Document:

exv10w59

 

Exhibit 10.59

1998 Employee Stock Purchase Plan (and related standard form of agreement)

 

 

PCTEL, INC.

1998 EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated March 16, 2007)

     1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock through accumulated payroll
deductions. The Company’s intention is to have the Plan qualify as an “employee stock purchase
plan” under Section 423 of the Code. The provisions of the Plan, accordingly, will be construed so
as to extend and limit Plan participation in a uniform and nondiscriminatory basis consistent with
the requirements of Section 423 of the Code.

     2. Definitions.

          (a) “Administrator” means the Board or any Committee designated by the Board to
administer the Plan pursuant to Section 14.

          (b) “Applicable Laws” means the requirements relating to the administration of
equity-based awards under U.S. state corporate laws, U.S. federal and state securities laws, the
Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under
the Plan.

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

          (d) “Change in Control” means the occurrence of any of the following events:

               (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act)
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company’s then outstanding voting securities; or

               (ii) The consummation of the sale or disposition by the Company of all or substantially all of
the Company’s assets; or

               (iii) The consummation of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the voting securities of the Company or such
surviving entity or its parent outstanding immediately after such merger or consolidation; or

               (iv) A change in the composition of the Board occurring within a two (2) year period, as a
result of which less than a majority of the Directors are Incumbent Directors. “Incumbent
Directors” means Directors who either (A) are Directors as of the effective date of the Plan, or
(B) are elected, or nominated for election, to the Board with the affirmative votes of at least a
majority of the Directors at the time of such election or nomination (but will not include an
individual whose election or nomination is in connection with an actual or threatened proxy contest
relating to the election of Directors to the Company).

 

 

          (e) “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a
section of the Code herein will be a reference to any successor or amended section of the Code.

          (f) “Committee” means a committee of the Board appointed in accordance with Section 14
hereof.

          (g) “Common Stock” means the common stock of the Company.

          (h) “Company” means PCTEL, Inc., a Delaware corporation.

          (i) “Compensation” means an Employee’s base straight time gross earnings and
commissions, exclusive of payments for overtime, shift premium, incentive compensation, incentive
payments, bonuses and other compensation.

          (j) “Designated Subsidiary” means any Subsidiary that has been designated by the
Administrator from time to time in its sole discretion as eligible to participate in the Plan.

          (k) “Director” means a member of the Board.

          (l) “Eligible Employee” means any individual who is a common law employee of an
Employer and is customarily employed for at least twenty (20) hours per week and more than five (5)
months in any calendar year by the Employer. For purposes of the Plan, the employment relationship
will be treated as continuing intact while the individual is on sick leave or other leave of
absence that the Employer approves. Where the period of leave exceeds ninety (90) days and the
individual’s right to reemployment is not guaranteed either by statute or by contract, the
employment relationship will be deemed to have terminated on the ninety-first (91st) day
of such leave. The Administrator, in its discretion, from time to time may, prior to an Offering
Date for all options to be granted on such Offering Date, determine (on a uniform and
nondiscriminatory basis) that the definition of Eligible Employee will or will not include an
individual if he or she: (i) has not completed at least two (2) years of service since his or her
last hire date (or such lesser period of time as may be determined by the Administrator in its
discretion), (ii) customarily works not more than twenty (20) hours per week (or such lesser period
of time as may be determined by the Administrator in its discretion), (iii) customarily works not
more than five (5) months per calendar year (or such lesser period of time as may be determined by
the Administrator in its discretion), (iv) is an officer or other manager, or (v) is a highly
compensated employee under Section 414(q) of the Code.

          (m) “Employer” means any one or all of the Company and its Designated Subsidiaries.

          (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended, including
the rules and regulations promulgated thereunder.

          (o) “Exercise Date” means the last Trading Day of each Offering Period. The first
Exercise Date under the Plan will be the last Trading Day of the Offering Period ending February
14, 2008. The second Exercise Date under the Plan will be the last Trading Day of the Offering
Period ending August 14, 2008. The Administrator, in its discretion, from time to time may, prior
to an Offering Date for all options to be granted on such Offering Date, determine (on a uniform
and nondiscriminatory basis) when the Exercise Dates will occur during an Offering Period.

          (p) “Fair Market Value” means, as of any date and unless the Administrator determines
otherwise, the value of Common Stock determined as follows:

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               (i) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq Global Select Market, the Nasdaq Global Market or
the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing
sales price for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system
on the date of determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable;

               (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value will be the mean of the closing bid and asked prices
for the Common Stock on the date of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable; or

               (iii) In the absence of an established market for the Common Stock, the Fair Market Value
thereof will be determined in good faith by the Administrator.

          (q) “Fiscal Year” means the fiscal year of the Company.

          (r) “New Exercise Date” means a new Exercise Date set by shortening any Offering
Period then in progress.

          (s) “Offering Date” means the first Trading Day of each Offering Period.

          (t) “Offering Periods” means the period of time the Administrator may determine prior
to an Offering Date, for options to be granted on such Offering Date, during which an option
granted under the Plan may be exercised, not to exceed twenty-seven (27) months. Unless the
Administrator provides otherwise, Offering Periods will have a duration of approximately six (6)
months (i) commencing on the first Trading Day on or after February 15 of each year and terminating
on the last Trading Day in the period ending the following August 14, approximately six (6) months
later, and (ii) commencing on the first Trading Day on or after August 15 of each year and
terminating on the last Trading Day in the period ending the following February 14, approximately
six (6) months later. The first Offering Period under the Plan will commence on the first Trading
Day on or after August 15, 2007, and will end on the last Trading Day on or before February 14,
2008. The second Offering Period under the Plan will commence on the first Trading Day on or after
February 15, 2008, and will end on the last Trading Day on or before August 14, 2008. The duration
and timing of Offering Periods may be changed pursuant to Sections 4 and 20.

