Document:

Prepared by MERRILL CORPORATION

EXHIBIT 10.41

 

MANAGEMENT

CONTRACT

 

entered

into by and between

 

SPEECH

DESIGN Gesellschaft für elektronische Sprachverarbeitung mbH

Industriestraße

1, 82110 Germering

 

–

hereinafter referred to as „the Company“

and

 

Mr.

Hans Meiler

Junkersstrasse

6, 

82131

Gauting

 

–

hereinafter referred to as „the Managing Director“

 

§ 1

Sphere

of Activities

 

1.          The Managing Director

(Geschäftsführer) was appointed by the Company. This appointment shall not

exclude the additional appointment of Mr. Kasimir Arciszewski. It is agreed,

that the Managing Director and Mr. Kasimir Arciszewski.

will be the sole managing directors of the Company during the Contract Term.

However, it is agreed by the parties that the Company shall be entitled to

appoint another Managing Director in any case of termination of the Management

Contract of Mr. Kasimir Arciszewski for whatever reason, such Managing

Director’s sphere of activities to be limited to the sphere of activities of

Mr. Kasimir Arciszewski

 

2.          It shall be incumbent on the Managing

Director to scrupulously conduct the business of the Company and to perform the

obligations assigned to him by law, by the Company statutes as in effect from

time to time and the present contract with the appropriate responsibility.

 

3.          The Managing Director’s principal

function shall consist in the management and supervision of the fields of

production and administration as well as it includes the taking, coordination

and execution of all measures.

 

4.          The Managing Director’s activities

shall be subject to the reciprocal coordination with the other Managing

Director.

 

5.          The Managing Director will freely

organize his sphere of activities and is not bound by the observance of

specific working hours or a specific place of office.

 

§ 2

Power

of Representation

 

1.          The Managing Director shall represent

the company jointly with Mr. Kasimir Arciszewski in and out of court as defined

by his appointment and the actual company statutes.

 

2.          The Managing Director is released from

the restrictions of section 181 German Civil Code („prohibition of self

contracting“) for all transactions between the Company on the one hand and

majority-owned enterprises of the Company on the other hand, namely at present

SATELCO AG, Switzerland, SPEECH DESIGN ISRAEL, Ltd., Israel and SPEECH DESIGN

CARRIER SYSTEMS GmbH, Germany. Such release from the restrictions of section

181 German Civil Code applies also to the legal transactions undertaken in the

past by the Managing Director acting as representative of the Company on the

one hand and as representative of the abovelisted enterprises on the other

hand. This consent does not include any other consent or approval that might be

necessary in relation with such transactions for whatever other legal reason.

 

3.          The Managing Director shall be bound

to the resolutions and instructions of the Shareholders’ Meeting. The

Shareholders’ Meeting may in particular establish general policies with regard

to the way the business is to be conducted.

 

§ 3

Contract

Term, Termination

 

1.          This agreement enters into force on

July 1st, 2001 (hereinafter referred to as „Effective Date“) and

will end after three years on June 30th, 2004 (hereinafter referred

to as „Contract Term“) without notice. During the Contract Term the right to

terminate this agreement without cause is excluded. At the latest six months

before the end of contract the parties may enter into negotiations on the

renewal of this contract.

 

2.          Either party shall have the right to

terminate this agreement with cause for important reasons by written notice

effective immediately. Important reasons in the meaning of the sentence above

are in particular

 

2.1.   for the Company, if the Managing Director:

 

2.1.1.       is convicted of any relevant crime or

felony, or

 

2.1.2.       refuses to comply with material oral or

written decisions or instructions of the Company’s shareholders, provided the

Managing Director is given written notice and an adequate cure period of at

least ten days, and such failure is not cured within such cure period, or

 

2.1.3.       is grossly negligent or dishonest in

connection with the performance of his duties hereunder, or

 

2.1.4.       materially breaches affirmative or

negative covenants or undertakings hereunder.

 

2.2.   for the Managing Director, if

 

2.2.1.       the appointment of the Managing Director

as  Managing Director of the Company is

revoked without cause,

 

2.2.2.       contrary to Section 1 hereunder an

additional Managing Director or a permanent representative is appointed by the

shareholders of the Company with the right to instruct the Managing Director in

the normal course of business,

 

2.2.3.       the sphere of activities or the power to

represent the Company is materially restricted.

 

3.          In addition the Managing Director

shall have the right to terminate this agreement with six months prior written

notice, which notice will be effective by the end of the calendar month in

which it is given, in the event that

 

3.1.          the shareholders of the Company sell

all or substantially all of the tangible or intangible assets or properties of

the Company,

 

3.2.          the shareholders of the Company sell a

majority participation in the Company.

 

Exceptions:

The Managing

Director  will not have the termination

rights pursuant to section 3.1. or 3.2. above in the following cases:

a)     the sale or transfer of the Company ́s

assets / participation is either to the existing shareholders of the Company ́s

current sole shareholder, Bogen Communications International, Inc. or to a

majority-owned subsidiary of Bogen Communications International, Inc.

b)    the sale occurs in form of a public listing

of the Company ́s securities on a U.S. or European stock exchange

 

Notwithstanding § 1 section 1 above the

Company shall be entitled to appoint additional managing directors if the

Managing Director terminates the Management Contract pursuant to section 3.1.

or 3.2. above.

