Document:

Offer Letter

Exhibit 10.3

[ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

April 28, 2004

Michael J. Lawrie

8 Country Club Road

Ridgefield, CT  06877

Dear Mike:

Siebel Systems, Inc. (the "Company") is pleased to offer you the position of Chief Executive Officer.  As Chief Executive Officer, you will report directly to the Board of Directors.   You agree to perform the duties set forth in the next sentence, as well as any other reasonable duties determined by the Board of Directors.  The parties' initial expectations regarding the primary duties of this position are as follows: (i) all duties, authorities and responsibilities customary for a chief executive officer of a public company, including executive responsibility for developing strategic direction and all operational and execution activities of the Company, (ii) ultimate management responsibility for all employees of the Company, other than those employees reporting to the Chairman of the Board of Directors, and (iii) preparation and submission of a revised operating budget to the Board of Directors on a quarterly basis, which shall serve to provide the scope of operational authority.  While you remain an employee of the Company, the Company will recommend that you be elected as a member of the Company's Board of Directors at no additional compensation.  You will resign from the Board upon termination of employment, unless requested to continue.

Salary and Bonus

Your starting salary will be $1,000,000 per year, paid on a semi-monthly basis.  You will be eligible to receive a target bonus of up to 125% of your base salary per year in the event the Board determines that you have achieved the performance objectives to be determined by the Board.  This bonus may be increased up to 200% of your base salary per year in the event the Board determines that you have substantially exceeded certain additional performance objectives established by the Board, in a manner consistent with market practices.  Such bonuses are earned and paid at the discretion of the Board.  The Company will endeavor to pay any bonus amounts determined by the Board in accordance with the foregoing within ninety (90) days after the end of the fiscal year.  During the fiscal year ending December 31, 2004, you will be guaranteed to receive a bonus equal to the amount payable at the 125% level. 

Stock Options

In addition, you will be granted stock options totaling 2,000,000 shares of Company common stock (the "Option"), subject to approval by the Board of Directors.  The Option will be granted at the first meeting of the Board of Directors or its Compensation Committee following your first day of employment, with a strike price equal to the fair market value on that date.  The Option will have a 5-year vesting schedule, such that the option will vest 20% upon your first anniversary of employment with the Company and 5% each quarter thereafter.  This option will vest in its entirety upon death during your employment with the Company.  The agreement embodying this stock option shall be consistent with the Company's standard form agreement, modified as necessary to incorporate the terms of this letter agreement.

Restricted Stock

Upon commencement of your employment on or before May 3, 2004, you will also be given a restricted stock award of 350,000 shares of common stock.  You will be required to hold 200,000 of these shares for at least two years following your start date.  In the event you voluntarily resign your employment with the Company during such two year period, you will be required to forfeit such shares.   In the event you are terminated without cause (as defined below) or in the event of a change of control (as defined below) during such two year period, such holding restriction will immediately expire.  The agreement embodying this restricted stock award shall be consistent with the Company's standard form agreement, modified as necessary to incorporate the terms of this letter agreement.

Indemnification

The parties acknowledge that they have no reason to believe that you are contractually prohibited by your current employer, International Business Machines Corporation ("IBM"), from accepting employment with the Company as outlined herein.  The parties also believe that the Company is not a competitor of IBM for purposes of impacting your ability to retain the proceeds of your IBM option exercises.  However, in the unlikely event that IBM incorrectly asserts that the Company is a competitor for purposes of such option exercises and is able to get a court of competent and final jurisdiction to enforce that assertion in a manner that causes you to irretrievably lose the right to retain the proceeds of such option exercises, the Company will reimburse you for such lost amount, up to a maximum of $6 million.  The parties agree that this promise is made solely to help you bear the risk of an erroneous assertion and enforcement, and not as an inducement for you to breach any obligations you may have to IBM.  You agree to cooperate fully in any legal actions to avoid this loss.  You also agree to cooperate with the Company in the acquisition of an insurance policy to cover this risk, if the Company chooses in its sole discretion to acquire such a policy; however, the foregoing shall not be construed as requiring any responsibility on your part to pay premiums or other monetary costs related to such policy.  In the event you voluntarily resign your employment with the Company during the two (2) year period following the commencement of your employment, the foregoing indemnity shall then terminate and you will be required to return immediately to the Company the entirety of any indemnity payments made to you on or before the effective date of such resignation.  