          (u) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (v) “Plan” means this PCTEL, Inc. Amended and Restated 1998 Employee Stock Purchase
Plan.

          (w) “Purchase Period” means the period during an Offering Period during which shares
of Common Stock may be purchased on a participant’s behalf in accordance with the terms of the
Plan. Unless and until the Administrator provides otherwise, the Purchase Period will have the
same duration and coincide with the length of the Offering Period.

          (x) “Purchase Price” shall be determined by the Administrator (on a uniform and
nondiscriminatory basis) prior to an Offering Date for all options to be granted on such Offering
Date, subject to compliance with Section 423 of the Code (or any successor rule or provision or any
other applicable law, regulation or stock exchange rule) or pursuant to Section 20. Unless and
until the Administrator provides

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otherwise, the Purchase Price will be equal to eighty-five percent
(85%) of the Fair Market Value of a share of Common Stock on the Offering Date or the Exercise
Date, whichever is lower.

          (y) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing,
as defined in Section 424(f) of the Code.

          (z) “Trading Day” means a day on which the national stock exchange upon which the
Common Stock is listed is open for trading.

     3. Eligibility.

          (a) Offering Periods. Any individual who is an Eligible Employee on a given Offering
Date of any future Offering Period will be eligible to participate in the Plan, subject to the
requirements of Section 5.

          (b) Limitations. Any provisions of the Plan to the contrary notwithstanding, no
Eligible Employee will be granted an option under the Plan (i) to the extent that, immediately
after the grant, such Eligible Employee (or any other person whose stock would be attributed to
such Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the
Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such
stock possessing five percent (5%) or more of the total combined voting power or value of all
classes of the capital stock of the Company or of any Parent or Subsidiary of the Company, or (ii)
to the extent that his or her rights to purchase stock under all employee stock purchase plans (as
defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company
accrues at a rate which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined
at the Fair Market Value of the stock at the time such option is granted) for each calendar year in
which such option is outstanding at any time.

     4. Offering Periods. The Plan will be implemented by consecutive Offering Periods
with a new Offering Period commencing on the first Trading Day on or after February 15 and August
15 each year, or on such other date as the Administrator will determine, and continuing thereafter
until terminated in accordance with Section 21 hereof. The first Offering Period under the Plan
will commence on the first Trading Day on or after August 15, 2007, and will end on the last
Trading Day in the period ending February 14, 2008, approximately six (6) months later. The
Administrator will have the power to change the duration of Offering Periods (including the
commencement dates thereof) with respect to future offerings without stockholder approval if such
change is announced prior to the scheduled beginning of the first Offering Period to be affected
thereafter.

     5. Participation. An Eligible Employee may participate in the Plan pursuant to
Section 3 by (i) submitting to the Company’s payroll office (or its designee), on or before a date
prescribed by the Administrator prior to an applicable Offering Date, a properly completed
subscription agreement authorizing payroll deductions in the form provided by the Administrator for
such purpose, or (ii) following an electronic or other enrollment procedure prescribed by the
Administrator.

     6. Payroll Deductions.

          (a) At the time a participant enrolls in the Plan pursuant to Section 5, he or she will elect
to have payroll deductions made on each pay day during the Offering Period in an amount not
exceeding fifteen percent (15%) of the Compensation which he or she receives on each pay day during
the Offering Period; provided, however, that should a pay day occur on an Exercise Date, a
participant will have the payroll deductions made on such day applied to his or her account under
the subsequent Purchase or Offering

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Period. A participant’s subscription agreement will remain in
effect for successive Offering Periods unless terminated as provided in Section 10 hereof.

          (b) Payroll deductions for a participant will commence on the first pay day following the
Offering Date and will end on the last pay day on or prior to the Exercise Date of such Offering
Period to which such authorization is applicable, unless sooner terminated by the participant as
provided in Section 10 hereof.

          (c) All payroll deductions made for a participant will be credited to his or her account under
the Plan and will be withheld in whole percentages only. A participant may not make any additional
payments into such account.

          (d) A participant may discontinue his or her participation in the Plan as provided in Section
10, or may increase or decrease the rate of his or her payroll deductions during the Offering
Period by (i) properly completing and submitting to the Company’s payroll office (or its designee),
on or before a date prescribed by the Administrator prior to an applicable Exercise Date, a new
subscription agreement authorizing the change in payroll deduction rate in the form provided by the
Administrator for such purpose, or (ii) following an electronic or other procedure prescribed by
the Administrator. If a participant has not followed such procedures to change the rate of payroll
deductions, the rate of his or her payroll deductions will continue at the originally elected rate
throughout the Offering Period and future Offering Periods (unless terminated as provided in
Section 10). The Administrator may, in its sole discretion, limit the nature and/or number of
payroll deduction rate changes that may be made by participants during any Offering Period. Any
change in payroll deduction rate made pursuant to this Section 6(d) will be effective as of the
first full payroll period following five (5) business days after the Company’s receipt of the new
subscription agreement (unless the Administrator, in its sole discretion, elects to process a given
change in payroll deduction rate more quickly).