 

§ 4

Compensation

 

1.          The Managing Director shall receive

for his services a yearly gross salary amounting to 240.000,-- Deutsch Marks,

payable in twelve equal monthly installments of 20.000,-- Deutsch Marks each at

the end of each calendar month reduced by the statutory deductions. At the

latest three months prior to the end of every contract year, the aforesaid

remuneration will be subject to an upward revision, as may be agreed by the

parties.

 

2.          In addition the Managing Director

shall receive an annual performance-based bonus (hereinafter referred to as

„the Bonus“).

The Bonus is targeted at

DM 60.000,-- if the trend of business meets the expectations reflected in the

Company ́s budget for the respective calendar year.

Specifically, the above

target  Bonus is paid if the Company ́s

consolidated (US-GAAP) EBIT reaches the budgeted amount, no Bonus is paid if

EBIT is under 50% of the budgeted amount and a maximum Bonus of DM 90.000,-- is

paid if EBIT reaches 150% or more of the budgeted amount.

 

Within the range of 50%

to 100% of budgeted EBIT, the Bonus is calculated as follows:

 

Bonus = DM 60.000 *

(actual EBIT – (budget EBIT / 2)) / (budget EBIT / 2)

 

Examples:

a)     budget EBIT = 100, act. EBIT = 50   à

Bonus  = 0

b)     budget EBIT = 100, act. EBIT = 75   à

Bonus  = DM  30.000

c)     budget EBIT = 100, act. EBIT = 100  à

Bonus = DM  60.000

 

Within the range of 100%

to 150% of budgeted EBIT, the Bonus is calculated as follows:

 

Bonus = DM 60.000 * (1 +

(actual EBIT – budget EBIT) / budget EBIT)

 

Examples:

a)     budget EBIT = 100, act. EBIT = 100  à

Bonus  = DM  60.000

b)     budget EBIT = 100, act. EBIT = 125  à

Bonus  = DM  75.000

c)     budget EBIT = 100, act. EBIT = 150  à

Bonus  = DM  90.000

 

The annual Bonus is

payable on or before the later of a) March 31 of the following fiscal year, or

b) ten days after the audited financial statements for the prior fiscal year of

the Company have been finalized.

 

This agreement replaces

all other arrangements on bonuses to be paid to the Managing Director for the

year 2001.

 

3.          In addition the Managing Director is

entitled to participate in the Stock option plan of Bogen Communications

International, Inc., as defined in Exhibit A.

 

4.          In addition to the social security

contributions payable by employer by act of law the Company will also bear the

employee’s contributions to the statutory unemployment insurance and to the

statutory social security pension insurance and will therefore pay the Managing

Director a monthly amount corresponding to the employee’s contributions.

 

§ 5

Fringe

Benefits

 

1.          During the contract term the Company

shall provide the Managing Director with a Company car of the upper middle

class, the leasing rates for which shall not exceed DM 21.000,-- p.a., which

the Managing Director may also use for private travel. Possibly accruing wage

tax shall be borne by the Managing Director.

 

2.          Contingent existing personal accident

insurances and direct life insurances remain maintained during the Contract

Term at current premium levels subject to ordinary premium increases.

 

§ 6

Expenses

 

The

Company is under the obligation to reimburse the Managing Director for the

expenses incurred by him to the extent that such expenses are necessary and

appropriate. These expenses shall in the individual case be documented in

compliance with the applicable tax regulations unless these expenses are

accounted for at a flat rate in accordance with the said tax regulations.

 

§ 7

Vacation

 

1.          The Managing Director shall be

entitled to a vacation of six weeks per annum.

 

2.          Safeguarding the interests of the

Company, the proposed time of the vacation shall be subject to the coordination

with the other Managing Director and with the shareholders.

 

§ 8

Continued

payment of Salary in the Event of Illness

 

1.          If the Managing Director is prevented

from performing his duties by illness or by other circumstances beyond his

control, he shall receive the remuneration as set out in § 4 and § 5 up to a

period of 6 (six) months beginning with the month succeeding the month in which

the prevention begins.

 

2.          Any compensation for wages paid by

third parties, e.g. arising from disability income insurance or otherwise in

respect of salary, shall be deducted from the continued payment of the salary

owed by the Company in such a way that the amount of the aforesaid compensation

together with the Company’s continued payment of the salary amounts to the net

base salary the Managing Director would receive if he were able to work.

 

§ 9

Non-Competition

Clause

 

1.          During the Contract Term and for three

years after the expiration of the Management Contract  (hereinafter referred to as „the Non-Competition period“) the

Managing Director shall not whether directly or indirectly

 

1.1.          hire, solicit or encourage any

employee of the Company or any of its affiliates to leave the employment of the

Buyer or any of its affiliates, or

 

1.2.          hire, solicit or encourage any

consultant under contract with the Company or any of its affiliates to cease to

work with the Company or any of its affiliates, or

 

1.3.          actively engage in competing business

transactions, by way of employment or self-employment, occasionally or

commercially, or own an interest in any such business as a partner,

shareholder, director, officer, principal, agent, employee, trustee,

consultant, or in any other relationship or capacity, other than owning shares

of the Company, Bogen Communications International, Inc., any majority-owned

subsidiary of Bogen Communications International, Inc. or shareholders of the

Company or less than 1 % of the outstanding stock of any publicly traded

company.

 

Competing business transactions in terms

of section 1.3. shall be considered a) the development, production and/or

distribution of supplementary electronical equipment for telephone facilities

and/or services, such as PABX peripherals and unified messaging systems,

including, without limitation, any voicemail via voice or e-mail, computer

telephony integration and the like b) and any other business in which the

Company significantly participates during the Contract Term by development,

production and/or distribution. The geographic scope of application is limited

to Europe and any other area in which the Company or its affiliates do business

during the Contract Term.