Additionally, the Company will defend and indemnify you against any claims arising from any decision made by you in good faith while performing services for the Company.  

Severance Benefits

You will be entitled to the following severance benefits, subject to your execution of a release of claims and two-year non-competition agreement in forms satisfactory to the Company or its successor(s)1:

__________________________

1  Such non-competition agreement will include a specific list of the Company's then-current primary competitors, and shall be restricted to such list.  [*] All other terms of such release and non-competition agreements will be negotiated in good faith between the parties at the time of severance, with the intent of structuring an agreement that is (i) consistent with then-applicable industry standards and (ii) effective and enforceable under applicable law.  In the event the parties are unable to agree on a particular term, they agree to seek the advice of a neutral third party benefits expert to help determine the applicable industry standards regarding such term.  You agree not to challenge the effectiveness or enforceability of such release and non-competition agreements, either directly or indirectly, in your individual capacity or through any subsequent employer or other third party.  Similarly, the Company agrees not to challenge the effectiveness or enforceability of such release and non-competition agreements as a means of avoiding payment of any severance benefits. 

A.  Termination Without Cause

In the event you are terminated without cause (as defined below), you shall be entitled to receive the following severance payments:

	Two (2) years' base salary and target bonus; 

	If you elect to continue your medical coverage under COBRA, the Company will reimburse your COBRA costs for one (1) year following the date of termination; 

	If you are terminated without cause any time during your first two (2) years of employment, you will receive immediate vesting of the first forty percent (40%) of your initial two (2) million share option grant (which shall include any shares already vested pursuant to the normal vesting schedule); 

	You will have a one-year period following termination of employment under this section A to exercise vested options, to the extent such options do not expire prior to or during such one-year period; and

	Any holding restrictions remaining on your initial restricted stock grant (as described above) shall be terminated.

For purposes of the foregoing, termination "without cause" means termination by the Company for any reason other than (i) conviction of a felony or a crime involving moral turpitude, fraud, or an act of dishonesty against the Company; (ii) gross negligence in the performance of your responsibilities; (iii) material violation or breach of any Company policy or statutory, fiduciary, or contractual duty to the Company; or (iv) other willful misconduct.  Termination without cause shall also be deemed to include the resignation by you for "good reason" (as defined below, absent the threshold requirement of a change of control).

B.  Change of Control

In the event there is a change of control (as defined below) during your employment and within one (1) year thereafter, you either quit for good reason (as defined below) or are terminated without cause, you shall be entitled to receive the following severance payments:

	Two (2) years' continuation of your base salary and target bonus;

	If you elect to continue your medical coverage under COBRA, the Company will reimburse the cost of COBRA coverage for one (1) year following the date of termination;

	If your employment terminates under this section B at any time during your first two (2) years of employment, you will receive immediate vesting of 100% of your initial two (2) million share option grant; 

	You will have a one-year period following termination of employment under this section B to exercise vested options, to the extent such options do not expire prior to or during such one-year period; and

	Any holding restrictions remaining on your initial restricted stock grant (as described above) shall be terminated.

For purposes of the foregoing, a "change in control" will be deemed to include the following events:

	a merger, consolidation or reorganization approved by the Company's stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the outstanding 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; 

	the sale, transfer or other disposition of all or substantially all of the Company's assets as an entirety or substantially as an entirety to any person, entity or group of persons acting in consort other than a sale, transfer or disposition to an entity, at least fifty percent (50%) of the combined voting power of the voting securities of which is owned by the Company or by stockholders of the Company in substantially the same proportion as their ownership of the Company immediately prior to such sale; or

	any transaction or series of related transactions pursuant to which any person or any group of persons comprising a "group" within the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934, as amended (other than the Company or a person that, prior to such transaction or series of related transactions, directly or indirectly controls, is controlled by or is under common control with, the Company) becomes directly or indirectly the beneficial owner (within the meaning of Rule l3d-3 of the Securities Exchange Act of 1934, as amended) of securities possessing (or convertible into or exercisable for securities possessing) more than thirty-five percent (35%) of the total combined voting power of the Company's securities outstanding immediately after the consummation of such transaction or series of related transactions, whether such transaction involves a direct issuance from the Company or the acquisition of outstanding securities held by one or more of the Company's stockholders; provided, however, that any such transaction or series of transactions by Thomas M. Siebel, acting either alone or in conjunction with any affiliate, shall be exempt from the foregoing.