          (e) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of
the Code and Section 3(b), or if the Administrator reasonably anticipates a participant has
contributed a sufficient amount to purchase a number of shares of Common Stock equal to or in
excess of the applicable limit for such Offering Period (as set forth in Section 7 or as
established by the Administrator), a participant’s payroll deductions may be decreased to zero
percent (0%) at any time during an Offering Period. Subject to Section 423(b)(8) of the Code and
Section 3(b) hereof, or for participants who have had their contributions reduced due to the
applicable limits on the maximum number of shares that may be purchased in any Offering Period,
payroll deductions will recommence at the rate originally elected by the participant effective as
of the beginning of the first Offering Period which is scheduled to end in the following calendar
year, unless terminated by the participant as provided in Section 10.

          (f) At the time the option is exercised, in whole or in part, or at the time some or all of
the Common Stock issued under the Plan is disposed of, the participant must make adequate provision
for the Company’s or Employer’s federal, state, or any other tax liability payable to any
authority, national insurance, social security or other tax withholding obligations, if any, which
arise upon the exercise of the option or the disposition of the Common Stock. At any time, the
Company or the Employer may, but will not be obligated to, withhold from the participant’s
compensation the amount necessary for the Company or the Employer to meet applicable withholding
obligations, including any withholding required to make available to the Company or the Employer
any tax deductions or benefits attributable to sale or early disposition of Common Stock by the
Eligible Employee.

     7. Grant of Option. On the Offering Date of each Offering Period, each Eligible
Employee participating in such Offering Period will be granted an option to purchase on each
Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of
shares of Common Stock determined by

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dividing such Eligible Employee’s payroll deductions
accumulated prior to such Exercise Date and retained in the Eligible Employee’s account as of the
Exercise Date by the applicable Purchase Price; provided that in no event will an Eligible Employee
be permitted to purchase during each Offering Period more than two thousand (2,000) shares of the
Common Stock (subject to any adjustment pursuant to Section 19), and provided further that such
purchase will be subject to the limitations set forth in Sections 3(b) and 13. The Eligible
Employee may accept the grant of such option by electing to participate in the Plan in accordance
with the requirements of Section 5. The Administrator may, for future Offering Periods, increase
or decrease, in its absolute discretion, the maximum number of shares of Common Stock that an
Eligible Employee may
purchase during each Purchase Period or Offering Period. Exercise of the option will occur as
provided in Section 8, unless the participant has withdrawn pursuant to Section 10. The option
will expire on the last day of the Offering Period.

     8. Exercise of Option.

          (a) Unless a participant withdraws from the Plan as provided in Section 10, his or her option
for the purchase of shares of Common Stock will be exercised automatically on the Exercise Date,
and the maximum number of full shares subject to the option will be purchased for such participant
at the applicable Purchase Price with the accumulated payroll deductions in his or her account. No
fractional shares of Common Stock will be purchased; any payroll deductions accumulated in a
participant’s account which are not sufficient to purchase a full share will be retained in the
participant’s account for the subsequent Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10. Any other funds left over in a participant’s account after
the Exercise Date will be returned to the participant. During a participant’s lifetime, a
participant’s option to purchase shares hereunder is exercisable only by him or her.

          (b) Notwithstanding any contrary Plan provision, if the Administrator determines that, on a
given Exercise Date, the number of shares of Common Stock with respect to which options are to be
exercised may exceed (i) the number of shares of Common Stock that were available for sale under
the Plan on the Offering Date of the applicable Offering Period, or (ii) the number of shares of
Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its
sole discretion provide that the Company will make a pro rata allocation of the shares of Common
Stock available for purchase on such Offering Date or Exercise Date, as applicable, in as uniform a
manner as will be practicable and as it will determine in its sole discretion to be equitable among
all participants exercising options to purchase Common Stock on such Exercise Date, and either (x)
continue all Offering Periods then in effect or (y) terminate any or all Offering Periods then in
effect pursuant to Section 21. The Company may make a pro rata allocation of the shares available
on the Offering Date of any applicable Offering Period pursuant to the preceding sentence,
notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s
stockholders subsequent to such Offering Date.

     9. Delivery. As soon as reasonably practicable after each Exercise Date on which a
purchase of shares of Common Stock occurs, the Company will arrange the delivery to each
participant, as appropriate, the shares purchased upon exercise of his or her option in a form
determined by the Administrator (in its sole discretion) and pursuant to rules established by the
Administrator. The Company may permit or require that shares be deposited directly with a broker
designated by the Company or to a designated agent of the Company, and the Company may utilize
electronic or automated methods of share transfer. The Company may require that shares be retained
with such broker or agent for a designated period of time and/or may establish other procedures to
permit tracking of disqualifying dispositions of such shares. No participant will have any voting,
dividend, or other stockholder rights with respect to shares of Common Stock subject to any option
granted under the Plan until such shares have been purchased and delivered to the participant as
provided in this Section 10.

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     10. Withdrawal.

          (a) Pursuant to procedures established by the Administrator, a participant may withdraw all
but not less than all the payroll deductions credited to his or her account and not yet used to
exercise his or her option under the Plan at any time by (i) submitting to the Company’s payroll
office (or its designee) a written notice of withdrawal in the form prescribed by the Administrator
for such purpose, or (ii) following an electronic or other withdrawal procedure prescribed by the
Administrator. All of the participant’s payroll deductions credited to his or her account will be
paid to such participant as promptly as practicable after receipt of notice of withdrawal and such
participant’s option for the Offering Period will be automatically
terminated, and no further payroll deductions for the purchase of shares will be made for such
Offering Period. If a participant withdraws from an Offering Period, payroll deductions will not
resume at the beginning of the succeeding Offering Period unless the participant re-enrolls in the
Plan in accordance with the provisions of Section 5 hereof.