 

2.          During the Non-Competition Period a

compensation for the abstention from acts of competition is to be paid by the

Company. The yearly compensation will amount to 50 % of the average fixed

remuneration of the Managing Director paid to the Managing Director in the last

twelve months before the expiration of the Management Contract (DM 120.000,--

p.a.). The compensation is payable in equal monthly installments at the end of

each calendar month.

 

3.          The Company may waive the prohibition

of competition in whole or for individual transactions at any time during the

Contract Term or during the Non-Competition Period with six months prior

written notice. The obligation to pay the compensation to the Managing Director

remains in full force if the waiver relates only to individual transactions and

expires upon the expiration of such notice period if the Company fully waives its

prohibition rights hereunder.

 

4.          In each case of violation of his

obligations under this § 9, the Managing Director shall pay a penalty of DM

50.000,--. In case of permanent violation of his obligations hereunder such

penalty is to be paid for each month during such violation period. The right of

the Company to claim for damages and/or injunctive relief remains unaffected.

 

§ 10

Business

and Trade Secrets

 

The

Managing Director shall be under the obligation to observe unrestricted and

complete secrecy of any and all Business and Trade Secrets as well as of all

other confidential information or details regarding the Company or its business

enterprise. The foregoing secrecy obligations will be effective even after

termination of this contract.

 

§ 11

Delivery

of Documents

 

Upon

termination of this contract the Managing Director shall be under the

obligation to return all documents, records, all existing electronic files and

other material relating to his activities as Managing Director to the Company

without being asked.

 

§ 12

Inventions,

Copyright

 

1.          Any rights in inventions or technical

improvements made or worked out by the Managing Director in the course of his

service for the Company, in relation with his activities for the Company, owing

to his experience resulting from his service for the Company or owing to works

carried out by the latter, may be exclusively used by the Company. Already at

the present time, the Managing Director shall assign all respective rights to

the Company. Regarding this matter the Company shall be under no obligation to

pay any additional remuneration. For lack of the Managing Director’s status as

employee, the Act on Employee Inventions shall not apply.

 

2.          Where, related to any of his duties or

to the experience resulting from his service for the Company or to the

performance rendered by the Company, copyrights for works are vested in the

person of the Managing Director, it is agreed herewith that he shall already at

the present time assign the exclusive and gratuitous right of use therein to

the Company.

 

§ 13

Absence

of Subsidiary Oral Agreements,

Amendments,

Written Form

 

1.          There are no subsidiary oral

agreements. Any contractual amendments require written form.

 

2.          The former contract of employment as

Managing Director, including all amendments and possible provisions as to the

payment of bonuses, shall cease to be in force upon the Effective Date.

 

§ 14

Severability

Clause

 

Should

any provision of this contract be or become invalid or unenforceable, this

shall not affect the validity of the remaining provisions. The invalid or

unenforceable provision shall be replaced by a regulation which comes closest

to the economic purpose of the invalid provision. The same shall apply in the

event that this contract is incomplete. This provision applies also if the

invalidity or unenforceability of a provision is due to the extent of a time

limit or period or of a geographic area. In this case the legally permitted

time limit or period or geographic area shall be applicable.

 

§ 15

Place

of Performance and Legal Venue

 

Place

of performance and legal venue for all legal disputes possibly arising out of

this contract shall be the legal seat of the Company.

 

§ 16

Declaration

of Intention

 

All

declarations of intention made by the Managing Director concerning the present

contract shall be addressed to the CEO (Chief Executive Officer) or the

President of the sole shareholder.

 

This

agreement is made in duplicate each copy being original, this 29th day of   June, 2001.

 

	

  /s/

  Jonathan Guss

  	

   

  	

  /s/

  Hans Meiler

  
	

  –

  the company –

  	

   

  	

  –

  the Managing Director –

  
	

  represented

  by the shareholdersPrepared by MERRILL CORPORATION

POLYCOM, INC.

2001 NONSTATUTORY STOCK OPTION PLAN

 

1.             Purposes of the Plan.  The purposes of this Nonstatutory Stock

Option Plan are:

•      to

attract and retain the best available personnel for positions of substantial

responsibility,

•      to

provide additional incentive to Employees, Directors and Consultants, and

•      to

promote the success of the Company’s business.

Options granted under the Plan will be Nonstatutory

Stock Options.

2.             Definitions.  As used herein, the following definitions

shall apply:

(a)           “Administrator”

means the Board or any of its Committees as shall be administering the Plan, in

accordance with Section 4 of the Plan.

(b)           “Applicable

Laws” means the requirements relating to the administration of stock option

plans 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 Options are, or will be, granted under the Plan.

(c)           “Board”

means the Board of Directors of the Company.

(d)           “Code”

means the Internal Revenue Code of 1986, as amended.

(e)           “Committee”  means a committee of Directors appointed by

the Board in accordance with Section 4 of the Plan.

(f)            “Common

Stock” means the Common Stock of the Company.

(g)           “Company”

means Polycom, Inc. a Delaware corporation.

(h)           “Consultant”

means any person, including an advisor, engaged by the Company or a Parent or

Subsidiary to render services to such entity.

(i)            “Director”

means a member of the Board.

(j)            “Disability”

means total and permanent disability as defined in Section 22(e)(3) of the

Code.

