the Participant a stock award (the “Stock Award”) consisting of ______ restricted shares of the Company’s common stock, $.01 par value per share (the “Restricted Shares”). The Restricted Shares shall vest and become nonforfeitable in accordance with Section 2 hereof.

2.    Vesting.

(a)    Subject to the Participant’s continued service with the Company, the Restricted Shares shall vest and become nonforfeitable with respect to one-hundred percent (100%) of the Restricted Shares on                  , 20    .

(b)    If not sooner vested and nonforfeitable, the Restricted Shares shall vest and become nonforfeitable on the date that the Participant’s continued service with the Company ends on account of the Participant’s illness or injury that prevents the Participant from discharging the Participant’s duties as a member of the Company’s Board if the Participant’s service with the Company continues until such date.

(c)    If not sooner vested and nonforefeitable, the Restricted Shares shall vest and become nonforfeitable on a Control Change Date if the Participant continues service with the Company until the Control Change Date..

(d)    Resticted Shares that have not vested and become nonforfeitable on or before the date the Participant’s service with the Company terminates shall be forfeited by the Participant without consideration.

(e)    For purposes of this Agreement, “service” means service provided by the Participant to the Company as a member of the Company’s Board.

3.    Certificates. Certificates evidencing the Restricted Shares shall be issued by the Company and shall be registered in the Participant’s name on the stock transfer books of the Company promptly after the date hereof, but shall remain in the physical custody of the Company or its designee at all times prior to the vesting of such Restricted Shares pursuant to Section 2. As a condition to the receipt of this Restricted Stock Award, the Participant shall deliver to the Company a stock power, duly endorsed in blank, relating to the Restricted Shares. No certificates shall be issued for fractional Shares.

4.    Rights as a Stockholder. The Participant shall be the record owner of the Restricted Shares until or unless such Restricted Shares are forfeited pursuant to Section 2 hereof, and as record owner shall be entitled to all rights of a common stockholder of the Company, including, without limitation, voting rights with respect to the Restricted Shares and the Participant shall receive, when paid, any dividends on all of the Restricted Shares granted hereunder as to which the Participant is the record holder on the applicable record date; provided that the Restricted Shares shall be subject to the limitations on transfer and encumbrance set forth in Section 7. As soon as practicable following the vesting of any Restricted Shares pursuant to Section 2, certificates for the Restricted Shares which shall have vested shall be delivered to the Participant or to the Participant along with the stock powers relating thereto.

5.    Legend on Certificates. The certificates representing the vested Restricted Shares delivered to the Participant shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable Federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

6.    No Right to Continued Service. The granting of the Restricted Shares evidenced by this Agreement shall impose no obligation on the Company or any Affiliate to continue the service of the Participant and shall not lessen or affect the Company’s or any Affiliate’s right to terminate the service of such Participant.

7.    Transferability. The Restricted Shares may not, at any time prior to becoming vested pursuant to Section 2, be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.

8.    Securities Laws. Upon the vesting of any Restricted Shares, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement.

9.    Notices. Any notice necessary under this Agreement shall be addressed to the Company in care of its Secretary at the principal executive office of the Company and to the Participant at the address appearing in the corporate records of the Company for such Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee.

10.    Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS.

11.    Stock Award Subject to Plan. By entering into this Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan. The Stock Award and the 

Restricted Shares granted hereunder are subject to the Plan. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

12.    Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
IN WITNESS WHEREOF, the partied hereto have executed this Agreement.

	
			
	 
	CYS INVESTMENTS, INC.

	 
	 
	 

	 
	By:
	 

	 
	 
	Kevin E. Grant, Chief Executive Officer

	 
	 
	 

	Agreed and Acknowledged as of the date first above writtenex 10.1 - Exec Comp 2014

Exhibit 10.1

Rovi Corporation
2014 Senior Executive Company Incentive Plan
    
		
	I.
	INTRODUCTION

		
	a.
	The Objective of the 2014 Senior Executive Company Incentive Plan (the “Plan”) is to (i) enhance stockholder value by promoting strong linkages between executive contributions and company performance; (ii) support achievement of the business objectives of Rovi Corporation and its subsidiaries (the “Company”); and (iii) promote retention of participating employees of the Company.

		
	b.
	Participants:  This plan applies solely to the Chief Executive Officer and the senior executives reporting directly to the Chief Executive Officer at Rovi Corporation and its subsidiaries.

		
	c.
	Effective Date:  This Plan is effective for the fiscal year 2014, beginning January 1, 2014 through December 31, 2014.  This Plan is limited in time and expires automatically on December 31, 2014.  All benefits under this Plan are voluntary benefits.  Participation in this Plan during fiscal year 2014 does not convey any entitlement to participate in this or future plans or to the same or similar bonus payment benefits.