          (b) A participant’s withdrawal from an Offering Period will not have any effect upon his or
her eligibility to participate in any similar plan which may hereafter be adopted by the Company or
in succeeding Offering Periods which commence after the termination of the Offering Period from
which the participant withdraws.

     11. Termination of Employment. Upon a participant’s ceasing to be an Eligible
Employee, for any reason, he or she will be deemed to have elected to withdraw from the Plan and
the payroll deductions credited to such participant’s account during the Offering Period but not
yet used to purchase shares of Common Stock under the Plan will be returned to such participant or,
in the case of his or her death, to the person or persons entitled thereto under Section 15, and
such participant’s option will be automatically terminated.

     12. Interest. No interest will accrue on the payroll deductions of a participant in
the Plan.

     13. Stock.

          (a) Subject to adjustment upon changes in capitalization of the Company as provided in Section
19 hereof, the maximum number of shares of Common Stock which will be made available for sale under
the Plan will be seven hundred fifty thousand (750,000) shares.

          (b) Until the shares are issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), a participant will only have the
rights of an unsecured creditor with respect to such shares, and no right to vote or receive
dividends or any other rights as a stockholder will exist with respect to such shares.

          (c) Shares of Common Stock to be delivered to a participant under the Plan will be registered
in the name of the participant or in the name of the participant and his or her spouse.

     14. Administration. The Plan will be administered by the Board or a Committee
appointed by the Board, which Committee will be constituted to comply with Applicable Laws. The
Administrator will have full and exclusive discretionary authority to construe, interpret and apply
the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under
the Plan. Every finding, decision and determination made by the Administrator will, to the full
extent permitted by law, be final and binding upon all parties. Notwithstanding any provision to
the contrary in this Plan, the Administrator may adopt rules or procedures relating to the
operation and administration of the Plan to accommodate the specific requirements of local laws and
procedures for jurisdictions outside of the United States. Without limiting the generality of the
foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding
eligibility

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to participate, the definition of Compensation, handling of payroll deductions, making
of contributions to the Plan (including, without limitation, in forms other than payroll
deductions), establishment of bank or trust accounts to hold payroll deductions, payment of
interest, conversion of local currency, obligations to pay payroll tax, determination of
beneficiary designation requirements, withholding procedures and handling of stock certificates
which vary with local requirements.

     15. Designation of Beneficiary.

     (a) A participant may file a designation of a beneficiary who is to receive any shares of
Common Stock and cash, if any, from the participant’s account under the Plan in the event of such
participant’s death subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash. In addition, a participant may file a
designation of a beneficiary who is to receive any cash from the participant’s account under the
Plan in the event of such participant’s death prior to exercise of the option. If a participant is
married and the designated beneficiary is not the spouse, spousal consent will be required for such
designation to be effective.

     (b) Such designation of beneficiary may be changed by the participant at any time by notice in
a form determined by the Administrator. In the event of the death of a participant and in the
absence of a beneficiary validly designated under the Plan who is living at the time of such
participant’s death, the Company will deliver such shares and/or cash to the executor or
administrator of the estate of the participant, or if no such executor or administrator has been
appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such
shares and/or cash to the spouse or to any one or more dependents or relatives of the participant,
or if no spouse, dependent or relative is known to the Company, then to such other person as the
Company may designate.

     (c) All beneficiary designations will be in such form and manner as the Administrator may
prescribe from time to time.

     16. Transferability. Neither payroll deductions credited to a participant’s account
nor any rights with regard to the exercise of an option or to receive shares of Common Stock under
the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by
will, the laws of descent and distribution or as provided in Section 15 hereof) by the participant.
Any such attempt at assignment, transfer, pledge or other disposition will be without effect,
except that the Company may treat such act as an election to withdraw from an Offering Period in
accordance with Section 10 hereof.

     17. Use of Funds. The Company may use all payroll deductions received or held by it
under the Plan for any corporate purpose, and the Company will not be obligated to segregate such
payroll deductions. Until shares of Common Stock are issued, participants will only have the
rights of an unsecured creditor with respect to such shares.

     18. Reports. Individual accounts will be maintained for each participant in the Plan.
Statements of account will be given to participating Eligible Employees at least annually, which
statements will set forth the amounts of payroll deductions, the Purchase Price, the number of
shares of Common Stock purchased and the remaining cash balance, if any.

     19. Adjustments, Dissolution, Liquidation, Merger or Change in Control.

          (a) Adjustments. In the event that any dividend or other distribution (whether in the
form of cash, Common Stock, other securities, or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Common Stock or other securities of the Company, or other change in the
corporate structure of the Company

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affecting the Common Stock occurs, the Administrator, in order
to prevent dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan, will, in such manner as it may deem equitable, adjust the number and
class of Common Stock which may be delivered under the Plan, the Purchase Price per share and the
number of shares of Common Stock covered by each option under the Plan which has not yet been
exercised, and the numerical limits of Sections 7 and 13 hereof.