(k)           “Employee”

means any person, including Officers, employed by the Company or any Parent or

Subsidiary of the Company.  A Service Provider

shall not cease to be an Employee in the case of (i) any leave of absence

approved by the Company or (ii) transfers between locations of the Company

or between the Company, its Parent, any Subsidiary, or any successor.  Neither service as a Director nor payment of

a director’s fee by the Company shall be sufficient to constitute “employment”

by the Company.

(l)            “Exchange

Act” means the Securities Exchange Act of 1934, as amended.

(m)          “Fair

Market Value” means, as of any date, the value of Common Stock determined

as follows:

(i)            If

the Common Stock is listed on any established stock exchange or a national

market system, including without limitation the Nasdaq National Market or The

Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall

be the closing sales price for such stock (or the closing bid, if no sales were

reported) as quoted on such exchange or system for the last market trading day

prior to the time 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, the Fair Market Value of a Share of Common

Stock shall be the mean between the high bid and low asked prices for the

Common Stock on the last market trading day prior to the day of determination,

as reported in The Wall Street Journal or such other source as the

Administrator deems reliable;

(iii)          In

the absence of an established market for the Common Stock, the Fair Market

Value shall be determined in good faith by the Administrator.

(n)           “Notice

of Grant” means a written or electronic notice evidencing certain terms and

conditions of an individual Option grant. 

The Notice of Grant is part of the Option Agreement.

(o)           “Officer”

means a person who is an officer of the Company within the meaning of Section

16 of the Exchange Act and the rules and regulations promulgated thereunder.

(p)           “Option”

means a nonstatutory stock option granted pursuant to the Plan, that is not

intended to qualify as an incentive stock option within the meaning of Section

422 of the Code and the regulations promulgated thereunder.

(q)           “Option

Agreement” means an agreement between the Company and an Optionee

evidencing the terms and conditions of an individual Option grant.  The Option Agreement is subject to the terms

and conditions of the Plan.

(r)            “Option

Exchange Program” means a program whereby outstanding options are

surrendered in exchange for options with a lower exercise price.

(s)           “Optioned Stock”

means the Common Stock subject to an Option.

(t)            “Optionee”

means the holder of an outstanding Option granted under the Plan.

(u)           “Parent”

means a “parent corporation,” whether now or hereafter existing, as defined in

Section 424(e) of the Code.

(v)           “Plan”

means this 2001 Nonstatutory Stock Option Plan.

(w)          “Service

Provider” means an Employee including an Officer, Consultant or Director.

(x)            “Share”

means a share of the Common Stock, as adjusted in accordance with Section 12 of

the Plan.

(y)           “Subsidiary”

means a “subsidiary corporation,” whether now or hereafter existing, as defined

in Section 424(f) of the Code.

3.             Stock Subject to the Plan.  Subject to the provisions of Section 12 of

the Plan, the maximum aggregate number of Shares which may be optioned and sold

under the Plan is Seven Hundred and Fifty Thousand (750,000) Shares.  The Shares may be authorized, but unissued,

or reacquired Common Stock.

If an Option expires or becomes unexercisable without

having been exercised in full, or is surrendered pursuant to an Option Exchange

Program, the unpurchased Shares which were subject thereto shall become

available for future grant or sale under the Plan (unless the Plan has

terminated).

4.             Administration of the Plan.

(a)           Administration.  The Plan shall be administered by

(i) the Board or (ii) a Committee, which committee shall be

constituted to satisfy Applicable Laws.

(b)           Powers of the Administrator.  Subject to the provi­sions of the Plan, and

in the case of a Committee, subject to the specific duties delegated by the

Board to such Committee, the Administrator shall have the authority, in its

discre­tion:

(i)            to

determine the Fair Market Value of the Common Stock;

(ii)           to

select the Service Providers to whom Options may be granted hereunder;

(iii)          to

determine whether and to what extent Options are granted hereunder;

(iv)          to

determine the number of shares of Common Stock to be covered by each Option

granted hereunder;

(v)           to

approve forms of agreement for use under the Plan;

(vi)          to

determine the terms and conditions, not inconsistent with the terms of the

Plan, of any award granted hereunder. 

Such terms and conditions include, but are not limited to, the exercise

price, the time or times when Options may be exercised (which may be based on

performance criteria), any vesting acceleration or waiver of forfeiture

restrictions, and any restriction or limitation regarding any Option  or the shares of Common Stock relating

thereto, based in each case on such factors as the Administrator, in its sole

discretion, shall determine;

(vii)         to

reduce the exercise price of any Option to the then current Fair Market Value

if the Fair Market Value of the Common Stock covered by such Option shall have

declined since the date the Option was granted;

(viii)        to

institute an Option Exchange Program;

(ix)           to

construe and interpret the terms of the Plan and awards granted pursuant to the

Plan;

(x)            to

prescribe, amend and rescind rules and regulations relating to the Plan,

including rules and regulations relating to sub-plans established for the

purpose of qualifying for preferred tax treatment under foreign tax laws;

(xi)           to

modify or amend each Option (subject to Section 14(b) of the Plan), including

the discretionary authority to extend the post-termination exercisability

period of Options longer than is otherwise provided for in the Plan;

(xii)          to

authorize any person to execute on behalf of the Company any instrument

required to effect the grant of an Option previously granted by the

Administrator;

(xiii)         to

determine the terms and restrictions applicable to Options;

(xiv)        to

allow Optionees to satisfy withholding tax obligations by electing to have the

Company withhold from the Shares to be issued upon exercise of an Option that

number of Shares having a Fair Market Value equal to the amount required to be

withheld.  The Fair Market Value of the

Shares to be withheld shall be determined on the date that the amount of tax to

be withheld is to be determined.  All

elections by an Optionee to have Shares withheld for this purpose shall be made

in such form and under such conditions as the Administrator may deem necessary

or advisable; and

(xv)         to

make all other determinations deemed necessary or advisable for administering

the Plan.