		
	d.
	Changes in the Plan:  The Company presently has no plans to change the Plan during the fiscal year.  However, this plan is a voluntary benefit provided by the Company and by virtue of the fact that bonuses are not a contractual entitlement and are paid at the sole discretion of the Company, the Company reserves the right to modify the Plan, in total or in part, at any time.  Any such change must be in writing and approved by the Compensation Committee of the Board of Directors.  The Compensation Committee of the Board of Directors reserves the right to interpret the Plan document as needed and such interpretations shall be final, conclusive and binding on all persons, and shall be given the maximum deference permitted by law.

		
	e.
	Entire Agreement:  This Plan is the entire agreement between the Company and the employee regarding the subject matter of this Plan and supersedes all prior bonus or commission incentive plans, whether with Rovi Corporation or any subsidiary or affiliate thereof, or any written or verbal representations regarding the subject matter of this Plan.

		
	II.
	ELIGIBILITY AND INCENTIVE PLAN ELEMENTS

		
	a.
	Eligibility:  The participants are eligible for the incentive payout if they meet the following requirements:

		
	•
	Except as otherwise explicitly set forth in the Participant’s Incentive Target Percentage Schedule (as defined in Section II below), are not currently on a sales incentive or commission plan or any other significant form of variable compensation (such as a services bonus plan)

		
	•
	Have a performance rating of Needs Development or above

		
	•
	Do not have a performance rating of Unsatisfactory at the time of calculation

		
	•
	Are not on a performance improvement plan at the time of calculation and have not received a written notice of warning or other disciplinary action during the year that remains in effect at the time of calculation

AND

The participant must be employed in an incentive-eligible position on or before the first working day of the last fiscal quarter of fiscal year 2014 and must be employed by the Company on the day the bonus is paid to be eligible for a 2014 incentive payment.  Participants may expect to receive their 2014 incentive payment no later than March 15, 2015.  Participants in the Plan with less than one year of service will be eligible for a prorated incentive amount as set forth in Proration Factor below.  In no event will any individual accrue any right or entitlement to any incentive under this Plan unless that individual is employed by the Company on the day the bonus is paid.  

Any exception to the above must be approved in writing by the Company’s Compensation Committee.

		
	b.
	The Annual Base Salary in effect at the end of the fiscal year represents the basis for the incentive calculation.  Nothing in the Plan, or arising as a result of a Participant’s participation in the Plan, shall prevent the Company from changing a Participant’s Annual Base Salary at any time based on such factors as the Company in its sole discretion determines appropriate.

		
	c.
	Incentive Target Percentage is a percentage level of base salary determined by the employee’s position except as otherwise approved by the Compensation Committee.  These targets will be weighted by company and individual performance, and will be set forth in an Incentive Target Percentage Schedule for each Participant in substantially the form attached hereto as Schedule A.

		
	d.
	Individual Performance Factor (“IPF”) is based upon the manager’s evaluation of performance and contribution for the fiscal year.  Such evaluation of performance will include measurement of the achievement of the 2014 Goals established by each employee.  

		
	e.
	Company Performance Factor is based upon the Company achieving an established worldwide revenue target and a worldwide operating profit target per the 2014 operating plan approved by the Board of Directors of the Company.  The applicable targets for fiscal year 2014 can be amended by the Compensation Committee of the Board of Directors at any time during the fiscal year.  Notwithstanding anything to the contrary contained herein, the Compensation Committee has the discretion to determine to pay less than the full amount (including to pay zero percent) of the payout to which any Participant would otherwise be entitled, which determination shall be based upon such factors as the Compensation Committee determines appropriate (including without limitation as a result of the Company’s or a Participant’s failing to achieve one or more objectives with respect to the fiscal year).   When the Adjusted Pro Forma (APF) Revenue and APF Operating Profit percentages fall between the stated percentages on the matrix, the Performance Factor will be determined using a straight-line interpolation approach.  If the Company (a) exceeds 120% of APF Revenue and/or 140% of APF Operating Profit or (b) does not achieve 85% of APF Revenue and/or 85% of APF Operating Profit, the Company Performance Factor will be determined using a straight-line extrapolation approach provided however that the Company Performance factor shall be no greater than 2.00 and provided further the Company Performance factor may be modified at the sole discretion of the Compensation Committee of the Board of Directors for any reason, including in the event that such Company Performance is due to an extraordinary or exceptional circumstance.