          (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, any Offering Period then in progress will be shortened by setting a New
Exercise Date, and
will terminate immediately prior to the consummation of such proposed dissolution or
liquidation, unless provided otherwise by the Administrator. The New Exercise Date will be before
the date of the Company’s proposed dissolution or liquidation. The Administrator will notify each
participant in writing, at least ten (10) business days prior to the New Exercise Date, that the
Exercise Date for the participant’s option has been changed to the New Exercise Date and that the
participant’s option will be exercised automatically on the New Exercise Date, unless prior to such
date the participant has withdrawn from the Offering Period as provided in Section 10 hereof.

          (c) Merger or Change in Control. In the event of a merger or Change in Control, each
outstanding option will be assumed or an equivalent option substituted by the successor corporation
or a Parent or Subsidiary of the successor corporation. In the event that the successor
corporation refuses to assume or substitute for the option, the Offering Period with respect to
which such option relates will be shortened by setting a New Exercise Date and will end on the New
Exercise Date. The New Exercise Date will occur before the date of the Company’s proposed merger
or Change in Control. The Administrator will notify each participant in writing prior to the New
Exercise Date, that the Exercise Date for the participant’s option has been changed to the New
Exercise Date and that the participant’s option will be exercised automatically on the New Exercise
Date, unless prior to such date the participant has withdrawn from the Offering Period as provided
in Section 10 hereof.

     20. Amendment or Termination.

          (a) The Administrator, in its sole discretion, may amend, suspend, or terminate the Plan, or
any part thereof, at any time and for any reason. If the Plan is terminated, the Administrator, in
its discretion, may elect to terminate all outstanding Offering Periods either immediately or upon
completion of the purchase of shares of Common Stock on the next Exercise Date (which may be sooner
than originally scheduled, if determined by the Administrator in its discretion), or may elect to
permit Offering Periods to expire in accordance with their terms (and subject to any adjustment
pursuant to Section 19). If the Offering Periods are terminated prior to expiration, all amounts
then credited to participants’ accounts which have not been used to purchase shares of Common Stock
will be returned to the participants (without interest thereon, except as otherwise required under
local laws) as soon as administratively practicable.

          (b) Without stockholder consent and without limiting Section 20(a), the Administrator will be
entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount
withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in
a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated
by a participant in order to adjust for delays or mistakes in the Company’s processing of properly
completed withholding elections, establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that amounts applied toward the purchase of Common
Stock for each participant properly correspond with amounts withheld from the participant’s
Compensation, and establish such other limitations or procedures as the Administrator determines in
its sole discretion advisable which are consistent with the Plan.

          (c) In the event the Administrator determines that the ongoing operation of the Plan may
result in unfavorable financial accounting consequences, the Administrator may, in its discretion
and, to the

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extent necessary or desirable, modify, amend or terminate the Plan to reduce or
eliminate such accounting consequence including, but not limited to:

               (i) amending the Plan to conform with the safe harbor definition under Statement of Financial
Accounting Standards 123(R), including with respect to an Offering Period underway at the time;

               (ii) altering the Purchase Price for any Offering Period including an Offering Period underway
at the time of the change in Purchase Price;

               (iii) shortening any Offering Period by setting a New Exercise Date or terminating any
outstanding Offering Period and returning contributions made through such date to participant,
including an Offering Period underway at the time of the Administrator action;

               (iv) allocating shares;

               (v) reducing the maximum percentage of Compensation a participant may elect to set aside as
payroll deductions; and

               (vi) reducing the maximum number of Shares a participant may purchase during any Offering
Period or Purchase Period.

Such modifications or amendments will not require stockholder approval or the consent of any Plan
participants.

     21. Notices. All notices or other communications by a participant to the Company
under or in connection with the Plan will be deemed to have been duly given when received in the
form and manner specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.

     22. Conditions Upon Issuance of Shares. Shares of Common Stock will not be issued
with respect to an option unless the exercise of such option and the issuance and delivery of such
shares pursuant thereto will comply with all applicable provisions of law, domestic or foreign,
including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules
and regulations promulgated thereunder, and the requirements of any stock exchange upon which the
shares may then be listed, and will be further subject to the approval of counsel for the Company
with respect to such compliance.

          As a condition to the exercise of an option, the Company may require the person exercising
such option to represent and warrant at the time of any such exercise that the shares are being
purchased only for investment and without any present intention to sell or distribute such shares
if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

     23. Term of Plan. The Plan will become effective upon the earlier to occur of its
adoption by the Board or its approval by the stockholders of the Company. It will continue in
effect for a term of ten (10) years, unless sooner terminated under Section 20.

     24. Stockholder Approval. The Plan will be subject to approval by the stockholders of
the Company within twelve (12) months after the date the Plan is adopted by the Board. Such
stockholder approval will be obtained in the manner and to the degree required under Applicable
Laws.

-10-

 

EXHIBIT A

PCTEL, INC.

AMENDED AND RESTATED 1998 EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT

			
	           Original Application
	 	Offering Date:
                                        

	           Change in Payroll Deduction Rate	 	 
	           Change of Beneficiary(ies)	 	 

	1.	 	I, _________, hereby elect to
participate in the PCTEL, Inc. Amended and
Restated 1998 Employee
Stock Purchase Plan
(the “Plan”) and
subscribe to purchase shares of the Company’s
Common Stock in
accordance with this
Subscription Agreement
and the Plan.

	2.	 	I hereby authorize payroll deductions from each paycheck in the amount of ___% of my
Compensation on each payday (from 0 to 15%) during the Offering Period in accordance with the
Plan. (Please note that no fractional percentages are permitted.)