(c)           Effect of Administrator’s Decision.  The Administrator’s decisions,

determinations and interpretations shall be final and binding on all Optionees

and any other holders of Options.

5.             Eligibility.  Options may be granted to Service Providers;

provided, however, that notwithstanding anything to the contrary contained in

the Plan, Options may not be granted to Officers and Directors.

6.             Limitation.  Neither the Plan nor any Option shall confer

upon an Optionee any right with respect to continuing the Optionee’s

relationship as a Service Provider with the Company, nor shall they interfere

in any way with the Optionee’s right or the Company’s right to terminate such

relationship at any time, with or without cause.

7.             Term of Plan.  The Plan shall become effective upon its

adoption by the Board.  It shall

continue in effect for ten (10) years, unless sooner terminated under Section

14 of the Plan.

8.             Term

of Option.  The term of each Option

shall be stated in the Option Agreement.

9.             Option

Exercise Price and Consideration.

(a)           Exercise

Price.  The per share exercise price

for the Shares to be issued pursuant to exercise of an Option shall be

determined by the Administrator.

(b)           Waiting

Period and Exercise Dates.  At the

time an Option is granted, the Administrator shall fix the period within which

the Option may be exer­cised and shall determine any con­ditions which must be

satisfied before the Option may be exercised.

(c)           Form

of Consideration.  The Administrator

shall determine the acceptable form of consideration for exercising an Option,

including the method of payment.  Such

consideration may consist entirely of:

(i)            cash;

(ii)           check;

(iii)          promissory

note;

(iv)          other

Shares which (A) in the case of Shares acquired upon exercise of an

option, have been owned by the Optionee for more than six months on the date of

sur­render, and (B) have a Fair Market Value on the date of surrender

equal to the aggregate exercise price of the Shares as to which said Option

shall be exer­cised;

(v)           consideration

received by the Company under a cashless exercise program implemented by the

Company in connection with the Plan;

(vi)          a

reduction in the amount of any Company liability to the Optionee, including any

liability attributable to the Optionee’s participation in any Company-sponsored

deferred compensation program or arrangement;

(vii)         such

other considera­tion and method of payment for the issuance of Shares to the

extent permitted by Applicable Laws; or

(viii)        any

combination of the foregoing methods of payment.

10.           Exercise of Option.

(a)           Procedure for Exercise;

Rights as a Stockholder. Any Option granted hereunder shall be exercisable

according to the terms of the Plan and at such times and under such conditions

as determined by the Administrator and set forth in the Option Agreement.  An Option may not be exercised for a

fraction of a Share.

An Option shall be deemed exercised when the Company

receives: (i) written or electronic notice of exercise (in accordance with the

Option Agreement) from the person entitled to exercise the Option, and (ii)

full payment for the Shares with respect to which the Option is exercised.  Full payment may consist of any

consideration and method of payment authorized by the Administrator and

permitted by the Option Agreement and the Plan.  Shares issued upon exercise of an Option shall be issued in the

name of the Optionee or, if requested by the Optionee, in the name of the

Optionee and his or her spouse.  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), no right to

vote or receive dividends or any other rights as a stockholder shall exist with

respect to the Optioned Stock, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be

issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or

other right for which the record date is prior to the date the Shares are

issued, except as provided in Section 12 of the Plan.

Exercising an Option in any manner shall decrease the

number of Shares thereafter available, both for purposes of the Plan and for

sale under the Option, by the number of Shares as to which the Option is

exercised.

(b)           Termination of

Relationship as a Service Provider. 

If an Optionee ceases to be a Service Provider, other than upon the

Optionee’s death or Disability, the Optionee may exercise his or her Option,

but only within such period of time as is specified in the Option Agreement,

and only to the extent that the Option is vested on the date of termination

(but in no event later than the expiration of the term of such Option as set

forth in the Option Agreement).  In the

absence of a specified time in the Option Agreement, the Option shall remain

exercisable for three (3) months following the Optionee’s termination.  If, on the date of termination, the Optionee

is not vested as to his or her entire Option, the Shares covered by the

unvested portion of the Option shall revert to the Plan.  If, after termination, the Optionee does not

exercise his or her Option within the time specified by the Administrator, the

Option shall terminate, and the Shares covered by such Option shall revert to

the Plan.

(c)           Disability

of Optionee.  If an Optionee ceases

to be a Service Provider as a result of the Optionee’s Disability, the Optionee

may exercise his or her Option within such period of time as is specified in

the Option Agreement, to the extent the Option is vested on the date of

termination (but in no event later than the expiration of the term of such

Option as set forth in the Option Agreement). 

In the absence of a specified time in the Option Agreement, the Option

shall remain exercisable for twelve (12) months following the Optionee’s

termination.  If, on the date of

termination, the Optionee is not vested as to his or her entire Option, the

Shares covered by the unvested portion of the Option shall revert to the

Plan.  If, after termination, the

Optionee does not exercise his or her Option within the time specified herein,

the Option shall terminate, and the Shares covered by such Option shall revert

to the Plan.