For purposes of the foregoing, "good reason" means the occurrence of any of the following after a change in control (without your agreement and with such occurrence failing to be cured within a reasonable time following prior written notice):

	Any reduction in the aggregate level of your base salary and annual target bonus by more than 25%;

	Any material reduction in your duties or responsibilities; 

	A requirement that you relocate to a location more than fifty (50) miles from your then current office location (other than to the San Francisco Bay Area or Fairfield County, Connecticut); or

	A change in reporting structure such that you no longer report to the Board of Directors.

Compensation received by you in connection with any post-termination employment with another company shall not be deemed to reduce the amount of any severance payment provided for under this letter agreement.

The Company agrees to cooperate with your efforts to extend the medical portion of your COBRA benefits for up to thirty (30) months following your last day of employment pursuant to this Severance Benefits section, to the extent permitted by applicable law.  Any such coverage beyond the first year shall be at your sole expense.

Relocation and Other Expenses

You will work at our facility located in San Mateo, California.  You will be provided up to $5,000 per month for housing in the San Francisco Bay Area for up to 48 months following the commencement of your employment.  The Company agrees to pay all reasonable costs associated with your relocation to the Bay Area on or prior to the expiration of such period, up to a maximum of $50,000.  Such relocation costs will be refunded to the Company in the event you voluntarily terminate your employment within twenty four (24) months following the commencement of your employment with the Company.

During the course of your employment, the Company will reimburse you for all reasonable expenses incurred by you in the performance of your duties.

The Company shall reimburse you for your reasonable attorneys' fees incurred in connection with the contemplation, preparation, negotiation and execution of this letter agreement, up to $20,000.  

General

The validity, interpretation, construction and performance of this letter agreement and the rights of the parties under this letter agreement shall be interpreted and enforced under California law without reference to principles of conflicts of laws.

In the event of litigation between the parties to this letter agreement, each party will be responsible for its own attorneys' fees.  

As a condition of employment with the Company and in order to accept this offer, please sign and return the enclosed Terms and Conditions of Employment and Proprietary Information and Inventions Agreement.  

If you accept our offer, your first day of employment will be no later than May 3, 2004.

If you have any questions, please feel free to call me at 650-295-5000.  I look forward to your favorable reply and to a productive and exciting working relationship.

Sincerely,

/s/Thomas M. Siebel

Thomas M. Siebel

Chairman and CEO

 

/s/J. Michael Lawrie

J. Michael Lawrie

 

Terms and Conditions of Employment

This document sets forth important benefit information and terms and conditions related to your employment (the "Terms and Conditions of Employment") with Siebel Systems, Inc. (the "Company").  Please review the information carefully, sign and date the acknowledgement below, and return the signed Terms and Conditions of Employment in the enclosed envelope.

As a Company employee, you will be expected to abide by all Company rules, policies and procedures.  You will be expected to sign and comply with the enclosed Proprietary Information and Inventions Agreement (the "PIIA"), the terms of which are incorporated herein by reference, which requires, among other provisions, the assignment of intellectual property rights to any invention made during your employment at the Company and non-disclosure of proprietary information.  You agree that the non-solicitation provisions included in such PIIA are hereby extended to two (2) years following your last day of employment.  You will also be expected to sign the Company's Employee Handbook acknowledging that you have received and read the current version of the handbook.

Your offer of employment is subject to your submission of an I-9 form and satisfactory documentation respecting your identification and right to work in the United States no later than three (3) days after your employment begins.  Your offer of employment is also contingent on successful completion of a background investigation.  Failure to consent to, complete, or pass the background screening will cause the Company to withdraw its offer of employment.

The Company offers a complete benefit program which includes medical, dental, vision, basic life/AD&D, supplemental life/AD&D, long/short term disability, flexible spending accounts, employee assistance program, 401(k) and an employee stock purchase plan.  The benefit costs, coverage levels and enrollment processes are outlined in detail in the enclosed benefit summary.  

Your starting compensation, position, stock information and other terms are set forth in the attached offer letter.  By signing the Terms and Conditions of Employment, you are also agreeing to the terms set forth in the offer letter.  Oral or written representations contradicting or supplementing the terms of the offer letter are not valid.