	3.	 	I understand that said payroll deductions will be accumulated for the purchase of shares of
Common Stock at the applicable Purchase Price determined in accordance with the Plan. I
understand that if I do not withdraw from an Offering Period, any accumulated payroll
deductions will be used to automatically exercise my option and purchase Common Stock under
the Plan.

	4.	 	I have received a copy of the complete Plan and its accompanying prospectus. I understand
that my participation in the Plan is in all respects subject to the terms of the Plan.

	5.	 	Shares of Common Stock purchased for me under the Plan should be issued in my name (or the
name(s) of my Spouse and me).

	6.	 	I understand that if I dispose of any shares received by me pursuant to the Employee Stock
Purchase Plan within two (2) years after the Offering Date (the first day of the Offering
Period during which I purchased such shares) or one (1) year after the Exercise Date, I will
be treated for federal income tax purposes as having received ordinary income at the time of
such disposition in an amount equal to the excess of the fair market value of the shares at
the time such shares were purchased by me over the price which I paid for the shares. I
hereby agree to notify the Company in writing within thirty (30) days after the date of any
disposition of my shares and I will make adequate provision for Federal, state or other tax
withholding obligations, if any, which arise upon the disposition of the Common Stock.
The Company may, but will not be obligated to, withhold from my compensation the amount
necessary to meet any applicable withholding obligation including any withholding necessary to
make available to the Company any tax deductions or benefits attributable to sale or early
disposition of Common Stock by me. If I dispose of such shares at any time after the
expiration of the two (2)-year and one (1)-year holding periods, I understand that I will be
treated for federal income tax purposes as having

 

 

	 	 	received income only at the time of such disposition, and that such income will be taxed as
ordinary income only to the extent of an amount equal to the lesser of (a) the excess of the
fair market value of the shares at the time of such disposition over the purchase price
which I paid for the shares, or (b) 15% of the fair market value of the shares on the first
day of the Offering Period. The remainder of the gain, if any, recognized on such
disposition will be taxed as capital gain.

	7.	 	I hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription
Agreement is dependent upon my eligibility to participate in the Plan.

	8.	 	In the event of my death, I hereby designate the following as my beneficiary(ies) to receive
all payments and shares due me under the Employee Stock Purchase Plan:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beneficiary
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name: (Please print)
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 	(First)	 	     (Middle)	 	(Last)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Relationship:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Percentage Benefit:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Beneficiary
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name: (Please print)
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 	(First)	 	     (Middle)	 	(Last)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Relationship:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Percentage Benefit:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     

-2-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employee Information
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Employee’s Social
Security Number:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Employee’s Address:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	     

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT WILL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING
PERIODS UNLESS TERMINATED BY ME.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 
	 	 	 	 
	 

	 	 	 	 	 	Signature of Employee
	 
	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 
	 	 	 	 
	 

	 	 	 	 	 	Spouse’s Signature (If beneficiary other than spouse)

-3-

 

EXHIBIT B

PCTEL, INC.

AMENDED AND RESTATED 1998 EMPLOYEE STOCK PURCHASE PLAN

NOTICE OF WITHDRAWAL

     The undersigned participant in the Offering Period of the PCTEL, Inc. Amended and Restated
1998 Employee Stock Purchase Plan that began on
                    , ___ (the “Offering Date”) hereby
notifies the Company that he or she hereby withdraws from the Offering Period. He or she hereby
directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions
credited to his or her account with respect to such Offering Period. The undersigned understands
and agrees that his or her option for such Offering Period will be automatically terminated. The
undersigned understands further that no further payroll deductions will be made for the purchase of
shares in the current Offering Period and the undersigned will be eligible to participate in
succeeding Offering Periods only by delivering to the Company a new Subscription Agreement.

	 	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Signature:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:exv10w60

 

Exhibit 10.60

Executive Compensation Plan

 

 

PCTEL, INC.

EXECUTIVE COMPENSATION PLAN

     1. Purposes of the Plan. The Plan is intended to increase stockholder value and the
success of the Company by motivating Participants (a) to perform to the best of their abilities,
and (b) to achieve the Company’s objectives. The Plan’s goals are to be achieved by providing
Participants with incentive awards based on the achievement of goals relating to the performance of
the Company or other goals as determined by the Committee or the Board. The Plan is intended to
permit the payment of bonuses that may qualify as performance-based compensation under Code section
162(m).

     2. Definitions.

          (a) “Award” means, with respect to each Participant, the award determined pursuant to
Section 8(a) below for a Performance Period. Each Award is determined by a Payout Formula for a
Performance Period, subject to the Committee’s authority under Section 8(a) to eliminate or reduce
the Award otherwise payable.

          (b) “Base Salary” means as to any Performance Period, a Participant’s annualized
salary rate on the last day of the Performance Period. Such Base Salary shall be before both (i)
deductions for taxes or benefits, and (ii) deferrals of compensation pursuant to Company-sponsored
plans.

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

          (d) “CEO” means the chief executive officer of PCTEL, Inc.

          (e) “Code” means the Internal Revenue Code of 1986, as amended.

          (f) “Committee” means, except with respect to decisions regarding the granting of
Awards to the CEO, the Compensation Committee of the Board, or a sub-committee of the Compensation
Committee, which shall, with respect to payments hereunder intended to qualify as performance-based
compensation under Code Section 162(m), consist solely of two or more members of the Board who are
not employees of the Company and who otherwise qualify as “outside directors” within the meaning of
Section 162(m). With respect to decisions regarding the granting of Awards to the CEO, unless
otherwise determined by the Board, “Committee” means all members of the Board (acting on the basis
of a majority of the members in attendance at a meeting at which a quorum is present) who are not
employees of the Company and who otherwise qualify as “outside directors” within the meaning of
Section 162(m).