(d)           Death of Optionee.  If an Optionee dies while a Service

Provider, the Option may be exercised within such period of time as is

specified in the Option Agreement (but in no event later than the expiration of

the term of such Option as set forth in the Notice of Grant), by the Optionee’s

estate or by a person who acquires the right to exercise the Option by bequest

or inheritance, but only to the extent that the Option is vested on the date of

death.  In the absence of a specified

time in the Option Agreement, the Option shall remain exercisable for twelve

(12) months following the Optionee’s termination.  If, at the time of death, the Optionee is not vested as to his or

her entire Option, the Shares covered by the unvested portion of the Option

shall immediately revert to the Plan. 

The Option may be exercised by the executor or administrator of the

Optionee’s estate or, if none, by the person(s) entitled to exercise the Option

under the Optionee’s will or the laws of descent or distribution.  If the Option is not so exercised within the

time specified herein, the Option shall terminate, and the Shares covered by

such Option shall revert to the Plan.

(e)           Buyout

Provisions.  The Administrator may

at any time offer to buy out for a payment in cash or Shares, an Option

previously granted based on such terms and conditions as the Administrator

shall establish and communicate to the Optionee at the time that such offer is

made.

11.           Non-Transferability of Options.  Unless determined otherwise by the

Administrator, an Option may not be sold, pledged, assigned, hypothecated,

transferred, or disposed of in any manner other than by will or by the laws of

descent or distribution and may be exercised, during the lifetime of the

Optionee, only by the Optionee.  If the

Administrator makes an Option transferable, such Option shall contain such

additional terms and conditions as the Administrator deems appropriate.

12.           Adjustments Upon Changes in Capitalization,

Dissolution, Merger or Asset Sale.

(a)           Changes

in Capitalization.  Subject to any

required action by the stockholders of the Company, the number of shares of

Common Stock covered by each outstanding Option, and the number of shares of

Common Stock which have been authorized for issuance under the Plan but as to

which no Options have yet been granted or which have been returned to the Plan

upon cancellation or expiration of an Option, as well as the price per share of

Common Stock covered by each such outstanding Option, shall be proportionately

adjusted for any increase or decrease in the number of issued shares of Common

Stock resulting from a stock split, reverse stock split, stock dividend,

combination or reclas­sification of the Common Stock, or any other increase or

decrease in the number of issued shares of Common Stock effected without

receipt of consideration by the Company; provided, however, that conversion of

any convertible securities of the Company shall not be deemed to have been

“effected without receipt of consideration.” 

Such adjustment shall be made by the Board, whose determination in that

respect shall be final, binding and conclusive.  Except as expressly provided herein, no issuance by the Company

of shares of stock of any class, or securities convertible into shares of stock

of any class, shall affect, and no adjustment by reason thereof shall be made

with respect to, the number or price of shares of Common Stock subject to an

Option.

            (b)           Dissolution or Liquidation.  In the event of the proposed dissolution or

liquidation of the Company, the Administrator shall notify each Optionee as

soon as practicable prior to the effective date of such proposed

transaction.  The Administrator in its

discretion may provide for an Optionee to have the right to exercise his or her

Option until ten (10) days prior to such transaction as to all of the Optioned

Stock covered thereby, including Shares as to which the Option would not

otherwise be exercisable.  In addition,

the Administrator may provide that any Company repurchase option applicable to

any Shares purchased upon exercise of an Option shall lapse as to all such

Shares, provided the proposed dissolution or liquidation takes place at the

time and in the manner contemplated.  To

the extent it has not been previously exer­cised, an Option will terminate

immediately prior to the consum­mation of such proposed action.

(c)           Merger

or Asset Sale.  In the event of a

merger of the Company with or into another corporation, or the sale of substantially

all of the assets of the Company, each outstanding Option shall be assumed or

an equivalent option or right 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 Optionee shall fully vest in and have the right

to exercise the Option as to all of the Optioned Stock, including Shares as to

which it would not otherwise be vested or exercisable.  If an Option becomes fully vested and

exercisable in lieu of assumption or substitution in the event of a merger or

sale of assets, the Administrator shall notify the Optionee in writing or

electronically that the Option shall be fully vested and exercisable for a

period of fifteen (15) days from the date of such notice, and the Option shall

terminate upon the expiration of such period. 

For the purposes of this paragraph, the Option shall be considered

assumed if, following the merger or sale of assets, the option or right confers

the right to purchase or receive, for each Share of Optioned Stock, immediately

prior to the merger or sale of assets, the consideration (whether stock, cash,

or other securities or property) received in the merger or sale of assets by

holders of Common Stock for each Share held on the effective date of the

transaction (and if holders were offered a choice of consideration, the type of

consideration chosen by the holders of a majority of the outstanding Shares);

provided, however, that if such consideration received in the merger or sale of

assets is not solely common stock of the successor corporation or its Parent,

the Administrator may, with the consent of the successor corporation, provide

for the consideration to be received upon the exercise of the Option, for each

Share of Optioned Stock to be solely common stock of the successor corporation

or its Parent equal in fair market value to the per share consideration

received by holders of Common Stock in the merger or sale of assets.

13.           Date

of Grant.  The date of grant of an

Option shall be, for all purposes, the date on which the Administrator makes

the determination granting such Option, or such other later date as is

determined by the Administrator.  Notice

of the determination shall be provided to each Optionee within a reasonable

time after the date of such grant.

14.           Amendment and Termination of the Plan.

(a)           Amendment

and Termination.  The Board may at

any time amend, alter, suspend or terminate the Plan.