Your employment relationship with the Company will be an "at-will" relationship, which means that the Company will have the right to terminate your employment at any time, with or without advance notice and with or without cause.  In the event you voluntarily terminate your employment, you agree to give the Company at least 30 days' written notice.  The terms and conditions of your employment, including the "at will" employment relationship, supersede all prior written and oral communication with you regarding your employment with the Company and can only be modified by written agreement signed by you and an authorized officer of the Company.

By signing below, you acknowledge and agree that you have read and understood the terms and conditions of your employment.

ACKNOWLEDGED AND AGREED:

/s/J.Michael Lawrie                                                               4/30/04

J. Michael Lawrie                                                                   DateRSU

Exhibit 10.4

Siebel Systems, Inc.

Restricted Stock Unit Grant Notice

([1996/1998] Equity Incentive Plan)

Siebel Systems, Inc. (the "Company"),
pursuant to Section 8 of its Siebel Systems, Inc. [1996/1998] Equity Incentive
Plan (the "Plan"), hereby awards to Employee a Restricted Stock
Unit covering the number of shares (the "Shares") set forth below
(the "Award"). This Award shall be evidenced by a Restricted Stock
Unit Award Agreement (the "Award Agreement"). This Award is
subject to all of the terms and conditions as set forth herein and in the
applicable Award Agreement, the Plan, and the Employee's Restricted Stock Unit
Election Agreement (the "Election Agreement"), all of which are
attached hereto and incorporated herein in their entirety. 

	
Employee:
	
 
	
__________________________

	
Date of Grant:
	
 
	
__________________________

	
Number of Shares subject to Award:
	
 
	
__________________________

	
Purchase Price per Share:
	
 
	
__________________________

	
Total Purchase Price:
	
 
	
__________________________

Vesting Schedule: 

Additional Terms/Acknowledgements: The undersigned
acknowledges receipt of, and understands and agrees to, this Grant Notice, the
Award Agreement and the Plan. Employee further acknowledges that as of the Date
of Grant, this Grant Notice, the Award Agreement, the Election Agreement and the
Plan set forth the entire understanding between Employee and the Company
regarding the acquisition of Shares and supersede all prior oral and written
agreements on that subject with the exception of (i) Awards previously granted
and delivered to Employee under the Plan, and (ii) the following agreements
only:

	
Other Agreements:
	
 
	
__________________________

	
 
	
 
	
__________________________

	
Siebel Systems, Inc.
	
Employee: 

	
By: __________________________
	
__________________________

	
Signature
	
Signature

	
Title: __________________________
	
Date: __________________________

	
Date: __________________________
	
 

Attachments: Award Agreement, Election Agreement,
and Siebel Systems, Inc. [1996/1998] Equity Incentive Plan 

Attachment I

                  Award Agreement

Siebel Systems, Inc.

                  [1996/1998] Equity Incentive Plan

                  Restricted Stock Unit Award Agreement

 

Pursuant to the Restricted Stock Unit Grant Notice
("Grant Notice") and this Restricted Stock Unit Award Agreement
("Agreement"), Siebel Systems, Inc. (the "Company")
has awarded you a Restricted Stock Unit pursuant to Section 8 of the Siebel
Systems, Inc. [1996/1998] Equity Incentive Plan (the "Plan") for
the number of Shares as indicated in the Grant Notice (collectively, the
"Award"). Defined terms not explicitly defined in this Agreement
but defined in the Plan shall have the same definitions as in the Plan.

The details of your Award are as follows.

	Purchase Price. The purchase price for each Share
shall be $0.001.

	Vesting. Subject to the limitations contained
herein, your Award shall vest as provided in the Grant Notice. 

	Dividends. You shall be entitled to receive
payments equal to any cash dividends and other distributions paid with respect
to a corresponding number of Shares covered by your Award, provided that if any
such dividends or distributions are paid in Shares, the Fair Market Value of
such Shares shall be converted into additional Shares covered by the Award, and
further provided that such additional Shares shall be subject to the same
forfeiture restrictions and restrictions on transferability as apply to the
Awards with respect to which they relate.