          (g) “Company” means PCTEL, Inc. or any of its subsidiaries (as such term is defined in
Code Section 424(f)).

          (h) “Determination Date” means the latest possible date that will not jeopardize a
Target Award or Award’s qualification as Performance-Based Compensation.

          (i) “Fiscal Year” means a fiscal year of the Company.

          (j) “Maximum Award” means as to any Participant for any Performance Period,
$1,500,000.

 

 

          (k) “Participant” means the CEO or any other executive or key employee of PCTEL, Inc.
designated in accordance with Section 4 and participating in the Plan for a Performance Period.

          (l) “Payout Formula” means as to any Performance Period, the formula, payout matrix or
objectives established by the Committee pursuant to Section 7 in order to determine the Awards (if
any) to be paid to Participants. The formula, matrix or objectives may differ from Participant to
Participant.

          (m) “Performance-Based Compensation” means compensation that is intended to qualify as
“performance-based compensation” within the meaning of Section 162(m).

          (n) “Performance Goals” means the goal(s) (or combined goal(s)) determined by the
Committee (in its discretion) to be applicable to a Participant with respect to an Award. As
determined by the Committee, the Performance Goals applicable to an Award may provide for a
targeted level or levels of achievement including:

	 	 	 
	(i)

	 	annual revenue;
	 
	 	 
	(ii)

	 	cash flow;
	 
	 	 
	(iii)

	 	cash position;
	 
	 	 
	(iv)

	 	earnings before amortization
	 
	 	 
	(v)

	 	earnings before interest and taxes;
	 
	 	 
	(vi)

	 	earnings before interest, taxes, depreciation and amortization;
	 
	 	 
	(vii)

	 	earnings before taxes and amortization;
	 
	 	 
	(viii)

	 	earnings per share;
	 
	 	 
	(ix)

	 	economic profit;
	 
	 	 
	(x)

	 	economic value added;
	 
	 	 
	(xi)

	 	equity or stockholder’s equity;
	 
	 	 
	(xii)

	 	market share;
	 
	 	 
	(xiii)

	 	net income;
	 
	 	 
	(xiv)

	 	net profit;
	 
	 	 
	(xv)

	 	net sales;
	 
	 	 
	(xvi)

	 	operating cash flow;
	 
	 	 
	(xvii)

	 	operating earnings;
	 
	 	 
	(xviii)

	 	operating income;

-2-

 

	 	 	 
	(xix)

	 	profit before tax;
	 
	 	 
	(xx)

	 	ratio of debt to debt plus equity;
	 
	 	 
	(xxi)

	 	return on assets;
	 
	 	 
	(xxii)

	 	return on equity;
	 
	 	 
	(xxiii)

	 	return on net assets
	 
	 	 
	(xxiv)

	 	return on sales, revenue, and sales growth; or
	 
	 	 
	(xxv)

	 	total return to stockholders.

               Any Performance Goals may be used to measure the performance of the Company as a whole or a
business unit of the Company and may be measured relative to a peer group or index. The
Performance Goals may differ from Participant to Participant and from Award to Award. Prior to the
Determination Date, the Committee will determine whether any significant element(s) will be
included in or excluded from the calculation of any Performance Goal with respect to any
Participant. In all other respects, Performance Goals will be calculated in accordance with the
Company’s financial statements, generally accepted accounting principles, or under a methodology
established by the Committee prior to the issuance of an Award, which is consistently applied and
identified in the financial statements, including footnotes, the management discussion and analysis
section of the Company’s annual report, or the minutes of the Board.

          (o) “Performance Period” means any Fiscal Year or such other period longer than a
Fiscal Year but not in excess of five Fiscal Years, as determined by the Committee in its sole
discretion.

          (p) “Plan” means this Executive Compensation Plan.

          (q) “Plan Year” means the Company’s fiscal year.

          (r) “Section 162(m)”means Section 162(m) of the Code, or any successor to Section
162(m), as that Section may be interpreted from time to time by the Internal Revenue Service,
whether by regulation, notice or otherwise.

          (s) “Target Award” means the award payable under the Plan to a Participant for the
Performance Period (including any range of identified potential awards), expressed as a percentage
of his or her Base Salary or a specific dollar amount, as determined by the Committee in accordance
with Section 6.

     3. Plan Administration.

          (a) Unless otherwise directed by the Board, the Committee shall be responsible for the general
administration and interpretation of the Plan and for carrying out its provisions. Subject to the
requirements for qualifying compensation as Performance-Based Compensation, the Committee may
delegate specific administrative tasks to Company employees or others as appropriate for proper
administration of the Plan. Subject to the limitations on Committee discretion imposed under
Section 162(m), the Committee shall have such powers as may be necessary to discharge its duties
hereunder, including, but not by way of limitation, the following powers and duties, but subject to
the terms of the Plan:

-3-

 

               (i) discretionary authority to construe and interpret the terms of the Plan, and to determine
eligibility, Awards and the amount, manner and time of payment of any Awards hereunder;

               (ii) to prescribe forms and procedures for purposes of Plan participation and distribution of
Awards; and

               (iii) to adopt rules, regulations and bylaws and to take such actions as it deems necessary or
desirable for the proper administration of the Plan.