(b)           Effect of Amendment or Termination.  No amendment, alteration, suspension or

termination of the Plan shall impair the rights of any Optionee, unless

mutually agreed otherwise between the Optionee and the Administrator, which

agreement must be in writing and signed by the Optionee and the Company.  Termination of the Plan shall not affect the

Administrator’s ability to exercise the powers granted to it hereunder with

respect to options granted under the Plan prior to the date of such

termination.

15.           Conditions Upon Issuance of Shares.

(a)           Legal

Compliance.  Shares shall not be

issued pursuant to the exercise of an Option unless the exercise of such Option

and the issuance and delivery of such Shares shall comply with Applicable Laws

and shall be further subject to the approval of counsel for the Company with

respect to such compliance.

(b)           Investment

Representations.  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.

16.           Inability

to Obtain Authority.  The inability

of the Company to obtain authority from any regulatory body having

jurisdiction, which authority is deemed by the Company’s counsel to be

necessary to the lawful issuance and sale of any Shares hereunder, shall

relieve the Company of any liability in respect of the failure to issue or sell

such Shares as to which such requisite authority shall not have been obtained.

17.           Reservation of Shares.  The Company, during the term of this Plan,

will at all times reserve and keep available such number of Shares as shall be

sufficient to satisfy the requirements of the Plan.

POLYCOM,

INC.

2001 NONSTATUTORY STOCK OPTION PLAN

STOCK OPTION AGREEMENT

Unless otherwise defined herein, the terms defined in the Plan shall

have the same defined meanings in this Option Agreement.

I.              NOTICE

OF STOCK OPTION GRANT

[Optionee’s

Name and Address]

You have been granted an option to purchase Common Stock of the

Company, subject to the terms and conditions of the Plan and this Option

Agreement, as follows:

 

	

   

  	

  Grant Number

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Date of Grant

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Vesting Commencement

  Date

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Exercise Price per

  Share

  	

   

  	

  $

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Total Number of Shares

  Granted

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Total Exercise Price

  	

   

  	

  $

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Type of Option:

  	

   

  	

  Nonstatutory Stock

  Option

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Term/Expiration Date:

  	

   

  	

   

  

Vesting Schedule:

Subject to the Optionee continuing to be a Service Provider on such

dates, this Option shall vest and become exercisable in accordance with the

following schedule:

[25% of the Shares subject to the Option shall vest

twelve months after the Vesting Commencement Date, and 1/48th of the Shares

subject to the Option shall vest upon the last day of each month thereafter.]

Termination Period:

This Option may be exercised for [three (3) months]

after Optionee ceases to be a Service Provider.  Upon the death or Disability of the Optionee, this Option may be

exercised for such longer period as provided in the Plan.  In no event shall this Option be exercised

later than the Term/Expiration Date as provided above.

II.            AGREEMENT

1.             Grant

of Option.  The Plan Administrator

of the Company hereby grants to the Optionee named in the Notice of Grant

attached as Part I of this Agreement (the “Optionee”) an option (the “Option”)

to purchase the number of Shares, as set forth in the Notice of Grant, at the

exercise price per share set forth in the Notice of Grant (the “Exercise

Price”), subject to the terms and conditions of the Plan, which is incorporated

herein by reference.  Subject to Section

14(b) of the Plan, in the event of a conflict between the terms and conditions

of the Plan and the terms and conditions of this Option Agreement, the terms

and conditions of the Plan shall prevail.

2.             Exercise

of Option.

(a)     Right

to Exercise.  This Option is

exercisable during its term in accordance with the Vesting Schedule set out in

the Notice of Grant and the applicable provisions of the Plan and this Option

Agreement.

(b)     Method

of Exercise.  This Option is

exercisable by delivery of an exercise notice, in the form attached as Exhibit

A (the “Exercise Notice”), which shall state the election to exercise the

Option, the number of Shares in respect of which the Option is being exercised

(the “Exercised Shares”), and such other representations and agreements as may

be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice shall be completed by

the Optionee and delivered to Stock Administration.  The Exercise Notice shall be accompanied by payment of the

aggregate Exercise Price as to all Exercised Shares.  This Option shall be deemed to be exercised upon receipt by the

Company of such fully executed Exercise Notice accompanied by such aggregate

Exercise Price.

No Shares shall be issued pursuant to the exercise of

this Option unless such issuance and exercise complies with Applicable

Laws.  Assuming such compliance, for

income tax purposes the Exercised Shares shall be considered transferred to the

Optionee on the date the Option is exercised with respect to such Exercised

Shares.

3.             Method

of Payment.  Payment of the

aggregate Exercise Price shall be by any of the following, or a combination

thereof, at the election of the Optionee:

(a)     cash;

(b)     check;

(c)     consideration

received by the Company under a cashless exercise program implemented by the

Company in connection with the Plan; or

(d)     surrender

of other Shares which (i) in the case of Shares acquired upon exercise of an

option, have been owned by the Optionee for more than six (6) months on the

date of surrender, and (ii) have a Fair Market Value on the

date of surrender equal to the aggregate Exercise Price of the Exercised

Shares.

4.             Non-Transferability

of Option.  This Option may not be

transferred in any manner otherwise than by will or by the laws of descent or

distribution and may be exercised during the lifetime of Optionee only by the

Optionee.  The terms of the Plan and

this Option Agreement shall be binding upon the executors, administrators,

heirs, successors and assigns of the Optionee.

5.             Term

of Option.  This Option may be

exercised only within the term set out in the Notice of Grant, and may be

exercised during such term only in accordance with the Plan and the terms of

this Option Agreement.