	Distribution of Shares of Common Stock. The
Company shall deliver to you a number of Shares of the Company's Common Stock
("Stock") equal to the number of vested Shares subject to your
Award, including any additional Shares received pursuant to Section 3 above, on
the date or dates that you elect (the "Settlement Date"). If such
deferral election is made, the Committee shall, in its sole discretion,
establish the rules and procedures for such deferrals.

	Number of Shares. In the event of a subdivision of
the outstanding Stock, a declaration of a dividend payable in Shares, a
declaration of a dividend payable in a form other than Shares in an amount that
has a material effect on the value of Shares, a combination or consolidation of
the outstanding Stock into a lesser number of Shares, a recapitalization, a
spinoff, a reclassification or a similar occurrence, the Committee shall make
appropriate adjustments in the number of Shares covered by your Award. 

	Securities Law Compliance. You may not be issued
any Shares under your Award unless the Shares are either (i) then registered
under the Securities Act or (ii) the Company has determined that such issuance
would be exempt from the registration requirements of the Securities Act. Your
Award must also comply with other applicable laws and regulations governing the
Award, and you shall not receive such Shares if the Company determines that such
receipt would not be in material compliance with such laws and
regulations.

	Restrictive Legends. The Shares issued under your
Award shall be endorsed with appropriate legends, if any, determined by the
Company.

	Transferability. Your Award is not transferable,
except by will or by the laws of descent and distribution. Notwithstanding the
foregoing, by delivering written notice to the Company, in a form satisfactory
to the Company, you may designate a third party who, in the event of your death,
shall thereafter be entitled to receive any distribution of Shares pursuant to
Section 4 of this Agreement.

	Award not a Service Contract. Your Award is not an
employment or service contract, and nothing in your Award shall be deemed to
create in any way whatsoever any obligation on your part to continue in the
service of the Company or a subsidiary, or on the part of the Company or a
subsidiary to continue such service. In addition, nothing in your Award shall
obligate the Company or a subsidiary, their respective stockholders, boards of
directors or Employees to continue any relationship that you might have as an
Employee of the Company or a subsidiary.

	Unsecured Obligation. Your Award is unfunded, and
as a holder of a vested Award, you shall be considered an unsecured creditor of
the Company with respect to the Company's obligation, if any, to issue Shares
pursuant to this Agreement. You shall not have voting or any other rights as a
stockholder of the Company with respect to the Shares purchased pursuant to this
Agreement until such Shares are issued to you pursuant to Section 4 of this
Agreement. Upon such issuance, you will obtain full voting and other rights as a
stockholder of the Company. Nothing contained in this Agreement, and no action
taken pursuant to its provisions, shall create or be construed to create a trust
of any kind or a fiduciary relationship between you and the Company or any other
person. 

	Withholding Obligations.

 (a)  On or before the time you receive a distribution of
Shares pursuant to your Award, or at any time thereafter as requested by the
Company, you hereby authorize any required withholding from, at the Company's
election, the Shares, payroll and any other amounts payable to you and otherwise
agree to make adequate provision for any sums required to satisfy the federal,
state, local and foreign tax withholding obligations of the Company or a
subsidiary, if any, which arise in connection with your Award.

 (b)  Unless the tax withholding obligations of the Company
and/or any subsidiary are satisfied, the Company shall have no obligation to
issue a certificate for such Shares.

	Notices. Any notices provided for in your Award or
the Plan shall be given in writing and shall be deemed effectively given upon
receipt or, in the case of notices delivered by the Company to you, five (5)
days after deposit in the United States mail, postage prepaid, addressed to you
at the last address you provided to the Company. Any notice shall have been
deemed given when actually delivered.

	Headings. The headings of the Sections in this
Agreement are inserted for convenience only and shall not be deemed to
constitute a part of this Agreement or to affect the meaning of this
Agreement.

	Amendment. This Agreement may be amended only by
a writing executed by the Company and you which specifically states that it is
amending this Agreement. Notwithstanding the foregoing, this Agreement may be
amended solely by the Committee by a writing which specifically states that it
is amending this Agreement, so long as a copy of such amendment is delivered to
you, and provided that no such amendment adversely affecting your rights
hereunder may be made without your written consent. Without limiting the
foregoing, the Committee reserves the right to change, by written notice to you,
the provisions of this Agreement in any way it may deem necessary or advisable
to carry out the purpose of the grant as a result of any change in applicable
laws or regulations or any future law, regulation, ruling, or judicial decision,
provided that any such change shall be applicable only to rights relating to
that portion of the Award which is then subject to restrictions as provided
herein.