	
							
	120%
	.70
	1.00
	1.20
	1.50
	1.75
	2.00

	115%
	.70
	1.00
	1.18
	1.44
	1.68
	1.94

	110%
	.70
	1.00
	1.16
	1.38
	1.61
	1.88

	105%
	.70
	1.00
	1.14
	1.32
	1.54
	1.82

	100%
	.65
	1.00
	1.12
	1.26
	1.47
	1.76

	85%
	.50
	0.90
	1.10
	1.20
	1.40
	1.70

	 
	85%
	100%
	110%
	120%
	130%
	140%

Adjusted Pro Forma Operating Profit as a % of Goal

Example:        Company Performance
Actual APF Revenue is 110% of Goal
Actual APF Operating Profit is 120% of Goal

Company Performance Factor = 1.38

		
	f.
	CEO Discretionary Evaluation:  With respect to each Participant other than the CEO, (1) the “Company Performance Incentive” shall mean the Participant’s Annual Base Salary times such Participant’s Incentive Target Percentage times the Company Performance Factor times such Participant’s Company Performance Weighting times such Participant’s Proration Factor; and (2) the “Individual Performance Incentive” shall mean the Participant’s Annual Base Salary times such Participant’s Incentive Target Percentage times such Participant’s Individual Performance Weighting times such Participant’s Individual Performance Factor times such Participant’s Proration Factor.  The “Individual Performance Pool” shall mean the sum of the Individual Performance Incentives for all Participants other than the CEO.

The CEO has the discretion to designate an “Actual Individual Performance Pool” equal to up to three hundred percent (300%) of the Individual Performance Pool.  Notwithstanding a Participant’s Individual Performance Factor, the CEO has the discretion to allocate the Actual Individual Performance Pool among Participants (other than the CEO) based on the CEO’s assessment of each Participant’s individual performance.  For the avoidance of doubt, this means that a 

Participant could receive a Company Performance Incentive payment but the allocation of the Actual Individual Performance Pool could be greater than, equal to or less than the Target Individual Performance Incentive for such Participant. The CEO allocation must be approved by the Compensation Committee prior to payment to Participants. 

The Revenue Performance Factor for the Executive Vice President, WW Sales & Marketing and the Executive Vice President, IP & Licensing will be based on Revenue targets established by the Company.

		
	g. 
	Discretionary CEO Incentive:   In addition to the target incentive for the CEO set forth in Schedule A, the Compensation Committee may award to the CEO a performance-based discretionary incentive equal to up to two hundred percent (200%) of the CEO’s Annual Base Salary. 

		
	h. 
	Transfers and Terminations:  Any employee who is a participant in the Plan and who transfers to a new position not governed by this Plan will be eligible on a pro-rata basis for the applicable period and paid as defined by the Plan.  Employees who transfer into the Plan from another plan will be subject to proration as well, and consequently will be eligible to receive an incentive payment based on their participation in this Plan during fiscal year 2014 applying the Proration Factors referred to below.  Payments from the Plan are subject to reduction by advances, unearned commission advances, draws or prorations and appropriate withholdings.  Any exceptions to the Plan must be in writing and approved by the Compensation Committee.

A participant must be employed as of the day the bonus is paid to be eligible for the year-end incentive.    No incentive shall be deemed earned until the payment date.  If, prior to a payment date, an employee voluntarily resigns from employment or the employee’s employment is terminated for cause, the employee will not be eligible for any incentive payment.  If, prior to a payment date, an employee is terminated by the Company for reasons other than for cause, the Compensation Committee shall have absolute discretion to determine if the employee will remain eligible to receive any bonus payment, which bonus payment, if awarded, shall be prorated for the portion of the Plan Year during which employee was employed by the Company.

		
	i. 
	Proration Factor accounts for the number of calendar days during the fiscal year that the employee is in the incentive-eligible position.  For example, the proration factor for an employee who has been on the Plan the entire year will be 1.00.  For an employee who has been on the plan for 6 months, the factor will be 0.50.  Employees in the following situations will have a Proration Factor of less than 1.00:

		
	•
	Participants in the Plan who transferred to a new position not covered by the Plan

		
	•
	Employees who transferred from one incentive-eligible position to another incentive-eligible position.  Employees in this situation will have their incentive prorated based on the length of time in each position.

		
	•
	Employees who have been in the Plan less than 12 months (such as a new hire)

		
	•
	Employees who have been on a leave of absence of any length during the fiscal year

		
	•
	Employees working less than the full time standard work week will receive an incentive prorated according to the following schedule:

	
		
	Hours Worked
	Incentive Eligibility

	Less than full time > half time as defined by standard work week
	Prorated according to the average number of hours worked

	Less than half time of standard work week
	Not incentive eligible

Any modification to the above schedule must be approved by the Chief Executive Officer, the Chief Financial Officer and EVP of Human Resources in advance of the year end close date.

		
	III.
	PRACTICES AND PROCEDURES

		
	a.
	Procedure:

		
	•
	A copy of the Plan will be made available to each participant.

		
	•
	All incentive payments will be made after all required or elected withholdings have been deducted.

		
	b.
	Governing Law:  This Plan is governed by the law of California and the parties hereby submit to the exclusive jurisdiction of the County of Santa Clara, California courts. 

SCHEDULE A

INCENTIVE TARGET PERCENTAGE SCHEDULE

Revenue    Company    Individual    
Position             Target        Performance    Performance    Performance    
                                        
[Insert title, target and weighting of each factor for the Participant]

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