6.             Tax

Consequences.  Some of the federal

tax consequences relating to this Option, as of the date of this Option, are

set forth below.  THIS SUMMARY IS

NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO

CHANGE.  THE OPTIONEE SHOULD CONSULT A

TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

(a)     Exercising

the Option.  The Optionee may incur

regular federal income tax liability upon exercise of an NSO.  The Optionee will be treated as having

received compensation income (taxable at ordinary income tax rates) equal to

the excess, if any, of the Fair Market Value of the Exercised Shares on the date

of exercise over their aggregate Exercise Price.  If the Optionee is an Employee or a former Employee, the Company

will be required to withhold from his or her compensation or collect from

Optionee and pay to the applicable taxing authorities an amount in cash equal

to a percentage of this compensation income at the time of exercise, and may

refuse to honor the exercise and refuse to deliver Shares if such withholding

amounts are not delivered at the time of exercise.

(b)     Disposition

of Shares.  If the Optionee holds

NSO Shares for at least one year, any gain realized on disposition of the

Shares will be treated as long-term capital gain for federal income tax

purposes.

7.             Entire

Agreement; Governing Law.  The Plan

is incorporated herein by reference. 

The Plan and this Option Agreement constitute the entire agreement of

the parties with respect to the subject matter hereof and supersede in their

entirety all prior undertakings and agreements of the Company and Optionee with

respect to the subject matter hereof, and may not be modified adversely to the

Optionee’s interest except by means of a writing signed by the Company and

Optionee.  This agreement is governed by

the internal substantive laws, but not the choice of law rules, of California.

8.             NO

GUARANTEE OF CONTINUED SERVICE. 

OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO

THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER

AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING

GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE

TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN

DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A

SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL

NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE

OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT

CAUSE.

By your signature and the signature of the Company’s representative

below, you and the Company agree that this Option is granted under and governed

by the terms and conditions of the Plan and this Option Agreement.  Optionee has reviewed the Plan and this

Option Agreement in their entirety, has had an opportunity to obtain the advice

of counsel prior to executing this Option Agreement and fully understands all

provisions of the Plan and Option Agreement. 

Optionee hereby agrees to accept as binding, conclusive and final all

decisions or interpretations of the Administrator upon any questions relating

to the Plan and Option Agreement. 

Optionee further agrees to notify the Company upon any change in the

residence address indicated below.

 

	

  OPTIONEE

  	

   

  	

  POLYCOM, INC.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Signature

  	

   

  	

  By

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Print Name

  	

   

  	

  Title

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Residence

  Address

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  

 

EXHIBIT A

POLYCOM, INC. 

2001 NONSTATUTORY STOCK OPTION PLAN

EXERCISE NOTICE

 

Polycom, Inc.

1565 Barber Lane

Milpitas, CA 95035

Attention:  Stock Administration

1.             Exercise of Option.  Effective as of today, ________________,

_____, the undersigned (“Purchaser”) hereby elects to purchase ______________

shares (the “Shares”) of the Common Stock of Polycom, Inc.. (the “Company”)

under and pursuant to the 2001 Nonstatutory Stock Option Plan (the “Plan”) and

the Stock Option Agreement dated, _________, ___ (the “Option Agreement”).  The purchase price for the Shares shall be

$, as required by the Option Agreement.

2.             Delivery

of Payment.  Purchaser herewith

delivers to the Company the full purchase price for the Shares.

3.             Representations

of Purchaser.  Purchaser

acknowledges that Purchaser has received, read and understood the Plan and the

Option Agreement and agrees to abide by and be bound by their terms and

conditions.

4.             Rights

as Stockholder.  Until the issuance

(as evidenced by the appropriate entry on the books of the Company or of a duly

authorized transfer agent of the Company) of the Shares, no right to vote or

receive dividends or any other rights as a stockholder shall exist with respect

to the Optioned Stock, notwithstanding the exer­cise of the Option.  The Shares so acquired shall be issued to

the Optionee as soon as practicable after exercise of the Option.  No adjustment will be made for a divi­dend

or other right for which the record date is prior to the date of issuance,

except as pro­vided in Sec­tion 12 of the Plan.

5.             Tax

Consultation.  Purchaser understands

that Purchaser may suffer adverse tax consequences as a result of Purchaser’s

purchase or disposition of the Shares. 

Purchaser represents that Purchaser has consulted with any tax

consultants Purchaser deems advisable in connection with the purchase or dis­position

of the Shares and that Purchaser is not relying on the Company for any tax

advice.

6.             Entire

Agreement; Governing Law.  The Plan

and Option Agreement are incorporated herein by reference.  This Agreement, the Plan and the Option

Agreement con­sti­tute the entire agreement of the parties with respect to the

subject matter hereof and supersede in their entirety all prior undertakings

and agreements of the Company and Purchaser with respect to the subject matter

hereof, and may not be modified adversely to the Purchaser’s interest except by

means of a writing signed by the Company and Purchaser.  This agreement is governed by the internal

substantive laws, but not the choice of law rules, of California.

 

	

  Submitted by:

  	

   

  	

  Accepted by:

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  PURCHASER

  	

   

  	

  POLYCOM, INC.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Signature

  	

   

  	

  By

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Print Name

  	

   

  	

  Title

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Date Received

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Address:

  	

   

  	

   

  	

  Address: 

  	

  Polycom, Inc.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

  1565 Barber Lane

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

  Milpitas, CA

  95035

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]