	Miscellaneous.

 (a) The rights and obligations of the Company under your
Award shall be transferable by the Company to any one or more persons or
entities, and all covenants and agreements hereunder shall inure to the benefit
of, and be enforceable by the Company's successors and assigns.

 (b) You agree upon request to execute any further documents
or instruments necessary or desirable in the sole determination of the Company
to carry out the purposes or intent of your Award.

 (c) You acknowledge and agree that you have reviewed your
Award in its entirety, have had an opportunity to obtain the advice of counsel
prior to executing and accepting your Award and fully understand all provisions
of your Award.

 (d) 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.

 (e) All obligations of the Company under the Plan and this
Agreement 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.

	Governing Plan Document. Your Award is subject to
all the provisions of the Plan, the provisions of which are hereby made a part
of your Award, and is further subject to all interpretations, amendments, rules
and regulations which may from time to time be promulgated and adopted pursuant
to the Plan. In the event of any conflict between the provisions of your Award
and those of the Plan, the provisions of the Plan shall control; provided,
however, that Section 4 of this Agreement shall govern the timing of any
distribution of Shares under your Award. The Committee shall have the power to
interpret the Plan and this Agreement and to adopt such rules for the
administration, interpretation, and application of the Plan as are consistent
therewith and to interpret or revoke any such rules. All actions taken and all
interpretations and determinations made by the Committee shall be final and
binding upon you, the Company, and all other interested persons. No member of
the Committee shall be personally liable for any action, determination, or
interpretation made in good faith with respect to the Plan or this
Agreement.

	Effect on Other Employee Benefit Plans. The value
of the Award subject to this Agreement shall not be included as compensation,
earnings, salaries, or other similar terms used when calculating the Employee's
benefits under any employee benefit plan sponsored by the Company or any
subsidiary except as such plan otherwise expressly provides. The Company
expressly reserves its rights to amend, modify, or terminate any of the
Company's or any subsidiary's employee benefit plans.

	Choice of Law. The interpretation, performance
and enforcement of this Agreement shall be governed by the law of the state of
California without regard to such state's conflicts of laws
rules.

	Severability. If all or any part of this Agreement
or the Plan is declared by any court or governmental authority to be unlawful or
invalid, such unlawfulness or invalidity shall not invalidate any portion of
this Agreement or the Plan not declared to be unlawful or invalid. Any Section
of this Agreement (or part of such a Section) so declared to be unlawful or
invalid shall, if possible, be construed in a manner which will give effect to
the terms of such Section or part of a Section to the fullest extent possible
while remaining lawful and valid.

IN WITNESS WHEREOF, the parties have executed and delivered
this Agreement effective as of the day and year set forth below.

	
Employee
	
Siebel Systems, Inc.

	
__________________________
	
By: __________________________

	
 
	
Name: _____________________

	
 
	
Title: __________________________

	
Date: __________________________
	
Date: __________________________

Attachment II

Election Agreement

Siebel Systems, Inc.

                  Restricted Stock Unit

                  Election Agreement

Please complete this Election Agreement and
return a signed copy to the Stock Administration Group of Siebel Systems, Inc.
(the "Company") by [insert date]. Defined terms not explicitly defined in
this Election Agreement but defined in the Plan or your Restricted Stock Unit
Award Agreement shall have the same definitions as in such documents.

	
Name:
	
SS #:

 

Settlement Date

In making this election, the following rules
apply:

	You must select a Settlement Date as of which you will
receive the Shares associated with the Restricted Stock Unit that you elected to
defer below.

	You may elect as many Settlement Dates as you wish
related to the Restricted Stock Unit. You must, however, defer the issuance of
Shares subject to the Restricted Stock Unit in increments of 25,000. For
example, if you have 100,000 Shares covered by your Restricted Stock Unit, you
may elect up to four different Settlement Dates -- one Settlement Date related
to each increment of 25,000.

	The vested Shares will be transferred to you on February
1 (or, if not a business day, the first business day thereafter) of the year in
which you select to defer receipt of the Shares, unless you specifically select
a different Settlement Date in that year.