          (b) Any rule or decision by the Committee that is not inconsistent with the provisions of the
Plan shall be conclusive and binding on all persons, and shall be given the maximum deference
permitted by law.

     4. Eligibility. The Committee may, in its discretion, select the Chief Executive
Officer and/or any other executive or key employee of the Company to participate in the Plan for
any given Plan Year.

     5. Performance Goal Determination. The Committee, in its sole discretion, shall
establish the Performance Goals for each Participant for the Performance Period. Such Performance
Goals shall be set forth in writing prior to the Determination Date.

     6. Target Award Determination. The Committee, in its sole discretion, shall establish
a Target Award for each Participant. Each Participant’s Target Award shall be determined by the
Committee in its sole discretion, and each Target Award shall be set forth in writing prior to the
Determination Date.

     7. Determination of Payout Formula or Formulae. On or prior to the Determination
Date, the Committee, in its sole discretion, shall establish a Payout Formula or Formulae for
purposes of determining the Award (if any) payable to each Participant. Each Payout Formula shall
(a) be set forth in writing prior to the Determination Date, (b) provide for payment of different
Award amounts dependent on actual performance as compared to the Performance Goals, (c) provide for
the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are
achieved, and (d) set forth Award amounts greater than and Award amounts less than the
Participant’s Target Award, depending upon the extent to which actual performance exceeds or falls
below the Performance Goals. Notwithstanding the preceding, in no event shall a Participant’s
Award for any Performance Period exceed the Maximum Award.

     8. Determination of Awards; Award Payment.

          (a) Determination and Certification. After the end of each Performance Period, the
Committee shall certify in writing (which may be by approval of the minutes in which the
certification was made) the extent to which the Performance Goals applicable to each Participant
for the Performance Period were achieved or exceeded. The Award for each Participant shall be
determined by applying the Payout Formula to the level of actual performance that has been
certified by the Committee. Notwithstanding any contrary provision of the Plan, the Committee, in
its sole discretion, may eliminate or reduce the Award payable to a Participant below that which
otherwise would be payable under the Payout Formula, but shall not have the right to increase the
Award above that which would otherwise be payable under the Payout Formula.

-4-

 

          (b) Right to Receive Payment. Each Award under the Plan shall be paid solely from the
general assets of the Company. Nothing in this Plan shall be construed to create a trust or to
establish or evidence any Participant’s claim of any right to payment of an Award other than as an
unsecured general creditor with respect to any payment to which he or she may be entitled. A
Participant needs to be employed by the Company through the payment date in order to be eligible to
receive an Award payout hereunder.

          (c) Form of Distributions. The Company shall distribute all Awards to a Participant
in cash or Awards as defined under the Company’s Amended and Restated 1997 Stock Plan, or any
combination of the two.

          (d) Timing of Distributions. Subject to Section 8(e) below, the Company shall
distribute amounts payable to Participants as soon as is practicable following the determination
and written certification of the Award for a Performance Period.

          (e) Deferral. The Committee may defer payment of Awards, or any portion thereof, to a
Participant as the Committee, in its discretion, determines to be necessary or desirable to
preserve the deductibility of such amounts under Section 162(m). In addition, the Committee, in
its sole discretion, may permit a Participant to defer receipt of the payment of an Award that
would otherwise be delivered to a Participant under the Plan. Any such deferral elections shall be
subject to such rules and procedures as shall be determined by the Committee in its sole
discretion.

     9. Term of Plan. Subject to its approval at the 2007 annual meeting of the Company’s
stockholders, the Plan shall first apply to the Company’s Plan Year commencing in the Company’s
2007 fiscal year. Once approved by the Company’s stockholders, the Plan shall continue until
terminated under Section 10 of the Plan.

     10. Amendment and Termination of the Plan. The Committee may amend, modify, suspend
or terminate the Plan, in whole or in part, at any time, including the adoption of amendments
deemed necessary or desirable to correct any defect or to supply omitted data or to reconcile any
inconsistency in the Plan or in any Award granted hereunder; provided, however, that no amendment,
alteration, suspension or discontinuation shall be made which would (i) impair any payments to
Participants made prior to such amendment, modification, suspension or termination, unless the
Committee has made a determination that such amendment or modification is in the best interests of
all persons to whom Awards have theretofore been granted; provided further, however, that in no
event may such an amendment or modification result in an increase in the amount of compensation
payable pursuant to such Award or (ii) cause compensation that is, or may become, payable hereunder
to fail to qualify as Performance-Based Compensation. To the extent necessary or advisable under
applicable law, including Section 162(m), Plan amendments shall be subject to stockholder approval.
At no time before the actual distribution of funds to Participants under the Plan shall any
Participant accrue any vested interest or right whatsoever under the Plan except as otherwise
stated in this Plan.

     11. Withholding. Distributions pursuant to this Plan shall be subject to all
applicable federal and state tax and withholding requirements.

     12. Employment. No statement in this Plan should be construed to grant any
Participant an employment contract of fixed duration or any other contractual rights, nor should
this Plan be interpreted as creating an implied or an expressed contract of employment or any other
contractual rights between the Company and any Participant.

-5-

 

     13. Successors. All obligations of the Company under the Plan, with respect to awards
granted hereunder, 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 or assets of the Company.

     14. Nonassignment. The rights of a Participant under this Plan shall not be
assignable or transferable by the Participant except by will or the laws of intestacy.

     15. Governing Law. The Plan shall be governed by the laws of the State of Illinois,
without regard to conflicts of law provisions thereunder.

-6-

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