I hereby irrevocably elect to defer receipt of the Shares
associated with the above-referenced Restricted Stock Unit until the following
date(s) and in the following increment(s). I acknowledge that only vested Shares
will be issued to me and that the Settlement Date may occur after vesting. 

A. ̈ 
 _______      __________________________
       
            Number      Month        Day           Year

B. ̈ 
 _______      __________________________
       
            Number      Month        Day           Year

C. ̈ 
 _______      __________________________
       
            Number      Month        Day           Year

D. ̈ 
 _______      __________________________
       
            Number      Month        Day           Year

E. ̈ 
 _______      ___ day(s) following the termination of my Continuous Status as an Employee, Director or Consultant

                    Number

F. ̈  Notwithstanding the election that I made in A-E above, I elect to
have my vested Shares issued to me on 

                
the following date, even if such date
occurs prior to the date(s) selected above (check boxes that apply):

 ̈  ___ days following the termination of my Continuous Status as an
Employee, Director or Consultant

                    ̈  Immediately upon a Change in Control

                    ̈  Upon the earlier of a Change in Control or ___ days following the
termination of my Continuous Status as an Employee, Director or Consultant

If no Settlement Date is specified, then the issuance of
vested Shares will occur upon the termination your Continuous Status as an
Employee, Director or Consultant.

Manner of Transfer

All of the Shares you are entitled to receive on the
Settlement Date specified in this Election Agreement will be transferred to you
on or as soon as practicable after such Settlement Date.

 

Terms and Conditions

By signing this form, you hereby acknowledge your
understanding and acceptance of the following:
l.Company Right to Early Transfer. Notwithstanding
any election made herein, the Company or any Subsidiary reserves the right to
transfer to you all of the vested and then unissued Shares associated with the
Restricted Stock Units subject to this Election Agreement at any time following
the termination of your employment with the Company or any Subsidiary.

2.Withholding. The Company shall have the right to
deduct from all deferrals or payments hereunder, any federal, state, or local
tax required by law to be withheld.

3.Nonassignable. Your rights and interests under
this Election Agreement may not be assigned, pledged, or transferred other than
as provided in the Siebel Systems, Inc. [1996/1998] Equity Incentive Plan.

4.Termination of This Agreement. The Company
reserves the right to terminate this Agreement at any time. In such case, Shares
that you purchased pursuant to your Agreement may be issued to you
immediately.

5.Bookkeeping Account. The Company will establish
a bookkeeping account to reflect the number of Shares that you acquired pursuant
to your Restricted Stock Unit and the Fair Market Value such Shares that are
subject to this Election Agreement.

6.Stock Certificates. Share certificates (each, a
"Certificate") evidencing the issuance of the Shares pursuant to your Restricted
Stock Unit shall be issued to you as of the applicable Settlement Dates (or such
earlier date payment is to be made pursuant to this Election Agreement) and
shall be registered in your name. Subject to the withholding requirements
outlined above, Certificates representing the unrestricted Shares will be
delivered to you as soon as practicable after the Settlement Date. 

7.Change in Control. As used in this Election
Agreement, "Change in Control" means the occurrence, in a single transaction or
in a series of related transactions, of any one or more of the following events:
(a) a dissolution, liquidation or sale of substantially all of the assets of the
Company; (b) a merger or consolidation in which the Company is not the surviving
corporation; or (c) a reverse merger in which the Company is the surviving
corporation but the shares of the Company's common stock outstanding immediately
preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise. The term "Change in
Control" shall not include a sale of assets, merger or other transaction
effected exclusively for the purpose of changing the domicile of the Company. In
the event of any conflict in the definition of "Change in Control" (or any
analogous term) between the provisions of a separate agreement between you and
the Company and those of this Election Agreement, the provisions of this
Election Agreement shall control.

8.Governing Law. This Agreement shall be construed
and administered according to the laws of the State of California.

By executing this Election Agreement, I hereby acknowledge my
understanding of and agreement with all the terms and provisions set forth in
this Election Agreement.

 

	
Employee
	
Siebel Systems, Inc.

	
__________________________
	
By: __________________________

	
 
	
Name: __________________________

	
 
	
Title: __________________________

	
Date: __________________________
	
Date: __________________________

 

Attachment III

Siebel Systems, Inc. [1996/1998] Equity Incentive Plan

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